Universal Health Realty Income Trust (UHT) Bundle
A Brief History of Universal Health Realty Income Trust
Company Overview
Universal Health Realty Income Trust (UHT), a real estate investment trust (REIT), primarily invests in healthcare and human-service-related facilities, including acute care hospitals, specialty facilities, and medical office buildings. As of 2024, UHT owns or has investments in 76 properties across 21 states.
Financial Performance
For the three months ended September 30, 2024, UHT reported:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income | $3.997 million | $3.872 million |
| Earnings Per Share (Diluted) | $0.29 | $0.28 |
| Funds From Operations (FFO) | $11.317 million | $11.193 million |
| FFO Per Share (Diluted) | $0.82 | $0.81 |
For the nine-month period ended September 30, 2024, UHT's financial highlights include:
| Metric | 9M 2024 | 9M 2023 |
|---|---|---|
| Net Income | $14.573 million | $11.807 million |
| Earnings Per Share (Diluted) | $1.05 | $0.85 |
| Funds From Operations (FFO) | $36.115 million | $33.186 million |
| FFO Per Share (Diluted) | $2.61 | $2.40 |
Recent Developments
In March 2023, UHT completed construction of the Sierra Medical Plaza I, an 86,000 square foot medical office building in Reno, Nevada, at a total estimated cost of approximately $35 million. As of September 30, 2024, approximately $30 million of this cost had been incurred.
On September 30, 2024, UHT amended its credit agreement, increasing its borrowing capacity to $425 million and extending the maturity date to September 30, 2028. As of the same date, UHT had $347.8 million in borrowings outstanding and $77.2 million in available borrowing capacity.
Dividend Information
UHT declared a dividend of $0.73 per share for the third quarter of 2024, totaling approximately $10.1 million, which was paid on September 30, 2024.
Balance Sheet Highlights
As of September 30, 2024, UHT's balance sheet included:
| Assets | Amount |
|---|---|
| Net Real Estate Investments | $430.165 million |
| Financing Receivable from UHS | $82.921 million |
| Total Assets | $584.330 million |
Liabilities as of the same date included:
| Liabilities | Amount |
|---|---|
| Total Liabilities | $402.691 million |
Market Position
UHT continues to expand its portfolio, focusing on healthcare-related properties. The REIT's strategic investments aim to capitalize on the growing demand for healthcare services, driven by demographic trends and an aging population.
A Who Owns Universal Health Realty Income Trust (UHT)
Major Shareholders
As of 2024, the ownership structure of Universal Health Realty Income Trust (UHT) is comprised of a mix of institutional and individual investors. The following table outlines the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage | Number of Shares Owned |
|---|---|---|
| Universal Health Services, Inc. | 23.5% | 3,255,000 |
| BlackRock, Inc. | 15.4% | 2,138,000 |
| The Vanguard Group, Inc. | 10.2% | 1,413,000 |
| State Street Corporation | 9.8% | 1,354,000 |
| Dimensional Fund Advisors LP | 5.6% | 775,000 |
| Other Institutional Investors | 35.5% | 4,959,000 |
| Individual Investors | 0.0% | 0 |
Recent Trends in Ownership
The trend of ownership in UHT indicates a significant presence of institutional investors, with the top five institutions holding approximately 64.5% of total shares. This concentration reflects a stable investor base, generally associated with long-term investment strategies in real estate investment trusts (REITs).
Stock Performance and Market Capitalization
As of October 2024, UHT's stock is trading at approximately $26.00 per share, leading to a market capitalization of about $360 million. The stock has seen a year-to-date increase of approximately 12%, reflecting a resilient performance in a fluctuating market environment.
Dividend History
UHT has a consistent dividend payout history, with a dividend declared of $0.73 per share for the third quarter of 2024. The total dividends paid in 2024 are projected to be $2.18 per share, demonstrating a commitment to returning value to shareholders.
Investment Strategy
UHT primarily invests in healthcare-related facilities, including acute care hospitals, behavioral health care hospitals, specialty facilities, and medical office buildings. This focus on healthcare aligns with demographic trends favoring increased healthcare spending and the aging population in the United States.
Conclusion on Ownership Composition
The ownership of Universal Health Realty Income Trust is heavily weighted towards institutional investors, with Universal Health Services, Inc. being the largest shareholder. This structure not only supports stability in governance but also aligns with long-term growth strategies in the healthcare real estate sector.
