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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2022
or
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission file number: 001-36007
PHYSICIANS REALTY TRUST
(Exact Name of Registrant as Specified in its Charter)
| | | | | | | | | | | |
Maryland | | 46-2519850 |
(State of Organization) | | (IRS Employer Identification No.) |
| | | |
309 N. Water Street, Suite 500 | | 53202 |
Milwaukee, | Wisconsin | |
(Address of Principal Executive Offices) | | (Zip Code) |
(414) 367-5600
(Registrant’s Telephone Number, Including Area Code)
Securities registered pursuant to Section 12(b) of the Act:
| | | | | | | | | | | | | | |
Title of each class | | Trading Symbol | | Name of each exchange on which registered |
Common stock, $0.01 par value per share | | DOC | | New York Stock Exchange |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer ☒ Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒
The number of Physicians Realty Trust’s common shares outstanding as of October 26, 2022 was 228,260,860.
PHYSICIANS REALTY TRUST
Quarterly Report on Form 10-Q
for the Quarter Ended September 30, 2022
Table of Contents
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q contains forward-looking statements made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts may be forward-looking statements within the meaning of the federal securities laws. In particular, statements pertaining to our capital resources, property performance, and results of operations contain forward-looking statements. Likewise, all of our statements regarding anticipated growth in our funds from operations and anticipated market conditions, demographics, and results of operations are forward-looking statements. You can identify forward-looking statements by the use of forward-looking terminology such as “believe,” “expect,” “outlook,” “continue,” “project,” “may,” “will,” “should,” “seek,” “approximately,” “intend,” “plan,” “pro forma,” “estimate,” or “anticipate” or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not relate solely to historical matters. You can also identify forward-looking statements by discussions of strategy, plans, expectations, or intentions.
These forward-looking statements reflect the views of our management regarding current expectations and projections about future events and are based on currently available information. These forward-looking statements are not guarantees of future performance and involve numerous risks and uncertainties and you should not rely on them as predictions of future events. Forward-looking statements depend on assumptions, data, or methods which may be incorrect or imprecise and we may not be able to realize them. We do not guarantee that the transactions and events described will happen as described (or that they will happen at all). The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements:
•the unknown duration and economic, operational, and financial impacts of the global outbreak of a novel strain of the coronavirus and any variants that have emerged or that may emerge in the future, (the “COVID-19 pandemic”) and the actions taken by governmental authorities or others in connection with the COVID-19 pandemic will have on the Company’s business;
•general economic conditions, including inflation and recession;
•adverse economic or real estate developments, either nationally or in the markets where our properties are located;
•our failure to generate sufficient cash flows to service our indebtedness or to pay down or refinance our indebtedness;
•fluctuations and increases in interest rates and operating costs;
•the availability, terms, and deployment of debt and equity capital, including our unsecured revolving credit facility;
•our ability to make distributions on our common shares;
•general volatility of the market price of our common shares;
•our increased vulnerability economically due to the concentration of our investments in health care properties;
•our geographic concentration in Texas causes us to be particularly exposed to downturns in the Texas economy or other changes in Texas market conditions;
•changes in our business or strategy;
•our dependence upon key personnel whose continued service is not guaranteed;
•our ability to identify, hire, and retain highly qualified personnel in the future;
•the degree and nature of our competition;
•changes in governmental regulations or interpretations thereof, such as real estate and zoning laws and increases in real property tax rates, taxation of real estate investment trusts (“REITs”), and similar matters;
•defaults on or non-renewal of leases by tenants;
•decreased rental rates or increased vacancy rates;
•difficulties in identifying health care properties to acquire and completing acquisitions;
•competition for investment opportunities;
•any adverse effects to the business, financial position or results of operations of CommonSpirit Health, or one or more of the CommonSpirit Health-affiliated tenants, that impact the ability of CommonSpirit Health-affiliated tenants to pay us rent;
•the impact of our investments in joint ventures we have made and may make in the future;
•the financial condition and liquidity of, or disputes with, any joint venture and development partners with whom we may make co-investments in the future;
•the disruption of our business and the compromise of confidential information resulting from cybersecurity attacks, breaches, and other incidents;
•our ability to operate as a public company;
•changes in health care laws or government reimbursement rates;
•changes in accounting principles generally accepted in the United States (“GAAP”);
•lack of or insufficient amounts of insurance;
•the potential impact of severe weather events and climate change;
•other factors affecting the real estate industry generally;
•our failure to maintain our qualification as a REIT for U.S. federal income tax purposes;
•limitations imposed on our business and our ability to satisfy complex rules in order for us to qualify as a REIT for U.S. federal income tax purposes; and
•other factors that may materially adversely affect us, or the per share trading price of our common shares, including:
•the number of our common shares available for future issuance or sale;
•our issuance of equity securities or the perception that such issuance might occur;
•future debt;
•failure of securities analysts to publish research or reports about us or our industry; and
•securities analysts’ downgrade of our common shares or the health care-related real estate sector.
