Navigation Links
Universal Health Realty Income Trust Reports 2008 Fourth Quarter and Full Year Financial Results
Date:2/27/2009

KING OF PRUSSIA, Pa., Feb. 27 /PRNewswire-FirstCall/ --

Fourth quarter of 2008 as compared to 2007:

Universal Health Realty Income Trust (NYSE: UHT) announced today that for the quarter ended December 31, 2008, its reported net loss was $870,000, or $.07 per diluted share, as compared to reported net income of $4.0 million, or $.33 per diluted share, during the comparable quarter in the prior year. Included in net income during the three and twelve-month periods ended December 31, 2008 is an asset impairment charge of $4.6 million, or $.39 per diluted share, recorded in connection with a medical office building complex located in Riverdale, Georgia, as discussed below. Also unfavorably impacting our net income/loss during the three and twelve-month periods of 2008 was an increase in other operating expenses, including higher than anticipated building maintenance and repairs expense at one of our medical office buildings amounting to $250,000, or $.02 per diluted share.

After adjusting for the asset impairment charge, as indicated on the attached Supplemental Schedule of Adjusted Income from Continuing Operations and Net Income ("Supplemental Schedule"), our adjusted net income during the fourth quarter of 2008 was $3.7 million, or $.31 per diluted share.

During the fourth quarter of 2008, our funds from operations ("FFO"), as adjusted for the impact of the asset impairment, increased 2% to $7.2 million, or $.61 per diluted share, as compared to $7.0 million, or $.59 per diluted share, during the comparable quarter of 2007.

The fourth quarter dividend of $.59 per share was paid on December 31, 2008. At December 31, 2008, our shareholders' equity was $144.9 million and our liabilities for borrowed funds were $71.7 million, including mortgage and other debt of consolidated entities, which is non-recourse to us, totaling $32.7 million.

Provision for asset impairment:

During the fourth quarter of 2008, we recorded an asset impairment charge of $4.6 million on two medical office buildings located on a medical campus in Clayton County (Riverdale), Georgia. This asset impairment charge was recorded after evaluation of property and location-specific factors including: (i) the future expiration of a master lease which is scheduled to occur in June, 2010; (ii) the current and projected occupancy of the buildings, and; (iii) the anticipated unfavorable impact on the region and the properties resulting from the loss of the school district's accreditation during 2008.

Twelve months of 2008 as compared to 2007:

For the year ended December 31, 2008, reported net income was $11.7 million, or $.98 per diluted share, as compared to $22.2 million, or $1.87 per diluted share, during 2007. Reported income from continuing operations for the year ended December 31, 2008 was $11.7 million, or $.98 per diluted share, as compared to $19.7 million, or $1.66 per diluted share, during 2007. Included in our reported net income and income from continuing operations during the year ended December 31, 2007 were various gains, as discussed below and as indicated on the Supplemental Schedule.

Adjusted net income for the year ended December 31, 2008 was $16.2 million, or $1.37 per diluted share, as compared to $17.9 million, or $1.51 per diluted share, during 2007. The decrease in adjusted net income and adjusted net income per diluted share during the year ended December 31, 2008, as compared to 2007, was primarily attributable to additional depreciation expense recorded in connection with our properties (including unconsolidated LLCs), including newly constructed properties that were completed and opened during 2007 and 2008.

For the year ended December 31, 2008, our FFO, as adjusted for the impact of the asset impairment, increased 2% to $29.6 million, or $2.49 per diluted share, as compared to $29.1 million, or $2.45 per diluted share, during 2007.

Favorably impacting net income during the twelve-month period ended December 31, 2007 was a combined gain of $4.3 million, or $.36 per diluted share, consisting of: (i) a gain of $2.3 million, or $.19 per diluted share, realized on the sale of a medical office building (included in income from discontinued operations); (ii) a gain of $1.7 million, or $.15 per diluted share, related to the recovery of replacement real estate assets in connection with the previously disclosed Chalmette Medical Center asset exchange and substitution transaction, and; (iii) a gain of $264,000, or $.02 per diluted share, resulting from the sale of real property by an unconsolidated LLC.

