Physicians Realty Trust (NYSE:DOC) (the “Company”) announced today that the Company’s Board of Trustees has authorized and the Company has declared a quarterly cash dividend of $0.225 per common share for the quarter ending March 31, 2015.
Governor Tommy G. Thompson, Chairman of the Board of Trustees, stated, “In just over 20 months since our initial public offering we have grown from $124 million to over $1 billion in gross real estate assets as of March 31, 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. We are also proud to deliver our seventh consecutive quarterly dividend payment of $0.225 per share.” The dividend will be payable on May 1, 2015, to common shareholders and unit holders of record on April 17, 2015.
Since January 1, 2015, we have invested $234 million through 9 acquisitions of 23 properties located in 9 states containing an aggregate of 913,636 gross leasable square feet as well as the purchase of a general office building in Milwaukee, Wisconsin that will serve as both an investment and headquarters for the Company. We also completed the sale for $1.6 million of the 20,329 square foot vacant medical office building that was contributed to the Company by our predecessor upon completion of our initial public offering.
Recent Transactions Not Previously Announced
University of Rochester Strong Memorial Portfolio. On March 31, 2015, we closed on the purchase of a five building portfolio of medical office facilities containing approximately 149,949 square feet anchored by the University of Rochester Strong Memorial System located in Rochester, New York, for a total purchase price of $41.0 million. The facilities are 91% occupied and the current first year unlevered cash yield is expected to be 7.1%.
Avalon Park Florida Hospital MOB. On March 31, 2015, we completed the acquisition of a 44,717 square foot medical office facility located in Avalon Park, Florida, just north of Orlando, for a total purchase price of $14.6 million. The facility is 93% occupied, anchored by Florida Hospital which operates a Women’s Health Clinic in the facility and Neurorestorative, which operates a traumatic brain injury center. The first year unlevered cash yield is expected to be 7.1%.
Renaissance Office Building. On March 27, 2015, we completed the acquisition of an approximately 100,000 square foot general office building located in The Historic Third Ward section of downtown Milwaukee, Wisconsin for approximately $6.5 million. The building is currently 72% occupied with a first year cash yield of approximately 7.5%. The Company will relocate its headquarters from its current temporary office to occupy approximately 10% of the building with room for expansion as necessary in the future.
John Thomas, President and Chief Executive Officer of the Company stated, “The Physicians Realty Trust Team has completed our busiest quarter yet, and we have achieved two very important milestones, furthering our commitment to building and managing our organization to deliver stable cash flow and outstanding total shareholder returns for the long term. We have surpassed $1.05 billion in total gross real estate assets and identified a permanent home for our team. We are particularly proud of the partnerships we have formed with Mark Davis in the Minnesota Portfolio acquired earlier this quarter and our most recent investments with the University of Rochester Strong Memorial Heath System in Rochester, New York, just to feature two of our many outstanding new relationships and opportunities created for further growth in the future. We now own more than 4,000,000 square feet of medical facilities in 22 states, more than 95% leased with 10 years of average lease term remaining. We believe we have established solid foundation for stable and increasing cash flow and future growth. We also have invested in our future through the acquisition of the Renaissance office building in Milwaukee. We anticipate that this historic and wonderful facility will produce quality investment returns for our shareholders and will be a valuable tool for retention and recruitment for our team as we continue to grow the company.”
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.
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.
John T. Thomas
President and CEO
Chief Financial Officer