SmallCap Informer REIT Pick Featured on TheStreet.com
One of the recommendations from the SmallCap Informer stock newsletter was included in a roundup of medical property investments on TheStreet.com
Five experts selected their favorite REITs that specialize in healthcare and medical facilities for an article "Healthy REITs: 7 Ways to Invest in Medical Facilities." The article begins, "Healthcare REITs present investors with a market that is supported by strong demographics -- an aging population and advancing medical technologies -- as well as favorable fundamentals, including relatively low valuations and above-average yields."
Doug Gerlach, editor-in-chief of the SmallCap Informer, wrote about his recent pick, Physicians Realty Trust:
Physicians Realty Trust (DOC) announced results for the fourth quarter and fiscal year ended Dec. 31, 2020. While the equity markets were volatile, Physicians Realty Trust ended the year with the best total shareholder return of any public REIT with a significant medical office portfolio.
Fourth-quarter revenue was reported at $111.4 million, up 3.7% over the prior-year period. Funds from operations (FFO) per share were flat at $0.26. As of Feb. 22, 2021, 99.6% of fourth quarter rent and 99.3% of January rent had been collected, including 100% of amounts due under deferred agreements. For the full year, revenues were up 5.3% to $437.5 million, while FFO/S were up 2.0% to $1.03.
John T. Thomas, President and CEO, commented, "We ended 2020 with the lowest outstanding accounts receivable balance we have ever had as a percentage of revenue and an occupancy rate of 96%, the highest of all public owners of medical office facilities. While the equity market was volatile, we ended the year with the best total shareholder return of any public REIT with a significant medical office portfolio."
During the year, the company took advantage of market conditions to sell shares, adding 19.5 shares to its weighted average share totals compared to 2019. Without the additional dilution, FFO/S would have been up around 13% for the year.
Physicians Realty Trust is an effective utilizer of capital, so proceeds from the additional shares should reap benefits down the road. The 2021 outlook includes closing on between $400 million and $600 million of real estate investments.