Universal Health Realty Income Trust Q2 2024 Filing

TL;DR

**UHT Q2 2024 10-Q filed. Financials and operations detailed.**

AI Summary

Universal Health Realty Income Trust (UHT) filed its 10-Q for the period ending June 30, 2024. The filing details financial performance and operational updates for the second quarter. Key financial data and business segments are presented, including information related to its investments and rental income.

Why It Matters

This filing provides investors with a quarterly update on Universal Health Realty Income Trust's financial health and operational performance, crucial for investment decisions.

Risk Assessment

Risk Level: medium — The filing contains standard financial disclosures for a public company, but specific risks related to real estate investment trusts and their tenants are inherent.

Key Numbers

• N/A — Revenue (Specific revenue figures for the quarter are not directly extracted from this header-level data.)
• N/A — Net Income (Specific net income figures for the quarter are not directly extracted from this header-level data.)
• N/A — Assets (Specific asset values for the quarter are not directly extracted from this header-level data.)

Key Players & Entities

• UNIVERSAL HEALTH REALTY INCOME TRUST (company) — Filer
• 0000798783 (company) — Central Index Key
• 20240630 (date) — Period of Report
• 20240808 (date) — Filing Date
• Universal Health Services, Inc. (company) — Related Party

FAQ

Key Financial Figures

• $0.01 — stered Shares of beneficial interest, $0.01 par value UHT New York Stock Exchan
• $2.7 million — ne 30, 2024 and 2023, and approximately $2.7 million for each of the six-month periods ended

Filing Documents

• uht-20240630.htm (10-Q) — 1837KB
• uht-ex31_1.htm (EX-31.1) — 11KB
• uht-ex31_2.htm (EX-31.2) — 11KB
• uht-ex32_1.htm (EX-32.1) — 7KB
• uht-ex32_2.htm (EX-32.2) — 7KB
• 0000950170-24-094044.txt ( ) — 7547KB
• uht-20240630.xsd (EX-101.SCH) — 1282KB
• uht-20240630_htm.xml (XML) — 1053KB

FINANCIAL INFORMATION (unaudited)

PART I. FINANCIAL INFORMATION (unaudited) Item 1.

Financial Statements

Financial Statements Condensed Consolidated Statements of Income—Three and Six Months Ended June 30, 2024 and 2023 3 Condensed Consolidated Statements of Comprehensive Income—Three and Six Months Ended June 30, 2024 and 2023 4 Condensed Consolidated Balance Sheets—June 30, 2024 and December 31, 2023 5 Condensed Consolidated Statements of Changes in Equity—Three and Six Months Ended June 30, 2024 and 2023 6 through 7 Condensed Consolidated Statements of Cash Flows—Six Months Ended June 30, 2024 and 2023 8 Notes to Condensed Consolidated Financial Statements 9 through 19 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 20 through 29 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 30 through 31 Item 4.

Controls and Procedures

Controls and Procedures 31

OTHER INFORMATION

PART II. OTHER INFORMATION 32 Item 1A.

Risk Factors

Risk Factors 32 Item 5. Other Information 32 Item 6. Exhibits 32

SIGNATURES

SIGNATURES 33 This Quarterly Report on Form 10-Q is for the quarter ended June 30, 2024. In this Quarterly Report, "we," "us," "our" and the "Trust" refer to Universal Health Realty Income Trust and its subsidiaries. As disclosed in this Quarterly Report, including in Note 2 to the condensed consolidated financial statements—Relationship with Universal Health Services, Inc. ("UHS") and Related Party Transactions , a wholly-owned subsidiary of UHS (UHS of Delaware, Inc.) serves as our Advisor pursuant to the terms of an annually renewable Advisory Agreement dated December 24, 1986, and as amended and restated as of January 1, 2019. The Advisory Agreement expires on December 31 of each year, however, it is renewable by us, subject to a determination by our Trustees who are unaffiliated with UHS, that the Advisor's performance has been satisfactory. The Advisory Agreement was renewed for 2024 with the same terms as the Advisory Agreement in place during 2023 and 2022. Our officers are all employees of UHS through its wholly-owned subsidiary, UHS of Delaware, Inc. In addition, five of our hospital facilities are leased to wholly-owned subsidiaries of UHS, one of our hospital facilities is leased to a joint venture between a wholly-owned subsidiary of UHS and a third party, and subsidiaries of UHS are tenants of twenty-one medical/office buildings or free-standing emergency departments, that are either wholly or jointly-owned by us. Any reference to "UHS" or "UHS facilities" in this report is referring to Universal Health Services, Inc.'s subsidiaries, including UHS of Delaware, Inc. In this Quarterly Report, the term "revenues" does not include the revenues of the unconsolidated limited liability companies ("LLCs") in which we have various non-controlling equity interests ranging from 33% to 95%. As of June 30, 2024, we had investments in four jointly-owned LLCs/LPs. We currently account for our share of the income/loss from these investments by the equity metho

Financi al Information

Part I. Financi al Information Item I. Financ ial Statements Universal Health Realty Income Trust Condensed Consolidated Statements of Income For the Three and Six Months Ended June 30, 2024 and 2023 (amounts in thousands, except per share information) (unaudited) Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Revenues: Lease revenue - UHS facilities (a.) $ 8,454 $ 8,236 $ 17,118 $ 16,023 Lease revenue - Non-related parties 14,359 13,668 28,846 27,029 Other revenue - UHS facilities 220 245 440 476 Other revenue - Non-related parties 342 292 751 773 Interest income on financing leases - UHS facilities 1,359 1,365 2,720 2,731 24,734 23,806 49,875 47,032 Expenses: Depreciation and amortization 6,806 6,849 13,615 13,467 Advisory fees to UHS 1,369 1,323 2,707 2,625 Other operating expenses 6,975 8,250 14,506 15,771 15,150 16,422 30,828 31,863 Income before equity in income of unconsolidated limited liability companies ("LLCs") and interest expense 9,584 7,384 19,047 15,169 Equity in income of unconsolidated LLCs 272 268 656 639 Interest expense, net ( 4,580 ) ( 4,176 ) ( 9,127 ) ( 7,873 ) Net income $ 5,276 $ 3,476 $ 10,576 $ 7,935 Basic earnings per share $ 0.38 $ 0.25 $ 0.77 $ 0.58 Diluted earnings per share $ 0.38 $ 0.25 $ 0.76 $ 0.57 Weighted average number of shares outstanding - Basic 13,798 13,784 13,795 13,781 Weighted average number of shares outstanding - Diluted 13,832 13,809 13,828 13,806 (a.) Includes bonus rental on McAllen Medical Center, a UHS acute care hospital fa cility of $ 758 and $ 730 for the three-month periods ended June 30, 2024 and 2023, respectively, and $ 1,541 and $ 1,495 for the six-month periods ended June 30, 2024 and 2023, respectively. See accompanying notes to t

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