10-Q/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q/A

(Amendment No. 1)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2013

or

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from              to              

Commission file number: 001-36007

PHYSICIANS REALTY TRUST

(Exact Name of Registrant as Specified in its Charter)

Maryland	46-2519850
(State of Organization)	(IRS Employer Identification No.)

250 East Wisconsin Avenue Suite 1900 Milwaukee, Wisconsin	53202
(Address of Principal Executive Offices)	(Zip Code)

(414) 978-6494

(Registrant’s Telephone Number, Including Area Code)

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    o  Yes    x  No

Indicate by check mark whether the Registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the Registrant was required to submit and post such files).    x  Yes    o  No

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large Accelerated Filer	o		Accelerated Filer	o
Non-Accelerated Filer	x	(Do not check if a smaller reporting company)	Smaller reporting company	o

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    o  Yes    x  No

The number of Registrant’s common shares outstanding on August 23, 2013 was 12,003,597.

EXPLANATORY NOTE

The Registrant is filing this Amendment No. 1 on Form 10-Q/A to its Quarterly Report on Form 10-Q for the quarter ended June 30, 2013, filed with the Securities and Exchange Commission on August 30, 2013 (the “Original Filing”), to furnish Exhibit 101 to the Original Filing and to restate Item 6. “Exhibits” to correct inadvertent typographical errors regarding the Registrant’s file registration number and date of Exhibit 10.16. Exhibit 101 provides the financial statements and related notes from the Original Filing formatted in XBRL (eXtensible Business Reporting Language).

Except as described above, this Amendment No. 1 on Form 10-Q/A does not amend, update or change any other items or disclosures in the Original Filing and does not purport to reflect any information or events subsequent to the filing thereof.

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Item 6.Exhibits

Exhibit No.	Description
10.1(1)	Form of Amended and Restated Agreement of Limited Partnership of Physicians Realty L.P.
10.2(1)	Form of Physicians Realty Trust 2013 Equity Incentive Plan
10.3(1)	Form of Restricted Shares Award Agreement (Time Vesting)
10.4(1)	Form of Indemnification Agreement between Physicians Realty Trust and its trustees and officers
10.5(1)	Contribution Agreement by and among Physicians Realty L.P., Physicians Realty Trust and Ziegler Healthcare Real Estate Fund I, dated as of June 19, 2013
10.6(1)	Contribution Agreement by and among Physicians Realty L.P., Physicians Realty Trust and Ziegler Healthcare Real Estate Fund II, dated as of June 19, 2013
10.7(1)	Contribution Agreement by and among Physicians Realty L.P., Physicians Realty Trust and Ziegler Healthcare Real Estate Fund III, dated as of June 19, 2013
10.8(1)	Contribution Agreement by and among Physicians Realty L.P., Physicians Realty Trust and Ziegler Healthcare Real Estate Fund IV, LP, dated as of June 19, 2013
10.9(1)	Form of Shared Services Agreement by and among Physicians Realty Trust, Physicians Realty L.P. and B.C. Ziegler and Company
10.10(1)	Membership Interest Purchase Agreement for the Arrowhead Commons property by and among Physicians Realty L.P., Birdie Zone, L.L.C., Ziegler Healthcare Real Estate Fund I and Ziegler-Arizona 23, LLC dated as of June 24, 2013
10.11(1)	Form of Employment Agreement by and between Physicians Realty Trust and John T. Thomas
10.12(1)	Form of Employment Agreement by and between Physicians Realty Trust and Mark D. Theine
10.13(1)	Form of Employment Agreement by and between Physicians Realty Trust and John W. Sweet Jr.
10.14(1)	Form of Employment Agreement by and between Physicians Realty Trust and John W. Lucey
10.15*	Credit Agreement, dated as of August 29, 2013, among Physician Realty L.P. as Borrower, Physicians Realty Trust, certain Subsidiaries and other Affiliates of the Borrower party, as Guarantor, Regions Bank, as Administrative Agent, Regions Capital Markets, as sole Lead Arranger and Sole Book Runner, and the Lenders party thereto
10.16*	Agreement of Sale and Purchase, by and between Physicians Realty L.P., a Delaware Limited Partnership, and 6800 Preston Limited, a Texas Limited Partnership, dated August 21, 2013
31.1**	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2**	Certification of Principal Financial and Accounting Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

3

Exhibit No.	Description
32.1***	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2***	Certification of Principal Financial and Accounting Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS(2)	XBRL Instance Document
101.SCH(2)	XBRL Taxonomy Extension Schema Document
101.CAL(2)	XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB(2)	XBRL Taxonomy Extension Label Linkbase Document
101.PRE(2)	XBRL Taxonomy Extension Presentation Linkbase Document
101.DEF(2)	XBRL Definition Linkbase

*Filed on August 30, 2013 as an exhibit to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2013

**Filed herewith

***Furnished herewith

(1)Incorporated herein by reference to Physician Realty Trust’s Registration Statement on Form S-11, as amended (File No. 333-188862), originally filed with the Securities and Exchange Commission on May 24, 2013

(2)Users of this data are advised pursuant to Rule 406T of Regulation S-T that this interactive data file is deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, and otherwise is not subject to liability under those sections

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PART II. Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly cause this report to be signed on its behalf by the undersigned thereunto duly authorized.

	PHYSICIANS REALTY TRUST
Date: September 24, 2013	/s/ John T. Thomas
	John T. Thomas
	Chief Executive Officer and President
	(Principal Executive Officer)
Date: September 24, 2013	/s/ John W. Lucey
	John W. Lucey
	Senior Vice President—Principal Accounting and Reporting Officer
	(Principal Financial and Accounting Officer)

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EX-31.1

Exhibit 31.1

EXHIBIT 31.1. Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, John T. Thomas, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Physicians Realty Trust;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) [language omitted pursuant to Exchange Act Rules 13a-14(a) and 15d-15(a)] for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.[Language omitted pursuant to Exchange Act Rules 13a-14(a) and 15d-15(a)];

c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: September 24, 2013	/s/ John T. Thomas
	John T. Thomas
	Chief Executive Officer and President

1

EX-31.2

Exhibit 31.2

EXHIBIT 31.2. Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, John W. Lucey, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Physicians Realty Trust;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) [language omitted pursuant to Exchange Act Rules 13a-14(a) and 15d-15(a)]] for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.[Language omitted pursuant to Exchange Act Rules 13a-14(a) and 15d-15(a)];

c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: September 24, 2013	/s/ John W. Lucey
	John W. Lucey
	Principal Financial and Accounting Officer

1

EX-32.1

EXHIBIT 32.1

Certification

The undersigned, John T. Thomas, the Chief Executive Officer and President of Physicians Realty Trust (the “Company”), pursuant to 18 U.S.C. §1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, hereby certifies that, to the best of his knowledge:

1.the Quarterly Report for the period ended June 30, 2013 of the Company (the “Report”) fully complies with the requirements of Section 13(a) or Section 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and

2.the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: September 24, 2013	/s/ John T. Thomas
	John T. Thomas
	Chief Executive Officer and President

1

EX-32.2

EXHIBIT 32.2

Certification

The undersigned, John W. Lucey, the Principal Financial and Accounting Officer of Physicians Realty Trust (the “Company”), pursuant to 18 U.S.C. §1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, hereby certifies that, to the best of his knowledge:

1.the Quarterly Report for the period ended June 30, 2013 of the Company (the “Report”) fully complies with the requirements of Section 13(a) or Section 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and

2.the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: September 24, 2013	/s/ John W. Lucey
	John W. Lucey
	Principal Financial and Accounting Officer

1

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Organization and Nature of the Business (Predecessor)

6 Months Ended

Jun. 30, 2013

Organization and nature of business

Note 1 - Organization and Nature of the Business

Note 1—Organization and Nature of Business

Physicians Realty Trust (the “Trust”) was organized in the state of Maryland on April 9, 2013. As of June 30, 2013, the Trust is authorized to issue up to 1,000 shares of common shares of beneficial interest, par value $0.01 per share. The Trust filed a Registration Statement on Form S-11 with the Securities and Exchange Commission with respect to a proposed underwritten initial public offering (the “IPO”) of shares of its common stock.  Immediately prior to the IPO, the trust is authorized to issue up to 50,000,000 common shares of beneficial interest, par value $0.01 per share.

The Trust has elected to be taxed as a pass-through entity under subchapter S of the Internal Revenue Code of 1986, but intends to revoke the subchapter S election prior to the closing of a proposed offering of common shares to the public. The Trust intends to elect to be taxed as a real estate investment trust (“REIT”) for federal income tax purposes commencing with a short taxable year beginning on the date of the revocation of the subchapter S election and ending on December 31, 2013. The Trust expects to have little or no taxable income prior to electing REIT status. To qualify as a REIT, the Trust must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of its annual REIT taxable income to its shareholders (which is computed without regard to the dividends paid deduction or net capital gain and which does not necessarily equal net income as calculated in accordance with generally accepted accounting principles).

As a REIT, the Trust generally will not be subject to federal income tax to the extent it distributes qualifying dividends to its shareholders. If the Trust fails to qualify as a REIT in any taxable year, it will be subject to federal income tax (including any applicable alternative minimum tax) on its taxable income at regular corporate income tax rates and generally will not be permitted to qualify for treatment as a REIT for federal income tax purposes for the four taxable years following the year during which qualification is lost unless the Internal Revenue Service grants the Trust relief under certain statutory provisions. Such an event could materially adversely affect the Trust’s net income and net cash available for distribution to shareholders. However, the Trust intends to organize and operate in such a manner as to qualify for treatment as a REIT. Even if the Trust qualifies for taxation as a REIT, the Trust may be subject to state and local taxes on its income and property and federal income and excise taxes on its undistributed income.

The Trust will be a fully integrated, self-administered and self-managed REIT formed primarily to own, operate, acquire and develop healthcare properties. The Trust has had no operations since its formation.

Ziegler Healthcare Real Estate Funds

Organization and nature of business

Note 1 - Organization and Nature of the Business

Note 1—Organization and Nature of the Business

Ziegler Healthcare Real Estate Funds, collectively the “Ziegler Funds”, consist of Ziegler Healthcare Real Estate Fund I, LLC (“Fund I”), Ziegler Healthcare Real Estate Fund II, LLC (“Fund II”), Ziegler Healthcare Real Estate Fund III, LLC (“Fund III”), and Ziegler Healthcare Real Estate Fund IV, LP (“Fund IV”). The Funds, through subsidiaries, are principally engaged in making investments in healthcare real estate or companies that own healthcare real estate. Fund I, Fund II, and Fund III are limited liability companies organized under the laws of the State of Delaware. For each of these funds, The Ziegler Companies, Inc. (“ZCO”) has contributed $1,000 as the general member. Fund IV is a limited partnership organized under the laws of the state of Delaware. A wholly owned subsidiary of ZCO has contributed $1,000 as the general partner. B.C. Ziegler and Company (“BCZ”), a wholly owned subsidiary of ZCO, is the manager of Fund I, Fund II and Fund III and Ziegler Healthcare Real Estate Management IV, LLC, or ZHREM IV, a wholly owned subsidiary of ZCO is the manager of Fund IV.

The Ziegler Funds had private capital commitments as described below, all of which have been fully contributed:

Fund	Total Commitments
I	$	15,100,000
II	17,800,000
III	9,050,000
IV	5,616,000
Total	$	47,566,000

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Organization and Nature of Business

6 Months Ended

Jun. 30, 2013

Organization and Nature of Business

Organization and Nature of Business

Note 1—Organization and Nature of Business

Physicians Realty Trust (the “Trust”) was organized in the state of Maryland on April 9, 2013. As of June 30, 2013, the Trust is authorized to issue up to 1,000 shares of common shares of beneficial interest, par value $0.01 per share. The Trust filed a Registration Statement on Form S-11 with the Securities and Exchange Commission with respect to a proposed underwritten initial public offering (the “IPO”) of shares of its common stock.  Immediately prior to the IPO, the trust is authorized to issue up to 50,000,000 common shares of beneficial interest, par value $0.01 per share.

The Trust has elected to be taxed as a pass-through entity under subchapter S of the Internal Revenue Code of 1986, but intends to revoke the subchapter S election prior to the closing of a proposed offering of common shares to the public. The Trust intends to elect to be taxed as a real estate investment trust (“REIT”) for federal income tax purposes commencing with a short taxable year beginning on the date of the revocation of the subchapter S election and ending on December 31, 2013. The Trust expects to have little or no taxable income prior to electing REIT status. To qualify as a REIT, the Trust must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of its annual REIT taxable income to its shareholders (which is computed without regard to the dividends paid deduction or net capital gain and which does not necessarily equal net income as calculated in accordance with generally accepted accounting principles).

As a REIT, the Trust generally will not be subject to federal income tax to the extent it distributes qualifying dividends to its shareholders. If the Trust fails to qualify as a REIT in any taxable year, it will be subject to federal income tax (including any applicable alternative minimum tax) on its taxable income at regular corporate income tax rates and generally will not be permitted to qualify for treatment as a REIT for federal income tax purposes for the four taxable years following the year during which qualification is lost unless the Internal Revenue Service grants the Trust relief under certain statutory provisions. Such an event could materially adversely affect the Trust’s net income and net cash available for distribution to shareholders. However, the Trust intends to organize and operate in such a manner as to qualify for treatment as a REIT. Even if the Trust qualifies for taxation as a REIT, the Trust may be subject to state and local taxes on its income and property and federal income and excise taxes on its undistributed income.

The Trust will be a fully integrated, self-administered and self-managed REIT formed primarily to own, operate, acquire and develop healthcare properties. The Trust has had no operations since its formation.

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Subsequent Events (Details) (Subsequent event, USD $) In Millions, except Share data, unless otherwise specified	0 Months Ended
	Aug. 07, 2013	Jul. 24, 2013 IPO	Aug. 07, 2013 Underwriters' overallotment option	Jul. 24, 2013 Operating Partnership	Aug. 21, 2013 Operating Partnership Post-acute care specialty hospital in Plano, Texas	Jul. 24, 2013 Operating Partnership Ziegler Funds item	Aug. 21, 2013 Operating Partnership Ziegler Funds Post-acute care specialty hospital in Plano, Texas
Subsequent events
Common shares issued in public offering		10,434,782	1,318,815
Common shares public offering price (in dollars per share)		$ 11.50	$ 11.50
Proceeds from IPO, after deducting underwriting discounts and offering costs	$ 123.8
Common units of partnership interest (as a percent)				81.40%
Number of healthcare real estate funds managed						4
Number of medical office buildings						19
Number of states						10
Number of partnership units issued						2,744,000
Acquisition price per Agreement of Sale and Purchase					$ 18.2		$ 18.2

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Related Party Transactions (Predecessor) (Ziegler Healthcare Real Estate Funds)

6 Months Ended

Jun. 30, 2013

Ziegler Healthcare Real Estate Funds

Related party transactions

Related party transactions

Note 8—Related Party Transactions

BCZ charges the Ziegler Funds an annual management fee equal to two percent of the total capital commitments. BCZ carries out the day-to-day management of the Ziegler Funds including origination of investments, investor reporting and accounting. Total management fees charged to the Ziegler Funds were $237,700 for each of the three months ended June 30, 2013 and 2012 and $475,400 for each of the six months ended June 30, 2013 and 2012. Total other fees charged to the Ziegler Funds were $6,995 for each of the three months ended June 30, 2013 and 2012 and $13,991 for each of the six months ended June 30, 2013 and 2012. The other fees include fees for accounting expenses and other amounts owed to BCZ. As of June 30, 2013 and December 31, 2012, management and other fees of $1,919,399 and $1,530,300, respectively, were payable to BCZ and are included in accounts payable to related parties on the combined balance sheets

Subsequent to June 30, 2013:

Following the IPO and formation transactions, the outstanding payable owed to BCZ was repaid by the Ziegler Funds using a portion of the OP units received by the Ziegler Funds and cash held by the Ziegler Funds.

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Summary of Significant Accounting Policies (Predecessor)

6 Months Ended

Jun. 30, 2013

Summary of significant accounting policies

Summary of Significant Accounting Policies

Note 3—Summary of Significant Accounting Policies

Basis of Presentation

The balance sheet has been prepared by management in accordance with generally accepted accounting principles.

Start Up Costs

Start-up costs incurred will be expensed. Costs related to the IPO and related formation transactions have been incurred by our Predecessor. Upon successful completion of the IPO, such costs will be reimbursed to the Predecessor from the proceeds of the IPO.

On July 24, 2013, all start-up costs incurred by our Predecessor were reimbursed from the proceeds of the IPO.

