Physicians Realty Trust Announces Closing of the Second Tranche of the Catholic Health Initiatives Acquisition
July 05 2016 - 08:15AM
Business Wire
Announces Record $691 Million of Medical
Facility Investments Completed in Second Quarter 2016
CHI Acquisition
Highlights:
- The Second Tranche of the Catholic
Health Initiatives (CHI) Acquisition includes 20 medical office
facilities totaling 1,421,500 rentable square feet
- 4 additional medical office facilities
under executed Purchase and Sale Agreements to be acquired from CHI
in the third quarter of 2016, resulting in a final acquired
portfolio of 50 properties
- 2 properties representing approximately
$13 million of investment were removed during the due diligence
process
Physicians Realty Trust (NYSE:DOC) (the “Company,” the “Trust,”
“we,” “our” and “us”), a self-managed healthcare real estate
investment trust, today announced that it has closed the second
tranche of its previously announced pending purchase of medical
office facilities from Catholic Health Initiatives (“CHI”). The
closing of the second tranche, completed between June 2nd and June
30th, included 20 medical office facilities for a purchase price of
approximately $305 million. Including the previously announced
closing of tranche one, the Company’s total investment in CHI
affiliated properties acquired to date totals $628 million.
John T. Thomas, President and Chief Executive Officer of the
Trust, commented, “We have worked closely with our colleagues at
Catholic Health Initiatives (CHI) to complete almost all of our
investment in these CHI mission-critical medical office buildings.
With only a handful of properties left, we are very pleased with
the pace at which we have been able to complete this investment for
the benefit of our shareholders and to help CHI further their
clinical care mission. Except for one project that is currently
under construction, we expect the closing of the remainder of the
portfolio to occur early in the third quarter of 2016, with all of
the previously announced CHI affiliated acquisitions to be
completed by the end of the third quarter, but we cannot provide
any assurance that these follow-on acquisitions will be
completed.”
Thomas added, “Beyond the CHI investments, we completed several
additional acquisitions this quarter, as summarized below. These
were primarily off-market acquisitions of facilities leased to or
affiliated with existing healthcare system clients. Of note, we
have already been able to capitalize on our newly formed CHI
relationship with these additional acquisitions, by purchasing a
100% CHI-leased connecting building of one of our KentuckyOne CHI
assets in Louisville, KY directly from its physician owners.”
Thomas concluded, “This is by far the largest quarter for
investments by Physicians Realty Trust. As we approach our third
anniversary this month, we are very pleased with the growth and
quality of cash flow we have produced for our shareholders. The
stable foundation we have built includes more than $2.5 billion in
real estate assets, containing approximately 10 million square
feet, with industry-leading occupancy. We look forward to sharing
more details with our second quarter earnings and filings.”
Investment Update
In addition to the CHI Acquisitions detailed above, the Company
has completed acquisitions of 6 healthcare
properties containing an aggregate of 165,625 net
rentable square feet since our May 5, 2016 press release. These
investments total approximately $43.5 million. The Company
also entered into one mezzanine loan for $1.3 million.
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
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. The Company is the sole general partner of the
operating partnership and, as of March 31, 2016, owned
approximately 96.5% of the partnership interests in our operating
partnership (“OP Units”).
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.
Forward-Looking Statements
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 Exchange Act
of 1934, as amended, pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements may be identified by the use of words such as
“anticipate”, “believe”, “expect”, “estimate”, “plan”, “outlook”,
and “project” and other similar expressions that predict or
indicate future events or trends or that are not statements of
historical matters. These forward looking statements may include
statements regarding the Company’s strategic and operational plans,
the Company’s ability to generate internal and external growth, the
future outlook, anticipated cash returns, cap rates or yields on
properties, anticipated closing of property acquisitions, and
ability to execute its business plan. While forward-looking
statements reflect our good faith beliefs, they are not guarantees
of future performance. Forward looking statements should not be
read as a guarantee of future performance or results, and will not
necessarily be accurate indications of the times at, or by, which
such performance or results will be achieved. Forward looking
statements are based on information available at the time those
statements are made and/or management’s good faith belief as of
that time with respect to future events, and are subject to risks
and uncertainties that could cause actual performance or results to
differ materially from those expressed in or suggested by the
forward looking statements. 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 after the date of this release, whether as a result of
new information, future events or otherwise. For a description of
factors that may cause the Company’s actual results or performance
to differ from its forward-looking statements, please review the
information under the heading “Risk Factors” included in the
Company’s Annual Report on Form 10-K for the fiscal year ended
December 31, 2015 filed by the Company with the Commission on
February 29, 2016.
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version on businesswire.com: http://www.businesswire.com/news/home/20160705005331/en/
Physicians Realty TrustJohn T. Thomas, 214-549-6611President and
CEOjtt@docreit.comJeffrey N. Theiler, 414-367-5610Executive Vice
President and CFOjnt@docreit.com
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