EX-99.2 4 a13-23735_2ex99d2.htm EX-99.2

Exhibit 99.2

 

Pro Forma Condensed Consolidated Balance Sheet

June 30, 2013

(Unaudited)

(In thousands, except share and per share data)

 

 

 

Pro Forma
Physicians
Realty Trust
Prior to
Acquisition

 

Previously
Reported
Acquisition of
6800 Preston
Road

 

Previously
Reported
Acquisition of
Crescent City
Property

 

Acquisition
of East El
Paso
Property

 

Pro Forma
Reflecting
Acquisitions

 

 

 

(unaudited)

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

Real estate investments

 

 

 

 

 

 

 

 

 

 

 

Income producing property

 

$

90,085

 

$

11,689

 

$

34,208

 

$

28,127

(1)

$

164,109

 

Tenant improvements

 

5,192

 

—

 

—

 

—

 

5,192

 

Property under development

 

675

 

—

 

—

 

—

 

675

 

Land

 

15,464

 

3,370

 

—

 

3,780

 

22,614

 

 

 

111,416

 

15,059

 

34,208

 

31,907

 

192,590

 

Accumulated depreciation

 

(18,043

)

—

 

—

 

—

 

(18,043

)

Real estate investments, net

 

93,373

 

15,059

 

34,208

 

31,907

 

174,547

 

Cash and cash equivalents

 

88,324

 

(18,200

)

(6,700

)

(40,645

)(2)

22,779

 

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

 

3,292

 

8,093

(1)

19,407

 

Other assets

 

3,276

 

—

 

—

 

1,000

(3)

4,276

 

Total Assets

 

$

191,961

 

—

 

$

30,800

 

$

355

 

$

223,116

 

LIABILITES AND EQUITY

 

 

 

 

 

 

 

 

 

 

 

Accounts Payable

 

458

 

—

 

—

 

—

 

458

 

Accrued expenses and other liabilities

 

1,272

 

—

 

—

 

400

(4)

1,672

 

Derivative liabilities

 

453

 

—

 

—

 

—

 

453

 

Debt

 

46,902

 

—

 

19,850

 

—

 

66,752

 

Total Liabilities

 

49,085

 

—

 

19,850

 

400

 

69,335

 

Shareholders equity

 

125,132

 

—

 

(585

)

(45

)(5)

124,502

 

Noncontrolling interest in operating partnership

 

18,254

 

—

 

11,535

 

—

 

29,789

 

Noncontrolling interest in Predecsssor

 

(510

)

—

 

—

 

—

 

(510

)

Total Equity

 

142,876

 

—

 

10,950

 

(45

)

153,781

 

Total Liabilities and Equity

 

$

191,961

 

—

 

$

30,800

 

$

355

 

$

223,116

 

 

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 the East El Paso medical office building and post-acute care specialty hospital at El Paso, Texas (“East El Paso Property”) as if the purchase had occurred on June 30, 2013 and our previously reported acquisitions of  6800 Preston Road and Crescent City Property, reported on Form 8-K on September 18, 2013 and August 30, 2013, respectively, and Form 8-K/A on October 30, 2013, November 1, 2013 and November 8, 2013. The pro forma balance sheet of the Company prior to the acquisitions of the East El Paso Property, 6800 Preston Road and Crescent City Property 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 the East El Paso Property 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 income producing property and in-place leases.

2.              Represents adjustment to reflect cash used to acquire the East El Paso Property.

3.              Represents a lease inducement used to acquire the East El Paso Property.

4.              Represents the tenant’s security deposit

5.              Represents acquisition costs incurred and paid upon closing the transaction

 


 

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

 

Previously
Reported
Acquisition
of 6800
Preston
Road

 

Previously
Reported
Acquisition
of Crescent
City
Property

 

Acquisition
of El Paso
Property

 

Pro Forma
Reflecting
Acquisition

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

Rental revenues

 

$

5,032

 

$

817

 

$

1,048

 

—

 

$

6,897

 

Expenses recoveries

 

1,601

 

156

 

90

 

—

 

1,847

 

Other revenues

 

5

 

—

 

—

 

—

 

5

 

Total Revenues

 

6,638

 

973

 

1,138

 

—

 

8,749

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

General and administrative

 

1,421

 

—

 

—

 

—

 