Ziegler Healthcare Real Estate Funds

Summary of significant accounting policies

Summary of Significant Accounting Policies

Note 2—Summary of Significant Accounting Policies

The accompanying unaudited condensed combined financial statements reflect all adjustments which are, in the opinion of management, necessary for a fair presentation of the results for the three and six month periods ended June 30, 2013 and 2012 pursuant to the instructions to Form 10-Q and Article 10 of Regulation S-X. All such adjustments are of a normal recurring nature. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. These financial statements should be read in conjunction with the audited financial statements included in the Company’s final prospectus dated July 18, 2013 filed with the Securities and Exchange Commission on July 19, 2013. Operating results for interim periods are not necessarily indicative of results that may be expected for the entire year ending December 31, 2013.

Aspects of the Limited Liability Companies and Limited Partnership

Each of the Ziegler Funds is organized as either a limited liability company or a limited partnership. Each member’s/partner’s liability is limited to the capital contributed. Allocations of income and loss are made to the capital accounts as described in the following paragraph. Distributions of cash from operations will be made periodically. The distributions will be made to members/partners in accordance with their ownership percentages.

Allocations of income and loss are made to the capital accounts of members/partners in proportion to the committed capital. The distributions will be made in the following order: (1) to members/partners on a preferred 8 percent annual return based on their unreturned capital contributions for Fund I, Fund II and Fund III and 7 percent for Fund IV, (2) to repay members/partners unreturned capital contributions, and (3) 80 percent to members/partners based upon their percentage interests and 20 percent to ZCO.

The Ziegler Funds were initially capitalized as follows:

	General Interest	Limited Interest
Fund	Investment Units		Unit Price
I	0.01	151	$	100,000
II	0.02	356	$	50,000
III	0.01	90.5	$	100,000
IV	0.02	112.3	$	50,000

Principles of Combination

As described in Note 1, the combined financial statements contain the financial position and results of operations of the Ziegler Funds, which are managed by BCZ and ZHREM IV, and are engaged in similar business activities. It is intended that the Ziegler Funds will contribute their interests in their properties to Physicians Realty L.P., which will be funded primarily through an initial public offering of its common shares.

Principles of Consolidation

The Ziegler Funds include the following consolidated subsidiaries as of June 30, 2013 and December 31, 2012:

	Fund Ownership %
Entity	I		II		III		IV
Ziegler Michigan 5, LLC (Michigan 5)	100	%
Ziegler Georgia 6, LLC (Georgia 6)	100	%
Ziegler Michigan 6, LLC (Michigan 6)	100	%
Ziegler Georgia 7, LLC (Georgia 7)	50	%
Ziegler Florida 4, LLC (Florida 4)	100	%
Ziegler Georgia 21, LLC (Georgia 21)	79.4	%			20.6	%
Ziegler Texas 8, LLC (Texas 8)	100	%
Ziegler Arizona 23, LLC (Arizona 23)	50	%
Ziegler Illinois 12, LLC (Illinois 12)			100	%
Ziegler Michigan 12, LLC (Michigan 12)			100	%
Ziegler Tennessee 14, LLC (Tennessee 14)			100	%
Ziegler Ohio 9, LLC (Ohio 9)			83.21	%			16.79	%
Ziegler Maine 15, LLC (Maine 15)			56.77	%	43.23	%
Ziegler Wisconsin 16, LLC (Wisconsin 16)					100	%
Ziegler Georgia 17, LLC (Georgia 17)					100	%
Ziegler Illinois 18, LLC (Illinois 18)					100	%
Ziegler Ohio 19, LLC (Ohio 19)					100	%
Ziegler Georgia 20, LLC (Georgia 20)					100	%
Ziegler Wisconsin 24, LLC (Wisconsin 24)							100	%

The Ziegler Funds consolidate the following less than 100 percent owned subsidiaries, or investees of those subsidiaries, due to majority voting control:

Sandwich Development Partners LLC (Sandwich)—In 2006, Illinois 12 and another investor (Investing Member) entered into an agreement with IDP Sandwich Development Partners (IDP) to form Sandwich. Illinois 12, the Investing Member and IDP have contributed $1,100,000, $100,000 and $100, respectively. The agreement provides that Illinois 12 and the Investing Member will receive a 7 percent preferred return on their investment. The agreement further requires payment of the preferred return and return of invested capital of Illinois 12 and the Investing Member be returned prior to any allocation of profits to IDP. After Illinois 12 and the Investing Member receive the preferred return and return of invested capital, profits will be split 59.6 percent to Illinois 12, 5.4 percent and 35 percent to IDP.

Maine 15, LLC—In 2007, Fund II and Fund III formed Maine 15 for the purpose of investing in Bath Road Associates, LLC (Bath Road), which owns a medical office building. Maine 15 and other investors entered into an agreement with Bath Road Management, LLC (BRM) to form Bath Road. The agreement provides that Maine 15 will receive 66.33 percent of cash flows from the property, as defined, with the remaining cash flows divided between BRM and other investors, 25.51 percent and 8.16 percent, respectively.

Illinois 18, LLC—In 2007, Illinois 18 entered into an agreement with IDP Remington Holdings (IDP) to form Remington Development Partners, LLC (Remington). Illinois 18 has contributed $1,300,000. The agreement provides that Illinois 18 will receive a 7 percent preferred return on its investment. The agreement further provides that the preferred return and capital investment by Illinois 18 be returned prior to any allocation of profits to IDP. After Illinois 18 receives a 7 percent preferred return and return of capital, profits will be split 65 percent to Illinois 18 and 35 percent to IDP. The noncontrolling interest on Fund III’s assets and liabilities consists of Illinois 18 and IDP.

Georgia 7, LLC—In 2012, Georgia 7 entered into a 5 year lease with a tenant in exchange for a 50 percent ownership interest in Georgia 7. Prior to this arrangement, Georgia 7 was wholly owned by Fund I. As part of the agreement, Fund I retained a 51 percent voting interest in Georgia 7. As a result, Georgia 7’s accounts have been consolidated with Fund I’s consolidated financial statements.

The Ziegler Funds consolidate all variable interest entities in which it holds a variable interest and is deemed to be the primary beneficiary of the variable interest entity. Generally, a variable interest entity, or VIE, is an entity with at least one of the following conditions: (1) the total equity investment at risk is insufficient to allow the entity to finance its activities without additional subordinated financial support; or (2) the holders of the equity investment at risk, as a group, lack any one of the following three characteristics: (i) the power to direct the entity’s activities that most significantly impact its economic performance, (ii) the obligation to absorb the expected losses of the entity, or (iii) the right to receive the expected residual returns of the entity. The primary beneficiary of a VIE is an entity that has a variable interest or a combination of variable interests that provide that entity with a controlling financial interest in the VIE. An entity is deemed to have a controlling financial interest in a VIE if it has both of the following characteristics: (1) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance, and (2) the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE.

The combined Ziegler Funds consolidate the following VIE’s for which it is the primary beneficiary:

In 2005, Ziegler Florida 4, LLC (Florida 4) entered into an agreement with CED SS II, LLC (CED) to form Ziegler CED Summerfield Square, LLC (Summerfield). Summerfield is in the business of property development. Florida 4 contributed $629,000 of cash in exchange for a 40 percent interest in Summerfield. CED agreed to manage the development efforts of Summerfield and assume certain risks of project overruns in exchange for a 60 percent interest in Summerfield. The agreement provides that Florida 4 will receive a 10 percent preferred return on its capital investment in Summerfield of $629,000. The agreement requires payment of Florida 4’s preferred return and return of invested capital before any allocation of profits to CED. After Florida 4 receives its 10 percent preferred return and its capital investment is returned, Summerfield’s profits will be split 60 percent to CED and 40 percent to Florida 4. CED will also receive a 4.25 percent development fee on the ultimate sale of the medical office buildings.

The Ziegler Funds have determined that, Florida 4 is the primary beneficiary of Summerfield because Florida 4 has the power to direct activities of Summerfield that most significantly impact Summerfield’s economic performance. Those activities include management oversight and negotiation of unit sales related to the property. Should additional financing be needed for Summerfield in the future, it is expected that Florida 4 will provide that additional support due to ownership.

The following presents selected information for Summerfield as of and for the three and six months ended June 30, 2013 and as of and for the year ended December 31, 2012:

	Three Months Ended:			Six Months Ended:
	June 30, 2013			June 30, 2013			December 31, 2012
	(unaudited)			(unaudited)
Property under Development	$	—		$	674,773		$	674,773
Other assets	—			4,276			5,227
Total Assets	$	—		$	679,049		$	680,000
Long-Term Debt	$	—		$	455,001		$	421,675
Other liabilities	—			153,932			167,690
Total Liabilities	$	—		$	608,933		$	589,365
Real estate sale	$	—		$	—		$	685,000
Operating loss	(9,003		)	(20,518		)	(340,250		)
Net loss	(9,003		)	(20,518		)	(340,250		)

On August 1, 2011, Arizona 23 issued a 50% equity interest in the entity to an unrelated third party and current lessee, in exchange for the lessee executing a new 10 year lease. To estimate the value of the equity interest issued, management determined the gross value of the property to be approximately $3,900,000 using a 7.75% capitalization rate and a stabilized annual net operating income of $302,000. This gross value was reduced by the property’s outstanding mortgage debt of approximately $2,500,000, to yield a net equity value of approximately $1,400,000. Therefore, a 50% net equity interest in Arizona 23 approximated $700,000 on the transaction date. The net present value of the tenant lease on the date of the transaction was estimated to be approximately $1,400,000 based on future monthly gross lease payments for the ten-year term of the lease of approximately $2,200,000 using a 7.75% discount rate. Therefore, 50% of the net present value of the lease approximated $700,000 on the date of the transaction, equivalent to a 50% net equity interest in the property, and thus, no gain or loss was recorded on the transaction. Prior to this arrangement, Arizona 23 was wholly owned by Fund I. Arizona 23’s accounts have been consolidated with Fund I’s consolidated financial statements.

Management determined that the lessee received a lease inducement in the amount of $700,000 from Arizona 23. Accounting standards require that the lease inducement be amortized on a straight line basis over the 10 year lease term. On August 1, 2011, the Ziegler Funds’ management recorded the lease inducement as an increase to other assets and owners’ equity of $700,000. For each of the three and six months ended June 30, 2013 and 2012, the amortization of the lease inducement resulted in a decrease in rental revenues of $17,500 and $35,000, respectively.

Following the guidance in generally accepted accounting principles, Fund I is the primary beneficiary of Arizona 23 because Fund I has the power to direct activities of Arizona 23 that most significantly impact its economic performance. Those activities include serving as the managing member with oversight over the property including the ability to approve the sale of the property. Should additional financing be needed for Arizona 23 in the future, it is expected that Fund I will provide that additional support.

The following presents selected information for Arizona 23 as of and for the three and six months ended June 30, 2013 and as of and for the year ended December 31, 2012:

	Three Months Ended:			Six Months Ended:
	June 30,			June 30,			December 31,
	2013			2013			2012
	(unaudited)			(unaudited)
Investment property	$	—		$	3,009,121		$	3,036,850
Other assets	—			825,643			878,913
Total assets	$	—		$	3,834,764		$	3,915,763
Long-term debt	$	—		$	2,237,344		$	2,280,508
Other liabilities	—			71,417			68,614
Total liabilities	$	—		$	2,308,761		$	2,349,122
Rental revenue	$	83,014		$	166,287		$	327,635
Operating income	53,930			124,757			330,483
Net (loss) income	(7,586		)	(12,639		)	(88,193		)

All significant intercompany accounts and transactions have been eliminated in consolidation and combination. The effects of eliminations of revenues and expenses due to intercompany transactions between majority-owned subsidiaries and consolidated VIEs are not attributed to noncontrolling interest in the VIEs.

Subsequent to June 30, 2013:

On July 24, 2013, in connection with the completion of the IPO and formation transactions, Physicians Realty L.P. purchased the 50% joint venture equity interest in Arizona 23 (Arrowhead Commons) not owned by the Ziegler Funds for $850,000, resulting in 100% ownership of this property by Physicians Realty L.P.

Classification of Assets and Liabilities

The financial affairs of the Ziegler Funds generally do not involve a business cycle since the realization of assets and the liquidation of liabilities are usually dependent on the Ziegler Funds’ circumstances. Accordingly, the classification of current assets and current liabilities is not considered appropriate and has been omitted from the combined statements of assets and liabilities.

Impairment of Intangible and Long-Lived Assets

The Ziegler Funds’ evaluate the recoverability of the recorded amount of intangible and long-lived assets whenever events or changes in circumstances indicate that the recorded amount of an asset may not be fully recoverable. Impairment is assessed when the undiscounted expected future cash flows derived from an asset are less than its carrying amount. If Ziegler Funds determine that an asset is impaired, the impairment to be recognized is measured as the amount by which the recorded amount of the asset exceeds its fair value. Assets to be disposed of are reported at the lower of the recorded amount or fair value less cost to sell. Fair value is determined using a discounted future cash flow analysis.

The Ziegler Funds did not recognize any impairments for the three or six months ended June 30, 2013 and 2012.

Escrow Reserves

The Ziegler Funds are required to maintain various escrow reserves on their notes payable to cover future property taxes and insurance, and tenant improvement costs as defined in each loan agreement. The total reserves as of June 30, 2013 and December 31, 2012 are $1,264,572 and $1,060,003, respectively, which are included in other assets on the combined balance sheets.

Rental Revenue

Rental revenue, less lease inducement, is recognized on a straight-line basis over the terms of the related leases when collectability is reasonably assured. Recognizing rental revenue on a straight-line basis for leases may result in recognizing revenue for amounts more or less than amounts currently due from tenants. Amounts recognized in excess of amounts currently due from tenants are included in other assets and were $1,289,702 and $1,290,038 as of June 30, 2013 and December 31, 2012, respectively. If the Ziegler Funds determine that collectability of straight-line rents is not reasonably assured, the Ziegler Funds limit future recognition to amounts contractually owed and, where appropriate, establish an allowance for estimated losses.

Tenant recoveries related to reimbursement of real estate taxes, insurance and other operating expenses are recognized as rental revenue in the period the applicable expenses are incurred. The reimbursements are recorded at gross, as the Ziegler Funds are generally the primary obligor with respect to real estate taxes and purchasing goods and services from third-party suppliers, have discretion in selecting the supplier and bear the credit risk. Property taxes paid by tenants in accordance with the terms of triple net leases, and the corresponding expense, have been included in rental revenue and operational expenses, respectively, in the combined statements of operations of the Ziegler Funds.

Management Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the combined financial statements and the reported amounts of revenue and expenses reported in the period. Significant estimates are made for the valuation of real estate and intangibles, valuation of financial instruments, impairment assessments and fair value assessments with respect to purchase price allocations. Actual results could differ from these estimates.

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Subsequent Events (Details) (Predecessor) (USD $)	0 Months Ended	6 Months Ended			0 Months Ended
	Aug. 21, 2013 Subsequent event Physicians Realty, L.P. Post-acute care specialty hospital in Plano, Texas	Jun. 30, 2013 Ziegler Healthcare Real Estate Funds	Jun. 30, 2012 Ziegler Healthcare Real Estate Funds	Jul. 02, 2013 Ziegler Healthcare Real Estate Funds Subsequent event Interest rates swaps	Jul. 24, 2013 Ziegler Healthcare Real Estate Funds Subsequent event Physicians Realty, L.P. item	Aug. 21, 2013 Ziegler Healthcare Real Estate Funds Subsequent event Physicians Realty, L.P. Post-acute care specialty hospital in Plano, Texas	Jul. 24, 2013 Arizona 23 Ziegler Healthcare Real Estate Funds Subsequent event Physicians Realty, L.P.
Subsequent events
Remaining equity interest acquired (as a percent)							50.00%
Repayment of outstanding indebtedness		$ 857,421	$ 5,902,274		$ 36,893,119
Number of properties on which indebtedness is repaid					10
Acquisition price per Agreement of Sale and Purchase	18,200,000					18,200,000
Notional amount				$ 17,261,940

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Intangibles (Details) (Predecessor) (Ziegler Healthcare Real Estate Funds, USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012	Dec. 31, 2012
Ziegler Healthcare Real Estate Funds
Intangibles
Amortization expense	$ 183,967	$ 173,312	$ 371,203	$ 371,203
Future amortization of the intangible assets
2013	371,203		371,203
2014	695,068		695,068
2015	661,255		661,255
2016	648,520		648,520
2017	472,357		472,357
Thereafter	2,032,545		2,032,545
Total	$ 4,880,948		$ 4,880,948		$ 5,242,886

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Organization and Nature of the Business (Tables) (Predecessor) (Ziegler Healthcare Real Estate Funds)

6 Months Ended

Jun. 30, 2013

Ziegler Healthcare Real Estate Funds

Private capital commitments

Schedule of private capital commitments

Fund	Total Commitments
I	$	15,100,000
II	17,800,000
III	9,050,000
IV	5,616,000
Total	$	47,566,000

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Summary of Significant Accounting Policies (Policies) (Predecessor) (Ziegler Healthcare Real Estate Funds)

6 Months Ended

Jun. 30, 2013

Ziegler Healthcare Real Estate Funds

Summary of significant accounting policies

Aspects of the Limited Liability Companies and Limited Partnership

Aspects of the Limited Liability Companies and Limited Partnership

Each of the Ziegler Funds is organized as either a limited liability company or a limited partnership. Each member’s/partner’s liability is limited to the capital contributed. Allocations of income and loss are made to the capital accounts as described in the following paragraph. Distributions of cash from operations will be made periodically. The distributions will be made to members/partners in accordance with their ownership percentages.

