10-Q 1 doc-20210930.htm 10-Q doc-20210930
false2021Q30001574540--12-31P1Y00015745402021-01-012021-09-30xbrli:shares00015745402021-10-29iso4217:USD00015745402021-09-3000015745402020-12-31iso4217:USDxbrli:shares00015745402021-07-012021-09-3000015745402020-07-012020-09-3000015745402020-01-012020-09-300001574540us-gaap:CommonStockMember2020-12-310001574540us-gaap:AdditionalPaidInCapitalMember2020-12-310001574540us-gaap:RetainedEarningsMember2020-12-310001574540us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2020-12-310001574540us-gaap:ParentMember2020-12-310001574540doc:OperatingPartnershipNoncontrollingInterestMember2020-12-310001574540doc:PartiallyOwnedPropertiesNoncontrollingInterestMember2020-12-310001574540us-gaap:NoncontrollingInterestMember2020-12-310001574540us-gaap:CommonStockMember2021-01-012021-03-310001574540us-gaap:AdditionalPaidInCapitalMember2021-01-012021-03-310001574540us-gaap:ParentMember2021-01-012021-03-3100015745402021-01-012021-03-310001574540us-gaap:RetainedEarningsMember2021-01-012021-03-310001574540doc:OperatingPartnershipNoncontrollingInterestMember2021-01-012021-03-310001574540us-gaap:NoncontrollingInterestMember2021-01-012021-03-310001574540doc:PartiallyOwnedPropertiesNoncontrollingInterestMember2021-01-012021-03-310001574540us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2021-01-012021-03-310001574540us-gaap:CommonStockMember2021-03-310001574540us-gaap:AdditionalPaidInCapitalMember2021-03-310001574540us-gaap:RetainedEarningsMember2021-03-310001574540us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2021-03-310001574540us-gaap:ParentMember2021-03-310001574540doc:OperatingPartnershipNoncontrollingInterestMember2021-03-310001574540doc:PartiallyOwnedPropertiesNoncontrollingInterestMember2021-03-310001574540us-gaap:NoncontrollingInterestMember2021-03-3100015745402021-03-310001574540us-gaap:CommonStockMember2021-04-012021-06-300001574540us-gaap:AdditionalPaidInCapitalMember2021-04-012021-06-300001574540us-gaap:ParentMember2021-04-012021-06-3000015745402021-04-012021-06-300001574540us-gaap:RetainedEarningsMember2021-04-012021-06-300001574540doc:OperatingPartnershipNoncontrollingInterestMember2021-04-012021-06-300001574540us-gaap:NoncontrollingInterestMember2021-04-012021-06-300001574540doc:PartiallyOwnedPropertiesNoncontrollingInterestMember2021-04-012021-06-300001574540us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2021-04-012021-06-300001574540us-gaap:CommonStockMember2021-06-300001574540us-gaap:AdditionalPaidInCapitalMember2021-06-300001574540us-gaap:RetainedEarningsMember2021-06-300001574540us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2021-06-300001574540us-gaap:ParentMember2021-06-300001574540doc:OperatingPartnershipNoncontrollingInterestMember2021-06-300001574540doc:PartiallyOwnedPropertiesNoncontrollingInterestMember2021-06-300001574540us-gaap:NoncontrollingInterestMember2021-06-3000015745402021-06-300001574540us-gaap:AdditionalPaidInCapitalMember2021-07-012021-09-300001574540us-gaap:ParentMember2021-07-012021-09-300001574540us-gaap:RetainedEarningsMember2021-07-012021-09-300001574540doc:OperatingPartnershipNoncontrollingInterestMember2021-07-012021-09-300001574540us-gaap:NoncontrollingInterestMember2021-07-012021-09-300001574540doc:PartiallyOwnedPropertiesNoncontrollingInterestMember2021-07-012021-09-300001574540us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2021-07-012021-09-300001574540us-gaap:CommonStockMember2021-09-300001574540us-gaap:AdditionalPaidInCapitalMember2021-09-300001574540us-gaap:RetainedEarningsMember2021-09-300001574540us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2021-09-300001574540us-gaap:ParentMember2021-09-300001574540doc:OperatingPartnershipNoncontrollingInterestMember2021-09-300001574540doc:PartiallyOwnedPropertiesNoncontrollingInterestMember2021-09-300001574540us-gaap:NoncontrollingInterestMember2021-09-300001574540us-gaap:CommonStockMember2019-12-310001574540us-gaap:AdditionalPaidInCapitalMember2019-12-310001574540us-gaap:RetainedEarningsMember2019-12-310001574540us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2019-12-310001574540us-gaap:ParentMember2019-12-310001574540doc:OperatingPartnershipNoncontrollingInterestMember2019-12-310001574540doc:PartiallyOwnedPropertiesNoncontrollingInterestMember2019-12-310001574540us-gaap:NoncontrollingInterestMember2019-12-3100015745402019-12-310001574540us-gaap:AdditionalPaidInCapitalMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2019-12-310001574540us-gaap:ParentMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2019-12-310001574540srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2019-12-310001574540us-gaap:CommonStockMember2020-01-012020-03-310001574540us-gaap:AdditionalPaidInCapitalMember2020-01-012020-03-310001574540us-gaap:ParentMember2020-01-012020-03-3100015745402020-01-012020-03-310001574540us-gaap:RetainedEarningsMember2020-01-012020-03-310