Acquisitions and newly constructed properties:

During 2008, we acquired or completed construction and opened several properties including the following: (i) purchased the Kindred Hospital; Corpus Christi, a sub-acute care hospital located in Corpus Christi, Texas; (ii) purchased the Vista Medical Terrace and The Sparks Medical Building located in Sparks, Nevada, consisting of two medical office buildings ("MOBs") located on the campus of Northern Nevada Medical Center, an acute care hospital owned and operated by a wholly-owned subsidiary of Universal Health Services, Inc. ("UHS"), and; (iii) completed and opened the newly constructed Palmdale Medical Plaza in Palmdale, California, a MOB located on the campus of an acute care hospital currently under construction by a wholly-owned subsidiary of UHS.

As of December 31, 2008, construction continued on three MOBs, which are owned by LLCs in which we hold non-controlling majority ownership interests, as follows: (i) Summerlin Hospital Medical Office Building III located in Las Vegas, Nevada, on the campus of an acute care hospital owned and operated by a wholly-owned subsidiary of UHS, which was completed and opened during the first quarter of 2009; (ii) Deer Valley Medical Office Building III located in Phoenix, Arizona, which is scheduled to be completed and opened during the first quarter of 2009, and; (iii) 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.

General Information, Forward-Looking Statements and Non-GAAP Financial Measures:

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 or commitments in fifteen states.

We believe that funds from operations, adjusted income from continuing operations, adjusted income from continuing operations per diluted share, adjusted net income and adjusted net income 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. In addition, we believe that comparing and discussing our financial results based on these measures, as calculated, is helpful to our investors since it neutralizes the effect in each year of items that are nonrecurring or non-operational in nature including items such as, but not limited to, provisions for asset impairments and gains on sales of assets. Funds from operations, is a widely recognized measure of REIT performance. We compute FFO in accordance with standards established by the National Association of Real Estate Investment Trusts ("NAREIT"), except for the adjustments made to the 2008 periods presented to neutralize the impact of the provision for asset impairment, 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) as an alternative to cash flow from operating activities determined in accordance with GAAP; (iii) as a measure of our liquidity; (iv) nor is FFO 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-Q for the quarter ended September 30, 2008 and Report on Form 10-K for the year ended December 31, 2007. 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 and Twelve Months Ended December 31,
                                  2008 and 2007
                 (amounts in thousands, except per share amounts)
                                   (unaudited)

                                             Three Months      Twelve Months
                                                 Ended             Ended
                                              December 31,      December 31,
                                              2008    2007     2008     2007
    Revenues:
      Base rental - UHS facilities          $3,323  $3,062  $12,828  $12,244
      Base rental - Non-related parties      2,537   2,319    9,936    9,352
      Bonus rental - UHS facilities            974     960    3,943    3,958
      Tenant reimbursements and other - Non-
       related parties                         683     579    2,352    2,293
      Tenant reimbursements and other - UHS
       facilities                               25      13      125      113
                                             7,542   6,933   29,184   27,960

    Expenses:
      Depreciation and amortization          1,532   1,373    5,904    5,209
      Advisory fees to UHS                     416     363    1,567    1,425
      Other operating expenses               1,630   1,183    5,146    4,482
      Provision for asset impairment         4,575       -    4,575        -
                                             8,153   2,919   17,192   11,116

    Income/(loss) before equity in income of
     unconsolidated limited
     liability companies ("LLCs"),
     property damage recovered from UHS
     (Chalmette) and interest expense         (611)  4,014   11,992   16,844


      Equity in income of unconsolidated LLCs
       (including recognition of gain
       on sale of real
       property of $264 during the twelve
       months ended December 31, 2007)         444     481    2,052    2,821

    Replacement property recovered from
     UHS - Chalmette                             -       -        -    1,748


    Interest expense, net                     (703)   (516)  (2,391)  (1,749)

    Income/(loss) from continuing
     operations                               (870)  3,979   11,653   19,664

    Income from discontinued operations, net
     (including gain on sale of real
     property of
     $2,270 during the twelve months ended
     December 31, 2007)                          -       -        -    2,527

    Net income/(loss)                        ($870) $3,979  $11,653  $22,191

    Basic earnings/(loss) per share:
       From continuing operations           ($0.07)  $0.34    $0.98    $1.66
       From discontinued operations          $0.00   $0.00    $0.00    $0.21
          Total basic earnings/(loss) per
           share                            ($0.07)  $0.34    $0.98    $1.87

