KING OF PRUSSIA, Pa.,
Feb. 24, 2022 /PRNewswire/ --
Universal Health Realty Income Trust (NYSE:UHT) announced today
that for the three-month period ended December 31, 2021, net
income was $91.6 million, or
$6.65 per diluted share, as compared
to $5.0 million, or $.36 per diluted share, during the fourth quarter
of 2020.
As reflected on the attached Schedule of Non-GAAP Supplemental
Information ("Supplemental Schedule"), our financial results for
the three-month period ended December 31,
2021 include gains of $86.0
million, or $6.24 per diluted
share, realized on the divestitures of real estate assets,
consisting of the following (additional information related to the
divestitures is discussed below): (i) the Auburn Medical Office
Building II, located in Auburn,
Washington, was divested in November, 2021 for net cash
proceeds of approximately $24.9
million, which generated a $17.6
million gain on divestiture, and; (ii) the Inland Valley
Campus of Southwest Healthcare System, which was exchanged as part
of a previously disclosed asset sale and purchase agreement with
Universal Health Services, Inc. ("UHS"), which generated a
$68.4 million gain on divestiture.
After adjusting the reported results for the three-month period
ended December 31, 2021, for the
$86.0 million above-mentioned gains
on divestitures of real estate assets, as calculated on the
Supplemental Schedule, our adjusted net income was $5.6 million, or $.41 per diluted share, during the fourth quarter
of 2021, as compared to $5.0 million,
or $.36 per diluted share during the
fourth quarter of 2020. As discussed below, these
transactions were structured and completed as like-kind exchanges
of property pursuant to the provisions of Section 1031 of the
Internal Revenue Code, as amended.
The increase in our adjusted net income of $605,000, or $.05
per diluted share, during the fourth quarter of 2021, as compared
to the fourth quarter of 2020, was due to: (i) an increase of
$874,000, or $.06 per diluted share, resulting from an
aggregate net increase in the income generated at various
properties, including the income recorded in connection with Clive
Behavioral Health, a 100-bed behavioral health care facility
located in Clive, Iowa, that was
completed in late December, 2020, partially offset by; (ii) a
decrease of $269,000, or $.02 per diluted share, due to an increase in
interest expense due primarily to an increase in our average
borrowings outstanding under our credit agreement.
As calculated on the Supplemental Schedule, our funds from
operations ("FFO"), were $12.9
million, or $.93 per diluted
share, during the fourth quarter of 2021, as compared to
$11.8 million, or $.85 per diluted share, during the fourth quarter
of 2020.
During the fourth quarter of 2021, as compared to the fourth
quarter of 2020, our FFO increased $1.1
million, or $.08 per diluted
share. The increase was due to the $605,000, or $.05
per diluted share, of increased adjusted net income, as discussed
above, as well as an increase in depreciation and amortization
expense, largely due to the depreciation expense recorded in
connection with the Clive Behavioral Health facility.
Consolidated Results of Operations - Twelve-Month Periods
Ended December 31, 2021 and 2020:
For the twelve-month
period ended December 31, 2021, net income was $109.2 million, or $7.92 per diluted share, as compared to
$19.4 million, or $1.41 per diluted share during the twelve-month
period of 2020.
As reflected on the attached Supplemental Schedule, our
financial results for the year ended December 31, 2021 include gains of $87.3 million, or $6.34 per diluted share, realized on the
divestitures of real estate assets. In addition to the
aggregate gain of $86.0 million, or
$6.24 per diluted share, resulting
from the fourth quarter of 2021 divestitures of the Auburn Medical
Office Building II, and the Inland Valley Campus of Southwest
Healthcare System, as discussed above, which was divested as part
of an asset purchase and sale agreement with UHS, we also recorded
a gain of $1.3 million, or
$.10 per diluted share, on the sale
of a medical office building located ("MOB") in Arkansas during the second quarter of 2021.
After adjusting the reported results for the twelve-month period
ended December 31, 2021 for the
above-mentioned gains of $87.3
million, or $6.34 per diluted
share, as calculated on the Supplemental Schedule, our adjusted net
income was $21.9 million, or
$1.59 per diluted share, during the
year ended December 31, 2021, as
compared to $19.4 million, or
$1.41 per diluted share, during the
year ended December 31, 2020.
