Universal Health Realty Income Trust Reports 2017 Second Quarter Financial Results
07/26/2017
As calculated on the Schedule of Non-GAAP Supplemental Information ("Supplemental Schedule"), our funds from operations ("FFO"), which excludes the impact of depreciation and amortization expense incurred by us and our unconsolidated affiliates, was
Consolidated Results of Operations - Six-Month Periods Ended June 30, 2017 and 2016:
For the six-month period ended June 30, 2017, reported net income was
As reflected on the attached Supplemental Schedule, our financial results for the first six months of 2017 include a gain of
As calculated on the Supplemental Schedule, our FFO, which excludes the impact of the gain and depreciation and amortization expense incurred by us and our unconsolidated affiliates, increased to
Dividend Information:
The second quarter dividend of
Capital Resources Information:
At June 30, 2017, we had
Summary of March, 2017 Divestiture, July, 2017 Acquisition, Previously Announced 2016 Acquisitions and Other Potential 2017 Acquisition in Connection With Planned Like-Kind Exchange Transactions Pursuant to Section 1031 of the
As discussed below, during 2016 and 2017, as part of a series of planned tax deferred like-kind exchange transactions pursuant to Section 1031 of the Internal Revenue Code, we: (i) divested in March, 2017, the
The two 2016 acquisitions, as well as the 2017 acquisition, were planned and executed in accordance with the provisions of Section 1031 of the Internal Revenue Code. Therefore, we believe they qualify as tax deferred like-kind exchange transactions in connection with the above-mentioned divestiture of
Divestiture of
As previously, disclosed, during March, 2017,
In connection with the divestiture of
Acquisitions Previously Completed in 2016:
As previously announced during 2016, for an aggregate purchase price of approximately
2704 North Tenaya Way located inLas Vegas , Nevada. This medical office building, which consists of 45,000 rentable square feet, was acquired in November, 2016 for a total purchase price of approximately$15.3 million , including the assumption of approximately$7.1 million of third-party debt that is non-recourse to us.Frederick Crestwood Medical Office Building located inFrederick, Maryland . This medical office building, which consists of approximately 62,300 rentable square feet, was acquired in September, 2016 for a purchase price of approximately$24.3 million .
Acquisition Completed in July, 2017:
In July, 2017, we acquired The Health Center at
Other Potential 2017 Acquisition:
As part of the planned tax deferred like-kind exchange transactions under Section 1031 of the Internal Revenue Code in connection with the divestiture of
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
(more)
Universal Health Realty Income Trust |
||||||||||||||||
Consolidated Statements of Income |
||||||||||||||||
For the Three and Six Months Ended June 30, 2017 and 2016 |
||||||||||||||||
(amounts in thousands, except per share amounts) |
||||||||||||||||
(unaudited) |
||||||||||||||||
Three Months Ended |
Six Months Ended |
|||||||||||||||
June 30, |
June 30, |
|||||||||||||||
2017 |
2016 |
2017 |
2016 |
|||||||||||||
Revenues: |
||||||||||||||||
Base rental - UHS facilities |
$ |
4,303 |
$ |
4,079 |
$ |
8,383 |
$ |
