EX-99.2 4 a13-23054_1ex99d2.htm EX-99.2

Exhibit 99.2

 

Pro Forma Condensed Consolidated Balance Sheet

June 2013

(Unaudited)

(In thousands, except share and per share data)

 

 

 

Pro Forma
Physicians
Realty Trust
Prior to
Acquisition

 

Acquisition of
6800 Preston
Road

 

Pro Forma
Reflecting
Acquisition

 

 

 

(unaudited)

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

Real estate investments:

 

 

 

 

 

 

 

Income producing property

 

$

90,085

 

$

11,689

(1)

$

101,774

 

Tenant improvements

 

5,192

 

—

 

5,192

 

Property under development

 

675

 

—

 

675

 

Land

 

15,464

 

3,370

(1)

18,834

 

 

 

111,416

 

15,059

 

126,475

 

Accumulated depreciation

 

(18,043

)

—

 

(18,043

)

Real estate investments, net

 

93,373

 

15,059

 

108,432

 

Cash and cash equivalents

 

88,324

 

(18,200

)(2)

70,124

 

Accounts receivables (Net of allowance for doubtful accounts of $132 as of June 30, 2013)

 

557

 

—

 

557

 

Deferred costs

 

1,550

 

—

 

1,550

 

Lease intangibles, net

 

4,881

 

3,141

(1)

8,022

 

Other assets

 

3,276

 

—

 

3,276

 

Total Assets

 

$

191,961

 

$

—

 

$

191,961

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

Accounts Payable

 

458

 

—

 

458

 

Accrued expenses and other liabilities

 

1,272

 

—

 

1,272

 

Derivative liabilities

 

453

 

—

 

453

 

Notes payable

 

46,902

 

—

 

46,902

 

Total Liabilities

 

49,085

 

—

 

49,085

 

Shareholders equity

 

125,132

 

—

 

125,132

 

Noncontrolling interest in operating partnership

 

18,254

 

—

 

18,254

 

Noncontrolling interest in Predecsssor

 

(510

)

—

 

(510

)

Total Equity

 

142,876

 

—

 

1,142,876

 

Total Liabilities and Equity

 

$

191,961

 

$

—

 

$

191,961

 

 

See Notes to Unaudited Pro Forma Condensed Consolidated Balance Sheet.

 


 

Notes to Unaudited Pro Forma Condensed Consolidated Balance Sheet

 

The Unaudited Pro Forma Condensed Consolidated Balance Sheet of Physicians Realty Trust (the “Company”) as of June 30, 2013 reflects the acquisition of the property known as 6800 Preston Road (“6800 Preston Road”) as if the purchase had occurred on June 30, 2013. The pro forma balance sheet of the Company prior to the acquisition of 6800 Preston Road has been derived from the unaudited pro forma consolidated balance sheet included in the Company’s Quarterly Report on Form 10-Q as filed on August 30, 2013. This pro forma balance sheet reflects completion of the Company’s initial public offering and formation transactions.

 

Information regarding the Company’s historical operations, organizational structure, initial public offering and formation transactions is provided in more detail in the Company’s final prospectus dated July 18, 2013 filed pursuant to Rule 424 (b) under the Securities Act of 1933.

 

Notes and Management Assumptions

 

1.         The acquisition of 6800 Preston Road was accounted for using preliminary estimates of the fair value of the tangible and intangible assets acquired and liabilities assumed in connection with the acquisition and are therefore subject to change. The fair value of the real estate acquired was determined on an “as if vacant” basis and the cost of the property was allocated between land, income producing property and in-place leases.

2.         Represents adjustment to reflect cash used to acquire 6800 Preston Road.

 


 

Pro Forma Condensed Consolidated Statement of Operations

Six Months Ended June 30, 2013

(Unaudited)

(In thousands, except share and per share data)

 

 

 

Pro Forma
Physicians
Realty Trust
Prior to
Acquisition

 

Acquisition
of 6800
Preston
Road

 

Pro Forma
Reflecting
Acquisition

 

Revenues:

 

 

 

 

 

 

 

Rental revenues

 

$

5,032

 

$

817

(1)

$

5,849

 

Expenses recoveries

 

1,601

 

156

(2)

1,757

 

Other revenues

 

5

 

—

 

5

 

Total Revenues

 

6,638

 

973

 

7,611

 

Expenses:

 

 

 

 

 

 

 

General and administrative

 

1,421

 

—

 

1,421

 

Operations expenses

 

2,524

 

156

(2)

2,680

 

Depreciation and amortization

 

2,014

 

403

(3)

2,417

 

Total expenses

 

5,959

 

559

 

6,518

 

 

 

 

 

 

 

 

