Physicians Realty Trust (DOC) Reports Q3 2023 Earnings: Net Income Down 80.6% YoY
Physicians Realty Trust (NYSE:DOC) reported a net income of $12.9 million for Q3 2023, a decrease of 80.6% compared to the same period last year.
The company's total revenue for Q3 2023 was $138.5 million, marking a 5.3% increase from the previous year.
Normalized Funds From Operations (FFO) for the quarter stood at $0.25 per share on a fully diluted basis.
The company completed $16.8 million in investments, including the funding of previous loan commitments.
Physicians Realty Trust (NYSE:DOC) released its Q3 2023 earnings report on October 30, 2023. The company reported a net income of $12.9 million, a significant decrease of 80.6% compared to the same period in 2022. This drop was largely due to a $53.9 million net gain on the sale of investment properties in Q3 2022. Despite the decrease in net income, the company's total revenue for the quarter increased by 5.3% to $138.5 million, compared to the same period last year.
Financial Performance Overview
The company's total expenses for Q3 2023 were $125.4 million, compared to $119.1 million for Q3 2022. The net income attributable to common shareholders for the quarter was $12.3 million, with diluted earnings per share standing at $0.05 based on approximately 249.4 million weighted average common shares and operating partnership units (OP Units) outstanding.
Physicians Realty Trust (NYSE:DOC) reported Funds From Operations (FFO) of $62.8 million for Q3 2023. This figure consisted of net income plus depreciation and amortization on the company's consolidated portfolio of $47.8 million and unconsolidated joint ventures of $2.3 million, offset by $0.2 million of other adjustments. This resulted in an FFO of $0.25 per share on a fully diluted basis.
Investments and Dividends
During the quarter, Physicians Realty Trust (NYSE:DOC) completed $16.8 million in investments, including the funding of previous loan commitments. The company also declared a quarterly dividend of $0.23 per share and OP Unit for Q3 2023, which was paid on October 17, 2023.
Leasing and Sustainability Highlights
The company reported a third quarter weighted average leasing spread of 6.7% on 210,847 renewed square feet with a tenant retention rate of 77% on its consolidated portfolio. In terms of sustainability, the company earned a score of 78 out of 100 and a Green Star designation in the 2023 GRESB Real Estate Assessment for sustainability reporting, representing a 4% year-over-year scoring increase.
Looking Ahead
Despite the significant drop in net income, Physicians Realty Trust (NYSE:DOC) remains committed to its strategic growth plans. The company's increased revenue and continued investments demonstrate its resilience and adaptability in the face of challenges. As the company moves forward, it will continue to focus on enhancing its portfolio and delivering value to its shareholders.
Explore the complete 8-K earnings release (here) from Physicians Realty Trust for further details.
This article first appeared on GuruFocus.