Allocations of income and loss are made to the capital accounts of members/partners in proportion to the committed capital. The distributions will be made in the following order: (1) to members/partners on a preferred 8 percent annual return based on their unreturned capital contributions for Fund I, Fund II and Fund III and 7 percent for Fund IV, (2) to repay members/partners unreturned capital contributions, and (3) 80 percent to members/partners based upon their percentage interests and 20 percent to ZCO.

Principles of Combination

Principles of Combination

As described in Note 1, the combined financial statements contain the financial position and results of operations of the Ziegler Funds, which are managed by BCZ and ZHREM IV, and are engaged in similar business activities. It is intended that the Ziegler Funds will contribute their interests in their properties to Physicians Realty L.P., which will be funded primarily through an initial public offering of its common shares.

Principles of Consolidation

Principles of Consolidation

The Ziegler Funds include the following consolidated subsidiaries as of June 30, 2013 and December 31, 2012:

	Fund Ownership %
Entity	I		II		III		IV
Ziegler Michigan 5, LLC (Michigan 5)	100	%
Ziegler Georgia 6, LLC (Georgia 6)	100	%
Ziegler Michigan 6, LLC (Michigan 6)	100	%
Ziegler Georgia 7, LLC (Georgia 7)	50	%
Ziegler Florida 4, LLC (Florida 4)	100	%
Ziegler Georgia 21, LLC (Georgia 21)	79.4	%			20.6	%
Ziegler Texas 8, LLC (Texas 8)	100	%
Ziegler Arizona 23, LLC (Arizona 23)	50	%
Ziegler Illinois 12, LLC (Illinois 12)			100	%
Ziegler Michigan 12, LLC (Michigan 12)			100	%
Ziegler Tennessee 14, LLC (Tennessee 14)			100	%
Ziegler Ohio 9, LLC (Ohio 9)			83.21	%			16.79	%
Ziegler Maine 15, LLC (Maine 15)			56.77	%	43.23	%
Ziegler Wisconsin 16, LLC (Wisconsin 16)					100	%
Ziegler Georgia 17, LLC (Georgia 17)					100	%
Ziegler Illinois 18, LLC (Illinois 18)					100	%
Ziegler Ohio 19, LLC (Ohio 19)					100	%
Ziegler Georgia 20, LLC (Georgia 20)					100	%
Ziegler Wisconsin 24, LLC (Wisconsin 24)							100	%

The Ziegler Funds consolidate the following less than 100 percent owned subsidiaries, or investees of those subsidiaries, due to majority voting control:

Sandwich Development Partners LLC (Sandwich)—In 2006, Illinois 12 and another investor (Investing Member) entered into an agreement with IDP Sandwich Development Partners (IDP) to form Sandwich. Illinois 12, the Investing Member and IDP have contributed $1,100,000, $100,000 and $100, respectively. The agreement provides that Illinois 12 and the Investing Member will receive a 7 percent preferred return on their investment. The agreement further requires payment of the preferred return and return of invested capital of Illinois 12 and the Investing Member be returned prior to any allocation of profits to IDP. After Illinois 12 and the Investing Member receive the preferred return and return of invested capital, profits will be split 59.6 percent to Illinois 12, 5.4 percent and 35 percent to IDP.

Maine 15, LLC—In 2007, Fund II and Fund III formed Maine 15 for the purpose of investing in Bath Road Associates, LLC (Bath Road), which owns a medical office building. Maine 15 and other investors entered into an agreement with Bath Road Management, LLC (BRM) to form Bath Road. The agreement provides that Maine 15 will receive 66.33 percent of cash flows from the property, as defined, with the remaining cash flows divided between BRM and other investors, 25.51 percent and 8.16 percent, respectively.

Illinois 18, LLC—In 2007, Illinois 18 entered into an agreement with IDP Remington Holdings (IDP) to form Remington Development Partners, LLC (Remington). Illinois 18 has contributed $1,300,000. The agreement provides that Illinois 18 will receive a 7 percent preferred return on its investment. The agreement further provides that the preferred return and capital investment by Illinois 18 be returned prior to any allocation of profits to IDP. After Illinois 18 receives a 7 percent preferred return and return of capital, profits will be split 65 percent to Illinois 18 and 35 percent to IDP. The noncontrolling interest on Fund III’s assets and liabilities consists of Illinois 18 and IDP.

Georgia 7, LLC—In 2012, Georgia 7 entered into a 5 year lease with a tenant in exchange for a 50 percent ownership interest in Georgia 7. Prior to this arrangement, Georgia 7 was wholly owned by Fund I. As part of the agreement, Fund I retained a 51 percent voting interest in Georgia 7. As a result, Georgia 7’s accounts have been consolidated with Fund I’s consolidated financial statements.

The Ziegler Funds consolidate all variable interest entities in which it holds a variable interest and is deemed to be the primary beneficiary of the variable interest entity. Generally, a variable interest entity, or VIE, is an entity with at least one of the following conditions: (1) the total equity investment at risk is insufficient to allow the entity to finance its activities without additional subordinated financial support; or (2) the holders of the equity investment at risk, as a group, lack any one of the following three characteristics: (i) the power to direct the entity’s activities that most significantly impact its economic performance, (ii) the obligation to absorb the expected losses of the entity, or (iii) the right to receive the expected residual returns of the entity. The primary beneficiary of a VIE is an entity that has a variable interest or a combination of variable interests that provide that entity with a controlling financial interest in the VIE. An entity is deemed to have a controlling financial interest in a VIE if it has both of the following characteristics: (1) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance, and (2) the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE.

The combined Ziegler Funds consolidate the following VIE’s for which it is the primary beneficiary:

In 2005, Ziegler Florida 4, LLC (Florida 4) entered into an agreement with CED SS II, LLC (CED) to form Ziegler CED Summerfield Square, LLC (Summerfield). Summerfield is in the business of property development. Florida 4 contributed $629,000 of cash in exchange for a 40 percent interest in Summerfield. CED agreed to manage the development efforts of Summerfield and assume certain risks of project overruns in exchange for a 60 percent interest in Summerfield. The agreement provides that Florida 4 will receive a 10 percent preferred return on its capital investment in Summerfield of $629,000. The agreement requires payment of Florida 4’s preferred return and return of invested capital before any allocation of profits to CED. After Florida 4 receives its 10 percent preferred return and its capital investment is returned, Summerfield’s profits will be split 60 percent to CED and 40 percent to Florida 4. CED will also receive a 4.25 percent development fee on the ultimate sale of the medical office buildings.

The Ziegler Funds have determined that, Florida 4 is the primary beneficiary of Summerfield because Florida 4 has the power to direct activities of Summerfield that most significantly impact Summerfield’s economic performance. Those activities include management oversight and negotiation of unit sales related to the property. Should additional financing be needed for Summerfield in the future, it is expected that Florida 4 will provide that additional support due to ownership.

The following presents selected information for Summerfield as of and for the three and six months ended June 30, 2013 and as of and for the year ended December 31, 2012:

	Three Months Ended:			Six Months Ended:
	June 30, 2013			June 30, 2013			December 31, 2012
	(unaudited)			(unaudited)
Property under Development	$	—		$	674,773		$	674,773
Other assets	—			4,276			5,227
Total Assets	$	—		$	679,049		$	680,000
Long-Term Debt	$	—		$	455,001		$	421,675
Other liabilities	—			153,932			167,690
Total Liabilities	$	—		$	608,933		$	589,365
Real estate sale	$	—		$	—		$	685,000
Operating loss	(9,003		)	(20,518		)	(340,250		)
Net loss	(9,003		)	(20,518		)	(340,250		)

On August 1, 2011, Arizona 23 issued a 50% equity interest in the entity to an unrelated third party and current lessee, in exchange for the lessee executing a new 10 year lease. To estimate the value of the equity interest issued, management determined the gross value of the property to be approximately $3,900,000 using a 7.75% capitalization rate and a stabilized annual net operating income of $302,000. This gross value was reduced by the property’s outstanding mortgage debt of approximately $2,500,000, to yield a net equity value of approximately $1,400,000. Therefore, a 50% net equity interest in Arizona 23 approximated $700,000 on the transaction date. The net present value of the tenant lease on the date of the transaction was estimated to be approximately $1,400,000 based on future monthly gross lease payments for the ten-year term of the lease of approximately $2,200,000 using a 7.75% discount rate. Therefore, 50% of the net present value of the lease approximated $700,000 on the date of the transaction, equivalent to a 50% net equity interest in the property, and thus, no gain or loss was recorded on the transaction. Prior to this arrangement, Arizona 23 was wholly owned by Fund I. Arizona 23’s accounts have been consolidated with Fund I’s consolidated financial statements.

Management determined that the lessee received a lease inducement in the amount of $700,000 from Arizona 23. Accounting standards require that the lease inducement be amortized on a straight line basis over the 10 year lease term. On August 1, 2011, the Ziegler Funds’ management recorded the lease inducement as an increase to other assets and owners’ equity of $700,000. For each of the three and six months ended June 30, 2013 and 2012, the amortization of the lease inducement resulted in a decrease in rental revenues of $17,500 and $35,000, respectively.

Following the guidance in generally accepted accounting principles, Fund I is the primary beneficiary of Arizona 23 because Fund I has the power to direct activities of Arizona 23 that most significantly impact its economic performance. Those activities include serving as the managing member with oversight over the property including the ability to approve the sale of the property. Should additional financing be needed for Arizona 23 in the future, it is expected that Fund I will provide that additional support.

The following presents selected information for Arizona 23 as of and for the three and six months ended June 30, 2013 and as of and for the year ended December 31, 2012:

	Three Months Ended:			Six Months Ended:
	June 30,			June 30,			December 31,
	2013			2013			2012
	(unaudited)			(unaudited)
Investment property	$	—		$	3,009,121		$	3,036,850
Other assets	—			825,643			878,913
Total assets	$	—		$	3,834,764		$	3,915,763
Long-term debt	$	—		$	2,237,344		$	2,280,508
Other liabilities	—			71,417			68,614
Total liabilities	$	—		$	2,308,761		$	2,349,122
Rental revenue	$	83,014		$	166,287		$	327,635
Operating income	53,930			124,757			330,483
Net (loss) income	(7,586		)	(12,639		)	(88,193		)

All significant intercompany accounts and transactions have been eliminated in consolidation and combination. The effects of eliminations of revenues and expenses due to intercompany transactions between majority-owned subsidiaries and consolidated VIEs are not attributed to noncontrolling interest in the VIEs.

Subsequent to June 30, 2013:

On July 24, 2013, in connection with the completion of the IPO and formation transactions, Physicians Realty L.P. purchased the 50% joint venture equity interest in Arizona 23 (Arrowhead Commons) not owned by the Ziegler Funds for $850,000, resulting in 100% ownership of this property by Physicians Realty L.P.

Classification of Assets and Liabilities

Classification of Assets and Liabilities

The financial affairs of the Ziegler Funds generally do not involve a business cycle since the realization of assets and the liquidation of liabilities are usually dependent on the Ziegler Funds’ circumstances. Accordingly, the classification of current assets and current liabilities is not considered appropriate and has been omitted from the combined statements of assets and liabilities.

Impairment of Intangible and Long-Lived Assets

Impairment of Intangible and Long-Lived Assets

The Ziegler Funds’ evaluate the recoverability of the recorded amount of intangible and long-lived assets whenever events or changes in circumstances indicate that the recorded amount of an asset may not be fully recoverable. Impairment is assessed when the undiscounted expected future cash flows derived from an asset are less than its carrying amount. If Ziegler Funds determine that an asset is impaired, the impairment to be recognized is measured as the amount by which the recorded amount of the asset exceeds its fair value. Assets to be disposed of are reported at the lower of the recorded amount or fair value less cost to sell. Fair value is determined using a discounted future cash flow analysis.

The Ziegler Funds did not recognize any impairments for the three or six months ended June 30, 2013 and 2012.

Escrow Reserves

Escrow Reserves

The Ziegler Funds are required to maintain various escrow reserves on their notes payable to cover future property taxes and insurance, and tenant improvement costs as defined in each loan agreement. The total reserves as of June 30, 2013 and December 31, 2012 are $1,264,572 and $1,060,003, respectively, which are included in other assets on the combined balance sheets.

Rental Revenue

Rental Revenue

Rental revenue, less lease inducement, is recognized on a straight-line basis over the terms of the related leases when collectability is reasonably assured. Recognizing rental revenue on a straight-line basis for leases may result in recognizing revenue for amounts more or less than amounts currently due from tenants. Amounts recognized in excess of amounts currently due from tenants are included in other assets and were $1,289,702 and $1,290,038 as of June 30, 2013 and December 31, 2012, respectively. If the Ziegler Funds determine that collectability of straight-line rents is not reasonably assured, the Ziegler Funds limit future recognition to amounts contractually owed and, where appropriate, establish an allowance for estimated losses.

Tenant recoveries related to reimbursement of real estate taxes, insurance and other operating expenses are recognized as rental revenue in the period the applicable expenses are incurred. The reimbursements are recorded at gross, as the Ziegler Funds are generally the primary obligor with respect to real estate taxes and purchasing goods and services from third-party suppliers, have discretion in selecting the supplier and bear the credit risk. Property taxes paid by tenants in accordance with the terms of triple net leases, and the corresponding expense, have been included in rental revenue and operational expenses, respectively, in the combined statements of operations of the Ziegler Funds.

Management Estimates

Management Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the combined financial statements and the reported amounts of revenue and expenses reported in the period. Significant estimates are made for the valuation of real estate and intangibles, valuation of financial instruments, impairment assessments and fair value assessments with respect to purchase price allocations. Actual results could differ from these estimates.