The increase in our adjusted net income of $2.4 million, or $.18 per diluted share, during the year ended
December 31, 2021, as compared to the
comparable period of 2020, was due to: (i) an increase of
approximately $2.2 million, or
$.16 per diluted share, resulting
from a net aggregate increase net income, resulting primarily from
the income generated at various properties, including the income
recorded in connection with the Clive Behavioral Health facility;
(ii) an increase of $790,000, or
$.06 per diluted share, in bonus
rental earned on the three hospital facilities leased to
wholly-owned subsidiaries of UHS, partially offset by; (iii) a
decrease of $546,000, or $.04 per diluted share, due to an increase in
interest expense.
As calculated on the Supplemental Schedule, our FFO were
$50.9 million, or $3.69 per diluted share, during the year ended
December 31, 2021, as compared to
$46.2 million, or $3.36 per diluted share, during the comparable
period of 2020.
During the full year of 2021, as compared to the comparable
period of 2020, our FFO increased by $4.6
million, or $.33 per diluted
share. The increase was due primarily to the $2.4 million, or $.18 per diluted share, of increased adjusted net
income, as discussed above, as well as an increase in depreciation
and amortization expense, largely due to the depreciation expense
recorded in connection with the Clive Behavioral Health
facility.
Dividend Information:
The fourth quarter dividend of
$.705 per share, or $9.7 million in the aggregate, was declared on
December 1, 2021 and paid on
December 30, 2021.
Capital Resources Information:
At December 31, 2021, we had $271.9 million of borrowings outstanding pursuant
to the terms of our $375 million
credit agreement and $99.9 million of
available borrowing capacity as of that date, net of outstanding
borrowings and letters of credit.
Asset Purchase and Sale Agreement with UHS:
As
previously disclosed on Form 8-K, as filed on January 4, 2022, on December 31, 2021, we entered into an asset
purchase and sale agreement with UHS and certain of its affiliates
pursuant to the terms of which:
- a wholly-owned subsidiary of UHS purchased from us, the real
estate assets of the Inland Valley Campus of Southwest Healthcare
System located in Wildomar,
California, at its fair market value of $79.6 million.
- two wholly-owned subsidiaries of UHS transferred to us, the
real estate assets of the following properties:
-
- Aiken Regional Medical Center ("Aiken"), located in Aiken, South Carolina (which includes an acute
care hospital and a behavioral health pavilion), at its fair-market
value of approximately $57.7 million,
and;
- Canyon Creek Behavioral Health ("Canyon Creek"), located in
Temple, Texas, at its fair-market
value of approximately $24.7
million.
- in connection with this transaction, since the fair-market
value of Aiken and Canyon Creek,
which totaled approximately $82.4
million in the aggregate, exceeded the $79.6 million fair-market value of the Inland
Valley Campus of Southwest Healthcare System, we paid approximately
$2.8 million in cash to UHS. This
transaction generated a gain of approximately $68.4 million which is included in our
consolidated statement of income for the three and twelve-month
periods ended December 31, 2021.
We structured the purchase and sale of the above-mentioned
properties as a like-kind exchange of property under the provisions
of Section 1031 of the Internal Revenue Code of 1986, as
amended.
Also on December 31, 2021,
Aiken and Canyon Creek (as
lessees), entered into a master lease and individual property
leases (with us as lessor), for initial lease terms on each
property of approximately twelve years, ending on December 31, 2033. Subject to the terms of the
master lease, Aiken and Canyon
Creek have the right to renew their leases, at the then current
fair market rent (as defined in the master lease), for seven,
five-year optional renewal terms. The aggregate annual rental
during 2022 pursuant to the leases for these two facilities, which
is payable to us on a monthly basis, amounts to approximately
$5.6 million ($3.9 million related to Aiken and $1.7
million related to Canyon Creek). There is no bonus rental
component on either of these leases. Beginning on January 1, 2023, and thereafter on each
January 1st through 2033,
the annual rental will increase by 2.25% on a cumulative and
compounded basis. Pursuant to the lease on the Inland Valley
Campus, we earned $4.5 million of
lease revenue during the year ended December
31, 2021 ($2.6 million in base
rental and $1.9 million in bonus
rental). We have accounted for the asset purchase and sale
agreement with UHS as a financing arrangement and our consolidated
balance sheet as of December 31, 2021
reflects a financing receivable for $82.4
million representing the fair market value of the real
estate assets that were received as part of the transaction. Future
lease payments received by us in connection with these two
facilities will be recorded as interest income in our consolidated
statements of income and as a reduction of the related financing
receivable asset.
