Physicians Realty Trust (NYSE: DOC) reported Q4 EPS of $0.22, $0.14 better than the analyst estimate of $0.08. Revenue for the quarter came in at $107.4 million versus the consensus estimate of $110.37 million.

Fourth Quarter Highlights:

• Reported fourth quarter 2019 total revenue of $107.4 million, an increase of 2% over the prior year period.
• Generated fourth quarter net income per share and OP unit of $0.22 on a fully diluted basis, compared to net income per share and OP unit of $0.06 on a fully diluted basis in the same period last year.
• Generated fourth quarter normalized funds from operations (Normalized FFO) of $0.27 per share and OP unit on a fully diluted basis, consistent with same period last year.
• Fourth quarter MOB Same-Store Cash Net Operating Income (Cash NOI) growth was 2.5% year-over-year.
• Declared a quarterly dividend of $0.23 per share and OP unit for the fourth quarter 2019, paid January 17, 2020.
• Sold 1,617,500 common shares pursuant to the ATM program at a weighted average price of $18.84, resulting in total proceeds of approximately $30.2 million.

John T. Thomas, President and Chief Executive Officer of the Trust, commented, “Physicians Realty Trust ended 2019 with a healthy portfolio, a strong balance sheet, and a pipeline poised for growth in 2020. This year provided opportunities to showcase the resilience of healthcare real estate, especially outpatient-focused medical office real estate. Our 2019 results included strong portfolio performance with an average same-store growth rate of 3.1% and approximately $452.2 million in new investments and development commitments. Excluding the joint venture investments discussed herein, our 2019 investments added approximately 358,678 rentable square feet to our portfolio which is 100% leased. These investments represent a continued emphasis on tenant quality as a component of our investments process, with 83% of acquired square feet leased to investment-grade health systems and their subsidiaries.

“We continued our geographic expansion in 2019 with our first investment in California through a partnership with John Muir Health (Moody’s: A1) via the purchase of five medical office facilities adjacent to the Walnut Creek Medical Center in the East Bay region of San Francisco. As part of the transaction, John Muir Health entered into a new, long-term lease for 100% of the space. The completion of this off-market investment is the direct result of our effort to be the preferred partner for the highest-quality healthcare providers in the industry.

“We also entered in to a creative and strategically important joint venture with KA Real Estate and MBRE Healthcare, the largest private non-hospital affiliated MOB owner in the United States, as part of a recapitalization of a 59 facility portfolio of high quality medical office buildings acquired over the past several years. We contributed two buildings and $17.0 million to the portfolio and assumed strategically important property management of a synergistic portion of the buildings.

“We look forward to discussing our fourth quarter performance, as well as our expectations for 2020 during today’s conference call,” Mr. Thomas concluded.

2020 Guidance

The Company anticipates general and administrative expenses to be between $33.5 million and $35.5 million for the year ended December 31, 2020. During 2020, assuming capital market conditions hold, the Company expects to close between $400 million and $700 million of real estate investments, including development commitments, at cap rates of 5.25% to 6.25%.

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