John Thomas, president and CEO of Physicians Realty Trust (NYSE: DOC), participated in a video interview at Nareit’s REITworld: 2019 Annual Conference in Los Angeles.
Thomas discussed Physicians Realty Trust’s positive resolution with LifeCare Facilities, which previously operated its three long-term acute care hospitals, following that company’s bankruptcy. He said the REIT has fully recovered, with all leases “assumed as-is,” and was even repaid for all legal costs.
Thomas also said that he expects medical office buildings to fuel a lot of growth for Physicians Realty Trust in the near-term.
“Real estate, and the medical office buildings within real estate, has proven itself out, time and time again,” he said. “That’s attracting a lot of capital from a lot of sources all around the world.”
Turning to 2020 trends, Thomas said regardless of what Congress may decide regarding the Affordable Care Act (ACA), “the bottom line is about $5 trillion is going to be spent on health care in the United States.” Since incentives push care toward the outpatient setting, Physicians Realty Trust is well-positioned, Thomas said, because that’s what the REIT invests in.