8-K
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
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CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): January 19, 2016
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PHYSICIANS REALTY TRUST
(Exact name of registrant as specified in its charter)
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Maryland
(State or other jurisdiction of incorporation or organization)
001-36007
(Commission File Number)
46-2519850
(I.R.S. Employer Identification No.)

309 N. Water Street, Suite 500
Milwaukee, Wisconsin
(Address of principal executive offices)
53202
(Zip Code)


Registrant’s telephone number, including area code: (414) 367-5600

Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
_________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Item 8.01. Other Events.

During the quarter ended December 31, 2015, Physicians Realty Trust (the "Company") acquired 19 healthcare properties in 11 transactions, as well as 3 condominium units, located in 11 states containing an aggregate of approximately 494,567 net leasable square feet for an aggregate of approximately $142.6 million. In addition, the Company funded 3 mezzanine loan investments and provided 3 advances on 1 construction loan totaling approximately $10.2 million. Investment activity for the quarter ended December 31, 2015 is summarized below:
 
Property(1)
 
 
 
Location
 
Acquisition
Date
 
Square
Footage
 
Purchase
Price 
(in thousands)
Tinseltown Construction Loan
 
(2)
 
Jacksonville, FL
 
 
 

 
$
1,006

Fairhope MOB
 
 
 
Fairhope, AL
 
October 13, 2015
 
35,550

 
$
6,360

Foley MOB
 
 
 
Foley, AL
 
October 13, 2015
 
6,000

 
$
1,318

Foley Venture
 
 
 
Foley, AL
 
October 13, 2015
 
7,500

 
$
1,725

North Okaloosa MOB
 
 
 
Crestview, FL
 
October 13, 2015
 
5,345

 
$
1,714

Commons on North Davis
 
 
 
Pensacola, FL
 
October 13, 2015
 
7,793

 
$
2,186

Sorrento Road
 
 
 
Pensacola, FL
 
October 13, 2015
 
6,000

 
$
1,296

Breakfast Point Medical Park
 
 
 
Panama City, FL
 
October 13, 2015
 
3,500

 
$
965

Panama City Beach
 
 
 
Panama City, FL
 
October 13, 2015
 
2,500

 
$
1,002

Perdido Medical Park
 
 
 
Pensacola, FL
 
October 13, 2015
 
6,000

 
$
1,425

Ft. Walton Beach
 
 
 
Ft. Walton Beach, FL
 
October 13, 2015
 
4,600

 
$
1,702

Panama City
 
 
 
Panama City, FL
 
October 13, 2015
 
2,300

 
$
1,040

Pensacola - Catalyst
 
 
 
Pensacola, FL
 
October 13, 2015
 
6,424

 
$
3,072

Truman Medical Center Mezz Loan
 
(3)
 
Kansas City, MO
 
October 16, 2015
 

 
$
4,500

Arete Surgical Center
 
 
 
Johnstown, CO
 
October 19, 2015
 
15,000

 
$
9,100

Cambridge Professional Center
 
 
 
Waldorf, MD
 
October 30, 2015
 
41,493

 
$
11,550

Great Falls Replacement Surgical Hospital Mezz Loan
 
(4)
 
Great Falls, MT
 
November 2, 2015
 

 
$
4,500

HonorHealth 44th Street
 
 
 
Phoenix, AZ
 
November 13, 2015
 
27,270

 
$
7,163

Mercy Medical Center
 
 
 
Fenton, MO
 
December 1, 2015
 
30,000

 
$
9,850

Nashville MOB
 
(5)
 
Nashville, TN
 
December 17, 2015
 
108,853

 
$
45,440

Wilson Surgery Center Mezz Loan
 
(6)
 
Wilson, NC
 
December 17, 2015
 

 
$
216

Hillside Medical Center - Suite 100
 
 
 
Hanover, PA
 
December 18, 2015
 
16,669

 
$
4,240

Randall Road MOB - Suite 170
 
 
 
Elgin, IL
 
December 21, 2015
 
1,786

 
$
408

KSF Orthopaedic
 
 
 
Houston, TX
 
December 22, 2015
 
49,868

 
$
6,250

Great Falls Clinic
 
 
 
Great Falls, MT
 
December 29, 2015
 
108,000

 
$
24,244

Randall Road MOB - Suite 320
 
 
 
Elgin, IL
 
December 30, 2015
 
2,116

 
$
500

Total
 
 
 
 
 
 
 
494,567

 
$
152,772

 
(1) “MOB” refers to medical office building.
(2) The Company made additional advances on a construction loan to Tinseltown Partners, LLC to fund the renovations and additions of two re-purposed buildings in Jacksonville, Florida. The additional advances total $1.0 million and accrue at an interest rate of 9.0% per year.
(3) The Company made a $4.5 million mezzanine term loan to partially fund the owner’s permanent financing of the 87,500 square foot Truman Medical Center in Kansas City, Missouri.  The loan accrues interest at the rate of 8.02% per year.  We have rights of first offer and first refusal to purchase the property.
(4) The Company made a $4.5 million mezzanine term loan to partially fund the construction of the 63,250 square foot Great Falls Hospital in Great Falls, Montana.  The loan accrues interest at the rate of 9.0% per year.  We have a contract to purchase the property upon completion of construction.
(5) Our operating partnership, Physicians Realty L.P. (the "Operating Partnership") partially funded the purchase price of this acquisition by issuing a total of 91,236 Series A Preferred Units valued at approximately $19.7 million in the aggregate on the

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date of issuance. Holders of the Series A Preferred Units issued in connection with the acquisition of the Nashville MOB are entitled to certain redemption rights under the partnership agreement of the Operating Partnership which allow them to cause the Operating Partnership to redeem the Series A Preferred Units in exchange for cash, or at the Company's option, for common shares, pursuant to a formula provided in the partnership agreement. The investors in the Series A Preferred Units have agreed not cause the Operating Partnership to redeem their Series A Preferred Units prior to December 17, 2016.
(6) The Company made a $0.2 million short term mezzanine loan to partially fund the owner’s acquisition of a 9,890 square foot ambulatory surgery center in Wilson, North Carolina.  The loan accrues interest at the rate of 8.8% per year.

In addition, on January 14, 2016, the Company acquired an additional Randall Road Medical Office Facility condominium unit, located in Elgin, Illinois (the "Randall Road Acquisition"). The suite is 2,645 square feet, 100% occupied, was purchased for $0.7 million, and the first year unlevered cash yield is expected to be approximately 8.1%.     

All of the investments made during the quarterly period ended December 31, 2015, as well as the Randall Road Acquisition, utilized proceeds from the Company's October 2015 follow-on public offering and borrowings under the Company's unsecured credit facility.    

A copy of the Company's press release announcing the transactions discussed in this 8-K is furnished as Exhibit 99.1 to this report.

Item 9.01       Financial Statement and Exhibits
 
(d) 99.1 Press Release, dated January 19, 2016, issued by Physicians Realty Trust
 


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SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 

                        
 Date: January 19, 2016
PHYSICIANS REALTY TRUST
 
 
 
 
 
 
 
 
By:
 
 /s/ John T. Thomas
 
 
 
John T. Thomas
 
 
 
President and Chief Executive Officer




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EXHIBIT INDEX
 
Exhibit No.
 
Description
 
 
 
99.1
 
Press Release, dated January 19, 2016, issued by Physicians Realty Trust


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