UNIVERSAL HEALTH REALTY INCOME TRUST REPORTS 2025 FIRST QUARTER FINANCIAL RESULTS
Universal Health Realty Income Trust reported its Q1 2025 financial results, showing a decline in performance compared to Q1 2024. Net income decreased to $4.8 million ($0.34 per diluted share) from $5.3 million ($0.38 per diluted share) in the previous year.
The decline was attributed to:
- A $401,000 decrease from lower income at various properties
- A $122,000 increase in interest expense due to higher borrowings and rates
Key financial highlights:
- FFO (Funds From Operations) reached $11.9 million ($0.86 per share)
- Quarterly dividend of $0.735 per share paid on March 31, 2025
- Available borrowing capacity of $75.5 million on $425 million credit facility
The healthcare REIT maintains investments in 76 properties across 21 states, including acute care hospitals, behavioral health facilities, and medical office buildings. Management noted concerns about interest rates, staffing challenges, and potential Medicaid funding reductions affecting future performance.
Universal Health Realty Income Trust ha comunicato i risultati finanziari del primo trimestre 2025, evidenziando un calo delle prestazioni rispetto al primo trimestre 2024. L'utile netto è diminuito a 4,8 milioni di dollari (0,34 dollari per azione diluita) rispetto ai 5,3 milioni di dollari (0,38 dollari per azione diluita) dell'anno precedente.
Il calo è stato attribuito a:
- Una riduzione di 401.000 dollari dovuta a minori ricavi in diverse proprietà
- Un aumento di 122.000 dollari delle spese per interessi a causa di maggiori indebitamenti e tassi più elevati
Punti salienti finanziari:
- FFO (Funds From Operations) pari a 11,9 milioni di dollari (0,86 dollari per azione)
- Dividendo trimestrale di 0,735 dollari per azione pagato il 31 marzo 2025
- Capacità di indebitamento disponibile di 75,5 milioni di dollari su una linea di credito da 425 milioni di dollari
Il REIT sanitario mantiene investimenti in 76 proprietà distribuite in 21 stati, tra cui ospedali di cura acuta, strutture per la salute comportamentale e edifici per uffici medici. La direzione ha segnalato preoccupazioni riguardo ai tassi di interesse, alle sfide di personale e a potenziali riduzioni dei finanziamenti Medicaid che potrebbero influenzare le prestazioni future.
Universal Health Realty Income Trust informó sus resultados financieros del primer trimestre de 2025, mostrando un descenso en el desempeño en comparación con el primer trimestre de 2024. El ingreso neto disminuyó a 4.8 millones de dólares (0.34 dólares por acción diluida) desde 5.3 millones de dólares (0.38 dólares por acción diluida) del año anterior.
La disminución se atribuyó a:
- Una reducción de 401,000 dólares por menores ingresos en varias propiedades
- Un aumento de 122,000 dólares en gastos por intereses debido a mayores préstamos y tasas
Aspectos financieros clave:
- FFO (Fondos de Operación) alcanzó 11.9 millones de dólares (0.86 dólares por acción)
- Dividendo trimestral de 0.735 dólares por acción pagado el 31 de marzo de 2025
- Capacidad de endeudamiento disponible de 75.5 millones de dólares sobre una línea de crédito de 425 millones de dólares
El REIT de salud mantiene inversiones en 76 propiedades en 21 estados, incluyendo hospitales de atención aguda, instalaciones de salud conductual y edificios de oficinas médicas. La gerencia expresó preocupaciones sobre las tasas de interés, los desafíos de personal y posibles reducciones en la financiación de Medicaid que podrían afectar el desempeño futuro.
Universal Health Realty Income Trust는 2025년 1분기 재무 실적을 발표하며 2024년 1분기 대비 실적이 감소했음을 보였습니다. 순이익은 전년 530만 달러(희석 주당 0.38달러)에서 480만 달러(희석 주당 0.34달러)로 줄었습니다.
감소 원인은 다음과 같습니다:
- 여러 자산에서 수익이 40만 1천 달러 감소
- 대출 증가 및 금리 상승으로 이자 비용이 12만 2천 달러 증가
주요 재무 하이라이트:
- FFO(운영자금) 1,190만 달러(주당 0.86달러) 달성
- 2025년 3월 31일 주당 0.735달러 분기 배당금 지급
- 4억 2,500만 달러 신용 한도 중 7,550만 달러 대출 가능
이 헬스케어 REIT는 21개 주에 걸쳐 76개 부동산에 투자하고 있으며, 급성기 병원, 행동 건강 시설, 의료 사무실 건물을 포함합니다. 경영진은 금리, 인력 문제, 그리고 향후 실적에 영향을 미칠 수 있는 메디케이드 자금 삭감 가능성에 대해 우려를 표명했습니다.
