Greetings, ladies and gentlemen, and welcome to the Physicians Realty Trust third quarter 2021 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 during this conference, please press star zero on your telephone keypad. It is now my pleasure to introduce your host, Brad Page. Thank you. You may begin. Thank you. Good morning and welcome to the Physicians Realty Trust third quarter 2021 earnings conference call and webcast. Joining me today are John Thomas, Chief Executive Officer, Jeff Theiler, Chief Financial Officer, Jeannie Taylor, Chief Investment Officer, Mark Theine, Executive Vice President, Asset Management, John Luthi, Chief Accounting Officer, Lori Becker, Senior Vice President and Controller, Dan Klein, Deputy Chief Investment Officer, and Amy Hall, Senior Vice President, Leasing and Physician Strategy. During this call, John Thomas will provide a summary of the company's activities and performance for the third quarter of 2021 and year to date, as well as our strategic focus for the remainder of 2021. Jeff Theiler will review our financial results for the third quarter of 2021, then Mark Thein will provide a summary of our operations for the third quarter. 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 the 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 more detailed description of potential risks and other important factors that could cause actual results to 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. I have to admit, this may be the most anticipated earnings call I've ever had the opportunity to participate in. Physicians Realty Trust had a landmark quarter in acquisitions, operations, and balance sheet management. The momentum has continued into the fourth quarter as subsequent to quarter end, we sold our three LTACs at a cash gain, continuing our progress to eventually become a REIT with 100% of our revenue generated by investments in outpatient medical office facilities. Despite the Delta variant, COVID spikes, each of our facilities have remained open continuously since the summer of 2020, and rental income collection rates remain near 100%. In March 2021, we shared our expectations of completing $400 million-$600 million in new investments during the year, including both acquisitions and development financing. It would have been easy to complete good investments proratably throughout the year, but our investors are more interested in DOC making great investments with better long-term accretive returns resulting from our relationship-focused strategy rather than just meeting a calendar. We appreciate your confidence through the first half of the year while we completed our negotiations with Landmark and were patient with our great partner in Scottsdale, HonorHealth, while they completed the construction of two of the most recent additions to the DOC portfolio. On October 1, we announced our agreement to purchase the 15-building Landmark Healthcare Facilities portfolio for $764 million. The Class A portfolio includes 1.4 million sq ft with an average building size of 97,000 sq ft. Each asset is affiliated with a premier health system, including 10 new system relationships to DOC. Those include the investment-grade rated University of Florida Health, Beaumont Health, and McLaren Health Care, who combine for 40% of the portfolio's tenancy. In total, 74% of the Landmark portfolio is leased to an investment-grade health system, and the portfolio carries over seven years of average remaining lease term, each providing great stability for years to come. Additionally, the transaction includes a purchase option on another 46,000 sq ft on-campus MOB that Landmark has developed currently with DOC mezzanine capital and their own equity and construction financing. That MOB will be completed in 2022. Upon completion of this acquisition, our share of leases to investment-grade health systems as a percentage of our gross leasable space will increase from 64% today to 65% on a pro forma basis. We are excited to add these relationships and assets to our portfolio and are well on into the final due diligence and closing process, including the transition of property management responsibilities where applicable. While one or more health systems could exercise their rights to match our purchase price or other conditions could prevent us from closing, we do not anticipate any material reduction in this investment opportunity and expect to close the Landmark acquisitions by the end of the year. The two new HonorHealth medical facilities we acquired were self-developed by HonorHealth. The HonorHealth Neuroscience facility, located on their flagship Osborn campus, has 109,000 rentable sq ft and is 100% leased with a weighted average remaining lease term of 7.7 years. The HonorHealth Sonoran Crossing Medical Office facility is 60,000 sq ft on the campus and attached to HonorHealth's new Sonoran Crossing Medical Center and serves that high-growth sub-market northwest of Phoenix. These investments expand our total investments anchored by HonorHealth to eight facilities totaling approximately 459,000 sq ft. We expect to