Universal Health Realty Income Trust (NYSE:UHT) announced today that for the three-month period ended December 31, 2018, reported net income was $4.4 million, or $.32 per diluted share, as compared to $6.1 million, or $.44 per diluted share, during the fourth quarter of 2017.

As calculated on the Schedule of Non-GAAP Supplemental Information ("Supplemental Schedule"), our funds from operations ("FFO") were $10.8 million, or $.79 per diluted share, during the fourth quarter of 2018, as compared to $10.5 million, or $.77 per diluted share, during the fourth quarter of 2017.

As a result of damage sustained in August, 2017 from Hurricane Harvey at certain of our properties located in Texas, our financial results for the three-month period ended December 31, 2017 included approximately $1.6 million of hurricane related expenses and $3.6 million of hurricane related insurance recoveries. Excluding these items from the three-month period ended December 31, 2017, and as calculated on the Supplemental Schedule, our adjusted net income was $4.0 million, or $.29 per diluted share. During the three-month period ended December 31, 2017, our net income, adjusted net income and FFO were unfavorably impacted by approximately $375,000, or $.03 per diluted share, as a result of the temporary closure of the hurricane impacted properties.

Consolidated Results of Operations - Twelve-Month Periods Ended December 31, 2018 and 2017:

For the twelve-month period ended December 31, 2018, our reported net income was $24.2 million, or $1.76 per diluted share, as compared to $45.6 million, or $3.35 per diluted share during the twelve-month period of 2017.

As calculated on the Supplemental Schedule, our FFO were $45.0 million, or $3.28 per diluted share, during the twelve-month period of 2018, as compared to $42.2 million, or $3.10 per diluted share, during the twelve-month period of 2017.

As reflected on the Supplemental Schedule, and as discussed below, our financial results for the twelve-month period ended December 31, 2018, included $4.5 million of hurricane insurance recoveries in excess of property damage write-downs recorded in connection with damage sustained from Hurricane Harvey. Our financial results for the twelve-month period of 2017 included hurricane related expenses of $5.0 million, hurricane related insurance recoveries of $7.0 million, and a gain of $27.2 million recorded in connection with our purchase of the minority ownership interest in, and subsequent divesture of, the St. Mary's Professional Office Building ("Arlington transaction"). Excluding these items from each respective period, and as calculated on the Supplemental Schedule, our adjusted net income was $19.7 million, or $1.43 per diluted share, during the twelve-month period ended December 31, 2018 as compared to $16.4 million, or $1.20per diluted share, during the twelve-month period ended December 31, 2017.

Our net income and FFO for the twelve-month period ended December 31, 2018 included a net favorable impact of approximately $1.3 million, or $.10 per diluted share, consisting of the following: (i) a favorable impact of approximately $1.7 million, or $.12 per diluted share, received in connection with a lease termination agreement entered into during the second quarter of 2018 on a single-tenant medical office building located in Texas (this agreement terminated a lease that was scheduled to expire in July, 2020), partially offset by; (ii) an unfavorable impact of approximately $400,000, or $.02 per diluted share, consisting of non-recurring repairs and remediation expenses incurred at one of our medical office buildings. Also included in our net income and FFO during the twelve-month period ended December 31, 2018was a favorable impact of approximately $1.2 million, or $.08 per diluted share, of business interruption insurance recoveries recorded in connection with damage sustained from Hurricane Harvey. Included in this amount, which covered the period of late August, 2017 through the second quarter of 2018 (after satisfaction of the applicable deductibles), was approximately $500,000, or $.04 per diluted share, related to 2017.

Dividend Information:

The fourth quarter dividend of $.675 per share, or $9.3 million in the aggregate, was declared on December 6, 2018 and paid on December 31, 2018.

Capital Resources Information:

At December 31, 2018, we had $196.4 million of borrowings outstanding pursuant to the terms of our $300 million credit agreement and $103.6 million of available borrowing capacity. The credit agreement has a scheduled maturity date of March, 2022, however, we have the option to extend the maturity date for up to two additional six-month periods.

Hurricane Harvey Impact:

In late August 2017, five of our medical office buildings located in the Houston, Texas area incurred extensive water damage as a result of Hurricane Harvey. Until various times during the second quarter of 2018, these properties were temporarily closed and non-operational as we continued to reconstruct and restore them to an operational condition. As of June 30, 2018, reconstruction on all of the occupied space in these properties had been completed and operations had fully resumed.

During 2018, pursuant to the terms of a global settlement with our commercial property insurance carrier, we received $5.5 million of additional insurance recovery proceeds bringing the aggregate hurricane-related insurance recoveries to $12.5 million. The aggregate insurance proceeds recoveries, which were net of applicable deductibles, covered substantially all of the costs incurred related to the remediation, repair and reconstruction of each of these properties as well business interruption recoveries for the lost income related to each of these properties during the period they were non-operational.