Universal Health Realty Income Trust (UHT) 8-K Reports First Quarter 2004 Financial Results

EXHIBIT 99.1

UNIVERSAL HEALTH REALTY INCOME TRUST	Universal Corporate Center
	367 S. Gulph Road
	P.O. Box 61558
	King of Prussia, PA 19406
	(610) 265-0688

FOR IMMEDIATE RELEASE

CONTACT:	Cheryl K. Ramagano	April 19, 2004
	Vice President & Treasurer

UNIVERSAL HEALTH REALTY INCOME TRUST

REPORTS FIRST QUARTER 2004 FINANCIAL RESULTS

Universal Health Realty Income Trust (NYSE:UHT) announced today that net income per diluted share for the quarter ended March 31, 2004 was $.43 compared to $.48 for the same period in the prior year. Included in the net income per diluted share for the first quarter ended March 31, 2003 was a gain on the sale of real property of $365,000 or $.03 per diluted share.

Funds from operations (FFO) per diluted share for the quarter ended March 31, 2004 were $.66 compared to $.63 for the same period in the prior year. The first quarter dividend of $.495 per share was paid on March 31, 2004 and represents a dividend payout ratio of 75% of FFO.

Effective March 31, 2004, we adopted Financial Interpretation No. 46R (“FIN 46R”), “Consolidation of Variable Interest Entities”, an Interpretation of ARB No. 51. As a result, the March 31, 2004 Balance Sheet has been adjusted to include the assets, liabilities and third-party borrowings which are non-recourse to us and the minority interests of three of our limited liability company (“LLC”) investments that meet the criteria of a variable interest entity and where we are the primary beneficiary. As a result of FIN 46R total assets of $39.5 million and borrowings which are non-recourse to us of $22.5 million were recorded on March 31, 2004.

Universal Health Realty Income Trust, a real estate investment trust, invests in healthcare and human service related facilities including acute care hospitals, behavioral healthcare facilities, rehabilitation hospitals, sub-acute care facilities, surgery centers, childcare centers and medical office buildings. We have forty-four real estate investments in fifteen states.

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Funds from operations (“FFO”), is a widely recognized measure of REIT performance. Although FFO is a non-GAAP financial measure, we believe that information regarding FFO is helpful to shareholders and potential investors. We compute FFO in accordance with standards established by the National Association of Real Estate Investment Trusts (“NAREIT”), which may not be comparable to FFO reported by other REITs that do not compute FFO in accordance with the NAREIT definition, or that interpret the NAREIT definition differently than we interpret the definition. To facilitate a clear understanding of our historical operating results, FFO should be examined in conjunction with net income, determined in accordance with GAAP. FFO does not represent cash generated from operating activities in accordance with GAAP and should not be considered to be an alternative to net income, determined in accordance with GAAP. In addition, FFO should not be used as: (i) an indication of our financial performance determined in accordance with GAAP; (ii) as an alternative to cash flow from operating activities determined in accordance with GAAP; (iii) as a measure of our liquidity; (iv) nor is FFO an indicator of funds available for our cash needs, including our ability to make cash distributions to shareholders.

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Universal Health Realty Income Trust

Statements of Income

For the Three Months Ended March 31, 2004 and 2003

(amounts in thousands, except per share amounts)

(unaudited)

	Three Months Ended March 31,
	2004			2003
Revenues:
Base rental - UHS facilities	$	3,185		$	3,253
Base rental, tenant reimbursements and other - Non-related parties		2,710			2,732
Bonus rental - UHS facilities		1,262			1,208
		7,157			7,193
Expenses:
Depreciation & amortization		1,146			1,112
Advisory fees to UHS		374			350
Other operating expenses		789			827
		2,309			2,289
Income before equity in limited liability companies (“LLCs”) and interest expense		4,848			4,904
Equity in income of LLCs (including gain on sale of real property of $365 in 2003)		849			1,386
Interest expense		(649	)		(620	)
Net income	$	5,048		$	5,670
Net income per share - Basic	$	0.43		$	0.48
Net income per share - Diluted	$	0.43		$	0.48
Weighted average number of shares outstanding - Basic		11,737			11,700
Weighted average number of share equivalents		68			65
Weighted average number of shares and equivalents - Diluted		11,805			11,765
	Three Months Ended March 31,
	2004			2003
Net income	$	5,048		$	5,670
Plus: Depreciation and amortization expense:
Consolidated investments		1,103			1,099
Unconsolidated affiliates		1,610			986
Less: Gain on LLC’s sale of real property		0			(365	)
Funds from operations (FFO)	$	7,761		$	7,390
Funds from operations (FFO) per share - Basic	$	0.66		$	0.63
Funds from operations (FFO) per share - Diluted	$	0.66		$	0.63
Dividend paid per share	$	0.495		$	0.485

Universal Health Realty Income Trust

Consolidated Balance Sheets

(dollar amounts in thousands)

	March 31, 2004			December 31, 2003
Assets:
Real Estate Investments:
Buildings and improvements	$	201,706		$	160,079
Accumulated depreciation		(58,615	)		(52,219	)
		143,091			107,860
Land		24,913			22,929
Net Real Estate Investments		168,004			130,789
Investments in and advances to limited liability companies (“LLCs”)		45,012			61,001
Other Assets:
Cash		1,106			628
Bonus rent receivable from UHS		1,209			1,093
Rent receivable from non-related parties		421			107
Deferred charges and other assets, net		917			673
Total Assets	$	216,669		$	194,291
Liabilities and Shareholders’ Equity:
Liabilities:
Bank borrowings	$	37,166		$	37,242
Borrowings of consolidated, jointly-owned LLCs, non-recourse to the Trust		22,460			—
Accrued interest		520			310
Accrued expenses and other liabilities		1,748			1,826
Fair value of derivative instruments		2,202			2,254
Tenant reserves, escrows, deposits and prepaid rents		672			461
Minority interests		244			—
Total Liabilities		65,012			42,093
Shareholders’ Equity:
Preferred shares of beneficial interest, $.01 par value; 5,000,000 shares authorized; none outstanding		—			—
Common shares, $.01 par value; 95,000,000 shares authorized; issued and outstanding: 2004 - 11,741,184; 2003 - 11,736,395		117			117
Capital in excess of par value		185,834			185,675
Cumulative net income		226,131			221,083
Accumulated other comprehensive loss		(2,003	)		(2,065	)
Cumulative dividends		(258,422	)		(252,612	)
Total Shareholders’ Equity		151,657			152,198
Total Liabilities and Shareholders’ Equity	$	216,669		$	194,291