Physicians Realty Trust Reports Third Quarter 2021 Financial Results
Announces $0.10 Net Income per Share and $0.26 Normalized FFO per Share for the Third Quarter of 2021
Announces $1.04 Billion of Year-to-Date Acquisitions and Investment Commitments
Third Quarter Highlights:
- Reported third quarter 2021 total revenue of $115.3 million, an increase of 5.2% over the prior year period.
- Generated third quarter net income per share of $0.10 on a fully diluted basis.
- Generated third quarter Normalized Funds From Operations (Normalized FFO) of $0.26 per share on a fully diluted basis.
- New investments of $108.9 million during the third quarter.
- Third quarter MOB Same-Store Cash Net Operating Income growth was 2.5% year-over-year.
- Declared a quarterly dividend of $0.23 per share and OP Unit for the third quarter 2021, paid October 15, 2021.
- Senior unsecured debt rating was upgraded to ‘Baa2’ from ‘Baa3’ by Moody’s Investors Service.
Subsequent Event Highlights:
- Entered into a master transaction agreement on October 1, 2021 to acquire 15 medical office buildings comprising approximately 1,460,000 net leasable square feet for an aggregate purchase price of $764.3 million.
- Issued $500 million of public senior notes on October 13, 2021, with maturity of 10 years and a coupon rate of 2.625%.
- Earned a score of 75 and a Green Star designation in our inaugural submission to the GRESB 2021 Real Estate Assessment.
- Disposed of the three LifeCare long term acute care hospitals (LTACH) on November 2, 2021 for $62.0 million and recognized a net gain on sale of approximately $18.7 million.
MILWAUKEE–(BUSINESS WIRE)–Physicians Realty Trust (NYSE: DOC) (the “Company,” the “Trust,” “we,” “our” and “us”), a self-managed health care real estate investment trust, today announced results for the third quarter ended September 30, 2021.
John T. Thomas, President and Chief Executive Officer of the Trust, commented, “We are excited to announce our recent acquisitions and pending acquisition activity. We have continued to focus our growth efforts on high-quality medical office facilities and purchase what we believe are the most highly regarded medical office facilities, all while continuing to make selective acquisitions in off-market transactions with partners like Landmark Healthcare Facilities.
“We are also proud to earn recognition in Modern Healthcare’s 2021 Best Places to Work and to have earned a score of 75 in our inaugural submission to GRESB’s 2021 Real Estate Assessment. We are continuously working to Invest in better® and this is an indication of all of our hard work. We look forward to sharing more about our achievements, pending acquisitions, and third quarter performance during today’s conference call,” Mr. Thomas concluded.
Third Quarter Financial Results
Total revenue for the third quarter ended September 30, 2021 was $115.3 million, an increase of 5.2% from the third quarter 2020. As of September 30, 2021, the portfolio was 95% leased, excluding assets classified as held for sale.
Total expenses for the third quarter 2021 were $97.6 million, compared to total expenses of $92.5 million for the third quarter 2020.
Net income for the third quarter 2021 was $22.0 million, compared to net income of $16.5 million for the third quarter 2020.
Net income attributable to common shareholders for the third quarter 2021 was $21.4 million. Diluted earnings per share for the third quarter 2021 was $0.10 based on approximately 224.0 million weighted average common shares and operating partnership units (OP Units) outstanding.
Funds From Operations (FFO) totaled $58.1 million for the third quarter 2021 and consisted of net income plus depreciation and amortization on our consolidated portfolio of $38.5 million and our unconsolidated joint ventures of $2.2 million and an impairment loss of $0.3 million. This was partially offset by a $4.8 million gain on the sale of investment properties and $0.2 million of other adjustments, resulting in FFO of $0.26 per share on a fully diluted basis. Normalized FFO had no additional adjustments and was also $58.1 million, or $0.26 per share on a fully diluted basis.
Normalized Funds Available for Distribution (FAD) for the third quarter 2021, which consists of normalized FFO adjusted for non-cash share compensation, straight-line rent adjustments, amortization of acquired above-market and below-market leases and assumed debt, amortization of lease inducements, amortization of deferred financing costs, recurring capital expenditures, loan reserve adjustments, and our share of adjustments from unconsolidated investments was $54.6 million.
Our Medical Office Building (MOB) Same-Store portfolio, which includes 245 properties representing approximately 94% of our consolidated leasable square footage, generated year-over-year MOB Same-Store Cash Net Operating Income (Cash NOI) growth of 2.5% for the third quarter 2021.
