Physicians Realty Trust at “Perfect Nexus” of Demographic & Health Care Trends

Jeffrey Theiler, CFO of Physicians Realty Trust (NYSE: DOC), joined Nareit in New York for a video interview at REITweek: 2019 Investor Conference.

Theiler discussed the impact of LifeCare Holdings’ recent filing for Chapter 11 bankruptcy. He noted that Physicians Realty owns three facilities operated by LifeCare, which were profitable. Those three assets are the only long-term acute care hospitals the REIT owns, representing less than 2% of overall revenue.

Meanwhile, Theiler observed that faced with an aging baby boomer generation, “health care has fantastic tailwinds going for it.” At the same time, health care systems are also looking to provide services in ancillary locations. “We feel we’re at the perfect nexus of those two trends,” Theiler said.

Theiler also said the company is eyeing plans by CVS Health to create HealthHUBS within CVS stores. He explained that Physicians Realty is focusing on facilities that offer specialized services that can’t be transferred to a drug store.