8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 2, 2018

PHYSICIANS REALTY TRUST

PHYSICIANS REALTY L.P.

(Exact name of registrant as specified in its charter)

Maryland (Physicians Realty Trust) Delaware (Physicians Realty L.P.)	001-36007 333-205034-01	46-2519850 80-0941870
(State or Other Jurisdiction of Incorporation or Organization)	(Commission File Number)	(I.R.S. Employer Identification No.)

309 N. Water Street, Suite 500 Milwaukee, Wisconsin  (Address of principal executive offices) 53202  (Zip Code)

Registrant’s telephone number, including area code: (414) 367-5600

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Physicians Realty Trust Emerging growth company o Physicians Realty L.P. Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. Physicians Realty Trust oPhysicians Realty L.P. o

Item 2.02. Results of Operations and Financial Condition.

On August 2, 2018, Physicians Realty Trust (the “Company”) issued a press release that announced operating results for its second quarter ended June 30, 2018. The press release refers to a supplemental information package that is available on the Company’s website (www.docreit.com), free of charge. Copies of the press release and supplemental information package have been furnished as Exhibits 99.1 and 99.2, respectively, to this Current Report, and are incorporated herein by reference.

The information included in this Current Report shall not be deemed “filed” for purposes of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and shall not be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing.

Item 9.01. Financial Statement and Exhibits.

(d)  Exhibits. 

99.1	Press Release, dated August 2, 2018, issued by Physicians Realty Trust
99.2	Supplemental Operating & Financial Information Second Quarter 2018

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned hereunto duly authorized.

Date:	August 2, 2018		PHYSICIANS REALTY TRUST
		By:	/s/ John T. Thomas
			John T. Thomas
			President and Chief Executive Officer

Date:	August 2, 2018		PHYSICIANS REALTY L.P.
			by: Physicians Realty Trust, its general partner
		By:	/s/ John T. Thomas
			John T. Thomas
			President and Chief Executive Officer

EXHIBIT INDEX

Exhibit No.	Description
99.1	Press Release, dated August 2, 2018, issued by Physicians Realty Trust
99.2	Supplemental Operating & Financial Information Second Quarter 2018

EX-99.1

Exhibit 99.1

PRESS RELEASE

Contact:

Physicians Realty Trust

John T. Thomas

President and CEO

(214) 549-6611

jtt@docreit.com

Jeffrey N. Theiler

Executive Vice President and CFO

(414) 367-5610

jnt@docreit.com

Physicians Realty Trust Reports Second Quarter 2018 Financial Results

Announces $0.28 Per Share of Normalized FFO for the Second Quarter of 2018

Announces Year-to-Date Disposition Activity of $220.3 Million, Second Quarter 2018 Acquisition Activity of $71.3 Million, and Year-to-Date Investment Activity of $179.1 Million

Second Quarter Highlights:

• Reported second quarter 2018 total revenue of $107.0 million, up 40% over the prior year period.

• Reported second quarter 2018 rental revenue of $80.4 million, up 39% over the prior year period.

• Generated second quarter net income per share and OP unit of $0.06 on a fully diluted basis, consistent with the same period last year.

• Generated second quarter normalized funds from operations (Normalized FFO) of $0.28 per share and OP unit on a fully diluted basis, up 16.7% year-over-year.

• Completed the acquisition of one healthcare property representing 231,486 square feet for $71.3 million.

• Completed the disposition of 15 healthcare properties representing 560,234 square feet for $90.7 million.

• Declared a quarterly dividend of $0.23 per share and OP unit for the second quarter 2018, paid July 18, 2018.

• Portfolio was 96.6% leased based on square footage as of June 30, 2018.

• Same-Store Cash Net Operating Income (Cash NOI) growth was 3.3% year-over-year.

• Net decrease to gross leasable square footage of 1.7% to 13,399,898 square feet across 249 healthcare properties (which excludes 17 assets classified as held for sale) as of June 30, 2018, from 13,625,726 square feet across 265 healthcare properties (which excluded 15 assets classified as held for sale) as of March 31, 2018.

Subsequent Events Highlights:

• On July 27, 2018, completed the disposition of 17 healthcare properties representing 462,714 square feet for approximately $127.1 million.

Milwaukee, WI - August 2, 2018 - Physicians Realty Trust (NYSE: DOC) (the “Company,” the “Trust,” “we,” “our” and “us”), a self-managed healthcare real estate investment trust, today announced results for the second quarter ended June 30, 2018.

John T. Thomas, President and Chief Executive Officer of the Trust, commented, “Physicians Realty Trust recently celebrated our 5th anniversary as a public company, and consistent with our 5-year track record of success, our team and relationships

delivered outstanding results during the second quarter of 2018. Consistent with our 2018 plans announced earlier this year, we have had an acute focus on improving the overall quality of our real estate assets, operating results, and relationships. So far this year we have accomplished all three, while also improving our balance sheet. Year-to-date we have completed $220.3 million of dispositions at favorable valuations while reinvesting $179.1 million of those proceeds to expand existing relationships in newer, higher quality facilities leased to strong credit tenants, while also reducing debt with the balance of the proceeds.”

“We will continue to be selective in deploying capital in this market, but remain very optimistic about our ability to continue to execute and grow in the years to come. We believe we have the best overall portfolio of medical office facilities in the United States, approaching 97% leased, almost 90% on-campus or affiliated with a health system, and over half of our rentable square feet directly leased to an investment-grade health system or affiliate. We look for a continuation of this strategy and execution during the second half of 2018, with the potential for more dispositions, selective investment, and an eagle-eye focus on operating performance,” Mr. Thomas continued.

“At Physicians Realty Trust, we ‘Invest in better.’ Consistent with our Mission and Vision, our ultimate goal is to help medical providers, patients and clients, and shareholders realize better healthcare, better communities, and better returns. We do this by offering broader and deeper healthcare expertise than any other REIT, by crafting solutions that benefit all parties, and by consistently executing for our long-standing industry relationships to source and sustain the highest quality properties and tenants in the industry,” Mr. Thomas concluded. To learn more, visit www.docreit.com/InvestInBetter.

Second Quarter Financial Results

Total revenue for the second quarter ended June 30, 2018 was $107.0 million, an increase of 40% from the same period in 2017. As of June 30, 2018, the portfolio was 96.6% leased, excluding assets classified as held for sale.

Total expenses for the second quarter 2018 were $92.3 million, an increase of 29% from the same period in 2017. The increase in expenses was primarily the result of a $9.6 million increase in depreciation and amortization, a $9.8 million increase in operating expenses, and a $5.7 million increase in interest expense.

Net income for the second quarter 2018 increased to $12.1 million, compared to net income of $10.3 million for the second quarter 2017, an increase of 17%.

Net income attributable to common shareholders for the second quarter 2018 was $11.3 million. Diluted earnings per share for the second quarter 2018 was $0.06 based on 187.4 million weighted average common shares and OP units outstanding.

Funds from operations (FFO) for the second quarter 2018 consisted of net income, plus $37.7 million of depreciation and amortization, plus $2.6 million of loss on sale of investment properties, less $0.4 million of other adjustments, resulting in $0.28 per share and OP unit on a fully diluted basis. Normalized FFO, which adjusts for net changes in fair value, was $51.9 million, or $0.28 per share and OP unit on a fully diluted basis.

Normalized funds available for distribution (FAD) for the second quarter 2018, which consists of normalized FFO adjusted for non-cash share compensation, straight-line rent adjustments, amortization of acquired above-market and below-market leases and assumed debt, amortization of lease inducements, amortization of deferred financing costs, and recurring capital expenditures, was $43.5 million.

Our same-store portfolio, which includes 207 properties representing approximately 72% of our net leasable square footage, generated year-over-year same-store NOI growth of 3.3% for the second quarter 2018. Same-store data for the second quarter 2018 excludes 23 assets slated for disposition and the Kennewick MOB.

The Company sold 15 medical office buildings located in three states for approximately $90.7 million.

Assets Slated for Disposition

We consider 23 properties in 8 states, representing an aggregate of approximately 782,984 square feet of gross leasable area, to be slated for disposition as of June 30, 2018. These assets include 17 assets classified as held for sale, which were sold on July 27, 2018, as discussed in the “Recent Disposition Activity” portion of this press release, and 6 additional properties which we believe no longer meet our core business strategy from a size, age, geography, or line of business perspective.

