Announces $0.05 Net Income per Share and
$0.25 Normalized FFO per Share for the Second Quarter of
2023
Second Quarter
Highlights:
- Reported second quarter 2023 total revenue of $135.1 million,
an increase of 2.2% over the prior year period.
- Reported net income of $13.1 million for the second quarter
ended June 30, 2023, a decrease of 27.0% over the prior year
period, and second quarter net income per share of $0.05 on a fully
diluted basis.
- Generated second quarter Normalized Funds From Operations
(“Normalized FFO”) of $0.25 per share on a fully diluted
basis.
- Completed $49.8 million in investments, including the funding
of previous loan commitments.
- Second quarter Outpatient Medical Same-Store Cash Net Operating
Income growth was 0.8% year-over-year.
- Declared a quarterly dividend of $0.23 per share and OP Unit
for the second quarter 2023, paid on July 18, 2023.
- Closed on a $400.0 million five-year term loan that, with the
effect of related swaps, bears interest at a fixed rate of
4.693%.
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 second quarter
ended June 30, 2023.
John T. Thomas, President and Chief Executive Officer of the
Trust, commented, “On July 19, 2023, we celebrated our 10th
anniversary. We are proud of our achievements since going public in
2013, delivering strong returns to shareholders, paying 40
consecutive quarterly dividends, investing with and for our health
care provider partners, and providing a successful outpatient
medical real estate platform for our health care partners. With a
focus on disciplined capital allocation and strategic partnerships,
we have expanded our outpatient medical footprint and, in the
process, achieved remarkable leasing activity. We anticipate
further revenue growth and strong financial performance as we
continue to innovate and capitalize on the opportunities in our
pipeline consistent with the returns required in this dynamic
capital markets environment. As we celebrate this milestone, our
passionate DOC team, families, and partners nationwide remain
dedicated to shaping the future of health care delivery.
“We look forward to sharing more about our second quarter
results during today’s conference call,” Mr. Thomas concluded.
Second Quarter Financial Results
Total revenue for the second quarter ended June 30, 2023, was
$135.1 million, an increase of 2.2% from the second quarter ended
June 30, 2022. As of June 30, 2023, the portfolio was approximately
94.5% leased.
Total expenses for the second quarter 2023 were $123.8 million,
compared to total expenses of $117.6 million for the second quarter
2022.
Net income for the second quarter 2023 was $13.1 million,
compared to net income of $17.9 million for the second quarter
2022, a decrease of 27.0% due to prior year dispositions that
generated a gain of $3.6 million in the second quarter 2022.
Net income attributable to common shareholders for the second
quarter 2023 was $12.5 million. Diluted earnings per share for the
second quarter 2023 was $0.05 based on approximately 249.2 million
weighted average common shares and operating partnership units (“OP
Units”) outstanding.
Funds From Operations (“FFO”) totaled $61.2 million for the
second quarter 2023 and consisted of net income plus depreciation
and amortization on our consolidated portfolio of $47.8 million and
our unconsolidated joint ventures of $0.4 million, offset by $0.2
million of other adjustments, resulting in FFO of $0.25 per share
on a fully diluted basis. Normalized FFO, which adjusts for our
proportionate share of unconsolidated joint venture adjustments,
was $61.2 million, or $0.25 per share on a fully diluted basis.
Normalized Funds Available for Distribution (“FAD”) for the
second quarter 2023, 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 and lease
commissions, loan reserve adjustments, and our share of adjustments
from unconsolidated investments, was $60.2 million.
Our Outpatient Medical Same-Store portfolio, which includes 269
properties representing 97% of our consolidated leasable square
footage, generated year-over-year Outpatient Medical Same-Store
Cash Net Operating Income (“Cash NOI”) growth of 0.8% for the
second quarter 2023.
Other Recent Events
Second Quarter Investment Highlights
Investment activity in the quarter ended June 30, 2023, was
highlighted by the acquisition of two health care properties for a
purchase price of $33.3 million.
