Shares of Common Well being Realty Revenue Belief UHT have gained 0.9% because the firm reported its earnings for the quarter ended Dec. 31, 2024. This compares to the S&P 500 Index’s 1.7% loss over the identical time-frame. Over the previous month, the inventory gained 3.9% versus the S&P 500’s 3.4% decline.
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Earnings Efficiency
Common Well being Realty reported web earnings 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, within the prior-year quarter. Adjusted web earnings, which excludes the prior-year’s loss on divestiture, elevated $836,000, or $0.06 per diluted share. This enchancment was pushed by a $1.2 million improve in earnings generated at varied properties, partially offset by a $337,000 improve in curiosity expense.
For 2024, web earnings rose 24.9% to $19.2 million, or $1.39 per diluted share, in contrast with $15.4 million, or $1.11 per diluted share, in 2023. Adjusted web earnings grew $3.6 million, or $0.26 per diluted share, supported by a $3.5 million web earnings acquire from properties and a $2.0 million discount in bills associated to a property in Chicago, IL. These features had been partially offset by a $1.9 million improve in curiosity expense.
Funds from operations (FFO), a key metric for actual property funding trusts, rose 3.3% to $11.8 million, or $0.85 per diluted share, in fourth-quarter 2024 in contrast with $11.4 million, or $0.82 per diluted share, a 12 months earlier. For the complete 12 months, 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.
Common Well being Realty Revenue Belief Worth, Consensus and EPS Shock
Universal Health Realty Income Trust price-consensus-eps-surprise-chart | Common Well being Realty Revenue Belief Quote
Key Enterprise Metrics
Lease income from Common Well being Providers (UHS) amenities remained comparatively steady at $8.3 million in fourth-quarter 2024 in contrast with $8.3 million within the prior-year interval. In the meantime, lease income from non-related events elevated 3.1% to $14.5 million from $14 million.
Lease income from UHS amenities elevated 3.1% to $33.6 million in 2024 in contrast with $32.6 million within the prior-year interval. In the meantime, lease income from non-related events elevated 4.8% to $57.7 million from $54.9 million.
Curiosity earnings from financing leases related to UHS amenities was $1.355 million for the quarter, down 0.5% from $1.362 million a 12 months earlier. For the complete 12 months, the metric was $5.4 million, down 0.5% from $5.5 million within the comparable 2023 interval.
Working bills totaled $15.4 million in fourth-quarter 2024, down 4.8% from $16.2 million in the identical interval of 2023, aided by a discount in depreciation and amortization. For the complete 12 months, the metric was $62.2 million, down 3.1% from $64.2 million within the comparable 2023 interval.
Administration Commentary
The corporate attributed its earnings progress to elevated earnings from varied properties and decrease property-related bills, significantly in Chicago, IL, the place demolition prices in 2023 had weighed on outcomes.
To strengthen liquidity, UHT amended its credit score settlement in September 2024, rising its borrowing capability to $425 million (up from $375 million) and lengthening the maturity date to Sept. 30, 2028. At year-end, the corporate had $348.9 million in excellent borrowings and $76.1 million in out there borrowing capability.
Components Influencing Earnings
The rise in earnings was primarily attributed to earnings progress throughout a number of properties. Nonetheless, this was partially offset by rising curiosity bills attributable to increased common borrowing charges and elevated excellent debt beneath the corporate’s revolving credit score settlement.
In an effort to mitigate rate of interest publicity, Common Well being Realty entered into a brand new rate of interest swap settlement in October 2024, locking in a 3.2725% mounted charge on $85 million of debt by means of September 2028. This changed two expired swaps that had a decrease mixed charge of 1.21%.
Steerage
Administration didn’t present particular monetary steering for 2025 however indicated that macroeconomic situations, significantly rates of interest and property-related bills, will proceed to form efficiency.
Different Developments
The corporate accomplished the development of Sierra Medical Plaza I in Reno, NV, in March 2023. The property, situated on the campus of a UHS-owned hospital, is at the moment 68% leased, together with a 10-year grasp flex lease protecting 34% of rentable area.
Moreover, Common Well being Realty bought a vacant specialty facility in Corpus Christi, TX, in December 2023 for $3.9 million, recording a $232,000 loss on divestiture. The corporate remains to be advertising vacant properties in Chicago, IL, and Evansville, IN.
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This article originally published on Zacks Investment Research (zacks.com).
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