Universal Health Realty Income Trust Reports 2018 Third Quarter Financial Results
10/26/2018
As calculated on the Schedule of Non-GAAP Supplemental Information ("Supplemental Schedule") for the three-month periods ended
As a result of damage sustained in
Consolidated Results of Operations - Nine-Month Periods Ended September 30, 2018 and 2017:
For the nine-month period ended
As reflected on the Supplemental Schedule, and as discussed below, our financial results for the nine-month period ended
As also calculated on the Supplemental Schedule, our FFO were
Our net income and FFO for the nine-month period ended
Dividend Information:
The third quarter dividend of
Capital Resources Information:
In late
At
Hurricane Harvey Impact:
In late
During 2018, pursuant to the terms of a global settlement with our commercial property insurance carrier, we received
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 and Nine Months Ended September 30, 2018 and 2017 |
||||||||||||||||
(amounts in thousands, except per share amounts) |
||||||||||||||||
(unaudited) |
||||||||||||||||
Three Months Ended |
Nine Months Ended |
|||||||||||||||
September 30, |
September 30, |
|||||||||||||||
2018 |
2017 |
2018 |
2017 |
|||||||||||||
Revenues: |
||||||||||||||||
Base rental - UHS facilities |
$ |
4,184 |
$ |
4,242 |
$ |
12,547 |
$ |
12,625 |
||||||||
Base rental - Non-related parties |
10,402 |
10,167 |
30,946 |
30,253 |
||||||||||||
Bonus rental - UHS facilities |
1,216 |
1,126 |
3,746 |
3,656 |
||||||||||||
Tenant reimbursements and other - Non-related parties |
2,715 |
2,440 |
9,330 |
6,872 |
||||||||||||
Tenant reimbursements and other - UHS facilities |
311 |
219 |
909 |
683 |
||||||||||||
18,828 |
18,194 |
57,478 |
54,089 |
|||||||||||||
Expenses: |
||||||||||||||||
Depreciation and amortization |
6,232 |
6,321 |
18,630 |
18,761 |
||||||||||||
Advisory fees to UHS |
975 |
908 |
2,827 |
2,648 |
||||||||||||
Other operating expenses |
5,118 |
4,877 |
15,771 |
14,505 |
||||||||||||
Hurricane related expenses |
- |
3,398 |
- |
3,398 |
||||||||||||
Hurricane insurance recoveries |
- |
(3,398) |
- |
(3,398) |
||||||||||||
Transaction costs |
- |
(19) |
- |
107 |
||||||||||||
12,325 |
12,087 |
37,228 |
36,021 |
|||||||||||||
Income before equity in income of unconsolidated limited |
6,503 |
6,107 |
20,250 |
18,068 |
||||||||||||
Equity in income of unconsolidated LLCs |
351 |
384 |
1,205 |
1,959 |
||||||||||||
Hurricane insurance recovery proceeds in excess of |
- |
- |
4,535 |
- |
||||||||||||
Hurricane business interruption insurance recovery |
- |
- |
1,162 |
- |
||||||||||||
Gain on Arlington transaction |
- |
- |
- |
27,196 |
||||||||||||
Interest expense, net |
(2,480) |
(2,531) |
(7,369) |
(7,668) |
||||||||||||
Net income |
$ |
4,374 |
$ |
3,960 |
$ |
19,783 |
$ |
39,555 |
||||||||
Basic earnings per share |
$ |
0.32 |
$ |
0.29 |
$ |
1.44 |
$ |
2.91 |
||||||||
Diluted earnings per share |
$ |
0.32 |
$ |
0.29 |
$ |
1.44 |
$ |
2.91 |
||||||||
Weighted average number of shares outstanding - Basic and |
13,726 |
13,621 |
13,721 |
13,595 |
Universal Health Realty Income Trust |
||||||||||||||||
Schedule of Non-GAAP Supplemental Information ("Supplemental Schedule") |
||||||||||||||||
For the Three Months Ended September 30, 2018 and 2017 |
||||||||||||||||
(in thousands, except per share amounts) |
||||||||||||||||
(unaudited) |
||||||||||||||||
Calculation of Adjusted Net Income |
||||||||||||||||
Three Months Ended |
Three Months Ended |
|||||||||||||||
September 30, 2018 |
September 30, 2017 |
|||||||||||||||
Amount |
Per Diluted Share |
Amount |
Per Diluted Share |
|||||||||||||
Net income |
$ |
4,374 |
$ |
0.32 |
$ |
3,960 |
$ |
0.29 |
||||||||
Adjustments: |
||||||||||||||||
Plus: Hurricane related expenses |
- |
- |
3,398 |
0.25 |
||||||||||||
Less: Hurricane insurance recoveries |
- |
- |
(3,398) |
(0.25) |
||||||||||||
Subtotal adjustments to net income |
- |
- |
- |
- |
||||||||||||
Adjusted net income |
$ |
4,374 |
$ |
0.32 |
$ |
3,960 |
$ |
0.29 |
Calculation of Funds From Operations ("FFO") |
||||||||||||||||
Three Months Ended |
Three Months Ended |
|||||||||||||||
September 30, 2018 |
September 30, 2017 |
|||||||||||||||
Amount |
Per Diluted Share |
Amount |
Per Diluted Share |
|||||||||||||
Net income |
$ |
4,374 |
$ |
0.32 |
$ |
3,960 |
$ |
0.29 |
||||||||
