May 30, 2019 05:02 PM Eastern Daylight Time
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.
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.
Physicians Realty Trust
John T. Thomas
President and CEO
Jeffrey N. Theiler
Executive Vice President and CFO
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