Universal Health Realty Income Trust (UHT) 8-K Reports First Quarter 2005 Financial Results and Increases

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 21, 2005
	Vice President & Treasurer

UNIVERSAL HEALTH REALTY INCOME TRUST

REPORTS FIRST QUARTER 2005 FINANCIAL RESULTS AND INCREASES

QUARTERLY DIVIDEND BY 10%

Universal Health Realty Income Trust (NYSE:UHT) announced today that net income per diluted share for the quarter ended March 31, 2005 was $.64 compared to $.43 for the same period in the prior year. Favorably impacting net income and net income per diluted share during the first quarter ended March 31, 2005 is a gain on the sale of real property of approximately $1.1 million or $.09 per diluted share and $1.5 million or $.13 per diluted share related to the recovery of replacement costs of real estate assets at Wellington Regional Medical Center that were damaged by a hurricane during 2004. Unfavorably impacting net income and net income per diluted share during the quarter ended March 31, 2005 was a charge, included in interest expense, of approximately $300,000 or $.03 per diluted share related to an interest-rate swap agreement that became ineffective based upon the forecasted borrowings under our revolving credit facility.

Funds from operations (FFO) per diluted share for the quarter ended March 31, 2005 were $.61 compared to $.66 for the same period in the prior year. Included in the FFO per diluted share during the quarter ended March 31, 2005 is the charge of $.03 related to interest-rate swap ineffectiveness mentioned above. The first quarter dividend of $.505 per share was paid on March 31, 2005.

From time to time, our Board of Trustees has considered raising the amount of our quarterly dividend which has historically been more conservative than the healthcare REIT industry average. Today, our Board of Trustees voted to increase our quarterly dividend by $.05 per share to bring our dividend payout ratio in-line with the healthcare REIT industry average. A dividend of $.555 per share will be payable on May 31, 2005 to shareholders of record as of May 16, 2005. Since our inception, we have increased our annual dividend each year for eighteen consecutive years while maintaining our fundamental goal of providing a secure dividend stream to our shareholders. We recently received an expression of interest from another healthcare REIT in which it indicated that it believed it could provide greater value to our shareholders. The Board of Trustees reviewed the proposal and determined that, for various reasons, it was not in the best interest of the shareholders to pursue the proposal. However, in the course of its analysis

of the proposal, the Board of Trustees once again considered the amount of our dividend and determined that based upon anticipated future cash flows, an increase in the quarterly dividend would be appropriate to enhance shareholder value. It is expected that the next quarterly dividend will be declared on or about September 1st with a record date and payment date to be determined later.

At March 31, 2005, our shareholders’ equity was $156.4 million and our liabilities for borrowed funds were $38.8 million, including mortgage debt of consolidated entities, which is non-recourse to us, totaling $22.1 million.

Effective March 31, 2004, we adopted Financial Interpretation No. 46R (“FIN 46R”), “Consolidation of Variable Interest Entities”, an Interpretation of ARB No. 51. Consequently, the March 31, 2005 Consolidated Balance Sheet includes the: (i) assets; (ii) liabilities; (iii) third-party borrowings, which are non-recourse to us, and; (iv) minority interests, of three of our LLC investments that meet the criteria of a variable interest entity and where we are deemed to be the primary beneficiary. As a result of FIN 46R, our Consolidated Balance Sheet, as of March 31, 2005, includes assets of $39.4 million and borrowings, which are non-recourse to us, of $22.1 million. Also as a consequence of FIN 46R, beginning on April 1, 2004, we began consolidating the results of operations of these LLC investments on our Consolidated Statements of Income. Accordingly, for the three month period ended March 31, 2005, our Consolidated Statements of Income included $1.6 million of revenue, $294,000 of depreciation and amortization expense, $603,000 of other operating expenses and $426,000 of interest expense recorded in connection with the consolidation of these LLCs. There was no impact on our net income as a result of the consolidation of these LLCs.

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-three real estate investments in fifteen states.

Funds from operations, 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. A reconciliation of our reported net income to FFO is shown below.

The matters discussed in this report, as well as the news releases issued from time to time by us, include certain statements containing the words “believes”, “anticipates”, “intends”, “expects” and words of similar import, which constitute “forward-looking statements” within the

meaning of Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements or industry results to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Readers should not place undue reliance on such forward-looking statements which reflect management’s view only as of the date hereof. We undertake no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.

