Breaking Down Physicians Realty Trust (DOC) Financial Health: Key Insights for Investors

Breaking Down Physicians Realty Trust (DOC) Financial Health: Key Insights for Investors

US | Real Estate | REIT - Healthcare Facilities | NYSE

Physicians Realty Trust (DOC) Bundle

Get Full Bundle:
$12 $7
$12 $7
$12 $7
$12 $7
$25 $15
$12 $7
$12 $7
$12 $7
$12 $7

TOTAL:



Understanding Physicians Realty Trust (DOC) Revenue Streams

Revenue Analysis

Physicians Realty Trust reported total revenue of $536.9 million for the fiscal year 2023, reflecting the company's performance in medical real estate investments.

Revenue Source Amount ($M) Percentage of Total Revenue
Rental Income $504.3 93.9%
Interest Income $22.6 4.2%
Other Income $10.0 1.9%

Key revenue growth metrics for the past three years:

  • 2021 Revenue: $473.2 million
  • 2022 Revenue: $510.5 million
  • 2023 Revenue: $536.9 million

Year-over-year revenue growth rates:

  • 2021 to 2022 Growth: 7.9%
  • 2022 to 2023 Growth: 5.2%
Property Type Number of Properties Rental Revenue ($M)
Medical Office Buildings 264 $378.7
Outpatient Facilities 98 $125.6

Occupancy rate for 2023: 94.6%

Geographic revenue distribution:

  • Midwest: 42%
  • Southeast: 23%
  • Southwest: 18%
  • Northeast: 12%
  • West: 5%



A Deep Dive into Physicians Realty Trust (DOC) Profitability

Profitability Metrics Analysis

Financial performance metrics for the healthcare real estate investment trust reveal critical insights into operational profitability.

Profitability Metric 2023 Value 2022 Value
Gross Profit Margin 72.3% 71.8%
Operating Profit Margin 37.5% 36.2%
Net Profit Margin 22.6% 21.4%

Key profitability performance indicators demonstrate consistent improvement across multiple financial metrics.

  • Gross profit increased by 0.5% year-over-year
  • Operating income grew by 3.6% in 2023
  • Net income margin expanded by 1.2 percentage points
Efficiency Ratio 2023 Metric Industry Benchmark
Return on Equity 6.8% 6.5%
Return on Assets 3.9% 3.7%

Operational efficiency metrics demonstrate performance above industry averages.




Debt vs. Equity: How Physicians Realty Trust (DOC) Finances Its Growth

Debt vs. Equity Structure Analysis

As of Q4 2023, the company's financial structure reveals critical insights into its capital management strategy.

Debt Overview

Debt Category Amount
Total Long-Term Debt $1.47 billion
Short-Term Debt $98.5 million
Total Debt $1.568 billion

Debt Financing Characteristics

  • Debt-to-Equity Ratio: 0.65
  • Weighted Average Interest Rate: 4.3%
  • Credit Rating: BBB from Standard & Poor's

Equity Funding Composition

Equity Type Amount Percentage
Common Stock $2.26 billion 58.4%
Preferred Stock $325 million 8.3%

Recent Financing Activities

  • Recent Bond Issuance: $500 million at 4.25% interest
  • Equity Offering in 2023: $275 million
  • Debt Refinancing: Reduced average interest rate by 0.25%



Assessing Physicians Realty Trust (DOC) Liquidity

Liquidity and Solvency Analysis

The liquidity assessment reveals critical financial metrics for evaluating the company's short-term financial health and operational capabilities.

Liquidity Ratios

Liquidity Metric 2023 Value 2022 Value
Current Ratio 1.15 1.08
Quick Ratio 0.85 0.72

Working Capital Analysis

Working capital trends demonstrate the following characteristics:

  • Total working capital: $87.4 million
  • Year-over-year working capital growth: 7.2%
  • Net working capital margin: 3.6%

Cash Flow Statement Overview

Cash Flow Category Amount (in millions)
Operating Cash Flow $245.6
Investing Cash Flow -$312.9
Financing Cash Flow $78.3

Liquidity Strengths and Potential Concerns

  • Cash and cash equivalents: $52.7 million
  • Debt-to-equity ratio: 0.65
  • Liquid asset coverage: 92%

The financial analysis indicates a stable liquidity position with moderate risk management capabilities.




Is Physicians Realty Trust (DOC) Overvalued or Undervalued?

Valuation Analysis: Is the Stock Overvalued or Undervalued?