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Operating Leases (Details) (Predecessor) (Ziegler Healthcare Real Estate Funds, USD $)	Jun. 30, 2013
Ziegler Healthcare Real Estate Funds
Future minimum rental payments on noncancelable leases
2013	$ 4,938,716
2014	9,685,610
2015	6,676,426
2016	9,313,563
2017	8,079,679
Thereafter	35,491,739
Total	$ 74,185,733

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Summary of Significant Accounting Policies (Details) (Predecessor) (Ziegler Healthcare Real Estate Funds, USD $)	6 Months Ended	12 Months Ended	6 Months Ended			6 Months Ended		6 Months Ended		6 Months Ended					6 Months Ended			12 Months Ended	6 Months Ended	12 Months Ended	6 Months Ended	12 Months Ended	6 Months Ended	12 Months Ended	6 Months Ended	12 Months Ended	6 Months Ended	12 Months Ended	6 Months Ended	12 Months Ended	6 Months Ended	12 Months Ended			6 Months Ended		12 Months Ended	6 Months Ended	12 Months Ended	6 Months Ended	12 Months Ended	6 Months Ended	12 Months Ended	6 Months Ended	12 Months Ended			6 Months Ended		12 Months Ended	6 Months Ended	12 Months Ended	6 Months Ended	12 Months Ended	6 Months Ended	12 Months Ended	6 Months Ended	12 Months Ended	6 Months Ended	12 Months Ended	6 Months Ended	12 Months Ended			6 Months Ended		12 Months Ended	6 Months Ended	12 Months Ended
	Jun. 30, 2013	Dec. 31, 2012 Ziegler Georgia 7, LLC (Georgia 7)	Jun. 30, 2013 ZCO	Jun. 30, 2013 Illinois 12 Sandwich Development Partners LLC (Sandwich)	Dec. 31, 2006 Illinois 12 Sandwich Development Partners LLC (Sandwich)	Jun. 30, 2013 Investing Member Sandwich Development Partners LLC (Sandwich)	Dec. 31, 2006 Investing Member Sandwich Development Partners LLC (Sandwich)	Jun. 30, 2013 IDP Sandwich Development Partners (IDP) Sandwich Development Partners LLC (Sandwich)	Dec. 31, 2006 IDP Sandwich Development Partners (IDP) Sandwich Development Partners LLC (Sandwich)	Jun. 30, 2013 Maine 15 Bath Road Associates, LLC (Bath Road)	Jun. 30, 2013 Bath Road Management, LLC (BRM) Bath Road Associates, LLC (Bath Road)	Jun. 30, 2013 Other investors Bath Road Associates, LLC (Bath Road)	Jun. 30, 2013 Illinois 18 Remington Development Partners, LLC (Remington)	Dec. 31, 2007 Illinois 18 Remington Development Partners, LLC (Remington)	Jun. 30, 2013 IDP Remington Holdings (IDP) Remington Development Partners, LLC (Remington)	Jun. 30, 2013 Fund I	Jun. 30, 2013 Fund I Ziegler Michigan 5, LLC (Michigan 5)	Dec. 31, 2012 Fund I Ziegler Michigan 5, LLC (Michigan 5)	Jun. 30, 2013 Fund I Ziegler Georgia 6, LLC (Georgia 6)	Dec. 31, 2012 Fund I Ziegler Georgia 6, LLC (Georgia 6)	Jun. 30, 2013 Fund I Ziegler Michigan 6, LLC (Michigan 6)	Dec. 31, 2012 Fund I Ziegler Michigan 6, LLC (Michigan 6)	Jun. 30, 2013 Fund I Ziegler Georgia 7, LLC (Georgia 7)	Dec. 31, 2012 Fund I Ziegler Georgia 7, LLC (Georgia 7)	Jun. 30, 2013 Fund I Ziegler Florida 4, LLC (Florida 4)	Dec. 31, 2012 Fund I Ziegler Florida 4, LLC (Florida 4)	Jun. 30, 2013 Fund I Ziegler Georgia 21, LLC (Georgia 21)	Dec. 31, 2012 Fund I Ziegler Georgia 21, LLC (Georgia 21)	Jun. 30, 2013 Fund I Ziegler Texas 8, LLC (Texas 8)	Dec. 31, 2012 Fund I Ziegler Texas 8, LLC (Texas 8)	Jun. 30, 2013 Fund I Ziegler Arizona 23, LLC (Arizona 23)	Dec. 31, 2012 Fund I Ziegler Arizona 23, LLC (Arizona 23)	Jun. 30, 2013 Fund I General Interest	Jun. 30, 2013 Fund I Limited Interest	Jun. 30, 2013 Fund II	Jun. 30, 2013 Fund II Ziegler Illinois 12, LLC (Illinois 12)	Dec. 31, 2012 Fund II Ziegler Illinois 12, LLC (Illinois 12)	Jun. 30, 2013 Fund II Ziegler Michigan 12, LLC (Michigan 12)	Dec. 31, 2012 Fund II Ziegler Michigan 12, LLC (Michigan 12)	Jun. 30, 2013 Fund II Ziegler Tennessee 14, LLC (Tennessee 14)	Dec. 31, 2012 Fund II Ziegler Tennessee 14, LLC (Tennessee 14)	Jun. 30, 2013 Fund II Ziegler Ohio 9, LLC (Ohio 9)	Dec. 31, 2012 Fund II Ziegler Ohio 9, LLC (Ohio 9)	Jun. 30, 2013 Fund II Ziegler Maine 15, LLC (Maine 15)	Dec. 31, 2012 Fund II Ziegler Maine 15, LLC (Maine 15)	Jun. 30, 2013 Fund II General Interest	Jun. 30, 2013 Fund II Limited Interest	Jun. 30, 2013 Fund III	Jun. 30, 2013 Fund III Ziegler Georgia 21, LLC (Georgia 21)	Dec. 31, 2012 Fund III Ziegler Georgia 21, LLC (Georgia 21)	Jun. 30, 2013 Fund III Ziegler Maine 15, LLC (Maine 15)	Dec. 31, 2012 Fund III Ziegler Maine 15, LLC (Maine 15)	Jun. 30, 2013 Fund III Ziegler Wisconsin 16, LLC (Wisconsin 16)	Dec. 31, 2012 Fund III Ziegler Wisconsin 16, LLC (Wisconsin 16)	Jun. 30, 2013 Fund III Ziegler Georgia 17, LLC (Georgia 17)	Dec. 31, 2012 Fund III Ziegler Georgia 17, LLC (Georgia 17)	Jun. 30, 2013 Fund III Ziegler Illinois 18, LLC (Illinois 18)	Dec. 31, 2012 Fund III Ziegler Illinois 18, LLC (Illinois 18)	Jun. 30, 2013 Fund III Ziegler Ohio 19, LLC (Ohio 19)	Dec. 31, 2012 Fund III Ziegler Ohio 19, LLC (Ohio 19)	Jun. 30, 2013 Fund III Ziegler Georgia 20, LLC (Georgia 20)	Dec. 31, 2012 Fund III Ziegler Georgia 20, LLC (Georgia 20)	Jun. 30, 2013 Fund III General Interest	Jun. 30, 2013 Fund III Limited Interest	Jun. 30, 2013 Fund IV	Jun. 30, 2013 Fund IV Ziegler Ohio 9, LLC (Ohio 9)	Dec. 31, 2012 Fund IV Ziegler Ohio 9, LLC (Ohio 9)	Jun. 30, 2013 Fund IV Ziegler Wisconsin 24, LLC (Wisconsin 24)	Dec. 31, 2012 Fund IV Ziegler Wisconsin 24, LLC (Wisconsin 24)	Jun. 30, 2013 Fund IV General Interest	Jun. 30, 2013 Fund IV Limited Interest
Summary of significant accounting policies
Preferred annual return to members or partners (as a percent)				7.00%		7.00%							7.00%			8.00%																			8.00%													8.00%																	7.00%
Distribution percentage to members or partners, after the distribution of preferred annual return and return of invested capital (as a percent)	80.00%		20.00%	59.60%		5.40%		35.00%					65.00%		35.00%
Details of initial capital structure
Investment Units																																	0.01	151												0.02	356																0.01	90.5						0.02	112.3
Unit Price (in dollars per unit)																$ 100,000																			$ 50,000													$ 100,000																	$ 50,000
Principles of Consolidation
Ownership interest in consolidated subsidiaries (as a percent)																	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	50.00%	50.00%	100.00%	100.00%	79.40%	79.40%	100.00%	100.00%	50.00%	50.00%				100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	83.21%	83.21%	56.77%	56.77%				20.60%	20.60%	43.23%	43.23%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%				16.79%	16.79%	100.00%	100.00%
Capital contributed					$ 1,100,000		$ 100,000		$ 100					$ 1,300,000
Percentage of cash flow from property										66.33%	25.51%	8.16%
Lease term		5 years
Ownership interest exchanged (as a percent)		50.00%
Voting interest (as a percent)																							51.00%

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Notes Payable (Details 2) (Predecessor) (Ziegler Healthcare Real Estate Funds, USD $)	6 Months Ended
	Jun. 30, 2013
Scheduled principal payments
2013	$ 35,251,314
2014	1,054,578
2015	1,098,285
2016	8,624,861
2017	29,604,187
Thereafter	8,161,861
Total Payments	$ 83,795,086
Fund I | Mortgage loans partially guaranteed by Fund I | Maximum
Scheduled principal payments
Contingent liability as percentage of outstanding borrowing	100.00%

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Fair Value Measurements (Tables) (Predecessor) (Ziegler Healthcare Real Estate Funds)

6 Months Ended

Jun. 30, 2013

Nonrecurring

Fair value measurements

Schedule of assets and liabilities that were accounted for on a nonrecurring basis by level within the fair value hierarchy

			Nonrecurring Fair Value Measurements At Report Date using:
	Fair Value as of December 31, 2012		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Gains (Losses) for the Year Ended December 31, 2012
Medical office buildings	$	3,588,594	$	—	$	—	$	3,588,594	$	(614,540	)
Land	1,210,406		—		—		1,210,406		(231,594		)
Property under development	674,773		—		—		674,773		(90,455		)
	$	5,473,773	$	—	$	—	$	5,473,773	$	(936,589	)

Summary of quantitative inputs and assumptions used for items categorized in Level 3 for the fair value hierarchy

Asset Category	Fair value at December 31, 2012		Valuation Techniques	Unobservable Inputs	Ranges
Investment in real estate properties	$	4,799,000	Discounted cash flow	Discount rate	10.7-13.5%
				Capitalization rate	7.7-10.5%
				Vacancy rate	9.41-17.8%
Property under development	$	674,773	Market comparable/ Discounted cash flow	Capitalization rate	9-10%

Recurring

Fair value measurements

Schedule of fair value of other financial instruments

	June 30,				December 31,
	2013				2012
	(unaudited)
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Notes payable(1)	$	83,795,086	$	84,655,255	$	84,489,017	$	86,982,366
Interest rate swaps—Liabilities	$	453,252	$	453,252	$	642,940	$	642,940

(1) For disclosure purposes only.

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Fair Value Measurements (Details 2) (Predecessor) (Ziegler Healthcare Real Estate Funds, Nonrecurring basis, Level 3, USD $)	12 Months Ended
	Dec. 31, 2012
Quantitative inputs and assumptions used for items categorized in Level 3 for the fair value hierarchy
Fair value	$ 5,473,773
Discounted cash flow | Minimum
Unobservable Inputs
Discount rate (as a percent)	10.70%
Capitalization rate (as a percent)	7.70%
Vacancy rate (as a percent)	9.41%
Discounted cash flow | Maximum
Unobservable Inputs
Discount rate (as a percent)	13.50%
Capitalization rate (as a percent)	10.50%
Vacancy rate (as a percent)	17.80%
Market comparable/ Discounted cash flow | Minimum
Unobservable Inputs
Capitalization rate (as a percent)	9.00%
Market comparable/ Discounted cash flow | Maximum
Unobservable Inputs
Capitalization rate (as a percent)	10.00%
Investment in real estate properties
Quantitative inputs and assumptions used for items categorized in Level 3 for the fair value hierarchy
Fair value	4,799,000
Property under development
Quantitative inputs and assumptions used for items categorized in Level 3 for the fair value hierarchy
Fair value	$ 674,773

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Subsequent Events (Predecessor)

6 Months Ended

Jun. 30, 2013

Subsequent events

Subsequent Events

Note 4—Subsequent Events

On July 24, 2013, the Trust completed the IPO by issuing 10,434,782 common shares at a public offering price of $11.50 per share and on August 7, 2013, the Trust issued an additional 1,318,815 common shares at the IPO price of $11.50 per share pursuant to the underwriters’ exercise of their overallotment option to purchase additional common shares pursuant to the underwriting agreement.  Total proceeds to the Trust for the IPO, including the underwriters’ overallotment, were approximately $123.8 million, after deducting underwriting discounts and offering costs.  The Trust contributed the net proceeds to the Operating Partnership in exchange for 81.4% of the common units of partnership interest in the Trust (“OP Units”).

In connection with the closing of the IPO, the Trust and the Operating Partnership completed related formation transactions pursuant to which the Operating Partnership acquired from four healthcare real estate funds managed by B.C. Ziegler & Company or Ziegler Healthcare Real Estate Management IV, LLC, each of which is wholly owned by The Ziegler Companies, Inc, the ownership interests in 19 medical office buildings located in ten states in exchange for an aggregate of 2,744,000 OP Units.

On August 21, 2013, we, through our Operating Partnership, entered into an Agreement of Sale and Purchase to acquire a post-acute care specialty hospital in Plano, Texas for $18.2 million.

On August 29, 2013, the Operating Partnership, as borrower, the Company and certain subsidiaries, entered into a $75.0 million senior secured revolving credit facility. Subject to the satisfaction of certain conditions, including additional lender commitments, the Operating Partnership has the option to increase the borrowing capacity under the revolving credit facility up to $250.0 million. The revolving credit facility has a three-year term with an initial maturity date of August 29, 2016. The Operating Partnership has the option to extend the term to August 29, 2017.  Borrowings under the senior secured revolving credit facility bear interest at rates generally between LIBOR plus 2.65% and LIBOR plus 3.40%.

Ziegler Healthcare Real Estate Funds

Subsequent events

Subsequent Events

Note 9 — Subsequent Events

As discussed in Note 1, Physicians Realty L.P. purchased the remaining 50% joint venture equity interest in Arizona 23 (Arrowhead Commons) not owned by the Ziegler Funds.

As discussed in Note 4, in connection with closing of the IPO and formation transactions, Physicians Realty L.P. repaid approximately $36.9 million of outstanding indebtedness on ten properties.

We, effective August 21, 2013, through our Operating Partnership, entered into the Agreement of Sale and Purchase to acquire a post-acute care specialty hospital in Plano, Texas for $18.2 million.

As discussed in Note 4, the Operating Partnership, on August 29, 2013, we and certain subsidiaries of the Operating Partnership entered into a senior secured revolving credit facility.

As discussed in Note 7, a variable/fixed interest rate swap with a notional amount of $17,261,940 expired on July 1, 2013.

As discussed in Note 8, in connection with closing of the IPO and formation transactions, the outstanding payable owed to BCZ was repaid by the Ziegler Funds.

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Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2013

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

Note 3—Summary of Significant Accounting Policies

Basis of Presentation

The balance sheet has been prepared by management in accordance with generally accepted accounting principles.

Start Up Costs

Start-up costs incurred will be expensed. Costs related to the IPO and related formation transactions have been incurred by our Predecessor. Upon successful completion of the IPO, such costs will be reimbursed to the Predecessor from the proceeds of the IPO.

On July 24, 2013, all start-up costs incurred by our Predecessor were reimbursed from the proceeds of the IPO.

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Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2013

Summary of Significant Accounting Policies

Basis of Presentation

Basis of Presentation

The balance sheet has been prepared by management in accordance with generally accepted accounting principles.

Start Up Costs

Start Up Costs

Start-up costs incurred will be expensed. Costs related to the IPO and related formation transactions have been incurred by our Predecessor. Upon successful completion of the IPO, such costs will be reimbursed to the Predecessor from the proceeds of the IPO.

On July 24, 2013, all start-up costs incurred by our Predecessor were reimbursed from the proceeds of the IPO.

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Subsequent Events (Details2) (Subsequent event, Operating Partnership, Senior secured revolving credit facility due 2016, USD $)	0 Months Ended
	Aug. 29, 2013
Subsequent events
Maximum borrowing capacity	$ 75,000,000
Maximum borrowing capacity, option	$ 250,000,000
Term of facility	3 years
LIBOR | Minimum
Subsequent events
Variable rate basis	LIBOR
Margin (as a percent)	2.65%
LIBOR | Maximum
Subsequent events
Variable rate basis	LIBOR
Margin (as a percent)	3.40%

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Organization and Nature of Business (Details) (USD $)	Jul. 24, 2013	Jun. 30, 2013
Organization and Nature of Business
Common stock, shares authorized	50,000,000	1,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01