Emory Dunwoody Ambulatory Surgical Center
(“ASC”) - On May 16, 2023, the Company completed the acquisition of
a $5.3 million building located in Dunwoody, Georgia, a northern
suburb of Atlanta. The building is 100% pre-leased for a 12-year
term to The Emory Clinic, Inc., a subsidiary of Emory University,
with annual escalators of 2.25%. The Company plans to finance 100%
of the project costs for the renovation of the 22,000 square foot
ASC, which are expected to be completed in the second quarter of
2025. The ASC is adjacent to the Emory Dunwoody Outpatient Medical
Building development the Company previously announced.
Cardiovascular Associates (“CVA”) Building -
On May 31, 2023, through a joint venture partnership with the prior
owner, the Company completed the acquisition of a Class-A facility
comprising 72,555 rentable square feet in Birmingham, Alabama, for
a purchase price of approximately $28.0 million. The facility is
85% leased to Baptist Health Centers, LLC, a subsidiary of Tenet
Health (S&P: ‘B+’), with a weighted average remaining lease
term of approximately 8 years. The anchor lease is guaranteed by
BBH BMC, LLC dba Brookwood Medical Center, Tenet’s largest hospital
in Alabama. The Company owns 99.0% of the joint venture, with a
first-year cash yield on the investment of 7.0%.
El Paso Seller Financing Loan Update
On June 30, 2023, the Company received payment in full for a
term loan related to the previously owned Foundation El Paso
Surgical Hospital. The $27.6 million loan was originated in
conjunction with the Company’s sale of the facility in October of
2019 and yielded interest at a rate of 14.0% per year at the time
of payoff.
Second Quarter Capital Activity
On May 24, 2023, Physicians Realty L.P. (the “Operating
Partnership”), as borrower, and the Trust, as guarantor, executed a
second amendment to the credit agreement, which added a new $400.0
million unsecured term loan with a scheduled maturity date of May
24, 2028 and expanded the accordion feature, which allows the
Operating Partnership to increase borrowing capacity under the
credit agreement, as amended, by up to an additional $500 million.
Borrowings under the term loan feature of the Credit Agreement bear
interest on the outstanding principal amount at a rate equal to
1.10%, inclusive of a 0.10% SOFR index adjustment, plus Daily
Simple SOFR as defined in the Credit Agreement. The Operating
Partnership simultaneously entered into fixed-for-floating interest
rate swaps for the full borrowing amount, fixing the SOFR component
of this rate at 3.593%, for a current all-in fixed rate of
4.693%.
Publication of 2022 ESG Report
On June 5, 2023, the Company announced the publication of its
fourth annual Environmental, Social, and Governance (ESG) Report.
The comprehensive and fully interactive report, available digitally
at www.docreit.com/esg, details the Company’s ESG achievements and
progress toward ongoing ESG goals.
Recent Investment Activity
Since June 30, 2023, the Company closed on the acquisition of an
outpatient medical facility in Palos Heights, Illinois for
approximately $2.6 million.
Palos Heights Surgery Center - On July 20,
2023, the Company completed the acquisition of a 21,297 rentable
square feet in Palos Heights, Illinois, for a purchase price of
approximately $2.6 million. The facility is 80% occupied with
anchor tenant Palos SurgiCenter, who agreed to extend their lease
an additional 10 years at close through 2036, in 62% of the space.
The stabilized yield on the investment is 8.0%.
Dividend Paid
On June 16, 2023, our Board of Trustees authorized and declared
a cash distribution of $0.23 per common share and OP Unit for the
quarterly period ended June 30, 2023. The dividend was paid on July
18, 2023, to common shareholders and OP Unit holders of record as
of the close of business on July 5, 2023.
Conference Call Information
The Company has scheduled a conference call on Thursday, August
3, 2023, at 10:00 a.m. ET to discuss its financial performance and
operating results for the second quarter ended June 30, 2023. The
conference call can be accessed by dialing (844) 826-3035 from
within the U.S. or (412) 317-5195 for international callers.