continue to grow with this outstanding investment-grade health system and the physicians aligned with them in the future. With these announced investments, we now exceed $1 billion of new investments closed or under contract during 2021. DOC's growth has been fueled by our relationship with healthcare systems and physician groups and the developers working directly with those providers. Those developers include Cambridge Holdings, The Davis Group, Landmark, Meridian, Catalyst, and others. While there's nothing wrong with private ownership of medical office facilities, there's a unique advantage public companies like DOC have with long-term ownership of medical office facilities aligned with best-in-class healthcare providers. Most of our largest clients are faith-based or community nonprofit tax-exempt organizations who are focused on access to healthcare for the next 50 years, not the interest rate in the next five years. Our stability and long-term approach to capital and ownership and laser-focused best-in-industry customer service and property management provide us a measurable advantage to sourcing and completing our investments, growth strategy, and goals. We believe investors want access to a publicly traded, best-in-class, pure play medical office REIT, and we humbly believe all the data identifies Physicians Realty Trust, our board, and our management as the best option for that investment. Before I turn the call over to Jeff to review our financials, we are also excited and humbled to announce that DOC is among Modern Healthcare's 2021 Best Places to Work. Our ranking of 26 in the supplier category represents our debut appearance, earning this distinction while serving as the highest rated healthcare real estate provider among the honorees. DOC wouldn't be voted a Best Place to Work without our exceptional team, and today I want to recognize our very own Mark Dukes, VP of Asset Management, who just began his one-year term as Chairman of BOMA International. His leadership and attention to DOC will not waver, but this recognition and leadership to the commercial real estate industry is a tribute to his professional and personal excellence, and we are blessed to have him on our leadership team. We'd also like to recognize Mark Theine, our EVP of Asset Management and one of DOC's founders, who was recently named by GlobeSt to the 50 Under 40 list for people to know in the U.S. commercial real estate industry. Congratulations, Mark and Mark, and keep up the outstanding leadership to DOC and to the providers in the communities we serve. Jeff? Thank you, John. In the third quarter of 2021, the company generated normalized funds from operations of $58 million, or $0.26 Cents per share. Our normalized funds available for distribution were $55 million, an increase of 5.3% over the comparable quarter of last year, and our FAD per share was $0.24. In the third quarter, the company delivered consistent performance with same-store NOI growth of 2.5% and same-store occupancy down 50 basis points year-over-year as strong lease spreads have offset a handful of deliberate non-renewals. The portfolio saw no material impacts at all from the Delta variant, and we continue to collect over 99% of all contractual rents, and accounts receivable balances remain at the lowest levels in the history of the company. Looking back over the past two years, although we were optimistic that the portfolio would weather the pandemic better than most real estate asset classes, it has performed so well it has even surprised us. As we continue to invest in building the best tenant base in the industry, refine our credit monitoring process, and dispose of our limited non-core assets like we did with our recently announced LTAC sale, we see no reason why we won't continue to perform even better over the long term. The company closed $109 million of investments this quarter at an average first-year unlevered yield of 5.4%, highlighted by the off-market acquisition of a newly constructed on-campus MOB with HonorHealth. In October, the company closed another $100 million of deals and announced the $764 million Landmark transaction. This 15-building portfolio is 74% leased to investment-grade tenants, and not only provides an exceptionally high quality portfolio today, but also opens the door to 10 new health system relationships for future growth. Since many of our acquisitions are repeat deals, often directly with health systems, we would expect this latest transaction to provide future benefits as well. We continue to see enhanced demand for medical office properties as private market participants aggressively pursue the product. However, the difficulty of prying these assets away from health system owners is significant, which enhances the value of our existing portfolio as well as our platform. We had a busy quarter on the financing side of the business. We amended and extended our revolving credit facility, pushing the term out until 2025 and reducing our current costs by 5 basis points. We also took advantage of our upgraded rating profile from Moody's and S&P to