Other Recent Events
Third Quarter Investment Activity
Since our August 4, 2021 press release and through September 30, 2021, the Company has acquired six health care facilities, acquired a membership interest in one joint venture, funded one mezzanine loan for $2.2 million, and also funded a previous construction loan commitment of $1.5 million.
InterMed MOB – Davis Joint Venture – On August 18, 2021, the Company contributed approximately $7.3 million to acquire a 49% interest in a 107,228 square foot medical office facility located in Portland, Maine that is 100% leased to its original tenants, with a weighted average remaining lease term of 7.1 years. This investment is valued at approximately $19.3 million, including the Company’s pro rata share of joint venture debt. The first year unlevered yield on this investment is expected to be approximately 5.5%.
Atkins Portfolio (5 MOBs) – On August 30, 2021, the Company completed the acquisition of a five property health care portfolio comprised of 180,418 square feet located in four states, for an aggregate purchase price of approximately $54.1 million. The portfolio is 100% leased, with 60% leased to investment-grade tenants, and a weighted average remaining lease term of 5.9 years. Each of the properties is affiliated with a health system, with tenant specialties including an ambulatory surgery center, orthopedics, imaging, oncology, neurology, and cardiology. The first year unlevered yield on this investment is expected to be approximately 5.5%.
HonorHealth – Sonoran MOB – On September 23, 2021, the Company completed the acquisition of a newly constructed 59,827 square foot medical office facility located in Phoenix, Arizona for a purchase price of approximately $31.8 million. This property is connected to HonorHealth’s (Moody’s: A2) 70-bed Sonoran Crossing Medical Center and is 100% leased, with 93% leased to HonorHealth. The property has a weighted average remaining lease term of 7.1 years and includes services such as an on-site endoscopy surgery center and cardiology. The first year unlevered yield on this investment is expected to be approximately 4.8%.
Third Quarter Disposition Activity and Held for Sale Assets
During the third quarter 2021, the Company completed the disposition of two hospital-leased administrative properties for approximately $27.4 million and recognized a net gain of approximately $4.8 million representing an exit cash cap rate of 5.5% based on in-place NOI and generating an unlevered rate of return of 14% during the Company’s ownership.
As of September 30, 2021, the Company classified four assets as held for sale, including each of the Company’s three LTACH properties.
Capital Activity
On September 24, 2021, the Company executed a Third Amended and Restated Credit Agreement (the “Credit Agreement”) to extend the maturity date in respect of the revolving credit facility from September 18, 2022 to September 24, 2025, reduce the interest rate margins, increase the amount of commitments under the revolving credit facility from $850.0 million to $1.0 billion, and modify certain covenants and terms thereunder to provide the Company with greater flexibility.
On October 13, 2021, the Operating Partnership issued and sold $500.0 million aggregate principal amount of 2.625% senior notes which will mature on November 1, 2031. The senior notes were sold at an issue price of 99.789% of their face value, before the underwriters’ discount. The Company’s net proceeds from the offering, after deducting underwriting discounts and expenses, were approximately $495.1 million.
On October 13, 2021, the Company used the proceeds from the senior notes to pay off the existing balance of the unsecured revolving credit facility and the term loan feature of the Credit Agreement. The Operating Partnership simultaneously terminated each of the existing pay-fixed receive-variable rate swaps associated with the term loan borrowing.
Since September 30, 2021, the Company issued 2,877,988 shares pursuant to its 2021 ATM program at a weighted average price of $18.61 for net proceeds of $53.0 million.
Dividend Paid
On September 22, 2021, our Board of Trustees authorized and declared a cash distribution of $0.23 per common share and OP Unit for the quarterly period ended September 30, 2021. The dividend was paid on October 15, 2021 to common shareholders and OP Unit holders of record as of the close of business on October 4, 2021.
Credit Rating Upgrades
On July 1, 2021, Moody’s Investors Service upgraded each of the Company’s senior unsecured debt ratings to ‘Baa2’ with a stable outlook, from the previous rating of ‘Baa3’.
Pending Acquisitions and Recent Acquisition Activity
On October 1, 2021, the Company entered into a master transaction agreement with Landmark Healthcare Companies LLC to acquire 15 medical office buildings comprising approximately 1,460,000 net leasable square feet (the “Landmark Portfolio”). Subject to the satisfaction of certain conditions to closing, the Company expects to complete the acquisition of the Landmark Portfolio in the fourth quarter of 2021. There can be no assurance that any or all of the conditions to closing will be satisfied or, if satisfied, that the Company will complete the acquisition of the Landmark Portfolio in a timely manner or at all.