Other Recent Asset Divestiture/Acquisition
Transactions:
During the fourth quarter of 2021 and first
quarter of 2022, we completed two transactions as
follows, utilizing qualified third-party intermediaries
as part of a series of anticipated tax-deferred like-kind exchange
transactions pursuant to Section 1031 of the Internal Revenue Code,
as amended:
- In November, 2021, we sold the Auburn Medical Office Building
II, located in Auburn, Washington,
for a sale price of approximately $24.9
million, net of closing costs. This divestiture generated a
gain of approximately $17.6 million
which is included in our consolidated statement of income for the
three and twelve-month periods ended December 31, 2021;
- In January, 2022, we acquired 140 Thomas Johnson Drive, a
medical office building with 20,146 rentable square feet, located
in Frederick, Maryland, for a
purchase price of approximately $8.0
million. The building is 100% leased to three tenants under
the terms of triple-net leases. Approximately 72% of the rentable
square feet of this MOB is leased pursuant to a 15-year lease, with
a remaining lease term of approximately 14 years at the time of
purchase, with three, five-year renewal options.
Construction of New Medical Office Building:
In
January, 2022, we entered into a ground lease and master flex-lease
agreement with a wholly-owned subsidiary of UHS with the intent to
develop, construct and own the real property of Sierra Medical
Plaza I, an MOB located in Reno,
Nevada, consisting of approximately 86,000 rentable square
feet. This MOB will be located on the campus of the Northern Nevada
Sierra Medical Center, a newly constructed hospital that is owned
and operated by a wholly-owned subsidiary of UHS, which is
scheduled to be completed and opened during the first quarter of
2022. Construction of this MOB, for which we have engaged a
non-related third party to act as construction manager, commenced
in January, 2022. The cost of the MOB is estimated to be
approximately $34 million. A
wholly-owned subsidiary of UHS has entered into a master flex lease
agreement, which is subject to reduction based upon the execution
of third-party leases, for approximately 68% of the rentable square
feet of the MOB.
Purchase of Minority Interest in Majority-Owned Limited
Partnership:
During the fourth quarter of 2021, we paid
approximately $3.1 million to
purchase the 5% minority interest held by a third-party partner in
Grayson Properties, LP which owns the Texoma Medical Plaza, an MOB
located in Denison, Texas. The MOB
is located on the campus of Texoma Medical Center, a hospital that
is owned and operated by a wholly-owned subsidiary of UHS. As a
result of this minority ownership purchase, we now own 100% of the
LP.
Property Disclosures Related to Certain
Facilities:
Wellington Regional Medical
Center:
Upon the December 31,
2021 expiration of the lease on this acute care hospital
located in West Palm Beach,
Florida, a wholly-owned subsidiary of UHS exercised its fair
market value renewal option and renewed the lease for a 5-year term
scheduled to expire on December 31,
2026. Effective January 1,
2022, the annual fair market value lease rate for this
hospital, which is payable to us monthly, is $6.3 million (there is no longer a bonus rental
component of the lease payment). Beginning on January 1, 2023, and thereafter on each
January 1st through 2026,
the annual rent will increase by 2.50% on a cumulative and
compounded basis. Pursuant to the hospital's previous lease,
we earned aggregate lease revenue of $5.5
million during the year ended December 31, 2021, consisting of $3.0 million of base rental and $2.5 million of bonus rental.
Facilities in Evansville,
Indiana, Corpus Christi,
Texas and Chicago,
Illinois:
The leases on two specialty
facilities, located in Evansville,
Indiana, and Corpus Christi,
Texas, expired on May 31, 2019
and June 1, 2019, respectively.
Each facility has remained vacant since 2019. The lease on the 4058
W. Melrose specialty facility, located in Chicago, Illinois, expired on December 31, 2021 and the facility is currently
vacant. Pursuant to the terms of the lease on the 4058 W. Melrose
property, we earned approximately $1.6
million of lease revenue during each of the years ended
December 31, 2021 and 2020.
