Universal Health Realty Income Trust Reports 2018 First Quarter Financial Results
04/26/2018
As reflected on the attached Schedule of Non-GAAP Supplemental Information ("Supplemental Schedule"), and as discussed below, our financial results for the three months ended
As calculated on the Supplemental Schedule, our adjusted net income was
As also calculated on the Supplemental Schedule, our funds from operations ("FFO"), were
Our adjusted net income and FFO for the three months ended
Dividend Information:
The first quarter dividend of
Capital Resources Information:
On
At March 31, 2018, we had
Hurricane Harvey Impact:
In late August, 2017, five of our medical office buildings located in the
During the first quarter of 2018, pursuant to the terms of a global settlement with our commercial property insurance carrier, we received
Properties damaged and temporarily closed from Hurricane Harvey:
- Cypresswood Professional Center – located in
Spring, Texas and consisting of two medical office buildings ("MOBs") with an aggregate of approximately 40,000 rentable square feet. - Professional Buildings at King's Crossing – located in
Kingwood, Texas and consisting of two MOBs with an aggregate of approximately 24,300 rentable square feet. Kelsey-Seybold Clinic at King's Crossing – located inKingwood, Texas and consisting of one MOB with approximately 20,500 rentable square feet.
General Information, Forward-Looking Statements and Risk Factors and Non-GAAP Financial Measures:
This press release contains forward-looking statements based on current management expectations. Numerous factors, including those disclosed herein, those related to healthcare and healthcare real estate industry trends and those detailed in our filings with the
We believe that adjusted net income and adjusted net income per diluted share (as reflected on the attached Supplemental Schedules), 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
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
Universal Health Realty Income Trust Consolidated Statements of Income For the Three Months Ended March 31, 2018 and 2017 (amounts in thousands, except per share amounts) (unaudited) |
||||||||
Three Months Ended |
||||||||
March 31, |
||||||||
2018 |
2017 |
|||||||
Revenues: |
||||||||
Base rental - UHS facilities |
$ |
4,176 |
$ |
4,080 |
||||
Base rental - Non-related parties |
10,327 |
9,970 |
||||||
Bonus rental - UHS facilities |
1,326 |
1,288 |
||||||
Tenant reimbursements and other - Non-related parties |
2,415 |
2,193 |
||||||
Tenant reimbursements and other - UHS facilities |
295 |
219 |
||||||
18,539 |
17,750 |
|||||||
Expenses: |
||||||||
Depreciation and amortization |
6,287 |
6,145 |
||||||
Advisory fees to UHS |
904 |
866 |
||||||
Other operating expenses |
5,208 |
4,705 |
||||||
Transaction costs |
- |
70 |
||||||
12,399 |
11,786 |
|||||||
Income before equity in income of unconsolidated limited liability companies |
6,140 |
5,964 |
||||||
Equity in income of unconsolidated LLCs |
429 |
1,077 |
||||||
Hurricane insurance recovery proceeds in excess of damaged property |
4,535 |
- |
||||||
Hurricane business interruption insurance recovery proceeds |
968 |
- |
||||||
Gain on Arlington transaction |
- |
27,196 |
||||||
Interest expense, net |
(2,468) |
(2,675) |
||||||
Net income |
$ |
9,604 |
$ |
31,562 |
||||
Basic earnings per share |
$ |
0.70 |
$ |
2.32 |
||||
Diluted earnings per share |
$ |
0.70 |
$ |
2.32 |
||||
Weighted average number of shares outstanding - Basic and Diluted |
13,718 |
13,580 |
Universal Health Realty Income Trust Schedule of Non-GAAP Supplemental Information ("Supplemental Schedule") For the three months ended March 31, 2018 and 2017 (in thousands, except per share amounts) (unaudited) |
