Universal Health Realty Income Trust Reports 2019 Second Quarter Financial Results
07/26/2019
As calculated on the attached Schedule of Non-GAAP Supplemental Information ("Supplemental Schedule"), our funds from operations ("FFO"), were
Our net income, adjusted net income and FFO for the three-month period ended
Consolidated Results of Operations - Six-Month Periods Ended
For the six-month period ended
As reflected on the attached Supplemental Schedule, our financial results for the six-month period ended
As also calculated on the Supplemental Schedule, our FFO were
Our net income and adjusted net income for the six months ended
Dividend Information:
The second quarter dividend of
Capital Resources Information:
At
Adoption of ASU 2016-02, "Leases (Topic 842): Amendments to the FASB Accounting Standards Codification":
Effective
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 Six Months Ended June 30, 2019 and 2018 |
||||||||||||||||
(amounts in thousands, except per share amounts) |
||||||||||||||||
(unaudited) |
||||||||||||||||
Three Months Ended |
Six Months Ended |
|||||||||||||||
June 30, |
June 30, |
|||||||||||||||
2019 |
2018 |
2019 |
2018 |
|||||||||||||
Revenues: |
||||||||||||||||
Lease revenue - UHS facilities (a.) |
$ |
5,651 |
$ |
5,619 |
$ |
11,444 |
$ |
11,354 |
||||||||
Lease revenue- Non-related parties |
13,178 |
12,392 |
25,909 |
24,899 |
||||||||||||
Other revenue - UHS facilities |
209 |
75 |
422 |
137 |
||||||||||||
Other revenue - Non-related parties |
288 |
2,025 |
663 |
2,260 |
||||||||||||
19,326 |
20,111 |
$ |
38,438 |
$ |
38,650 |
|||||||||||
Expenses: |
||||||||||||||||
Depreciation and amortization |
6,426 |
6,111 |
13,134 |
12,398 |
||||||||||||
Advisory fees to UHS |
982 |
948 |
1,952 |
1,852 |
||||||||||||
Other operating expenses |
5,330 |
5,445 |
10,540 |
10,653 |
||||||||||||
12,738 |
12,504 |
25,626 |
24,903 |
|||||||||||||
Income before equity in income of unconsolidated limited liability companies ("LLCs"), interest expense, hurricane insurance recovery proceeds and gain |
6,588 |
7,607 |
12,812 |
13,747 |
||||||||||||
Equity in income of unconsolidated LLCs |
454 |
425 |
884 |
854 |
||||||||||||
Hurricane insurance recovery proceeds in excess of damaged property write-downs |
- |
- |
- |
4,535 |
||||||||||||
Hurricane business interruption insurance recovery proceeds |
- |
194 |
- |
1,162 |
||||||||||||
Gain on sale of land |
- |
- |
250 |
- |
||||||||||||
Interest expense, net |
(2,781) |
(2,421) |
(5,473) |
(4,889) |
||||||||||||
Net income |
$ |
4,261 |
$ |
5,805 |
$ |
8,473 |
$ |
15,409 |
||||||||
Basic and diluted earnings per share |
$ |
0.31 |
$ |
0.42 |
$ |
0.62 |
$ |
1.12 |
||||||||
Weighted average number of shares outstanding - Basic |
13,730 |
13,720 |
13,729 |
13,719 |
||||||||||||
Weighted average number of shares outstanding - Diluted |
13,749 |
13,720 |
13,748 |
13,719 |
||||||||||||
(a.) Includes bonus rental on UHS hospital facilities of $1,352 and $1,204 for the three-month periods ended June 30, 2019 and 2018, respectively, and $2,746 and $2,530 for the six-month periods ended June 30, 2019 and 2018, respectively. |
Universal Health Realty Income Trust |
||||||||||||||||
Schedule of Non-GAAP Supplemental Information ("Supplemental Schedule") |
||||||||||||||||
For the Three Months Ended June 30, 2019 and 2018 |
||||||||||||||||
(in thousands, except per share amounts) |
||||||||||||||||
(unaudited) |
||||||||||||||||
Calculation of Adjusted Net Income |
||||||||||||||||
Three Months Ended |
Three Months Ended |
|||||||||||||||
June 30, 2019 |
June 30, 2018 |
|||||||||||||||
Amount |
Per Diluted Share |
Amount |
Per Diluted Share |
|||||||||||||
Net income |
$ |
4,261 |
$ |
0.31 |
$ |
5,805 |
$ |
0.42 |
||||||||
Adjustments: |
||||||||||||||||
Subtotal adjustments to net income |
- |
- |
- |
- |
||||||||||||
Adjusted net income |
$ |
4,261 |
$ |
0.31 |
$ |
5,805 |
$ |
0.42 |
||||||||
Calculation of Funds From Operations ("FFO") |
||||||||||||||||
Three Months Ended |
Three Months Ended |
|||||||||||||||
June 30, 2019 |
June 30, 2018 |
|||||||||||||||
Amount |
Per Diluted Share |
Amount |
Per Diluted Share |
|||||||||||||
Net income |
$ |
4,261 |
$ |
0.31 |
$ |
5,805 |
$ |
0.42 |
||||||||
Plus: Depreciation and amortization expense: |
||||||||||||||||
Consolidated investments |
6,426 |
0.47 |
5,959 |
0.44 |
||||||||||||
Unconsolidated affiliates |