Other Recent Events

Dividend Paid

On June 21, 2018, our Board of Trustees authorized and declared a cash distribution of $0.23 per common share and OP Unit for the quarterly period ended June 30, 2018. The distribution was paid on July 18, 2018 to common shareholders and OP Unit holders of record as of the close of business on July 3, 2018.

Second Quarter Investment Activity

In the quarter ended June 30, 2018, the Company completed the acquisition of one operating healthcare property with approximately 231,486 net leasable square feet for an aggregate purchase price of $71.3 million that is expected to yield 6.0% during the first year of our investment.

Recent Disposition Activity

During the second quarter, and through the date of this press release, the Company completed the disposition of 32 properties in two separate portfolios, representing an aggregate 1,022,948 square feet for $217.8 million, at a 7.2% cap rate. The Company recognized an aggregate net gain of approximately $11.9 million. We believe disposing of these assets improves our portfolio quality by selling assets in smaller or underperforming markets, increasing our average building size, and increasing the average tenant credit. The proceeds will be redeployed into higher quality assets and used to reduce debt.

Conference Call Information

The Company has scheduled a conference call on Thursday, August 2, 2018, at 2:00 p.m. ET to discuss its financial performance and operating results for the second quarter ended June 30, 2018. The conference call can be accessed by dialing (877) 407-0784 from within the U.S. or (201) 689-8560 for international callers. Participants can reference the Physicians Realty Trust Second Quarter Earnings Call or passcode: 13680943. The conference call also will be available via a live listen-only webcast and can be accessed through the Investor Relations section of the Company’s website, www.docreit.com. A replay of the conference call will be available beginning August 2, 2018, at 5:00 p.m. ET until September 2, 2018, at 11:59 p.m. ET, by dialing (844) 512-2921 (U.S.) or (412) 317-6671 (International); passcode: 13680943. A replay of the webcast also will be accessible on the Investor Relations website for one year following the event. Beginning August 2, 2018, the Company’s supplemental information package for the second quarter 2018 will be accessible through the Investor Relations section of the Company’s website under the “Supplemental Information” tab.

About Physicians Realty Trust

Physicians Realty Trust is a self-managed healthcare real estate company organized to acquire, selectively develop, own and manage healthcare properties that are leased to physicians, hospitals and healthcare delivery systems. The Company invests in real estate that is integral to providing high quality healthcare. The Company conducts its business through an UPREIT structure in which its properties are owned by Physicians Realty L.P., a Delaware limited partnership (the “operating partnership”), directly or through limited partnerships, limited liability companies or other subsidiaries. The Company is the sole general partner of the operating partnership and, as of June 30, 2018, owned approximately 97.1% of the partnership interests in our operating partnership (“OP Units”).

Investors are encouraged to visit the Investor Relations portion of the Company’s website (www.docreit.com) for additional information, including annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, press releases, supplemental information packages and investor presentations.

Forward-Looking Statements

This press release contains statements that are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “anticipate”, “believe”, “expect”, “estimate”, “plan”, “outlook”, “continue”, and “project” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward looking statements may include statements regarding the Company’s strategic and operational plans, the Company’s ability to generate internal and external growth, the future outlook, anticipated cash returns, cap rates or yields on properties, anticipated closing of property acquisitions, and ability to execute its business plan. While forward-looking statements reflect our good faith beliefs, they are not guarantees of future performance. Forward looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward looking statements are based on information available at the time those statements are made and/or management’s good faith belief as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward looking statements. These forward-looking statements are subject to various risks and uncertainties, not all of which are known to the Company and many of which are beyond the Company’s control, which could cause actual results to differ materially from such statements. These risks and uncertainties are described in greater detail in the Company’s filings with the Securities and Exchange Commission (the “Commission”), including, without limitation, the Company’s annual and periodic reports and other documents filed with the Commission. Unless legally required, the Company disclaims any obligation to update any forward-looking statements after the date of this release, whether as a result of new information, future events or otherwise. For a description of factors that may cause the Company’s actual results or performance to differ from its forward-looking statements, please review the information under the heading “Risk Factors” included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2017 filed by the Company with the Commission on March 1, 2018 and

in the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2018 filed by the Company with the

Commission on May 4, 2018.

Source: Physicians Realty Trust

Physicians Realty Trust

Condensed Consolidated Statements of Income

(in thousands, except share and per share data)

	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
Revenues:
Rental revenues	$	80,392		$	58,015		$	159,279		$	117,107
Expense recoveries	24,288			16,108			48,596			32,462
Interest income on real estate loans and other	2,309			2,476			4,337			3,696
Total revenues	106,989			76,599			212,212			153,265
Expenses:
Interest expense	17,154			11,472			33,648			21,287
General and administrative	7,104			6,249			15,563			10,985
Operating expenses	30,341			20,519			60,800			42,608
Depreciation and amortization	37,725			28,123			76,301			56,056
Acquisition expenses	—			5,242			—			10,647
Total expenses	92,324			71,605			186,312			141,583
Income before equity in income of unconsolidated entities and (loss) gain on sale of investment properties:	14,665			4,994			25,900			11,682
Equity in income of unconsolidated entities	29			29			57			57
(Loss) gain on sale of investment properties	(2,632		)	5,308			(2,563		)	5,308
Net income	12,062			10,331			23,394			17,047
Net income attributable to noncontrolling interests:
Operating Partnership	(331		)	(314		)	(644		)	(461		)
Partially owned properties	(144		)	(159		)	(255		)	(326		)
Net income attributable to controlling interests	11,587			9,858			22,495			16,260
Preferred distributions	(284		)	(188		)	(771		)	(399		)
Net income attributable to common shareholders	$	11,303		$	9,670		$	21,724		$	15,861
Net income per share:
Basic	$	0.06		$	0.06		$	0.12		$	0.11
Diluted	$	0.06		$	0.06		$	0.12		$	0.11
Weighted average common shares:
Basic	182,002,062			155,366,080			181,906,348			147,221,602
Diluted	187,431,132			161,012,360			187,387,211			151,912,432
Dividends and distributions declared per common share and OP Unit	$	0.230		$	0.230		$	0.460		$	0.455

Physicians Realty Trust

Condensed Consolidated Balance Sheets

(in thousands, except share and per share data)

	June 30, 2018			December 31, 2017
ASSETS
Investment properties:
Land and improvements	$	201,620		$	217,695
Building and improvements	3,546,101			3,568,858
Tenant improvements	28,091			23,056
Acquired lease intangibles	446,127			458,713
	4,221,939			4,268,322
Accumulated depreciation	(339,003		)	(300,458		)
Net real estate property	3,882,936			3,967,864
Real estate held for sale	111,411			—
Real estate loans receivable	68,151			76,195
Investments in unconsolidated entities	1,329			1,329
Net real estate investments	4,063,827			4,045,388
Cash and cash equivalents	9,226			2,727
Tenant receivables, net	5,439			9,966
Other assets	139,773			106,302
Total assets	$	4,218,265		$	4,164,383
LIABILITIES AND EQUITY
Liabilities:
Credit facility	$	459,262		$	324,394
Notes payable	966,586			966,603
Mortgage debt	139,748			186,471
Accounts payable	5,012			11,023
Dividends and distributions payable	43,357			43,804
Accrued expenses and other liabilities	66,115			56,405
Acquired lease intangibles, net	14,881			15,702
Total liabilities	1,694,961			1,604,402
Redeemable noncontrolling interest - Series A Preferred Units (2018) and partially owned properties	23,879			12,347
Equity:
Common shares, $0.01 par value, 500,000,000 common shares authorized, 182,027,309 and 181,440,051 common shares issued and outstanding as of June 30, 2018 and December 31, 2017, respectively	1,820			1,814
Additional paid-in capital	2,781,867			2,772,823
Accumulated deficit	(376,170		)	(315,417		)
Accumulated other comprehensive income	19,571			13,952
Total shareholders’ equity	2,427,088			2,473,172
Noncontrolling interests:
Operating Partnership	71,712			73,844
Partially owned properties	625			618
Total noncontrolling interests	72,337			74,462
Total equity	2,499,425			2,547,634
Total liabilities and equity	$	4,218,265		$	4,164,383

Physicians Realty Trust

Reconciliation of Non-GAAP Measures

(in thousands, except share and per share data)