 

Operating income

 

679

 

414

 

1,093

 

Interest expense

 

1,251

 

—

 

1,251

 

Change in fair value of derivatives, net

 

(190

)

—

 

(190

)

Net loss

 

(382

)

414

 

32

 

Less: Net loss attributable to noncontrolling interests

 

(132

)

(77

)

(209

)

Net loss

 

$

(514

)

$

337

 

$

(177

)

 

 

 

 

 

 

 

 

Net loss per share

 

 

 

 

 

 

 

Basic

 

$

(0.04

)

 

 

$

(0.02

)

Diluted

 

$

(0.04

)

 

 

$

(0.01

)

 

 

 

 

 

 

 

 

Weighted average common shares:

 

 

 

 

 

 

 

Basic

 

11,753,597

 

 

 

11,753,597

 

Diluted

 

14,747,597

 

 

 

14,747,597

 

 

See Notes to Unaudited Pro Forma Condensed Consolidated Statement of Operations.

 


 

Pro Forma Condensed Consolidated Statement of Operations

For the Year Ended December 31, 2012

(Unaudited)

(In thousands, except share and per share data)

 

 

 

Pro Forma
Physicians
Realty Trust
Prior to
Acquisition

 

Acquisition
of 6800
Preston
Road

 

Pro Forma
Reflecting
Acquisition

 

Revenues:

 

 

 

 

 

 

 

Rental revenues

 

$

9,821

 

$

1,093

(1)

$

10,914

 

Expenses recoveries

 

3,111

 

302

(2)

3,413

 

Other revenues

 

15

 

—

 

15

 

Total revenues

 

12,947

 

1,395

 

14,342

 

Expenses:

 

 

 

 

 

 

 

General and administrative

 

2,760

 

—

 

2,760

 

Operations expenses

 

4,758

 

302

(2)

5,060

 

Depreciation and amortization

 

4,051

 

806

(3)

4,857

 

Impairment losses

 

936

 

—

 

936

 

Total expenses

 

12,505

 

1,108

 

13,613

 

 

 

 

 

 

 

 

 

Operating income

 

442

 

287

 

729

 

Interest expense

 

2,684

 

—

 

2,684

 

Change in fair value of derivatives, net

 

(122

)

—

 

(122

)

Net loss

 

(2,120

)

287

 

(1,833

)

Less: Net loss attributable to noncontrolling interests

 

(169

)

(53

)

(222

)

Net loss attributable to shareholders

 

$

(2,289

)

$

234

 

$

(2,055

)

Net loss per share:

 

 

 

 

 

 

 

Basic

 

$

(0.22

)

 

 

$

(0.20

)

Diluted

 

$

(0.17

)

 

 

$

(.0.15

)

 

 

 

 

 

 

 

 

Weighted average common shares:

 

 

 

 

 

 

 

Basic

 

10,434,782

 

 

 

10,434,782

 

Diluted

 

13,428,782

 

 

 

13,428,792

 

 

See Notes to Unaudited Pro Forma Condensed Consolidated Statement of Operations.

 

Basis of Presentation

 

The unaudited Pro Forma Consolidated Statements of Operations of Physicians Realty Trust (“the Company”) for the six months ended June 30, 2013 and the year ended December 31, 2012, reflect the acquisition of the property known as 6800 Preston Road at Plano, Texas (“6800 Preston Road”) as if the purchase had occurred on January 1, 2012 for the year ended December 31, 2012 and on January 1, 2013 for the six months ended June 30, 2013. The pro forma statement of operations of the Company, prior to the acquisition of 6800 Preston Road, for the six months ended June 30, 2013 has been derived from the unaudited pro forma consolidated income statement included in the Company’s Quarterly Report on Form 10-Q as filed on August 30, 2013. The pro forma statement of operations of the Company, prior to the acquisition of 6800 Preston Road, for the year ended December 31, 2012 has been derived from the unaudited pro forma consolidated income statement included in the Company’s Form S-11 Registration Statement dated July 18, 2013. These pro forma statements of operations reflect completion of the Company’s initial public offering and its formation transactions.

 

Information regarding the Company’s historical operations, organizational structure, initial public offering and formation transactions is provided in more detail in the Company’s final prospectus, dated July 18, 2013, filed pursuant to Rule 424(b) under the Securities Act of 1933.

 


 

Notes and Management Assumptions

 

1.         Reflects the effect of straight line rental revenue of the acquired property.

2.         Reflects operating expenses incurred by lessor and reimbursed by tenant.

3.         Reflects depreciation expense over a 25 year period based on the fair value allocated to the income producing property and amortization of the intangible asset relating to the acquired in-place lease over the remaining life of the lease.