Contact: Jeff Dardis, (414) 319-5700, jeffdardis@zizzogroup.com
John Thomas, (214) 549-6611
Over $1.4 billion of Medical Office Acquisitions and investments in 26 months
MILWAUKEE – (Oct. 21, 2015) – Physicians Realty Trust (NYSE:DOC) (the “Company”),
headquartered in Milwaukee’s Third Ward, recently announced that the Company has
completed more than $688 million of investments in medical real estate in 2015 and the
Company’s gross real estate assets now exceed $1.5 billion (based on purchase price).
Lead by John Thomas, CEO, and former Wisconsin Gov. Tommy Thompson, chairman of the
Board of Trustees, the two-year-old company has achieved a very high level of growth for a real
estate investment trust (REIT). Physicians Realty Trust, which trades on the New York Stock Exchange under the stock symbol, DOC, is a self-managed REIT focused exclusively on the
acquisition, development, and ownership and management of healthcare properties throughout
the U.S. that are leased to physicians, hospitals and healthcare delivery systems.
With an aging population of baby boomers needing care, and with further consolidation of
providers likely under the Affordable Care Act, the Company seeks to gain a profitable slice of
the $3.5 trillion U.S. health care business and sees a tremendous opportunity to invest in
strategically located outpatient medical office buildings to enhance access to quality care for
patients and healthcare providers.
Since its initial public offering in July 2013, the Company has grown over 1,110 percent in gross assets, from 19 properties in 10 states valued at roughly $124 million to 133 properties in 23 states valued over $1.5 billion. As of October 13, 2015, the Company had 5.3 million leasable
square feet of real estate, which is approximately 95.5 percent leased with a weighted average
lease term remaining of 9.0 years. The growth of the Company has not gone unnoticed as it
was recently ranked among Wisconsin’s fastest growing public companies and is one of the
youngest REITs to earn an investment grade rating (Baa3) by Moody’s Investors Services.
Since January 1, 2015, the Company added 43 high-quality healthcare investments, including
over 440,000 square feet developed and owned by Integrated Medical Services, a large
progressive multi-specialty provider group located in Phoenix as well a large portfolio of
outpatient medical offices affiliated with several health systems and provider groups located in Minneapolis. The Company has been consistently acquiring $150-$200 million in new
investments per quarter, with almost $300 million invested in the quarter just ended September 30, 2015.
In Wisconsin, the Company owns four buildings: Aurora Health Care Medical Office Building in
Green Bay, Firehouse Square in West Allis, Renaissance Surgical Center in Oshkosh and the
recently-purchased (March ’15) Renaissance Building on Water Street in Milwaukee’s Historic Third Ward. The Renaissance building functions as a general office to serve as both an investment and headquarters for the Company which has experienced internal growth from five
initial employees to 25 employees today. The Company currently occupies the fifth floor but has plans to expand in the building as the Company continues to grow.
“As the demand for healthcare services continue to increase and the Company continues to
focus on the growth and quality of its cash flow and dividend coverage, the Company is
tremendously excited about our growth trajectory and our team’s execution and ability to source real estate investment opportunities leased to premium healthcare providers,” said John T. Thomas, president and CEO of the Company. “The portfolio of facilities we have amassed in slightly more than two years aligns our fast-growing REIT with forward-thinking physician groups and health systems across the country, positioning themselves to deliver the highest quality healthcare in an evolving consolidating U.S. healthcare system.”
To fuel the Company’s growth, investors have supported the Company through the purchase of
approximately $1 billion in equity. Earlier this month, the Company announced an upsizing and pricing of a public offering of 15,812,500 common shares of beneficial interest at a public offering price per share of $15, for net proceeds of approximately $230 million.
In part, what has contributed to this growth is the reputation of the firm’s team, especially its founder, long-time Wisconsin resident John Sweet, of being a good steward of the buildings it owns, being accessible, following through, and building a culture of ownership within the
company.
Former Wisconsin Gov. Tommy G. Thompson, chairman of the Board of Trustees, stated,
“Since our initial public offering we have grown from $124 million to over $1.5 billion in gross real estate assets as of September 30, 2015. This is an important milestone for our
shareholders as we continue to grow and improve the quality of our assets and our balance
sheet remains well positioned to continue our pursuit of building a great company and furthering
our goal of enhancing shareholder value over the long term. I’m excited for our future and
continued success working alongside a fantastic team of healthcare professionals that have a
great reputation to take a fast-growing relationship-driven healthcare real estate organization to
the next level.”
The Company has provided acquisition guidance for 2015, of investments between $700 and
$900 million. Having completed just over $700 million, the Company anticipates additional
growth this year and next.
The Company hasn’t issued guidance for 2016, but anticipates it will have significant
opportunities in 2016 and beyond to continue its high growth. John Thomas stated, “While we
have grown fast, we are also growing and building this company in a disciplined way for long term success. With Gov. Thompson’s leadership and the hard work of the whole team, we have built a very solid foundation, one that will allow us to continue our growth and performance to serve our shareholders, providers, and the patients they serve for years to come.”
About Physicians Realty Trust
Physicians Realty Trust is a self-managed healthcare real estate company organized to acquire, selectively develop, own and manage healthcare properties that are leased to physicians, hospitals and healthcare delivery systems. The Company invests in real estate that is integral to providing high quality healthcare. The Company is a Maryland real estate investment trust and
elected to be taxed as a REIT for U.S. federal income tax purposes beginning with its short
taxable year ended December 31, 2013. 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.
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 Act of 1934, as amended, pursuant to the safe harbor provisions of the Private
Securities Reform Act of 1995. Forward-looking statements are generally identifiable by use of
forward-looking terminology such as “believes,” “expects,” “may,” “will,” “should,” “seeks,”
“approximately,” “intends,” “plans,” “estimates,” “anticipates” or other similar words or
expressions. Forward-looking statements are based on certain assumptions and can include
future expectations, future plans and strategies, financial and operating projections or other
forward-looking information. 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, whether as a result of new information, future events or otherwise.