	Three Months Ended June 30,
	2018			2017
Net income	$	12,062		$	10,331
Earnings per share - diluted	$	0.06		$	0.06
Net income	12,062			10,331
Net income attributable to noncontrolling interests - partially owned properties	(144		)	(159		)
Preferred distributions	(284		)	(188		)
Depreciation and amortization expense	37,687			28,098
Depreciation and amortization expense - partially owned properties	(11		)	(129		)
Loss (gain) on the sale of investment properties	2,632			(5,308		)
FFO applicable to common shares and OP Units	$	51,942		$	32,645
FFO per common share and OP Unit	$	0.28		$	0.20
Net change in fair value of derivative	(10		)	4
Acquisition expenses	—			5,242
Net change in fair value of contingent consideration	(50		)	—
Normalized FFO applicable to common shares and OP Units	$	51,882		$	37,891
Normalized FFO per common share and OP Unit	$	0.28		$	0.24
Normalized FFO applicable to common shares and OP Units	51,882			37,891
Non-cash share compensation expense	2,014			1,324
Straight-line rent adjustments	(6,150		)	(2,097		)
Amortization of acquired above/below-market leases/assumed debt	980			844
Amortization of lease inducements	345			311
Amortization of deferred financing costs	597			579
TI/LC and recurring capital expenditures	(6,213		)	(4,865		)
Seller master lease and rent abatement payments	—			244
Normalized FAD applicable to common shares and OP Units	$	43,455		$	34,231
Weighted average number of common shares and OP Units outstanding	187,431,132			161,012,360

	Three Months Ended June 30,
	2018			2017
Net income	$	12,062		$	10,331
General and administrative	7,104			6,249
Acquisition expenses	—			5,242
Depreciation and amortization	37,725			28,123
Interest expense	17,154			11,472
Net change in the fair value of derivative	(10		)	4
Loss (gain) on sale of investment property	2,632			(5,308		)
NOI	$	76,667		$	56,113
NOI	$	76,667		$	56,113
Straight-line rent adjustments	(6,150		)	(2,097		)
Amortization of acquired above/below-market leases/assumed debt	980			844
Amortization of lease inducements	345			311
Seller master lease and rent abatement payments	—			244
Change in fair value of contingent consideration	(50		)	—
Cash NOI	$	71,792		$	55,415

	Three Months Ended June 30,
	2018			2017
Net income	$	12,062		$	10,331
Depreciation and amortization	37,725			28,123
Interest expense	17,154			11,472
Loss (gain) on sale of investment property	2,632			(5,308		)
EBITDAre	$	69,573		$	44,618
Acquisition expenses	—			5,242
Non-cash share compensation expense	2,014			1,324
Non-cash changes in fair value	(60		)	4
Adjusted EBITDAre	$	71,527		$	51,188

This press release includes Funds From Operations (FFO), Normalized FFO, Normalized Funds Available For Distribution (FAD), Net Operating Income (NOI), Cash NOI, Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (EBITDAre) and Adjusted EBITDAre, which are non-GAAP financial measures. For purposes of the SEC’s Regulation G, a non-GAAP financial measure is a numerical measure of a company’s historical or future financial performance, financial position or cash flows that excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable financial measure calculated and presented in accordance with GAAP in the statement of operations, balance sheet or statement of cash flows (or equivalent statements) of the company, or includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable financial measure so calculated and presented. As used in this press release, GAAP refers to generally accepted accounting principles in the United States of America. Pursuant to the requirements of Regulation G, we have provided reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures.

We believe that information regarding FFO is helpful to shareholders and potential investors because it facilitates an understanding of the operating performance of our properties without giving effect to real estate depreciation and amortization, which assumes that the value of real estate assets diminishes ratably over time. We calculate FFO in accordance with standards established by the National Association of Real Estate Investment Trusts (“NAREIT”). NAREIT defines FFO as net income or loss (computed in accordance with GAAP) before noncontrolling interests of holders of OP units, excluding preferred distributions, gains (or losses) on sales of depreciable operating property, impairment write-downs on depreciable assets, plus real estate related depreciation and amortization (excluding amortization of deferred financing costs). Our FFO computation may not be comparable to FFO reported by other REITs that do not compute FFO in accordance with NAREIT definition or

that interpret the NAREIT definition differently than we do. The GAAP measure that we believe to be most directly comparable to FFO, net income, includes depreciation and amortization expenses, gains or losses on property sales, impairments, and noncontrolling interests. In computing FFO, we eliminate these items because, in our view, they are not indicative of the results from the operations of our properties. To facilitate a clear understanding of our historical operating results, FFO should be examined in conjunction with net income (determined in accordance with GAAP) as presented in our financial statements. FFO does not represent cash generated from operating activities in accordance with GAAP, should not be considered to be an alternative to net income or loss (determined in accordance with GAAP) as a measure of our liquidity and is not indicative of funds available for our cash needs, including our ability to make cash distributions to shareholders.

We use Normalized FFO, which excludes from FFO net change in fair value of derivative financial instruments, acquisition expenses, acceleration of deferred financing costs, change in fair value of contingent consideration, and other normalizing items. However, our use of the term Normalized FFO may not be comparable to that of other real estate companies as they may have different methodologies for computing this amount. Normalized FFO should not be considered as an alternative to net income or loss (computed in accordance with GAAP), as an indicator of our financial performance or of cash flow from operating activities (computed in accordance with GAAP), or as an indicator of our liquidity, nor is it indicative of funds available to fund our cash needs, including our ability to make distributions. Normalized FFO should be reviewed in connection with other GAAP measurements.

We define Normalized FAD, a non-GAAP measure, which excludes from Normalized FFO non-cash share compensation expense, straight-line rent adjustments, amortization of acquired above- or below-market leases and assumed debt, amortization of lease inducements, amortization of deferred financing costs, and recurring capital expenditures related to tenant improvements and leasing commissions, and includes cash payments from seller master leases and rent abatement payments. Other REITs or real estate companies may use different methodologies for calculating Normalized FAD, and accordingly, our computation may not be comparable to those reported by other REITs. Although our computation of Normalized FAD may not be comparable to that of other REITs, we believe Normalized FAD provides a meaningful supplemental measure of our performance due to its frequency of use by analysts, investors, and other interested parties in the evaluation of our performance as a REIT. Normalized FAD should not be considered as an alternative to net income or loss attributable to controlling interest (computed in accordance with GAAP) or as an indicator of our financial performance. Normalized FAD should be reviewed in connection with other GAAP measurements.

NOI is a non-GAAP financial measure that is defined as net income or loss, computed in accordance with GAAP, generated from our total portfolio of properties before general and administrative expenses, acquisition-related expenses, depreciation and amortization expense, interest expense, net change in the fair value of derivative financial instruments, gain or loss on the sale of investment properties, and impairment losses. We believe that NOI provides an accurate measure of operating performance of our operating assets because NOI excludes certain items that are not associated with management of the properties. Our use of the term NOI may not be comparable to that of other real estate companies as they may have different methodologies for computing this amount.

Cash NOI is a non-GAAP financial measure which excludes from NOI straight-line rent adjustments, amortization of acquired above and below market leases, and other non-cash and normalizing items. Other non-cash and normalizing items include items such as the amortization of lease inducements, payments received from seller master leases and rent abatements, and changes in fair value of contingent consideration. We believe that Cash NOI provides an accurate measure of the operating performance of our operating assets because it excludes certain items that are not associated with management of the properties. Additionally, we believe that Cash NOI is a widely accepted measure of comparative operating performance in the real estate community. Our use of the term Cash NOI may not be comparable to that of other real estate companies as such other companies may have different methodologies for computing this amount.

We define EBITDAre as net income or loss computed in accordance with GAAP plus depreciation and amortization, interest expense, loss (gain) on dispositions, and impairment loss on depreciated property. We define Adjusted EBITDAre as net income or loss computed in accordance with GAAP plus depreciation and amortization, interest expense, loss (gain) on dispositions, impairment loss on depreciated property, acquisition expenses, non-cash share compensation expense, non-cash changes in fair value, and other normalizing items. We consider EBITDAre and Adjusted EBITDAre important measures because they provide additional information to allow management, investors, and our current and potential creditors to evaluate and compare our core operating results and our ability to service debt.

