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Universal Health Realty Income – Will continue to explore opportunities for growth

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Universal Health Realty Income Trust (NYSE: UHT) announced that for the three-month period ended December 31, 2011, reported net income was $62.6 million, or $4.95 per diluted share, as compared to $4.1 million, or $.33 per diluted share, during the same quarter in the prior year.

For the twelve-month period ended December 31, 2011, reported net income was $73.8 million, or $5.83 per diluted share, as compared to $16.3 million, or $1.33 per diluted share during 2010.

After adjusting the reported results for the three-month period ended December 31, 2011 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, as compared to $4.1 million, or $.33 per diluted share, during the fourth quarter of 2010. There were no such adjustments required to our reported net income for the fourth quarter of 2010.


As indicated on the attached Supplemental Schedule, included in our reported net income during the three-month period ended December 31, 2011, was the net favorable impact of $59.1 million, or $4.67 per diluted share, consisting primarily of the following which are discussed in more detail below:

  • An aggregate net gain of $28.6 million (net of $301,000 of related transaction costs), or $2.26 per diluted share, recorded in connection with fair value recognition of the assets and liabilities related to eleven limited liability companies (“LLCs”) of which we purchased the third-party, minority ownership interests (we previously held noncontrolling, majority ownership interests ranging from 85% to 99% in these LLCs and we now own 100% of each of these entities);
  • An aggregate net gain of $35.8 million (net of $466,000 of related transaction costs), or $2.83 per diluted share, recorded in connection with the divestiture of the underlying real property (consisting of medical office buildings and related assets) by eight LLCs in which we previously held noncontrolling, majority ownership interests ranging from 75% to 95%, and;
  • A provision for asset impairment of $5.4 million, or $.42 per diluted share, recorded in connection with a medical office building (“MOB”) in Atlanta, Georgia, as discussed below.

“During this past year we have been quite active in planning and completing various transactions that we believe have further strengthened and diversified our portfolio of high-quality properties”, said Alan B. Miller, Chief Executive Officer and President.  “As we look to the future we will continue to explore opportunities for growth while maintaining our primary focus, as we have in the past, of creating long-term shareholder value through a secure dividend stream.”

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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.


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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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