KING OF PRUSSIA, Pa., April 23 /PRNewswire-FirstCall/ -- Universal Health Realty Income Trust announced today that for the quarter ended March 31, 2009, net income increased 12% to $4.6 million, or $.39 per diluted share, as compared to $4.2 million, or $.35 per diluted share, during the same quarter in the prior year.
Funds from operations ("FFO") increased 10% to $8.1 million, or $.68 per diluted share, during the first quarter of 2009 as compared to $7.3 million, or $.62 per diluted share, during the comparable quarter of the prior year.
The first quarter dividend of $.59 per share was paid on March 31, 2009. At March 31, 2009, our shareholders' equity was $142.5 million and our liabilities for borrowed funds were $83.5 million, including mortgage debt of consolidated entities, which is non-recourse to us, totaling $34.8 million.
During the first quarter of 2009, construction was completed and we opened the Summerlin Hospital Medical Office Building III, a multi-tenant medical office building ("MOB") located in Las Vegas, Nevada, on the campus of an acute care hospital owned and operated by a subsidiary of Universal Health Services, Inc. ("UHS"). In addition, as of March 31, 2009, construction continued on two MOBs, which are owned by LLCs in which we hold non-controlling majority ownership interests, as follows: (i) Deer Valley Medical Office Building III located in Phoenix, Arizona, which was completed and opened in early April, 2009, and; (ii) Auburn Medical Office Building II located in Auburn, Washington, on the campus of an acute care hospital owned and operated by a wholly-owned subsidiary of UHS, which is scheduled to be completed and opened during the fourth quarter of 2009.
Universal Health Realty Income Trust, a real estate investment trust, invests in healthcare and human service related facilities including acute care hospitals, behavioral healthcare facilities, rehabilitation hospitals, sub-acute care facilities, surgery centers, childcare centers and medical office buildings. We have forty-nine real estate investments in fifteen states.
Funds from operations is a widely recognized measure of performance for Real Estate Investment Trusts ("REITs"). We believe that funds from operations and funds from operations per diluted share, which are non-GAAP financial measures ("GAAP" is Generally Accepted Accounting Principles in the United States of America), are helpful to our investors as measures of our operating performance. We compute FFO in accordance with standards established by the National Association of Real Estate Investment Trusts ("NAREIT"), which may not be comparable to FFO reported by other REITs that do not compute FFO in accordance with the NAREIT definition, or that interpret the NAREIT definition differently than we interpret the definition. FFO does not represent cash generated from operating activities in accordance with GAAP and should not be considered to be an alternative to net income determined in accordance with GAAP. In addition, FFO should not be used as: (i) an indication of our financial performance determined in accordance with GAAP; (ii) an alternative to cash flow from operating activities determined in accordance with GAAP; (iii) a measure of our liquidity, or; (iv) an indicator of funds available for our cash needs, including our ability to make cash distributions to shareholders. A reconciliation of our reported net income to FFO is shown below.
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 Securities and Exchange Commission including our Report on Form 10-K for the year ended December 31, 2008. Since the items included or excluded from these measures are significant components in understanding and assessing financial performance under GAAP, these measures should not be considered to be alternatives to net income as a measure of our operating performance or profitability. Since these measures, as presented, are not determined in accordance with GAAP and are thus susceptible to varying calculations, they may not be comparable to other similarly titled measures of other companies. Investors are encouraged to use GAAP measures when evaluating our financial performance.
The matters discussed in this report, as well as the news releases issued from time to time by us, include certain statements containing the words "believes", "anticipates", "intends", "expects" and words of similar import, which constitute "forward-looking statements" within the meaning of Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements or industry results to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Readers should not place undue reliance on such forward-looking statements which reflect management's view only as of the date hereof. We undertake no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.
Universal Health Realty Income Trust Consolidated Statements of Income For the Three Months Ended March 31, 2009 and 2008 (amounts in thousands, except per share amounts) (unaudited) Three Months Ended March 31, --------------- 2009 2008 ---- ---- Revenues: Base rental - UHS facilities $3,460 $3,062 Base rental - Non-related parties 2,576 2,397 Bonus rental - UHS facilities 1,095 1,008 Tenant reimbursements and other - Non-related parties 714 488 Tenant reimbursements and other - UHS facilities 35 24 -- -- 7,880 6,979 ----- ----- Expenses: Depreciation and amortization 1,538 1,406 Advisory fees to UHS 390 367 Other operating expenses 1,506 1,135 ----- ----- 3,434 2,908 ----- ----- Income before equity in income of unconsolidated limited liability companies ("LLCs") and interest expense 4,446 4,071 Equity in income of unconsolidated LLCs 807 612 Interest expense, net (607) (525) ------ ------ Net income $4,646 $4,158 ====== ====== ----- ----- Basic earnings per share $0.39 $0.35 ===== ===== ----- ----- Diluted earnings per share $0.39 $0.35 ===== ===== Weighted average number of shares outstanding - Basic 11,860 11,843 Weighted average number of share equivalents 12 38 -- -- Weighted average number of shares and equivalents outstanding - Diluted 11,872 11,881 ====== ====== Calculation of Funds From Operations ("FFO"): Three Months Ended March 31, --------------- 2009 2008 ---- ---- Net income $4,646 $4,158 Plus: Depreciation and amortization expense: Consolidated investments 1,515 1,388 Unconsolidated affiliates 1,930 1,787 ----- ----- Funds from operations (FFO) $8,091 $7,333 ====== ====== Funds from operations (FFO) per share - Basic $0.68 $0.62 ===== ===== Funds from operations (FFO) per share - Diluted $0.68 $0.62 ===== ===== Dividend paid per share $0.590 $0.580 ====== ====== Universal Health Realty Income Trust Consolidated Balance Sheets (dollar amounts in thousands) (unaudited) March 31, December 31, Assets: 2009 2008 ------- ---- ---- Real Estate Investments: Buildings and improvements $203,719 $191,761 Accumulated depreciation (67,736) (66,255) ------- ------- 135,983 125,506 Land 19,348 19,348 Construction in progress - 9,795 --- ----- Net Real Estate Investments 155,331 154,649 ------- ------- Investments in and advances to limited liability companies ("LLCs") 63,388 56,462 Other Assets: Cash and cash equivalents 1,530 618 Base and bonus rent receivable from UHS 2,104 1,982 Rent receivable - other 867 945 Deferred charges, notes receivable and intangible and other assets, net 6,318 6,400 ----- ----- Total Assets $229,538 $221,056 ======== ======== Liabilities: ------------ Line of credit borrowings $48,700 $39,000 Mortgage notes payable, non- recourse to us 6,838 6,892 Mortgage, construction and other loans payable of consolidated LLCs, non-recourse to us 27,951 25,800 Accrued interest 124 190 Accrued expenses and other liabilities 2,306 3,196 Tenant reserves, escrows, deposits and prepaid rents 948 883 --- --- Total Liabilities 86,867 75,961 ------ ------ 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: 2009 - 11,868,159 2008 -11,865,919 119 119 Capital in excess of par value 189,254 189,347 Cumulative net income 343,364 338,718 Cumulative dividends (390,257) (383,256) -------- -------- Total Universal Health Realty Income Trust Shareholders' Equity 142,480 144,928 Third-party equity interests 191 167 --- --- Total Equity 142,671 145,095 ------- ------- Total Liabilities and Equity $229,538 $221,056 ======== ========
Universal Health Realty Income Trust
CONTACT: Charles Boyle, Chief Financial Officer of Universal Health
Realty Income Trust, +1-610-768-3300
