Universal Health Realty Income Trust Q3 2024 Update

TL;DR

**UHT Q3 2024: Financials and operations update filed. Key property and investment details disclosed.**

AI Summary

Universal Health Realty Income Trust (UHT) filed its 10-Q for the period ending September 30, 2024. The filing details financial performance and operational updates for the third quarter. Key financial figures and operational segments are presented, including information related to its investments and properties, some of which are associated with Universal Health Services, Inc.

Why It Matters

This filing provides investors with a crucial update on the financial health and operational status of Universal Health Realty Income Trust, impacting investment decisions.

Risk Assessment

Risk Level: medium — The filing contains detailed financial information and operational disclosures that could impact the company's stock price and investor confidence.

Key Numbers

• 2024-09-30 — Reporting Period End Date (The end of the fiscal quarter for which financial results are reported.)
• 2024-11-08 — Filing Date (The date the 10-Q was officially submitted to the SEC.)

Key Players & Entities

• UNIVERSAL HEALTH REALTY INCOME TRUST (company) — Filer
• 0000798783 (company) — Central Index Key
• Universal Health Services, Inc. (company) — Related entity
• King of Prussia, PA (location) — Business Address
• September 30, 2024 (date) — Reporting Period End Date

FAQ

Key Financial Figures

• $0.01 — stered Shares of beneficial interest, $0.01 par value UHT New York Stock Exchan

Filing Documents

• uht-20240930.htm (10-Q) — 1865KB
• uht-ex31_1.htm (EX-31.1) — 11KB
• uht-ex31_2.htm (EX-31.2) — 11KB
• uht-ex32_1.htm (EX-32.1) — 8KB
• uht-ex32_2.htm (EX-32.2) — 7KB
• 0000950170-24-124121.txt ( ) — 7829KB
• uht-20240930.xsd (EX-101.SCH) — 1277KB
• uht-20240930_htm.xml (XML) — 1103KB

FINANCIAL INFORMATION (unaudited)

PART I. FINANCIAL INFORMATION (unaudited) Item 1.

Financial Statements

Financial Statements Condensed Consolidated Statements of Income—Three and Nine Months Ended September 30, 2024 and 2023 3 Condensed Consolidated Statements of Comprehensive Income—Three and Nine Months Ended September 30, 2024 and 2023 4 Condensed Consolidated Balance Sheets—September 30, 2024 and December 31, 2023 5 Condensed Consolidated Statements of Changes in Equity—Three and Nine Months Ended September 30, 2024 and 2023 6 through 7 Condensed Consolidated Statements of Cash Flows—Nine Months Ended September 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 29 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 September 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 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 September 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

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 Nine Months Ended September 30, 2024 and 2023 (amounts in thousands, except per share information) (unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2024 2023 2024 2023 Revenues: Lease revenue - UHS facilities (a.) $ 8,248 $ 8,274 $ 25,366 $ 24,297 Lease revenue - Non-related parties 14,342 13,926 43,188 40,955 Other revenue - UHS facilities 242 254 682 730 Other revenue - Non-related parties 305 404 1,056 1,177 Interest income on financing leases - UHS facilities 1,357 1,365 4,077 4,096 24,494 24,223 74,369 71,255 Expenses: Depreciation and amortization 7,009 7,012 20,624 20,479 Advisory fees to UHS 1,386 1,332 4,093 3,957 Other operating expenses 7,609 7,854 22,115 23,625 16,004 16,198 46,832 48,061 Income before equity in income of unconsolidated limited liability companies ("LLCs") and interest expense 8,490 8,025 27,537 23,194 Equity in income of unconsolidated LLCs 300 314 956 953 Interest expense, net ( 4,793 ) ( 4,467 ) ( 13,920 ) ( 12,340 ) Net income $ 3,997 $ 3,872 $ 14,573 $ 11,807 Basic earnings per share $ 0.29 $ 0.28 $ 1.06 $ 0.86 Diluted earnings per share $ 0.29 $ 0.28 $ 1.05 $ 0.85 Weighted average number of shares outstanding - Basic 13,807 13,790 13,799 13,784 Weighted average number of shares outstanding - Diluted 13,849 13,822 13,835 13,811 (a.) Includes bonus rental on McAllen Medical Center, a UHS acute care hospital fa cility of $ 765 and $ 725 for the three-month periods ended September 30, 2024 and 2023, respectively, and $ 2,306 and $ 2,219 for the nine-month periods ended September 30, 2024 and 2023, respecti

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