issue $500 million in 10-year bonds with a 2.625% coupon. We used a portion of the proceeds to repay our $250 million term loan and expect to continue to build out our long-term debt curve over time as we grow the company. As of now, we have only $84 million of debt coming due through 2025, providing exceptional financial stability for our investors. We issued $53 million on the ATM in October at an average price of $18.61 as we see the pipeline continue to build for next year. Additionally, we recently signed a contract to sell our three long-term acute care assets for $62 million, finally eliminating some non-core assets that we bought in the early years of the company. These were assets that went through the bankruptcy process in 2019 and generated some temporary negative sentiment. While we achieved a 9% unlevered IRR on our LTAC investment, we prefer the risk-adjusted returns of medical office buildings over the long term and capitalize on the opportunity to sharpen our pure play MOB focus. Following this transaction, medical office buildings will now provide 96% of our overall NOI, an increase of 2% from last quarter. Turning to other relevant portfolio metrics, our third quarter G&A came in at $9.5 million, and recurring capital expenditures were $6.7 million for the quarter. Both are trending towards our full year guidance of $36 million-$38 million for G&A and $25 million-$27 million for CapEx. I will now turn the call over to Mark to walk through some of our portfolio statistics in more detail. Mark? Thanks, Jeff. DOC continues to benefit from our growing operating platform and strong relationships with healthcare partners. Before highlighting our Q3 performance, I'd like to start by recognizing two outstanding recent achievements by the team. First, Physicians Realty Trust was selected by the Institute of Real Estate Management as the 2021 Accredited Management Organization of the Year. The AMO accreditation was established 75 years ago to advance best practices in real estate management at the company level, with 560 worldwide firms holding this prestigious accreditation. Today, we are exceptionally proud to be at the very top of that list as the 2021 Accredited Management Organization of the Year. Second, we recently announced our inaugural GRESB score of 75 in their 2021 real estate assessment, outperforming the international score of 73 out of 100. In addition, we received a Green Star designation recognizing the team's work implementing and measuring sustainability policies. As these achievements indicate, DOC remains committed to acting as an ESG leader as we accelerate our external growth momentum. We continue to expand our in-house property management leasing platforms during the third quarter, laying the groundwork for additional cost efficiencies to deliver long-term enterprise value for our shareholders. As an example, our recent off-market acquisition of two newly constructed facilities occupied by HonorHealth are our fourteenth and fifteenth real estate investments in the Phoenix, Arizona, MSA. Through our in-house management teams, we are excited to expand this trusted partnership with HonorHealth, while also realizing the benefit of our management infrastructure through additional property management fees. Looking forward, our management structure is scalable and will continue to benefit from concentration as we invest in top-quality properties and portfolios like the Landmark portfolio that is scheduled to close in Q4. In the third quarter, we saw the power of our platform and portfolio generate both internal and external growth opportunities, led by same-store growth of 2.5%, leasing spreads of +4.4%, and an in-house leasing team that saved over $4 million year-to-date in commissions that would have otherwise been paid to outside leasing brokers, assuming a conservative 3% fee. Our same-store MOB portfolio, which again does not exclude repositioning assets, generated cash NOI growth of 2.5% for Q3 2021. The NOI growth was driven primarily by a year-over-year 2.5% increase in base rental revenue. Operating expenses were up 7.3% and offset by an 8.4% increase in operating expense recovery revenue, once again demonstrating the insulated nature of our triple net leases. Year-over-year operating expenses were up $2.2 million overall, primarily due to a $0.8 million increase in property insurance costs and a $0.7 million increase in real estate taxes. Same-store occupancy year-over-year was down approximately 50 basis points as we intentionally vacated several suites this quarter to make room for anchor tenants with stronger credit to expand to better rates and lease terms. Year-to-date, our leasing team has completed nearly 800,000 sq ft of leasing activity with an 80% retention rate and positive 2.7% leasing spreads. In Q3 specifically, tenant retention was 72% across 179,000 sq ft of lease renewals, with cash renewal leasing spreads of +4.4%. To further drive future internal growth, 80% of the leases executed this quarter contained an annual rent escalation of at least 2.5%. Notably, these results were also