The aggregate annual operating expenses (excluding depreciation
and amortization expense) incurred by us in connection with the
Evansville, Indiana, and
Corpus Christi, Texas, facilities
amounted to $737,000 during 2021. The
former tenant was responsible for the operating expenses of the
Chicago, Illinois, property during
2021. The 2022 aggregate operating expenses for the three vacant
specialty facilities, including the facility in Illinois, are estimated to be approximately
$2.5 million annually. Future
operating expenses related to these three facilities will be
incurred by us during the time they remain owned and vacant. We
continue to market each of these properties to potential interested
parties. However, should the properties continue to remain vacant
for an extended period of time, or should we experience a decrease
in the lease rates on a future leases, as compared to the previous
leases, or incur substantial renovations costs to make the
properties suitable for another operator/tenant, our future results
of operations could be materially unfavorably impacted.
General Information, Forward-Looking Statements and Risk
Factors 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 health care hospitals, specialty
hospitals, medical/office buildings, free-standing emergency
departments and childcare centers. We have investments or
commitments in seventy-five properties located in twenty-one
states.
This press release contains forward-looking statements based on
current management expectations. Numerous factors, including
those disclosed herein, those related to the anticipated impact of
COVID-19 on our financial results, as well as the operations and
financial results of each of our tenants, those related to
healthcare industry trends and those detailed in our filings with
the Securities and Exchange Commission (as set forth in Item
1A-Risk Factors and in Item 7-Forward-Looking
Statements in our Form 10-K for the year ended December 31, 2021, may cause the results to
differ materially from those anticipated in the 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.
Many of the factors that could affect our future results are
beyond our control or ability to predict, including the impact of
the COVID-19 pandemic. Future operations and financial results of
our tenants, and in turn ours, could be materially impacted by
developments related to COVID-19. Such developments
include, but are not limited to, the length of time and severity of
the spread of the pandemic; the volume of cancelled or rescheduled
elective procedures and the volume of COVID-19 patients treated by
the operators of our hospitals and other healthcare facilities;
measures our tenants are taking to respond to the COVID-19
pandemic; the impact of government and administrative regulation
and stimulus on the health care industry; declining patient volumes
and unfavorable changes in payer mix caused by deteriorating
macroeconomic conditions (including increases in uninsured and
underinsured patients as the result of business closings and
layoffs); potential disruptions to clinical staffing and shortages
and disruptions related to supplies required for our tenants'
employees and patients; and potential increases to expenses
incurred by our tenants related to staffing, supply chain or other
expenditures. There may be significant declines in future
bonus rental revenue earned on our hospital properties leased to
wholly-owned subsidiaries of UHS to the extent that each hospital
experiences a significant decline in patient volumes. We believe
that the underlying businesses operated by certain of our other
tenants have been, at various times, either temporarily closed
entirely or operating at substantially reduced hours. These
factors may result in the inability or unwillingness on the part of
some of our tenants to make timely payment of their rent to us at
current levels or to seek to amend or terminate their leases which,
in turn, would have an adverse effect on our occupancy levels and
our revenue and cash flow and the value of our properties, and
potentially, our ability to maintain our dividend at current
levels. Due to COVID-19 restrictions and its impact on the economy,
we may experience a decrease in prospective tenants which could
unfavorably impact the volume of new leases, as well as the renewal
rate of existing leases. The COVID-19 pandemic may delay our
construction projects which could result in increased costs and
delay the timing of opening and rental payments from those
projects, although no such delays have yet occurred. The COVID-19
pandemic could also impact our indebtedness and the ability to
refinance such indebtedness on acceptable terms, as well as risks
associated with disruptions in the financial markets and the
business of financial institutions as the result of the COVID-19
pandemic which could impact us from a financing perspective; and
changes in general economic conditions nationally and regionally in
the markets our properties are located resulting from the COVID-19
pandemic. We are not able to quantify the impact that these factors
will have on our future operations, but developments related to the
COVID-19 pandemic could have a material adverse impact on our
future financial results.
We believe that, if and when applicable, adjusted net
income and adjusted net income per diluted share (as reflected on
the Supplemental Schedule), 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, when applicable, 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 material items that are non-recurring or
non-operational in nature including items such as, but not limited
to, gains on transactions.
