KING OF PRUSSIA, PA — Universal Health Realty Income Trust (NYSE: UHT), a real estate investment trust (REIT) renowned for investing in healthcare and human-service facilities, has reported a decrease in net income for the fourth quarter ending December 31, 2023. The net income was recorded at $3.6 million or $0.26 per diluted share, down from $5.6 million or $0.41 per diluted share in the same period in 2022.
This decline in net income includes a $232,000 loss, incurred from the sale of a vacant specialty facility in Corpus Christi, Texas. When adjusted for this loss, the Trust’s net income was calculated at $3.8 million, or $0.28 per diluted share.
Several factors are attributed to the decrease in UHT’s adjusted net income for the fourth quarter of 2023. Most notably, an increase in interest expenditure and a one-time settlement and release agreement linked to a specialty facility in Chicago, Illinois. Partly offsetting these factors was an increase in income generated from various properties.
Despite a challenging year, the Trust’s CEO and President, Alan B. Miller, expressed his pride in UHT’s strong portfolio of healthcare properties and his optimism for the future. He said, “We look forward to 2024 with optimism as we strive to add high-quality investments to our existing portfolio of properties while maintaining our fundamental goal of providing a safe and reliable dividend stream to our shareholders.”
In other developments, UHT successfully completed the construction of the Sierra Medical Plaza I, an 86,000-square-foot medical office building located in Reno, Nevada. The Plaza is located on the campus of the Northern Nevada Sierra Medical Centre, a hospital owned and operated by a subsidiary of UHT.
Furthermore, UHT acquired McAllen Doctor’s Center in Texas for $7.6 million. The medical office building comes with a 100% master lease to McAllen Hospitals, L.P., a wholly-owned subsidiary of UHS, for twelve years.
At the closure of 2023, UHT declared a dividend of $.725 per share amounting to $10.0 million in total. Outstanding borrowings stood at $326.6 million with an available borrowing capacity of $45.3 million.
Despite the challenging year, UHT continues to be a significant player in the real estate investment landscape, particularly within the healthcare sector. With investments or commitments in seventy-six properties spanning twenty-one states, the company shows no sign of slowing down, maintaining its commitment to providing a reliable dividend stream to its shareholders.
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