Since September 30, 2021, the Company has completed the acquisition of one medical office facility and the remaining 51% membership interest in one of our joint ventures.
MedCore Realty Eden Hill, LLC – On October 15, 2021, the Company contributed $33.2 million to acquire the remaining 51% membership interest in a 140,205 square foot medical office facility that is 95% leased and is located in Dover, Delaware. The stabilized yield on this investment is expected to be approximately 5.0%.
HonorHealth Neuroscience Institute – On October 27, 2021, the Company completed the acquisition of a 109,423 square foot medical office facility located in Scottsdale, Arizona for a purchase price of approximately $67.3 million. This newly constructed facility is located on the HonorHealth (Moody’s: A2) 325-bed Scottsdale Osborn Medical Center campus and includes services such as neurology, physical medicine and rehabilitation, therapy, and an infusion center. The stabilized yield on this investment is expected to be approximately 4.5%.
On November 2, 2021, the Company sold the LifeCare portfolio, which included three LTACH properties, for approximately $62.0 million and recognized a net gain on the sale of approximately $18.7 million, generating an unlevered rate of return of 9%. These assets were also classified as held for sale as of September 30, 2021.
Modern Healthcare – Best Places to Work
The Company has been included in Modern Healthcare’s 2021 Best Places to Work and recognized as the highest-rated health care real estate provider among the honorees. Based on extensive and anonymous team member survey results, these prestigious nationwide rankings are the gold standard in the health care industry for recognizing workplaces that empower employees to provide patients and customers the best possible care, products, and services.
Conference Call Information
The Company has scheduled a conference call on Friday, November 5, 2021, at 10:00 a.m. ET to discuss its financial performance and operating results for the third quarter ended September 30, 2021. The conference call can be accessed by dialing (877) 407-0784 from within the U.S. or (201) 689-8560 for international callers. Participants can reference the Physicians Realty Trust Third Quarter Earnings Call or passcode: 13723133. The conference call also will be available via a live listen-only webcast and can be accessed through the Investor Relations section of the Company’s website, www.docreit.com. A replay of the conference call will be available beginning November 5, 2021, at 1:00 p.m. ET until December 5, 2021, at 11:59 p.m. ET, by dialing (844) 512-2921 (U.S.) or (412) 317-6671 (International); passcode: 13723133. A replay of the webcast also will be accessible on the Investor Relations website for one year following the event. Beginning November 5, 2021, the Company’s supplemental information package for the third quarter 2021 will be accessible through the Investor Relations section of the Company’s website under the “Supplemental” tab.
About Physicians Realty Trust
Physicians Realty Trust is a self-managed health care real estate company organized to acquire, selectively develop, own and manage health care properties that are leased to physicians, hospitals and health care delivery systems. The Company invests in real estate that is integral to providing high quality health care. The Company conducts its business through an UPREIT structure in which its properties are owned by Physicians Realty L.P., a Delaware limited partnership (the “operating partnership”), directly or through limited partnerships, limited liability companies or other subsidiaries. The Company is the sole general partner of the operating partnership and, as of September 30, 2021, owned approximately 97.6% of OP Units.
Investors are encouraged to visit the Investor Relations portion of the Company’s website (www.docreit.com) for additional information, including annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, press releases, supplemental information packages and investor presentations.
Forward-Looking Statements
This press release contains statements that are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “anticipate”, “believe”, “expect”, “estimate”, “plan”, “outlook”, “continue”, “intend”, and “project” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements may include statements regarding the Company’s strategic and operational plans, the Company’s ability to generate internal and external growth, the future outlook, anticipated cash returns, cap rates or yields on properties, anticipated closing of property acquisitions, ability to execute its business plan, and the impact of the Coronavirus and its variants, including the Delta variant and any future variants which may emerge, (COVID-19) pandemic on the Company’s business. While forward-looking statements reflect our good faith beliefs, they are not guarantees of future performance. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on information available at the time those statements are made and/or management’s good faith belief as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. These forward-looking statements are subject to various risks and uncertainties, not all of which are known to the Company and many of which are beyond the Company’s control, which could cause actual results to differ materially from such statements. These risks and uncertainties are described in greater detail in the Company’s filings with the Securities and Exchange Commission (the “Commission”), including, without limitation, the Company’s annual and periodic reports and other documents filed with the Commission. Unless legally required, the Company disclaims any obligation to update any forward-looking statements after the date of this release, whether as a result of new information, future events or otherwise. For a discussion of factors that could impact the Company’s results, performance, or transactions, see Part I, Item 1A (Risk Factors) of the Company’s Annual Report on Form 10-K/A for the fiscal year ended December 31, 2020.