    Diluted earnings/(loss) per share:
       From continuing operations           ($0.07)  $0.33    $0.98    $1.66
       From discontinued operations          $0.00   $0.00    $0.00    $0.21
          Total diluted earnings/(loss) per
           share                            ($0.07)  $0.33    $0.98    $1.87

    Weighted average number of shares
     outstanding - Basic                    11,857  11,839   11,851   11,818
    Weighted average number of share
     equivalents                                13      40       31       57
    Weighted average number of shares and
     equivalents outstanding - Diluted      11,870  11,879   11,882   11,875



    Calculation of Funds From Operations ("FFO"), as adjusted for the impact
     of asset impairment:

                                             Three Months      Twelve Months
                                                 Ended             Ended
                                              December 31,      December 31,
                                              2008    2007     2008     2007

    Net income/(loss)                        ($870) $3,979  $11,653  $22,191

    Plus:  Depreciation and amortization expense:
                  Consolidated investments   1,518   1,361    5,832    5,167
                  Unconsolidated affiliates  1,979   1,716    7,511    5,990
           Provision for asset impairment    4,575       -    4,575        -
    Less: Gain on sale of real property -
     discontinued operations                     -       -        -   (2,270)
          Gain on LLC's sale of real
           property                              -     (12)       -     (264)
          Gain on asset exchange and
           substitution agreement with UHS -
           Chalmette                             -       -        -   (1,748)
          Funds from operations  (FFO)       $7,202  $7,044  $29,571  $29,066

          Funds from operations (FFO) per share -
            Basic                            $0.61   $0.59    $2.50    $2.46
          Funds from operations (FFO) per share -
            Diluted                          $0.61   $0.59    $2.49    $2.45

          Dividend paid per share           $0.590  $0.580   $2.340   $2.300



                       Universal Health Realty Income Trust
     Supplemental Schedule of Adjusted Income from Continuing Operations and
                       Net Income ("Supplemental Schedule")
         For the Three and Twelve Months Ended December 31, 2008 and 2007
                 (amounts in thousands, except per share amounts)
                                   (unaudited)


                                  Three Months             Three Months
                                      ended                   ended
                                December 31, 2008        December 31, 2007
                                            Per                     Per
                               Amount  Diluted Share   Amount  Diluted Share

      Reported income/(loss)
       from continuing
       operations and net
       income/(loss)            ($870)        ($0.07)  $3,979          $0.33
        Adjustments:
          Provision for asset
           impairment           4,575           0.39        -              -

      Adjusted income from
       continuing operations
       and net income          $3,705          $0.31   $3,979          $0.33


                                  Twelve Months            Twelve Months
                                      ended                   ended
                                December 31, 2008        December 31, 2007
                                            Per                     Per
                               Amount  Diluted Share   Amount  Diluted Share

      Reported net income/loss
       from continuing
       operations             $11,653          $0.98  $19,664          $1.66
        Adjustments:
          Provision for asset
           impairment           4,575           0.39        -              -
          Gain on LLC's sale of
           real property            -              -     (264)         (0.02)
          Gain on asset exchange
           and substitution
           agreement with UHS -
           Chalmette                -              -   (1,748)         (0.15)

      Adjusted net income from
       continuing operations  $16,228          $1.37  $17,652          $1.49

     Reported net income      $11,653          $0.98  $22,191          $1.87
        Adjustments:
          Provision for asset
           impairment           4,575           0.39        -              -
          Gain on LLC's sale of
           real property            -              -     (264)         (0.02)
          Gain on asset exchange
           and substitution
           agreement with UHS -
           Chalmette                -              -   (1,748)         (0.15)
          Gain on sale of real
           property - discontinued
           operations               -              -   (2,270)         (0.19)

      Adjusted net income     $16,228          $1.37  $17,909          $1.51



                   Universal Health Realty Income Trust
                       Consolidated Balance Sheets
                      (dollar amounts in thousands)
                               (unaudited)


                                            December 31,  December 31,
    Assets:                                     2008          2007

    Real Estate Investments:
      Buildings and improvements              $191,761      $178,655
      Accumulated depreciation                 (66,255)      (60,627)
                                               125,506       118,028
      Land                                      19,348        18,258
      Construction in progress                   9,795         7,511
          Net Real Estate Investments          154,649       143,797

      Investments in and advances to
       limited liability companies
       ("LLCs")                                 56,462        52,030

