Physicians Realty Trust (NYSE: DOC) reported Q2 EPS of $0.06, $0.01 worse than the analyst estimate of $0.07. Revenue for the quarter came in at $107 million versus the consensus estimate of $104.71 million.

Second Quarter Highlights:

• Reported second quarter 2018 total revenue of $107.0 million, up 40% over the prior year period.
• Reported second quarter 2018 rental revenue of $80.4 million, up 39% over the prior year period.
• Generated second quarter net income per share and OP unit of $0.06 on a fully diluted basis, consistent with the same period last year.
• Generated second quarter normalized funds from operations (Normalized FFO) of $0.28 per share and OP unit on a fully diluted basis, up 16.7% year-over-year.
• Completed the acquisition of one healthcare property representing 231,486 square feet for $71.3 million.
• Completed the disposition of 15 healthcare properties representing 560,234 square feet for $90.7 million.
• Declared a quarterly dividend of $0.23 per share and OP unit for the second quarter 2018, paid July 18, 2018.
• Portfolio was 96.6% leased based on square footage as of June 30, 2018.
• Same-Store Cash Net Operating Income (Cash NOI) growth was 3.3% year-over-year.
• Net decrease to gross leasable square footage of 1.7% to 13,399,898 square feet across 249 healthcare properties (which excludes 17 assets classified as held for sale) as of June 30, 2018, from 13,625,726 square feet across 265 healthcare properties (which excluded 15 assets classified as held for sale) as of March 31, 2018.

John T. Thomas, President and Chief Executive Officer of the Trust, commented, “Physicians Realty Trust recently celebrated our 5th anniversary as a public company, and consistent with our 5-year track record of success, our team and relationships delivered outstanding results during the second quarter of 2018. Consistent with our 2018 plans announced earlier this year, we have had an acute focus on improving the overall quality of our real estate assets, operating results, and relationships. So far this year we have accomplished all three, while also improving our balance sheet. Year-to-date we have completed $220.3 million of dispositions at favorable valuations while reinvesting $179.1 million of those proceeds to expand existing relationships in newer, higher quality facilities leased to strong credit tenants, while also reducing debt with the balance of the proceeds.”

“We will continue to be selective in deploying capital in this market, but remain very optimistic about our ability to continue to execute and grow in the years to come. We believe we have the best overall portfolio of medical office facilities in the United States, approaching 97% leased, almost 90% on-campus or affiliated with a health system, and over half of our rentable square feet directly leased to an investment-grade health system or affiliate. We look for a continuation of this strategy and execution during the second half of 2018, with the potential for more dispositions, selective investment, and an eagle-eye focus on operating performance,” Mr. Thomas continued.

“At Physicians Realty Trust, we ‘Invest in better.’ Consistent with our Mission and Vision, our ultimate goal is to help medical providers, patients and clients, and shareholders realize better healthcare, better communities, and better returns. We do this by offering broader and deeper healthcare expertise than any other REIT, by crafting solutions that benefit all parties, and by consistently executing for our long-standing industry relationships to source and sustain the highest quality properties and tenants in the industry,” Mr. Thomas concluded.

For earnings history and earnings-related data on Physicians Realty Trust (DOC) click here.