Universal Health Realty Income Trust a publié ses résultats financiers du premier trimestre 2025, montrant une baisse de performance par rapport au premier trimestre 2024. Le revenu net a diminué à 4,8 millions de dollars (0,34 dollar par action diluée) contre 5,3 millions de dollars (0,38 dollar par action diluée) l'année précédente.
La baisse est attribuée à :
- Une diminution de 401 000 dollars due à des revenus inférieurs dans plusieurs propriétés
- Une augmentation de 122 000 dollars des charges d’intérêts en raison d’un endettement et de taux plus élevés
Points financiers clés :
- FFO (fonds provenant des opérations) de 11,9 millions de dollars (0,86 dollar par action)
- Dividende trimestriel de 0,735 dollar par action versé le 31 mars 2025
- Capacité d’emprunt disponible de 75,5 millions de dollars sur une facilité de crédit de 425 millions de dollars
Le REIT de santé détient des investissements dans 76 propriétés réparties dans 21 États, incluant des hôpitaux de soins aigus, des établissements de santé comportementale et des immeubles de bureaux médicaux. La direction a exprimé des inquiétudes concernant les taux d’intérêt, les défis liés au personnel et les éventuelles réductions de financement Medicaid pouvant affecter la performance future.
Universal Health Realty Income Trust veröffentlichte seine Finanzergebnisse für das erste Quartal 2025 und zeigte einen Rückgang der Leistung im Vergleich zum ersten Quartal 2024. Der Nettogewinn sank auf 4,8 Millionen US-Dollar (0,34 US-Dollar je verwässerter Aktie) von 5,3 Millionen US-Dollar (0,38 US-Dollar je verwässerter Aktie) im Vorjahr.
Der Rückgang wurde zurückgeführt auf:
- Eine Verringerung der Einnahmen um 401.000 US-Dollar bei verschiedenen Immobilien
- Eine Erhöhung der Zinsaufwendungen um 122.000 US-Dollar aufgrund höherer Kredite und Zinssätze
Wesentliche finanzielle Highlights:
- FFO (Funds From Operations) erreichte 11,9 Millionen US-Dollar (0,86 US-Dollar je Aktie)
- Quartalsdividende von 0,735 US-Dollar je Aktie, ausgezahlt am 31. März 2025
- Verfügbare Kreditlinie von 75,5 Millionen US-Dollar bei einer Kreditfazilität von 425 Millionen US-Dollar
Der Healthcare-REIT hält Investitionen in 76 Immobilien in 21 Bundesstaaten, darunter Akutkrankenhäuser, Einrichtungen für Verhaltensgesundheit und medizinische Bürogebäude. Das Management äußerte Bedenken hinsichtlich der Zinssätze, Personalherausforderungen und möglichen Kürzungen der Medicaid-Finanzierung, die die zukünftige Leistung beeinträchtigen könnten.
- Maintained stable dividend payment of $0.735 per share in Q1 2025
- Healthy FFO (Funds From Operations) of $11.9 million or $0.86 per diluted share
- Strong portfolio of 76 healthcare properties across 21 states
- Substantial available borrowing capacity of $75.5 million under credit agreement
- Credit agreement extends until September 2028 with option for two additional six-month periods
- Net income decreased to $4.8 million ($0.34/share) from $5.3 million ($0.38/share) YoY
- Revenue declined to $24.5 million from $25.1 million YoY
- Interest expense increased due to higher borrowings and effective borrowing rate
- FFO decreased to $0.86 per diluted share from $0.90 per diluted share YoY
- Income from properties showed aggregate net decrease of $401,000
Insights
UHT reports declining Q1 2025 performance with 10.5% EPS drop and weakening property income, partially offset by dividend increase.
Universal Health Realty Income Trust's Q1 2025 results reveal concerning performance deterioration. Net income fell to
The trust's Funds From Operations (FFO) – the critical cash flow metric for REITs – declined to
Revenue contracted by
Despite these headwinds, UHT increased its quarterly dividend to
UHT's weakening property income and rising interest costs signal operating pressures while maintaining dividend amid healthcare sector challenges.
The
UHT's forward-looking statements highlight significant sector-specific risks that contextualize these results, including staffing shortages, wage pressures, and potential Medicaid funding reductions affecting their healthcare operator tenants. These systemic challenges explain the broader revenue decline from
The increase in interest expense to
While the dividend increase demonstrates management confidence, the higher payout ratio against declining FFO (approximately
UHT's portfolio diversification across acute care hospitals, behavioral health facilities, medical office buildings, and other healthcare properties provides some resilience, but the broad-based income decline suggests industry-wide pressures rather than property-specific issues.