While forward-looking statements reflect our good faith beliefs, they are not guarantees of future performance. We disclaim any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events, or other changes after the date of this report, except as required by applicable law. You should not place undue reliance on any forward-looking statements that are based on information currently available to us or the third parties making the forward-looking statements. For a further discussion of these and other factors that could impact our future results, performance or transactions, see Part I, Item 1A (Risk Factors) of our Annual Report on Form 10-K for the fiscal year ended December 31, 2021 filed with the Securities and Exchange Commission (the “Commission”) on February 24, 2022 (the “2021 Annual Report”).
As used in this report, unless the context otherwise requires, references to “we,” “us,” “our,” and the “Company” refer to Physicians Realty Trust (the “Trust”), a Maryland real estate investment trust, and Physicians Realty L.P. (the “Operating Partnership”), a Delaware limited partnership and the consolidated subsidiary of the Trust through which we conduct our business.
PART I. Financial Information
Item 1. Financial Statements
Physicians Realty Trust
Consolidated Balance Sheets
(In thousands, except share and per share data)
| | | | | | | | | | | |
| September 30, 2022 | | December 31, 2021 |
| (unaudited) | | |
ASSETS | | | |
Investment properties: | | | |
Land and improvements | $ | 241,385 | | | $ | 235,453 | |
Building and improvements | 4,666,085 | | | 4,612,561 | |
Tenant improvements | 90,318 | | | 86,018 | |
Acquired lease intangibles | 505,335 | | | 498,221 | |
| 5,503,123 | | | 5,432,253 | |
Accumulated depreciation | (948,883) | | | (821,036) | |
Net real estate property | 4,554,240 | | | 4,611,217 | |
Real estate held for sale | — | | | 1,964 | |
Right-of-use lease assets, net | 232,320 | | | 235,483 | |
Real estate loans receivable, net | 120,576 | | | 117,844 | |
Investments in unconsolidated entities | 79,613 | | | 69,793 | |
Net real estate investments | 4,986,749 | | | 5,036,301 | |
Cash and cash equivalents | 2,512 | | | 9,876 | |
Tenant receivables, net | 9,644 | | | 4,948 | |
Other assets | 143,569 | | | 131,584 | |
Total assets | $ | 5,142,474 | | | $ | 5,182,709 | |
LIABILITIES AND EQUITY | | | |
Liabilities: | | | |
Credit facility | $ | 256,893 | | | $ | 267,641 | |
Notes payable | 1,465,078 | | | 1,464,008 | |
Mortgage debt | 164,556 | | | 180,269 | |
Accounts payable | 6,526 | | | 6,651 | |
Dividends and distributions payable | 58,382 | | | 57,246 | |
Accrued expenses and other liabilities | 92,494 | | | 86,254 | |
Lease liabilities | 104,905 | | | 104,957 | |
Acquired lease intangibles, net | 24,970 | | | 21,569 | |
Total liabilities | 2,173,804 | | | 2,188,595 | |
| | | |
Redeemable noncontrolling interests - partially owned properties | 3,288 | | | 7,081 | |
| | | |
Equity: | | | |
Common shares, $0.01 par value, 500,000,000 common shares authorized, 226,763,146 and 224,678,116 common shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively | 2,268 | | | 2,247 | |
Additional paid-in capital | 3,648,983 | | | 3,610,954 | |
Accumulated deficit | (838,729) | | | (776,001) | |
Accumulated other comprehensive income (loss) | 5,323 | | | (892) | |
Total shareholders’ equity | 2,817,845 | | | 2,836,308 | |
Noncontrolling interests: | | | |
Operating Partnership | 146,426 | | | 150,241 | |
Partially owned properties | 1,111 | | | 484 | |
Total noncontrolling interests | 147,537 | | | 150,725 | |
Total equity | 2,965,382 | | | 2,987,033 | |
Total liabilities and equity | $ | 5,142,474 | | | $ | 5,182,709 | |
The accompanying notes are an integral part of these consolidated financial statements.