001574540doc:OperatingPartnershipNoncontrollingInterestMember2020-01-012020-03-310001574540us-gaap:NoncontrollingInterestMember2020-01-012020-03-310001574540doc:PartiallyOwnedPropertiesNoncontrollingInterestMember2020-01-012020-03-310001574540us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2020-01-012020-03-310001574540us-gaap:CommonStockMember2020-03-310001574540us-gaap:AdditionalPaidInCapitalMember2020-03-310001574540us-gaap:RetainedEarningsMember2020-03-310001574540us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2020-03-310001574540us-gaap:ParentMember2020-03-310001574540doc:OperatingPartnershipNoncontrollingInterestMember2020-03-310001574540doc:PartiallyOwnedPropertiesNoncontrollingInterestMember2020-03-310001574540us-gaap:NoncontrollingInterestMember2020-03-3100015745402020-03-310001574540us-gaap:CommonStockMember2020-04-012020-06-300001574540us-gaap:AdditionalPaidInCapitalMember2020-04-012020-06-300001574540us-gaap:ParentMember2020-04-012020-06-3000015745402020-04-012020-06-300001574540us-gaap:RetainedEarningsMember2020-04-012020-06-300001574540doc:OperatingPartnershipNoncontrollingInterestMember2020-04-012020-06-300001574540us-gaap:NoncontrollingInterestMember2020-04-012020-06-300001574540doc:PartiallyOwnedPropertiesNoncontrollingInterestMember2020-04-012020-06-300001574540us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2020-04-012020-06-300001574540us-gaap:CommonStockMember2020-06-300001574540us-gaap:AdditionalPaidInCapitalMember2020-06-300001574540us-gaap:RetainedEarningsMember2020-06-300001574540us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2020-06-300001574540us-gaap:ParentMember2020-06-300001574540doc:OperatingPartnershipNoncontrollingInterestMember2020-06-300001574540doc:PartiallyOwnedPropertiesNoncontrollingInterestMember2020-06-300001574540us-gaap:NoncontrollingInterestMember2020-06-3000015745402020-06-300001574540us-gaap:CommonStockMember2020-07-012020-09-300001574540us-gaap:AdditionalPaidInCapitalMember2020-07-012020-09-300001574540us-gaap:ParentMember2020-07-012020-09-300001574540us-gaap:RetainedEarningsMember2020-07-012020-09-300001574540doc:OperatingPartnershipNoncontrollingInterestMember2020-07-012020-09-300001574540us-gaap:NoncontrollingInterestMember2020-07-012020-09-300001574540doc:PartiallyOwnedPropertiesNoncontrollingInterestMember2020-07-012020-09-300001574540us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2020-07-012020-09-300001574540us-gaap:CommonStockMember2020-09-300001574540us-gaap:AdditionalPaidInCapitalMember2020-09-300001574540us-gaap:RetainedEarningsMember2020-09-300001574540us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2020-09-300001574540us-gaap:ParentMember2020-09-300001574540doc:OperatingPartnershipNoncontrollingInterestMember2020-09-300001574540doc:PartiallyOwnedPropertiesNoncontrollingInterestMember2020-09-300001574540us-gaap:NoncontrollingInterestMember2020-09-3000015745402020-09-300001574540us-gaap:PrivatePlacementMemberdoc:ATMProgramMembersrt:MaximumMember2019-11-012019-11-300001574540us-gaap:PrivatePlacementMemberdoc:ATMProgramMembersrt:MaximumMember2021-05-012021-05-310001574540us-gaap:PrivatePlacementMemberdoc:ATMProgramMemberdoc:PhysiciansRealtyLPMember2021-01-012021-03-310001574540us-gaap:PrivatePlacementMemberdoc:ATMProgramMemberdoc:PhysiciansRealtyLPMember2021-04-012021-06-300001574540us-gaap:PrivatePlacementMemberdoc:ATMProgramMemberdoc:PhysiciansRealtyLPMember2021-07-012021-09-300001574540us-gaap:PrivatePlacementMemberdoc:ATMProgramMemberdoc:PhysiciansRealtyLPMember2021-01-012021-09-300001574540us-gaap:PrivatePlacementMemberdoc:ATMProgramMemberdoc:PhysiciansRealtyLPMember2021-09-30xbrli:pure0001574540doc:PhysiciansRealtyTrustMember2021-01-012021-09-300001574540doc:HazelwoodMedicalcommonsMemberdoc:HazelwoodMedicalcommonsMember2018-01-092018-01-090001574540doc:HazelwoodMedicalcommonsMemberus-gaap:SeriesAPreferredStockMember2021-01-042021-01-040001574540doc:HazelwoodMedicalcommonsMemberus-gaap:SeriesAPreferredStockMember2021-09-3000015745402021-09-222021-09-22doc:propertydoc:loan0001574540doc:MezzanineLoanReceivableMember2021-09-300001574540doc:TermLoanReceivableMember2021-09-300001574540us-gaap:ConstructionLoansMember2021-09-300001574540us-gaap:AccountingStandardsUpdate201613Membersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:RetainedEarningsMember2019-12-31doc:healthcarepropertydoc:condominium_unit0001574540doc:TwoMedicalCondominiumUnitsAcquiredIn2021Member2021-01-012021-09-300001574540doc:PreviouslyOutstandingConstructionLoanMember2021-01-012021-09-30doc:mezzanine_loan0001574540us-gaap:RealEstateLoanMember2021-09-300001574540us-gaap:RealEstateLoanMember2021-01-012021-09-300001574540us-gaap:ConstructionLoansMember2021-01-012021-09-300001574540doc:DavisJointVentureMember2021-08-182021-08-180001574540doc:EarnOutInvestmentsMember2021-01-012021-09-300001574540doc:AtkinsPortfolio5MOBsMember2021-08-302021-08-300