EX-99.2

Exhibit 99.2 June 2018 HMG Medical Plaza Kingsport, TN SUPPLEMENTAL OPERATING & FINANCIAL INFORMATION SECOND QUARTER 2018 PHYSICIANS REALTY TRUST NYSE: DOC Gwinnett 500 MOB Lawrenceville, GA

TABLE OF CONTENTS COMPANY OVERVIEW ABOUT PHYSICIANS REALTY TRUST 4 SECOND QUARTER HIGHLIGHTS 6 FINANCIAL HIGHLIGHTS 7 FINANCIAL INFORMATION RECONCILIATION OF NON-GAAP MEASURES: FUNDS FROM OPERATIONS (FFO), NORMALIZED FUNDS FROM OPERATIONS (NORMALIZED FFO), AND NORMALIZED FUNDS AVAILABLE FOR DISTRIBUTION (NORMALIZED FAD)  8 RECONCILIATION OF NON-GAAP MEASURES: NET OPERATING INCOME AND ADJUSTED EBITDAre 9 MARKET CAPITALIZATION AND DEBT SUMMARY 10 FINANCIAL STATISTICS AND COVENANT PERFORMANCE 11 SAME-STORE PORTFOLIO PERFORMANCE AND TENANT OCCUPANCY 12 INVESTMENT ACTIVITY AND ASSETS SLATED FOR DISPOSITION 13 PORTFOLIO GEOGRAPHIC DISTRIBUTION 14 PORTFOLIO DIVERSIFICATION 15 LEASING RELATIONSHIPS AND EXPIRATION SCHEDULE 16 CONSOLIDATED BALANCE SHEETS 17 CONSOLIDATED STATEMENTS OF INCOME 18 REPORTING DEFINITIONS 19 2

FORWARD-LOOKING STATEMENTS   Certain statements made in this supplemental information package constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (set forth in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)). In particular, statements pertaining to our capital resources, portfolio performance and results of operations contain forward-looking statements. Likewise, our pro forma financial statements and our statements regarding anticipated market conditions are forward-looking statements. You can identify forward-looking statements by the use of forward-looking terminology such as "believes,” “expects,” “may,” “will,” “should,” “seeks,” “approximately,” “intends,” “plans,” "outlook," "continue," "projects," “pro forma,” “estimates” or “anticipates” or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not relate solely to historical matters. You can also identify forward-looking statements by discussions of strategy, plans, expectations or intentions. Forward-looking statements reflect the views of our management regarding current expectations and projections about future events and are based on currently available information. These forward-looking statements are not guarantees of future performance and involve numerous risks and uncertainties and you should not rely on them as predictions of future events. Forward-looking statements depend on assumptions, data or methods which may be incorrect or imprecise and we may not be able to realize them. While forward-looking statements reflect our good faith beliefs, they are not guarantees of future performance. We disclaim any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes after the date of this supplemental information package, except as required by applicable law. You should not place undue reliance on any forward-looking statements that are based on information currently available to us or the third parties making the forward-looking statements. For a discussion of factors that could impact our future results, performance or transactions, see Part I, Item 1A (Risk Factors) of our Annual Report on Form 10- K for the fiscal year ended December 31, 2017, and Part II, Item 1A (Risk Factors) of our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2018.   NON-GAAP FINANCIAL MEASURES This presentation includes Adjusted EBITDAre, EBITDAR, Net Operating Income (or NOI), Cash NOI, Funds From Operations (or FFO), Normalized FFO, and Normalized Funds Available For Distribution (or FAD), which are non-GAAP financial measures. For purposes of the Securities and Exchange Commission’s (“SEC”) Regulation G, a non-GAAP financial measure is a numerical measure of a company’s historical or future financial performance, financial position or cash flows that excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable financial measure calculated and presented in accordance with GAAP in the statement of operations, balance sheet or statement of cash flows (or equivalent statements) of the company, or includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable financial measure so calculated and presented. As used in this presentation, GAAP refers to generally accepted accounting principles in the United States of America. Our use of the non- GAAP financial measure terms herein may not be comparable to that of other real estate investment trusts. Pursuant to the requirements of Regulation G, we have provided reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures. ADDITIONAL INFORMATION   The information in this supplemental information package should be read in conjunction with the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, earnings press release dated August 2, 2018 and other information filed with, or furnished to, the SEC. You can access the Company’s reports and amendments to those reports filed or furnished to the SEC pursuant to Section 13(a) or 15(d) of the Exchange Act in the “Investor Relations” section on the Company’s website (www.docreit.com) under the tab “SEC Filings” as soon as reasonably practicable after they are filed with, or furnished to, the SEC. The information on or connected to the Company’s website is not, and shall not be deemed to be, a part of, or incorporated into this supplemental information package. You also can review these SEC filings and other information by accessing the SEC’s website at http://www.sec.gov. 3

ABOUT PHYSICIANS REALTY TRUST   Physicians Realty Trust (NYSE:DOC) (the “Trust,” the “Company,” “DOC,” “we,” “our” and “us”) is a self-managed healthcare real estate company organized in 2013 to acquire, selectively develop, own, and manage healthcare properties that are leased to physicians, hospitals and healthcare delivery systems.   We invest in real estate that is integral to providing high quality healthcare services. Our properties typically are on a campus with a hospital or other healthcare facilities or strategically located and affiliated with a hospital or other healthcare facilities.   Our management team has significant public healthcare REIT experience and long established relationships with physicians, hospitals and healthcare delivery system decision makers that we believe will provide quality investment opportunities to generate attractive risk-adjusted returns to our shareholders.   We are a Maryland real estate investment trust and elected to be taxed as a REIT for U.S. federal income tax purposes beginning with our short taxable year ending December 31, 2013. We conduct our business through an UPREIT structure in which our properties are owned by Physicians Realty L.P., a Delaware limited partnership (the “operating partnership”), directly or through limited partnerships, limited liability companies or other subsidiaries. We are the sole general partner of the operating partnership and, as of June 30, 2018, own approximately 97.1% of the partnership interests in the operating partnership (“OP Units”). COMPANY SNAPSHOT As of June 30, 2018 Gross real estate investments (thousands) $ 4,387,949 Total healthcare properties (1) 249 % Leased (1) 96.6% Total portfolio gross leasable area (sq. ft.) (1) 13,399,898 % of GLA on-campus / affiliated (1) 89% Average remaining lease term for all buildings (years) (1) 8.4 Cash and cash equivalents (thousands) $ 9,226 Total debt to firm value 34.4% Weighted average interest rate per annum on consolidated debt 3.9% Equity market cap (thousands) $ 2,901,515 Quarterly dividend $ 0.23 Quarter end stock price $ 15.94 Dividend yield 5.77% Common shares outstanding 182,027,309 OP Units outstanding and not owned by DOC 5,392,234 Total firm value (thousands) $ 4,590,218 (1) Excludes 17 assets classified as held for sale and the Company's corporate office building. 4

ABOUT PHYSICIANS REALTY TRUST (CONTINUED) BOARD OF TRUSTEES Tommy G. Thompson John T. Thomas Chairman Chief Executive Officer President Stanton D. Anderson Mark A. Baumgartner Albert C. Black Compensation Committee Chair Audit Committee Chair Nominating and Corporate Governance Committee Chair William A. Ebinger, M.D. Pamela J. Kessler Richard A. Weiss Trustee Trustee Finance and Investment Committee Chair MANAGEMENT TEAM John T. Thomas Chief Executive Officer President Jeffrey N. Theiler D. Deeni Taylor John W. Lucey Executive Vice President Executive Vice President Senior Vice President Chief Financial Officer Chief Investment Officer Chief Accounting and Administrative Officer Bradley D. Page Daniel M. Klein Mark D. Theine Senior Vice President Senior Vice President Senior Vice President General Counsel Deputy Chief Investment Officer Asset & Investment Management LOCATION AND CONTACT INFORMATION Corporate Headquarters Independent Registered Corporate and REIT Tax Counsel 309 N. Water Street, Seventh Floor Public Accounting Firm Baker & McKenzie LLP Milwaukee, WI 53202 Ernst & Young Richard Lipton, Partner (414) 367-5600 Chicago, IL 60606 Chicago, IL 60601 (312) 879-2000 (312) 861-8000 COVERING ANALYSTS J. Sanabria - Bank of America Merrill Lynch J. Sadler - Keybanc Capital Markets Inc. J. Kim - BMO Capital Markets Corp. V. Malhotra - Morgan Stanley M. Gorman - BTIG J. Hughes - Raymond James Financial Inc. J. France - Cantor Fitzgerald M. Carroll - RBC Capital Markets LLC D. Bernstein - Capital One Securities D. Babin - Robert W. Baird & Co. C. Kucera - FBR Capital C. Vanacore - Stifel T. Okusanya - Jefferies LLC E. Fleming - SunTrust Robinson Humphrey P. Martin - JMP Securities The equity analysts listed above are those analysts that have published research material on the Company and are listed as covering the Company. Please note that any opinions, estimates, or forecasts regarding the Company's performance made by the analysts listed above do not represent the opinions, estimates, or forecasts of Physicians Realty Trust or its management. The Company does not by its reference above imply its endorsement of or concurrence with any information, conclusions or recommendations made by any of such analysts. Interested persons may obtain copies of analysts' reports on their own, as we do not distribute these reports. Several of these firms may, from time to time, own our stock and/or hold other long or short positions on our stock, and may provide compensated services to us. 5