Physicians Realty Trust
Consolidated Statements of Income
(In thousands, except share and per share data) (Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended September 30, | | Nine Months Ended September 30, |
| 2022 | | 2021 | | 2022 | | 2021 |
Revenues: | | | | | | | |
Rental and related revenues | $ | 127,381 | | | $ | 110,314 | | | $ | 381,785 | | | $ | 326,017 | |
Interest income on real estate loans and other | 4,132 | | | 4,997 | | | 12,285 | | | 15,558 | |
Total revenues | 131,513 | | | 115,311 | | | 394,070 | | | 341,575 | |
Expenses: | | | | | | | |
Interest expense | 18,299 | | | 13,498 | | | 52,356 | | | 40,754 | |
General and administrative | 10,079 | | | 9,534 | | | 30,400 | | | 28,116 | |
Operating expenses | 43,647 | | | 35,679 | | | 128,080 | | | 103,069 | |
Depreciation and amortization | 47,040 | | | 38,582 | | | 142,002 | | | 114,663 | |
Impairment loss | — | | | 340 | | | — | | | 340 | |
Total expenses | 119,065 | | | 97,633 | | | 352,838 | | | 286,942 | |
Income before equity in loss of unconsolidated entities and gain on sale of investment properties, net: | 12,448 | | | 17,678 | | | 41,232 | | | 54,633 | |
Equity in loss of unconsolidated entities | (62) | | | (390) | | | (452) | | | (1,213) | |
Gain on sale of investment properties, net | 53,894 | | | 4,757 | | | 57,375 | | | 5,111 | |
Net income | 66,280 | | | 22,045 | | | 98,155 | | | 58,531 | |
Net income attributable to noncontrolling interests: | | | | | | | |
Operating Partnership | (3,252) | | | (529) | | | (4,830) | | | (1,405) | |
Partially owned properties (1) | (70) | | | (152) | | | (384) | | | (455) | |
Net income attributable to controlling interest | 62,958 | | | 21,364 | | | 92,941 | | | 56,671 | |
Preferred distributions | — | | | — | | | — | | | (13) | |
Net income attributable to common shareholders | $ | 62,958 | | | $ | 21,364 | | | $ | 92,941 | | | $ | 56,658 | |
Net income per share: | | | | | | | |
Basic | $ | 0.28 | | | $ | 0.10 | | | $ | 0.41 | | | $ | 0.26 | |
Diluted | $ | 0.28 | | | $ | 0.10 | | | $ | 0.41 | | | $ | 0.26 | |
Weighted average common shares: | | | | | | | |
Basic | 226,529,041 | | | 217,406,657 | | | 225,743,856 | | | 214,616,482 | |
Diluted | 239,898,462 | | | 223,992,049 | | | 239,145,383 | | | 221,399,649 | |
| | | | | | | |
Dividends and distributions declared per common share | $ | 0.23 | | | $ | 0.23 | | | $ | 0.69 | | | $ | 0.69 | |
(1)Includes amounts attributable to redeemable noncontrolling interests.
The accompanying notes are an integral part of these consolidated financial statements.
Physicians Realty Trust
Consolidated Statements of Comprehensive Income
(In thousands) (Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended September 30, | | Nine Months Ended September 30, |
| 2022 | | 2021 | | 2022 | | 2021 |
Net income | $ | 66,280 | | | $ | 22,045 | | | $ | 98,155 | | | $ | 58,531 | |
Other comprehensive income: | | | | | | | |
Change in fair value of interest rate swap agreements, net | 1,753 | | | 465 | | | 6,215 | | | 1,805 | |
Total other comprehensive income | 1,753 | | | 465 | | | 6,215 | | | 1,805 | |
Comprehensive income | 68,033 | | | 22,510 | | | 104,370 | | | 60,336 | |
Comprehensive income attributable to noncontrolling interests - Operating Partnership | (3,336) | | | (541) | | | (5,137) | | | (1,449) | |
Comprehensive income attributable to noncontrolling interests - partially owned properties | (70) | | | (152) | | | (384) | | | (455) | |
Comprehensive income attributable to common shareholders | $ | 64,627 | | | $ | 21,817 | | | $ | 98,849 | | | $ | 58,432 | |
The accompanying notes are an integral part of these consolidated financial statements.