Participants can reference the Physicians Realty Trust Second
Quarter Earnings Call. The conference call will also 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 August 3, 2023, at 2:00 p.m. ET until
September 3, 2023, at 11:59 p.m. ET, by dialing (844) 512-2921
(U.S.) or (412) 317-6671 (International); passcode: 10179994. A
replay of the webcast will also be accessible on the Investor
Relations website for one year following the event. Beginning
August 3, 2023, the Company’s supplemental information package for
the second quarter 2023 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 June 30, 2023,
owned approximately 96.0% 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. The
information contained on our website is not a part of, and is not
incorporated by reference into, this press release.
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, anticipated completion of development projects, and
ability to execute its business plan. 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 for the fiscal year ended December 31,
2022.
Physicians Realty
Trust
Condensed Consolidated
Statements of Income
(in thousands, except share
and per share data) (Unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2023
2022
2023
2022
Revenues:
Rental revenues
$
93,615
$
93,492
$
187,158
$
186,157
Expense recoveries
37,563
35,836
75,418
70,962
Rental and related revenues
131,178
129,328
262,576
257,119
Interest income on real estate loans and
other
3,922
2,839
6,868
5,438
Total revenues
135,100
132,167
269,444
262,557
Expenses:
Interest expense
20,634
17,234
39,787
34,057
General and administrative
10,162
10,028
21,362
20,321
Operating expenses
45,075
42,681
90,469
84,433
Depreciation and amortization
47,946
47,702
95,623
94,962
Total expenses
123,817
117,645
247,241
233,773
Income before equity in gain (loss) of
unconsolidated entities and gain on sale of investment properties,
net:
11,283
14,522
22,203
28,784
Equity in gain (loss) of unconsolidated
entities
1,802
(224
)
1,538
(390
)
Gain on sale of investment properties,
net
—
3,634
13
3,481
Net income
13,085
17,932
23,754
31,875
Net income attributable to noncontrolling
interests:
Operating Partnership
(515
)
(886
)
(938
)
(1,578
)
Partially owned properties (1)
(26
)
(155
)
(70
)
(314
)
Net income attributable to common
shareholders
$
12,544
$
16,891
$
22,746
$
29,983
Net income per share:
Basic
$
0.05
$
0.07
$
0.10
$
0.13
Diluted
$
0.05
$
0.07
$
0.10
$
0.13
Weighted average common shares:
Basic
238,399,653
225,617,275
237,944,378
225,344,756
Diluted
249,228,221
239,006,973
249,069,697
238,738,465
Dividends and distributions declared per
common share
$
0.23
$
0.23
$
0.46
$
0.46
(1) Includes amounts attributable to redeemable noncontrolling
interests.
Physicians Realty
Trust
Condensed Consolidated Balance
Sheets
(in thousands, except share
and per share data)
June 30,
December 31,
2023
2022
(unaudited)
ASSETS
Investment properties:
Land and improvements
$
248,123
$
241,559
Building and improvements
4,696,846
4,659,780
Construction in progress
30,899
18,497
Tenant improvements
91,649
88,640
Acquired lease intangibles
508,549
505,335
5,576,066
5,513,811
Accumulated depreciation
(1,092,057
)
(996,888
)
Net real estate property
4,484,009
4,516,923
Right-of-use lease assets, net
229,110
231,225
Real estate loans receivable, net
88,969
104,973
Investments in unconsolidated entities
73,801
77,716
Net real estate investments
4,875,889
4,930,837
Cash and cash equivalents
245,660
7,730
Tenant receivables, net
8,294
11,503
Other assets
149,695
146,807
Total assets
$
5,279,538
$
5,096,877
LIABILITIES AND EQUITY
Liabilities:
Credit facility
$
392,524
$
188,328
Notes payable
1,451,162
1,465,437
Mortgage debt
163,926
164,352
Accounts payable
4,209
4,391
Dividends and distributions payable
60,404
60,148
Accrued expenses and other liabilities
93,432
87,720
Lease liabilities
104,696
105,011
Acquired lease intangibles, net
23,211
24,381
Total liabilities
2,293,564
2,099,768
Redeemable noncontrolling interests -
