11/13/2013 | by
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Physicians Realty Trust Pleased With Reception

John Thomas, president and CEO of Physicians Realty Trust (NYSE: DOC), joined REIT.com for a CEO Spotlight interview at REITWorld 2013: NAREITís Annual Convention for All Things REIT at the San Francisco Marriott Marquis. 

Physicians Realty Trust completed its $120 million dollar IPO in July. Thomas described how the IPO went and what it means for his company going forward. 

"We're up about 10 percent so far, so we're pleased. The market has been very receptive, and we've gotten a lot of great feedback," he said.

Thomas also discussed the strategic reasoning behind the timing of the IPO.

"We're focused on the medical office building and small specialty hospital investments. We could invest in other asset classes, but we're focused on medical office buildings," he said. "The average medical office building transaction is about $20 million dollars. The big three REITs, in particular, have gotten so big, a $20 million dollar investment is way beneath where they can spend their time and attention. So we saw a gap in the market, a very fragmented market." 

Thomas also talked about trends in the health care industry and their affect on his company.

"U.S. health care is a $3 trillion business today," he said. "By all estimations, no matter what government policy we have, it's growing into a $4 trillion industry by 2020. We just want to collect a billion dollars of rent. So we're at the bottom of that funnel."

Thomas said that in the future, Physician Realty Trust will continue to invest across the country, but will remain focused on the U.S. health care market.