Physicians Realty Trust
Consolidated Statements of Equity
(In thousands) (Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Par Value | | Additional Paid in Capital | | Accumulated Deficit | | Accumulated Other Comprehensive Income (Loss) | | Total Shareholders’ Equity | | Operating Partnership Noncontrolling Interest | | Partially Owned Properties Noncontrolling Interest | | Total Noncontrolling Interests | | Total Equity |
Balance at December 31, 2021 | $ | 2,247 | | | $ | 3,610,954 | | | $ | (776,001) | | | $ | (892) | | | $ | 2,836,308 | | | $ | 150,241 | | | $ | 484 | | | $ | 150,725 | | | $ | 2,987,033 | |
| | | | | | | | | | | | | | | | | |
Net proceeds from sale of common shares | 3 | | | 5,029 | | | — | | | — | | | 5,032 | | | — | | | — | | | — | | | 5,032 | |
Restricted share award grants, net | 3 | | | 118 | | | (421) | | | — | | | (300) | | | — | | | — | | | — | | | (300) | |
Purchase of OP Units | — | | | — | | | — | | | — | | | — | | | (184) | | | — | | | (184) | | | (184) | |
| | | | | | | | | | | | | | | | | |
Dividends/distributions declared | — | | | — | | | (51,879) | | | — | | | (51,879) | | | (2,740) | | | — | | | (2,740) | | | (54,619) | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Contributions | — | | | — | | | — | | | — | | | — | | | — | | | 569 | | | 569 | | | 569 | |
Distributions | — | | | — | | | — | | | — | | | — | | | — | | | (55) | | | (55) | | | (55) | |
Change in market value of Redeemable Noncontrolling Interest in partially owned properties | — | | | — | | | 717 | | | — | | | 717 | | | — | | | — | | | — | | | 717 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Change in fair value of interest rate swap agreement | — | | | — | | | — | | | 1,379 | | | 1,379 | | | — | | | — | | | — | | | 1,379 | |
Adjustment for Noncontrolling Interests ownership in Operating Partnership | — | | | (217) | | | — | | | — | | | (217) | | | 217 | | | — | | | 217 | | | — | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Net income | — | | | — | | | 13,092 | | | — | | | 13,092 | | | 692 | | | 82 | | | 774 | | | 13,866 | |
Balance as of March 31, 2022 | $ | 2,253 | | | $ | 3,615,884 | | | $ | (814,492) | | | $ | 487 | | | $ | 2,804,132 | | | $ | 148,226 | | | $ | 1,080 | | | $ | 149,306 | | | $ | 2,953,438 | |
| | | | | | | | | | | | | | | | | |
Net proceeds from sale of common shares | 9 | | | 18,475 | | | — | | | — | | | 18,484 | | | — | | | — | | | — | | | 18,484 | |
Restricted share award grants, net | 1 | | | 3,588 | | | (911) | | | — | | | 2,678 | | | — | | | — | | | — | | | 2,678 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Dividends/distributions declared | — | | | — | | | (52,116) | | | — | | | (52,116) | | | (2,712) | | | — | | | (2,712) | | | (54,828) | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Distributions | — | | | — | | | — | | | — | | | — | | | — | | | (61) | | | (61) | | | (61) | |
Change in market value of Redeemable Noncontrolling Interest in partially owned properties | — | | | — | | | 527 | | | — | | | 527 | | | — | | | — | | | — | | | 527 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Change in fair value of interest rate swap agreement | — | | | — | | | — | | | 3,083 | | | 3,083 | | | — | | | — | | | — | | | 3,083 | |
Adjustment for Noncontrolling Interests ownership in Operating Partnership | — | | | (488) | | | — | | | — | | | (488) | | | 488 | | | — | | | 488 | | | — | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Net income | — | | | — | | | 16,891 | | | — | | | 16,891 | | | 886 | | | 79 | | | 965 | | | 17,856 | |
Balance as of June 30, 2022 | $ | 2,263 | | | $ | 3,637,459 | | | $ | (850,101) | | | $ | 3,570 | | | $ | 2,793,191 | | | $ | 146,888 | | | $ | 1,098 | | | $ | 147,986 | | | $ | 2,941,177 | |
| | | | | | | | | | | | | | | | | |
Net proceeds from sale of common shares | 5 | | | 7,925 | | | — | | | — | | | 7,930 | | | — | | | — | | | — | | | 7,930 | |