partially owned properties
3,115
3,258
Equity:
Common shares, $0.01 par value,
500,000,000 common shares authorized, 238,451,853 and 233,292,030
common shares issued and outstanding as of June 30, 2023 and
December 31, 2022, respectively
2,385
2,333
Additional paid-in capital
3,813,864
3,743,876
Accumulated deficit
(969,743
)
(881,672
)
Accumulated other comprehensive income
9,282
5,183
Total shareholders’ equity
2,855,788
2,869,720
Noncontrolling interests:
Operating Partnership
117,766
123,015
Partially owned properties
9,305
1,116
Total noncontrolling interests
127,071
124,131
Total equity
2,982,859
2,993,851
Total liabilities and equity
$
5,279,538
$
5,096,877
Physicians Realty
Trust
Reconciliation of Non-GAAP
Measures
(in thousands, except share
and per share data) (Unaudited)
Three Months Ended
June 30,
2023
2022
Net income
$
13,085
$
17,932
Earnings per share - diluted
$
0.05
$
0.07
Net income
$
13,085
$
17,932
Net income attributable to noncontrolling
interests - partially owned properties
(26
)
(155
)
Depreciation and amortization expense
47,834
47,589
Depreciation and amortization expense -
partially owned properties
(140
)
(70
)
Gain on sale of investment properties,
net
—
(3,634
)
Proportionate share of unconsolidated
joint venture adjustments
422
2,350
FFO applicable to common shares
$
61,175
$
64,012
Proportionate share of unconsolidated
joint venture adjustments
—
(270
)
Normalized FFO applicable to common
shares
$
61,175
$
63,742
FFO per common share - diluted
$
0.25
$
0.27
Normalized FFO per common share -
diluted
$
0.25
$
0.27
Normalized FFO applicable to common
shares
$
61,175
$
63,742
Non-cash share compensation expense
3,655
3,798
Straight-line rent adjustments
(701
)
(1,727
)
Amortization of acquired
above/below-market leases/assumed debt
1,119
1,301
Amortization of lease inducements
242
225
Amortization of deferred financing
costs
696
579
Recurring capital expenditures and lease
commissions
(5,790
)
(6,868
)
Loan reserve adjustments
7
4
Proportionate share of unconsolidated
joint venture adjustments
(226
)
(66
)
Normalized FAD applicable to common
shares
$
60,177
$
60,988
Weighted average common shares outstanding
- diluted
249,228,221
239,006,973
Three Months Ended
June 30,
2023
2022
Net income
$
13,085
$
17,932
General and administrative
10,162
10,028
Depreciation and amortization expense
47,946
47,702
Interest expense
20,634
17,234
Gain on sale of investment properties,
net
—
(3,634
)
Proportionate share of unconsolidated
joint venture adjustments
1,758
3,404
NOI
$
93,585
$
92,666
NOI
$
93,585
$
92,666
Straight-line rent adjustments
(701
)
(1,727
)
Amortization of acquired
above/below-market leases
1,119
1,301
Amortization of lease inducements
242
225
Loan reserve adjustments
7
4
Proportionate share of unconsolidated
joint venture adjustments
(84
)
(99
)
Cash NOI
$
94,168
$
92,370
Cash NOI
$
94,168
$
92,370
Assets not held for all periods
(1,569
)
(1,770
)
Non-outpatient medical facilities
(2,804
)
(2,850
)
Lease termination fees
(16
)
(182
)
Interest income on real estate loans
(2,512
)
(2,248
)
Joint venture and other income
(4,915
)
(3,634
)
Outpatient Medical Same-Store Cash NOI
$
82,352
$
81,686
Three Months Ended
June 30,
2023
2022
Net income
$
13,085
$
17,932
Depreciation and amortization expense
47,946
47,702
Interest expense
20,634
17,234
Gain on sale of investment properties,
net
—
(3,634
)
Proportionate share of unconsolidated
joint venture adjustments
1,738
3,674
EBITDAre
$
83,403
$
82,908
Non-cash share compensation expense
3,655
3,798
Pursuit costs
195
93
Non-cash intangible amortization
1,361
1,525
Corporate high yield interest income
(977
)
—
Proportionate share of unconsolidated
joint venture adjustments
—
(270
)
Pro forma adjustments for investment
activity
(593
)
280
Adjusted EBITDAre
$
87,044
$
88,334
This press release includes Funds From Operations (“FFO”),
Normalized FFO, Normalized Funds Available For Distribution
(“FAD”), Net Operating Income (“NOI”), Cash NOI, Outpatient Medical
Same-Store Cash NOI, Earnings Before Interest, Taxes, Depreciation