achieved with limited leasing costs totaling $1.47 per sq ft per year across the whole volume of consolidated leasing activity, a figure that's much more efficient than industry averages. Our successful net effective rent outcomes are driven by the quality of our assets and backed by the market pressures driving increases in rental rates and construction pricing. As we look at our portfolio moving forward, DOC's investments are diversified geographically, with no one state accounting for more than 15% of rent and no single tenant accounting for more than 5.7%. Additionally, our investment-grade quality tenants improved to 64.4% in the third quarter from 62.5% in the second quarter as a result of the LifeCare portfolio disposition and HonorHealth investment. These metrics and all of our portfolio quality metrics will further improve with the acquisition of the Class A Landmark portfolio that is 74% leased to investment-grade tenants and includes 10 new hospital relationships. The team is focused on the due diligence and integration of this portfolio by the end of the year, and overall, very excited about growing the DOC portfolio from $5 billion in real estate investments at the beginning of 2021 to nearly $6 billion in real estate investments by year-end. With that, I'll now turn the call back over to John. Thank you, Mark. Now we'll take your questions. Thank you. Ladies and gentlemen, if you'd like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up the handset before pressing the star keys. One moment please while we poll for questions. Our first question comes from the line of John Kim with BMO Capital Markets. Please proceed with your question. Thanks. Good morning. I'm here with Juan Sanabria. There's a lot going on in medical office today, including HTA announcing its strategic review this morning. I was wondering if you can comment on your interest level in participating in the potential sale process versus other opportunities that you're seeing in the market. You know, John, we're focused on, you know, our core business and acquiring new, you know, investments and investment grade quality medical office buildings and financing developments of those facilities. Again, we see every opportunity that's, you know, kind of publicly available and evaluate those, but we don't comment on them till we reach a conclusion. Thank you for the question. Okay. Well, last quarter you mentioned, John, cap rates for high quality portfolios going in the low fives. I'm wondering if you can update us on this quarter on what you're seeing for those types of assets. Yeah. I think we've seen. We think the Landmark portfolio is the highest quality portfolio we've seen in executing on that in an off-market basis. We are seeing portfolios trade, frankly, well below in the mid-fours now today. Again, high quality assets and, you know, kind of sizable portfolios. We think the Landmark portfolio we acquired at an attractive price and frankly better than an openly marketed process. Yeah, I was gonna ask about that. The 4.9 was negotiated a while ago. Where would that trade today if it were to be sold? Can you also comment on the ROFRs? You mentioned you weren't that concerned about it, but how many assets or what percentage of the portfolio have that option? Yeah. These were all built or purpose developed, you know, for those health systems. I think one was acquired by Landmark in the process of their relationship with that health system. All of them have ROFRs and where they're on the ground leases. We or Landmark or both have visited with all the health systems and, you know, starting to receive waivers back and, you know, verbally and in writing. They still have some time left in their review process, but we expect substantially all of them, if not all of them, to waive those ROFRs and complete the acquisitions. Your other question. We're seeing rents, you know, of assets sold in the open market, portfolios sold in the open market in the mid-fours. You know, again, we think the Landmark portfolio with, specifically with the quality of the buildings, the age of the buildings, the walls of the buildings, the health system credits involved. You know, 74% of these buildings are leased to investment grade health system credits. We, you know, we think it would trade in the mid-4s, if not low 4s. Got it. That's very helpful. Thank you. Yeah, thank you. Thank you. Our next question comes from the line of Jordan Sadler with KeyBanc Capital Markets. Please proceed with your question. Great. I think the previous guidance was for $400 million-$600 million. I guess that's over with. You guys are blowing through that. Any sort of goalposts you'd offer up for the sort of remainder of the year or just on a look-forward basis, John? Or you know just kind of trying to frame up what the investment opportunity looks like. It really seemed to heat up in the third quarter. Yeah. Well, there's, depending on how you count, there's a lot out there available, you know, in the market, and we're still evaluating some opportunities for the year end. I don't think we're prepared to kind