Plus: Depreciation and amortization expense: |
||||||||||||||||
Consolidated investments |
6,065 |
0.44 |
6,189 |
0.46 |
||||||||||||
Unconsolidated affiliates |
254 |
0.02 |
302 |
0.02 |
||||||||||||
FFO |
$ |
10,693 |
$ |
0.78 |
$ |
10,451 |
$ |
0.77 |
||||||||
Dividend paid per share |
$ |
0.670 |
$ |
0.660 |
Universal Health Realty Income Trust |
||||||||||||||||
Schedule of Non-GAAP Supplemental Information ("Supplemental Schedule") |
||||||||||||||||
For the Nine Months Ended September 30, 2018 and 2017 |
||||||||||||||||
(in thousands, except per share amounts) |
||||||||||||||||
(unaudited) |
||||||||||||||||
Calculation of Adjusted Net Income |
||||||||||||||||
Nine Months Ended |
Nine Months Ended |
|||||||||||||||
September 30, 2018 |
September 30, 2017 |
|||||||||||||||
Amount |
Per Diluted Share |
Amount |
Per Diluted Share |
|||||||||||||
Net income |
$ |
19,783 |
$ |
1.44 |
$ |
39,555 |
$ |
2.91 |
||||||||
Adjustments: |
||||||||||||||||
Plus: Hurricane related expenses |
- |
- |
3,398 |
0.25 |
||||||||||||
Less: Hurricane insurance recovery proceeds in excess of |
(4,535) |
(0.33) |
- |
- |
||||||||||||
Less: Hurricane insurance recoveries |
- |
- |
(3,398) |
(0.25) |
||||||||||||
Less: Gain on Arlington transaction |
- |
- |
(27,196) |
(2.00) |
||||||||||||
Subtotal adjustments to net income |
(4,535) |
(0.33) |
(27,196) |
(2.00) |
||||||||||||
Adjusted net income |
$ |
15,248 |
$ |
1.11 |
$ |
12,359 |
$ |
0.91 |
Calculation of Funds From Operations ("FFO") |
||||||||||||||||
Nine Months Ended |
Nine Months Ended |
|||||||||||||||
September 30, 2018 |
September 30, 2017 |
|||||||||||||||
Amount |
Per Diluted Share |
Amount |
Per Diluted Share |
|||||||||||||
Net income |
$ |
19,783 |
$ |
1.44 |
$ |
39,555 |
$ |
2.91 |
||||||||
Plus: Depreciation and amortization expense: |
||||||||||||||||
Consolidated investments |
18,175 |
1.32 |
18,378 |
1.35 |
||||||||||||
Unconsolidated affiliates |
779 |
0.06 |
981 |
0.07 |
||||||||||||
Less: Hurricane insurance recovery proceeds in excess of |
(4,535) |
(0.33) |
- |
- |
||||||||||||
Gain on Arlington transaction |
- |
- |
(27,196) |
(2.00) |
||||||||||||
FFO |
$ |
34,202 |
$ |
2.49 |
$ |
31,718 |
$ |
2.33 |
||||||||
Dividend paid per share |
$ |
2.005 |
$ |
1.975 |
Universal Health Realty Income Trust |
||||||||
Consolidated Balance Sheets |
||||||||
(dollar amounts in thousands, except share data) |
||||||||
(unaudited) |
||||||||
September 30, |
December 31, |
|||||||
2018 |
2017 |
|||||||
Assets: |
||||||||
Real Estate Investments: |
||||||||
Buildings and improvements and construction in progress |
$ |
556,184 |
$ |
546,634 |
||||
Accumulated depreciation |
(168,612) |
(153,379) |
||||||
387,572 |
393,255 |
|||||||
Land |
53,396 |
53,142 |
||||||
Net Real Estate Investments |
440,968 |
446,397 |
||||||
Investments in limited liability companies ("LLCs") |
5,022 |
4,671 |
||||||
Other Assets: |
||||||||
Cash and cash equivalents |
5,072 |
3,387 |
||||||
Base and bonus rent and other receivables from UHS |
2,688 |
2,680 |
||||||
Rent receivable - other |
7,121 |
6,422 |
||||||
Intangible assets (net of accumulated amortization of $26.6 million and |
18,317 |
20,559 |
||||||
Deferred charges and other assets, net |
8,368 |
5,892 |
||||||
Total Assets |
$ |
487,556 |
$ |
490,008 |
||||
Liabilities: |
||||||||
Line of credit borrowings |
$ |
195,000 |
$ |
181,050 |
||||
Mortgage notes payable, non-recourse to us, net |
65,311 |
75,359 |
||||||
Accrued interest |
447 |
540 |
||||||
Accrued expenses and other liabilities |
11,825 |
12,188 |
||||||
Tenant reserves, deposits and deferred and prepaid rents |
11,618 |
10,310 |
||||||
Total Liabilities |
284,201 |
279,447 |
||||||
Equity: |
||||||||
Preferred shares of beneficial interest, |
- |
- |
||||||
Common shares, $.01 par value; |
137 |
137 |
||||||
Capital in excess of par value |
265,816 |
265,335 |
||||||
Cumulative net income |
637,903 |
618,120 |
||||||
Cumulative dividends |
(700,727) |
(673,175) |
||||||
Accumulated other comprehensive income |
226 |
144 |
||||||
Total Equity |
203,355 |
210,561 |
||||||
Total Liabilities and Equity |
$ |
487,556 |
$ |
490,008 |
View original content:http://www.prnewswire.com/news-releases/universal-health-realty-income-trust-reports-2018-third-quarter-financial-results-300738394.html
SOURCE
Charles Boyle, Chief Financial Officer, (610) 768-3300