Money Trends: Physicians Realty Trust IPO enters the $3 trillion health care segment
Where is your Money? Focusing expertise on a market segment that is easily defined, rapidly growing, and responsive to unique forces is the basis of successful investing. REITs (Real Estate Investment Trust) have been a way to have a stake in the real estate market. Today’s REITs have become more focused, bringing in leadership and talent from segments including travel, retail, home and apartment ownership and more. One that focuses on the medical segment is Physicians Realty Trust.
Their team is comprised of health care professionals with over 50 years of experience in health care executive management, real estate acquisition, property development and management, policy and law.
Status: Physicians Realty Trust (NYSE:doc) is currently trading between $11.00 FTWL and $14.63 FTWH and as of 6/6/14 has a market cap of nearly $500M. Their dividend and yield is 6.3%*.
Overview: Headquartered in Milwaukee, Physicians Realty completed their $135 million IPO in July 2013 at an initial price of $11.50. Their business model invests in “properties typically on a campus with a hospital or other healthcare facilities or strategically located and affiliated with a hospital or other healthcare facilities.”
Mission: Their mission statement includes “…earn the Trust of physicians, hospitals, and other health care providers by helping them serve their patients, partners, payers and communities with innovative and sustainable health care facilities and capital, to help them increase the quality of their care and to lower the cost of that care… ”
CEO and President John Thomas “U.S. health care is a $3 trillion business today. By all estimations, no matter what government policy we have, it’s growing into a $4 trillion industry by 2020. We just want to collect a billion dollars of rent. So we’re at the bottom of that funnel.*”
Any look at innovation in the medical, health and nutrition markets must include its facilities and real estate. This recent IPO is one to watch.
For more about Physicians Realty Trust visit their website: docreit.com
Also view: Physicians Realty Trust completes $21.4M in acquisitions (5/19/2014)
Video Interview with CEO and President John Thomas: reit.com
Let me know if you have IPOs that you would like to share. I appreciate your comments*.
Dan Charobee, MBA
*(comments are screened prior to publication)
*Fidelity Investments, Seeking Alpha, Yahoo Finance (6/20/2014) * REIT.com (11/13/2013)
Disclosure: I have taken a position in this equity.
FTWL – Fifty Two Week Low FTWH – Fifty Two Week High
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