8,160 |
||||||||
Base rental - Non-related parties |
10,116 |
9,030 |
20,086 |
17,845 |
||||||||||||
Bonus rental - UHS facilities |
1,242 |
1,193 |
2,530 |
2,439 |
||||||||||||
Tenant reimbursements and other - Non-related parties |
2,239 |
1,943 |
4,432 |
3,816 |
||||||||||||
Tenant reimbursements and other - UHS facilities |
245 |
216 |
464 |
427 |
||||||||||||
18,145 |
16,461 |
35,895 |
32,687 |
|||||||||||||
Expenses: |
||||||||||||||||
Depreciation and amortization |
6,295 |
5,543 |
12,440 |
10,979 |
||||||||||||
Advisory fees to UHS |
874 |
781 |
1,740 |
1,548 |
||||||||||||
Other operating expenses |
4,923 |
4,540 |
9,628 |
8,940 |
||||||||||||
Transaction costs |
56 |
64 |
126 |
146 |
||||||||||||
12,148 |
10,928 |
23,934 |
21,613 |
|||||||||||||
Income before equity in income of unconsolidated limited |
5,997 |
5,533 |
11,961 |
11,074 |
||||||||||||
Equity in income of unconsolidated LLCs |
498 |
1,227 |
1,575 |
2,286 |
||||||||||||
Gain on fair value recognition resulting from purchase of minority interest in majority-owned LLC, net |
- |
- |
27,196 |
- |
||||||||||||
Interest expense, net |
(2,462) |
(2,237) |
(5,137) |
(4,409) |
||||||||||||
Net income |
$ |
4,033 |
$ |
4,523 |
$ |
35,595 |
$ |
8,951 |
||||||||
Basic earnings per share |
$ |
0.30 |
$ |
0.34 |
$ |
2.62 |
$ |
0.67 |
||||||||
Diluted earnings per share |
$ |
0.30 |
$ |
0.34 |
$ |
2.62 |
$ |
0.67 |
||||||||
Weighted average number of shares outstanding - Basic |
13,583 |
13,397 |
13,581 |
13,352 |
||||||||||||
Weighted average number of share equivalents |
- |
7 |
- |
7 |
||||||||||||
Weighted average number of shares and equivalents outstanding - Diluted |
13,583 |
13,404 |
13,581 |
13,359 |
Universal Health Realty Income Trust |
||||||||||||||||
Schedule of Non-GAAP Supplemental Information ("Supplemental Schedule") |
||||||||||||||||
For the three months ended June 30, 2017 and 2016 |
||||||||||||||||
(in thousands, except per share amounts) |
||||||||||||||||
(unaudited) |
||||||||||||||||
Calculation of Adjusted Net Income |
||||||||||||||||
Three Months Ended |
Three Months Ended |
|||||||||||||||
June 30, 2017 |
June 30, 2016 |
|||||||||||||||
Amount |
Per Diluted Share |
Amount |
Per Diluted Share |
|||||||||||||
Net income |
$ |
4,033 |
$ |
0.30 |
$ |
4,523 |
$ |
0.34 |
||||||||
Adjusted net income |
$ |
4,033 |
$ |
0.30 |
$ |
4,523 |
$ |
0.34 |
Calculation of Funds From Operations ("FFO") |
||||||||||||||||
Three Months Ended |
Three Months Ended |
|||||||||||||||
June 30, 2017 |
June 30, 2016 |
|||||||||||||||
Amount |
Per Diluted Share |
Amount |
Per Diluted Share |
|||||||||||||
Net income |
$ |
4,033 |
$ |
0.30 |
$ |
4,523 |
$ |
0.34 |
||||||||
Plus: Depreciation and amortization expense: |
||||||||||||||||
Consolidated investments |
6,167 |
0.45 |
5,435 |
0.40 |
||||||||||||
Unconsolidated affiliates |
253 |
0.02 |
465 |
0.04 |
||||||||||||
FFO |
$ |
10,453 |
$ |
0.77 |
$ |
10,423 |
$ |
0.78 |
||||||||
Dividend paid per share |
$ |
0.660 |
$ |
0.650 |
Universal Health Realty Income Trust |
||||||||||||||||
Schedule of Non-GAAP Supplemental Information ("Supplemental Schedule") |
||||||||||||||||
For the six months ended June 30, 2017 and 2016 |
||||||||||||||||
(in thousands, except per share amounts) |
||||||||||||||||
(unaudited) |
||||||||||||||||
Calculation of Adjusted Net Income |