001574540doc:HonorHealthSonoranAmbulatoryCenterMember2021-09-232021-09-230001574540doc:LoanInvestmentsMember2021-07-012021-09-300001574540doc:DavisJointVentureMember2021-07-012021-09-300001574540doc:PeriodOneMember2021-03-310001574540doc:PeriodTwoMember2021-06-300001574540doc:PeriodThreeMember2021-09-300001574540doc:PeriodOneMemberus-gaap:LeasesAcquiredInPlaceMember2021-03-310001574540us-gaap:LeasesAcquiredInPlaceMemberdoc:PeriodTwoMember2021-06-300001574540us-gaap:LeasesAcquiredInPlaceMemberdoc:PeriodThreeMember2021-09-300001574540us-gaap:LeasesAcquiredInPlaceMember2021-09-300001574540doc:PeriodOneMemberus-gaap:AboveMarketLeasesMember2021-03-310001574540us-gaap:AboveMarketLeasesMemberdoc:PeriodTwoMember2021-06-300001574540us-gaap:AboveMarketLeasesMemberdoc:PeriodThreeMember2021-09-300001574540us-gaap:AboveMarketLeasesMember2021-09-300001574540doc:PeriodOneMemberdoc:BelowMarketLeasesMember2021-03-310001574540doc:BelowMarketLeasesMemberdoc:PeriodTwoMember2021-06-300001574540doc:BelowMarketLeasesMemberdoc:PeriodThreeMember2021-09-300001574540doc:BelowMarketLeasesMember2021-09-300001574540us-gaap:LeasesAcquiredInPlaceMember2020-12-310001574540us-gaap:AboveMarketLeasesMember2020-12-310001574540doc:LeaseholdInterestMember2021-09-300001574540doc:LeaseholdInterestMember2020-12-310001574540doc:BelowMarketLeasesMember2020-12-310001574540us-gaap:LeasesAcquiredInPlaceMember2021-07-012021-09-300001574540us-gaap:LeasesAcquiredInPlaceMember2020-07-012020-09-300001574540us-gaap:LeasesAcquiredInPlaceMember2021-01-012021-09-300001574540us-gaap:LeasesAcquiredInPlaceMember2020-01-012020-09-300001574540us-gaap:AboveMarketLeasesMember2021-07-012021-09-300001574540us-gaap:AboveMarketLeasesMember2020-07-012020-09-300001574540us-gaap:AboveMarketLeasesMember2021-01-012021-09-300001574540us-gaap:AboveMarketLeasesMember2020-01-012020-09-300001574540doc:LeaseholdInterestMember2021-07-012021-09-300001574540doc:LeaseholdInterestMember2020-07-012020-09-300001574540doc:LeaseholdInterestMember2021-01-012021-09-300001574540doc:LeaseholdInterestMember2020-01-012020-09-300001574540doc:BelowMarketLeasesMember2021-07-012021-09-300001574540doc:BelowMarketLeasesMember2020-07-012020-09-300001574540doc:BelowMarketLeasesMember2021-01-012021-09-300001574540doc:BelowMarketLeasesMember2020-01-012020-09-300001574540doc:MortgageNotesBearingFixedInterestRateDueIn20212022And2024Memberus-gaap:MortgagesMember2021-09-300001574540doc:MortgageNotesBearingFixedInterestRateDueIn20212022And2024Memberus-gaap:MortgagesMember2020-12-310001574540us-gaap:MortgagesMemberdoc:MortgageNotesBearingVariableInterestDue2028Member2021-09-300001574540us-gaap:MortgagesMemberdoc:MortgageNotesBearingVariableInterestDue2028Member2020-12-310001574540us-gaap:MortgagesMember2021-09-300001574540us-gaap:MortgagesMember2020-12-310001574540us-gaap:RevolvingCreditFacilityMemberdoc:UnsecuredRevolvingCreditFacilityBearingVariableInterestMember2021-09-300001574540us-gaap:RevolvingCreditFacilityMemberdoc:UnsecuredRevolvingCreditFacilityBearingVariableInterestMember2020-12-310001574540us-gaap:SeniorNotesMemberdoc:UnsecuredNotesBearingFixedInterestDueMarch2027Member2021-09-300001574540us-gaap:SeniorNotesMemberdoc:UnsecuredNotesBearingFixedInterestDueMarch2027Member2020-12-310001574540doc:UnsecuredNotesBearingFixedInterestDueJanuary2028Memberus-gaap:SeniorNotesMember2021-09-300001574540doc:UnsecuredNotesBearingFixedInterestDueJanuary2028Memberus-gaap:SeniorNotesMember2020-12-310001574540us-gaap:UnsecuredDebtMemberdoc:UnsecuredTermLoanDueJune2023Member2021-09-300001574540us-gaap:UnsecuredDebtMemberdoc:UnsecuredTermLoanDueJune2023Member2020-12-310001574540doc:UnsecuredNotesBearingFixedInterestDueJanuary2023to2031Memberus-gaap:SeniorNotesMember2021-09-300001574540doc:UnsecuredNotesBearingFixedInterestDueJanuary2023to2031Memberus-gaap:SeniorNotesMembersrt:MinimumMember2021-09-300001574540doc:UnsecuredNotesBearingFixedInterestDueJanuary2023to2031Memberus-gaap:SeniorNotesMembersrt:MaximumMember2021-09-300001574540doc:UnsecuredNotesBearingFixedInterestDueJanuary2023to2031Memberus-gaap:SeniorNotesMember2020-12-310001574540us-gaap:SeniorNotesMemberdoc:SeniorUnsecuredNotesDueAugust2025to2027Member2021-09-300001574540us-gaap:SeniorNotesMembersrt:MinimumMemberdoc:SeniorUnsecuredNotesDueAugust2025to2027Member2021-09-300001574540us-gaap:SeniorNotesMemberdoc:SeniorUnsecuredNotesDueAugust2025to2027Membersrt:MaximumMember2021-09-300001574540us-gaap:SeniorNotesMemberdoc:SeniorUnsecuredNotesDueAugust2025to2027Member2020-12-310001574540doc:MortgageNotesBearingFixedInterestRateDueIn2022And2024Membersrt:MinimumMemberus-gaap:MortgagesMember2021-09-300001574540doc:MortgageNotesBearingFixedInterestRateDueIn2022And2024Membersrt:MaximumMemberus-gaap:MortgagesMember2021-09-300001574540doc:MortgageNotesBearingFixedInterestRateDueIn2022And2024Memberus-gaap:MortgagesMember2021-09-300001574540srt:MinimumMemberdoc:MortgageNotesBearingFixedInterestRateDueIn20212022And2024Memberus-gaap:MortgagesMember2020-12-310001574540doc:MortgageNotesBearingFixedInterestRateDueIn20212022And2024Membersrt:MaximumMemberus-gaap:MortgagesMember2020-12-310001574540us-gaap:MortgagesMemberdoc:MortgageNotesBearingVariableInterestDue2028Memberus-gaap:LondonInterbankOfferedRateLIBORMember2021-01-012021-09-300001574540doc:A2021ThirdAmendedAndRestatedCreditAgreementMemberus-gaap:RevolvingCreditFacilityMember2021-09-240001574540doc:A2021ThirdAmendedAndRestatedCreditAgreementMemberus-gaap:RevolvingCreditFacilityMember2021-01-012021-09-300001574540us-gaap:RevolvingCreditFacilityMemberdoc:RevolvingCreditFacilityDueSeptember2022Member2020-12-310001574540us-gaap:RevolvingCreditFacilityMemberdoc:RevolvingCreditFacilityDueSeptember2022Member2020-01-012020-12-310001574540us-gaap:UnsecuredDebtMemberdoc:A2018CreditAgreementAmendmentMemberus-gaap:LondonInterbankOfferedRateLIBORMember2021-01-012021-09-300001574540us-gaap:InterestRateSwapMemberus-gaap:UnsecuredDebtMemberus-gaap:LondonInterbankOfferedRateLIBORMember2021-09-300001574540doc:A2021ThirdAmendedAndRestatedCreditAgreementMemberdoc:TermLoanMember2021-09-240001574540doc:A2021ThirdAmendedAndRestatedCreditAgreementMember2021-09-240001574540doc:A2021ThirdAmendedAndRestatedCreditAgreementMember2018-08-07doc:extensionOption0001574540us-gaap:RevolvingCreditFacilityMember2021-09-300001574540us-gaap:RevolvingCreditFacilityMember2021-01-012021-09-300001574540doc:A2018CreditAgreementAmendmentMemberus-gaap:LondonInterbankOfferedRateLIBORMember2021-01-012021-09-300001574540doc:A2018CreditAgreementAmendmentMember2021-01-012021-09-300001574540doc:TermLoanMember2016-07-070001574540doc:A2018CreditAgreementAmendmentMemberdoc:TermLoanMember2016-07-072016-07-070001574540us-gaap:UnsecuredDebtMemberdoc:A2018CreditAgreementAmendmentMemberus-gaap:LondonInterbankOfferedRateLIBORMember2016-07-072016-07-070001574540us-gaap:InterestRateSwapMemberus-gaap:UnsecuredDebtMemberus-gaap:LondonInterbankOfferedRateLIBORMember2016-07-070001574540doc:CreditratingatleastAorA3Memberus-gaap:LondonInterbankOfferedRateLIBORMemberdoc:AdjustedLIBORRateRevolverLoansAndLetterOfCreditMember2021-01-012021-09-300001574540us-gaap:RevolvingCreditFacilityMemberdoc:CreditratingatleastAorA3Memberus-gaap:BaseRateMemberdoc:BaseRateLoansMember2021-01-012021-09-300001574540doc:AdjustedLIBORRateTermLoansAndLetterOfCreditMemberdoc:CreditratingatleastAorA3Memberus-gaap:LondonInterbankOfferedRateLIBORMember2021-01-012021-09-300001574540doc:CreditratingatleastAorA3Memberdoc:TermLoanMemberus-gaap:BaseRateMemberdoc:BaseRateLoansMember2021-01-012021-09-300001574540doc:CreditratingatleastBBBplusorBAA1Memberus-gaap:LondonInterbankOfferedRateLIBORMemberdoc:AdjustedLIBORRateRevolverLoansAndLetterOfCreditMember2021-01-012021-09-300001574540doc:CreditratingatleastBBBplusorBAA1Memberus-gaap:RevolvingCreditFacilityMemberus-gaap:BaseRateMemberdoc:BaseRateLoansMember2021-01-012021-09-300001574540doc:CreditratingatleastBBBplusorBAA1Memberdoc:AdjustedLIBORRateTermLoansAndLetterOfCreditMemberus-gaap:LondonInterbankOfferedRateLIBORMember2021-01-012021-09-300001574540doc:CreditratingatleastBBBplusorBAA1Memberdoc:TermLoanMemberus-gaap:BaseRateMemberdoc:BaseRateLoansMember2021-01-012021-09-300001574540doc:CreditratingatleastBBBorBAA2Memberus-gaap:LondonInterbankOfferedRateLIBORMemberdoc:AdjustedLIBORRateRevolverLoansAndLetterOfCreditMember2021-01-012021-09-300001574540us-gaap:RevolvingCreditFacilityMemberdoc:CreditratingatleastBBBorBAA2Memberus-gaap:BaseRateMemberdoc:BaseRateLoansMember2021-01-012021-09-300001574540doc:AdjustedLIBORRateTermLoansAndLetterOfCreditMemberdoc:CreditratingatleastBBBorBAA2Memberus-gaap:LondonInterbankOfferedRateLIBORMember2021-01-012021-09-300001574540doc:CreditratingatleastBBBorBAA2Memberdoc:TermLoanMemberus-gaap:BaseRateMemberdoc:BaseRateLoansMember2021-01-012021-09-300001574540doc:CreditratingatleastBBBorBAA3Memberus-gaap:LondonInterbankOfferedRateLIBORMemberdoc:AdjustedLIBORRateRevolverLoansAndLetterOfCreditMember2021-01-012021-09-300001574540doc:CreditratingatleastBBBorBAA3Memberus-gaap:RevolvingCreditFacilityMemberus-gaap:BaseRateMemberdoc:BaseRateLoansMember2021-01-012021-09-300001574540doc:CreditratingatleastBBBorBAA3Memberdoc:AdjustedLIBORRateTermLoansAndLetterOfCreditMemberus-gaap:LondonInterbankOfferedRateLIBORMember2021-01-012021-09-300001574540doc:CreditratingatleastBBBorBAA3Memberdoc:TermLoanMemberus-gaap:BaseRateMemberdoc:BaseRateLoansMember2021-01-012021-09-300001574540doc:CreditratingbelowBBBorBAA3Memberus-gaap:LondonInterbankOfferedRateLIBORMemberdoc:AdjustedLIBORRateRevolverLoansAndLetterOfCreditMember2021-01-012021-09-300001574540us-gaap:RevolvingCreditFacilityMemberdoc:CreditratingbelowBBBorBAA3Memberus-gaap:BaseRateMemberdoc:BaseRateLoansMember2021-01-012021-09-300001574540doc:CreditratingbelowBBBorBAA3Memberdoc:AdjustedLIBORRateTermLoansAndLetterOfCreditMemberus-gaap:LondonInterbankOfferedRateLIBORMember2021-01-012021-09-300001574540doc:CreditratingbelowBBBorBAA3Memberdoc:TermLoanMemberus-gaap:BaseRateMemberdoc:BaseRateLoansMember2021-01-012021-09-300001574540doc:TermLoanMember2021-09-300001574540us-gaap:SeniorNotesMember2021-09-300001574540doc:SeniorNotesDue2023Memberus-gaap:SeniorNotesMember2021-09-300001574540us-gaap:SeniorNotesMemberdoc:SeniorNotesDue2025Member2021-09-300001574540doc:SeniorNotesDue2026Memberus-gaap:SeniorNotesMember2021-09-300001574540us-gaap:SeniorNotesMemberdoc:SeniorNotesDue2027Member2021-09-300001574540us-gaap:SeniorNotesMemberdoc:SeniorNotesDue2028Member2021-09-300001574540us-gaap:SeniorNotesMemberdoc:SenorNotesDue2031Member2021-09-300001574540us-gaap:RevolvingCreditFacilityMemberdoc:PhysiciansRealtyLPMember2021-09-300001574540us-gaap:RevolvingCreditFacilityMemberdoc:PhysiciansRealtyLPMemberus-gaap:LondonInterbankOfferedRateLIBORMember2021-01-012021-09-30doc:instrument0001574540us-gaap:InterestRateSwapMember2021-09-30utr:Rate0001574540us-gaap:InterestRateSwapMemberus-gaap:UnsecuredDebtMember2021-09-300001574540us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:InterestRateSwapMember2021-09-300001574540us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:InterestRateSwapMember2020-12-310001574540us-gaap:RestrictedStockMemberdoc:EquityIncentivePlan2013PlanMember2019-04-300001574540us-gaap:RestrictedStockMemberdoc:EquityIncentivePlan2013PlanMemberdoc:OfficersandCertainEmployeesMember2021-01-012021-09-300001574540srt:MinimumMemberus-gaap:RestrictedStockMemberdoc:EquityIncentivePlan2013PlanMember2021-01-012021-09-300001574540us-gaap:RestrictedStockMembersrt:MaximumMemberdoc:EquityIncentivePlan2013PlanMember2021-01-012021-09-300001574540us-gaap:RestrictedStockMemberdoc:EquityIncentivePlan2013PlanMember2020-12-310001574540us-gaap:RestrictedStockMemberdoc:EquityIncentivePlan2013PlanMember2021-01-012021-09-300001574540us-gaap:RestrictedStockMemberdoc:EquityIncentivePlan2013PlanMember2021-09-300001574540us-gaap:RestrictedStockMemberdoc:EquityIncentivePlan2013PlanMember2021-07-012021-09-300001574540us-gaap:RestrictedStockMemberdoc:EquityIncentivePlan2013PlanMember2020-07-012020-09-300001574540us-gaap:RestrictedStockMemberdoc:EquityIncentivePlan2013PlanMember2020-01-012020-09-300001574540doc:TrusteesMemberus-gaap:RestrictedStockUnitsRSUMemberdoc:EquityIncentivePlan2013PlanMember2021-01-012021-01-310001574540us-gaap:RestrictedStockUnitsRSUMemberdoc:EquityIncentivePlan2013PlanMemberdoc:OfficersandCertainEmployeesMember2021-01-012021-01-310001574540doc:TrusteesMemberus-gaap:RestrictedStockUnitsRSUMemberdoc:EquityIncentivePlan2013PlanMember2021-01-310001574540doc:TrusteesMemberdoc:PerformanceBasedRestrictedStockUnitsRSUsMemberdoc:EquityIncentivePlan2013PlanMember2021-01-012021-01-310001574540us-gaap:RestrictedStockUnitsRSUMemberdoc:EquityIncentivePlan2013PlanMemberdoc:OfficersandCertainEmployeesMember2021-03-012021-03-310001574540doc:TrusteesMemberus-gaap:RestrictedStockUnitsRSUMemberdoc:EquityIncentivePlan2013PlanMember2021-03-012021-03-310001574540doc:TrusteesMemberus-gaap:RestrictedStockUnitsRSUMemberdoc:EquityIncentivePlan2013PlanMember2021-03-310001574540doc:MarketBasedRestrictedStockUnitsRSUsMemberdoc:EquityIncentivePlan2013PlanMemberdoc:OfficersandCertainEmployeesMember2021-01-012021-09-300001574540doc:MarketBasedRestrictedStockUnitsRSUsMemberdoc:EquityIncentivePlan2013PlanMemberus-gaap:ShareBasedCompensationAwardTrancheOneMember2021-03-012021-03-310001574540us-gaap:ShareBasedCompensationAwardTrancheTwoMemberdoc:MarketBasedRestrictedStockUnitsRSUsMemberdoc:EquityIncentivePlan2013PlanMember2021-03-012021-03-310001574540us-gaap:RestrictedStockUnitsRSUMemberdoc:EquityIncentivePlan2013PlanMember2021-03-012021-03-310001574540us-gaap:RestrictedStockUnitsRSUMemberdoc:EquityIncentivePlan2013PlanMember2021-03-310001574540doc:PerformanceBasedRestrictedStockUnitsRSUsMemberdoc:EquityIncentivePlan2013PlanMemberdoc:OfficersandCertainEmployeesMember2021-03-012021-03-310001574540doc:EquityIncentivePlan2013PlanMemberdoc:ExecutiveAwardsRestrictedStockUnitsRSUsMember2020-12-310001574540doc:TrusteeAwardsRestrictedStockUnitsRSUsMemberdoc:EquityIncentivePlan2013PlanMember2020-12-310001574540doc:EquityIncentivePlan2013PlanMemberdoc:ExecutiveAwardsRestrictedStockUnitsRSUsMember2021-01-012021-09-300001574540doc:TrusteeAwardsRestrictedStockUnitsRSUsMemberdoc:EquityIncentivePlan2013PlanMember2021-01-012021-09-300001574540doc:EquityIncentivePlan2013PlanMemberdoc:ExecutiveAwardsRestrictedStockUnitsRSUsMember2021-09-300001574540doc:TrusteeAwardsRestrictedStockUnitsRSUsMemberdoc:EquityIncentivePlan2013PlanMember2021-09-300001574540us-gaap:RestrictedStockUnitsRSUMemberdoc:EquityIncentivePlan2013PlanMember2021-07-012021-09-300001574540us-gaap:RestrictedStockUnitsRSUMemberdoc:EquityIncentivePlan2013PlanMember2020-07-012020-09-300001574540us-gaap:RestrictedStockUnitsRSUMemberdoc:EquityIncentivePlan2013PlanMember2021-01-012021-09-300001574540us-gaap:RestrictedStockUnitsRSUMemberdoc:EquityIncentivePlan2013PlanMember2020-01-012020-09-300001574540us-gaap:RestrictedStockUnitsRSUMemberdoc:EquityIncentivePlan2013PlanMember2021-09-30doc:asset0001574540us-gaap:FairValueMeasurementsNonrecurringMember2021-09-300001574540us-gaap:CarryingReportedAmountFairValueDisclosureMember2021-09-300001574540us-gaap:EstimateOfFairValueFairValueDisclosureMember2021-09-300001574540us-gaap:CarryingReportedAmountFairValueDisclosureMember2020-12-310001574540us-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-310001574540us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:EmbeddedDerivativeFinancialInstrumentsMember2021-09-300001574540us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:EmbeddedDerivativeFinancialInstrumentsMember2021-09-300001574540us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:EmbeddedDerivativeFinancialInstrumentsMember2020-12-310001574540us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:EmbeddedDerivativeFinancialInstrumentsMember2020-12-31doc:lease0001574540us-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMemberdoc:CommonSpiritCHINebraskaMember2021-01-012021-09-300001574540us-gaap:SalesRevenueNetMemberdoc:NorthsideHospitalMemberus-gaap:CustomerConcentrationRiskMember2021-01-012021-09-300001574540doc:UofLHealthLouisvilleIncMemberus-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMember2021-01-012021-09-300001574540us-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMemberdoc:USOncologyMember2021-01-012021-09-300001574540us-gaap:SalesRevenueNetMemberdoc:BaylorScottandWhiteHealthMemberus-gaap:CustomerConcentrationRiskMember2021-01-012021-09-300001574540us-gaap:SalesRevenueNetMemberdoc:RemainingPortfolioMemberus-gaap:CustomerConcentrationRiskMember2021-01-012021-09-300001574540us-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMember2021-01-012021-09-300001574540us-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMemberdoc:TopfivetenantrelationshipsMember2021-01-012021-09-300001574540doc:CHIPortfolioMemberus-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMember2021-01-012021-09-300001574540us-gaap:SalesRevenueNetMemberus-gaap:GeographicConcentrationRiskMemberstpr:TX2021-01-012021-09-300001574540us-gaap:SalesRevenueNetMemberus-gaap:GeographicConcentrationRiskMemberstpr:GA2021-01-012021-09-300001574540us-gaap:SalesRevenueNetMemberus-gaap:GeographicConcentrationRiskMemberstpr:IN2021-01-012021-09-300001574540stpr:NEus-gaap:SalesRevenueNetMemberus-gaap:GeographicConcentrationRiskMember2021-01-012021-09-300001574540us-gaap:SalesRevenueNetMemberus-gaap:GeographicConcentrationRiskMemberstpr:MN2021-01-012021-09-300001574540doc:AllotherstatesMemberus-gaap:SalesRevenueNetMemberus-gaap:GeographicConcentrationRiskMember2021-01-012021-09-300001574540us-gaap:SalesRevenueNetMemberus-gaap:GeographicConcentrationRiskMember2021-01-012021-09-300001574540us-gaap:RestrictedStockMember2021-07-012021-09-300001574540us-gaap:RestrictedStockMember2020-07-012020-09-300001574540us-gaap:RestrictedStockMember2021-01-012021-09-300001574540us-gaap:RestrictedStockMember2020-01-012020-09-300001574540us-gaap:RestrictedStockUnitsRSUMember2021-07-012021-09-300001574540us-gaap:RestrictedStockUnitsRSUMember2020-07-012020-09-300001574540us-gaap:RestrictedStockUnitsRSUMember2021-01-012021-09-300001574540us-gaap:RestrictedStockUnitsRSUMember2020-01-012020-09-300001574540us-gaap:SubsequentEventMemberdoc:PhysiciansRealtyLPMemberdoc:A2021ATMProgramMember2021-10-012021-11-05doc:building0001574540doc:LandmarkHealthcareCompaniesMemberus-gaap:SubsequentEventMember2021-10-01doc:state0001574540doc:LandmarkHealthcareCompaniesMemberus-gaap:SubsequentEventMember2021-10-012021-10-010001574540us-gaap:SeniorNotesMemberus-gaap:SubsequentEventMemberdoc:A2625SeniorNotesDueNovember2031Member2021-10-130001574540us-gaap:SeniorNotesMemberus-gaap:SubsequentEventMemberdoc:A2625SeniorNotesDueNovember2031Member2021-10-132021-10-130001574540us-gaap:SubsequentEventMemberus-gaap:RevolvingCreditFacilityMember2021-10-130001574540us-gaap:SubsequentEventMemberdoc:TermLoanMember2021-10-130001574540us-gaap:SubsequentEventMember2021-10-132021-10-130001574540doc:MedCoreRealtyEdenHillLLCMemberus-gaap:SubsequentEventMember2021-10-152021-10-15utr:sqft0001574540doc:MedCoreRealtyEdenHillLLCMemberus-gaap:SubsequentEventMember2021-10-150001574540us-gaap:SubsequentEventMemberdoc:MedicalOfficeFacilityScottsdaleArizonaMember2021-10-270001574540us-gaap:SubsequentEventMemberdoc:MedicalOfficeFacilityScottsdaleArizonaMember2021-10-272021-10-270001574540us-gaap:DisposalGroupHeldforsaleNotDiscontinuedOperationsMemberus-gaap:SubsequentEventMemberdoc:LifeCare20PortfolioMember2021-11-020001574540us-gaap:DisposalGroupHeldforsaleNotDiscontinuedOperationsMemberus-gaap:SubsequentEventMemberdoc:LifeCare20PortfolioMember2021-11-022021-11-02