and Amortization for Real Estate (“EBITDAre”) and Adjusted
EBITDAre, which are non-GAAP financial measures. For purposes of
the SEC’s Regulation G, a non-GAAP financial measure is a numerical
measure of a company’s historical or future financial performance,
financial position or cash flows that excludes amounts, or is
subject to adjustments that have the effect of excluding amounts,
that are included in the most directly comparable financial measure
calculated and presented in accordance with GAAP in the statement
of operations, balance sheet or statement of cash flows (or
equivalent statements) of the Company, or includes amounts, or is
subject to adjustments that have the effect of including amounts,
that are excluded from the most directly comparable financial
measure so calculated and presented. As used in this press release,
GAAP refers to generally accepted accounting principles in the
United States of America. Pursuant to the requirements of
Regulation G, we have provided reconciliations of the non-GAAP
financial measures to the most directly comparable GAAP financial
measures.
We believe that information regarding FFO is helpful to
shareholders and potential investors because it facilitates an
understanding of the operating performance of our properties
without giving effect to real estate depreciation and amortization,
which assumes that the value of real estate assets diminishes
ratably over time. We calculate FFO in accordance with standards
established by the National Association of Real Estate Investment
Trusts (“Nareit”). Nareit defines FFO as net income or loss
(computed in accordance with GAAP) before noncontrolling interests
of holders of OP units, excluding preferred distributions, gains
(or losses) on sales of depreciable operating property, impairment
write-downs on depreciable assets, plus real estate related
depreciation and amortization (excluding amortization of deferred
financing costs). Our FFO computation includes our share of
required adjustments from our unconsolidated joint ventures and 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 do. The GAAP
measure that we believe to be most directly comparable to FFO, net
income, includes depreciation and amortization expenses, gains or
losses on property sales, impairments, and noncontrolling
interests. In computing FFO, we eliminate these items because, in
our view, they are not indicative of the results from the
operations of our properties. To facilitate a clear understanding
of our historical operating results, FFO should be examined in
conjunction with net income (determined in accordance with GAAP) as
presented in our financial statements. FFO does not represent cash
generated from operating activities in accordance with GAAP, should
not be considered to be an alternative to net income or loss
(determined in accordance with GAAP) as a measure of our liquidity
and is not indicative of funds available for our cash needs,
including our ability to make cash distributions to
shareholders.
We use Normalized FFO, which excludes from FFO net change in
fair value of derivative financial instruments, acceleration of
deferred financing costs, net change in fair value of contingent
consideration, and other normalizing items. Our Normalized FFO
computation includes our share of required adjustments from our
unconsolidated joint ventures and our use of the term Normalized
FFO may not be comparable to that of other real estate companies as
they may have different methodologies for computing this amount.
Normalized FFO should not be considered as an alternative to net
income or loss (computed in accordance with GAAP), as an indicator
of our financial performance or of cash flow from operating
activities (computed in accordance with GAAP), or as an indicator
of our liquidity, nor is it indicative of funds available to fund
our cash needs, including our ability to make distributions.
Normalized FFO should be reviewed in connection with other GAAP
measurements.
