Physicians Realty Trust
NYSE:DOC

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Physicians Realty Trust
NYSE:DOC
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Price: 16.74 USD -1.65% Market Closed
Market Cap: 11.6B USD

Physicians Realty Trust
Investor Relations

In the intricate web of healthcare and real estate, Physicians Realty Trust weaves a unique narrative. Born in 2013, this real estate investment trust (REIT) has carved a niche as a diligent custodian of healthcare facilities across the United States. The company's primary mission is to acquire, develop, and manage high-quality healthcare properties, focusing predominantly on medical office buildings. These are not just any buildings; they're crucial infrastructural elements that serve as the points of intersection between surgery centers, clinical operations, and diagnostic services, all of which are vital to the functioning of modern healthcare systems. By entering into long-term lease agreements with a diverse range of healthcare providers, Physicians Realty Trust ensures a steady income stream, tethering its fortunes to the robust demand for healthcare services.

Revenue for Physicians Realty Trust flows primarily from these leasing arrangements, crafting its financial stability upon the bedrock of reliable occupancy rates and strategic location choices. The company's portfolio is designed to meet the evolving needs of healthcare providers, offering spaces that are essential for physicians to deliver quality patient care. Beyond the typical landlord-tenant dynamic, Physicians Realty Trust partners with healthcare institutions to support their growth and operational efficiency, engendering a symbiotic relationship. This emphasis on collaboration and adaptability allows the trust to not just collect rents, but to actively contribute to the healthcare ecosystem, thereby bolstering its own value proposition in the market. Through this model, Physicians Realty Trust thrives on not just the physical spaces it owns, but on the essential services its tenants provide, anchoring its financial success in the health of both its properties and the communities they serve.

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Last Earnings Call
Fiscal Period
Q3 2025
Call Date
Oct 24, 2025
AI Summary
Q3 2025

Lab Leasing Pipeline: The lab leasing pipeline has doubled since the start of the year, with improved sentiment driving more new leasing activity and a healthier mix of tenants.

Outpatient Medical Strength: Outpatient medical fundamentals remain strong, with high leasing volumes, positive re-leasing spreads, and continued demand from a broad buyer pool for non-core asset sales.

Capital Recycling: Healthpeak is working on outpatient medical asset sales that could generate over $1 billion in proceeds, with plans to reinvest into higher-return lab opportunities and outpatient development.

Occupancy Trends: Lab occupancy is expected to decline in the short term due to known expirations, potentially trending into the high 70% range before recovering in the second half of 2026 as leasing momentum builds.

Guidance Reaffirmed: The company reaffirmed its FFO as adjusted and same-store growth guidance, and reduced interest expense and G&A guidance by $10 million due to better note pricing, productivity gains, and merger synergies.

Technology & Efficiency: Technology initiatives, including AI and automation, are improving efficiency and keeping G&A below 2019 levels despite inflation and portfolio growth.

Tenant Health Improving: The tenant watch list has shrunk meaningfully in the past 60 days, and management is more confident in tenants' ability to raise capital as sector sentiment rebounds.

CCRC Performance: The CCRC portfolio continues to perform strongly, with NOI up over 50% since buyout, double-digit growth this year, and sequential occupancy gains.

Key Financials
FFO as adjusted per share
$0.46
AFFO per share
$0.42
Portfolio same-store growth (year-to-date)
3.8%
CCRC NOI growth (year-to-date)
over 50% (since acquisition); double-digit this year
CCRC sequential occupancy change
up 70 bps
CCRC year-over-year occupancy change
up 150 bps
CCRC cash NOI growth
9.4%
Outpatient medical leases executed (Q3)
1.2 million sq ft
Outpatient medical re-leasing spreads
5.4% positive
Outpatient medical occupancy
91%
Outpatient medical new leasing (Q3)
270,000 sq ft
Outpatient medical TIs on renewals
$1.41 per sq ft per year
Year-to-date outpatient leasing volume
3.2 million sq ft
Outpatient medical leasing commissions (year-to-date)
$0.87 per sq ft per year
Additional outpatient leases executed in October
123,000 sq ft
Outpatient leases under LOI
895,000 sq ft
Lab leases executed (Q3)
339,000 sq ft (45% new)
Lab renewals re-leasing spread
5% positive
Year-to-date lab leasing volume
1.1 million sq ft
Lab occupancy
81%
Lab lease escalators
3–3.5%
Lab TIs on renewals
$1.30 per sq ft per year
Lab rents on renewals
$65 per sq ft
Lab TIs on new leases (excluding two development leases)
$5.50 per sq ft per year
Lab leases executed in October
22,000 sq ft
Lab leases under LOI
291,000 sq ft
Lab leasing pipeline
1.8 million sq ft (doubled since Q1)
Net debt to adjusted EBITDA
5.3x
Liquidity
$2.7 billion
Senior unsecured notes issued
$500 million at 4.75% (7-year, 92 bps spread, no concession)
Asset sales and loan repayments (year-to-date)
$158 million
Dispositions under purchase and sale agreement
$204 million
G&A expense (projected for year)
$90 million
Earnings Call Recording
Other Earnings Calls

Management

Mr. Scott M. Brinker
President, CEO & Director
No Bio Available
Mr. Scott R. Bohn
Chief Development Officer & Head of Lab
No Bio Available
Mr. Adam G. Mabry
Chief Investment Officer
No Bio Available
Mr. Shawn G. Johnston
Executive VP & Chief Accounting Officer
No Bio Available
Mr. Andrew Johns CFA
Senior Vice President of Investor Relations
No Bio Available
Mr. Jeffrey H. Miller
General Counsel
No Bio Available
Ms. Lisa A. Alonso
Executive VP & Chief Human Resources Officer
No Bio Available
Mr. James A. Croy
Senior Vice President of Leasing - Outpatient Medical
No Bio Available
Mr. Antonio Acevedo
Senior Vice President of Asset Management - Outpatient Medical
No Bio Available
Mr. Jameson J. Bennett
Senior Vice President of Outpatient Medical Finance
No Bio Available

Contacts

Address
WISCONSIN
Milwaukee
309 N Water St Ste 500
Contacts
+14143675600.0
www.docreit.com