| Physicians Realty Trust Condensed Consolidated Statements of Income (in thousands, except share and per share data) (Unaudited) | |||||||||||||||
|
| Three Months Ended September 30, |
| Nine Months Ended September 30, | ||||||||||||
|
| 2021 |
|
| 2020 |
|
| 2021 |
|
| 2020 |
| ||||
| Revenues: |
|
|
|
|
|
|
| ||||||||
| Rental revenues | $ | 81,096 |
|
| $ | 78,091 |
|
| $ | 242,062 |
|
| $ | 235,762 |
|
| Expense recoveries | 29,218 |
|
| 26,271 |
|
| 83,955 |
|
| 76,099 |
| ||||
| Rental and related revenues | 110,314 |
|
| 104,362 |
|
| 326,017 |
|
| 311,861 |
| ||||
| Interest income on real estate loans and other | 4,997 |
|
| 5,204 |
|
| 15,558 |
|
| 14,199 |
| ||||
| Total revenues | 115,311 |
|
| 109,566 |
|
| 341,575 |
|
| 326,060 |
| ||||
| Expenses: |
|
|
|
|
|
|
| ||||||||
| Interest expense | 13,498 |
|
| 13,698 |
|
| 40,754 |
|
| 43,521 |
| ||||
| General and administrative | 9,534 |
|
| 8,346 |
|
| 28,116 |
|
| 25,565 |
| ||||
| Operating expenses | 35,679 |
|
| 32,503 |
|
| 103,069 |
|
| 94,495 |
| ||||
| Depreciation and amortization | 38,582 |
|
| 37,952 |
|
| 114,663 |
|
| 111,744 |
| ||||
| Impairment loss | 340 |
|
| — |
|
| 340 |
|
| — |
| ||||
| Total expenses | 97,633 |
|
| 92,499 |
|
| 286,942 |
|
| 275,325 |
| ||||
| Income before equity in loss of unconsolidated entities and gain on sale of investment properties, net: | 17,678 |
|
| 17,067 |
|
| 54,633 |
|
| 50,735 |
| ||||
| Equity in loss of unconsolidated entities | (390 | ) |
| (592 | ) |
| (1,213 | ) |
| (856 | ) | ||||
| Gain on sale of investment properties, net | 4,757 |
|
| — |
|
| 5,111 |
|
| — |
| ||||
| Net income | 22,045 |
|
| 16,475 |
|
| 58,531 |
|
| 49,879 |
| ||||
| Net income attributable to noncontrolling interests: |
|
|
|
|
|
|
| ||||||||
| Operating Partnership | (529 | ) |
| (425 | ) |
| (1,405 | ) |
| (1,305 | ) | ||||
| Partially owned properties (1) | (152 | ) |
| (151 | ) |
| (455 | ) |
| (441 | ) | ||||
| Net income attributable to controlling interest | 21,364 |
|
| 15,899 |
|
| 56,671 |
|
| 48,133 |
| ||||
| Preferred distributions | — |
|
| (317 | ) |
| (13 | ) |
| (951 | ) | ||||
| Net income attributable to common shareholders | $ | 21,364 |
|
| $ | 15,582 |
|
| $ | 56,658 |
|
| $ | 47,182 |
|
| Net income per share: |
|
|
|
|
|
|
| ||||||||
| Basic | $ | 0.10 |
|
| $ | 0.07 |
|
| $ | 0.26 |
|
| $ | 0.23 |
|
| Diluted | $ | 0.10 |
|
| $ | 0.07 |
|
| $ | 0.26 |
|
| $ | 0.23 |
|
| Weighted average common shares: |
|
|
|
|
|
|
| ||||||||
| Basic | 217,406,657 |
|
| 208,187,129 |
|
| 214,616,482 |
|
| 202,717,190 |
| ||||
| Diluted | 223,992,049 |
|
| 215,129,968 |
|
| 221,399,649 |
|
| 209,555,060 |
| ||||
|
|
|
|
|
|
|
|
| ||||||||
| Dividends and distributions declared per common share | $ | 0.23 |
|
| $ | 0.23 |
|
| $ | 0.69 |
|
| $ | 0.69 |
|
| (1) | Includes amounts attributable to redeemable noncontrolling interests. |
| Physicians Realty Trust Condensed Consolidated Balance Sheets (in thousands, except share and per share data) (Unaudited) | |||||||
|
|
|
|
| ||||
|
| September 30, |
| December 31, | ||||
|
| 2021 |
|
| 2020 |
| ||
| ASSETS |
|
|
| ||||
| Investment properties: |
|
|
| ||||
| Land and improvements | $ | 231,162 |