We define Normalized FAD, a non-GAAP measure, which excludes
from Normalized FFO non-cash share compensation expense,
straight-line rent adjustments, amortization of acquired
above-market or below-market leases and assumed debt, amortization
of lease inducements, amortization of deferred financing costs, and
loan reserve adjustments, including our share of all required
adjustments from unconsolidated joint ventures. We also adjust for
recurring capital expenditures related to building, site, and
tenant improvements, leasing commissions, cash payments from seller
master leases, and rent abatement payments, including our share of
all required adjustments for unconsolidated joint ventures. Other
REITs or real estate companies may use different methodologies for
calculating Normalized FAD, and accordingly, our computation may
not be comparable to those reported by other REITs. Although our
computation of Normalized FAD may not be comparable to that of
other REITs, we believe Normalized FAD provides a meaningful
supplemental measure of our performance due to its frequency of use
by analysts, investors, and other interested parties in the
evaluation of our performance as a REIT. Normalized FAD should not
be considered as an alternative to net income or loss attributable
to controlling interest (computed in accordance with GAAP) or as an
indicator of our financial performance. Normalized FAD should be
reviewed in connection with other GAAP measurements.
NOI is a non-GAAP financial measure that is defined as net
income or loss, computed in accordance with GAAP, generated from
our total portfolio of properties and other investments before
general and administrative expenses, depreciation and amortization
expense, interest expense, net change in the fair value of
derivative financial instruments, gain or loss on the sale of
investment properties, and impairment losses, including our share
of all required adjustments from our unconsolidated joint ventures.
We believe that NOI provides an accurate measure of operating
performance of our operating assets because NOI excludes certain
items that are not associated with management of the properties.
Our use of the term NOI may not be comparable to that of other real
estate companies as they may have different methodologies for
computing this amount.
Cash NOI is a non-GAAP financial measure which excludes from NOI
straight-line rent adjustments, amortization of acquired above and
below market leases, and other non-cash and normalizing items,
including our share of all required adjustments from unconsolidated
joint ventures. Other non-cash and normalizing items include items
such as the amortization of lease inducements, loan reserve
adjustments, payments received from seller master leases and rent
abatements, and changes in fair value of contingent consideration.
We believe that Cash NOI provides an accurate measure of the
operating performance of our operating assets because it excludes
certain items that are not associated with management of the
properties. Additionally, we believe that Cash NOI is a widely
accepted measure of comparative operating performance in the real
estate community. Our use of the term Cash NOI may not be
comparable to that of other real estate companies as such other
companies may have different methodologies for computing this
amount.
Outpatient Medical Same-Store Cash NOI is a non-GAAP financial
measure which excludes from Cash NOI assets not held for the entire
preceding five quarters, non-outpatient medical facility assets,
and other normalizing items not specifically related to the
same-store property portfolio. Management considers Outpatient
Medical Same-Store Cash NOI a supplemental measure because it
allows investors, analysts, and Company management to measure
unlevered property-level operating results. Our use of the term
Outpatient Medical Same-Store Cash NOI may not be comparable to
that of other real estate companies, as such other companies may
have different methodologies for computing this amount.
We calculate EBITDAre in accordance with standards established
by Nareit and define EBITDAre as net income or loss computed in
accordance with GAAP plus depreciation and amortization, interest
expense, gain or loss on the sale of investment properties, and
impairment loss, including our share of all required adjustments
from unconsolidated joint ventures. We define Adjusted EBITDAre,
which excludes from EBITDAre non-cash share compensation expense,
non-cash changes in fair value, pursuit costs, non-cash intangible
amortization, corporate high yield interest income, the pro forma
impact of investment activity, and other normalizing items. We
consider EBITDAre and Adjusted EBITDAre important measures because
they provide additional information to allow management, investors,
and our current and potential creditors to evaluate and compare our
core operating results and our ability to service debt.
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version on businesswire.com: https://www.businesswire.com/news/home/20230802950129/en/
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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