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Notes Payable (Details 3) (Predecessor) (USD $)		0 Months Ended			6 Months Ended				0 Months Ended	6 Months Ended											0 Months Ended
	Aug. 29, 2013 Subsequent event Operating Partnership Senior secured revolving credit facility	Aug. 29, 2013 Subsequent event Operating Partnership Senior secured revolving credit facility due 2016	Aug. 29, 2013 Subsequent event Operating Partnership Senior secured revolving credit facility due 2016 LIBOR Maximum	Aug. 29, 2013 Subsequent event Operating Partnership Senior secured revolving credit facility due 2016 LIBOR Minimum	Jun. 30, 2013 Ziegler Healthcare Real Estate Funds	Jun. 30, 2012 Ziegler Healthcare Real Estate Funds	Jun. 30, 2013 Ziegler Healthcare Real Estate Funds Summerfield, revolving line of credit due in March 2012	Jun. 30, 2013 Ziegler Healthcare Real Estate Funds Wisconsin 24, revolving bank line of credit due in August 2014	Sep. 18, 2012 Ziegler Healthcare Real Estate Funds Remington, mortgage loan prior to refinancing	Jun. 30, 2013 Ziegler Healthcare Real Estate Funds LIBOR Michigan 6, mortgage loan due in July 2013	Jun. 30, 2013 Ziegler Healthcare Real Estate Funds LIBOR Arizona 23, mortgage loan due in October 2013	Jun. 30, 2013 Ziegler Healthcare Real Estate Funds LIBOR Texas 8, mortgage loan due in October 2013	Jun. 30, 2013 Ziegler Healthcare Real Estate Funds LIBOR Georgia 6, mortgage loan due in October 2013	Jun. 30, 2013 Ziegler Healthcare Real Estate Funds LIBOR Michigan 5, mortgage loan due in October 2013	Jun. 30, 2013 Ziegler Healthcare Real Estate Funds LIBOR Georgia 21, mortgage loan due in July 2013	Jun. 30, 2013 Ziegler Healthcare Real Estate Funds LIBOR Maine 15, mortgage loan due June 2016	Jun. 30, 2013 Ziegler Healthcare Real Estate Funds LIBOR Georgia 17, mortgage loan due October 2013	Jun. 30, 2013 Ziegler Healthcare Real Estate Funds LIBOR Ohio 19, mortgage loan due February 2018	Jun. 30, 2013 Ziegler Healthcare Real Estate Funds LIBOR Remington, mortgage loan due September 2017	Jun. 30, 2013 Ziegler Healthcare Real Estate Funds LIBOR Wisconsin 24, revolving bank line of credit due in August 2014	Jul. 24, 2013 Ziegler Healthcare Real Estate Funds Subsequent event Operating Partnership item	Jul. 24, 2013 Ziegler Healthcare Real Estate Funds Subsequent event Operating Partnership Michigan 6, mortgage loan due in July 2013	Jul. 24, 2013 Ziegler Healthcare Real Estate Funds Subsequent event Operating Partnership Arizona 23, mortgage loan due in October 2013	Jul. 24, 2013 Ziegler Healthcare Real Estate Funds Subsequent event Operating Partnership Texas 8, mortgage loan due in October 2013	Jul. 24, 2013 Ziegler Healthcare Real Estate Funds Subsequent event Operating Partnership Georgia 6, mortgage loan due in October 2013	Jul. 24, 2013 Ziegler Healthcare Real Estate Funds Subsequent event Operating Partnership Michigan 5, mortgage loan due in October 2013	Jul. 24, 2013 Ziegler Healthcare Real Estate Funds Subsequent event Operating Partnership Georgia 21, mortgage loan due in July 2013	Jul. 24, 2013 Ziegler Healthcare Real Estate Funds Subsequent event Operating Partnership Mezzanine loans due in July 2013	Jul. 24, 2013 Ziegler Healthcare Real Estate Funds Subsequent event Operating Partnership Summerfield, loan due in March 2012	Jul. 24, 2013 Ziegler Healthcare Real Estate Funds Subsequent event Operating Partnership Georgia 17, mortgage loan due October 2013	Jul. 24, 2013 Ziegler Healthcare Real Estate Funds Subsequent event Operating Partnership Ohio 19, mortgage loan due February 2018	Jul. 24, 2013 Ziegler Healthcare Real Estate Funds Subsequent event Operating Partnership Georgia 20, mortgage loan due July 2013	Aug. 29, 2013 Ziegler Healthcare Real Estate Funds Subsequent event Operating Partnership Senior secured revolving credit facility due 2016 LIBOR Maximum	Aug. 29, 2013 Ziegler Healthcare Real Estate Funds Subsequent event Operating Partnership Senior secured revolving credit facility due 2016 LIBOR Minimum
Notes payable
Repayment of outstanding indebtedness					$ 857,421	$ 5,902,274															$ 36,893,119	$ 2,329,673	$ 2,237,344	$ 2,135,535	$ 1,107,858	$ 854,191	$ 17,224,530	$ 4,400,000	$ 455,001	$ 2,377,250	$ 2,152,925	$ 1,618,812
Number of properties on which indebtedness is repaid																					10
Maximum borrowing capacity	75,000,000	75,000,000					250,000	1,180,000
Maximum borrowing capacity, option		$ 250,000,000
Variable rate basis			LIBOR	LIBOR					LIBOR	LIBOR	LIBOR	LIBOR	LIBOR	LIBOR	LIBOR	LIBOR	LIBOR	LIBOR	LIBOR	LIBOR													LIBOR	LIBOR

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Summary of Significant Accounting Policies (Tables) (Predecessor) (Ziegler Healthcare Real Estate Funds)

6 Months Ended

Jun. 30, 2013

Summary of significant accounting policies

Summary of initial capital structure

	General Interest	Limited Interest
Fund	Investment Units		Unit Price
I	0.01	151	$	100,000
II	0.02	356	$	50,000
III	0.01	90.5	$	100,000
IV	0.02	112.3	$	50,000

Summary of consolidated subsidiaries

	Fund Ownership %
Entity	I		II		III		IV
Ziegler Michigan 5, LLC (Michigan 5)	100	%
Ziegler Georgia 6, LLC (Georgia 6)	100	%
Ziegler Michigan 6, LLC (Michigan 6)	100	%
Ziegler Georgia 7, LLC (Georgia 7)	50	%
Ziegler Florida 4, LLC (Florida 4)	100	%
Ziegler Georgia 21, LLC (Georgia 21)	79.4	%			20.6	%
Ziegler Texas 8, LLC (Texas 8)	100	%
Ziegler Arizona 23, LLC (Arizona 23)	50	%
Ziegler Illinois 12, LLC (Illinois 12)			100	%
Ziegler Michigan 12, LLC (Michigan 12)			100	%
Ziegler Tennessee 14, LLC (Tennessee 14)			100	%
Ziegler Ohio 9, LLC (Ohio 9)			83.21	%			16.79	%
Ziegler Maine 15, LLC (Maine 15)			56.77	%	43.23	%
Ziegler Wisconsin 16, LLC (Wisconsin 16)					100	%
Ziegler Georgia 17, LLC (Georgia 17)					100	%
Ziegler Illinois 18, LLC (Illinois 18)					100	%
Ziegler Ohio 19, LLC (Ohio 19)					100	%
Ziegler Georgia 20, LLC (Georgia 20)					100	%
Ziegler Wisconsin 24, LLC (Wisconsin 24)							100	%

Summerfield

Summary of significant accounting policies

Schedule of selected information of VIE

	Three Months Ended:			Six Months Ended:
	June 30,			June 30,			December 31,
	2013			2013			2012
	(unaudited)			(unaudited)
Investment property	$	—		$	3,009,121		$	3,036,850
Other assets	—			825,643			878,913
Total assets	$	—		$	3,834,764		$	3,915,763
Long-term debt	$	—		$	2,237,344		$	2,280,508
Other liabilities	—			71,417			68,614
Total liabilities	$	—		$	2,308,761		$	2,349,122
Rental revenue	$	83,014		$	166,287		$	327,635
Operating income	53,930			124,757			330,483
Net (loss) income	(7,586		)	(12,639		)	(88,193		)

Arizona 23

Summary of significant accounting policies

Schedule of selected information of VIE

	Three Months Ended:			Six Months Ended:
	June 30, 2013			June 30, 2013			December 31, 2012
	(unaudited)			(unaudited)
Property under Development	$	—		$	674,773		$	674,773
Other assets	—			4,276			5,227
Total Assets	$	—		$	679,049		$	680,000
Long-Term Debt	$	—		$	455,001		$	421,675
Other liabilities	—			153,932			167,690
Total Liabilities	$	—		$	608,933		$	589,365
Real estate sale	$	—		$	—		$	685,000
Operating loss	(9,003		)	(20,518		)	(340,250		)
Net loss	(9,003		)	(20,518		)	(340,250		)

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Operating Leases (Tables) (Predecessor) (Ziegler Healthcare Real Estate Funds)

6 Months Ended

Jun. 30, 2013

Ziegler Healthcare Real Estate Funds

Operating Leases

Schedule of future minimum rental payments on noncancelable leases

Year Ending December 31:
2013	$	4,938,716
2014	9,685,610
2015	6,676,426
2016	9,313,563
2017	8,079,679
Thereafter	35,491,739
Total	$	77,185,733

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Summary of Significant Accounting Policies (Details 4) (Predecessor) (Ziegler Healthcare Real Estate Funds, USD $)	Jun. 30, 2013	Dec. 31, 2012
Ziegler Healthcare Real Estate Funds
Escrow Reserves
Escrow reserves	$ 1,264,572	$ 1,060,003
Rental Revenue
Amounts recognized in excess of amounts currently due from tenants, included in other assets	$ 1,289,702	$ 1,290,038

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Derivative Financial Instruments (Details) (Predecessor) (Ziegler Healthcare Real Estate Funds, Interest rates swaps, USD $)		3 Months Ended		6 Months Ended
	Jul. 02, 2013 Subsequent Event	Jun. 30, 2013 Designated as hedge Cash flow hedges	Jun. 30, 2012 Designated as hedge Cash flow hedges	Jun. 30, 2013 Designated as hedge Cash flow hedges	Jun. 30, 2012 Designated as hedge Cash flow hedges	Dec. 31, 2012 Designated as hedge Cash flow hedges	Jun. 30, 2013 Designated as hedge Cash flow hedges Expires July 2013	Dec. 31, 2012 Designated as hedge Cash flow hedges Expires July 2013
Derivative financial instruments
Notional amount	$ 17,261,940	$ 23,326,511		$ 23,326,511		$ 25,609,755	$ 17,261,940	$ 17,441,821
Gains recognized		$ 115,307	$ 31,955	$ 189,688	$ 58,138

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Condensed Balance Sheet (Parenthetical) (USD $)	Jun. 30, 2013
Condensed Balance Sheet
Common stock, par value (in dollars per share)	$ 0.01
Common stock, shares authorized	1,000
Common stock, shares issued	1,000
Common stock, shares outstanding	1,000

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Combined Statements of Operations (Predecessor) (Ziegler Healthcare Real Estate Funds, USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Ziegler Healthcare Real Estate Funds
Revenues
Rental revenues	$ 2,534,982	$ 2,467,714	$ 5,031,549	$ 5,037,375
Expense recoveries	786,658	712,396	1,600,925	1,401,286
Other revenues	543	647	5,637	4,741
Total Revenues	3,322,183	3,180,757	6,638,111	6,443,402
Expenses
Management fees	237,700	237,700	475,400	475,400
General and administrative	102,089	29,419	222,021	188,308
Operational expenses	1,260,553	1,184,759	2,524,170	2,350,172
Depreciation and amortization	1,039,480	1,028,795	2,060,492	2,089,369
Loss on sale of property under development				66,853
Total Expenses	2,639,822	2,480,673	5,282,083	5,170,102
Total Operating Income	682,361	700,084	1,356,028	1,273,300
Interest Expense	1,080,743	1,127,128	2,130,143	2,302,768
Change in Fair Value of Derivatives, net	(115,307)	(31,955)	(189,688)	(58,138)
Combined Net Loss Before Discontinued Operations	(283,075)	(395,089)	(584,427)	(971,330)
Discontinued Operations
Income from operations on discontinued investment properties		33,133		63,514
Gain on sale of discontinued investment properties		340,173		340,173
Total Discontinued Operations		373,306		403,687
Combined Net Loss	(283,075)	(21,783)	(584,427)	(567,643)
Less Net Income Attributable to Noncontrolling Interest	21,662	(41,742)	(125,485)	(86,041)
Combined Net Loss Attributable to the Ziegler Funds	$ (261,413)	$ (63,525)	$ (709,912)	$ (653,684)

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Formation of the Trust and Offering Transaction

6 Months Ended

Jun. 30, 2013

Formation of the Trust and Offering Transaction

Formation of the Trust and Offering Transaction

Note 2—Formation of the Trust and Offering Transaction

Upon completion of the IPO, the Trust will contribute the net proceeds of the IPO to Physicians Realty L.P. (the “Operating Partnership”).  The Trust is the sole general partner of the Operating Partnership. The Operating Partnership is a Delaware limited partnership. The Trust’s and the Operating Partnership’s operations are planned to commence upon completion of the IPO and related formation transactions. Upon completion of the IPO and the related formation transactions, the Trust expects its operations to be carried on through its Operating Partnership and wholly owned subsidiaries of the Operating Partnership. At such time, the Trust, as the general partner of the Operating Partnership, will control the Operating Partnership and consolidate the assets, liabilities and results of operations of the Operating Partnership.

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Condensed Balance Sheet (USD $)	Jun. 30, 2013
Assets
Assets-Cash	$ 1,000
Shareholder's Equity
Common shares of beneficial interest ($0.01 par value, 1,000 shares authorized, issued and outstanding)	10
Additional paid-in capital	990
Total Shareholder's Equity	$ 1,000

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Intangibles (Tables) (Predecessor) (Ziegler Healthcare Real Estate Funds)

6 Months Ended

Jun. 30, 2013

Ziegler Healthcare Real Estate Funds

Intangibles

Schedule of future amortization of the intangible assets

Year Ending December 31:
2013	$	371,203
2014	695,068
2015	661,255
2016	648,520
2017	472,357
Thereafter	2,032,545
Total	$	4,880,948

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Operating Leases (Predecessor) (Ziegler Healthcare Real Estate Funds)

6 Months Ended

Jun. 30, 2013

Ziegler Healthcare Real Estate Funds

Operating Leases

Operating Leases

Note 7—Operating Leases

The Ziegler Funds are lessors of medical office buildings. Leases have expirations from 2013 through 2028. As of June 30, 2013, the future minimum rental payments on noncancelable leases was as follows:

Year Ending December 31:
2013	$	4,938,716
2014	9,685,610
2015	6,676,426
2016	9,313,563
2017	8,079,679
Thereafter	35,491,739
Total	$	77,185,733

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Fair Value Measurements (Details 3) (Predecessor) (Ziegler Healthcare Real Estate Funds, USD $)	Jun. 30, 2013	Dec. 31, 2012
Fair value of other financial instruments
Derivative liabilities	$ 453,252	$ 642,940
Carrying Amount
Fair value of other financial instruments
Notes payable	83,795,086	84,489,017
Fair Value
Fair value of other financial instruments
Notes payable	84,655,255	86,982,366
Recurring basis | Carrying Amount | Interest rates swaps
Fair value of other financial instruments
Derivative liabilities	453,252	642,940
Recurring basis | Fair Value | Interest rates swaps
Fair value of other financial instruments
Derivative liabilities	$ 453,252	$ 642,940