Consolidated Results of Operations - Three-Month Periods Ended March 31, 2025 and 2024:
The decrease in our net income of
As calculated on the attached Schedule of Non-GAAP Supplemental Information ("Supplemental Schedule"), our funds from operations ("FFO") were
Dividend Information:
The first quarter dividend of
Capital Resources Information:
As of March 31, 2025, pursuant the terms of our
General Information, Forward-Looking Statements and Risk Factors and Non-GAAP Financial Measures:
Universal Health Realty Income Trust, a real estate investment trust, invests in healthcare and human-service related facilities including acute care hospitals, behavioral health care hospitals, specialty facilities, medical/office buildings, free-standing emergency departments and childcare centers. We have investments in seventy-six properties located in twenty-one states.
This press release contains forward-looking statements based on current management expectations. Numerous factors, including those disclosed herein, as well as the operations and financial results of each of our tenants, those related to healthcare industry trends and those detailed in our filings with the Securities and Exchange Commission (as set forth in Item 1A-Risk Factors and in Item 7 - Forward-Looking Statements in our Form 10-K for the year ended December 31, 2024), may cause the results to differ materially from those anticipated in the forward-looking statements. Readers should not place undue reliance on such forward-looking statements which reflect management's view only as of the date hereof. We undertake no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.
Many of the factors that could affect our future results are beyond our control or ability to predict. Future operations and financial results of our tenants, and in turn ours, could be materially impacted by various developments including, but not limited to, potential significant reductions in federal funding for state Medicaid programs, and/or other potential changes, which would likely result in reduced Medicaid payments to the operators of our facilities; decreases in staffing availability and related increases to wage expense experienced by our tenants resulting from the shortage of nurses and other clinical staff and support personnel; the impact of government and administrative regulation of the health care industry; declining patient volumes and unfavorable changes in payer mix caused by deteriorating macroeconomic conditions (including increases in uninsured and underinsured patients as the result of business closings and layoffs); potential cost increases and disruptions related to supplies and building materials resulting from changes in laws or policies governing the terms of foreign trade, and in particular, increased trade restrictions, tariffs or taxes on imports from where the products or materials are made; and potential increases to other expenditures.
In addition, the increase in interest rates has substantially increased our borrowings costs and reduced our ability to access the capital markets on favorable terms. Additional increases in interest rates could have a significant unfavorable impact on our future results of operations and the resulting effect on the capital markets could adversely affect our ability to carry out our strategy.
We believe that, if and when applicable, adjusted net income and adjusted net income per diluted share (as reflected on the Supplemental Schedule), which are non-GAAP financial measures ("GAAP" is Generally Accepted Accounting Principles in
Funds from operations ("FFO") is a widely recognized measure of performance for Real Estate Investment Trusts ("REITs"). We believe that FFO and FFO per diluted share, which are non-GAAP financial measures, are helpful to our investors as measures of our operating performance. We compute FFO, as reflected on the attached Supplemental Schedules, in accordance with standards established by the National Association of Real Estate Investment Trusts ("NAREIT"), which may not be comparable to FFO reported by other REITs that do not compute FFO in accordance with the NAREIT definition, or that interpret the NAREIT definition differently than we interpret the definition. FFO adjusts for the effects of certain items, such as gains or losses on transactions that occurred during the periods presented. FFO does not represent cash generated from operating activities in accordance with GAAP and should not be considered to be an alternative to net income determined in accordance with GAAP. In addition, FFO should not be used as: (i) an indication of our financial performance determined in accordance with GAAP; (ii) an alternative to cash flow from operating activities determined in accordance with GAAP; (iii) a measure of our liquidity, or; (iv) an indicator of funds available for our cash needs, including our ability to make cash distributions to shareholders. A reconciliation of our reported net income to FFO is reflected on the Supplemental Schedules included below.
To obtain a complete understanding of our financial performance these measures should be examined in connection with net income, determined in accordance with GAAP, as presented in the condensed consolidated financial statements and notes thereto in this report or in our other filings with the Securities and Exchange Commission including our Report on Form 10-K for the year ended December 31, 2024. Since the items included or excluded from these measures are significant components in understanding and assessing financial performance under GAAP, these measures should not be considered to be alternatives to net income as a measure of our operating performance or profitability. Since these measures, as presented, are not determined in accordance with GAAP and are thus susceptible to varying calculations, they may not be comparable to other similarly titled measures of other companies. Investors are encouraged to use GAAP measures when evaluating our financial performance.
