KING OF PRUSSIA, PA — Universal Health Realty Income Trust (NYSE: UHT) delivered a strong financial performance in the fourth quarter and full year of 2024, reflecting growth in net income and operational improvements.
Fourth-Quarter Highlights
For the fourth quarter of 2024, UHT reported net income of $4.7 million, or $0.34 per diluted share, compared to $3.6 million, or $0.26 per diluted share, in the same period of 2023. Adjusting for a divestiture-related loss in Q4 2023, net income rose by $836,000, or $0.06 per diluted share.
Funds from operations (FFO) reached $11.8 million, or $0.85 per diluted share, up from $11.4 million, or $0.82 per diluted share, in Q4 2023. The increase was attributed to higher property income, partially offset by rising interest expenses.
Full-Year 2024 Performance
UHT’s full-year 2024 net income totaled $19.2 million, or $1.39 per diluted share, a 25% increase from $15.4 million, or $1.11 per diluted share, in 2023. Adjusted net income rose by $3.6 million, or $0.26 per diluted share, fueled by stronger earnings from properties, cost reductions tied to a Chicago property, and a favorable property tax adjustment.
Full-year FFO grew to $47.9 million, or $3.46 per diluted share, up from $44.6 million, or $3.23 per diluted share, in 2023, supported by improved property performance and reduced expenses.
Dividend and Credit Agreement
A quarterly dividend of $0.735 per share, totaling $10.1 million, was declared and paid in December 2024.
UHT strengthened its financial flexibility by amending its credit agreement in September 2024, increasing borrowing capacity to $425 million and extending the maturity date to September 2028. The company reported $348.9 million in outstanding borrowings under this agreement at year-end, with $76.1 million in available borrowing capacity.
Interest Rate Swap
To mitigate interest rate volatility, UHT entered into a new interest rate swap agreement in October 2024, covering $85 million at a fixed rate of 3.2725%. This replaced expiring swaps with lower rates, reflecting the broader impact of rising interest costs.
Outlook
With consistent earnings growth and key adjustments to its capital structure, UHT remains well-positioned to continue delivering value to its shareholders while navigating interest rate challenges. Its focus on operational efficiency and strategic investments underscores its commitment to sustainable performance across its healthcare-focused real estate portfolio.
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