798783--3/15/2006--UNIVERSAL_HEALTH_REALTY_INCOME

related topics

{investment, property, distribution}

{capital, credit, financial}

{loan, real, estate}

{stock, price, operating}

{tax, income, asset}

{operation, natural, condition}

{provision, law, control}

{customer, product, revenue}

{regulation, government, change}

{personnel, key, retain}

{loss, insurance, financial}

A substantial portion of our revenues are dependent upon one operator. If UHS experiences financial difficulties, or otherwise fails to make payments to us, our revenues will significantly decline. Our relationship with UHS may create conflicts of interest. One of our properties suffered substantial damage due to Hurricane Katrina and we cannot guarantee the performance of any substitute property. We hold majority, non-controlling equity ownership interests in various LLCs. We cannot be certain of the availability and terms of external sources of capital to fund the growth of our business when needed. The bankruptcy, default, insolvency or financial deterioration of our tenants could significantly delay our ability to collect unpaid rents or require us to find new operators. Real estate ownership creates risks and liabilities that may result in unanticipated losses or expenses. Significant potential liabilities and rising insurance costs and availability may have an adverse effect on the operations of our operators, which may negatively impact their ability to meet their obligations to us. Increased competition in the health care industry has resulted in lower revenues and higher costs for our operators, including UHS, and may affect our revenues, property values and lease renewal terms. Operators that fail to comply with governmental reimbursement programs such as Medicare or Medicaid, licensing and certification requirements, fraud and abuse regulations or new legislative developments may be unable to meet their obligations to us. If we fail to maintain our REIT status, we will become subject to federal income tax on our taxable income at regular corporate rates. The market value of our common stock could be substantially affected by various factors. Ownership limitations and anti-takeover provisions in our declaration of trust and bylaws and under Maryland law may delay, defer or prevent a change in control or other transactions that could provide shareholders with a take-over premium. We are subject to significant anti-takeover provisions. We depend heavily on key management personnel and the departure of one or more of our key executives or a significant portion of our operators local hospital management personnel could harm our business. Increasing investor interest in our sector and consolidation at the operator or REIT level could increase competition and reduce our profitability.

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798783--3/15/2006--UNIVERSAL_HEALTH_REALTY_INCOME_TRUST