Funds from operations ("FFO") is a widely recognized measure of
performance for Real Estate Investment Trusts ("REITs"). We believe
that FFO and FFO per diluted share, which are non-GAAP financial
measures, are helpful to our investors as measures of our operating
performance. We compute FFO, as reflected on the attached
Supplemental Schedules, 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 adjusts for the effects of
certain items, such as gains on transactions that occurred during
the periods presented. 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 reflected on the Supplemental
Schedules included 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, 2021. 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.
Universal Health
Realty Income Trust
Consolidated
Statements of Income
For the Three and
Twelve Months Ended December 31, 2021 and 2020
(amounts in
thousands, except share information)
(unaudited)
|
|
|
|
Three Months
Ended
|
|
|
Twelve Months
Ended
|
|
|
|
December
31,
|
|
|
December
31,
|
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease revenue -
UHS facilities (a.)
|
|
$
|
7,925
|
|
|
$
|
6,328
|
|
|
$
|
29,896
|
|
|
$
|
24,571
|
|
Lease revenue -
Non-related parties
|
|
|
13,000
|
|
|
|
13,036
|
|
|
|
52,324
|
|
|
|
51,562
|
|
Other revenue -
UHS facilities
|
|
|
222
|
|
|
|
215
|
|
|
|
891
|
|
|
|
882
|
|
Other revenue -
Non-related parties
|
|
|
263
|
|
|
|
251
|
|
|
|
1,079
|
|
|
|
995
|
|
|
|
|
21,410
|
|
|
|
19,830
|
|
|
|
84,190
|
|
|
|
78,010
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
and amortization
|
|
|
6,927
|
|
|
|
6,421
|
|
|
|
27,478
|
|
|
|
25,581
|
|
Advisory fees
to UHS
|
|
|
1,134
|
|
|
|
1,059
|
|
|
|
4,406
|
|
|
|
4,141
|
|
Other operating
expenses
|
|
|
5,956
|
|
|
|
5,711
|
|
|
|
23,441
|
|
|
|
22,284
|
|
|
|
|
14,017
|
|
|
|
13,191
|
|
|
|
55,325
|
|
|
|
52,006
|
|
Income before equity
in income of unconsolidated limited liability companies ("LLCs"),
gains on divestitures of real estate assets and interest
expense
|
|
|
7,393
|
|
|
|
6,639
|
|
|
|
28,865
|
|
|
|
26,004
|
|
Equity in income of
unconsolidated LLCs
|
|
|
455
|
|
|
|
335
|
|
|
|
1,796
|
|
|
|
1,706
|
|
Gains on divestitures
of real estate assets
|
|
|
86,010
|
|
|
|
-
|
|
|
|
87,314
|
|
|
|
-
|
|
Interest expense,
net
|
|
|
(2,243)
|
|
|
|
(1,974)
|
|
|
|
(8,809)
|
|
|
|
(8,263)
|
|
Net income
|
|
$
|
91,615
|
|
|
$
|
5,000
|
|
|
$
|
109,166
|
|
|
$
|
19,447
|
|
Basic earnings per
share
|
|
$
|
6.66
|
|
|
$
|
0.36
|
|
|
$
|
7.94
|
|
|
$
|
1.42
|
|
Diluted earnings per
share
|
|
$
|
6.65
|
|
|
$
|
0.36
|
|
|
$
|
7.92
|
|
|
$
|
1.41
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding - Basic
|
|
|
13,763
|
|
|
|
13,749
|
|
|
|
13,757
|
|
|
|
13,743
|
|
Weighted average
number of shares outstanding - Diluted
|
|
|
13,784
|
|
|
|
13,771
|
|
|
|
13,779
|
|
|
|
13,765
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a.) Includes bonus
rental on UHS acute-care hospital facilities of $1,736 and $1,639
for the three-month periods ended December 31, 2021 and 2020,
respectively, and $6,906 and $6,116 for the twelve-month periods
ended December 31, 2021 and 2020, respectively.