SECOND QUARTER 2018 HIGHLIGHTS OPERATING HIGHLIGHTS • Second quarter 2018 total revenue of $107.0 million, up 40% over the prior year period • Second quarter 2018 rental revenue of $80.4 million, up 39% over the prior year period • Generated quarterly net income per share of $0.06 on a fully diluted basis • Generated quarterly normalized funds from operations (Normalized FFO) of $0.28 per share on a fully diluted basis • Completed the acquisition of one healthcare property representing 231,486 square feet for $71.3 million • Completed the disposition of 15 healthcare properties representing 560,234 square feet for $90.7 million • Declared quarterly dividend of $0.23 per share for the second quarter • 96.6% of portfolio square footage leased as of June 30, 2018 • Net decrease to gross leasable square footage of 1.7% to 13,399,898 square feet across 249 healthcare properties (which excludes 17 assets classified as held for sale) as of June 30, 2018, from 13,625,726 square feet across 265 healthcare properties (which excluded 15 assets classified as held for sale) as of March 31, 2018. SECOND QUARTER INVESTMENT ACTIVITY SUBSEQUENT INVESTMENT ACTIVITY • HMG Medical Plaza, Kingsport, TN • Sale of July 2018 Disposition Portfolio • Sale of June 2018 Disposition Portfolio COMPANY ANNOUNCEMENTS • June 21, 2018: Announced that our Board of Trustees authorized and declared a cash distribution of $0.23 per common share and OP Unit for the quarterly period ended June 30, 2018. The distribution was paid on July 18, 2018 to common shareholders and OP Unit holders of record as of the close of business on July 3, 2018. Meadowview MOB Monterey Medical Center MOB Kingsport, TN Stuart, FL 6

FINANCIAL HIGHLIGHTS (Unaudited and in thousands, except sq. ft. and per share data) INCOME Three Months Ended June 30, 2018 March 31, 2018 Revenues $ 106,989 $ 105,223 Net income 12,062 11,332 NOI 76,667 74,794 Annualized Adjusted EBITDAre 286,108 275,760 Net income available to common shareholders per common share $ 0.06 $ 0.06 Normalized FFO 51,882 49,031 Normalized FFO per common share and OP Unit $ 0.28 $ 0.26 Normalized FAD 43,455 43,049 CAPITALIZATION As of ASSETS June 30, 2018 March 31, 2018 Gross Real Estate Investments (including gross lease intangibles) 4,387,949 4,413,871 Total Assets 4,218,265 4,257,007 DEBT AND EQUITY Total Debt (1) 1,578,871 1,601,522 Total Equity 2,499,425 2,527,260 Equity Market Capitalization 2,901,515 2,832,864 Total Firm Value 4,590,218 4,543,200 Total Debt / Total Firm Value 34.4% 35.3% (1) Unadjusted for unamortized fair value adjustments, unamortized discount, and unamortized deferred financing costs. Portfolio Growth Since IPO $4,387,949 $4,500,000 14,000,000 $4,000,000 s t 12,000,000 n e $3,500,000 m t s 10,000,000 e $3,000,000 v F n I 8,000,000 S e $2,500,000 n t i a t s A E $2,000,000 6,000,000 L l G a e $1,500,000 R s 4,000,000 s o $1,000,000 r G 2,000,000 $500,000 $123,998 $0 0 IP Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q O 3- 4- 1- 2- 3- 4- 1- 2- 3- 4- 1- 2- 3- 4- 1- 2- 3- 4- 1- 2- 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 13 13 14 14 14 14 15 15 15 15 16 16 16 16 17 17 17 17 18 18 Gross Real Estate Assets Gross Real Estate Investments/Quarter Total Healthcare Property GLA 7

RECONCILIATION OF NON-GAAP MEASURES: FUNDS FROM OPERATIONS (FFO), NORMALIZED FUNDS FROM OPERATIONS (NORMALIZED FFO) AND NORMALIZED FUNDS AVAILABLE FOR DISTRIBUTION (NORMALIZED FAD) (Unaudited and in thousands, except share and per share data) Three Months Ended Six Months Ended June 30, 2018 June 30, 2018 Net income $ 12,062 $ 23,394 Net income attributable to NCI - partially owned properties (144) (255) Preferred distributions (284) (771) Depreciation and amortization expense 37,687 76,217 Depreciation and amortization expense - partially owned properties (11) (177) Loss on the sale of investment properties 2,632 2,563 FFO applicable to common shares and OP Units $ 51,942 $ 100,971 FFO per common share and OP Unit $ 0.28 $ 0.54 Net change in fair value of derivative (10) (8) Net change in fair value of contingent consideration (50) (50) Normalized FFO applicable to common shares and OP Units $ 51,882 $ 100,913 Net income available to common shareholders per common share and OP Unit $ 0.06 $ 0.12 Normalized FFO per common share and OP Unit $ 0.28 $ 0.54 Normalized FFO applicable to common shares and OP Units 51,882 100,913 Non-cash share compensation expense 2,014 4,619 Straight-line rent adjustments (6,150) (12,600) Amortization of acquired above/below market leases/assumed debt 980 1,810 Amortization of lease inducements 345 689 Amortization of deferred financing costs 597 1,215 TI/LC and recurring capital expenditures (6,213) (10,371) Seller master lease and rent abatement payments — 229 Normalized FAD applicable to common shares and OP Units $ 43,455 $ 86,504 Weighted average number of common shares and OP Units outstanding 187,431,132 187,387,211 8

RECONCILIATION OF NON-GAAP MEASURES: NET OPERATING INCOME AND ADJUSTED EBITDAre (Unaudited and in thousands) Three Months Ended Six Months Ended NET OPERATING INCOME June 30, 2018 June 30, 2018 Net income $ 12,062 $ 23,394 General and administrative 7,104 15,563 Depreciation and amortization expense 37,725 76,301 Interest expense 17,154 33,648 Net change in fair value of derivative (10) (8) Loss on sale of investment properties 2,632 2,563 NOI $ 76,667 $ 151,461 NOI $ 76,667 $ 151,461 Straight-line rent adjustments (6,150) (12,600) Amortization of acquired above/below market leases 980 1,810 Amortization of lease inducements 345 689 Seller master lease and rent abatement payments — 229 Net change in fair value of contingent consideration (50) (50) Cash NOI $ 71,792 $ 141,539 Three Months Ended Six Months Ended ADJUSTED EBITDAre June 30, 2018 June 30, 2018 Net income $ 12,062 $ 23,394 Depreciation and amortization 37,725 76,301 Interest expense 17,154 33,648 Loss on sale of investment properties 2,632 2,563 EBITDAre $ 69,573 $ 135,906 Non-cash share compensation expense 2,014 4,619 Net non-cash changes in fair value (60) (58) Adjusted EBITDAre $ 71,527 $ 140,467 Adjusted EBITDAre Annualized* $ 286,108 $ 280,934 * Amounts are annualized and actual amounts may differ significantly from the annualized amounts shown. 9