Restricted share award grants, net | — | | | 4,326 | | | (536) | | | — | | | 3,790 | | | — | | | — | | | — | | | 3,790 | |
Purchase of OP Units | — | | | — | | | — | | | — | | | — | | | (2,139) | | | — | | | (2,139) | | | (2,139) | |
| | | | | | | | | | | | | | | | | |
Dividends/distributions declared | — | | | — | | | (52,563) | | | — | | | (52,563) | | | (2,302) | | | — | | | (2,302) | | | (54,865) | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Distributions | — | | | — | | | — | | | — | | | — | | | — | | | (61) | | | (61) | | | (61) | |
Change in market value of Redeemable Noncontrolling Interest in partially owned properties | — | | | — | | | 1,513 | | | — | | | 1,513 | | | — | | | — | | | — | | | 1,513 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Change in fair value of interest rate swap agreement | — | | | — | | | — | | | 1,753 | | | 1,753 | | | — | | | — | | | — | | | 1,753 | |
Adjustment for Noncontrolling Interests ownership in Operating Partnership | — | | | (727) | | | — | | | — | | | (727) | | | 727 | | | — | | | 727 | | | — | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Net income | — | | | — | | | 62,958 | | | — | | | 62,958 | | | 3,252 | | | 74 | | | 3,326 | | | 66,284 | |
Balance as of September 30, 2022 | $ | 2,268 | | | $ | 3,648,983 | | | $ | (838,729) | | | $ | 5,323 | | | $ | 2,817,845 | | | $ | 146,426 | | | $ | 1,111 | | | $ | 147,537 | | | $ | 2,965,382 | |
The accompanying notes are an integral part of these consolidated financial statements.
Physicians Realty Trust
Consolidated Statements of Equity
(In thousands) (Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Par Value | | Additional Paid in Capital | | Accumulated Deficit | | Accumulated Other Comprehensive Income (Loss) | | Total Shareholders’ Equity | | Operating Partnership Noncontrolling Interest | | Partially Owned Properties Noncontrolling Interest | | Total Noncontrolling Interests | | Total Equity |
Balance at December 31, 2020 | $ | 2,096 | | | $ | 3,303,231 | | | $ | (658,171) | | | $ | (5,859) | | | $ | 2,641,297 | | | $ | 73,302 | | | $ | 403 | | | $ | 73,705 | | | $ | 2,715,002 | |
| | | | | | | | | | | | | | | | | |
Net proceeds from sale of common shares | 28 | | | 52,404 | | | — | | | — | | | 52,432 | | | — | | | — | | | — | | | 52,432 | |
Restricted share award grants, net | 4 | | | (333) | | | (664) | | | — | | | (993) | | | — | | | — | | | — | | | (993) | |
Purchase of OP Units | — | | | — | | | — | | | — | | | — | | | (269) | | | — | | | (269) | | | (269) | |
| | | | | | | | | | | | | | | | | |
Dividends/distributions declared | — | | | — | | | (49,011) | | | — | | | (49,011) | | | (1,243) | | | — | | | (1,243) | | | (50,254) | |
Preferred distributions | — | | | — | | | (13) | | | — | | | (13) | | | — | | | — | | | — | | | (13) | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Distributions | — | | | — | | | — | | | — | | | — | | | — | | | (73) | | | (73) | | | (73) | |
Change in market value of Redeemable Noncontrolling Interests | — | | | (23) | | | 896 | | | — | | | 873 | | | — | | | — | | | — | | | 873 | |
| | | | | | | | | | | | | | | | | |
Change in fair value of interest rate swap agreements | — | | | — | | | — | | | 797 | | | 797 | | | — | | | — | | | — | | | 797 | |
Adjustment for Noncontrolling Interests ownership in Operating Partnership | — | | | 1,136 | | | — | | | — | | | 1,136 | | | (1,136) | | | — | | | (1,136) | | | — | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Net income | — | | | — | | | 17,194 | | | — | | | 17,194 | | | 459 | | | 76 | | | 535 | | | 17,729 | |
Balance as of March 31, 2021 | $ | 2,128 | | | $ | 3,356,415 | | | $ | (689,769) | | | $ | (5,062) | | | $ | 2,663,712 | | | $ | 71,113 | | | $ | 406 | | | $ | 71,519 | | | $ | 2,735,231 | |
| | | | | | | | | | | | | | | | | |
