Revenue during the quarter surged 100.77 percent to $70.01 million from $34.87 million in the previous year period.

Cost of revenue surged 140.51 percent or $11.19 million during the quarter to $19.16 million. Gross margin for the quarter contracted 452 basis points over the previous year period to 72.63 percent.

Total expenses were $59.74 million for the quarter, up 92.36 percent or $28.69 million from year-ago period. Operating margin for the quarter expanded 373 basis points over the previous year period to 14.67 percent.

Operating income for the quarter was $10.27 million, compared with $3.81 million in the previous year period.

Revenue from real estate activities during the quarter surged 100.77 percent or $35.14 million to $70.01 million.

Income from operating leases during the quarter surged 89.47 percent or $25.18 million to $53.33 million. Revenue from tenant reimbursements was $14.36 million for the quarter, up 146.71 percent or $8.54 million from year-ago period.

Revenue from other real estate activities during the quarter was $2.32 million, up 156.86 percent or $1.42 million from year-ago period.

John T. Thomas, president and chief executive officer of the Trust, commented, "We are very pleased with our third quarter results. While we intentionally slowed down new business development as we focused on the integration of the Catholic Health Initiatives ("CHI") portfolio, we still had a very strong quarter of new business activity with $177 million of new investments, and approximately $30 million of investments already completed in the fourth quarter. We now own more than 10 million square feet that is almost 96% leased for an average lease term of approximately 8.5 years. Our teams attention to detail and focus on tenant satisfaction has produced a remarkable integration of the CHI medical office facilities, and early feedback from physician tenants and the CHI hospitals has been very positive. These efforts and our executive attention to operational excellence, as well as new and renewal leasing, is producing far better results than we could have anticipated this early in the relationship. We are determined to set a new high standard for medical office asset management, which starts with sourcing, underwriting, investing, and then managing our high-quality medical office portfolio."

Investments stood at $43.82 million as on Sep. 30, 2016, up 51.20 percent or $14.84 million from year-ago.

Total assets jumped 80.59 percent or $1,191.82 million to $2,670.65 million on Sep. 30, 2016. On the other hand, total liabilities were at $876.35 million as on Sep. 30, 2016, up 43.49 percent or $265.61 million from year-ago.

Return on assets moved down 11 basis points to 0.39 percent in the quarter. At the same time, return on equity moved up 14 basis points to 0.53 percent in the quarter.