The downgrade is based on valuation. Additionally, the firm cited aggressive 2017 consensus estimates, the Fly reports.
Wall Street is expecting the Milwaukee-based healthcare real estate investment trust to report funds from operations of $1.26 per share on revenue of $323 million for fiscal 2017.
Funds from operations is a key metric in the REIT industry, which takes net income and adds back items such as depreciation and amortization.
The company is engaged in acquiring, owning and managing healthcare properties that are leased to physicians, hospitals and healthcare delivery systems.
Shares of Physicians Realty were lower in late-afternoon trading on Friday.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of B on the stock.
The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, good cash flow from operations and solid stock price performance.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: DOC