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Notes Payable (Details) (Predecessor) (Ziegler Healthcare Real Estate Funds, USD $)	6 Months Ended			0 Months Ended	6 Months Ended		6 Months Ended	0 Months Ended	6 Months Ended		1 Months Ended	8 Months Ended		6 Months Ended	0 Months Ended	6 Months Ended		6 Months Ended	0 Months Ended	6 Months Ended		6 Months Ended	0 Months Ended	6 Months Ended		6 Months Ended	0 Months Ended	1 Months Ended	13 Months Ended		6 Months Ended	0 Months Ended	6 Months Ended		0 Months Ended		6 Months Ended		6 Months Ended		6 Months Ended		6 Months Ended		6 Months Ended		6 Months Ended			6 Months Ended		6 Months Ended		6 Months Ended	0 Months Ended	1 Months Ended	6 Months Ended		6 Months Ended	0 Months Ended	6 Months Ended		0 Months Ended	6 Months Ended		6 Months Ended		6 Months Ended		0 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Dec. 31, 2012	Jul. 24, 2013 Operating Partnership Subsequent event item	Jun. 30, 2013 Michigan 6, mortgage loan due in July 2013	Dec. 31, 2012 Michigan 6, mortgage loan due in July 2013	Jun. 30, 2013 Michigan 6, mortgage loan due in July 2013 LIBOR	Jul. 24, 2013 Michigan 6, mortgage loan due in July 2013 Operating Partnership Subsequent event	Jun. 30, 2013 Georgia 7, mortgage loan due in June 2017	Dec. 31, 2012 Georgia 7, mortgage loan due in June 2017	Oct. 31, 2012 Arizona 23, mortgage loan due in October 2013	Jun. 30, 2013 Arizona 23, mortgage loan due in October 2013	Dec. 31, 2012 Arizona 23, mortgage loan due in October 2013	Jun. 30, 2013 Arizona 23, mortgage loan due in October 2013 LIBOR	Jul. 24, 2013 Arizona 23, mortgage loan due in October 2013 Operating Partnership Subsequent event	Jun. 30, 2013 Texas 8, mortgage loan due in October 2013	Dec. 31, 2012 Texas 8, mortgage loan due in October 2013	Jun. 30, 2013 Texas 8, mortgage loan due in October 2013 LIBOR	Jul. 24, 2013 Texas 8, mortgage loan due in October 2013 Operating Partnership Subsequent event	Jun. 30, 2013 Georgia 6, mortgage loan due in October 2013	Dec. 31, 2012 Georgia 6, mortgage loan due in October 2013	Jun. 30, 2013 Georgia 6, mortgage loan due in October 2013 LIBOR	Jul. 24, 2013 Georgia 6, mortgage loan due in October 2013 Operating Partnership Subsequent event	Jun. 30, 2013 Michigan 5, mortgage loan due in October 2013	Dec. 31, 2012 Michigan 5, mortgage loan due in October 2013	Jun. 30, 2013 Michigan 5, mortgage loan due in October 2013 LIBOR	Jul. 24, 2013 Michigan 5, mortgage loan due in October 2013 Operating Partnership Subsequent event	Jun. 30, 2012 Georgia 21, mortgage loan due in July 2013	Jun. 30, 2013 Georgia 21, mortgage loan due in July 2013	Dec. 31, 2012 Georgia 21, mortgage loan due in July 2013	Jun. 30, 2013 Georgia 21, mortgage loan due in July 2013 LIBOR	Jul. 24, 2013 Georgia 21, mortgage loan due in July 2013 Operating Partnership Subsequent event	Jun. 30, 2013 Mezzanine loans due in July 2013 item	Dec. 31, 2012 Mezzanine loans due in July 2013	Jul. 24, 2013 Mezzanine loans due in July 2013 Operating Partnership Subsequent event	Jul. 24, 2013 Summerfield, loan due in March 2012 Operating Partnership Subsequent event	Jun. 30, 2013 Summerfield, mortgage loan due in March 2012	Dec. 31, 2012 Summerfield, mortgage loan due in March 2012	Jun. 30, 2013 Summerfield, revolving line of credit due in March 2012	Dec. 31, 2012 Summerfield, revolving line of credit due in March 2012	Jun. 30, 2013 Tennessee 14, mortgage loan due June 2017	Dec. 31, 2012 Tennessee 14, mortgage loan due June 2017	Jun. 30, 2013 Michigan 12, mortgage loan due January 2017	Dec. 31, 2012 Michigan 12, mortgage loan due January 2017	Jun. 30, 2013 Maine 15, mortgage loan due June 2016	Dec. 31, 2012 Maine 15, mortgage loan due June 2016	Jun. 30, 2013 Maine 15, mortgage loan due June 2016 LIBOR	Jun. 30, 2013 Illinois 12, mortgage loan due January 2018	Dec. 31, 2012 Illinois 12, mortgage loan due January 2018	Jun. 30, 2013 Wisconsin 16, mortgage loan due September 2032	Dec. 31, 2012 Wisconsin 16, mortgage loan due September 2032	Jun. 30, 2013 Georgia 17, mortgage loan due October 2013	Dec. 31, 2012 Georgia 17, mortgage loan due October 2013	Jun. 30, 2013 Georgia 17, mortgage loan due October 2013 LIBOR	Jul. 24, 2013 Georgia 17, mortgage loan due October 2013 Operating Partnership Subsequent event	Mar. 31, 2013 Ohio 19, mortgage loan due February 2018	Jun. 30, 2013 Ohio 19, mortgage loan due February 2018	Dec. 31, 2012 Ohio 19, mortgage loan due February 2018	Jun. 30, 2013 Ohio 19, mortgage loan due February 2018 LIBOR	Jul. 24, 2013 Ohio 19, mortgage loan due February 2018 Operating Partnership Subsequent event	Jun. 30, 2013 Georgia 20, mortgage loan due July 2013	Dec. 31, 2012 Georgia 20, mortgage loan due July 2013	Jul. 24, 2013 Georgia 20, mortgage loan due July 2013 Operating Partnership Subsequent event	Jun. 30, 2013 Remington, mortgage loan due September 2017	Dec. 31, 2012 Remington, mortgage loan due September 2017	Jun. 30, 2013 Remington, mortgage loan due September 2017 LIBOR	Jun. 30, 2013 Wisconsin 24, revolving bank line of credit due in August 2014	Jun. 30, 2013 Wisconsin 24, revolving bank line of credit due in August 2014 LIBOR	Jun. 30, 2013 Wisconsin 24, revolving bank line of credit due in August 2014 Fund IV Maximum	Sep. 18, 2012 Remington, mortgage loan prior to refinancing
Notes payable
Notes payable	$ 83,795,086		$ 84,489,017		$ 2,329,673	$ 2,466,919			$ 6,356,418	$ 6,403,977		$ 2,237,344	$ 2,280,508			$ 2,135,535	$ 2,184,559			$ 1,107,858	$ 1,133,200			$ 854,191	$ 884,825				$ 17,224,530	$ 17,404,410			$ 4,400,000	$ 4,400,000			$ 359,031	$ 325,706	$ 95,970	$ 95,970	$ 10,666,060	$ 10,747,849	$ 5,563,609	$ 5,613,726	$ 8,170,704	$ 8,265,443		$ 6,815,452	$ 6,847,333	$ 2,856,851	$ 2,885,864	$ 2,377,250	$ 2,432,750				$ 2,152,925	$ 2,174,646			$ 1,618,812	$ 1,631,947		$ 6,472,873	$ 6,309,385
Monthly payments of principal and interest					26,535				39,890		15,000	7,194				8,171				4,224				5,106				28,140	29,980								5,177		8,000		66,081		36,299		33,160			41,428		20,741		9,250					13,242				10,755			36,675						23,468
Final balloon payment					2,449,329				5,869,275			2,208,568				2,012,853				1,090,963				835,927					17,226,037												9,820,300		5,035,493		7,639,025			6,169,464				2,349,500									1,617,519			5,235,023
Variable rate basis							LIBOR							LIBOR				LIBOR				LIBOR				LIBOR					LIBOR																LIBOR							LIBOR					LIBOR							LIBOR		LIBOR		LIBOR
Margin (as a percent)							1.60%							3.25%				4.00%				4.00%				4.00%					3.05%																2.25%							3.25%					2.40%							2.75%		3.25%		1.60%
Effective interest rate (as a percent)					1.79%							3.44%				4.19%				4.19%				4.19%					3.24%																2.44%							3.44%												2.94%			3.44%
Interest rate ( as a percent)									5.942%																								12.00%				4.25%		4.25%		5.81%		5.93%					5.35%		6.58%							5.84%				6.25%
Number of private investors to whom loans are payable																																	3
Maximum borrowing capacity																																							250,000																												1,180,000
Minimum interest rate of the debt instrument if not repaid by September 2017																																																		8.58%
Reference rate if not repaid by September 2017																																																		10-year U.S. treasury rate
Margin on variable rate base if not repaid by September 2017 (as a percent)																																																		3.00%
Period that interest rate is subject to adjustment																																																								6 months
Maximum interest rate (as a percent)																																																									11.31%
Contingent liability as percentage of outstanding borrowing																																																																					100.00%
Number of properties on which indebtedness is repaid				10
Repayment of outstanding indebtedness	$ 857,421	$ 5,902,274		$ 36,893,119				$ 2,329,673							$ 2,237,344				$ 2,135,535				$ 1,107,858				$ 854,191					$ 17,224,530			$ 4,400,000	$ 455,001																			$ 2,377,250					$ 2,152,925			$ 1,618,812

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Summary of Significant Accounting Policies (Details 2) (Predecessor) (Ziegler Healthcare Real Estate Funds, USD $)	3 Months Ended		6 Months Ended		12 Months Ended	3 Months Ended	6 Months Ended	12 Months Ended	6 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012	Dec. 31, 2012	Jun. 30, 2013 Ziegler CED Summerfield Square, LLC (Summerfield)	Jun. 30, 2013 Ziegler CED Summerfield Square, LLC (Summerfield)	Dec. 31, 2012 Ziegler CED Summerfield Square, LLC (Summerfield)	Jun. 30, 2013 Ziegler CED Summerfield Square, LLC (Summerfield) Ziegler Florida 4, LLC (Florida 4)	Dec. 31, 2005 Ziegler CED Summerfield Square, LLC (Summerfield) Ziegler Florida 4, LLC (Florida 4)	Jun. 30, 2013 Ziegler CED Summerfield Square, LLC (Summerfield) CED SS II, LLC (CED)
Summary of significant accounting policies
Capital contributed										$ 629,000
Ownership interest (as a percent)									40.00%		60.00%
Preferred annual return to members or partners (as a percent)									10.00%
Distribution percentage to members or partners, after the distribution of preferred annual return and return of invested capital (as a percent)			80.00%						40.00%		60.00%
Development fee on the ultimate sale of the medical office buildings (as a percent)											4.25%
Selected information
Property under Development	674,773		674,773		674,773	674,773	674,773	674,773
Other Assets	4,110,478		4,110,478		3,292,239	4,276	4,276	5,227
Total Assets	106,282,906		106,282,906		107,592,094	679,049	679,049	680,000
Long-Term Debt						455,001	455,001	421,675
Other liabilities						153,932	153,932	167,690
Total Liabilities	88,083,849		88,083,849		88,495,281	608,933	608,933	589,365
Real estate sale								685,000
Operating loss	682,361	700,084	1,356,028	1,273,300		(9,003)	(20,518)	(340,250)
Net loss	$ (283,075)	$ (21,783)	$ (584,427)	$ (567,643)	$ (1,531,150)	$ (9,003)	$ (20,518)	$ (340,250)

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Summary of Significant Accounting Policies (Details 3) (Predecessor) (Ziegler Healthcare Real Estate Funds, USD $)	0 Months Ended	3 Months Ended		6 Months Ended		12 Months Ended	0 Months Ended	3 Months Ended		6 Months Ended		12 Months Ended	0 Months Ended
	Aug. 01, 2011	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012	Dec. 31, 2012	Aug. 01, 2011 Fund I Arizona 23	Jun. 30, 2013 Fund I Arizona 23	Jun. 30, 2012 Fund I Arizona 23	Jun. 30, 2013 Fund I Arizona 23	Jun. 30, 2012 Fund I Arizona 23	Dec. 31, 2012 Fund I Arizona 23	Jul. 24, 2013 Operating Partnership Arizona 23 Subsequent event
Summary of significant accounting policies
Equity interest transferred (as a percent)							50.00%
Lease term							10 years
Gross value of property							$ 3,900,000
Capitalization rate (as a percent)							7.75%
Stabilized annual net operating income							302,000
Property's outstanding mortgage debt		83,795,086		83,795,086			2,500,000
Net equity value of real estate investment							1,400,000
Net equity interest issued							700,000
Net present value of the tenant lease							1,400,000
Future gross lease payments for the ten-year term of the lease		74,185,733		74,185,733			2,200,000
Discount rate (as a percent)							7.75%
Gain (loss) on transaction							0
Lease inducement received by lessee	700,000
Lease inducement recognized as an increase to other assets							700,000
Lease inducement recognized as an increase to owners' equity							700,000
Amortization of lease inducement								17,500	17,500	35,000	35,000
Equity interest acquired (as a percent)													50.00%
Equity interest acquired													850,000
Ownership of property (as a percent)													100.00%
Selected information
Investment property		93,373,274		93,373,274		94,653,357		3,009,121		3,009,121		3,036,850
Other Assets		4,110,478		4,110,478		3,292,239		825,643		825,643		878,913
Total Assets		106,282,906		106,282,906		107,592,094		3,834,764		3,834,764		3,915,763
Long-Term Debt								2,237,344		2,237,344		2,280,508
Other liabilities								71,417		71,417		68,614
Total Liabilities		88,083,849		88,083,849		88,495,281		2,308,761		2,308,761		2,349,122
Rental revenue								83,014		166,287		327,635
Operating income		682,361	700,084	1,356,028	1,273,300			53,930		124,757		330,483
Net (loss) income		$ (283,075)	$ (21,783)	$ (584,427)	$ (567,643)	$ (1,531,150)		$ (7,586)		$ (12,639)		$ (88,193)

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Combined Balance Sheet Assets (Predecessor) (Parenthetical) (Ziegler Healthcare Real Estate Funds, USD $)	Jun. 30, 2013	Dec. 31, 2012
Land	$ 15,463,667	$ 15,463,667
Receivables-Tenant Receivables, allowance for doubtful accounts	132,149	104,627
Deferred Costs, accumulated amortization	1,331,438	1,380,327
Intangibles, accumulated amortization	7,269,352	6,907,414
Notes payable	83,795,086	84,489,017
Medical office buildings
Medical office buildings, accumulated depreciation	16,524,238	15,118,553
Tenant improvements
Medical office buildings, accumulated depreciation	1,518,378	1,376,082
Consolidated VIEs
Land	740,000	740,000
Notes payable	2,237,344	2,702,184
Consolidated VIEs | Medical office buildings
Medical office buildings, accumulated depreciation	$ 2,269,121	$ 2,296,849

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Notes Payable (Tables) (Predecessor) (Ziegler Healthcare Real Estate Funds)

6 Months Ended

Jun. 30, 2013

Ziegler Healthcare Real Estate Funds

Notes payable

Schedule of notes payable

	June 30,		December 31,
	2013		2012
Michigan 6, mortgage loan due in July 2013; monthly payments of principal and interest of $26,535, with a final balloon payment of $2,449,329 due at the maturity date; interest rate of LIBOR plus 1.6% per annum, effective rate of 1.79% as of June 30, 2013.(4)	$	2,329,673	$	2,466,919
Georgia 7, mortgage loan due in June 2017; interest-only payments through June 2009, effective July 2009, monthly principal and interest payments of $39,890, with a final balloon payment of $5,869,275 due at the maturity date; interest rate of 5.942% per annum.	6,356,418		6,403,977
Arizona 23, mortgage loan due in October 2013; monthly payments principal and interest of $15,000 through October 2012; effective November 2012, monthly payments of principal and interest of $7,194, with a final balloon payment of $2,208,568 due at the maturity date; interest rate of LIBOR plus 3.25% per annum, effective rate of 3.44% as of June 30, 2013.(4)	2,237,344		2,280,508
Texas 8, mortgage loan due in October 2013; monthly payments of principal and interest of $8,171, with a final balloon payment of $2,012,853 due at the maturity date; interest rate of LIBOR plus 4% per annum, effective rate of 4.19% as of June 30, 2013.(4)	2,135,535		2,184,559
Georgia 6, mortgage loan due in October 2013; monthly payments of principal and interest of $4,224, with a final balloon payment of $1,090,963 due at the maturity date; interest rate of LIBOR plus 4% per annum, effective rate of 4.19% as of June 30, 2013.(4)	1,107,858		1,133,200
Michigan 5, mortgage loan due in October 2013; monthly payments of principal and interest of $5,106, with a final balloon payment of $835,927 due at the maturity date; interest rate of LIBOR plus 4% per annum, effective rate of 4.19% as of June 30, 2013.(4)	854,191		884,825
Georgia 21, mortgage loan due in July 2013; monthly payments and interest of $28,140 until June 2012, effective July 2012 monthly payment of principal and interest of $29,980, with a final balloon payment of $17,226,037 due at the maturity date; interest rate of LIBOR plus 3.05% per annum, effective rate of 3.24% as of June 30, 2013.(4)	17,224,530		17,404,410

	June 30,		December 31,
	2013		2012
Mezzanine loans payable to three private investors; monthly payments of interest only at an annual rate of 12%; due in July 2013. (4)	4,400,000		4,400,000
Summerfield, mortgage loan due in March 2012; monthly payments of interest only until March 2011; effective April 2011, monthly payments of principal and interest of $5,177; interest rate of 4.25% per annum.(1) (4)	359,031		325,706
Summerfield, $250,000 revolving line of credit due in March 2012; monthly payments of interest only until March 2011; effective April 2011, monthly payments of principal and interest of $8,000; interest rate of 4.25% per annum.(1)(4)	95,970		95,970
Tennessee 14, mortgage loan due June 2017; monthly payments of principal and interest of $66,081, with a final balloon payment of $9,820,300 due at the maturity date; interest rate of 5.81% per annum.	10,666,060		10,747,849
Michigan 12, mortgage loan due January 2017; monthly payments of principal and interest of $36,299, with a final balloon payment of $5,035,493 due at the maturity date; interest rate of 5.93% per annum. (4)	5,563,609		5,613,726
Maine 15, mortgage loan due June 2016; monthly payments of principal and interests of $33,160, with a final balloon payment of $7,639,025 due at the maturity date; interest rate of LIBOR plus 2.25%, effective rate of 2.44% as of June 30, 2013.	8,170,704		8,265,443
Illinois 12, mortgage loan due January 2018; monthly payments of principal and interest of $41,428, with a final balloon payment of $6,169,464 due at maturity; interest rate of 5.35% per annum.	6,815,452		6,847,333
Wisconsin 16, mortgage loan due September 2032 with an anticipated repayment date of September 2017, monthly payments of principal and interest of $20,741; interest rate of 6.58% per annum. If not repaid by anticipated repayment date, effective September 2017, monthly payments adjust based on the property’s cash flow (as defined in the agreement) with the interest rate becoming the greater of 8.58% or the 10 year U.S. treasury rate plus 3%.	2,856,851		2,885,864
Georgia 17, mortgage loan due October 2013, monthly payments of principal and interest of $9,250, with final balloon payment of $2,349,500 due at maturity date; interest rate of LIBOR plus 3.25%, effective rate of 3.44% as of June 30, 2013.(4)	2,377,250		2,432,750
Ohio 19, mortgage loan due February 2018, effective April 2011, monthly payments of principal and interest t $13,242; interest rate of 5.84% per annum. Effective March 2013 and every six months thereafter, the interest rate is subject to adjustment to LIBOR plus 2.4%, but will not exceed 11.31%.(4)	2,152,925		2,174,646
Georgia 20, mortgage loan due July 2013, monthly payments of principal and interest of $10,755, with final balloon payment of $1,617,519 due at maturity date; interest rate of 6.25% per annum.	1,618,812		1,631,947
Remington, mortgage loan due September 2017, monthly payments of principal and interest of $36,675, with a final balloon payment of $5,235,023 due at maturity date; interest rate of LIBOR plus 2.75%, effective rate of 2.94% as of June 30, 2013.(2)	6,472,873		6,309,385
Wisconsin 24, revolving bank line of credit due in August 2014; monthly payments of interest only; interest rate of LIBOR plus 3.25% per annum, effective rate of 3.44% as of June 30, 2013.(3)(4)	—		—
	$	83,795,086	$	84,489,017

(1) On January 24, 2013, Summerfield entered into a forbearance agreement with the lender regarding its mortgage note and outstanding line of credit, pursuant to which the lender agreed not to exercise its rights and remedies available under the forbearance agreement. The forbearance period extends through September 30, 2013, at which time the mortgage note and line of credit is due.