of update guidance, if you will, as we did blow through the $400 million-$600 million. You know, included in that is, you know, we did announce, you know, over $1 billion of investments, which in the biggest chunk is Landmark, of course. We do have three projects still under construction. One of those will break ground the first week of December. It's 100% leased. Beautiful facility. We think it'll be an award winner next year and in the Minneapolis market. Got one in the New York MSA under construction with Landmark, and we now have an option to acquire that building when it's completed next year. Then we have a project with an investment-grade tenant in the Dallas-Fort Worth market. You know, I think we'll see a little bit, you know, more completed this year, and then first quarter pipeline is really building up nicely. Okay. Can you speak to sort of the financing of all this? Maybe, Jeff, you can kind of frame up where you are on leverage right now on a pro forma basis for all this activity and sort of where you expect to be, or how you expect to get back to sort of the target range. Sure. Thanks, Jordan. So if you look at our third quarter on an enterprise debt to EBITDA, we were about 5.0 times. Pro forma for all this activity, assuming Landmark closes completely in the fourth quarter, that would bring us to about 6x debt to EBITDA. You know, so that's certainly at the higher end of where we've operated, historically. However, you know, if you look at our portfolio, we're 65% investment-grade tenancy. We collected 99% of all our rents during kind of a terrible pandemic. We're effectively 98% triple net lease, so there's no, you know, major operating margin risk in there. We only have 4%-6% of our leases expiring each year over the next three years, and we've prepaid pretty much all of our debt, so we only have $84 million of debt to refinance through 2025. You know, we think we're in an incredibly stable financial position. Will leverage trend down from 6x pro forma? Yeah, it probably will. Are we nervous about carrying 6x debt to EBITDA for some period of time? No, absolutely not. We'll be opportunistic as we look at funding. It will depend a lot on the upcoming pipeline, and we'll just kind of continue to evaluate it. Okay. That's helpful. Maybe, JC, just you know coming back to you know Landmark, but also you know the HonorHealth transactions, including one of the more recent ones, this new construction asset at the Scottsdale end that looks like a 4.5 cap. Can you maybe speak to the merit of investing in MOBs sub-5.75 cap rates? Maybe it would help explaining you know the difference in the growth profile of the HonorHealth assets versus the Atkins portfolio, for example, where you're getting you know a 5.5. Thank you. Understood, Jordan. You know, the Phoenix market is really as hot as it can be, pardon the pun, with Phoenix. You know, we think the rents at that in those two buildings are below market at this point, and certainly in the current market. We have some shorter term leases in those buildings. We have a nice long WAL overall in both those buildings, but we have some shorter term leases where we can move some things around and take advantage of some of those, you know, kind of mark to market in that building. We think the kind of opportunity set there in particular is much stronger than that stated first-year cap rate. We have opportunities for more development and more, you know, acquisitions with HonorHealth itself directly. These were off-market transactions. They were under construction, you know, kind of went into a pre-sale arrangement with them midyear and it, you know, just took until now to get them completed and CO'd and rent commencing. Kind of the rationale for that. I think Jeff can walk through the math in, you know, kind of with the rent bumps, and again, our expectation of moving some rents out more aggressively in parts of those buildings, they'll be accretive, you know, in 2022. Okay. Thanks for that. Yeah. Thank you. Our next question comes from the line of Jason Idoine with RBC. Please proceed with your question. Hey, good morning, guys. It sounds like you have an opportunity to potentially drive rent growth higher. You've been holding back some space. I was wondering if you could quantify that opportunity. Yeah, sure, Jason, this is Mark. Yeah, as you mentioned, and we said in our prepared remarks, we deliberately did not renew a few leases this quarter to make room for our anchor tenants, in many cases, investment-grade rated hospital systems to expand and take over the full building. That's a specific example in Louisville that we've just seen. You know, year-over-year, some of the other spots where we're really picking our spots and focused on markets like Phoenix, Orlando, Dallas, where market rental rates are increasing more than the averages. You know, for us, our portfolio is 96% leased, but there's opportunities, you know, for maybe 1%, 2% of the portfolio here to really pick our spots and try and drive rental increases and market rents, you know, higher than normal. Okay. As we look into