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Universal Health Realty Income Trust

Consolidated Statements of Income

For the Three Months Ended March 31, 2005 and 2004

(amounts in thousands, except per share amounts)

(unaudited)

	Three Months Ended March 31,
	2005			2004
Revenues:
Base rental - UHS facilities	$	3,373		$	2,870
Base rental - Non-related parties		2,795			2,270
Bonus rental - UHS facilities		1,223			1,262
Tenant reimbursements and other - Non-related parties		832			440
Tenant reimbursements and other - UHS facilities		268			—
		8,491			6,842
Expenses:
Depreciation and amortization		1,408			1,079
Advisory fees to UHS		355			374
Other operating expenses		1,574			789
		3,337			2,242
Income before equity in unconsolidated limited liability companies (“LLCs”), property damage recovered from UHS and interest expense		5,154			4,600
Equity in income of unconsolidated LLCs (including gain on sale of real property of $1,061 during the three month period ended March 31, 2005)		1,981			849
Property damage recovered from UHS		1,528			—
Interest expense		(1,083	)		(649	)
Income from continuing operations		7,580			4,800
Income from discontinued operations, net		—			248
Net income	$	7,580		$	5,048
Basic earnings per share:
From continuing operations	$	0.64		$	0.41
From discontinued operations	$	0.00		$	0.02
Total basic earnings per share	$	0.64		$	0.43
Diluted earnings per share:
From continuing operations	$	0.64		$	0.41
From discontinued operations	$	0.00		$	0.02
Total diluted earnings per share	$	0.64		$	0.43
Weighted average number of shares outstanding - Basic		11,756			11,737
Weighted average number of share equivalents		74			68
Weighted average number of shares and equivalents outstanding - Diluted		11,830			11,805
Calculation of Funds From Operations (“FFO”):
	Three Months Ended March 31,
	2005			2004
Net income	$	7,580		$	5,048
Plus: Depreciation and amortization expense:
Consolidated investments		1,345			1,103
Unconsolidated affiliates		895			1,610
Less: Gain on LLC’s sale of real property		(1,061	)		—
Property damage recovered from UHS		(1,528	)		—
Funds from operations (FFO)	$	7,231		$	7,761
Funds from operations (FFO) per share - Basic	$	0.62		$	0.66
Funds from operations (FFO) per share - Diluted	$	0.61		$	0.66
Dividend paid per share	$	0.505		$	0.495

Universal Health Realty Income Trust

Consolidated Balance Sheets

(dollar amounts in thousands)

(unaudited)

	March 31, 2005			December 31, 2004
Assets:
Real Estate Investments:
Buildings and improvements	$	193,886		$	189,859
Accumulated depreciation		(58,149	)		(56,803	)
		135,737			133,056
Land		23,143			23,143
Construction in progress		—			1,863
Net Real Estate Investments		158,880			158,062
Investments in and advances to limited liability companies (“LLCs”)		30,467			40,523
Other Assets:
Cash		7,239			3,588
Bonus rent receivable from UHS		1,223			1,128
Rent receivable - other		468			392
Deferred charges and other assets, net		961			890
Total Assets	$	199,238		$	204,583
Liabilities and Shareholders’ Equity:
Liabilities:
Line of credit borrowings	$	12,700		$	20,000
Mortgage note payable, non-recourse to us		4,055			4,083
Mortgage notes payable of consolidated LLCs, non-recourse to us		22,083			22,127
Accrued interest		392			417
Accrued expenses and other liabilities		1,876			1,902
Fair value of derivative instruments		709			1,059
Tenant reserves, escrows, deposits and prepaid rents		734			703
Total Liabilities		42,549			50,291
Minority interests		242			239
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: 2005 - 11,760,881; 2004 - 11,755,670		118			118
Capital in excess of par value		186,424			186,275
Cumulative net income		252,334			244,754
Accumulated other comprehensive loss		(392	)		(994	)
Cumulative dividends		(282,037	)		(276,100	)
Total Shareholders’ Equity		156,447			154,053
Total Liabilities and Shareholders’ Equity	$	199,238		$	204,583