(2) The note was refinanced on September 18, 2012 with an effective date of September 28, 2012. Prior to the refinancing, the loan was payable in monthly payments of principal and interest of $23,468, at an interest rate of LIBOR plus 1.6%.

(3) The revolving line of credit is secured by the investment property owned by Wisconsin 24. Fund IV is contingently liable under certain circumstances for up to 100 percent of the borrowings under the revolving line of credit. As of June 30, 2013, the maximum available borrowings under this agreement were $1,180,000.

(4) On July 24, 2013, proceeds from the IPO were used to repay outstanding indebtedness on the following ten properties:

Property	Amount Repaid
Arizona 23 (Arrowhead Commons)	$	2,237,344
Georgia 20 (Austell Medical Office Building)	1,618,812
Georgia 17 (Decatur Medical Office Building)	2,377,250
Texas 8 (El Paso Medical Office Building)	2,135,535
Michigan 5 (Farmington Professional Pavilion)	854,191
Michigan 6 (Ingham Medical Center)	2,329,673
Ohio 19 (New Albany Professional Building)	2,152,925
Georgia 6 (Northpark Trail)	1,107,858
Summerfield Square	455,001
Georgia 21 (Summit Healthplex — Senior Debt)	17,224,530
Georgia 21 (Summit Healthplex — Mezzanine Debt)	4,400,000
	$	36,893,119

Schedule of notes payable, repayment of outstanding indebtedness from the proceeds from IPO

Property	Amount Repaid
Arizona 23 (Arrowhead Commons)	$	2,237,344
Georgia 20 (Austell Medical Office Building)	1,618,812
Georgia 17 (Decatur Medical Office Building)	2,377,250
Texas 8 (El Paso Medical Office Building)	2,135,535
Michigan 5 (Farmington Professional Pavilion)	854,191
Michigan 6 (Ingham Medical Center)	2,329,673
Ohio 19 (New Albany Professional Building)	2,152,925
Georgia 6 (Northpark Trail)	1,107,858
Summerfield Square	455,001
Georgia 21 (Summit Healthplex — Senior Debt)	17,224,530
Georgia 21 (Summit Healthplex — Mezzanine Debt)	4,400,000
	$	36,893,119

Schedule of principal payments due on notes payable

Year Ending December 31:
2013	$	35,251,314
2014	1,054,578
2015	1,098,285
2016	8,624,861
2017	29,604,187
Thereafter	8,161,861
Total Payments	$	83,795,086

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Fair Value Measurements (Details) (Predecessor) (Ziegler Healthcare Real Estate Funds, USD $)	3 Months Ended		6 Months Ended			3 Months Ended		6 Months Ended			12 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012	Dec. 31, 2012	Jun. 30, 2013 Recurring basis Significant Other Observable Inputs (Level 2) Interest rates swaps	Jun. 30, 2012 Recurring basis Significant Other Observable Inputs (Level 2) Interest rates swaps	Jun. 30, 2013 Recurring basis Significant Other Observable Inputs (Level 2) Interest rates swaps	Jun. 30, 2012 Recurring basis Significant Other Observable Inputs (Level 2) Interest rates swaps	Dec. 31, 2012 Recurring basis Significant Other Observable Inputs (Level 2) Interest rates swaps	Dec. 31, 2012 Nonrecurring basis	Dec. 31, 2012 Nonrecurring basis Medical office buildings	Dec. 31, 2012 Nonrecurring basis Land	Dec. 31, 2012 Nonrecurring basis Property under development	Dec. 31, 2012 Nonrecurring basis Fair Value	Dec. 31, 2012 Nonrecurring basis Fair Value Medical office buildings	Dec. 31, 2012 Nonrecurring basis Fair Value Land	Dec. 31, 2012 Nonrecurring basis Fair Value Property under development	Dec. 31, 2012 Nonrecurring basis Significant Unobservable Inputs (Level 3)	Dec. 31, 2012 Nonrecurring basis Significant Unobservable Inputs (Level 3) Medical office buildings	Dec. 31, 2012 Nonrecurring basis Significant Unobservable Inputs (Level 3) Land	Dec. 31, 2012 Nonrecurring basis Significant Unobservable Inputs (Level 3) Property under development
Fair value measurements
Fair value of derivative	$ (453,252)		$ (453,252)		$ (642,940)	$ (453,252)		$ (453,252)		$ (642,940)
Changes in fair value of the derivative	115,307	31,955	189,688	58,138		(115,307)	(39,763)	(189,688)	(58,138)
Assets fair value															5,473,773	3,588,594	1,210,406	674,773	5,473,773	3,588,594	1,210,406	674,773
Total Gains (Losses)											$ (936,589)	$ (614,540)	$ (231,594)	$ (90,455)

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Combined Statements of Cash Flows (Predecessor) (Ziegler Healthcare Real Estate Funds, USD $)	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
Ziegler Healthcare Real Estate Funds
Cash Flows from Operating Activities
Net loss	$ (584,427)	$ (567,643)
Adjustments to reconcile net loss to net cash provided by operating activities
Depreciation and amortization	2,060,492	2,300,567
Gain on sale of investment properties		(340,173)
Loss on sale of property under development		66,853
Lease Inducement	35,000	35,000
Change in Fair Value of Derivatives, net	(189,688)	(58,138)
Provision for bad debts	29,522	121,113
(Increase) decrease in
Tenant receivables	98,171	322,262
Deferred costs	(38,770)	(96,868)
Other assets	(738,763)	(492,137)
Increase (decrease) in
Accounts payable to related parties	384,394	378,514
Accounts payable	(269,676)	(187,314)
Accrued expenses and other liabilities	240,916	160,228
Total Adjustments	1,611,598	2,209,907
Net Cash Provided by Operating Activities	1,027,171	1,642,264
Cash Flows from Investing Activities
Proceeds from sale of investment properties		5,547,620
Capital expenditures on investment properties	(267,896)	(470,901)
Net Cash (Used in ) Provided by Investing Activities	(267,896)	5,076,719
Cash Flows from Financing Activities
Payments on notes payable	(857,421)	(5,902,274)
Proceeds from issuance of debt	163,491
Distributions to members and partners	(140,375)	(637,375)
Contributions to noncontrolling interest		303,783
Distributions to noncontrolling interest	(172,954)	(416,499)
Net Cash Used in Financing Activities	(1,007,259)	(6,652,365)
Net (Decrease) Increase in Cash and Cash Equivalents	(247,984)	66,618
Cash and Cash Equivalents, Beginning of Year	2,614,036	1,931,885
Cash and Cash Equivalents, End of Period	2,366,052	1,998,503
Supplemental Disclosure of Cash Flow Information Interest paid during the year	$ 2,130,894	$ 2,295,273

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Combined Balance Sheet Assets (Predecessor) (Ziegler Healthcare Real Estate Funds, USD $)	Jun. 30, 2013	Dec. 31, 2012
Ziegler Healthcare Real Estate Funds
Investment Properties
Medical office buildings (Net of accumulated depreciation of $16,524,238 as of June 30, 2013 and $15,118,553 as of December 31, 2012; includes $2,269,121 related to variable interest entity as of June 30, 2013, and $2,296,849 as of December 31, 2012)	$ 73,561,063	$ 74,758,961
Tenant improvements (Net of accumulated depreciation of $1,518,378 as of June 30, 2013 and $1,376,082 as of December 31, 2012)	3,673,771	3,755,956
Property under development (Related to a variable interest entity)	674,773	674,773
Land (includes $740,000 related to a variable interest entity as of June 30, 2013 and December 31, 2012)	15,463,667	15,463,667
Total Investment Properties	93,373,274	94,653,357
Cash and Cash Equivalents	2,366,052	2,614,036
Receivables-Tenant Receivables (Net of allowance for doubtful accounts of $132,149 as of June 30, 2013 and $104,627 as of December 31, 2012 )	556,783	682,402
Deferred Costs (Net of accumulated amortization of $1,331,438 as of June 30, 2013 and $1,380,327 as of December 31, 2012)	995,371	1,107,174
Intangibles (Net of accumulated amortization of $7,269,352 as of June 30, 2013 and $6,907,414 as of December 31, 2012)	4,880,948	5,242,886
Other Assets	4,110,478	3,292,239
Total Assets	106,282,906	107,592,094
Liabilities
Accounts payable to related parties	1,919,399	1,530,300
Accounts payable	644,114	801,941
Accrued expenses and other liabilities	1,271,998	1,031,083
Derivative liabilities	453,252	642,940
Notes payable (Includes $2,237,344 related to variable interest entities, as of June 30, 2013 and $2,702,184 as of December 31, 2012)	83,795,086	84,489,017
Total Liabilities	88,083,849	88,495,281
Ziegler Healthcare Real Estate Funds Owners' Equity
General interest	3,067	3,107
Limited interest	18,250,997	19,064,938
Funds Owners' Equity	18,254,064	19,068,045
Noncontrolling interest	(55,007)	28,768
Total Owners' Equity	18,199,057	19,096,813
Total Liabilities and Owners' Equity	$ 106,282,906	$ 107,592,094

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Subsequent Events

6 Months Ended

Jun. 30, 2013

Subsequent Events

Subsequent Events

Note 4—Subsequent Events

On July 24, 2013, the Trust completed the IPO by issuing 10,434,782 common shares at a public offering price of $11.50 per share and on August 7, 2013, the Trust issued an additional 1,318,815 common shares at the IPO price of $11.50 per share pursuant to the underwriters’ exercise of their overallotment option to purchase additional common shares pursuant to the underwriting agreement.  Total proceeds to the Trust for the IPO, including the underwriters’ overallotment, were approximately $123.8 million, after deducting underwriting discounts and offering costs.  The Trust contributed the net proceeds to the Operating Partnership in exchange for 81.4% of the common units of partnership interest in the Trust (“OP Units”).

In connection with the closing of the IPO, the Trust and the Operating Partnership completed related formation transactions pursuant to which the Operating Partnership acquired from four healthcare real estate funds managed by B.C. Ziegler & Company or Ziegler Healthcare Real Estate Management IV, LLC, each of which is wholly owned by The Ziegler Companies, Inc, the ownership interests in 19 medical office buildings located in ten states in exchange for an aggregate of 2,744,000 OP Units.

On August 21, 2013, we, through our Operating Partnership, entered into an Agreement of Sale and Purchase to acquire a post-acute care specialty hospital in Plano, Texas for $18.2 million.

On August 29, 2013, the Operating Partnership, as borrower, the Company and certain subsidiaries, entered into a $75.0 million senior secured revolving credit facility. Subject to the satisfaction of certain conditions, including additional lender commitments, the Operating Partnership has the option to increase the borrowing capacity under the revolving credit facility up to $250.0 million. The revolving credit facility has a three-year term with an initial maturity date of August 29, 2016. The Operating Partnership has the option to extend the term to August 29, 2017.  Borrowings under the senior secured revolving credit facility bear interest at rates generally between LIBOR plus 2.65% and LIBOR plus 3.40%.

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Related Party Transactions (Details) (Predecessor) (Ziegler Healthcare Real Estate Funds, USD $)			6 Months Ended		3 Months Ended		6 Months Ended		3 Months Ended		6 Months Ended
	Jun. 30, 2013	Dec. 31, 2012	Jun. 30, 2013 BCZ	Dec. 31, 2012 BCZ	Jun. 30, 2013 BCZ Management fees	Jun. 30, 2012 BCZ Management fees	Jun. 30, 2013 BCZ Management fees	Jun. 30, 2012 BCZ Management fees	Jun. 30, 2013 BCZ Other fees	Jun. 30, 2012 BCZ Other fees	Jun. 30, 2013 BCZ Other fees	Jun. 30, 2012 BCZ Other fees
Related party transactions
Annual management fee as a percentage of total capital commitments			2.00%
Fees charged					$ 237,700	$ 237,700	$ 475,400	$ 475,400	$ 6,995	$ 6,995	$ 13,991	$ 13,991
Management and other fees payable	$ 1,919,399	$ 1,530,300	$ 1,919,399	$ 1,530,300

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Organization and Nature of the Business (Details) (Predecessor) (Ziegler Healthcare Real Estate Funds, USD $)	6 Months Ended
	Jun. 30, 2013
Private capital commitments
Capital commitments	$ 47,566,000
Fund I
Private capital commitments
Capital commitments	15,100,000
Fund II
Private capital commitments
Capital commitments	17,800,000
Fund III
Private capital commitments
Capital commitments	9,050,000
Fund IV
Private capital commitments
Capital commitments	5,616,000
ZCO | Fund I
Private capital commitments
Capital contributed	1,000
ZCO | Fund II
Private capital commitments
Capital contributed	1,000
ZCO | Fund III
Private capital commitments
Capital contributed	1,000
Wholly owned subsidiary of ZCO | Fund IV
Private capital commitments
Capital contributed	$ 1,000

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Intangibles (Predecessor) (Ziegler Healthcare Real Estate Funds)

6 Months Ended

Jun. 30, 2013

Ziegler Healthcare Real Estate Funds

Intangibles

Intangibles

Note 3—Intangibles

Amortization expense related to intangibles was $371,203 for each of the six month periods ended June 30, 2013 and 2012. Amortization expense related to intangibles was $183,967 and $173,312 for the three months ended June 30, 2013 and 2012, respectively. Future amortization of the intangible assets as of June 30, 2013, is as follows:

Year Ending December 31:
2013	$	371,203
2014	695,068
2015	661,255
2016	648,520
2017	472,357
Thereafter	2,032,545
Total	$	4,880,948

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Combined Statements of Owner Equity (Predecessor) (Ziegler Healthcare Real Estate Funds, USD $)	Ziegler Healthcare Real Estate Funds USD ($)	Ziegler Healthcare Real Estate Funds Total Controlling Interest USD ($)	Ziegler Healthcare Real Estate Funds Non Controlling Interest USD ($)	Ziegler Healthcare Real Estate Funds General Interest USD ($)	Ziegler Healthcare Real Estate Funds Limited Interest USD ($)
Balance at Dec. 31, 2011	$ 22,611,972
Increase (Decrease) in stockholders' Equity
Net (loss) income	(567,643)
Balance at Jun. 30, 2012
Balance at Dec. 31, 2011	22,611,972	22,499,834	112,138	3,195	22,496,639
Increase (Decrease) in stockholders' Equity
Contributions		(105,432)	105,432	(7)	(105,425)
Distributions	(1,984,009)	(1,670,750)	(313,259)		(1,670,750)
Net (loss) income	(1,531,150)	(1,655,607)	124,457	(81)	(1,655,526)
Balance at Dec. 31, 2012	19,096,813	19,068,045	28,768	3,107	19,064,938
Increase (Decrease) in stockholders' Equity
Transfer		36,306	(36,306)		36,306
Distributions	(313,329)	(140,375)	(172,954)		(140,375)
Net (loss) income	(584,427)	(709,912)	125,485	(40)	(709,872)
Balance at Jun. 30, 2013	18,199,057	18,254,064	(55,007)	3,067	18,250,997
Balance at Mar. 31, 2013
Increase (Decrease) in stockholders' Equity
Net (loss) income	(283,075)
Balance at Jun. 30, 2013	$ 18,199,057

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Derivative Financial Instruments (Predecessor) (Ziegler Healthcare Real Estate Funds)

6 Months Ended

Jun. 30, 2013

Ziegler Healthcare Real Estate Funds

Derivative financial instruments

Derivative financial instruments

Note 6—Derivative Financial Instruments

The Ziegler Funds are exposed to certain risks in the normal course of its business operations. One risk relating to the variability of interest on variable rate debt is managed through the use of derivatives. All derivative financial instruments are reported in the balance sheet at fair value.