Universal Health Realty Income Trust Consolidated Statements of Income For the Three Months Ended March 31, 2025 and 2024 (amounts in thousands, except share information) (unaudited)
| ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2025 | 2024 | |||||||
Revenues: | ||||||||
Lease revenue - UHS facilities (a.) | $ | 8,327 | $ | 8,664 | ||||
Lease revenue - Non-related parties | 14,326 | 14,487 | ||||||
Other revenue - UHS facilities | 229 | 220 | ||||||
Other revenue - Non-related parties | 314 | 409 | ||||||
Interest income on financing leases - UHS facilities | 1,352 | 1,361 | ||||||
24,548 | 25,141 | |||||||
Expenses: | ||||||||
Depreciation and amortization | 6,845 | 6,809 | ||||||
Advisory fees to UHS | 1,364 | 1,338 | ||||||
Other operating expenses | 7,305 | 7,531 | ||||||
15,514 | 15,678 | |||||||
Income before equity in income of unconsolidated limited liability companies ("LLCs") and interest expense | 9,034 | 9,463 | ||||||
Equity in income of unconsolidated LLCs | 412 | 384 | ||||||
Interest expense, net | (4,669) | (4,547) | ||||||
Net income | $ | 4,777 | $ | 5,300 | ||||
Basic earnings per share | $ | 0.35 | $ | 0.38 | ||||
Diluted earnings per share | $ | 0.34 | $ | 0.38 | ||||
Weighted average number of shares outstanding - Basic | 13,810 | 13,792 | ||||||
Weighted average number of shares outstanding - Diluted | 13,851 | 13,824 |
(a.) Includes bonus rental on McAllen Medical Center, a UHS acute care hospital facility, of |
Universal Health Realty Income Trust Schedule of Non-GAAP Supplemental Information ("Supplemental Schedule") For the Three Months Ended March 31, 2025 and 2024 (amounts in thousands, except share information) (unaudited)
Calculation of Funds From Operations ("FFO")
| ||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||
March 31, 2025 | March 31, 2024 | |||||||||||||||
Amount | Per | Amount | Per | |||||||||||||
Net income | $ | 4,777 | $ | 0.34 | $ | 5,300 | $ | 0.38 | ||||||||
Plus: Depreciation and amortization expense: | ||||||||||||||||
Consolidated investments | 6,845 | 0.50 | 6,809 | 0.50 | ||||||||||||
Unconsolidated affiliates | 308 | 0.02 | 304 | 0.02 | ||||||||||||
FFO | $ | 11,930 | $ | 0.86 | $ | 12,413 | $ | 0.90 | ||||||||
Dividend paid per share | $ | 0.735 | $ | 0.725 |
Universal Health Realty Income Trust Consolidated Balance Sheets (amounts in thousands, except share information) (unaudited)
| ||||||||
March 31, | December 31, | |||||||
2025 | 2024 | |||||||
Assets: | ||||||||
Real Estate Investments: | ||||||||
Buildings and improvements and construction in progress | $ | 657,156 | $ | 655,996 | ||||
Accumulated depreciation | (293,064) | (286,932) | ||||||
364,092 | 369,064 | |||||||
Land | 56,870 | 56,870 | ||||||
Net Real Estate Investments | 420,962 | 425,934 | ||||||
Financing receivable from UHS | 82,639 | 82,798 | ||||||
Net Real Estate Investments and Financing receivable | 503,601 | 508,732 | ||||||
Investments in limited liability companies ("LLCs") | 14,437 | 13,948 | ||||||
Other Assets: | ||||||||
Cash and cash equivalents | 6,974 | 7,097 | ||||||
Lease and other receivables from UHS | 7,051 | 7,131 | ||||||
Lease receivable - other | 8,128 | 7,975 | ||||||
Intangible assets (net of accumulated amortization of | 6,891 | 7,325 | ||||||
Right-of-use land assets, net | 10,911 | 10,918 | ||||||
Deferred charges, notes receivable and other assets, net | 15,489 | 17,736 | ||||||
Total Assets | $ | 573,482 | $ | 580,862 | ||||
Liabilities: | ||||||||
Line of credit borrowings | $ | 349,500 | $ | 348,900 | ||||
Mortgage notes payable, non-recourse to us, net | 19,034 | 19,349 | ||||||
Accrued interest | 659 | 694 | ||||||
Accrued expenses and other liabilities | 9,892 | 10,444 | ||||||
Ground lease liabilities, net | 10,910 | 10,918 | ||||||
Tenant reserves, deposits and deferred and prepaid rents | 11,321 | 11,016 | ||||||
Total Liabilities | 401,316 | 401,321 | ||||||
Equity: | ||||||||
Preferred shares of beneficial interest, | - | - | ||||||
Common shares, | 138 | 138 | ||||||
Capital in excess of par value | 271,340 | 271,092 | ||||||
Cumulative net income | 850,072 | 845,295 | ||||||
Cumulative dividends | (953,576) | (943,396) | ||||||
Accumulated other comprehensive income | 4,192 | 6,412 | ||||||
Total Equity | 172,166 | 179,541 | ||||||
Total Liabilities and Equity | $ | 573,482 | $ | 580,862 |
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SOURCE Universal Health Realty Income Trust