Physicians Realty Trust : November Investor Presentation


Investor Presentation | November 2022

This document may contain “forward-looking” statements as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements concern and are based upon, among other things, the possible expansion of the company’s portfolio; the sale of properties; the performance of its operators/tenants and properties; its ability to enter into agreements with new viable tenants for vacant space or for properties that the company takes back from financially troubled tenants, if any; its occupancy rates; its ability to acquire, develop and/or manage properties; the ability to successfully manage the risks associated with international expansion and operations; its ability to make distributions to shareholders; its policies and plans regarding investments, financings and other matters; its tax status as a real estate investment trust; its critical accounting policies; its ability to appropriately balance the use of debt and equity; its ability to access capital markets or other sources of funds; its ability to meet its earnings guidance; and its ability to finance and complete, and the effect of, future acquisitions. When the company uses words such as “may,” “will,” “intend,” “should,” “believe,” “expect,” “anticipate,” “project,” “estimate” or similar expressions, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties. The company’s expected results may not be achieved, and actual results may differ materially from expectations. This may be a result of various factors, including, but not limited to: the unknown duration and economic, operational, and financial impacts of the global outbreak of the COVID-19 pandemic and variants, including the Delta variant and any future variants which may emerge, and the actions taken by governmental authorities in connection with the pandemic on the company’s business; material differences between actual results and the assumptions, projections and estimates of occupancy rates, rental rates, operating expenses and required capital expenditures; the status of the economy; the status of capital markets, including the availability and cost of capital; issues facing the healthcare industry, including compliance with, and changes to, regulations and payment policies, responding to government investigations and punitive settlements and operators’/tenants’ difficulty in cost-effectively obtaining and maintaining adequate liability and other insurance; changes in financing terms; competition within the healthcare, seniors housing and life science industries; negative developments in the operating results or financial condition of operators/tenants, including, but not limited to, their ability to pay rent and repay loans; the company’s ability to complete, successfully integrate, operate, or manage the pending acquisitions described in this document; the company’s ability to transition or sell facilities with profitable results; the failure to make new investments as and when anticipated; acts of God affecting the company’s properties, including extreme weather; the company’s ability to re-lease space at similar rates as vacancies occur; the failure of closings to occur as and when anticipated, including the receipt of third-party approvals and healthcare licenses without unexpected delays or conditions; the company’s ability to timely reinvest sale proceeds at similar rates to assets sold; operator/tenant or joint venture partner bankruptcies or insolvencies; the cooperation of joint venture partners; government regulations affecting Medicare and Medicaid reimbursement rates and operational requirements; regulatory approval and market acceptance of the products and technologies of life science tenants; liability or contract claims by or against operators/tenants; unanticipated difficulties and/or expenditures relating to future acquisitions and the integration of multi-property acquisitions; environmental laws affecting the company’s properties; changes in rules or practices governing the company’s financial reporting; the movement of U.S. and foreign currency exchange rates; and legal and operational matters, including real estate investment trust qualification and key management personnel recruitment and retention. Finally, the company assumes no obligation to update or revise any forward-looking statements or to update the reasons why actual results could differ from those projected in any forward-looking statements.

The presentation does not constitute or form part of, and should not be construed as, an offer to sell or issue, or the solicitation of an offer to purchase, subscribe to or acquire, securities of DOC, or an inducement to enter into investment activity in the United States or in any other jurisdiction in which such offer, solicitation, inducement or sale would be unlawful prior to registration, exemption from registration or qualification under the securities laws of such jurisdiction. No part of this presentation, nor the fact of its distribution, should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended, and otherwise in accordance with applicable law.

Dedicated Owner of Class-A Medical Office Facilities

DOC Portfolio

290

97%

89%

95%

66%

Assets Owned

of NOI from MOBs

On-Campus / Affiliated (% ABR)

Portfolio Leased Rate

IG Tenancy(1)

Consolidated Assets

Unconsolidated Assets

Note: Unless otherwise stated, Portfolio figures are as of September 30, 2022.

(1) Consolidated assets only. Parent rating used where appropriate. Includes

2

6% of Leased GLA from tenants without public debt outstanding that attain

an Investment Grade Rating per DOC’s internal Credit Model.