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, 2021

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)
Maryland46-2519850
(State of Organization)(IRS Employer Identification No.)
309 N. Water Street, Suite 50053202
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 classTrading SymbolName of each exchange on which registered
Common stock, $0.01 par value per shareDOCNew 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 29, 2021 was 220,289,484.



PHYSICIANS REALTY TRUST
 
Quarterly Report on Form 10-Q
for the Quarter Ended September 30, 2021
 
Table of Contents
 
  Page Number
 
 
 
 
 
 
 
 
   
 
   
   


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 its variants, including the Delta variant and any future variants which may emerge, (the “COVID-19 pandemic”) and the actions taken by governmental authorities or others in connection with the COVID-19 pandemic on the Company’s business;

general economic conditions;

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 outstanding indebtedness, or our ability to pay down or refinance our indebtedness;

fluctuations in interest rates and increased 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;

1

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 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;

cybersecurity incidents could disrupt our business and result in the compromise of confidential information;

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;

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/A for the fiscal year ended December 31, 2020 filed with the Securities and Exchange Commission (the “Commission”) on April 9, 2021 (the “2020 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 subsidiary through which we conduct our business.
2

PART I.                         Financial Information
Item 1.                             Financial Statements
Physicians Realty Trust
Consolidated Balance Sheets
(In thousands, except share and per share data) (Unaudited)
September 30,
2021
December 31,
2020
 (unaudited) 
ASSETS  
Investment properties:  
Land and improvements$231,162 $231,621 
Building and improvements3,879,810 3,824,796 
Tenant improvements81,605 73,145 
Acquired lease intangibles409,048 406,935 
 4,601,625 4,536,497 
Accumulated depreciation(779,910)(687,554)
Net real estate property3,821,715 3,848,943 
Real estate held for sale44,706  
Right-of-use lease assets, net141,967 137,180 
Real estate loans receivable, net181,125 198,800 
Investments in unconsolidated entities78,562 77,755 
Net real estate investments4,268,075 4,262,678 
Cash and cash equivalents5,366 2,515 
Tenant receivables, net5,545 4,757 
Other assets130,489 144,000 
Total assets$4,409,475 $4,413,950 
LIABILITIES AND EQUITY  
Liabilities:  
Credit facility$401,548 $412,322 
Notes payable969,313 968,653 
Mortgage debt50,042 57,875 
Accounts payable5,760 7,007 
Dividends and distributions payable53,730 52,116 
Accrued expenses and other liabilities79,621 91,929 
Lease liabilities78,682 74,116 
Acquired lease intangibles, net5,829 6,641 
Total liabilities1,644,525 1,670,659 
Redeemable noncontrolling interests - Series A Preferred Units (2020) and partially owned properties7,039 28,289 
Equity:  
Common shares, $0.01 par value, 500,000,000 common shares authorized, 217,409,035 and 209,550,592 common shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively
2,174 2,096 
Additional paid-in capital3,443,748 3,303,231 
Accumulated deficit(751,150)(658,171)
Accumulated other comprehensive loss(4,054)(5,859)
Total shareholders’ equity2,690,718 2,641,297 
Noncontrolling interests:  
Operating Partnership66,736 73,302 
Partially owned properties457 403 
Total noncontrolling interests67,193 73,705 
Total equity2,757,911 2,715,002 
Total liabilities and equity$4,409,475 $4,413,950 
The accompanying notes are an integral part of these consolidated financial statements.
3