Net proceeds from sale of common shares | 46 | | | 82,781 | | | — | | | — | | | 82,827 | | | — | | | — | | | — | | | 82,827 | |
Restricted share award grants, net | — | | | 3,242 | | | (482) | | | — | | | 2,760 | | | — | | | — | | | — | | | 2,760 | |
Purchase of OP Units | — | | | — | | | — | | | — | | | — | | | (5,063) | | | — | | | (5,063) | | | (5,063) | |
| | | | | | | | | | | | | | | | | |
Dividends/distributions declared | — | | | — | | | (50,061) | | | — | | | (50,061) | | | (1,242) | | | — | | | (1,242) | | | (51,303) | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Distributions | — | | | — | | | — | | | — | | | — | | | — | | | (50) | | | (50) | | | (50) | |
Change in market value of Redeemable Noncontrolling Interests | — | | | — | | | (388) | | | — | | | (388) | | | — | | | — | | | — | | | (388) | |
| | | | | | | | | | | | | | | | | |
Change in fair value of interest rate swap agreements | — | | | — | | | — | | | 543 | | | 543 | | | — | | | — | | | — | | | 543 | |
Adjustment for Noncontrolling Interests ownership in Operating Partnership | — | | | (2,124) | | | — | | | — | | | (2,124) | | | 2,124 | | | — | | | 2,124 | | | — | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Net income | — | | | — | | | 18,113 | | | — | | | 18,113 | | | 417 | | | 76 | | | 493 | | | 18,606 | |
Balance as of June 30, 2021 | $ | 2,174 | | | $ | 3,440,314 | | | $ | (722,587) | | | $ | (4,519) | | | $ | 2,715,382 | | | $ | 67,349 | | | $ | 432 | | | $ | 67,781 | | | $ | 2,783,163 | |
| | | | | | | | | | | | | | | | | |
Net proceeds from sale of common shares | — | | | (117) | | | — | | | — | | | (117) | | | — | | | — | | | — | | | (117) | |
Restricted share award grants, net | — | | | 3,642 | | | 113 | | | — | | | 3,755 | | | — | | | — | | | — | | | 3,755 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Dividends/distributions declared | — | | | — | | | (50,062) | | | — | | | (50,062) | | | (1,233) | | | — | | | (1,233) | | | (51,295) | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Distributions | — | | | — | | | — | | | — | | | — | | | — | | | (51) | | | (51) | | | (51) | |
Change in market value of Redeemable Noncontrolling Interests | — | | | — | | | 22 | | | — | | | 22 | | | — | | | — | | | — | | | 22 | |
| | | | | | | | | | | | | | | | | |
Change in fair value of interest rate swap agreements | — | | | — | | | — | | | 465 | | | 465 | | | — | | | — | | | — | | | 465 | |
Adjustment for Noncontrolling Interests ownership in Operating Partnership | — | | | (91) | | | — | | | — | | | (91) | | | 91 | | | — | | | 91 | | | — | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Net income | — | | | — | | | 21,364 | | | — | | | 21,364 | | | 529 | | | 76 | | | 605 | | | 21,969 | |
Balance as of September 30, 2021 | $ | 2,174 | | | $ | 3,443,748 | | | $ | (751,150) | | | $ | (4,054) | | | $ | 2,690,718 | | | $ | 66,736 | | | $ | 457 | | | $ | 67,193 | | | $ | 2,757,911 | |
The accompanying notes are an integral part of these consolidated financial statements.
Physicians Realty Trust
Consolidated Statements of Cash Flows
(In thousands) (Unaudited)
| | | | | | | | | | | |
| Nine Months Ended September 30, |
| 2022 | | 2021 |
Cash Flows from Operating Activities: | | | |
Net income | $ | 98,155 | | | $ | 58,531 | |
Adjustments to reconcile net income to net cash provided by operating activities | | | |
Depreciation and amortization | 142,002 | | | 114,663 | |
Amortization of deferred financing costs | 1,739 | | | 1,744 | |
Amortization of lease inducements and above/below-market lease intangibles | 4,458 | | | 3,526 | |
Straight-line rental revenue/expense | (5,359) | | | (7,276) | |
Amortization of discount on unsecured senior notes | 794 | | | 489 | |
Amortization of above market assumed debt | (10) | | | (47) | |
Gain on sale of investment properties, net | (57,375) | |