Focus on Investment Quality

Portfolio Comparison

97%

91%

% Income

39%

23%

21%

from MOB

DOC

HR

PEAK

WELL

VTR

66%

62%

56%

Portfolio

39%

42%

Operating

Margin

DOC

HR

PEAK

WELL

VTR

66%

45%

43%

Investment

Grade

Tenancy(1)

N/R

N/R

(% GLA)

DOC

HR

PEAK

WELL

VTR

95%

90%

95%

92%

Leased Rate

89%

(MOB Only)

DOC

HR

PEAK

WELL

VTR

DOC Credit Team Influence

Investments

• Tenant Credit Criteria represent 50% of DOC’s

quantitative “Asset Quality” scorecard

Leasing

• Credit department evaluates prospective tenant

creditworthiness, influencing requests for security

deposits, personal guarantees, and letters of credit

  • Key component of Lease Assignment process, ensuring
    Asset Management continued security of DOC’s lease interest in the event

of tenant M&A

  • Financial visibility serves as an early warning of potential tenant distress, directly contributing to DOC’s best-in-class collections during the COVID pandemic
  • Visibility is attained via lease-level reporting requirements and proactive analysis of commercial claim volumes

Financial Visibility

DOC Tenant Financial Visibility (% GLA)

88%98%

70%

4Q17 4Q19 3Q22

Source: Portfolio Comparison attributes per peer filings as of September 30, 2022.

  1. Consolidated assets only, represents direct leases to IG entities and their direct

subsidiaries. DOC figure includes 6% of Leased GLA from tenants without public

3

debt outstanding that attain an Investment Grade Rating per DOC’s internal Credit Model. PEAK / WELL / VTR ratings reported for MOB only.

Growth Comparison

DOC’s same-store methodology includes the reporting of performance for all owned MOBs,

enhancing transparency while better representing bottom-line FAD per share outcomes

Same-PropertyCash NOI Growth (As Published, Indexed to 2016)

FAD per Share

103

107

109

111

114

115

+15%

$1.01

100

$0.88

Implied

+15%

2016

2017

2018

2019

2020

2021

YTD 2022

2016

Prior 4 Qtrs

SSNOI

+ 3.2%

+ 3.2%

+ 2.7%

+ 1.3%

+ 2.6%

+ 1.7%

106

109

111

114

116

+10%

$1.39

100

103

$1.26

Implied

+16%

2016

2017

2018

2019

2020

2021

YTD 2022

2016

Prior 4 Qtrs

SSNOI

+ 3.4%

+ 2.8%

+ 2.9%

+ 1.9%

+ 2.2%

+ 3.0%

100

103

104

107

97

94

$4.15

(31%)

89

Implied

(6%)

$2.87

2016

2017

2018

2019

2020

2021

YTD 2022

2016

Prior 4 Qtrs

SSNOI

+ 2.7%

+ 1.6%

+ 2.7%

(9.3%)

(8.6%)

+ 8.2%

Sources: Factset, Company Filings. HR performance reflects Legacy HR for all periods except 3Q 2022. Prior four quarter values reflect 4Q 2021 thru 3Q 2022.

4

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Disclaimer

Physicians Realty Trust published this content on 15 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 November 2022 12:11:15 UTC.

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All news about PHYSICIANS REALTY TRUST

Analyst Recommendations on PHYSICIANS REALTY TRUST

Sales 2022 521 M

Net income 2022 71,7 M

Net Debt 2022 1 947 M

P/E ratio 2022 41,9x
Yield 2022 6,37%
Capitalization 3 288 M
3 288 M
EV / Sales 2022 10,0x
EV / Sales 2023 9,64x
Nbr of Employees 89
Free-Float 99,1%

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Physicians Realty Trust Technical Analysis Chart | MarketScreener

Technical analysis trends PHYSICIANS REALTY TRUST

Short Term Mid-Term Long Term
Trends Neutral Bearish Bearish

Income Statement Evolution

Sell

Buy

Mean consensus OUTPERFORM
Number of Analysts 18
Last Close Price 14,42 $
Average target price 17,70 $
Spread / Average Target 22,7%


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