Milwaukee-based Physicians Realty Trust today reported a net loss of $3.6 million, or 15 cents per share, down from a loss of $301,000 in the first quarter of 2013 for its predecessor company.
Revenue was $8 million, up from $3.3 million in the same period a year ago for the predecessor.
The health care real estate investment trust, which completed its initial public offering in July, closed seven acquisitions in the first quarter of 2014 that included 13 buildings totaling 550,000 square feet for about $147 million.
Expenses were up 214 percent in the first quarter because of increased general and administrative expenses related to the public company infrastructure, acquisition-related expenses and increased depreciation and amortization.
“During the first quarter of 2014, we continued to successfully execute on our acquisition strategy, utilizing proceeds from the December 2013 equity capital raise and our increased credit line capacity,” said John Thomas, president and chief executive officer. “In total, we deployed over $147 million in capital during the first quarter in acquiring high quality medical office buildings, highlighted by the purchase of Peachtree Dunwoody Medical Center. Peachtree Dunwoody is a showcase investment, located in the heart of Atlanta’s “Pill Hill” hospital market, anchored by Northside Hospital Peachtree Orthopedics and several other high quality medical practice tenants. In the aggregate, we increased leasable square footage of our portfolio by over 61 percent and increased our overall occupancy to close to 94 percent during the quarter. Other medical office acquisitions included high quality oncology facilities, leased to practices owned and managed by 21st Century Oncology along the southwest Florida coast, and family practice clinics developed, owned, and operated by Eagles Landing Family Practice in suburban Atlanta. We also expanded our existing relationships with Foundation Surgical Hospitals and LifeCare Healthcare, with new long term sale-leaseback transactions. All of these investments present the long term opportunity to collect reliable rising rental revenues.”