||||||||||||||||
Six Months Ended |
Six Months Ended |
|||||||||||||||
June 30, 2017 |
June 30, 2016 |
|||||||||||||||
Amount |
Per Diluted Share |
Amount |
Per Diluted Share |
|||||||||||||
Net income |
$ |
35,595 |
$ |
2.62 |
$ |
8,951 |
$ |
0.67 |
||||||||
Adjustment: |
||||||||||||||||
Less: Gain on fair value recognition resulting from |
(27,196) |
(2.00) |
- |
- |
||||||||||||
Adjusted net income |
$ |
8,399 |
$ |
0.62 |
$ |
8,951 |
$ |
0.67 |
Calculation of Funds From Operations ("FFO") |
||||||||||||||||
Six Months Ended |
Six Months Ended |
|||||||||||||||
June 30, 2017 |
June 30, 2016 |
|||||||||||||||
Amount |
Per Diluted Share |
Amount |
Per Diluted Share |
|||||||||||||
Net income |
$ |
35,595 |
$ |
2.62 |
$ |
8,951 |
$ |
0.67 |
||||||||
Plus: Depreciation and amortization expense: |
||||||||||||||||
Consolidated investments |
12,189 |
0.90 |
10,768 |
0.80 |
||||||||||||
Unconsolidated affiliates |
679 |
0.05 |
915 |
0.07 |
||||||||||||
Less: Gain on fair value recognition resulting from purchase |
(27,196) |
(2.00) |
- |
- |
||||||||||||
FFO |
$ |
21,267 |
$ |
1.57 |
$ |
20,634 |
$ |
1.54 |
||||||||
Dividend paid per share |
$ |
1.315 |
$ |
1.295 |
Universal Health Realty Income Trust |
||||||||
Consolidated Balance Sheets |
||||||||
(dollar amounts in thousands) |
||||||||
(unaudited) |
||||||||
June 30, |
December 31, |
|||||||
2017 |
2016 |
|||||||
Assets: |
||||||||
Real Estate Investments: |
||||||||
Buildings and improvements and construction in progress |
$ |
539,729 |
$ |
534,190 |
||||
Accumulated depreciation |
(148,279) |
(138,588) |
||||||
391,450 |
395,602 |
|||||||
Land |
51,645 |
51,638 |
||||||
Net Real Estate Investments |
443,095 |
447,240 |
||||||
Investments in and advances to limited liability companies ("LLCs") |
4,718 |
35,593 |
||||||
Other Assets: |
||||||||
Cash and cash equivalents |
4,109 |
3,930 |
||||||
Restricted cash |
11,253 |
- |
||||||
Base and bonus rent and other receivables from UHS |
3,630 |
2,321 |
||||||
Rent receivable - other |
5,697 |
5,291 |
||||||
Intangible assets (net of accumulated amortization of $28.4 million and |
21,460 |
23,815 |
||||||
Deferred charges and other assets, net |
5,863 |
6,560 |
||||||
Total Assets |
$ |
499,825 |
$ |
524,750 |
||||
Liabilities: |
||||||||
Line of credit borrowings |
$ |
182,850 |
$ |
201,500 |
||||
Mortgage notes payable, non-recourse to us, net |
90,649 |
114,217 |
||||||
Accrued interest |
564 |
626 |
||||||
Accrued expenses and other liabilities |
10,283 |
11,809 |
||||||
Tenant reserves, deposits and prepaid rents |
6,432 |
5,321 |
||||||
Total Liabilities |
290,778 |
333,473 |
||||||
Equity: |
||||||||
Preferred shares of beneficial interest, |
- |
- |
||||||
Common shares, $.01 par value; |
136 |
136 |
||||||
Capital in excess of par value |
255,811 |
255,656 |
||||||
Cumulative net income |
608,096 |
572,501 |
||||||
Cumulative dividends |
(655,008) |
(637,121) |
||||||
Accumulated other comprehensive income |
12 |
105 |
||||||
Total Equity |
209,047 |
191,277 |
||||||
Total Liabilities and Equity |
$ |
499,825 |
$ |
524,750 |
View original content:http://www.prnewswire.com/news-releases/universal-health-realty-income-trust-reports-2017-second-quarter-financial-results-300494767.html
SOURCE
Charles Boyle, Chief Financial Officer, (610) 768-3300