MARKET CAPITALIZATION AND DEBT SUMMARY (Unaudited and in thousands, except share and per share data) MARKET CAPITALIZATION June 30, 2018 Unsecured credit facility debt $ 464,000 Debt is 34% of Firm Value Unsecured notes 975,000 Mortgage debt 139,871 Total Debt (1) $ 1,578,871 Redeemable equity $ 23,879 Share price $ 15.94 Total common shares outstanding 182,027,309 Total OP Units outstanding 5,392,234 Implied equity market capitalization $ 2,987,468 Total Firm Value (Debt + Pref. + Equity) $ 4,590,218 Debt Equity Total Debt/Total Assets 37.4% Total Debt/Total Firm Value 34.4% (1) Balance as of DEBT SUMMARY June 30, 2018 Interest Rate Maturity Date Revolving Credit Facility Debt $ 214,000 3.3 % 9/18/2020 Credit Facility Term Debt 250,000 2.9 % 6/10/2023 Senior Unsecured Notes January '16 - Series A 15,000 4.0 % 1/7/2023 January '16 - Series B 45,000 4.4 % 1/7/2026 January '16 - Series C 45,000 4.6 % 1/7/2028 January '16 - Series D 45,000 4.7 % 1/7/2031 August '16 - Series A 25,000 4.1 % 8/11/2025 August '16 - Series B 25,000 4.2 % 8/11/2026 August '16 - Series C 25,000 4.2 % 8/11/2027 March '17 400,000 4.3 % 3/15/2027 December '17 350,000 4.0 % 1/15/2028 Mortgage Debt, Maturing (2): 2018 6,821 4.3 % 2019 18,750 5.0 % 2020 51,468 3.7 % Thereafter 62,832 5.0 % $ 1,578,871 3.9% (1) Unadjusted for unamortized fair value adjustments, unamortized discount, and unamortized deferred financing costs. (2) Weighted average maturity of Mortgage Debt is 2.7 years. Debt Repayment Schedule as of June 30, 2018 $960,000 $1,000,000 $800,000 $600,000 $400,000 $244,023 $265,532 $200,000 $7,908 $44,524 $8,624 $25,066 $23,194 $0 2018 2019 2020 2021 2022 2023 2024 Thereafter 10

FINANCIAL STATISTICS AND COVENANT PERFORMANCE (Unaudited and in thousands, except share and per share data) Quarter Ended June 30, 2018 Annualized dividend rate (1) $ 0.92 Price per share (2) $ 15.94 Annualized Dividend Yield 5.77% Total debt (3) $ 1,578,871 Net debt (less cash) 1,569,645 Adjusted EBITDAre (annualized)* 286,108 Net Debt / Adjusted EBITDAre Ratio 5.49x Adjusted EBITDAre (annualized)* $ 286,108 Cash interest expense (annualized)* 66,288 Interest Coverage Ratio 4.32x Total interest $ 17,154 Capitalized interest 157 Secured debt principal amortization 651 Total fixed charges $ 17,962 Adjusted EBITDAre 71,527 Adjusted EBITDAre Fixed Charge Coverage Ratio 3.98x Implied equity market cap $ 2,987,468 Redeemable equity 23,879 Total debt (3) 1,578,871 Total Firm Value 4,590,218 Total debt (3) $ 1,578,871 Total assets 4,218,265 Total Debt / Total Assets 37.4% Total Debt / Total Firm Value 34.4% Weighted average common shares 182,002,062 Weighted average unvested restricted common shares and share units 36,513 Weighted average OP Units not owned by DOC 5,392,557 Weighted Average Common Shares and OP Units - Diluted 187,431,132 COVENANT PERFORMANCE Required June 30, 2018 Total Leverage Ratio ≤ 60.0% 36.0% Total Secured Leverage Ratio ≤ 40.0% 3.2% Maintenance of Unencumbered Assets ≥ 1.5x 2.9x Consolidated Debt Service (Trailing Four Quarters) ≥ 1.5x 4.2x (1) Annualized rate based on $0.23 quarterly dividend for the quarter ending June 30, 2018. Actual dividend amounts will be determined by the Trust's board of trustees based on a variety of factors. (2) Closing common share price of $15.94 as of June 29, 2018. (3) Unadjusted for unamortized fair value adjustments, unamortized discount, and unamortized deferred financing costs. * Amounts are annualized and actual amounts may differ significantly from the annualized amounts shown. 11

SAME-STORE PORTFOLIO PERFORMANCE AND TENANT OCCUPANCY (Unaudited and in thousands, except property count and sq. ft. data. Same-Store data excludes 23 Assets Slated for Disposition and Kennewick MOB) Same-Store Cash SAME-STORE PORTFOLIO ANALYSIS NOI, 65.9% Portfolio Same-Store Quarter Ended Quarter Ended June 30, 2018 June 30, 2018 Number of healthcare properties (1) 249 207 Gross leasable area (1) 13,399,898 9,629,760 Cash NOI $ 71,792 $ 47,317 % Leased (1) 96.6% 95.9% Other Cash SAME-STORE PORTFOLIO PERFORMANCE NOI, 34.1% Year-Over-Year Comparison Sequential Comparison Q2'18 Q2'17 Change Q2'18 Q1'18 Change Number of healthcare properties 207 207 — 207 207 — Gross leasable area 9,629,760 9,629,760 — 9,629,760 9,629,760 — % Leased 95.9% 95.6% 30 bps 95.9% 96.0% -10 bps Rental revenues 67,056 65,111 +3.0% 67,056 67,400 (0.5)% Operating expenses (19,739) (19,304) +2.3% (19,739) (20,599) (4.2)% Same-Store Cash NOI 47,317 45,807 +3.3% 47,317 46,801 +1.1% TENANT OCCUPANCY (1) Quarter Ended Percentage of total GLA June 30, 2018 June 30, 2018 Total GLA Total square feet beginning of quarter 13,625,726 101.7 % Acquired GLA (2) 236,886 1.8 % Disposed GLA (3) (462,714) (3.5)% Total square feet end of quarter 13,399,898 100.0 % Occupied GLA Occupied GLA beginning of quarter 13,158,045 98.2 % Expirations (292,279) (2.2)% Renewals 232,653 1.7 % Retention Rate 80% New leases commencing in quarter 57,511 0.4 % Net absorption / (vacancy loss) (2,115) — % Net occupied GLA acquired (3) (210,849) (1.6)% Occupied GLA end of quarter 12,945,081 96.6 % (1) Excludes 17 assets classified as held for sale and the Company's corporate office building. (2) Includes remeasurements of existing properties totaling 5,400 square feet. (3) Includes 17 properties classified as held for sale during the period. 12

INVESTMENT ACTIVITY AND ASSETS SLATED FOR DISPOSITION (Unaudited and in thousands, except sq. ft. data) SECOND QUARTER INVESTMENTS Acquisition First Year Purchase Property Location Date Cash Yield % Leased Price GLA HMG Medical Plaza Kingsport, TN 4/3/2018 6.0% 100% $ 71,295 231,486 Total / Weighted Average 6.0% $ 71,295 231,486 SECOND QUARTER DISPOSITIONS Property Location Date Proceeds GLA June 2018 Disposition Portfolio Various 6/28/2018 $ 90,747 560,234 Total $ 90,747 560,234 ASSETS SLATED FOR DISPOSITION Held for Sale Other Total Number of Properties 17 6 23 Number of States 7 3 8 Total Gross Leasable Area 462,714 320,270 782,984 MedStar Stephen's Crossing MOB Zangmeister Cancer Center Brandywine, MD Columbus, OH 13

PORTFOLIO GEOGRAPHIC DISTRIBUTION (As of June 30, 2018) TOP TEN STATES Texas, 14% State GLA Texas 1,880,480 Indiana 998,831 Other, 32% Indiana, 7% Nebraska 979,303 Kentucky 976,620 Georgia 871,070 Nebraska, 7% Minnesota 810,301 Arizona 733,791 Tennessee 689,498 Kentucky, 7% Ohio 650,319 New York, 5% New York 613,496 Ohio, 5% Georgia, 7% Other 4,196,189 Minnesota, 6% Total 13,399,898 Tennessee, 5% Arizona, 5% 14

PORTFOLIO DIVERSIFICATION (As of June 30, 2018) Coverage # of Properties GLA % of Total % Leased Ratio (1) Single-tenant MOBs 115 4,956,796 37.0% 100.0% N/A Multi-tenant MOBs 125 7,743,958 57.8% 94.1% N/A Hospitals 6 388,792 2.9% 100.0% 2.3x LTACHs 3 310,352 2.3% 100.0% 1.3x Total 249 13,399,898 100.0% 96.6% THREE MONTHS ENDED JUNE 30, 2018 Campus Proximity Lease Type (Based on Cash NOI) (Based on Annualized Base Revenue) On-Campus / Affiliated, 88% Absolute Net, 14% NNN, 78% Gross, Off-Campus, 2% 12% Modified Gross, 6% Building Type Section 603 Asset Mix (Based on Cash NOI) (Based on Annualized Base Revenue) Hospital, 6% LTACH, 2% 603 Assets, 18% Non-603 Assets, 82% MOB, 92% (1) Adjusted for the exclusion of 23 assets slated for disposition. 15

LEASING RELATIONSHIPS AND EXPIRATION SCHEDULE (As of June 30, 2018, $ in thousands) INVESTMENT GRADE TENANCY (1) % of Total Credit Rating (2) Leased % of Leased Annualized Annualized Relationship (Moody's / S&P) GLA GLA Base Rent Base Rent Catholic Health Initiatives Baa1 / BBB+ 3,141,126 24.3% $54,588 19.7% Ascension Health Aa2 / AA+ 513,448 4.0% 8,147 2.9% Baylor Scott and White Health Aa3 / AA- 268,639 2.1% 7,583 2.7% US Oncology Baa2 / NA 254,939 2.0% 6,785 2.4% HonorHealth A2 / NA 243,482 1.9% 5,918 2.1% Dignity Health A2 / NA 213,562 1.6% 4,296 1.5% Other Investment Grade Relationships 2,116,652 16.3% 48,994 17.6% Total 6,751,848 52.2% $136,311 49.1% TOP 10 TENANTS BY ABR Weighted Avg. % of Total Remaining Leased % of Total Annualized Annualized Tenant Lease Term GLA GLA Base Rent Base Rent CHI - Nebraska 8.4 895,138 6.7% $16,244 5.9% CHI - KentuckyOne Health 7.8 747,049 5.6% 13,484 4.9% Baylor Scott and White Health 7.5 268,639 2.0% 7,583 2.7% US Oncology 6.9 254,939 1.9% 6,785 2.4% CHI - St. Alexius (ND) 8.1 362,284 2.7% 6,391 2.3% Northside Hospital 10.2 329,249 2.5% 6,366 2.3% HonorHealth 11.5 243,482 1.8% 5,918 2.1% CHI - Franciscan (WA) 7.9 332,089 2.5% 5,720 2.1% Holston Medical Group 17.6 273,706 2.0% 5,489 2.0% Great Falls Clinic 17.1 185,085 1.4% 5,348 1.9% Total / Weighted Average 9.4 3,891,660 29.1% $79,328 28.6% LEASE EXPIRATION SCHEDULE Expiration Expiring Expiring Lease % of Total Expiring Lease % of Total Average Rent Year Leases GLA GLA ABR ABR per SF 2018 42 147,737 1.1% $3,077 1.1% $20.83 2019 98 386,788 2.9% 8,749 3.2% 22.62 2020 112 478,036 3.6% 10,098 3.6% 21.12 2021 148 584,769 4.4% 12,422 4.5% 21.24 2022 99 636,596 4.8% 15,893 5.7% 24.97 2023 109 604,870 4.5% 13,312 4.8% 21.87 2024 60 728,342 5.4% 14,941 5.4% 20.51 2025 132 1,001,245 7.5% 24,205 8.7% 24.17 2026 125 3,570,471 26.6% 72,183 26.0% 20.22 2027 73 1,350,039 10.1% 27,532 9.9% 20.39 Thereafter 111 3,385,134 25.2% 74,095 26.7% 21.89 MTM 38 71,054 0.5% 1,198 0.4% 16.86 Vacant 454,817 3.4% Total / W.A. 1,147 13,399,898 100% $277,705 100% $21.45 (1) Represents direct leases to investment grade entities and their subsidiaries. (2) Parent rating used where direct tenant is not rated. 16

CONSOLIDATED BALANCE SHEETS (In thousands, except share data) June 30, December 31, 2018 2017 ASSETS Investment properties: Land and improvements $ 201,620 $ 217,695 Building and improvements 3,546,101 3,568,858 Tenant improvements 28,091 23,056 Acquired lease intangibles 446,127 458,713 4,221,939 4,268,322 Accumulated depreciation (339,003) (300,458) Net real estate property 3,882,936 3,967,864 Real estate held for sale 111,411 — Real estate loans receivable 68,151 76,195 Investment in unconsolidated entities 1,329 1,329 Net real estate investments 4,063,827 4,045,388 Cash and cash equivalents 9,226 2,727 Tenant receivables, net 5,439 9,966 Other assets 139,773 106,302 Total assets $ 4,218,265 $ 4,164,383 LIABILITIES AND EQUITY Liabilities: Credit facility $ 459,262 $ 324,394 Notes payable 966,586 966,603 Mortgage debt 139,748 186,471 Accounts payable 5,012 11,023 Dividends and distributions payable 43,357 43,804 Accrued expenses and other liabilities 66,115 56,405 Acquired lease intangibles, net 14,881 15,702 Total liabilities 1,694,961 1,604,402 Redeemable noncontrolling interest - Series A Preferred Units (2018) and partially owned properties 23,879 12,347 Equity: Common shares, $0.01 par value, 500,000,000 common shares authorized, 182,027,309 and 181,440,051 common shares issued and outstanding as of June 30, 2018 and December 31, 2017, respectively 1,820 1,814 Additional paid-in capital 2,781,867 2,772,823 Accumulated deficit (376,170) (315,417) Accumulated other comprehensive income 19,571 13,952 Total shareholders' equity 2,427,088 2,473,172 Noncontrolling interests: Operating Partnership 71,712 73,844 Partially owned properties 625 618 Total noncontrolling interest 72,337 74,462 Total equity 2,499,425 2,547,634 Total liabilities and equity $ 4,218,265 $ 4,164,383 17

CONSOLIDATED STATEMENTS OF INCOME (In thousands, except share and per share data) Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Revenues: Rental revenues $ 80,392 $ 58,015 $ 159,279 $ 117,107 Expense recoveries 24,288 16,108 48,596 32,462 Interest income on real estate loans and other 2,309 2,476 4,337 3,696 Total revenues 106,989 76,599 212,212 153,265 Expenses: Interest expense 17,154 11,472 33,648 21,287 General and administrative 7,104 6,249 15,563 10,985 Operating expenses 30,341 20,519 60,800 42,608 Depreciation and amortization 37,725 28,123 76,301 56,056 Acquisition expenses — 5,242 — 10,647 Total expenses 92,324 71,605 186,312 141,583 Income before equity in income of unconsolidated entities and (loss) gain on sale of investment properties: 14,665 4,994 25,900 11,682 Equity in income of unconsolidated entities 29 29 57 57 (Loss) gain on sale of investment properties (2,632) 5,308 (2,563) 5,308 Net income 12,062 10,331 23,394 17,047 Net income attributable to noncontrolling interests: Operating Partnership (331) (314) (644) (461) Partially owned properties (144) (159) (255) (326) Net income attributable to controlling interest 11,587 9,858 22,495 16,260 Preferred distributions (284) (188) (771) (399) Net income attributable to common shareholders $ 11,303 $ 9,670 $ 21,724 $ 15,861 Net income per share: Basic $ 0.06 $ 0.06 $ 0.12 $ 0.11 Diluted $ 0.06 $ 0.06 $ 0.12 $ 0.11 Weighted average common shares Basic 182,002,062 155,366,080 181,906,348 147,221,602 Diluted 187,431,132 161,012,360 187,387,211 151,912,432 Dividends and distributions declared per common share and OP Unit $ 0.230 $ 0.230 $ 0.460 $ 0.455 18

REPORTING DEFINITIONS Adjusted Earnings Before Interest Taxes, Depreciation and Amortization for Real Estate (Adjusted EBITDAre): We define Adjusted EBITDAre for DOC as EBITDAre, computed in accordance with standards established by the National Association of Real Estate Investment Trusts (“NAREIT”), plus acquisition-related expenses, non-cash compensation, and other non-reoccurring items. We consider Adjusted EBITDAre an important measure because it provides additional information to allow management, investors, and our current and potential creditors to evaluate and compare our core operating results and our ability to service debt. Annualized Base Rent (ABR): Annualized base rent is calculated by multiplying reported base rent for June 2018 by 12 (but excluding the impact of concessions and straight-line rent). Assets Slated for Disposition: Properties that are included in discontinued operations, designated as held for sale, or for which there is an active intent to sell or reposition such properties. Where indicated, such assets are excluded from property counts, concentration statistics, and performance metrics for all periods presented. Results from these assets are included in the Company’s GAAP financial results and reconciliations. Cash Net Operating Income (NOI): Cash NOI is a non-GAAP financial measure which excludes from NOI straight-line rent adjustments, amortization of acquired below and above market leases and other non-cash and normalizing items. Other non-cash and normalizing items include items such as the amortization of lease inducements, and payment received from a seller master lease. DOC believes that Cash NOI provides an accurate measure of the operating performance of its operating assets because it excludes certain items that are not associated with management of the properties. Additionally, DOC believes that Cash NOI is a widely accepted measure of comparative operating performance in the real estate community. However, DOC’s use of the term Cash NOI may not be comparable to that of other real estate companies as such other companies may have different methodologies for computing this amount. Coverage Ratio: Reflects the ratio of full-year EBITDAR to rent of indicated properties. Coverage ratios are calculated one quarter in arrears, beginning the first full quarter after acquisition, for all properties the company has owned for fifteen months. Management fee is standardized to 4% of revenues for LTACHs. Earnings Before Interest Taxes, Depreciation, Amortization and Rent (EBITDAR): We define EBITDAR for DOC as net (loss) income computed in accordance with GAAP plus depreciation, amortization, interest expense and net change in the fair value of derivative financial instruments, net (loss) included from discontinued operations, stock based compensation, acquisition-related expenses and lease expense. We consider EBITDAR an important measure because it provides additional information to allow management, investors, and our current and potential creditors to evaluate and compare our tenants ability to fund their rent obligations. Earnings Before Interest Taxes, Depreciation and Amortization for Real Estate (EBITDAre): In 2017, NAREIT issued a white paper defining EBITDA for real estate as net income or loss computed in accordance with GAAP plus interest expense, income tax expense, depreciation and amortization expense, impairment, gains or losses from the sale of real estate; and the proportionate share of joint venture depreciation, amortization and other adjustments. We adopted the use of EBITDAre in the first quarter of 2018. Funds From Operations (FFO): Funds from operations, or FFO, is a widely recognized measure of REIT performance. We believe that information regarding FFO is helpful to shareholders and potential investors because it facilitates an understanding of the operating performance of our properties without giving effect to real estate depreciation and amortization, which assumes that the value of real estate assets diminishes ratably over time. We calculate FFO in accordance with standards established by NAREIT. NAREIT defines FFO as net income or loss (computed in accordance with GAAP) before noncontrolling interests of holders of OP units, excluding preferred distributions, gains (or losses) on sales of depreciable operating property, impairment write-downs on depreciable assets, plus real estate related depreciation and amortization (excluding amortization of deferred financing costs). Our FFO computation may not be comparable to FFO reported by other REITs that do not compute FFO in accordance with NAREIT definition or that interpret the NAREIT definition differently than we do. The GAAP measure that we believe to be most directly comparable to FFO, net income, includes depreciation and amortization expenses, gains or losses on property sales, impairments and noncontrolling interests. In computing FFO, we eliminate these items because, in our view, they are not indicative of the results from the operations of our properties. To facilitate a clear understanding of our historical operating results, FFO should be examined in conjunction with net income (determined in accordance with GAAP) as presented in our financial statements. FFO does not represent cash generated from operating activities in accordance with GAAP, should not be considered to be an alternative to net income or loss (determined in accordance with GAAP) as a measure of our liquidity and is not indicative of funds available for our cash needs, including our ability to make cash distributions to shareholders. Gross Leasable Area (GLA): Gross leasable area (in square feet). Gross Real Estate Investments: Based on acquisition price (and includes lease intangibles). Health System: We define an entity to be a health system if each of the following criteria are met: 1) the entity provides inpatient or outpatient services in the primary course of business; 2) services are provided at more than one campus or site of care; and 3) if the entity only provides outpatient services, they must employ a minimum of 50 physicians. Health System-Affiliated: Properties are considered affiliated with a health system if one or more of the following conditions are met: 1) the land parcel is contained within the physical boundaries of a hospital campus; 2) the land parcel is located adjacent to the campus; 3) the building is physically connected to the hospital regardless of the land ownership structure; 4) a ground lease is maintained with a health system entity; 5) a master lease is maintained with a health system entity; 6) significant square footage is leased to a health system entity; 7) the property includes an ambulatory surgery center with a hospital ownership interest; or 8) a significant square footage is leased to a physician group that is either employed, directly or indirectly by a health system, or has a significant clinical and financial affiliation with the health system. Hospitals: Hospitals refer to specialty surgical hospitals. These hospitals provide a wide range of inpatient and outpatient services, including but not limited to, surgery and clinical laboratories. LTACHs: Long-term acute care hospitals (LTACH) provide inpatient services for patients with complex medical conditions who require more sensitive care, monitoring or emergency support than that available in most skilled nursing facilities. 19

REPORTING DEFINITIONS (continued) Medical Office Building (MOB): Medical office buildings are office and clinic facilities, often located near hospitals or on hospital campuses, specifically constructed and designed for use by physicians and other health care personnel to provide services to their patients. They may also include ambulatory surgery centers that are used for general or specialty surgical procedures not requiring an overnight stay in a hospital. Medical office buildings may contain sole and group physician practices and may provide laboratory and other patient services. Net Operating Income (NOI): NOI is a non-GAAP financial measure that is defined as net income or loss, computed in accordance with GAAP, generated from DOC’s total portfolio of properties before general and administrative expenses, acquisition-related expenses, depreciation and amortization expense, REIT expenses, interest expense and net change in the fair value of derivative financial instruments, and gains or loss on the sale of discontinued properties. DOC believes that NOI provides an accurate measure of operating performance of its operating assets because NOI excludes certain items that are not associated with management of the properties. Additionally, DOC’s use of the term NOI may not be comparable to that of other real estate companies as they may have different methodologies for computing this amount. Normalized Funds Available for Distribution (Normalized FAD): DOC defines Normalized FAD, a non-GAAP measure, which excludes from Normalized FFO non-cash share compensation expense, straight-line rent adjustments, amortization of acquired above or below market leases and assumed debt, amortization of deferred financing costs, amortization of lease inducements, and recurring capital expenditures related to tenant improvements and leasing commissions, and includes cash payments from seller master leases and rent abatement payments. Other REITs or real estate companies may use different methodologies for calculating Normalized FAD, and accordingly, our computation may not be comparable to those reported by other REITs. Although the Company’s computation of Normalized FAD may not be comparable to that of other REITs, the Company believes Normalized FAD provides a meaningful supplemental measure of its performance due to its frequency of use by analysts, investors, and other interested parties in the evaluation of our performance as a REIT. Normalized FAD should not be considered as an alternative to net income or loss attributable to controlling interest (computed in accordance with GAAP) or as an indicator of the Company’s financial performance. Normalized FAD should be reviewed in connection with other GAAP measurements. Normalized Funds From Operations (Normalized FFO): Changes in the accounting and reporting rules under GAAP have prompted a significant increase in the amount of non-operating items included in FFO, as defined. Therefore, DOC uses Normalized FFO, which excludes from FFO net change in fair value of derivative financial instruments, acquisition expenses, acceleration of deferred financing costs, write off contingent consideration and other normalizing items. However, our use of the term Normalized FFO may not be comparable to that of other real estate companies as they may have different methodologies for computing this amount. Normalized FFO should not be considered as an alternative to net income or loss (computed in accordance with GAAP), as an indicator of our financial performance or of cash flow from operating activities (computed in accordance with GAAP), or as an indicator of our liquidity, nor is it indicative of funds available to fund our cash needs, including its ability to make distributions. Normalized FFO should be reviewed in connection with other GAAP measurements. Occupancy: Occupancy represents the percentage of total gross leasable area that is leased, including month-to-month leases, leases in holdover status, and leases that are signed but not yet commenced, as of the date reported. Off-Campus: A building portfolio that is not located on or adjacent to key hospital based-campuses. On-Campus / Affiliated: On-campus refers to a property that is located on or within a quarter mile to a health system. Affiliated refers to a property that is not on the campus of a health system, but is affiliated with a health system. Same-Store Portfolio: The same-store portfolio consists of medical properties held by the Company for the entire preceding year and not currently slated for disposition. Section 603 Assets: For the purposes of this Supplemental Information, "603 Asset" is defined to be our estimate of Annualized Base Revenue (ABR) as a percentage of all our ABR, derived from leases to hospitals for hospital outpatient department space located in an off-campus medical office building at least 250 yards from the hospital's main campus inpatient location, and that was billing Medicare for outpatient department services provided in that off-campus location as of November 2, 2015. ABR that is "not-603" for the purposes of this Supplemental Information could and would include ABR from space leased to a hospital outpatient department services provided in leased space within the 250 yard requirement for on-campus locations or in buildings that are more than 250 yards from the hospital service provider's main campus, but the hospital did not start billing for that service in the location until after November 2, 2015. 20