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,
 2021202020212020
Revenues:    
Rental and related revenues$110,314 $104,362 $326,017 $311,861 
Interest income on real estate loans and other4,997 5,204 15,558 14,199 
Total revenues115,311 109,566 341,575 326,060 
Expenses:    
Interest expense13,498 13,698 40,754 43,521 
General and administrative9,534 8,346 28,116 25,565 
Operating expenses35,679 32,503 103,069 94,495 
Depreciation and amortization38,582 37,952 114,663 111,744 
Impairment loss340  340  
Total expenses97,633 92,499 286,942 275,325 
Income before equity in loss of unconsolidated entities and gain on sale of investment properties, net:17,678 17,067 54,633 50,735 
Equity in loss of unconsolidated entities(390)(592)(1,213)(856)
Gain on sale of investment properties, net4,757  5,111  
Net income 22,045 16,475 58,531 49,879 
Net income attributable to noncontrolling interests:    
Operating Partnership(529)(425)(1,405)(1,305)
Partially owned properties (1)(152)(151)(455)(441)
Net income attributable to controlling interest21,364 15,899 56,671 48,133 
Preferred distributions (317)(13)(951)
Net income attributable to common shareholders$21,364 $15,582 $56,658 $47,182 
Net income per share:    
Basic$0.10 $0.07 $0.26 $0.23 
Diluted$0.10 $0.07 $0.26 $0.23 
Weighted average common shares:    
Basic217,406,657 208,187,129 214,616,482 202,717,190 
Diluted223,992,049 215,129,968 221,399,649 209,555,060 
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.
4

Physicians Realty Trust
Consolidated Statements of Comprehensive Income
(In thousands) (Unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
 2021202020212020
Net income$22,045 $16,475 $58,531 $49,879 
Other comprehensive income (loss):
Change in fair value of interest rate swap agreements, net465 599 1,805 (10,630)
Total other comprehensive income (loss)465 599 1,805 (10,630)
Comprehensive income22,510 17,074 60,336 39,249 
Comprehensive income attributable to noncontrolling interests - Operating Partnership(541)(442)(1,449)(1,024)
Comprehensive income attributable to noncontrolling interests - partially owned properties(152)(151)(455)(441)
Comprehensive income attributable to common shareholders$21,817 $16,481 $58,432 $37,784 

The accompanying notes are an integral part of these consolidated financial statements.
5

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 shares28 52,404 — — 52,432 — — — 52,432 
Restricted share award grants, net4 (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 Interest in Operating Partnership— (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 shares46 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 Interest in Operating Partnership— — (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 Interest in Operating Partnership— — 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.
6

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, 2019$1,900 $2,931,921 $(529,194)$4,321 $2,408,948 $71,697 $339 $72,036 $2,480,984 
Cumulative effect of changes in accounting standards— (147)— — (147)— — — (147)
Net proceeds from sale of common shares124 239,108 — — 239,232 — — — 239,232 
Restricted share award grants, net2 245 (448)— (201)— — — (201)
Purchase of OP Units— — — — — (93)— (93)(93)
Dividends/distributions declared— — (46,636)— (46,636)(1,275)— (1,275)(47,911)
Preferred distributions— — (317)— (317)— — — (317)
Distributions— — — — — — (41)(41)(41)
Change in market value of Redeemable Noncontrolling Interest in Operating Partnership— 581 (1,561)— (980)— — — (980)
Change in fair value of interest rate swap agreements— — — (9,986)(9,986)— — — (9,986)
Adjustment for Noncontrolling Interests ownership in Operating Partnership— (2,038)— — (2,038)2,038 — 2,038  
Net income— — 14,414 — 14,414 404 67 471 14,885 
Balance as of March 31, 2020$2,026 $3,169,670 $(563,742)$(5,665)$2,602,289 $72,771 $365 $73,136 $2,675,425 
Net proceeds from sale of common shares55 99,450 — — 99,505 — — — 99,505 
Restricted share award grants, net— 3,017 (791)— 2,226 — — — 2,226 
Purchase of OP Units— — — — — (67)— (67)(67)
Dividends/distributions declared— — (47,924)— (47,924)(1,271)— (1,271)(49,195)
Preferred distributions— — (317)— (317)— — — (317)
Distributions— — — — — — (42)(42)(42)
Change in market value of Redeemable Noncontrolling Interest in Operating Partnership— (416)(163)— (579)— — — (579)
Change in fair value of interest rate swap agreements— — — (1,243)(1,243)— — — (1,243)
Adjustment for Noncontrolling Interests ownership in Operating Partnership— (806)— — (806)806 — 806  
Net income— — 17,820 — 17,820 476 73 549 18,369 
Balance as of June 30, 2020$2,081 $3,270,915 $(595,117)$(6,908)$2,670,971 $72,715 $396 $73,111 $2,744,082 
Net proceeds from sale of common shares1 1,528 — — 1,529 — — — 1,529 
Restricted share award grants, net— 2,951 (493)— 2,458 — — — 2,458 
Purchase of OP Units— — — — — (355)— (355)(355)
Dividends/distributions declared— — (47,943)— (47,943)(1,271)— (1,271)(49,214)
Preferred distributions— — (317)— (317)— — — (317)
Distributions— — — — — — (41)(41)(41)
Change in market value of Redeemable Noncontrolling Interest in Operating Partnership— (45)87 — 42 — — — 42 
Change in fair value of interest rate swap agreements— — — 599 599 — — — 599 
Adjustment for Noncontrolling Interests ownership in Operating Partnership— (162)— — (162)162 — 162  
Net income— — 15,899 — 15,899 425 76 501 16,400 
Balance as of September 30, 2020$2,082 $3,275,187 $(627,884)$(6,309)$2,643,076 $71,676 $431 $72,107 $2,715,183 

The accompanying notes are an integral part of these consolidated financial statements.
7