John Thomas, president and CEO of Physicians Realty Trust (NYSE: DOC), joined REIT.com for a video interview at REITWeek 2017: NAREIT’s Investor Forum at the New York Hilton Midtown.
Physicians Realty Trust made nearly $250 million of investments in the first quarter. Thomas described the market for medical office buildings as “very robust” right now. The amount of capital pouring in to the medical office building market from foreign investors and REIT investors “couldn’t be better,” he added.
Thomas noted that since the company’s initial public offering (IPO) almost four years ago, its cost of capital has improved every quarter. Since the IPO, Physicians Realty Trust has had eight follow-on offerings, he noted. Today, the company holds a little more than $3.5 billion in assets, compared with about $125 million in assets at the time of the IPO.
As for uncertainty in the outlook for federal health care legislation, Thomas pointed out that commercial insurance and employer-based insurance are still the primary drivers of income to the physicians and hospitals that lease space. In the near term, there should be no negative impact on Physician Realty’s business, he added.