1,421

 

Operations expenses

 

2,524

 

156

 

90

 

—

 

2,770

 

Depreciation and amortization

 

2,014

 

403

 

467

 

$

724

(1)

3,608

 

Acquisition Expense

 

—

 

—

 

585

 

45

(2)

630

 

Total expenses

 

5,959

 

671

 

1,142

 

769

 

8,429

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income/(loss)

 

679

 

414

 

(4

)

(769

)

320

 

Interest expense

 

1,251

 

—

 

298

 

 

 

1,549

 

Change in fair value of derivatives, net

 

(190

)

—

 

—

 

—

 

(190

)

Net (loss)/ income

 

(382

)

414

 

(302

)

(769

)

(1,039

)

Less: Net (income)/loss attributiable
To noncontrolling interests

 

(132

)

(77

)

71

 

181

(3)

43

 

Net (loss)/income attributable to shareholders

 

$

(514

)

$

337

 

$

(231

)

$

(588

)

$

(996

)

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per share

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.04

)

 

 

 

 

 

 

$

(0.08

)

Diluted

 

$

(0.04

)

 

 

 

 

 

 

$

(0.08

)

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares:

 

 

 

 

 

 

 

 

 

 

 

Basic

 

11,753,597

 

 

 

 

 

 

 

11,753,597

 

Diluted

 

14,747,597

 

 

 

954,877

 

 

 

15,702,474

 

 

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

 

Previously
Reported
Acquisition
of 6800
Preston
Road

 

Previously
Reported
Acquisition
of Crescent
City
Property

 

Acquisition
of East El
Paso
Property

 

Pro Forma
Reflecting
Acquisitions

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

Rental revenues

 

$

9,821

 

$

1,093

 

$

2,104

 

—

 

$

13,018

 

Expenses recoveries

 

3,111

 

302

 

180

 

—

 

3,593

 

Other revenues

 

15

 

—

 

—

 

—

 

15

 

Total revenues

 

12,947

 

1,395

 

2,284

 

—

 

16,626

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

General and administrative

 

2,760

 

—

 

—

 

—

 

2,760

 

Operations expenses

 

4,758

 

302

 

180

 

—

 

5,240

 

Depreciation and amortization

 

4,051

 

806

 

934

 

$

1,448

(1)

7,239

 

Impairment losses

 

936

 

—

 

—

 

—

 

936

 

Acquisition expenses

 

—

 

—

 

585

 

45

(2)

630

 

Total expenses

 

12,505

 

1,108

 

1,699

 

1,493

 

16,805

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

442

 

287

 

585

 

(1,493

)

(179

)

Interest expense

 

2,684

 

—

 

596

 

—

 

3,280

 

Change in fair value of derivatives, net

 

(122

)

—

 

—

 

—

 

(122

)

Net (loss)/income

 

(2,120

)

287

 

(11

)

(1,493

)

(3,337

)

Less: Net (income)/loss attributable to Noncontrolling interests

 

(169

)

(53

)

3

 

352

(3)

133

 

Net (loss)/income attributable to shareholders

 

$

(2,289

)

$

234

 

$

(8

)

$

(1,141

)

$

(3,204

)

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per share

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.22

)

 

 

 

 

 

 

$

(0.31

)

Diluted

 

$

(0.22

)

 

 

 

 

 

 

$

(0.31

)

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

10,434,782

 

 

 

 

 

 

 

10,434,782

 

Diluted

 

13,428,782

 

 

 

954,877

 

 

 

14,383,659

 

 

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 East El Paso medical office building and post-acute care specialty hospital at El Paso, Texas (“East El Paso Property”) and our previously reported acquisitions of 6800 Preston Road and Crescent City Property, reported on Form 8-K on September 18, 2013 and August 30, 2013, respectively, and Form 8-K/A on October 30, 2013, November 1, 2013 and November 8, 2013,  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 acquisitions of East El Paso Property, 6800 Preston Road and Crescent City Property, 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 acquisitions of East El Paso Property, 6800 Preston Road and Crescent City Property, 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 depreciation expense over a 35 or 36 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 leases over the remaining life of the leases.

2.              Represents acquisition costs incurred and paid upon the closing of the transaction

3.              Represents adjustment to deduct noncontrolling interest income from net loss to arrive at net loss available to common shareholders