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Universal Health Realty Income Trust Reports Operating Results (10-Q)

August 08, 2012 | About:
10qk

10qk

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Universal Health Realty Income Trust (UHT) filed Quarterly Report for the period ended 2012-06-30.

Universal Health Realty Income Trust has a market cap of $551.2 million; its shares were traded at around $42.89 with a P/E ratio of 16.8 and P/S ratio of 18.7. The dividend yield of Universal Health Realty Income Trust stocks is 5.7%.

Highlight of Business Operations:

The combined revenues generated from the leases on the UHS hospital facilities comprised approximately 30% of our consolidated revenues during each of the three and six months ended June 30, 2012 and 61% of our consolidated revenues during each of the three and six months ended June 30, 2011. The decreases during the second quarter and the first six months of 2012, as compared to the comparable quarter and six months of the prior year, were due primarily to the December, 2011 purchase of the third-party minority ownership interests in eleven LLCs in which we previously held noncontrolling majority ownership interests (we began recording the financial results of these entities in our financial statements on a consolidated basis at that time) and various acquisitions of medical office buildings (MOBs) and clinics completed during 2011 and the first quarter of 2012. Including 100% of the revenues generated at the unconsolidated LLCs in which we have various non-controlling equity interests ranging from 33% to 95%, the leases on the UHS hospital facilities accounted for approximately 21% and 19% of the combined consolidated and unconsolidated revenue for the three month periods ended June 30, 2012 and 2011, respectively, and 22% and 19% of the combined consolidated and unconsolidated revenue for the six months ended June 30, 2012 and 2011, respectively. In addition, twelve MOBs owned by LLCs in which we hold either 100% of the ownership interest or various non-controlling, majority ownership interests, include or will include tenants which are subsidiaries of UHS. The leases to the hospital facilities of UHS are guaranteed by UHS and cross-defaulted with one another.

Assuming the 2012 acquisition and divestiture, as well as the 2011 acquisitions and divestitures as previously disclosed, occurred on January 1, 2011, our 2011 pro forma net revenues for the three and six months ended June 30, 2011 would have been approximately $13.2 million and $26.3 million, respectively, and our 2011 proforma net income for the three and six months ended June 30, 2011 would have been approximately $2.4 million, or $0.19 per diluted share, and $5.9 million, or $0.46 per diluted share, respectively, without giving effect to the gains and transaction costs recorded during 2011. Assuming the 2012 acquisition and divestiture occurred on January 1, 2012, our net revenues and net income for the three month period ended June 30, 2012 would have remained unchanged from the actual net revenues and net income as reported, and our pro forma net revenues and net income for the six months ended June 30, 2012 would have been approximately $27.2 million and $5.3 million, or $.42 per diluted share, respectively, without giving effect to the gains and transaction costs recorded during 2012.

The combined revenues generated from the leases on the UHS hospital facilities comprised approximately 30% of our consolidated revenue during each of the three and six months ended June 30, 2012 and 61% of our consolidated revenues during each of the three and six months ended June 30, 2011. The decreases during the second quarter and the first six months of 2012, as compared to the comparable quarter and six months of the prior year, were due primarily to the December, 2011 purchase of the third-party minority ownership interests in eleven LLCs in which we previously held noncontrolling majority ownership interests (we began recording the financial results of these entities in our financial statements on a consolidated basis at that time) and various acquisitions of medical office buildings and clinics completed during 2011 and the first quarter of 2012. Including 100% of the revenues generated at the unconsolidated LLCs in which we have various non-controlling equity interests ranging from 33% to 95%, the leases on the UHS hospital facilities accounted for approximately 21% and 19% of the combined consolidated and unconsolidated revenue for the three month periods ended June 30, 2012 and 2011, respectively, and 22% and 19% of the combined consolidated and unconsolidated revenue for the six months ended June 30, 2012 and 2011, respectively. In addition, twelve medical office buildings (MOBs), owned by LLCs in which we hold either 100% of the ownership interest or various non-controlling, majority ownership interests, include or will include tenants which are subsidiaries of UHS. The leases to the hospital facilities of UHS are guaranteed by UHS and cross-defaulted with one another. For additional disclosure related to our relationship with UHS, please refer to Note 2 to the condensed consolidated financial statements Relationship with Universal Health Services, Inc. (UHS) and Related Party Transactions.

During the second quarter of 2012, the five MOBs and clinics acquired during 2011 and the first quarter of 2012 generated approximately $2.3 million of revenue and incurred approximately $750,000 of other operating expenses, $925,000 of depreciation and amortization expense and $410,000 of interest expense. During the six months ended June 30, 2012, these five MOBs and clinics generated approximately $4.4 million of revenue and incurred approximately $1.3 million of other operating expenses, $1.8 million of depreciation and amortization expense and $750,000 of interest expense.

During the fourth quarter of 2009, we commenced an at-the-market (ATM) equity issuance program pursuant to the terms of which we may sell, from time-to-time, common shares of our beneficial interest up to an aggregate sales price of $50 million to or through Merrill Lynch, Pierce, Fenner and Smith Incorporated, as sales agent and/or principal. There were no shares issued pursuant to our ATM Program during the first six months of 2012. Since inception of this program, we have issued 733,500 shares at an average price of $32.90 per share, which generated approximately $22.9 million of net cash proceeds (net of approximately $1.2 million, consisting of compensation of approximately $725,000 to Merrill Lynch as well as $515,000 of various other fees and expenses). As of June 30, 2012, we generated approximately $24.1 million of gross cash proceeds, excluding all fees and expenses, and had $25.9 million of gross proceeds still available for issuance under the program.

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