UHT Stock Gains Following Earnings Rise in Q4, FFO Improves Y/Y

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Shares of Universal Health Realty Income Trust UHT have gained 0.9% since the company reported its earnings for the quarter ended Dec. 31, 2024. This compares to the S&P 500 Index’s 1.7% loss over the same time frame. Over the past month, the stock gained 3.9% versus the S&P 500’s 3.4% decline.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Earnings Performance

Universal Health Realty reported net income of $4.7 million, or $0.34 per diluted share, for the fourth quarter of 2024, up 29.7% from $3.6 million, or $0.26 per diluted share, in the prior-year quarter. Adjusted net income, which excludes the prior-year’s loss on divestiture, increased $836,000, or $0.06 per diluted share. This improvement was driven by a $1.2 million increase in income generated at various properties, partially offset by a $337,000 increase in interest expense.

For 2024, net income rose 24.9% to $19.2 million, or $1.39 per diluted share, compared with $15.4 million, or $1.11 per diluted share, in 2023. Adjusted net income grew $3.6 million, or $0.26 per diluted share, supported by a $3.5 million net income gain from properties and a $2.0 million reduction in expenses related to a property in Chicago, IL. These gains were partially offset by a $1.9 million increase in interest expense.

Funds from operations (FFO), a key metric for real estate investment trusts, rose 3.3% to $11.8 million, or $0.85 per diluted share, in fourth-quarter 2024 compared with $11.4 million, or $0.82 per diluted share, a year earlier. For the full year, FFO grew 7.4% to $47.9 million, or $3.46 per diluted share, from $44.6 million, or $3.23 per diluted share, in 2023.

Universal Health Realty Income Trust Price, Consensus and EPS Surprise

Universal Health Realty Income Trust Price, Consensus and EPS Surprise
Universal Health Realty Income Trust Price, Consensus and EPS Surprise

Universal Health Realty Income Trust price-consensus-eps-surprise-chart | Universal Health Realty Income Trust Quote

Key Business Metrics

Lease revenue from Universal Health Services (UHS) facilities remained relatively stable at $8.3 million in fourth-quarter 2024 compared with $8.3 million in the prior-year period. Meanwhile, lease revenue from non-related parties increased 3.1% to $14.5 million from $14 million.

Lease revenue from UHS facilities increased 3.1% to $33.6 million in 2024 compared with $32.6 million in the prior-year period. Meanwhile, lease revenue from non-related parties increased 4.8% to $57.7 million from $54.9 million.

Interest income from financing leases associated with UHS facilities was $1.355 million for the quarter, down 0.5% from $1.362 million a year earlier. For the full year, the metric was $5.4 million, down 0.5% from $5.5 million in the comparable 2023 period.