The valuation analysis reveals critical insights into the company's current market positioning and financial attractiveness.

Valuation Metric Current Value Industry Benchmark
Price-to-Earnings (P/E) Ratio 16.7x 18.3x
Price-to-Book (P/B) Ratio 1.45x 1.62x
Enterprise Value/EBITDA 14.2x 15.6x
Dividend Yield 5.3% 4.9%

Stock Performance Metrics

  • 12-Month Stock Price Range: $14.22 - $21.67
  • Current Stock Price: $18.45
  • 52-Week Performance: -7.2%

Analyst Recommendations

Recommendation Number of Analysts Percentage
Buy 6 42%
Hold 8 53%
Sell 1 5%

Key Valuation Insights

  • Current market price suggests slight undervaluation
  • Dividend payout ratio: 85%
  • Price-to-earnings ratio below industry average



Key Risks Facing Physicians Realty Trust (DOC)

Risk Factors: Comprehensive Analysis

The company faces multiple critical risk dimensions across operational, financial, and market-related domains.

Market and Competitive Risks

Risk Category Potential Impact Probability
Healthcare Real Estate Market Volatility High Competition 65%
Interest Rate Fluctuations Financing Challenges 55%
Regulatory Compliance Potential Legal Penalties 45%

Operational Risk Factors

  • Property Portfolio Concentration Risk: 62% of assets in specific healthcare segments
  • Tenant Dependency: Top 5 tenants represent 35% of total rental income
  • Geographic Market Exposure: Primarily concentrated in 12 major metropolitan regions

Financial Risk Indicators

Financial risk metrics reveal critical exposure points:

  • Debt-to-Equity Ratio: 0.65
  • Current Liquidity Ratio: 1.2
  • Interest Coverage Ratio: 3.4

External Risk Environment

External Factor Potential Risk Level
Healthcare Policy Changes High
Economic Recession Impact Moderate
Pandemic-Related Disruptions Low-Moderate

Strategic Risk Mitigation

Key strategies include portfolio diversification, continuous asset quality assessment, and maintaining flexible financial structures.




Future Growth Prospects for Physicians Realty Trust (DOC)

Growth Opportunities

The company's growth strategy focuses on strategic real estate investments in the medical sector with precise financial metrics.

Growth Metric 2023 Value Projected 2024 Value
Total Portfolio Size $6.2 billion $6.8 billion
Medical Office Buildings 336 properties 352 properties
Occupancy Rate 96.4% 97.2%

Key Growth Drivers

  • Acquisition strategy targeting medical real estate in high-growth metropolitan areas
  • Expanding portfolio in states with favorable healthcare market conditions
  • Focusing on properties with long-term lease agreements

Investment Expansion Strategy

Region Planned Investment Expected Return
Southeastern United States $450 million 5.7% annual yield
Midwestern Markets $350 million 5.5% annual yield

Financial Growth Projections

Revenue forecast indicates potential 7.2% year-over-year growth, with anticipated funds from operations (FFO) estimated at $240 million for 2024.

Strategic Partnership Potential

  • Exploring collaborative agreements with regional healthcare networks
  • Developing specialized medical real estate investment models
  • Targeting emerging healthcare technology infrastructure investments

DCF model

Physicians Realty Trust (DOC) DCF Excel Template

    5-Year Financial Model

    40+ Charts & Metrics

    DCF & Multiple Valuation

    Free Email Support


Disclaimer

All information, articles, and product details provided on this website are for general informational and educational purposes only. We do not claim any ownership over, nor do we intend to infringe upon, any trademarks, copyrights, logos, brand names, or other intellectual property mentioned or depicted on this site. Such intellectual property remains the property of its respective owners, and any references here are made solely for identification or informational purposes, without implying any affiliation, endorsement, or partnership.

We make no representations or warranties, express or implied, regarding the accuracy, completeness, or suitability of any content or products presented. Nothing on this website should be construed as legal, tax, investment, financial, medical, or other professional advice. In addition, no part of this site—including articles or product references—constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any securities, franchises, or other financial instruments, particularly in jurisdictions where such activity would be unlawful.

All content is of a general nature and may not address the specific circumstances of any individual or entity. It is not a substitute for professional advice or services. Any actions you take based on the information provided here are strictly at your own risk. You accept full responsibility for any decisions or outcomes arising from your use of this website and agree to release us from any liability in connection with your use of, or reliance upon, the content or products found herein.