Universal Health Realty Income Trust Reports 2024 Financial Results for Q4 and Full Year
Universal Health Realty Income Trust's Financial Performance
Universal Health Realty Income Trust (NYSE: UHT) has recently published its financial outcomes for the fourth quarter and the full year of 2024, revealing encouraging growth across several metrics. For the three months ending December 31, 2024, the company reported a net income of $4.7 million, translating to $0.34 per diluted share. This signifies a notable rise from the net income of $3.6 million, or $0.26 per diluted share, recorded in the same quarter of the previous year.
Adjusted Net Income and Loss on Divestiture
A deeper analysis of their financial results for Q4 2023, which initially included a loss on divestiture of approximately $232,000 associated with the disposal of a vacant specialty facility in Corpus Christi, Texas, shows that when omitting this loss, the adjusted net income for Q4 2023 stands at $3.8 million, or $0.28 per diluted share. This adjusted figure provides a clearer picture of the growth achieved this year, as it reveals an increase in adjusted net income of $836,000, or $0.06 per diluted share, when compared to Q4 2023 results.
The underlying factors contributing to this increase include a substantial net gain in income from various properties amounting to $1.2 million or $0.08 per diluted share. However, this was partially counterbalanced by a rise in interest expenses, which adversely impacted earnings, lowering it by $337,000 or $0.02 per diluted share primarily due to increased borrowing costs amidst the higher interest rate environment.
Yearly Financial Overview
Over the twelve-month period ending December 31, 2024, the total net income reached $19.2 million, equating to $1.39 per diluted share. This denotes a robust increase from $15.4 million, or $1.11 per diluted share, for the full year of 2023. When adjusting for the previously mentioned loss on divestiture from 2023, the adjusted net income results in $15.6 million, or $1.13 per diluted share. The detailed growth in adjusted net income of $3.6 million, or $0.26 per diluted share, can be attributed to improvements in revenue generation at various properties totaling $3.5 million, along with a reduction in expenses tied to a property in Chicago, Illinois, which minimized costs significantly.
Funds from Operations
Funds from operations (FFO), an essential benchmark for assessing Real Estate Investment Trusts (REITs), showed an upward trend as well. For Q4 2024, FFO was reported at $11.8 million, or $0.85 per diluted share, compared to $11.4 million or $0.82 per share during the same period in 2023. This increase aligns with the improved adjusted net income.
For the entire year, FFO figures indicated a similar positive trajectory, totaling $47.9 million, or $3.46 per diluted share, as opposed to $44.6 million, $3.23 per diluted share recorded in 2023.
Dividend Information and Capital Resources
In terms of shareholder returns, a quarterly dividend of $0.735 per share was declared on November 25, 2024, amounting to a total of $10.1 million, which was subsequently distributed on December 31, 2024.
Capital resource flexibility was introduced with an amended credit agreement on September 30, 2024, which effectively raised the borrowing limit to $425 million, extending the maturity date to September 30, 2028. This allows for strategic financial maneuvering in light of fluctuating market conditions.
In light of these results, Universal Health Realty Income Trust remains optimistic, emphasizing its commitment to advance healthcare facilities across various locations which now involve over 76 properties in 21 states, adapting to sector trends, and seeking growth opportunities in a competitive landscape.