the acquisition pipeline, I guess looking ahead to 2022, obviously 2021 is very back-end weighted. Should we expect anything similar in 2022, given you're, you know, still gonna be digesting the Landmark deal? Or will it be more evenly spread out throughout the year? Yeah, it's a good question. As I said in my introductory remarks, you know, you like to do it, you know, ratably during the year. I think back to one of the other questions, you know, we'll issue guidance for next year, you know, with our next earnings call. We've been deploying, you know, $500 million-$1 billion almost every year. Again, most years it's more ratable throughout the year. This one just, we just had the opportunity to capture a, you know, a very large transaction and also two development projects that just took longer to complete than we expected. I think hopefully we'll see something more ratable. The first quarter is building up, you know, very nicely right now, and we're in negotiations with a couple more development projects which have not commenced yet. They will probably commence in the first quarter, and we'll be able to include that in our numbers for next year. Okay, thanks. Thank you. Our next question comes from the line of Richard Hill with Morgan Stanley. Please proceed with your question. Hey, good morning, guys. One of the things that we've noticed and certainly in our due diligence channel checks is there's a lot more interest from private equity in medical office. I'm wondering as you think about that, you know, how do you think about those competitive pressures? How do you drive accretive growth? You know, would you consider levering up here a little bit given your balance sheet? Just sort of thinking about, you know, a pretty strong backdrop for medical office and how your capital allocations drive through that. Yeah, if you look at institutional real estate investors, whether they be public or private, and you look across all commercial real estate asset classes, I mean, I don't think there's another one maybe, but cell towers that collected virtually all their rents in 2020 and many are still suffering through, you know, significant declines in occupancy and high wage labor costs, which don't affect us. It, you know, it's as you're allocating capital in an institutional investor, it's no surprise that, you know, some of the world's biggest private equity firms and non-traded REITs are gonna be very attractive to the medical office space and, you know, and thus driving, you know, appreciation of those assets. Again, you know, 4, 5's probably the, you know, kind of FMV of best in class assets, you know, generally a 4 or 5 cap rate going in. We look at our investments on a long-term IRR basis. You know, again, those investors that have a three to five-year horizon, whether it be private equity or other private capital, we think we compete very well against that. We think the health systems are looking for long-term owners with, you know, the transparency of a public company and the, you know, kind of the business model of a public company that's, you know, wants to be, you know, create situations, relationships that are win-win. We think that's how come we keep getting repeat business with the likes of HonorHealth and others. you know, we've had a great long-term relationship with Landmark, and they finally decided just to sell us all their assets. you know, we think that's the kind of the opportunity. PE firms are welcome to the party. we have great relationships with most of them and, you know, look from time to time with, you know, potential joint venture opportunities. you know, we for the most part think adding assets to our balance sheet is our primary focus. Jeff, you gonna ask Yeah. That's helpful, guys. If I may, I appreciate the color on the unlevered yields for Landmark, but any thoughts or anything you might be willing to share on accretion in 2022 or 2023? I recognize it's early, I recognize you haven't guided, so if the answer's no, I completely get it, but figured I'd ask. Yeah. The answer is generally no, but the Landmark portfolio does have some more vacancy across the portfolio than our portfolio. We're already working on and evaluating you know lease-up opportunities for that space. I mean, we're talking about 200 or 300 basis points. There's some shorter leases in some of those buildings. As we talked about before, market rents are moving you know more aggressively up in those markets. We expect to take full advantage of those opportunities with those health systems and source new developments with those health systems. Got it. Thank you, guys. Sure. Thank you. Ladies and gentlemen, at this time, there are no further questions. I would like to turn the floor back to management for closing comments. We appreciate everybody joining us this morning. We look forward to follow-up calls and and Nareit, unfortunately Zooms next week, but we look forward to seeing you know, one way or the other soon. Thanks for participating. Thank you. Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may disconnect your lines at this time.