Physicians Realty Trust Q2 income drops 11% — 5 insights

Physicians Realty Trust's second-quarter 2019 revenues dropped to $94.9 million from $107 million in 2018, but the company still reported a net gain of $6.7 million.

What you should know:

1. For the year to date, the company reported total revenues of $200.3 million in 2019, down from $212.2 million for the same period in 2018.

2. Concerning year-to-date income attributable to shareholders, the company reported $17.5 million in income in 2019, down from $21.7 million in the same period last year.

3. The company touts a medical office building same-store portfolio of 237 properties, which makes up 91 percent of its leasable space.

4. The decline in revenues can be partially attributed to a $9.4 million loss of cash and straight-line revenue from three of the company's leased Life Care facilities and to the company's El Paso, Texas-based Foundation Surgical Hospital.

Life Care filed for Chapter 11 bankruptcy protection in the quarter, while Foundation Surgical Hospital did not meet the "probability threshold required" under a recently implemented law.

5. For the quarter, the company acquired two operating healthcare properties for $23.3 million and the company committed $28.8 million to a new healthcare development.

"We continue to view medical office as the most resilient class of real estate in the market, and our portfolio of [medical office buildings], representing 95 percent of portfolio square feet, delivered outstanding results during the quarter," said company CEO and President John Thomas.

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