MILWAUKEE–(BUSINESS WIRE)–Physicians Realty Trust (NYSE:DOC), (the “Company,” the “Trust,” “we,”
“our” and “us”), a self-managed healthcare real estate investment trust,
is providing this update as to its financial exposure to LifeCare
Holdings, LLC (“LifeCare”), which, along with several related entities,
filed for Chapter 11 bankruptcy on May 6, 2019 in order to facilitate a
sale process under bankruptcy protection. The U.S. Bankruptcy Trustee
appointed a representative of Physicians Realty Trust to the Official
Committee of Unsecured Creditors in relation to the bankruptcy process.
LifeCare operates 17 properties across the United States, including
three properties owned by the Company. The Company’s assets, located in
Plano, Texas; Fort Worth, Texas; and Pittsburgh, Pennsylvania, are
subject to a single master lease. Annualized base revenue attributable
to the master lease totals $4.5 million, representing 1.6% of the
Company’s annualized base revenue as of March 31, 2019. Straight-line
rent receivable balances attributable to the master lease as of March
31, 2019 total $3.3 million. The Company has not received
contractually-owed rent for April and May 2019, representing an
aggregate $0.8 million. Lease coverage, excluding management fees, for
the three assets owned by the Company was 2.1x for the trailing
twelve-month period ending March 31, 2019.
The Company will continue to closely monitor any developments with the
intention of obtaining the best possible resolution on behalf of our
shareholders.
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, 2019,
owned approximately 97.3% of 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”, “continue”, “intend”, 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, 2018 filed by the
Company with the Commission on February 28, 2019 and in the Company’s
Quarterly Report on Form 10-Q for the fiscal quarter ended March 31,
2019 filed by the Company with the Commission on May 2, 2019.
Contacts
Physicians Realty Trust
John T. Thomas
President and CEO
(214)
549-6611
[email protected]
Jeffrey
N. Theiler
Executive Vice President and CFO
(414) 367-5610
[email protected]