|
|
Universal Health
Realty Income Trust
Schedule of Non-GAAP
Supplemental Information ("Supplemental Schedule")
For the Three Months
Ended December 31, 2021 and 2020
(amounts in
thousands, except share information)
(unaudited)
|
|
|
Calculation of
Adjusted Net Income
|
|
|
|
Three Months
Ended
|
|
|
Three Months
Ended
|
|
|
|
December 31,
2021
|
|
|
December 31,
2020
|
|
|
|
Amount
|
|
|
Per
Diluted Share
|
|
|
Amount
|
|
|
Per
Diluted Share
|
|
Net income
|
|
$
|
91,615
|
|
|
$
|
6.65
|
|
|
$
|
5,000
|
|
|
$
|
0.36
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Gains on
divestitures of real estate assets
|
|
|
(86,010)
|
|
|
|
(6.24)
|
|
|
|
-
|
|
|
|
-
|
|
Subtotal adjustments
to net income
|
|
|
(86,010)
|
|
|
|
(6.24)
|
|
|
|
-
|
|
|
|
-
|
|
Adjusted net
income
|
|
$
|
5,605
|
|
|
$
|
0.41
|
|
|
$
|
5,000
|
|
|
$
|
0.36
|
|
|
|
Calculation of
Funds From Operations ("FFO")
|
|
|
|
Three Months
Ended
|
|
|
Three Months
Ended
|
|
|
|
December 31,
2021
|
|
|
December 31,
2020
|
|
|
|
Amount
|
|
|
Per
Diluted Share
|
|
|
Amount
|
|
|
Per
Diluted Share
|
|
Net income
|
|
$
|
91,615
|
|
|
$
|
6.65
|
|
|
$
|
5,000
|
|
|
$
|
0.36
|
|
Plus: Depreciation and
amortization expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
investments
|
|
|
6,927
|
|
|
|
0.50
|
|
|
|
6,421
|
|
|
|
0.47
|
|
Unconsolidated
affiliates
|
|
|
353
|
|
|
|
0.03
|
|
|
|
333
|
|
|
|
0.02
|
|
Less: Gains on
divestitures of real estate assets
|
|
|
(86,010)
|
|
|
|
(6.24)
|
|
|
|
-
|
|
|
|
-
|
|
FFO
|
|
$
|
12,885
|
|
|
$
|
0.93
|
|
|
$
|
11,754
|
|
|
$
|
0.85
|
|
Dividend paid per
share
|
|
|
|
|
|
$
|
0.705
|
|
|
|
|
|
|
$
|
0.695
|
|
Universal Health
Realty Income Trust
Schedule of Non-GAAP
Supplemental Information ("Supplemental Schedule")
For the Twelve Months
Ended December 31, 2021 and 2020
(amounts in
thousands, except share information)
(unaudited)
|
|
|
Calculation of
Adjusted Net Income
|
|
|
|
Twelve Months
Ended
|
|
|
Twelve Months
Ended
|
|
|
|
December 31,
2021
|
|
|
December 31,
2020
|
|
|
|
Amount
|
|
|
Per
Diluted Share
|
|
|
Amount
|
|
|
Per
Diluted Share
|
|
Net income
|
|
$
|
109,166
|
|
|
$
|
7.92
|
|
|
$
|
19,447
|
|
|
$
|
1.41
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Gains on
divestitures of real estate assets
|
|
|
(87,314)
|
|
|
|
(6.34)
|
|
|
|
-
|
|
|
|
-
|
|
Subtotal adjustments
to net income
|
|
|
(87,314)
|
|
|
|
(6.34)
|
|
|
|
-
|
|
|
|
-
|
|
Adjusted net
income
|
|
$
|
21,852
|
|
|
$
|
1.59
|
|
|
$
|
19,447
|
|
|
$
|
1.41
|
|
|
|
Calculation of
Funds From Operations ("FFO")
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended
|
|
|
Twelve Months
Ended
|
|
|
|
December 31,
2021
|
|
|
December 31,
2020
|
|
|
|
Amount
|
|
|
Per
Diluted Share
|
|
|
Amount
|
|
|
Per
Diluted Share
|
|
Net income
|
|
$
|
109,166
|
|
|
$
|
7.92
|
|
|
$
|
19,447
|
|
|
$
|
1.41
|
|
Plus: Depreciation and
amortization expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
investments