In particular, interest rate swaps, which are designated as cash flow hedges are used to manage the risk associated with interest rates on variable-rate borrowings.

Generally, the funds enter into hedging relationships such that changes in the fair value or cash flows of items and transactions being hedged are expected to be offset by corresponding changes in the values of the derivatives.

As of December 31, 2012, the Ziegler Funds held swaps to receive variable\pay fixed interest rates swaps with a total notional amount of $25,609,755, of which $17,441,821 expires in July 2013, with the remaining amount expiring in May 2016. As of June 30, 2013, the Ziegler Funds held swaps to receive variable/pay fixed interest rate swaps with a total notional amount of $23,326,511, of which $17,261,940 expires in July 2013, with the remaining amount expiring in May 2016. Gains recognized on the interest rate swaps of $115,307 and $31,955 were included in change in fair value of derivatives, net in the combined statements of operations for the three months ended June 30, 2013 and 2012, respectively and $189,688 and $58,138 for the six months ended June 30, 2013 and 2012, respectively.

Subsequent to June 30, 2013:

The variable/fixed interest rate swap with a notional amount of $17,261,940 expired on July 1, 2013.

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Notes Payable (Predecessor) (Ziegler Healthcare Real Estate Funds)

6 Months Ended

Jun. 30, 2013

Ziegler Healthcare Real Estate Funds

Notes payable

Notes payable

Note 4—Notes Payable

	June 30,		December 31,
	2013		2012
Michigan 6, mortgage loan due in July 2013; monthly payments of principal and interest of $26,535, with a final balloon payment of $2,449,329 due at the maturity date; interest rate of LIBOR plus 1.6% per annum, effective rate of 1.79% as of June 30, 2013.(4)	$	2,329,673	$	2,466,919
Georgia 7, mortgage loan due in June 2017; interest-only payments through June 2009, effective July 2009, monthly principal and interest payments of $39,890, with a final balloon payment of $5,869,275 due at the maturity date; interest rate of 5.942% per annum.	6,356,418		6,403,977
Arizona 23, mortgage loan due in October 2013; monthly payments principal and interest of $15,000 through October 2012; effective November 2012, monthly payments of principal and interest of $7,194, with a final balloon payment of $2,208,568 due at the maturity date; interest rate of LIBOR plus 3.25% per annum, effective rate of 3.44% as of June 30, 2013.(4)	2,237,344		2,280,508
Texas 8, mortgage loan due in October 2013; monthly payments of principal and interest of $8,171, with a final balloon payment of $2,012,853 due at the maturity date; interest rate of LIBOR plus 4% per annum, effective rate of 4.19% as of June 30, 2013.(4)	2,135,535		2,184,559
Georgia 6, mortgage loan due in October 2013; monthly payments of principal and interest of $4,224, with a final balloon payment of $1,090,963 due at the maturity date; interest rate of LIBOR plus 4% per annum, effective rate of 4.19% as of June 30, 2013.(4)	1,107,858		1,133,200
Michigan 5, mortgage loan due in October 2013; monthly payments of principal and interest of $5,106, with a final balloon payment of $835,927 due at the maturity date; interest rate of LIBOR plus 4% per annum, effective rate of 4.19% as of June 30, 2013.(4)	854,191		884,825
Georgia 21, mortgage loan due in July 2013; monthly payments and interest of $28,140 until June 2012, effective July 2012 monthly payment of principal and interest of $29,980, with a final balloon payment of $17,226,037 due at the maturity date; interest rate of LIBOR plus 3.05% per annum, effective rate of 3.24% as of June 30, 2013.(4)	17,224,530		17,404,410

	June 30,		December 31,
	2013		2012
Mezzanine loans payable to three private investors; monthly payments of interest only at an annual rate of 12%; due in July 2013. (4)	4,400,000		4,400,000
Summerfield, mortgage loan due in March 2012; monthly payments of interest only until March 2011; effective April 2011, monthly payments of principal and interest of $5,177; interest rate of 4.25% per annum.(1) (4)	359,031		325,706
Summerfield, $250,000 revolving line of credit due in March 2012; monthly payments of interest only until March 2011; effective April 2011, monthly payments of principal and interest of $8,000; interest rate of 4.25% per annum.(1)(4)	95,970		95,970
Tennessee 14, mortgage loan due June 2017; monthly payments of principal and interest of $66,081, with a final balloon payment of $9,820,300 due at the maturity date; interest rate of 5.81% per annum.	10,666,060		10,747,849
Michigan 12, mortgage loan due January 2017; monthly payments of principal and interest of $36,299, with a final balloon payment of $5,035,493 due at the maturity date; interest rate of 5.93% per annum. (4)	5,563,609		5,613,726
Maine 15, mortgage loan due June 2016; monthly payments of principal and interests of $33,160, with a final balloon payment of $7,639,025 due at the maturity date; interest rate of LIBOR plus 2.25%, effective rate of 2.44% as of June 30, 2013.	8,170,704		8,265,443
Illinois 12, mortgage loan due January 2018; monthly payments of principal and interest of $41,428, with a final balloon payment of $6,169,464 due at maturity; interest rate of 5.35% per annum.	6,815,452		6,847,333
Wisconsin 16, mortgage loan due September 2032 with an anticipated repayment date of September 2017, monthly payments of principal and interest of $20,741; interest rate of 6.58% per annum. If not repaid by anticipated repayment date, effective September 2017, monthly payments adjust based on the property’s cash flow (as defined in the agreement) with the interest rate becoming the greater of 8.58% or the 10 year U.S. treasury rate plus 3%.	2,856,851		2,885,864
Georgia 17, mortgage loan due October 2013, monthly payments of principal and interest of $9,250, with final balloon payment of $2,349,500 due at maturity date; interest rate of LIBOR plus 3.25%, effective rate of 3.44% as of June 30, 2013.(4)	2,377,250		2,432,750
Ohio 19, mortgage loan due February 2018, effective April 2011, monthly payments of principal and interest t $13,242; interest rate of 5.84% per annum. Effective March 2013 and every six months thereafter, the interest rate is subject to adjustment to LIBOR plus 2.4%, but will not exceed 11.31%.(4)	2,152,925		2,174,646
Georgia 20, mortgage loan due July 2013, monthly payments of principal and interest of $10,755, with final balloon payment of $1,617,519 due at maturity date; interest rate of 6.25% per annum.	1,618,812		1,631,947
Remington, mortgage loan due September 2017, monthly payments of principal and interest of $36,675, with a final balloon payment of $5,235,023 due at maturity date; interest rate of LIBOR plus 2.75%, effective rate of 2.94% as of June 30, 2013.(2)	6,472,873		6,309,385
Wisconsin 24, revolving bank line of credit due in August 2014; monthly payments of interest only; interest rate of LIBOR plus 3.25% per annum, effective rate of 3.44% as of June 30, 2013.(3)(4)	—		—
	$	83,795,086	$	84,489,017

(1) On January 24, 2013, Summerfield entered into a forbearance agreement with the lender regarding its mortgage note and outstanding line of credit, pursuant to which the lender agreed not to exercise its rights and remedies available under the forbearance agreement. The forbearance period extends through September 30, 2013, at which time the mortgage note and line of credit is due.

(2) The note was refinanced on September 18, 2012 with an effective date of September 28, 2012. Prior to the refinancing, the loan was payable in monthly payments of principal and interest of $23,468, at an interest rate of LIBOR plus 1.6%.

(3) The revolving line of credit is secured by the investment property owned by Wisconsin 24. Fund IV is contingently liable under certain circumstances for up to 100 percent of the borrowings under the revolving line of credit. As of June 30, 2013, the maximum available borrowings under this agreement were $1,180,000.

(4) On July 24, 2013, proceeds from the IPO were used to repay outstanding indebtedness on the following ten properties:

Property	Amount Repaid
Arizona 23 (Arrowhead Commons)	$	2,237,344
Georgia 20 (Austell Medical Office Building)	1,618,812
Georgia 17 (Decatur Medical Office Building)	2,377,250
Texas 8 (El Paso Medical Office Building)	2,135,535
Michigan 5 (Farmington Professional Pavilion)	854,191
Michigan 6 (Ingham Medical Center)	2,329,673
Ohio 19 (New Albany Professional Building)	2,152,925
Georgia 6 (Northpark Trail)	1,107,858
Summerfield Square	455,001
Georgia 21 (Summit Healthplex — Senior Debt)	17,224,530
Georgia 21 (Summit Healthplex — Mezzanine Debt)	4,400,000
	$	36,893,119

Scheduled principal payments due on notes payable as of June 30, 2013, are as follows:

Year Ending December 31:
2013	$	35,251,314
2014	1,054,578
2015	1,098,285
2016	8,624,861
2017	29,604,187
Thereafter	8,161,861
Total Payments	$	83,795,086

Mortgage loans are secured by the respective investment property owned by the borrower. The mortgage loans associated with Michigan 5, Michigan 6, Georgia 6, Georgia 7, Georgia 21, Arizona 23, and Texas 8 are partially guaranteed by Fund I. Fund I is contingently liable under certain circumstances for up to 100 percent of the outstanding mortgage loans.

Michigan 6 is currently in default with respect to the minimum debt service coverage ratio and minimum global debt service coverage ratio covenants as it relates to the mortgage loan on its property and has not obtained a waiver from the bank. Michigan 6 continues to remit all scheduled mortgage payments on a timely basis and management does not anticipate any adverse impact to the combined financial statements as a result of the noncompliance as no action has been taken by the lender to demand payment or exercise any other remedies or rights as stipulated in the loan agreement. Under the loan agreement for the Georgia 21 mortgage loan, Fund I is currently in default with respect to the minimum level of tangible net worth covenant and has not obtained a waiver from the lender. Georgia 21 continues to remit all scheduled mortgage payments on a timely basis and management does not anticipate any adverse impact to the combined financial statements as a result of the noncompliance as no action has been taken by the lender to demand payment or exercise any other remedies or rights as stipulated in the loan agreement. Georgia 21 is currently in compliance with its minimum debt service ratio covenant as of June 30, 2013.

Subsequent to June 30, 2013:

On July 24, 2013, in connection with the completion of the IPO and formation transactions, Physicians Realty L.P. repaid approximately $36.9 million of outstanding indebtedness on ten properties.

On August 29, 2013, the Operating Partnership, as borrower, the Company and certain subsidiaries, entered into a $75.0 million senior secured revolving credit facility. Subject to the satisfaction of certain conditions, including additional lender commitments, the Operating Partnership has the option to increase the borrowing capacity under the revolving credit facility up to $250.0 million. The revolving credit facility has a three-year term with an initial maturity date of August 29, 2016. The Operating Partnership has the option to extend the term to August 29, 2017.  Borrowings under the senior secured revolving credit facility bear interest at rates generally between LIBOR plus 2.65% and LIBOR plus 3.40%

XML

Document and Entity Information	6 Months Ended
	Jun. 30, 2013	Aug. 23, 2013
Document And Entity Information
Entity Registrant Name	Physicians Realty Trust
Entity Central Index Key	0001574540
Document Type	10-Q
Document Period End Date	Jun. 30, 2013
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	No
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		12,003,597
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q2

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Fair Value Measurements (Predecessor) (Ziegler Healthcare Real Estate Funds)

6 Months Ended

Jun. 30, 2013

Ziegler Healthcare Real Estate Funds

Fair value measurements

Fair value measurements

Note 5—Fair Value Measurements

Accounting standards require certain assets and liabilities be reported at fair value in the financial statements and provides a framework for establishing that fair value. The framework for determining fair value is based on a hierarchy that prioritizes the valuation techniques and inputs used to measure fair value.

In general, fair values determined by Level 1 inputs use quoted prices in active markets for identical assets or liabilities that the Funds have the ability to access. Fair values determined by Level 2 inputs use other inputs that are observable, either directly or indirectly. These Level 2 inputs include quoted prices for similar assets and liabilities in active markets, and other inputs such as interest rates and yield curves that are observable at commonly quoted intervals. Significant Level 2 inputs include interest rate swaps.

Level 3 inputs are unobservable inputs, including inputs that are available in situations where there is little, if any, market activity for the related asset. These level 3 fair value measurements are based primarily on management’s own estimates using pricing models, discounted cash flow methodologies, or similar techniques taking into account the characteristics of the asset.In instances where inputs used to measure fair value fall into different levels of the fair value hierarchy, fair value measurements in their entirety are categorized based on the lowest level input that is significant to the valuation. The Funds assessment of the significance of particular inputs to these fair value measurements requires judgment and considers factors specific to each asset or liability.

The Ziegler Funds measure their interest rate swaps at fair value on a recurring basis. The fair value of ($453,252) and $(642,940) as of June 30, 2013 and December 31, 2012, respectively, is based on primarily level 2 inputs described above.

The Ziegler Funds’ derivative instruments (Note 6) are not traded on an exchange. The Ziegler Funds obtained the fair value of the swaps from the counterparty. They then tested that fair value against a fair value determined by a methodology that included using the income approach to value the derivatives, using observable Level 2 market expectations at the measurement date and standard valuation techniques to convert future amounts to a single present amount (discounted) assuming that participants are motivated, but not compelled to transact. Level 2 inputs for the swap valuations were limited to quoted prices for similar assets or liabilities in active markets (specifically future contracts) and inputs other than quoted prices that were observable for the asset or liability (specifically LIBOR cash and swap rates, implied volatility for options, caps and floors, basis swap adjustments and credit risk at commonly quoted intervals). Mid-market pricing was used as a practical expedient for fair value measurements. Key inputs, including the cash rates for very short-term, futures rates and swap rates beyond the derivative maturities were bootstrapped to provide spot rates at resets specified by the swaps (reset rates were then further adjusted by the basis swaps, if necessary). Inputs were collected from Bloomberg as the last price on the last market day of the period. The same rates used to bootstrap the yield curves were used to discount the future cash flows prior to the credit risk effect for both the Ziegler Funds and the credit risk of its counterparty when determining the fair value of derivatives under generally accepted accounting principles. The fair values resulting from the separate calculations were not significantly different.

Both direct and indirect observable inputs may be used to determine the fair value of the positions classified as Level 2 assets and liabilities. As a result, the unrealized gains and losses for these asset and liabilities presented above may include changes in fair value that were attributable to both direct and indirect observable inputs. Changes in fair value of the interest rate swaps totaled $(115,307) and $(39,763) and $(189,688) and $(58,138) for the three and six months ended June 30, 2013 and 2012, respectively, and are included in the combined statement of operations. The fair value was obtained from the swaps’ counterparty. The following table sets forth by level within the fair value hierarchy the Ziegler Fund’s assets and liabilities that were accounted for on a nonrecurring basis as of December 31, 2012.

			Nonrecurring Fair Value Measurements At Report Date using:
	Fair Value as of December 31, 2012		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Gains (Losses) for the Year Ended December 31, 2012
Medical office buildings	$	3,588,594	$	—	$	—	$	3,588,594	$	(614,540	)
Land	1,210,406		—		—		1,210,406		(231,594		)
Property under development	674,773		—		—		674,773		(90,455		)
	$	5,473,773	$	—	$	—	$	5,473,773	$	(936,589	)

The impairment of the medical office buildings reference above mainly resulted from declines in current and projected operating results and cash flows of the properties. (See Note 2)  There were no fair value measurements on a nonrecurring basis as of June 30, 2013.

The following table summarizes the quantitative inputs and assumptions used for items categorized in Level 3 for the fair value hierarchy as of December 31, 2012. There were no changes in the quantitative inputs and assumptions used for items categorized in Level 3 for the fair hierarchy as of June 30, 2013. The disclosure below excludes information on unobservable inputs that are non-quantitative such as unadjusted prices from recent transactions or third party valuations.

Asset Category	Fair value at December 31, 2012		Valuation Techniques	Unobservable Inputs	Ranges
Investment in real estate properties	$	4,799,000	Discounted cash flow	Discount rate	10.7-13.5%
				Capitalization rate	7.7-10.5%
				Vacancy rate	9.41-17.8%
Property under development	$	674,773	Market comparable/ Discounted cash flow	Capitalization rate	9-10%

The carrying amounts of cash and cash equivalents, tenant receivables, payables, and accrued interest are reasonable estimates of fair value because of the short maturities of these instruments. Fair values for notes payable are estimates based on rates currently prevailing for similar instruments of similar maturities.

The following table presents the fair value of other financial instruments. The swaps are measured at fair value on a recurring basis.

	June 30,				December 31,
	2013				2012
	(unaudited)
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Notes payable(1)	$	83,795,086	$	84,655,255	$	84,489,017	$	86,982,366
Interest rate swaps—Liabilities	$	453,252	$	453,252	$	642,940	$	642,940

(1) For disclosure purposes only.