UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): May 19, 2011
UNIVERSAL HEALTH REALTY INCOME TRUST
(Exact name of registrant as specified in its charter)
| Maryland | 1-9321 | 23-6858580 | ||
| (State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
| Universal Corporate Center 367 South Gulph Road King of Prussia, Pennsylvania |
19406 | |
| (Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code: (610) 265-0688
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 1.01 Entry into a Material Definitive Agreement.
Certain subsidiaries of Universal Health Services, Inc. (“UHS”) lease four of our hospital facilities, the terms on three of which were scheduled to expire in December, 2011. Pursuant to the Master Lease Document by and among us and certain subsidiaries of UHS, which govern the leases on these hospital properties, the subsidiaries of UHS have the option to, among other things, renew the leases for additional 5-year terms at the existing lease rates.
On May 19, 2011, certain subsidiaries of UHS provided the required notice to us exercising the 5-year renewal options on the following hospital facilities which extended the existing lease terms to December, 2016:
| • | McAllen Medical Center |
| • | Wellington Regional Medical Center |
| • | Southwest Healthcare System – Inland Valley Campus |
The table below details the existing lease terms and renewal options for each of the UHS hospital facilities, giving effect to the above-mentioned renewals:
| Hospital Name |
Type of Facility |
Annual Minimum Rent |
End of Lease Term | Renewal Term (years) |
||||||||||
| McAllen Medical Center |
Acute Care | $ | 5,485,000 | December, 2016 | 15 | (a) | ||||||||
| Wellington Regional Medical Center |
Acute Care | $ | 3,030,000 | December, 2016 | 15 | (b) | ||||||||
| Southwest Healthcare System, Inland Valley Campus |
Acute Care | $ | 2,648,000 | December, 2016 | 15 | (b) | ||||||||
| The Bridgeway |
Behavioral Health | $ | 930,000 | December, 2014 | 10 | (c) | ||||||||
| (a) | UHS has three 5-year renewal options at existing lease rates (through 2031). |
| (b) | UHS has one 5-year renewal options at existing lease rates (through 2021) and two 5-year renewal options at fair market value lease rates (2022 through 2031). |
| (c) | UHS has two 5-year renewal options at fair market value lease rates (2015 through 2024). |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| UNIVERSAL HEALTH REALTY INCOME TRUST | ||||
| Date: May 20, 2011 |
By: | /s/ Charles F. Boyle | ||
| Name: | Charles F. Boyle | |||
| Title: | Vice President and Chief Financial Officer | |||