Universal Health Realty Income Trust (UHT) Bundle
An Overview of Universal Health Realty Income Trust (UHT)
General Summary of Universal Health Realty Income Trust (UHT)
Universal Health Realty Income Trust (UHT) is a real estate investment trust (REIT) founded in 1986. The company primarily invests in healthcare and human-service related facilities, including acute care hospitals, behavioral health 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.
In the fiscal year 2024, UHT reported total revenue of $74.37 million, an increase from $71.26 million in 2023. The company’s primary revenue sources include:
- Lease revenue from UHS facilities: $25.37 million
- Lease revenue from non-related parties: $43.19 million
- Other revenue: $1.74 million
These figures reflect UHT's strong market presence and commitment to providing quality healthcare facilities.
Company's Financial Performance in the Latest Financial Reports
For the third quarter of 2024, Universal Health Realty Income Trust 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 same period of 2023. The increase in net income was attributed to a rise in income generated from various properties, offset by increased interest expenses.
For the nine-month period ended September 30, 2024, UHT reported:
- Net income: $14.57 million, or $1.05 per diluted share, compared to $11.81 million, or $0.85 per diluted share in the prior year.
- Funds from operations (FFO): $36.12 million, or $2.61 per diluted share, up from $33.19 million, or $2.40 per diluted share in 2023.
The company declared a third-quarter dividend of $0.73 per share, totaling $10.1 million, reflecting UHT's continued commitment to returning value to shareholders.
| Metric | Q3 2024 | Q3 2023 | 9-Months 2024 | 9-Months 2023 |
|---|---|---|---|---|
| Net Income | $4.00 million | $3.90 million | $14.57 million | $11.81 million |
| Earnings Per Share | $0.29 | $0.28 | $1.05 | $0.85 |
| Funds From Operations (FFO) | $11.32 million | $11.19 million | $36.12 million | $33.19 million |
| Dividend Declared | $0.73 | $0.72 | $2.18 | $2.16 |
Introduction to Company as a Leader in the Industry
Universal Health Realty Income Trust is recognized as a leader in the healthcare REIT sector. Its strategic investments in high-quality healthcare facilities position UHT as a vital player in the industry. The company benefits from a diversified portfolio and a stable revenue stream generated from long-term leases with reputable healthcare providers. UHT's commitment to operational excellence and shareholder value creation further solidifies its leadership role in the real estate investment trust market.
Mission Statement of Universal Health Realty Income Trust (UHT)
Mission Statement Overview
The Mission Statement of Universal Health Realty Income Trust (UHT) serves as a foundational guideline for the company's long-term goals and operational strategies. It reflects the commitment to providing high-quality healthcare facilities while generating sustainable returns for investors. UHT emphasizes its role in the healthcare sector, focusing on real estate investments that contribute to the wellness of the communities it serves.
Core Component 1: Commitment to Quality Healthcare Facilities
UHT's mission underscores a strong commitment to quality healthcare facilities. The company invests in a diversified portfolio that includes acute care hospitals, behavioral health care facilities, and medical office buildings. As of September 30, 2024, UHT had investments in 76 properties across 21 states, highlighting its expansive reach and dedication to supporting healthcare infrastructure.
| Property Type | Number of Properties | States Covered |
|---|---|---|
| Acute Care Hospitals | 25 | 12 |
| Behavioral Health Facilities | 10 | 5 |
| Medical Office Buildings | 30 | 15 |
| Specialty Facilities | 11 | 6 |
Core Component 2: Sustainable Returns for Investors
UHT's mission statement also emphasizes the importance of generating sustainable returns for its investors. In the first nine months of 2024, UHT reported a net income of $14.6 million, or $1.05 per diluted share, up from $11.8 million, or $0.85 per diluted share in the same period of 2023. This represents a solid increase of 23.7% year-over-year, showcasing the company's effective management and growth strategy.
| Financial Metric | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Net Income | $14.6 million | $11.8 million |
| Earnings per Share | $1.05 | $0.85 |
| Funds from Operations (FFO) | $36.1 million | $33.2 million |
| FFO per Diluted Share | $2.61 | $2.40 |
Core Component 3: Community Wellness and Support
UHT’s mission statement reflects its commitment to community wellness through strategic investments in healthcare properties. The company focuses on enhancing the quality of care available to communities, as evidenced by its recent project, Sierra Medical Plaza I, which is a 86,000 square foot medical office building completed in March 2023. This facility is strategically located on the campus of the Northern Nevada Sierra Medical Center, contributing to local healthcare accessibility.
| Project Name | Type | Completion Date | Annual Rent |
|---|---|---|---|
| Sierra Medical Plaza I | Medical Office Building | March 2023 | $1.3 million |
Vision Statement of Universal Health Realty Income Trust (UHT)
Vision Statement Overview
The vision statement of Universal Health Realty Income Trust (UHT) for 2024 emphasizes a commitment to enhancing healthcare infrastructure and providing high-quality real estate solutions for healthcare providers. This vision reflects the company's dedication to sustainable growth and the well-being of communities served by their facilities.
Enhancing Healthcare Infrastructure
UHT aims to be a leader in the healthcare real estate sector by investing in state-of-the-art healthcare facilities. As of September 30, 2024, UHT has investments in 76 properties across 21 states, highlighting their extensive reach and commitment to improving healthcare access. The total real estate investments were valued at approximately $654.2 million, with net real estate investments after depreciation reported at $430.2 million.