291 |
0.02 |
254 |
0.02 |
||||||||||||
FFO |
$ |
10,978 |
$ |
0.80 |
$ |
12,018 |
$ |
0.88 |
||||||||
Dividend paid per share |
$ |
0.680 |
$ |
0.670 |
Universal Health Realty Income Trust |
||||||||||||||||
Schedule of Non-GAAP Supplemental Information ("Supplemental Schedule") |
||||||||||||||||
For the Six Months Ended June 30, 2019 and 2018 |
||||||||||||||||
(in thousands, except per share amounts) |
||||||||||||||||
(unaudited) |
||||||||||||||||
Calculation of Adjusted Net Income |
||||||||||||||||
Six Months Ended |
Six Months Ended |
|||||||||||||||
June 30, 2019 |
June 30, 2018 |
|||||||||||||||
Amount |
Per Diluted Share |
Amount |
Per Diluted Share |
|||||||||||||
Net income |
$ |
8,473 |
$ |
0.62 |
$ |
15,409 |
$ |
1.12 |
||||||||
Adjustments: |
||||||||||||||||
Less: Hurricane insurance recovery proceeds in excess of damaged property write-downs |
- |
- |
(4,535) |
(0.33) |
||||||||||||
Less: Gain on sale of land |
(250) |
(0.02) |
- |
- |
||||||||||||
Subtotal adjustments to net income |
(250) |
(0.02) |
(4,535) |
(0.33) |
||||||||||||
Adjusted net income |
$ |
8,223 |
$ |
0.60 |
$ |
10,874 |
$ |
0.79 |
||||||||
Calculation of Funds From Operations ("FFO") |
||||||||||||||||
Six Months Ended |
Six Months Ended |
|||||||||||||||
June 30, 2019 |
June 30, 2018 |
|||||||||||||||
Amount |
Per Diluted Share |
Amount |
Per Diluted Share |
|||||||||||||
Net income |
$ |
8,473 |
$ |
0.62 |
$ |
15,409 |
$ |
1.12 |
||||||||
Plus: Depreciation and amortization expense: |
||||||||||||||||
Consolidated investments |
13,134 |
0.96 |
12,110 |
0.88 |
||||||||||||
Unconsolidated affiliates |
574 |
0.04 |
525 |
0.04 |
||||||||||||
Less: Hurricane insurance recovery proceeds in excess of damaged property write-downs |
- |
- |
(4,535) |
(0.33) |
||||||||||||
Gain on sale of land |
(250) |
(0.02) |
- |
- |
||||||||||||
FFO |
$ |
21,931 |
$ |
1.60 |
$ |
23,509 |
$ |
1.71 |
||||||||
Dividend paid per share |
$ |
1.355 |
$ |
1.335 |
Universal Health Realty Income Trust |
||||||||
Consolidated Balance Sheets |
||||||||
(dollar amounts in thousands, except share data) |
||||||||
(unaudited) |
||||||||
June 30, |
December 31, |
|||||||
2019 |
2018 |
|||||||
Assets: |
||||||||
Real Estate Investments: |
||||||||
Buildings and improvements and construction in progress |
$ |
560,089 |
$ |
557,650 |
||||
Accumulated depreciation |
(183,857) |
(173,316) |
||||||
376,232 |
384,334 |
|||||||
Land |
53,396 |
53,396 |
||||||
Net Real Estate Investments |
429,628 |
437,730 |
||||||
Investments in limited liability companies ("LLCs") |
4,962 |
5,019 |
||||||
Other Assets: |
||||||||
Cash and cash equivalents |
6,072 |
5,036 |
||||||
Base and bonus rent and other receivables from UHS |
2,806 |
2,739 |
||||||
Rent receivable - other |
7,070 |
7,469 |
||||||
Intangible assets (net of accumulated amortization of $24.7 million and $27.6 million, respectively) |
15,754 |
17,407 |
||||||
Right-of-use land assets |
8,862 |
- |
||||||
Deferred charges and other assets, net |
7,597 |
8,356 |
||||||
Total Assets |
$ |
482,751 |
$ |
483,756 |
||||
Liabilities: |
||||||||
Line of credit borrowings |
$ |
191,550 |
$ |
196,400 |
||||
Mortgage notes payable, non-recourse to us, net |
61,562 |
64,881 |
||||||
Accrued interest |
422 |
450 |
||||||
Accrued expenses and other liabilities |
11,139 |
11,765 |
||||||
Dividends payable |
9,354 |
- |
||||||
Ground lease liabilities |
8,862 |
- |
||||||
Tenant reserves, deposits and deferred and prepaid rents |
11,322 |
11,650 |
||||||
Total Liabilities |
294,211 |
285,146 |
||||||
Equity: |
||||||||
Preferred shares of beneficial interest, $.01 par value; 5,000,000 shares authorized; none issued and outstanding |
- |
- |
||||||
Common shares, $.01 par value; 95,000,000 shares authorized; issued and outstanding: 2019 - 13,755,930; 2018 - 13,746,803 |
138 |
137 |
||||||
Capital in excess of par value |
266,252 |
266,031 |
||||||
Cumulative net income |
650,789 |
642,316 |
||||||
Cumulative dividends |
(728,639) |
(710,006) |
||||||
Accumulated other comprehensive income |
- |
132 |
||||||
Total Equity |
188,540 |
198,610 |
||||||
Total Liabilities and Equity |
$ |
482,751 |
$ |
483,756 |
View original content:http://www.prnewswire.com/news-releases/universal-health-realty-income-trust-reports-2019-second-quarter-financial-results-300891452.html
SOURCE
Charles Boyle, Chief Financial Officer, (610) 768-3300