|
| $ | 231,621 |
|
| Building and improvements | 3,879,810 |
|
| 3,824,796 |
| ||
| Tenant improvements | 81,605 |
|
| 73,145 |
| ||
| Acquired lease intangibles | 409,048 |
|
| 406,935 |
| ||
|
| 4,601,625 |
|
| 4,536,497 |
| ||
| Accumulated depreciation | (779,910 | ) |
| (687,554 | ) | ||
| Net real estate property | 3,821,715 |
|
| 3,848,943 |
| ||
| Real estate held for sale | 44,706 |
|
| — |
| ||
| Right-of-use lease assets, net | 141,967 |
|
| 137,180 |
| ||
| Real estate loans receivable, net | 181,125 |
|
| 198,800 |
| ||
| Investments in unconsolidated entities | 78,562 |
|
| 77,755 |
| ||
| Net real estate investments | 4,268,075 |
|
| 4,262,678 |
| ||
| Cash and cash equivalents | 5,366 |
|
| 2,515 |
| ||
| Tenant receivables, net | 5,545 |
|
| 4,757 |
| ||
| Other assets | 130,489 |
|
| 144,000 |
| ||
| Total assets | $ | 4,409,475 |
|
| $ | 4,413,950 |
|
| LIABILITIES AND EQUITY |
|
|
| ||||
| Liabilities: |
|
|
| ||||
| Credit facility | $ | 401,548 |
|
| $ | 412,322 |
|
| Notes payable | 969,313 |
|
| 968,653 |
| ||
| Mortgage debt | 50,042 |
|
| 57,875 |
| ||
| Accounts payable | 5,760 |
|
| 7,007 |
| ||
| Dividends and distributions payable | 53,730 |
|
| 52,116 |
| ||
| Accrued expenses and other liabilities | 79,621 |
|
| 91,929 |
| ||
| Lease liabilities | 78,682 |
|
| 74,116 |
| ||
| Acquired lease intangibles, net | 5,829 |
|
| 6,641 |
| ||
| Total liabilities | 1,644,525 |
|
| 1,670,659 |
| ||
|
|
|
|
| ||||
| Redeemable noncontrolling interests – Series A Preferred Units (2020) and partially owned properties | 7,039 |
|
| 28,289 |
| ||
|
|
|
|
| ||||
| Equity: |
|
|
| ||||
| Common shares, $0.01 par value, 500,000,000 common shares authorized, 217,409,035 and 209,550,592 common shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively | 2,174 |
|
| 2,096 |
| ||
| Additional paid-in capital | 3,443,748 |
|
| 3,303,231 |
| ||
| Accumulated deficit | (751,150 | ) |
| (658,171 | ) | ||
| Accumulated other comprehensive loss | (4,054 | ) |
| (5,859 | ) | ||
| Total shareholders’ equity | 2,690,718 |
|
| 2,641,297 |
| ||
| Noncontrolling interests: |
|
|
| ||||
| Operating Partnership | 66,736 |
|
| 73,302 |
| ||
| Partially owned properties | 457 |
|
| 403 |
| ||
| Total noncontrolling interests | 67,193 |
|
| 73,705 |
| ||
| Total equity | 2,757,911 |
|
| 2,715,002 |
| ||
| Total liabilities and equity | $ | 4,409,475 |
|
| $ | 4,413,950 |
|
| Physicians Realty Trust Reconciliation of Non-GAAP Measures (in thousands, except share and per share data) (Unaudited) | |||||||
|
| Three Months Ended September 30, | ||||||
|
| 2021 |
|
| 2020 |
| ||
| Net income | $ | 22,045 |
|
| $ | 16,475 |
|
| Earnings per share – diluted | $ | 0.10 |
|
| $ | 0.07 |
|
|
|
|
|
| ||||
| Net income | $ | 22,045 |
|
| $ | 16,475 |
|
| Net income attributable to noncontrolling interests – partially owned properties | (152 | ) |
| (151 | ) | ||
| Preferred distributions | — |
|
| (317 | ) | ||
| Depreciation and amortization expense | 38,463 |
|
| 37,855 |
| ||
| Depreciation and amortization expense – partially owned properties | (70 | ) |
| (69 | ) | ||
| Gain on sale of investment properties, net | (4,757 | ) |
| — |
| ||