    Other Assets:
      Cash and cash equivalents                    618         1,131
      Base and bonus rent receivable
       from UHS                                  1,982           960
      Rent receivable - other                      945           746
      Deferred charges, notes receivable
       and intangible and other assets,
       net                                       6,400         1,085
                  Total Assets                $221,056      $199,749

    Liabilities and Shareholders' Equity:

    Liabilities:
      Line of credit borrowings                $39,000       $16,800
      Mortgage notes payable, non-
       recourse to us                            6,892         3,717
      Mortgage, construction and other loans
       payable of consolidated LLCs,
       non-recourse to us                       25,800        16,100
      Accrued interest                             190           125
      Accrued expenses and other
       liabilities                               3,196         1,874
      Tenant reserves, escrows, deposits
       and prepaid rents                           883           741
               Total Liabilities                75,961        39,357

      Minority interests                           167            87

    Shareholders' 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: 2008 - 11,865,919
            2007 -11,841,938                       119           118
      Capital in excess of par value           189,347       188,638
      Cumulative net income                    338,718       327,065
      Cumulative dividends                    (383,256)     (355,516)
           Total Shareholders' Equity          144,928       160,305
                         Total Liabilities and
                          Shareholders'
                          Equity              $221,056      $199,749


'/>"/>
SOURCE Universal Health Realty Income Trust
Copyright©2009 PR Newswire.
All rights reserved


Related medicine news :

1. CWA Commends Obama Administration Steps Toward Universal Health Care
2. Universal Health Services, Inc. Reports Significant Increases in 2008 Fourth Quarter and Full Year Earnings from Continuing Operations Per Diluted Share and Reports 2009 Guidance
3. Universal Health Services, Inc. Announces Dividend
4. Does universal health care affect attitude toward dementia?
5. Universal Benefit Plans and Universal Dental Plan Announce Joint Outreach Initiative to Aid Massachusetts Nonprofits
6. Universal Music Enterprises (UMe) and Body By Jake Global Create the Worlds First Digital Fitness Music Label
7. UT public health policy expert says US can learn from Dutch universal health-care coverage
8. UT public health policy expert says US can learn from Dutch universal healthcare coverage
9. Universal Health Realty Income Trust Announces Marc D. Miller Appointed to Board of Trustees and Dividend Increase
10. Universal American Announces New Patient Care Program
11. Universal Testing, Prompt Treatment Could Slash HIV
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:6/27/2016)... ... , ... TherapySites, the leading website and online ... Counseling Association. This new relationship allows TherapySites to continue to extend their ... benefits and promotional offers. , "TCA is extremely excited about this new partnership, ...
(Date:6/27/2016)... ... June 27, 2016 , ... A ... revolutionize the emergency ambulance transport experience for the millions of people who require ... has disrupted the taxi industry through the use of technology. Now, SmartEMS has ...
(Date:6/26/2016)... ... ... Quality metrics are proliferating in cancer care, and are derived from many of ... beholder, according to experts who offered insights and commentary in the current issue of ... full issue, click here . , For the American Society of Clinical Oncology ...
(Date:6/26/2016)... ... June 26, 2016 , ... Pixel Film Studios Released ProSlice Levels, ... editors can give their videos a whole new perspective by using the title ... Pixel Film Studios. , ProSlice Levels contains over 30 Different presets to choose ...
(Date:6/26/2016)... ... ... blind and certified personal trainer is helping to develop a weight loss fitness plan that ... the two major problems leading the fitness industry today:, , All ... They don’t eliminate all the reasons people quit their exercise program , ...
Breaking Medicine News(10 mins):
(Date:6/23/2016)... Bracket , a leading clinical trial technology ... outcomes platform, Bracket eCOA (SM) 6.0, at the 52 ... 30, 2016 in Philadelphia , Pennsylvania.  A ... product of its kind to fully integrate with RTSM, will ... 6.0 is a flexible platform for electronic clinical outcomes assessments ...
(Date:6/23/2016)... Colombia , June 23, 2016  Astellas today announced the establishment of Astellas Farma Colombia (AFC), a new ... affiliate in Latin America . ... ... ... ...
(Date:6/23/2016)... June 23, 2016 The vast majority of ... dialysis facility.  Treatments are usually 3 times a week, ... visit, including travel time, equipment preparation and wait time. ... especially grueling for patients who are elderly and frail.  ... nursing and rehabilitation centers for some duration of time. ...
Breaking Medicine Technology: