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): May 1, 2019

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 May 1, 2019, Physicians Realty Trust (the “Company”) issued a press release that announced operating results for its first quarter ended March 31, 2019. 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 May 1, 2019, issued by Physicians Realty Trust
99.2	Supplemental Operating & Financial Information First Quarter 2019

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:	May 1, 2019		PHYSICIANS REALTY TRUST
		By:	/s/ John T. Thomas
			John T. Thomas
			President and Chief Executive Officer

Date:	May 1, 2019		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 May 1, 2019, issued by Physicians Realty Trust
99.2	Supplemental Operating & Financial Information First Quarter 2019

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 First Quarter 2019 Financial Results

Announces Execution of Ten Year Lease at El Paso Specialty Facility

Announces Year-to-Date Investment Activity of $40.1 million

First Quarter Highlights:

• Reported first quarter 2019 total revenue of $105.4 million, which was flat compared to the prior year period.

• Generated first quarter net income per share and OP unit of $0.06 on a fully diluted basis, which was flat over the prior year period.

• Generated first quarter normalized funds from operations (Normalized FFO) of $0.25 per share and OP unit on a fully diluted basis, down $0.01 compared to the same period last year.

• First Quarter Same-Store Cash Net Operating Income (Cash NOI) growth was 1.5% year-over-year.

• Declared a quarterly dividend of $0.23 per share and OP unit for the first quarter 2019, paid April 18, 2019.

• Sold 1,681,928 common shares pursuant to the ATM program at a weighted average price of $18.61, resulting in total proceeds of approximately $31.0 million.

Milwaukee, WI - May 1, 2019 - 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 first quarter ended March 31, 2019.

John T. Thomas, President and Chief Executive Officer of the Trust, commented, “From the date of our IPO, Physicians Realty Trust has been dedicated to making a difference in the lives of our healthcare partners and those who visit our properties. We have always believed that it’s this commitment that will best deliver long-term value to our shareholders through our position as the preferred partner for the highest-quality healthcare providers in the industry.”

“We are proud to announce that, as a result of these long-standing industry relationships, we have agreed in principal to a new ten year lease at the recently vacated El Paso Specialty Facility in El Paso, Texas. We look forward to discussing the terms of this new lease, as well as the performance of the entire Physicians Realty Trust portfolio, during today’s conference call,” Mr. Thomas concluded.

First Quarter Financial Results

Total revenue for the first quarter ended March 31, 2019 was $105.4 million, similar to the first quarter 2018. As of March 31, 2019, the portfolio was 95% leased.

Total expenses for the first quarter 2019 were $93.9 million, similar to the same period in 2018. Operating expenses increased by $1.7 million which was offset by a $2.1 million decrease in depreciation and amortization.

Net income for the first quarter 2019 was $11.5 million, similar to net income of $11.3 million for the first quarter 2018.

Net income attributable to common shareholders for the first quarter 2019 was $10.8 million. Diluted earnings per share for the first quarter 2019 was $0.06 based on 188.5 million weighted average common shares and operating partnership units (“OP Units”) outstanding.

Funds from operations (FFO) for the first quarter 2019 consisted of net income, plus $36.4 million of depreciation and amortization, less $0.5 million of other adjustments, resulting in $0.25 per share and OP unit on a fully diluted basis. Normalized FFO, which adjusts for net changes in fair value, was $47.4 million, or $0.25 per share and OP unit on a fully diluted basis.

Normalized funds available for distribution (FAD) for the first quarter 2019, 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 $42.1 million.

Our same-store portfolio, which includes 238 properties representing approximately 93% of our net leasable square footage, generated year-over-year Same-Store Cash NOI growth of 1.5% for the first quarter 2019. Same-Store Cash NOI for the first quarter 2019 excludes 8 assets slated for disposition. If these assets were included, Same-Store Cash NOI growth would have been 1.8%.

Assets Slated for Disposition

We consider 8 properties in four states, representing an aggregate of approximately 373,213 square feet of gross leasable area, to be slated for disposition as of March 31, 2019. These assets include 2 properties classified as held for sale, 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

Recent Investment Activity

During the quarter ended March 31, 2019, the Company made one construction loan and one term loan both of which are secured by mortgages, for an aggregate principal balance of $20.0 million and a weighted average interest rate of 7.7%. The Company also purchased a newly-constructed addition to an existing building owned by the Company in Tennessee for $4.3 million.

Since March 31, 2019, the Trust, through a subsidiary of its Operating Partnership, completed the acquisition of a $14.8 million surgery center in Pasadena, Texas. The Company partially funded this transaction through the issuance of an aggregate 346,989 OP units valued at approximately $6.5 million. The newly constructed 27,035 square foot medical office building is 100% leased through 2034, and the first year unlevered yield on this investment is expected to be approximately 6.0%. The Company also made a mezzanine loan with a principal balance of $0.9 million and a weighted average interest rate of 9.0% in connection with the development of a new medical office building in Pensacola, Florida. The mezzanine loan is secured by a pledge of 100% of the borrower’s ownership interests in the real estate owner.

On April 3, 2019, the Company completed the disposition of a multi-specialty healthcare property representing 3,500 square feet located in Panama City, Florida for approximately $1.0 million and recognized a gain of approximately $0.2 million. The property was disposed of at an approximate cap rate of 7.4%.

On April 26, 2019, the Company completed the disposition of a healthcare property representing 49,443 square feet located in Tacoma, Washington for approximately $11.5 million and recognized a gain of approximately $2.9 million. The property was disposed of at an approximate cap rate of 6.3%.

Recent Capital Activity

During the quarter ended March 31, 2019, the Company issued 1,681,928 shares pursuant to its ATM program at a weighted average price of $18.61 for net proceeds of $31.0 million.

On April 30, 2019, at the Annual Meeting of Shareholders of Physicians Realty Trust, the Trust’s shareholders approved the Amended and Restated Physicians Realty Trust 2013 Equity Incentive Plan. Among other things, the amendments increased the number of common shares authorized for issuance under the 2013 Plan by 4,550,000 common shares, for a total of 7,000,000 common shares authorized for issuance. The 2013 Plan term was also extended to 2029.

Dividend Paid

On March 22, 2019, our Board of Trustees authorized and declared a cash distribution of $0.23 per common share and OP Unit for the quarterly period ended March 31, 2019. The distribution was paid on April 18, 2019 to common shareholders and OP Unit holders of record as of the close of business on April 3, 2019.

Conference Call Information

The Company has scheduled a conference call on Wednesday, May 1, 2019, at 10:00 a.m. EDT to discuss its financial performance and operating results for the first quarter ended March 31, 2019. 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 First Quarter Earnings Call or passcode: 13689059. 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 May 1, 2019, at 1:00 p.m. EDT until June 1, 2019, at 11:59 p.m. EDT, by dialing (844) 512-2921 (U.S.) or (412) 317-6671 (International); passcode: 13689059. A replay of the webcast also will be accessible on the Investor Relations website for one year following the event. Beginning May 1, 2019, the Company’s supplemental information package for the first quarter 2019 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 March 31, 2019, owned approximately 97.3% of OP units.

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

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”, “intend”, and “project” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward looking statements may include statements regarding the Company’s strategic and operational plans, the Company’s ability to generate internal and external growth, the future outlook, anticipated cash returns, cap rates or yields on properties, anticipated closing of property acquisitions, and ability to execute its business plan. While forward-looking statements reflect our good faith beliefs, they are not guarantees of future performance. Forward looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward looking statements are based on information available at the time those statements are made and/or management’s good faith belief as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward looking statements. These forward-looking statements are subject to various risks and uncertainties, not all of which are known to the Company and many of which are beyond the Company’s control, which could cause actual results to differ materially from such statements. These risks and uncertainties are described in greater detail in the Company’s filings with the Securities and Exchange Commission (the “Commission”), including, without limitation, the Company’s annual and periodic reports and other documents filed with the Commission. Unless legally required, the Company disclaims any obligation to update any forward-looking statements after the date of this release, whether as a result of new information, future events or otherwise. For a description of factors that may cause the Company’s actual results or performance to differ from its forward-looking statements, please review the information under the heading “Risk Factors” included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018 filed by the Company with the Commission on February 28, 2019.

Source: Physicians Realty Trust

Physicians Realty Trust

Condensed Consolidated Statements of Income

(in thousands, except share and per share data) (Unaudited)

	Three Months Ended March 31,
	2019			2018
Revenues:
Rental revenues	$	77,083		$	78,887
Expense recoveries	26,042			24,308
Interest income on real estate loans and other	2,243			2,028
Total revenues	105,368			105,223
Expenses:
Interest expense	16,269			16,494
General and administrative	8,972			8,459
Operating expenses	32,208			30,459
Depreciation and amortization	36,449			38,576
Total expenses	93,898			93,988
Income before equity in income of unconsolidated entities and gain on sale of investment properties, net:	11,470			11,235
Equity in income of unconsolidated entities	30			28
Gain on sale of investment properties, net	—			69
Net income	11,500			11,332
Net income attributable to noncontrolling interests:
Operating Partnership	(305		)	(313		)
Partially owned properties	(138		)	(111		)
Net income attributable to controlling interest	11,057			10,908
Preferred distributions	(284		)	(487		)
Net income attributable to common shareholders	$	10,773		$	10,421
Net income per share:
Basic	$	0.06		$	0.06
Diluted	$	0.06		$	0.06
Weighted average common shares:
Basic	182,672,863			181,809,570
Diluted	188,497,308			187,317,243
Dividends and distributions declared per common share and OP Unit	$	0.23		$	0.23

Physicians Realty Trust

Condensed Consolidated Balance Sheets

(in thousands, except share and per share data)

	March 31,			December 31,
	2019			2018
	(unaudited)
ASSETS
Investment properties:
Land and improvements	$	210,542		$	211,253
Building and improvements	3,627,825			3,623,962
Tenant improvements	43,213			36,497
Acquired lease intangibles	386,707			452,384
	4,268,287			4,324,096
Accumulated depreciation	(443,814		)	(411,052		)
Net real estate property	3,824,473			3,913,044
Real estate held for sale	9,038			—
Right-of-use lease asset, net	126,250			—
Real estate loans receivable	75,474			55,659
Investments in unconsolidated entities	1,331			1,330
Net real estate investments	4,036,566			3,970,033
Cash and cash equivalents	5,048			19,161
Tenant receivables, net	10,566			8,881
Other assets	132,825			144,759
Total assets	$	4,185,005		$	4,142,834
LIABILITIES AND EQUITY
Liabilities:
Credit facility	$	478,892		$	457,388
Notes payable	967,161			966,961
Mortgage debt	99,608			108,504
Accounts payable	3,513			3,886
Dividends and distributions payable	44,335			43,821
Accrued expenses and other liabilities	56,088			76,282
Lease liability	60,864			—
Acquired lease intangibles, net	7,336			13,585
Total liabilities	1,717,797			1,670,427
Redeemable noncontrolling interests - Series A Preferred Units and partially owned properties	24,882			24,747
Equity:
Common shares, $0.01 par value, 500,000,000 common shares authorized, 184,307,910 and 182,416,007 common shares issued and outstanding as of March 31, 2019 and December 31, 2018, respectively	1,843			1,824
Additional paid-in capital	2,822,520			2,791,555
Accumulated deficit	(460,357		)	(428,307		)
Accumulated other comprehensive income	10,957			14,433
Total shareholders’ equity	2,374,963			2,379,505
Noncontrolling interests:
Operating Partnership	66,668			67,477
Partially owned properties	695			678
Total noncontrolling interests	67,363			68,155
Total equity	2,442,326			2,447,660
Total liabilities and equity	$	4,185,005		$	4,142,834

Physicians Realty Trust

Reconciliation of Non-GAAP Measures

(in thousands, except share and per share data)

	Three Months Ended March 31,
	2019			2018
Net income	$	11,500		$	11,332
Earnings per share - diluted	$	0.06		$	0.06
Net income	11,500			11,332
Net income attributable to noncontrolling interests - partially owned properties	(138		)	(111		)
Preferred distributions	(284		)	(487		)
Depreciation and amortization expense	36,359			38,530
Depreciation and amortization expense - partially owned properties	(74		)	(166		)
Gain on sale of investment properties, net	—			(69		)
FFO applicable to common shares and OP Units	$	47,363		$	49,029
Net change in fair value of derivative	13			2
Normalized FFO applicable to common shares and OP Units	$	47,376		$	49,031
FFO per common share and OP Unit	$	0.25		$	0.26
Normalized FFO per common share and OP Unit	$	0.25		$	0.26
Normalized FFO applicable to common shares and OP Units	47,376			49,031
Non-cash share compensation expense	2,653			2,605
Straight-line rent adjustments	(4,762		)	(6,450		)
Amortization of acquired above/below-market leases/assumed debt	818			830
Amortization of lease inducements	343			344
Amortization of deferred financing costs	607			618
TI/LC and recurring capital expenditures	(4,904		)	(4,158		)
Seller master lease and rent abatement payments	—			229
Normalized FAD applicable to common shares and OP Units	$	42,131		$	43,049
Weighted average number of common shares and OP Units outstanding	188,497,308			187,317,243

	Three Months Ended March 31,
	2019			2018
Net income	$	11,500		$	11,332
General and administrative	8,972			8,459
Depreciation and amortization	36,449			38,576
Interest expense	16,269			16,494
Net change in the fair value of derivative	13			2
Gain on sale of investment properties, net	—			(69		)
NOI	$	73,203		$	74,794
NOI	$	73,203		$	74,794
Straight-line rent adjustments	(4,762		)	(6,450		)
Amortization of acquired above/below-market leases/assumed debt	818			830
Amortization of lease inducements	343			344
Seller master lease and rent abatement payments	—			229
Cash NOI	$	69,602		$	69,747
Cash NOI	$	69,602		$	69,747
Assets not held for all periods	(3,625		)	(5,003		)
Assets slated for disposition	(2,500		)	(2,252		)
Interest income and other	(1,625		)	(1,528		)
Same-Store Cash NOI	$	61,852		$	60,964

	Three Months Ended March 31,
	2019		2018
Net income	$	11,500	$	11,332
Depreciation and amortization	36,449		38,576
Interest expense	16,269		16,494
Gain on sale of investment properties, net	—		(69		)
EBITDAre	64,218		66,333
Non-cash share compensation expense	2,653		2,605
Non-cash changes in fair value	13		2
Adjusted EBITDAre	$	66,884	$	68,940

This press release includes Funds From Operations (FFO), Normalized FFO, Normalized Funds Available For Distribution (FAD), Net Operating Income (NOI), Cash NOI, Same-Store 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.

Same-Store Cash NOI is a non-GAAP financial measure which excludes from Cash NOI assets not held for all periods, assets slated for disposition, and other normalizing items not specifically related to the same-store property portfolio. Management considers Same-Store Cash NOI a supplemental measure because it allows investors, analysts, and Company management to measure unlevered property-level operating results. Our use of the term Same-Store 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. 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, 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 March 2019 Lee's Hill Medical Plaza Fredericksburg, VA SUPPLEMENTAL OPERATING & FINANCIAL INFORMATION FIRST QUARTER 2019 PHYSICIANS REALTY TRUST NYSE: DOC St. Vincent Fishers MOB Fishers, IN

TABLE OF CONTENTS COMPANY OVERVIEW ABOUT PHYSICIANS REALTY TRUST 4 FIRST 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, 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 May 1, 2019, 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. 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 March 31, 2019, owned approximately 97.3% of the partnership interests in the operating partnership (“OP Units”). COMPANY SNAPSHOT As of March 31, 2019 Gross real estate investments (thousands) $ 4,473,044 Total healthcare properties (1) 250 % Leased (1) 95.4% Total portfolio gross leasable area (sq. ft.) (1) 13,588,961 % of GLA on-campus / affiliated (1) 89% Average remaining lease term for all buildings (years) (1) 7.7 Cash and cash equivalents (thousands) $ 5,048 Total debt to firm value 30.3% Weighted average interest rate per annum on consolidated debt 3.8% Equity market cap (thousands) $ 3,466,832 Quarterly dividend $ 0.23 Quarter end stock price $ 18.81 Dividend yield 4.89% Common shares outstanding 184,307,910 OP Units outstanding and not owned by DOC 5,178,291 Total firm value (thousands) $ 5,149,871 (1) Excludes 2 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 President Chief Executive Officer 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 Jeffrey N. Theiler President Executive Vice President Chief Executive Officer Chief Financial Officer D. Deeni Taylor Mark D. Theine John W. Lucey Executive Vice President Executive Vice President Chief Accounting and Chief Investment Officer Asset & Investment Management Administrative Officer Bradley D. Page Daniel M. Klein Laurie P. Becker Senior Vice President Senior Vice President Senior Vice President General Counsel Deputy Chief Investment Officer Controller LOCATION AND CONTACT INFORMATION Corporate Headquarters Independent Registered Corporate and REIT Tax Counsel 309 N. Water Street, Suite 500 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. Kim - BMO Capital Markets Corp. V. Malhotra - Morgan Stanley M. Gorman - BTIG J. Hughes - Raymond James Financial Inc. D. Bernstein - Capital One Securities M. Carroll - RBC Capital Markets LLC C. Kucera - FBR Capital D. Babin - Robert W. Baird & Co. T. Okusanya - Jefferies LLC C. Vanacore - Stifel P. Martin - JMP Securities M. Lewis - SunTrust Robinson Humphrey J. Sadler - Keybanc Capital Markets Inc. 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 the Company 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

FIRST QUARTER 2019 HIGHLIGHTS OPERATING HIGHLIGHTS • First quarter 2019 total revenue of $105.4 million, flat compared to the prior year period • First quarter 2019 rental revenue of $77.1 million, down 2% compared to 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 $0.25 per share on a fully diluted basis • Declared quarterly dividend of $0.23 per share for the first quarter • 95.4% of portfolio square footage leased as of March 31, 2019 COMPANY ANNOUNCEMENTS • February 27, 2019: Announced the reporting of fourth quarter and full year 2018 financial results. Also announced the promotions of Mark D. Theine to Executive Vice President, Asset Management; John W. Lucey to Chief Accounting and Administrative Officer; and Laurie P. Becker to Senior Vice President, Controller. • March 22, 2019: 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 March 31, 2019. The distribution was paid on April 18, 2019 to common shareholders and OP Unit holders of record as of the close of business on April 3, 2019. CHI Lakeside Wellness Center HEB Cancer Center Omaha, NE Bedford, TX 6

FINANCIAL HIGHLIGHTS (Unaudited and in thousands, except sq. ft. and per share data) INCOME Three Months Ended March 31, 2019 December 31, 2018 Revenues $ 105,368 $ 105,311 Net income 11,500 11,156 NOI 73,203 73,401 Annualized Adjusted EBITDAre 267,536 274,988 Net income available to common shareholders per common share $ 0.06 $ 0.06 Normalized FFO 47,376 49,944 Normalized FFO per common share and OP Unit $ 0.25 $ 0.27 Normalized FAD 42,131 44,653 CAPITALIZATION As of ASSETS March 31, 2019 December 31, 2018 Gross Real Estate Investments (including gross lease intangibles) 4,473,044 4,367,500 Total Assets 4,185,005 4,142,834 DEBT AND EQUITY Total Debt (1) 1,560,754 1,548,662 Total Equity 2,442,326 2,447,660 Equity Market Capitalization 3,466,832 2,924,129 Total Firm Value 5,149,871 4,580,618 Total Debt / Total Firm Value 30.3% 33.8% (1) Unadjusted for unamortized fair value adjustments, unamortized discount, and unamortized deferred financing costs. Portfolio Growth Since IPO $4,473,044 $4,500,000 14,000,000 $4,000,000 12,000,000 s t n $3,500,000 e m 10,000,000 t s $3,000,000 e 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 R $1,500,000 s s 4,000,000 o r $1,000,000 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 Q 4Q 1Q O 3- 4- 1- 2- 3- 4- 1- 2- 3- 4- 1- 2- 3- 4- 1- 2- 3- 4- 1- 2- 3- - - 20 20 20 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 18 18 19 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 Three Months Ended March 31, 2019 December 31, 2018 Net income $ 11,500 $ 11,156 Net income attributable to NCI - partially owned properties (138) (141) Preferred distributions (284) (285) Depreciation and amortization expense 36,359 39,276 Depreciation and amortization expense - partially owned properties (74) (73) FFO applicable to common shares and OP Units $ 47,363 $ 49,933 Net change in fair value of derivative 13 11 Normalized FFO applicable to common shares and OP Units $ 47,376 $ 49,944 Net income available to common shareholders per common share and OP Unit $ 0.06 $ 0.06 FFO per common share and OP Unit $ 0.25 $ 0.27 Normalized FFO per common share and OP Unit $ 0.25 $ 0.27 Normalized FFO applicable to common shares and OP Units $ 47,376 $ 49,944 Non-cash share compensation expense 2,653 2,006 Straight-line rent adjustments (4,762) (4,590) Amortization of acquired above/below market leases/assumed debt 818 810 Amortization of lease inducements 343 316 Amortization of deferred financing costs 607 620 TI/LC and recurring capital expenditures (4,904) (4,453) Normalized FAD applicable to common shares and OP Units $ 42,131 $ 44,653 Weighted average number of common shares and OP Units outstanding 188,497,308 187,847,406 8

RECONCILIATION OF NON-GAAP MEASURES: NET OPERATING INCOME AND ADJUSTED EBITDAre (Unaudited and in thousands) Three Months Ended Three Months Ended NET OPERATING INCOME March 31, 2019 December 31, 2018 Net income $ 11,500 $ 11,156 General and administrative 8,972 6,660 Depreciation and amortization expense 36,449 39,365 Interest expense 16,269 16,209 Net change in fair value of derivative 13 11 NOI $ 73,203 $ 73,401 NOI $ 73,203 $ 73,401 Straight-line rent adjustments (4,762) (4,590) Amortization of acquired above/below market leases 818 810 Amortization of lease inducements 343 316 Cash NOI $ 69,602 $ 69,937 Three Months Ended Three Months Ended ADJUSTED EBITDAre March 31, 2019 December 31, 2018 Net income $ 11,500 $ 11,156 Depreciation and amortization 36,449 39,365 Interest expense 16,269 16,209 EBITDAre $ 64,218 $ 66,730 Non-cash share compensation expense 2,653 2,006 Net non-cash changes in fair value 13 11 Adjusted EBITDAre $ 66,884 $ 68,747 Adjusted EBITDAre Annualized(1) $ 267,536 $ 274,988 (1) Amounts are annualized and actual results 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 March 31, 2019 Unsecured credit facility debt $ 486,000 Debt is 30% of Firm Value Unsecured notes 975,000 Mortgage debt 99,754 Total Debt (1) $ 1,560,754 Redeemable equity $ 24,882 Share price $ 18.81 Total common shares outstanding 184,307,910 Total OP Units outstanding 5,178,291 Implied equity market capitalization $ 3,564,235 Total Firm Value (Debt + Pref. + Equity) $ 5,149,871 Debt Equity Total Debt/Total Assets 37.3% Total Debt/Total Firm Value 30.3% (1) Balance as of DEBT SUMMARY March 31, 2019 Interest Rate Maturity Date Revolving Credit Facility Debt $ 236,000 3.6 % 9/18/2022 Credit Facility Term Debt 250,000 2.3 % 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): 2019 15,000 4.0 % 2020 23,500 3.6 % 2021 6,848 4.7 % Thereafter 54,406 4.9 % $ 1,560,754 3.8% (1) Unadjusted for unamortized fair value adjustments, unamortized discount, and unamortized deferred financing costs. (2) Weighted average maturity of Mortgage Debt is 3.2 years. Debt Repayment Schedule as of March 31, 2019 $938,751 $1,000,000 $800,000 $600,000 $400,000 $256,818 $266,000 $200,000 $16,296 $25,470 $8,289 $23,662 $25,468 $0 2019 2020 2021 2022 2023 2024 2025 Thereafter 10

FINANCIAL STATISTICS AND COVENANT PERFORMANCE (Unaudited and in thousands, except share and per share data) Quarter Ended March 31, 2019 Annualized dividend rate (1) $ 0.92 Price per share (2) $ 18.81 Annualized Dividend Yield 4.89% Total debt (3) $ 1,560,754 Net debt (less cash) 1,555,706 Adjusted EBITDAre (annualized)* 267,536 Net Debt / Adjusted EBITDAre Ratio 5.81x Adjusted EBITDAre (annualized)* $ 267,536 Cash interest expense (annualized)* 62,712 Interest Coverage Ratio 4.27x Total interest expense $ 16,269 Capitalized interest 134 Secured debt principal amortization 408 Total fixed charges $ 16,811 Adjusted EBITDAre 66,884 Adjusted EBITDAre / Fixed Charge Coverage Ratio 3.98x Implied equity market cap $ 3,564,235 Redeemable equity 24,882 Total debt (3) 1,560,754 Total Firm Value 5,149,871 Total debt (3) $ 1,560,754 Total assets 4,185,005 Total Debt / Total Assets 37.3% Total Debt / Total Firm Value 30.3% Weighted average common shares 182,672,863 Weighted average unvested restricted common shares and share units 646,533 Weighted average OP Units not owned by DOC 5,177,912 Weighted Average Common Shares and OP Units - Diluted 188,497,308 COVENANT PERFORMANCE Required March 31, 2019 Total Leverage Ratio ≤ 60.0% 36.0% Total Secured Leverage Ratio ≤ 40.0% 2.3% Maintenance of Unencumbered Assets ≥ 1.5x 2.8x Consolidated Debt Service (Trailing Four Quarters) ≥ 1.5x 4.0x (1) Annualized rate based on $0.23 quarterly dividend for the quarter ending March 31, 2019. 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 $18.81 as of March 29, 2019. (3) Unadjusted for unamortized fair value adjustments, unamortized discount, and unamortized deferred financing costs. * Amounts are annualized and actual results 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 8 Assets Slated for Disposition) SAME-STORE PORTFOLIO ANALYSIS Same-Store Cash NOI, Portfolio Same-Store 88.9% Quarter Ended Quarter Ended March 31, 2019 March 31, 2019 Number of healthcare properties (1) 250 238 Gross leasable area (1) 13,588,961 12,599,039 Cash NOI $ 69,602 $ 61,852 % Leased (1) 95.4% 95.7% Other Cash SAME-STORE PORTFOLIO PERFORMANCE NOI, 11.1% Year-Over-Year Comparison Sequential Comparison Q1'19 Q1'18 Change Q1'19 Q4'18 Change Number of healthcare properties 238 238 — 238 238 — Gross leasable area 12,599,039 12,599,039 — 12,599,039 12,599,039 — % Leased 95.7% 96.5% -80 bps 95.7% 95.6% 10 bps Rental revenues 91,699 88,426 +3.7% 91,699 92,227 (0.6)% Operating expenses (29,847) (27,462) +8.7% (29,847) (29,918) (0.2)% Same-Store Cash NOI 61,852 60,964 +1.5% 61,852 62,309 (0.7)% Cash NOI from: Assets slated for disposition 2,500 2,252 +11.0% 2,500 2,411 3.7% Repositioning assets — — — — — — Assets not held for all periods 3,625 5,003 3,625 3,472 Interest income and other 1,625 1,528 1,625 1,745 Cash NOI 69,602 69,747 69,602 69,937 TENANT OCCUPANCY (1) Quarter Ended Percentage of Total GLA March 31, 2019 March 31, 2019 Total GLA Total square feet beginning of quarter 13,624,598 100.3 % Acquired GLA (2) 17,306 0.1 % Disposed GLA (3) (52,943) (0.4)% Total square feet end of quarter 13,588,961 100.0 % Leased GLA Leased GLA beginning of quarter 13,036,512 95.9 % Expirations (186,833) (1.4)% Renewals 138,074 1.0 % Retention Rate 74% New leases commencing in quarter 33,353 0.2 % Net absorption / (vacancy loss) (15,406) (0.1)% Leased GLA end of quarter 12,968,163 95.4 % (1) Excludes the Company's corporate office building. (2) Includes addition and remeasurements of existing properties totaling 17,306 square feet. (3) Includes 2 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) QUARTERLY INVESTMENTS Acquisition First Year Purchase Property Location Date Cash Yield % Leased Price GLA Denton Construction Loan Draw (1) Denton, TX 1/18/2019 5.5% — $ 5,028 — Addition - West TN ASC Jackson, TN 1/31/2019 7.0% 100.0% 4,271 13,798 Columbus Term Loan Columbus, OH 2/13/2019 8.5% — 15,000 — Total / Weighted Average 7.6% 100.0% $ 24,299 13,798 (1) The Company's construction loan bears interest at a rate of 5.50% during construction and 6.25% following substantial completion. An aggregate $15.5 million has been committed to this facility, which includes a fixed purchase option exercisable at an expected yield of 6.0%. ASSETS SLATED FOR DISPOSITION Held for Sale Other Total Number of Properties 2 6 8 Number of States 2 3 4 Total Gross Leasable Area 52,943 320,270 373,213 13

PORTFOLIO GEOGRAPHIC DISTRIBUTION (As of March 31, 2019) TOP TEN STATES Texas, 14% State GLA Texas 1,880,974 Georgia 1,042,328 Other, 31% Georgia, 8% Indiana 998,831 Nebraska 979,303 Kentucky 976,620 Indiana, 7% Minnesota 810,301 Arizona 733,791 Tennessee 706,805 New York, 5% Nebraska, 7% Ohio 650,319 New York 613,520 Ohio, 5% Kentucky, 7% Other 4,196,169 Tennessee, 5% Minnesota, 6% Total 13,588,961 Arizona, 5% 14

PORTFOLIO DIVERSIFICATION (As of March 31, 2019) Coverage # of Properties GLA % of Total % Leased Ratio(1) Single-tenant MOBs 112 4,872,314 35.8% 98.8% N/A Multi-tenant MOBs 129 8,017,503 59.0% 94.1% N/A Specialty Hospitals 6 388,792 2.9% 77.6% 4.2x LTACHs 3 310,352 2.3% 100.0% 1.3x Total 250 13,588,961 100.0% 95.4% THREE MONTHS ENDED MARCH 31, 2019 Campus Proximity Lease Type (Based on Cash NOI) (Based on Annualized Base Revenue) On-Campus / Affiliated, Absolute 88% Net, 15% NNN, 78% Gross, Off-Campus, 1% 12% Modified Gross, 6% Building Type Section 603 Asset Mix (Based on Cash NOI) (Based on Annualized Base Revenue) Specialty Hospital, 5% LTACH, 2% 603 Assets, 17% Non-603 Assets, 83% MOB, 93% (1) Adjusted for the exclusion of 2 Hospital assets slated for disposition and the El Paso Specialty Hospital 15

LEASING RELATIONSHIPS AND EXPIRATION SCHEDULE (As of March 31, 2019, $ in thousands) INVESTMENT GRADE TENANCY (1) % of Total Credit Rating Leased % of Leased Annualized Annualized Relationship (Moody's / S&P) GLA GLA Base Rent Base Rent CommonSpirit Health (2) Baa1/BBB+ 3,331,871 25.7% $ 58,846 20.5% Ascension Health Aa2/AA+ 532,425 4.1% 11,507 4.0% Baylor Scott and White Health Aa3/AA- 268,639 2.1% 7,770 2.7% McKesson Corporation Baa2/BBB+ 260,085 2.0% 6,932 2.4% HonorHealth A2/NA 243,482 1.9% 5,979 2.1% Trinity Health Aa3/AA- 200,549 1.5% 4,718 1.6% Other Investment Grade Relationships 2,035,465 15.7% 47,464 16.7% Total 6,872,516 53.0% $ 143,216 50.0% TOP 10 TENANTS BY ABR Weighted Avg. % of Total Remaining Leased % of Leased Annualized Annualized Tenant Lease Term GLA GLA Base Rent Base Rent CommonSpirit - CHI - Nebraska 7.6 895,138 6.9% $ 16,390 5.7% CommonSpirit - CHI - KentuckyOne 7.0 752,480 5.8% 13,579 4.7% Northside Hospital (3) 11.0 475,571 3.7% 10,098 3.5% Baylor Scott and White Health 6.8 268,639 2.1% 7,770 2.7% Ascension - St. Vincent's - Indianapolis 8.0 357,110 2.7% 7,384 2.6% US Oncology 6.1 260,085 2.0% 6,932 2.4% CommonSpirit - CHI - St. Alexius (ND) 7.3 362,284 2.8% 6,391 2.2% HonorHealth 10.8 243,482 1.9% 5,979 2.1% Great Falls Clinic 16.3 185,085 1.4% 5,415 1.9% Holston Medical Group 16.8 273,706 2.1% 5,002 1.8% Total / Weighted Average 8.9 4,073,580 31.4% $ 84,940 29.6% LEASE EXPIRATION SCHEDULE Expiration Expiring Expiring Lease % of Total Expiring Lease % of Total Average Rent Year Leases GLA GLA ABR ABR per SF 2019 76 261,126 1.9% $ 5,821 2.0% $22.29 2020 120 475,088 3.5% 10,253 3.6% 21.58 2021 150 596,164 4.4% 12,734 4.4% 21.36 2022 104 640,112 4.7% 16,296 5.7% 25.46 2023 111 604,551 4.4% 13,744 4.8% 22.73 2024 72 781,583 5.8% 16,234 5.7% 20.77 2025 133 923,496 6.8% 21,898 7.6% 23.71 2026 121 3,545,403 26.1% 72,008 25.1% 20.31 2027 69 1,192,916 8.8% 25,305 8.8% 21.21 2028 68 1,313,498 9.7% 31,151 10.9% 23.72 Thereafter 82 2,570,806 18.8% 60,112 21.0% 23.38 MTM 35 63,420 0.5% 1,133 0.4% 17.88 Vacant 620,798 4.6% Total / W.A. 1,141 13,588,691 100% $ 286,689 100% $22.11 (1) Represents direct leases to investment grade entities and their subsidiaries. Parent rating used where direct tenant is not rated. (2) The combined CommonSpirit Health system has yet to obtain a credit rating following the completion of their previously disclosed merger. The presented Baa1 / BBB+ ratings are reflective of the those previously applicable to Catholic Health Initiatives. (3) On February 12, 2019, Northside Hospital and Gwinnett Health System announced the regulatory approval of their previously disclosed merger. The combined Northside-Gwinnett system represents approximately 4.5% of Company ABR as of March 31, 2019. 16

CONSOLIDATED BALANCE SHEETS (In thousands, except share data) March 31, December 31, 2019 2018 ASSETS (unaudited) Investment properties: Land and improvements $ 210,542 $ 211,253 Building and improvements 3,627,825 3,623,962 Tenant improvements 43,213 36,497 Acquired lease intangibles 386,707 452,384 4,268,287 4,324,096 Accumulated depreciation (443,814) (411,052) Net real estate property 3,824,473 3,913,044 Real estate held for sale 9,038 — Right-of-use lease asset, net 126,250 — Real estate loans receivable 75,474 55,659 Investment in unconsolidated entities 1,331 1,330 Net real estate investments 4,036,566 3,970,033 Cash and cash equivalents 5,048 19,161 Tenant receivables, net 10,566 8,881 Other assets 132,825 144,759 Total assets $ 4,185,005 $ 4,142,834 LIABILITIES AND EQUITY Liabilities: Credit facility $ 478,892 $ 457,388 Notes payable 967,161 966,961 Mortgage debt 99,608 108,504 Accounts payable 3,513 3,886 Dividends and distributions payable 44,335 43,821 Accrued expenses and other liabilities 56,088 76,282 Lease liability 60,864 — Acquired lease intangibles, net 7,336 13,585 Total liabilities 1,717,797 1,670,427 Redeemable noncontrolling interests - Series A Preferred Units and partially owned properties 24,882 24,747 Equity: Common shares, $0.01 par value, 500,000,000 common shares authorized, 184,307,910 and 182,416,007 common shares issued and outstanding as of March 31, 2019 and December 31, 2018, respectively 1,843 1,824 Additional paid-in capital 2,822,520 2,791,555 Accumulated deficit (460,357) (428,307) Accumulated other comprehensive income 10,957 14,433 Total shareholders' equity 2,374,963 2,379,505 Noncontrolling interests: Operating Partnership 66,668 67,477 Partially owned properties 695 678 Total noncontrolling interest 67,363 68,155 Total equity 2,442,326 2,447,660 Total liabilities and equity $ 4,185,005 $ 4,142,834 17

CONSOLIDATED STATEMENTS OF INCOME (Unaudited an in thousands, except share and per share data) Three Months Ended March 31, 2019 2018 Revenues: Rental revenues $ 77,083 $ 78,887 Expense recoveries 26,042 24,308 Interest income on real estate loans and other 2,243 2,028 Total revenues 105,368 105,223 Expenses: Interest expense 16,269 16,494 General and administrative 8,972 8,459 Operating expenses 32,208 30,459 Depreciation and amortization 36,449 38,576 Total expenses 93,898 93,988 Income before equity in income of unconsolidated entities and gain on sale of investment properties, net: 11,470 11,235 Equity in income of unconsolidated entities 30 28 Gain on sale of investment properties, net — 69 Net income 11,500 11,332 Net income attributable to noncontrolling interests: Operating Partnership (305) (313) Partially owned properties (138) (111) Net income attributable to controlling interest 11,057 10,908 Preferred distributions (284) (487) Net income attributable to common shareholders $ 10,773 $ 10,421 Net income per share: Basic $ 0.06 $ 0.06 Diluted $ 0.06 $ 0.06 Weighted average common shares Basic 182,672,863 181,809,570 Diluted 188,497,308 187,317,243 Dividends and distributions declared per common share and OP Unit $ 0.23 $ 0.23 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 March 2019 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 Cash Net Operating Income (NOI): Same-Store Cash NOI is a non-GAAP financial measure which excludes from Cash NOI assets not held for the entire preceding five quarters, assets slated for disposition, and other normalizing items not specifically related to the same-store property portfolio. Management considers Same-Store Cash NOI a supplemental measure because it allows investors, analysts, and Company management to measure unlevered property-level operating results. Our use of the term Same-Store 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. Same-Store Portfolio: The same-store portfolio consists of medical properties held by the Company for the entire preceding five quarters 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