Universal Health Realty Income Trust (UHT) Q4 2024 earnings summary

Executive summary

• Net income for Q4 2024 was $4.7 million ($0.34/diluted share), up from $3.6 million ($0.26/diluted share) in Q4 2023, with adjusted net income rising to $3.8 million ($0.28/diluted share) after excluding a prior-year divestiture loss.

• Full-year 2024 net income reached $19.2 million ($1.39/diluted share), compared to $15.4 million ($1.11/diluted share) in 2023; adjusted net income for 2023 was $15.6 million ($1.13/diluted share).

• Funds from operations (FFO) for Q4 2024 were $11.8 million ($0.85/diluted share), up from $11.4 million ($0.82/diluted share) in Q4 2023; full-year FFO was $47.9 million ($3.46/diluted share), up from $44.6 million ($3.23/diluted share) in 2023.

Financial highlights

• Lease revenue from UHS facilities for 2024 was $33.6 million; non-related parties contributed $57.7 million.

• Depreciation and amortization expense for 2024 was $27.4 million; interest expense increased due to higher borrowing rates and outstanding balances.

• Dividend paid per share in Q4 2024 was $0.735; full-year dividend was $2.92 per share.

Outlook and guidance

• Management notes that future results may be impacted by tenant performance, healthcare industry trends, staffing shortages, regulatory changes, and macroeconomic conditions.

• Rising interest rates are expected to continue affecting borrowing costs and capital market access.