Physicians Realty Trust

Greetings, ladies and gentlemen, and welcome to Physicians Realty Trust's third quarter 2020 earnings conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. Should anyone require operator assistance, please press star zero on your telephone keypad. It is now my pleasure to introduce your host, Mr. Brad Page. Thank you, sir. You may begin.

Thank you. Good morning and welcome to the Physicians Realty Trust third quarter 2020 earnings conference call and webcast. Joining me today are John Thomas, Chief Executive Officer, Jeff Tyler, Chief Financial Officer, Deanie Taylor, Chief Investment Officer, Mark Fine, Executive Vice President of Asset Management, John Lucey, Chief Accounting and Administrative Officer, Lori Becker, Senior Vice President, Controller, and Dan Klein, Deputy Chief Investment Officer. During this call, John Thomas will provide a summary of the company's activities and performance for the third quarter of 2020, and year to date, as well as our thoughts for the remainder of 2020. Jeff Tyler will review our financial results for the third quarter of 2020. Then Mark Fine will provide a summary of our operations for the third quarter of 2020. Following that, we will open the call for questions. Today's call will contain forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. They are based on the current beliefs of management and information currently available to us. Our actual results will be affected by known and unknown risks, trends, uncertainties, and factors that are beyond our control or ability to predict. Although we believe our assumptions are reasonable, our forward-looking statements are not guarantees of future performance. Our actual results could differ materially from our current expectations and those anticipated or implied in such forward-looking statements. For a more detailed description of potential risks and other important factors that could cause actual results that differ from those contained in any forward-looking statements, please refer to our filings with the Securities and Exchange Commission. With that, I would now like to turn the call over to the company's CEO, John Thomas. John?

Thank you, Brad. Thank you for joining us this morning. Physicians Realty Trust had another strong quarter with tenants open, operating, and providing high-quality healthcare services. Substantially, all providers that lease space from us have stabilized and are paying their contractual rent and obligations, as we have collected over 98.4% of our third quarter rent and are now near 99% for the second quarter. We continue to view medical office as the most resilient class of real estate in the market, and our portfolio of medical office buildings delivered outstanding results in this quarter. This includes the physician joint venture tenant that we mentioned last quarter. After struggling to operate and pay rent at the height of the pandemic in April and May, they are now back in their offices and have remained current on rent since September. We're pleased to share that we've agreed to a formal payment plan with this tenant for all back rent and charges due, obtaining multi-year extensions on a substantial portion of their leases in the process. Our continued emphasis on portfolio quality has distinguished us in this time of uncertainty as we believe our actual cash rent collections lead the industry. The resilience of our tenants and assets has led to more recognition. We are excited that Fitch Ratings assigned a corporate credit rating of BBB with a stable outlook to Physicians Realty Trust. In their commentary, Fitch noted that Physicians offers durable cash flows relative to the broader REIT universe, and that the coronavirus pandemic has not resulted in any meaningful erosion in Doc's credit profile. We look forward to working with Fitch and the other agencies as we continue to grow prudently, strengthening what we believe is our already best-in-class balance sheet. During the quarter, we completed the acquisition of an off-campus cancer center fully leased to Ascension St. Vincent Evansville Ministry at a 5.8% first-year yield. This asset pairs strong tenant credit with high acuity care, all while still being accretive to shareholders, perfectly representing our commitment to investment quality. We continue to be selective on new investments, building our pipeline for the year ahead with assets that meet our disciplined acquisition criteria. Our near-term pipeline includes the newly completed off-campus outpatient care facility leased to Ascension Sacred Heart Ministry, anchored by their new ASC in Pensacola, Florida. This doc-funded development is already welcoming patients, having opened ahead of schedule despite being constructed during the pandemic and enduring a direct hit from Hurricane Sally. We have an option to purchase this facility from our development partner at a first-year yield of 6.25%, which we expect to execute by the end of 2020, pending our normal closing conditions. We're starting to see more opportunities to acquire or finance medical office developments pre-leased to creditworthy tenants as a result of our longstanding health system relationships. We've recently initiated two new financings for developments to commence in 2021 and anticipate more to come. On the home front, we've been cautious with our team, with many of our colleagues living in states experiencing an increase in COVID cases. We're still working primarily from home, and as evidenced by our results, our team has answered the call and is performing very well, doing whatever it takes to manage work, family, and in many cases, virtual learning for their families. Jeff will now discuss our financial results, followed by Mark Thine with a report from operations. Jeff?