Universal Health Realty Income Trust Financial Performance Update

Financial Overview of Universal Health Realty Income Trust
Universal Health Realty Income Trust has recently released its financial results for the three and six-month periods. As a prominent real estate investment trust, UHT focuses on investments in healthcare facilities and related properties.
Net Income Analysis
For the three-month period, net income was reported at $4.5 million, translating to $0.32 per diluted share, representing a decline from $5.3 million or $0.38 per share during the same period the previous year. This decline reflects a reduction in income attributed to various factors affecting the operational landscape.
Contributing Factors to Net Income Variance
The decrease in net income can be attributed to several key components:
- A reduction of $563,000 or $0.04 per share due to a property tax benefit recorded in the earlier period.
- Increased interest expenses, contributing $137,000 or $0.01 per share; this was primarily a result of heightened borrowing levels.
- An overall decline of $84,000 or $0.01 per share related to decreased income across multiple properties.
Funds From Operations (FFO)
In terms of operational performance, the Funds from Operations (FFO) were $11.8 million, or $0.85 per diluted share in the latest quarter. This also indicates a decrease from the previous year’s $12.4 million or $0.90 per share, attributing the decline to the factors mentioned earlier, coupled with a $193,000 increase in depreciation and amortization expenses.
Dividends and Payout Information
UHT declared a quarterly dividend of $0.74 per share in the latest quarter, amounting to a total distribution of $10.3 million, marking a continued commitment to returning value to shareholders.
Financial Position and Capital Resources
As of the end of the reporting period, the company had $70.2 million available for borrowing from its $425 million credit facility, which is set to expire on September 30, 2028. This availability showcases the company’s financial flexibility in navigating operational demands and potential growth opportunities.
General Information About UHT
Universal Health Realty Income Trust primarily invests in healthcare facilities across the United States. As of now, UHT holds investments in 76 properties, underlining its significant market presence and strategic focus on the healthcare sector.
Frequently Asked Questions
What is the primary focus of UHT's investments?
UHT primarily invests in healthcare and human-service facilities, including hospitals, specialty care facilities, and medical office buildings.
How has UHT's net income changed in recent quarters?
The net income has decreased in the recent quarter compared to the same period last year, reflecting certain operational challenges.
What is the current dividend per share for UHT?
The current dividend per share is $0.74, demonstrating the trust's commitment to providing returns to its investors.
How much borrowing capacity does UHT currently have?
UHT has approximately $70.2 million of available borrowing capacity within its existing credit facility.
What are some factors affecting UHT's financial results?
Factors affecting financial results include property tax adjustments, interest expenses associated with borrowing, and fluctuations in income from various properties.
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