Universal Health Realty Income Trust (UHRIT) reported its financial results for the third quarter and the nine months ended September 30, 2024, showing notable growth in revenue and net income compared to the previous fiscal period. For Q3 2024, UHRIT achieved net income of $3,997,000, a slight increase from $3,872,000 in Q3 2023. For the nine-month period, net income rose to $14,573,000 from $11,807,000, reflecting a 23.5% increase. This growth was attributed to a $2.5 million increase in income generated from various properties and a reduction in expenses related to a Chicago property.

Total revenues for Q3 2024 were $24,500,000, up 1.1% from $24,200,000 in Q3 2023. For the nine months, revenues increased by 4.4% to $74,400,000 from $71,300,000. The revenue growth was driven by contributions from newly constructed and acquired medical office buildings, including the McAllen Doctor's Center, which was acquired in Q3 2023.

Lease revenue from UHS facilities for Q3 2024 was $8,248,000, slightly down from $8,274,000 in Q3 2023, while lease revenue from non-related parties increased to $14,342,000 from $13,926,000. For the nine-month period, lease revenue from UHS facilities rose to $25,366,000, and from non-related parties to $43,188,000.

Operating expenses for Q3 2024 decreased to $6,800,000 from $7,100,000 in Q3 2023, contributing to improved profitability. Interest expenses increased to $4,800,000 in Q3 2024 from $4,500,000 in Q3 2023, reflecting higher average outstanding borrowings and interest rates.

As of September 30, 2024, total assets were $584,330,000, down from $596,369,000 at the end of 2023. Total equity decreased to $181,639,000 from $200,934,000, primarily due to accumulated other comprehensive losses. The company had $347,750,000 in line of credit borrowings, up from $326,600,000 at the end of 2023.

Strategically, UHRIT amended its credit agreement to extend the maturity date to September 30, 2028, increasing its borrowing capacity to $425 million. The company also filed a shelf registration statement to offer up to $100 million in securities. No acquisitions or divestitures occurred during the first nine months of 2024, but the company continues to focus on its healthcare-related real estate investments, which include 76 properties across 21 states.

Overall, UHRIT's financial performance reflects a positive trajectory in revenue and net income, despite challenges such as increased interest expenses and inflationary pressures affecting tenants.