|
|
|
27,478
|
|
|
|
2.00
|
|
|
|
25,581
|
|
|
|
1.86
|
|
Unconsolidated
affiliates
|
|
|
1,549
|
|
|
|
0.11
|
|
|
|
1,202
|
|
|
|
0.09
|
|
Less: Gains on
divestitures of real estate assets
|
|
|
(87,314)
|
|
|
|
(6.34)
|
|
|
|
-
|
|
|
|
-
|
|
FFO
|
|
$
|
50,879
|
|
|
$
|
3.69
|
|
|
$
|
46,230
|
|
|
$
|
3.36
|
|
Dividend paid per
share
|
|
|
|
|
|
$
|
2.800
|
|
|
|
|
|
|
$
|
2.760
|
|
Universal Health
Realty Income Trust
Consolidated Balance
Sheets
(amounts in
thousands, except share information)
(unaudited)
|
|
|
|
December
31,
|
|
|
December 31,
|
|
|
|
2021
|
|
|
2020
|
|
Assets:
|
|
|
|
|
|
|
|
|
Real Estate
Investments:
|
|
|
|
|
|
|
|
|
Buildings and
improvements and construction in progress
|
|
$
|
608,836
|
|
|
$
|
605,292
|
|
Accumulated
depreciation
|
|
|
(225,584)
|
|
|
|
(216,648)
|
|
|
|
|
383,252
|
|
|
|
388,644
|
|
Land
|
|
|
54,897
|
|
|
|
55,157
|
|
Net Real Estate Investments
|
|
|
438,149
|
|
|
|
443,801
|
|
Financing receivable
from UHS
|
|
|
82,439
|
|
|
|
-
|
|
Net Real Estate Investments and Financing receivable
|
|
|
520,588
|
|
|
|
443,801
|
|
Investments in and
advances to limited liability companies ("LLCs")
|
|
|
10,139
|
|
|
|
4,278
|
|
Other
Assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
22,504
|
|
|
|
5,742
|
|
Lease and other
receivables from UHS
|
|
|
4,641
|
|
|
|
3,199
|
|
Lease receivable -
other
|
|
|
7,109
|
|
|
|
7,504
|
|
Intangible assets (net
of accumulated amortization of $14.2 million
and $19.5 million,
respectively)
|
|
|
9,972
|
|
|
|
11,742
|
|
Right-of-use land
assets, net
|
|
|
11,495
|
|
|
|
8,914
|
|
Deferred charges and
other assets, net
|
|
|
11,971
|
|
|
|
8,829
|
|
Total Assets
|
|
$
|
598,419
|
|
|
$
|
494,009
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
Line of credit
borrowings
|
|
$
|
271,900
|
|
|
$
|
236,200
|
|
Mortgage notes
payable, non-recourse to us, net
|
|
|
56,866
|
|
|
|
58,895
|
|
Accrued
interest
|
|
|
346
|
|
|
|
351
|
|
Accrued expenses and
other liabilities
|
|
|
12,157
|
|
|
|
19,802
|
|
Ground lease
liabilities, net
|
|
|
11,495
|
|
|
|
8,914
|
|
Tenant reserves,
deposits and deferred and prepaid rents
|
|
|
10,328
|
|
|
|
10,842
|
|
Total Liabilities
|
|
|
363,092
|
|
|
|
335,004
|
|
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: 2021 -
13,785,345; 2020 -
13,771,287
|
|
|
138
|
|
|
|
138
|
|
Capital in excess of
par value
|
|
|
268,515
|
|
|
|
267,368
|
|
Cumulative net income
and other
|
|
|
789,559
|
|
|
|
680,727
|
|
Cumulative
dividends
|
|
|
(823,998)
|
|
|
|
(785,413)
|
|
Accumulated other
comprehensive income/(loss)
|
|
|
1,113
|
|
|
|
(3,815)
|
|
Total Equity
|
|
|
235,327
|
|
|
|
159,005
|
|
Total Liabilities and Equity
|
|
$
|
598,419
|
|
|
$
|
494,009
|
|
View original
content:https://www.prnewswire.com/news-releases/universal-health-realty-income-trust-reports-2021-fourth-quarter-and-full-year-financial-results-301490232.html
SOURCE Universal Health Realty Income Trust