Commitment to Quality
UHT's vision includes a strong focus on maintaining the highest quality standards in their properties. The company reported lease revenues of $74.4 million for the nine months ending September 30, 2024, which reflects a solid demand for their facilities. This revenue is primarily generated from healthcare facilities operated by Universal Health Services (UHS), which underscores the quality of their investment portfolio.
Community Impact
A key component of UHT's vision is the positive impact on the communities they serve. The company is dedicated to enhancing the patient experience by providing modern and accessible healthcare facilities. The construction of the Sierra Medical Plaza I, a new 86,000 square foot medical office building completed in March 2023, exemplifies this commitment. The facility is expected to generate an initial minimum rent of $1.3 million annually.
Sustainability and Growth
UHT is also focused on sustainable growth within the healthcare real estate sector. The company has increased its borrowing capacity to $425 million as of September 30, 2024, allowing for further investment in high-quality healthcare properties. This strategic financial maneuver reflects their vision of long-term growth and stability in the healthcare market.
| Financial Metrics | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Income | $4.0 million | $3.9 million | +2.6% |
| Funds from Operations (FFO) | $11.3 million | $11.2 million | +0.9% |
| Lease Revenue - UHS Facilities | $25.4 million | $24.3 million | +4.5% |
| Dividend per Share | $0.73 | $0.72 | +1.4% |
Future Aspirations
UHT's vision for the future includes expanding its portfolio and enhancing its service offerings to meet the evolving needs of healthcare providers. The company is committed to evaluating new investment opportunities that align with their mission to improve healthcare access and quality through strategic real estate investments.
Core Values of Universal Health Realty Income Trust (UHT)
Integrity
The core value of integrity at Universal Health Realty Income Trust (UHT) emphasizes transparency and ethical conduct in all business dealings. This principle is crucial as it builds trust with investors, tenants, and stakeholders.
In 2024, UHT demonstrated its commitment to integrity through rigorous financial reporting practices. For example, the company reported a net income of $14.6 million for the nine-month period ended September 30, 2024, reflecting a significant increase from $11.8 million in the same period of 2023.
Additionally, UHT maintains open communication with its shareholders, providing detailed disclosures in its quarterly earnings reports. The third quarter of 2024 saw funds from operations (FFO) reach $11.3 million, or $0.82 per diluted share, showcasing consistent operational performance.
Accountability
Accountability is a fundamental value for UHT, ensuring that the company takes responsibility for its financial and operational outcomes. This value is reflected in the management’s approach to business performance and stakeholder engagement.
In 2024, UHT increased its borrowing capacity to $425 million under its credit agreement, demonstrating proactive financial management. The company also reported a reduction in expenses related to its Chicago property, resulting in a $1.9 million improvement in net income.
UHT's commitment to accountability is further evidenced by its strategic decisions, such as the demolition of the former specialty hospital in Chicago, which incurred expenses of approximately $1.5 million. Such actions highlight UHT's focus on optimizing its asset portfolio.
Excellence
The pursuit of excellence is a core value that drives UHT to deliver high-quality services and facilities. This commitment is evident in the company’s ongoing investments in healthcare properties.
In March 2023, UHT completed the construction of the Sierra Medical Plaza I, an 86,000 square foot medical office building located in Reno, Nevada, at an estimated cost of $35 million. The lease agreement for this facility commenced in March 2023, covering approximately 68% of its rentable space.
UHT's dedication to excellence is also reflected in its financial performance, with lease revenues from UHS facilities totaling $25.4 million for the first nine months of 2024. This robust revenue generation underscores the company's focus on maintaining high standards in property management.
Innovation
Innovation is essential for UHT as it adapts to the evolving healthcare landscape. The company fosters a culture of continuous improvement and embraces new technologies to enhance operational efficiency.
In 2024, UHT entered into an interest rate swap agreement on a total notional amount of $85 million with a fixed interest rate of 3.2725%, aimed at managing interest rate exposure. This strategic financial maneuver reflects UHT's forward-thinking approach in navigating market challenges.
Furthermore, UHT continues to explore opportunities for expanding its property portfolio, currently investing in 76 properties across 21 states, which demonstrates its commitment to growth and adaptation in the healthcare real estate sector.
Collaboration
Collaboration is pivotal for UHT as it works closely with healthcare providers and stakeholders to enhance service delivery. This value promotes teamwork and partnership across various functions within the organization.
In 2024, UHT reported collaborative efforts with its tenants, resulting in lease revenues from non-related parties amounting to $43.2 million for the first nine months. Such partnerships are crucial for maintaining occupancy rates and ensuring the sustainability of revenue streams.
The company's ability to navigate complex challenges, such as the recent sale of a vacant specialty facility in Corpus Christi, Texas, further illustrates its commitment to collaboration and strategic decision-making.
| Core Value | Description | 2024 Highlights |
|---|---|---|
| Integrity | Emphasizes transparency and ethical conduct. | Net income of $14.6 million; FFO of $11.3 million. |
| Accountability | Takes responsibility for financial and operational outcomes. | Increased borrowing capacity to $425 million; $1.9 million reduction in expenses. |
| Excellence | Pursues high-quality services and facilities. | Completed Sierra Medical Plaza I; lease revenues of $25.4 million. |
| Innovation | Embraces new technologies for operational efficiency. | Entered into $85 million interest rate swap agreement. |
| Collaboration | Works closely with healthcare providers and stakeholders. | Lease revenues from non-related parties of $43.2 million. |
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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.