Universal Health Realty Income Trust Reports First Quarter 2013 Financial Results

KING OF PRUSSIA, Pa., April 24, 2013 /PRNewswire/ -- Universal Health Realty Income Trust (NYSE:UHT) announced today that for the three-month period ended March 31, 2013, reported net income was $3.4 million, or $.27 per diluted share, as compared to $9.5 million, or $.75 per diluted share, during the first quarter of 2012.

After adjusting the reported results for the three-month periods ended March 31, 2013 and 2012 for the net impact of the items mentioned below, and as reflected on the attached Schedule of Non-GAAP Supplemental Information ("Supplemental Schedule"), our adjusted net income was $3.5 million, or $.28 per diluted share, during the first quarter of 2013 as compared to $2.7 million, or $.21 per diluted share, during the first quarter of 2012.

As calculated on the attached Supplemental Schedule, our adjusted funds from operations ("AFFO") increased $320,000, or 4%, to $9.0 million, or $.71 per diluted share, during the first quarter of 2013, as compared to $8.7 million, or $.69 per diluted share, during the first quarter of 2012.

As reflected on the attached Supplemental Schedule, our reported net income during the three-month period ended March 31, 2012 included a $7.4 million net gain on the divestiture of property owned by an unconsolidated LLC. After neutralizing the impact of the gain recorded in last year's first quarter, as well as the transaction costs recorded during the first quarter of each year, our adjusted net income increased $850,000, or $.07 per diluted share, during the first quarter of 2013 as compared to the comparable quarter of 2012.  The increase in adjusted net income during the first quarter of 2013, as compared to the first quarter of 2012, was attributable to: (i) a net combined increase of $444,000 resulting primarily from increased income generated at a number of our properties, and; (ii) an increase of $406,000 resulting from a decrease in depreciation and amortization expense resulting primarily from a decrease in amortization expense recorded on intangible assets.    

The $320,000 increase in our AFFO during the first quarter of 2013, as compared to the first quarter of 2012, was attributable to the $850,000 increase in adjusted net income, as discussed above, partially offset by a $530,000 decrease in the add-back of depreciation and amortization expense recorded on our consolidated investments and unconsolidated affiliates. The decrease in the add-back of depreciation and amortization expense resulted primarily from the above-mentioned decrease in amortization expense recorded on intangible assets during the first quarter of 2013 as compared to the first quarter of 2012. 

Capital Resources Information:
At March 31, 2013, we had $84.2 million of borrowings outstanding under our $150 million revolving credit agreement and $53.4 million of available borrowing capacity, net of outstanding borrowings and letters of credit.

We filed a Registration Statement with the Securities and Exchange Commission which became effective in November 2012, under which we can offer up to $50 million of our securities pursuant to supplemental prospectuses which we may file from time to time. No offering will be made except pursuant to such supplemental prospectuses.

Dividend Information:
The first quarter dividend of $.62 per share was paid on March 29, 2013.

Completion and Opening of a New Medical Office Building:
On April 1, 2013, the newly constructed Forney Medical Plaza II located in Forney, Texas was completed and opened.  This multi-tenant medical office building, consisting of 30,000 rentable square feet, is owned by a limited partnership in which we hold a 95% non-controlling ownership interest.  

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 healthcare facilities, rehabilitation hospitals, sub-acute care facilities, surgery centers, childcare centers and medical office buildings.  We have investments in fifty-four properties located in fifteen states.

This press release contains forward-looking statements based on current management expectations.  Numerous factors, including those disclosed herein, those related to healthcare and healthcare real estate 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 and Risk Factors in our Form 10-K for the year ended December 31, 2012), may cause the results to differ materially from those anticipated in the forward-looking statements.  Many of the factors that will determine our future results are beyond our capability to control or predict.  These statements are subject to risks and uncertainties and therefore actual results may differ materially. 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.

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, and adjusted funds from operations ("AFFO") and AFFO 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. 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. AFFO was also computed for the three-month periods ended March 31, 2013 and 2012, as reflected on the Supplemental Schedules and discussed herein, since we believe it is helpful to our investors since it adjusts for the effect of a gain on divestiture of property owned by an unconsolidated LLC (during the first quarter of 2012) and transaction costs related to acquisitions. FFO/AFFO do 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/AFFO 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/AFFO 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, 2012.   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.

SOURCE Universal Health Realty Income Trust