||||||||||||||||
Calculation of Adjusted Net Income |
||||||||||||||||
Three Months Ended |
Three Months Ended |
|||||||||||||||
March 31, 2018 |
March 31, 2017 |
|||||||||||||||
Amount |
Per Diluted Share |
Amount |
Per Diluted Share |
|||||||||||||
Net income |
$ |
9,604 |
$ |
0.70 |
$ |
31,562 |
$ |
2.32 |
||||||||
Adjustments: |
||||||||||||||||
Less: Hurricane insurance recovery proceeds in excess of damaged property write-downs |
(4,535) |
(0.33) |
- |
- |
||||||||||||
Gain on Arlington transaction |
- |
- |
(27,196) |
(2.00) |
||||||||||||
Subtotal adjustments to net income |
(4,535) |
(0.33) |
(27,196) |
(2.00) |
||||||||||||
Adjusted net income |
$ |
5,069 |
$ |
0.37 |
$ |
4,366 |
$ |
0.32 |
||||||||
Calculation of Funds From Operations ("FFO") |
||||||||||||||||
Three Months Ended |
Three Months Ended |
|||||||||||||||
March 31, 2018 |
March 31, 2017 |
|||||||||||||||
Amount |
Per Diluted Share |
Amount |
Per Diluted Share |
|||||||||||||
Net income |
$ |
9,604 |
$ |
0.70 |
$ |
31,562 |
$ |
2.32 |
||||||||
Plus: Depreciation and amortization expense: |
||||||||||||||||
Consolidated investments |
6,151 |
0.45 |
6,022 |
0.45 |
||||||||||||
Unconsolidated affiliates |
271 |
0.02 |
426 |
0.03 |
||||||||||||
Less: Hurricane insurance recovery proceeds in excess of damaged property write-downs |
(4,535) |
(0.33) |
- |
- |
||||||||||||
Gain on Arlington transaction |
- |
- |
(27,196) |
(2.00) |
||||||||||||
FFO |
$ |
11,491 |
$ |
0.84 |
$ |
10,814 |
$ |
0.80 |
||||||||
Dividend paid per share |
$ |
0.665 |
$ |
0.655 |
Universal Health Realty Income Trust Consolidated Balance Sheets (dollar amounts in thousands) (unaudited) |
||||||||
March 31, |
December 31, |
|||||||
2018 |
2017 |
|||||||
Assets: |
||||||||
Real Estate Investments: |
||||||||
Buildings and improvements and construction in progress |
$ |
549,465 |
$ |
546,634 |
||||
Accumulated depreciation |
(158,382) |
(153,379) |
||||||
391,083 |
393,255 |
|||||||
Land |
53,142 |
53,142 |
||||||
Net Real Estate Investments |
444,225 |
446,397 |
||||||
Investments in limited liability companies ("LLCs") |
4,643 |
4,671 |
||||||
Other Assets: |
||||||||
Cash and cash equivalents |
4,209 |
3,387 |
||||||
Base and bonus rent and other receivables from UHS |
2,817 |
2,680 |
||||||
Rent receivable - other |
6,690 |
6,422 |
||||||
Intangible assets (net of accumulated amortization of $25.7 million and |
19,376 |
20,559 |
||||||
Deferred charges and other assets, net |
7,625 |
5,892 |
||||||
Total Assets |
$ |
489,585 |
$ |
490,008 |
||||
Liabilities: |
||||||||
Line of credit borrowings |
$ |
175,000 |
$ |
181,050 |
||||
Mortgage notes payable, non-recourse to us, net |
70,781 |
75,359 |
||||||
Accrued interest |
358 |
540 |
||||||
Accrued expenses and other liabilities |
12,270 |
12,188 |
||||||
Dividends payable |
9,134 |
- |
||||||
Tenant reserves, deposits and deferred and prepaid rents |
10,686 |
10,310 |
||||||
Total Liabilities |
278,229 |
279,447 |
||||||
Equity: |
||||||||
Preferred shares of beneficial interest, |
- |
- |
||||||
Common shares, $.01 par value; |
137 |
137 |
||||||
Capital in excess of par value |
265,511 |
265,335 |
||||||
Cumulative net income |
627,724 |
618,120 |
||||||
Cumulative dividends |
(682,309) |
(673,175) |
||||||
Accumulated other comprehensive income |
293 |
144 |
||||||
Total Equity |
211,356 |
210,561 |
||||||
Total Liabilities and Equity |
$ |
489,585 |
$ |
490,008 |
View original content:http://www.prnewswire.com/news-releases/universal-health-realty-income-trust-reports-2018-first-quarter-financial-results-300636802.html
SOURCE
Charles Boyle, Chief Financial Officer, (610) 768-3300