| Impairment loss | 340 |
|
| — |
| ||
| Proportionate share of unconsolidated joint venture adjustments | 2,226 |
|
| 1,876 |
| ||
| FFO applicable to common shares | $ | 58,095 |
|
| $ | 55,669 |
|
| Net change in fair value of derivative | — |
|
| (14 | ) | ||
| Net change in fair value of contingent consideration | — |
|
| (715 | ) | ||
| Normalized FFO applicable to common shares | $ | 58,095 |
|
| $ | 54,940 |
|
|
|
|
|
| ||||
| FFO per common share | $ | 0.26 |
|
| $ | 0.26 |
|
| Normalized FFO per common share | $ | 0.26 |
|
| $ | 0.26 |
|
|
|
|
|
| ||||
| Normalized FFO applicable to common shares | $ | 58,095 |
|
| $ | 54,940 |
|
| Non-cash share compensation expense | 3,665 |
|
| 3,114 |
| ||
| Straight-line rent adjustments | (2,171 | ) |
| (2,618 | ) | ||
| Amortization of acquired above/below-market leases/assumed debt | 833 |
|
| 816 |
| ||
| Amortization of lease inducements | 394 |
|
| 289 |
| ||
| Amortization of deferred financing costs | 581 |
|
| 595 |
| ||
| TI/LC and recurring capital expenditures | (6,673 | ) |
| (5,345 | ) | ||
| Loan reserve adjustments | 20 |
|
| 138 |
| ||
| Proportionate share of unconsolidated joint venture adjustments | (153 | ) |
| (72 | ) | ||
| Normalized FAD applicable to common shares | $ | 54,591 |
|
| $ | 51,857 |
|
|
|
|
|
| ||||
| Weighted average number of common shares outstanding | 223,992,049 |
|
| 215,129,968 |
| ||
|
| Three Months Ended September 30, | ||||||
|
| 2021 |
|
| 2020 |
| ||
| Net income | $ | 22,045 |
|
| $ | 16,475 |
|
| General and administrative | 9,534 |
|
| 8,346 |
| ||
| Depreciation and amortization expense | 38,582 |
|
| 37,952 |
| ||
| Interest expense | 13,498 |
|
| 13,698 |
| ||
| Net change in the fair value of derivative | — |
|
| (14 | ) | ||
| Gain on sale of investment properties, net | (4,757 | ) |
| — |
| ||
| Impairment loss | 340 |
|
| — |
| ||
| Proportionate share of unconsolidated joint venture adjustments | 3,653 |
|
| 2,753 |
| ||
| NOI | $ | 82,895 |
|
| $ | 79,210 |
|
|
|
|
|
| ||||
| NOI | $ | 82,895 |
|
| $ | 79,210 |
|
| Straight-line rent adjustments | (2,171 | ) |
| (2,618 | ) | ||
| Amortization of acquired above/below-market leases | 849 |
|
| 832 |
| ||
| Amortization of lease inducements | 394 |
|
| 289 |
| ||
| Loan reserve adjustments | 20 |
|
| 138 |
| ||
| Change in fair value of contingent consideration | — |
|
| (715 | ) | ||
| Proportionate share of unconsolidated joint venture adjustments | (143 | ) |
| (35 | ) | ||
| Cash NOI | $ | 81,844 |
|
| $ | 77,101 |
|
|
|
|
|
| ||||
| Cash NOI | $ | 81,844 |
|
| $ | 77,101 |
|
| Assets not held for all periods or held for sale | (3,801 | ) |
| (2,198 | ) | ||
| Hospital Cash NOI | (3,221 | ) |
| (3,158 | ) | ||
| Lease termination fees | (158 | ) |
| (53 | ) | ||
| Interest income on real estate loans | (3,797 | ) |
| (3,190 | ) | ||
| Joint ventures and other income | (3,350 | ) |
| (2,650 | ) | ||
| MOB Same-Store Cash NOI | $ | 67,517 |
|
| $ | 65,852 |
|
Contacts
Physicians Realty Trust
John T. Thomas
President and CEO
(214) 549-6611
jtt@docreit.com
Jeffrey N. Theiler
Executive Vice President and CFO
(414) 367-5610
jnt@docreit.com
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