Universal Health Realty Income Trust (UHT) Mission Statement
Universal Health Realty Income Trust (UHT) is dedicated to investing in healthcare and human service-related facilities, focusing on providing stable and growing income for its shareholders. The company aims to acquire and manage properties that are essential to the delivery of healthcare services across the United States, thereby enhancing community health outcomes while generating returns for its investors.
Financial Performance Overview
As of the third quarter of 2024, UHT reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income | $4.0 million | $3.9 million |
| Net Income per Diluted Share | $0.29 | $0.28 |
| Funds from Operations (FFO) | $11.3 million | $11.2 million |
| FFO per Diluted Share | $0.82 | $0.81 |
Revenue Streams
UHT's revenue is derived from various sources, primarily through lease agreements with healthcare facilities. For the three-month period ending September 30, 2024, the revenue breakdown was as follows:
| Revenue Source | Q3 2024 | Q3 2023 |
|---|---|---|
| Lease Revenue - UHS Facilities | $8.248 million | $8.274 million |
| Lease Revenue - Non-Related Parties | $14.342 million | $13.926 million |
| Other Revenue - UHS Facilities | $242,000 | $254,000 |
| Other Revenue - Non-Related Parties | $305,000 | $404,000 | Interest Income on Financing Leases - UHS Facilities | $1.357 million | $1.365 million |
Dividend Information
UHT has consistently provided dividends to its shareholders. The third-quarter dividend declared in 2024 was:
- Dividend per Share: $0.73
- Total Dividend Declared: $10.1 million
Capital Resources
As of September 30, 2024, UHT had significant capital resources to support its operations:
| Metric | Amount |
|---|---|
| Borrowing Capacity | $425 million |
| Outstanding Borrowings | $347.8 million |
| Available Borrowing Capacity | $77.2 million |
Property Investments
UHT's investment portfolio includes 76 properties located across 21 states, focusing on essential healthcare services including:
- Acute Care Hospitals
- Behavioral Health Care Hospitals
- Specialty Facilities
- Medical/Office Buildings
- Free-Standing Emergency Departments
- Childcare Centers
The company emphasizes on acquiring properties that not only provide financial returns but also contribute positively to the communities they serve.
How Universal Health Realty Income Trust (UHT) Works
Business Model
Universal Health Realty Income Trust (UHT) operates as a real estate investment trust (REIT) primarily focused on investing in healthcare and human-service related facilities. The trust's portfolio includes acute care hospitals, behavioral health care hospitals, specialty facilities, medical office buildings, free-standing emergency departments, and childcare centers. As of 2024, UHT has investments or commitments in seventy-six properties located in twenty-one states.
Financial Performance
For the third quarter of 2024, UHT reported a net income of $4.0 million, or $0.29 per diluted share, compared to $3.9 million, or $0.28 per diluted share, in the third quarter of 2023. The increase in net income was attributed to a rise in income generated from various properties, despite an increase in interest expenses.
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income | $4.0 million | $3.9 million |
| Earnings per Share (EPS) | $0.29 | $0.28 |
| Funds from Operations (FFO) | $11.3 million | $11.2 million |
| FFO per Diluted Share | $0.82 | $0.81 |
Year-to-Date Results
For the nine-month period ended September 30, 2024, UHT reported a net income of $14.6 million, or $1.05 per diluted share, an increase from $11.8 million, or $0.85 per diluted share, during the same period in 2023. This performance was driven by increased income from properties and a reduction in expenses related to specific properties.
| Financial Metric | 9M 2024 | 9M 2023 |
|---|---|---|
| Net Income | $14.6 million | $11.8 million |
| Earnings per Share (EPS) | $1.05 | $0.85 |
| Funds from Operations (FFO) | $36.1 million | $33.2 million |
| FFO per Diluted Share | $2.61 | $2.40 |
Revenue Breakdown
UHT’s revenue is generated from lease agreements primarily with Universal Health Services, Inc. (UHS) and other non-related parties. For Q3 2024, total revenues amounted to $24.5 million, reflecting an increase from $24.2 million in Q3 2023.
| Revenue Source | Q3 2024 | Q3 2023 |
|---|---|---|
| Lease Revenue - UHS Facilities | $8.2 million | $8.3 million |
| Lease Revenue - Non-related Parties | $14.3 million | $13.9 million |
| Other Revenue - UHS Facilities | $242,000 | $254,000 |
| Other Revenue - Non-related Parties | $305,000 | $404,000 | Interest Income on Financing Leases - UHS Facilities | $1.36 million | $1.37 million |
Dividends
UHT declared a third-quarter dividend of $0.73 per share, totaling approximately $10.1 million, which was paid on September 30, 2024. This reflects a slight increase from the prior year’s dividend of $0.72 per share.
Capital Resources
As of September 30, 2024, UHT had $347.8 million in borrowings under its revolving credit agreement, with an available borrowing capacity of $77.2 million. The company entered into a credit agreement that increased its borrowing capacity to $425 million and extended the maturity date to September 30, 2028.
| Capital Metrics | Amount |
|---|---|
| Total Borrowings | $347.8 million |
| Available Borrowing Capacity | $77.2 million |
| Credit Agreement Capacity | $425 million |
| Maturity Date | September 30, 2028 |
Investment Portfolio
UHT's investment portfolio includes a range of properties aimed at providing stable cash flow. The total real estate investments as of September 30, 2024, amounted to approximately $654.2 million, with accumulated depreciation of about $280.9 million.
| Portfolio Metrics | Amount |
|---|---|
| Total Real Estate Investments | $654.2 million |
| Accumulated Depreciation | $280.9 million |
| Net Real Estate Investments | $373.3 million |
| Financing Receivable from UHS | $82.9 million |
How Universal Health Realty Income Trust (UHT) Makes Money
Revenue Sources
Universal Health Realty Income Trust (UHT) generates revenue primarily through lease agreements associated with healthcare facilities. The breakdown of revenues for the three and nine months ended September 30, 2024, is as follows:
| Revenue Source | Three Months Ended September 30, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) | Nine Months Ended September 30, 2024 (in thousands) | Nine Months Ended September 30, 2023 (in thousands) |
|---|---|---|---|---|
| Lease Revenue - UHS Facilities | $8,248 | $8,274 | $25,366 | $24,297 |
| Lease Revenue - Non-related Parties | $14,342 | $13,926 | $43,188 | $40,955 |
| Other Revenue - UHS Facilities | $242 | $254 | $682 | $730 |
| Other Revenue - Non-related Parties | $305 | $404 | $1,056 | $1,177 |
| Interest Income on Financing Leases - UHS Facilities | $1,357 | $1,365 | $4,077 | $4,096 |
| Total Revenue | $24,494 | $24,223 | $74,369 | $71,255 |
Expenses
UHT incurs various expenses that impact its profitability. For the same periods, expenses are detailed below:
| Expense Type | Three Months Ended September 30, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) | Nine Months Ended September 30, 2024 (in thousands) | Nine Months Ended September 30, 2023 (in thousands) |
|---|---|---|---|---|
| Depreciation and Amortization | $7,009 | $7,012 | $20,624 | $20,479 |
| Advisory Fees to UHS | $1,386 | $1,332 | $4,093 | $3,957 |
| Other Operating Expenses | $7,609 | $7,854 | $22,115 | $23,625 |
| Total Expenses | $16,004 | $16,198 | $46,832 | $48,061 |
Net Income and Funds from Operations
UHT's net income for the three and nine months ended September 30, 2024, is as follows:
| Metric | Three Months Ended September 30, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) | Nine Months Ended September 30, 2024 (in thousands) | Nine Months Ended September 30, 2023 (in thousands) |
|---|---|---|---|---|
| Net Income | $3,997 | $3,872 | $14,573 | $11,807 |
| Funds from Operations (FFO) | $11,317 | $11,193 | $36,115 | $33,186 |
Dividend Information
UHT declared a third-quarter dividend of $0.73 per share, amounting to a total of $10.1 million. The dividend history for the nine months ended September 30, 2024, is as follows:
| Period | Dividend per Share | Total Dividend Paid (in thousands) |
|---|---|---|
| Third Quarter 2024 | $0.73 | $10,100 |
| Nine Months Ended September 30, 2024 | $2.185 | $30,000 |
Capital Resources
As of September 30, 2024, UHT had $347.8 million of borrowings outstanding under its $425 million revolving credit agreement, with $77.2 million available borrowing capacity. The company also entered into a new credit agreement increasing its borrowing capacity from $375 million to $425 million, maturing in September 2028.
Property Investments
UHT has investments in various healthcare facilities across the United States, totaling 76 properties in 21 states. The aggregate cost of the Sierra Medical Plaza I is approximately $35 million, with $30 million incurred as of September 30, 2024. The lease agreement for this facility commenced in March 2023 and has a ten-year term.
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Article updated on 8 Nov 2024
Resources:
- Universal Health Realty Income Trust (UHT) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Universal Health Realty Income Trust (UHT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Universal Health Realty Income Trust (UHT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.