Physicians Realty Trust (DOC): BCG Matrix [Dec-2025 Updated]

You're digging into the current strategic health of Healthpeak Properties, Inc.-the dominant healthcare REIT that was Physicians Realty Trust (DOC)-and its positioning as of late 2025. We've mapped their assets using the BCG Matrix, showing a portfolio anchored by reliable 'Cash Cows' like their core MOBs, while they actively prune 'Dogs' by targeting $400-$500 million in non-core dispositions this year. The real excitement, though, is in the 'Stars'-their massive Class A MOB footprint riding a projected 7.5% market growth-but don't overlook the capital-hungry 'Question Marks' in Life Sciences and Senior Housing that need serious investment to become future leaders. Dive in to see precisely where Healthpeak is printing money and where its biggest, most uncertain bets are placed.

Background of Physicians Realty Trust (DOC)

You're looking at the current state of Physicians Realty Trust (DOC), but honestly, to understand it in late 2025, we first have to talk about the big change that happened in early 2024. Physicians Realty Trust, which was a self-managed healthcare real estate investment trust (REIT) focused on acquiring, developing, and managing properties leased to doctors and hospitals, completed a major all-stock merger of equals with Healthpeak Properties, Inc. on March 1, 2024.

This transaction valued the combination at approximately $21 billion. The resulting entity now operates under the name "Healthpeak Properties, Inc." but kept the ticker symbol "DOC" on the New York Stock Exchange starting March 4, 2024. This merger was designed to create a leading real estate platform dedicated to healthcare discovery and delivery, blending the strengths of both organizations.

Before the merger, as of December 31, 2023, the portfolio Physicians Realty Trust brought to the table consisted of 278 healthcare properties across 32 states, totaling about 15.6 million net leasable square feet. That portfolio was roughly 94% leased with a weighted average remaining lease term of about 5.1 years. The core strategy for the original DOC was leveraging relationships to find off-market deals and maintain a high-quality, diversified portfolio.

Now, as part of the combined Healthpeak Properties, Inc. (DOC), the platform boasts a portfolio of nearly 50 million to 52 million square feet. A significant portion of this, around 40 million square feet, is concentrated in outpatient medical properties situated in high-growth areas like Dallas, Houston, Nashville, Phoenix, and Denver. The integration efforts have been focused on realizing financial benefits, with total expected synergies now estimated to be north of $65 million.

Looking at the performance data closest to today, the combined company reported a strong Total Same-Store Portfolio Cash (Adjusted) Net Operating Income (NOI) growth of 7.0% for the first quarter ended March 31, 2025. For the full year 2025 guidance, the company reaffirmed its expectation for Total Merger-Combined Same-Store Cash (Adjusted) NOI growth to be in the range of 3.0% - 4.0%. The strategic focus remains heavily on outpatient medical real estate, which benefits from the secular trend of healthcare moving to less expensive, more convenient outpatient settings.

Physicians Realty Trust (DOC) - BCG Matrix: Stars

The Star quadrant represents the business units with high market share in a high-growth market, demanding significant investment to maintain that leadership position. For Physicians Realty Trust, now operating as Healthpeak Properties, Inc. under the ticker DOC following the March 2024 merger, the core Medical Office Building (MOB) segment fits this description perfectly.

This segment is characterized by its focus on Class A Outpatient Medical Buildings (MOBs) situated in markets experiencing strong demographic and demand tailwinds, such as Dallas and Phoenix. The combined entity is now the largest owner of on-campus and affiliated Class A MOBs in the nation. This leadership position is supported by the sheer scale of the asset base dedicated to outpatient care.

The market dynamics strongly support the Star classification. The U.S. healthcare real estate market, which includes MOBs, is projected to grow at a compound annual growth rate of 7.5% from 2025 to 2030. Furthermore, specific projections for outpatient volume growth suggest an increase of 10.6% over the next five years, indicating a high-growth environment where market leaders can solidify their dominance.

The company is actively investing to defend and grow this market share. This investment is visible in the development pipeline, which is highly pre-leased, signaling strong tenant commitment and future cash flow stability. This pipeline of accretive outpatient projects currently exceeds $300 million. This level of capital deployment is necessary to keep pace with the high-growth market and secure future Cash Cow status.

Here are the key statistical and financial metrics defining this Star segment as of the latest available 2025 data:

The strategy here involves continuous investment to ensure the portfolio remains in the top tier of assets, which are often the ones benefiting most from the secular shift away from inpatient care. If Physicians Realty Trust (DOC) successfully executes its development and acquisition strategy, these Stars are positioned to mature into robust Cash Cows as the high-growth market eventually decelerates. The current focus is on maintaining leadership in these key markets, like Dallas and Phoenix, which is a smart move. The firm internalized property management across an additional 14 million square feet planned for 2025, which helps control costs and improve execution on these growth assets, a defintely necessary step.

Key characteristics supporting the Star status include:

• Largest owner of on-campus and affiliated Class A MOBs.
• Concentration in high-growth submarkets.
• Development pipeline exceeding $300 million.
• Benefit from strong projected market growth.

Physicians Realty Trust (DOC) - BCG Matrix: Cash Cows

The assets that fit the Cash Cow quadrant for Physicians Realty Trust, now integrated into Healthpeak Properties, Inc. (trading under the ticker DOC), are the stabilized, core Medical Office Building (MOB) portfolio. These units possess a high market share within the mature healthcare real estate sector and generate consistent, predictable cash flow, requiring minimal new investment to maintain their position.

The foundation of this stability is the stabilized, core MOB portfolio with high occupancy. As of the end of 2023, the portfolio Physicians Realty Trust brought to the merger consisted of approximately 15.6 million net leasable square feet, which was approximately 94% leased. Post-merger, Healthpeak's outpatient medical portfolio stands at 92.2% occupied. This high occupancy demonstrates the essential nature and demand for these facilities.

Cash flow reliability is further cemented by the structure of the tenant base and lease agreements. You are looking at long-term, triple-net leases with investment-grade health systems, providing a durable income stream. The weighted average remaining lease term for the pre-merger portfolio was approximately 5.1 years. Healthpeak's combined outpatient medical properties feature an average lease time of 5 years and 8 months. This structure minimizes near-term rollover risk and aligns the properties with creditworthy tenants.

The benefits of the 2024 merger are translating directly into enhanced cash flow, supporting the Cash Cow thesis. You can expect total merger synergies north of $65 million, significantly boosting Net Operating Income (NOI) post-2025. The search data suggests this is composed of nearly $40 million in run-rate synergies expected by year-end 2024, with more than $20 million additionally by 2025. This realization of cost savings is a direct increase to the cash flow generated by these mature assets.

For the 2025 fiscal year, the expected return from this core segment is steady and highly visible, represented by the projected 2025 Total Merger-Combined Same-Store Cash NOI growth of 3.0%-4.0%. This predictable growth rate, derived from embedded lease escalators and modest occupancy gains in a mature market, is the definition of milking a Cash Cow for steady returns.

Here are the key metrics supporting the Cash Cow classification of the stabilized MOB assets:

The stability of these assets allows for capital to be deployed elsewhere, such as funding Question Marks or Stars. The focus here is on maintenance and efficiency, not aggressive expansion.

• Maintain high occupancy levels across the core MOB base.
• Realize the remaining merger-related cost efficiencies.
• Benefit from contractual rent escalators embedded in leases.
• Support the corporate structure through reliable cash distribution.

The internalization of property management, which drove a significant portion of the expected synergies, is an investment into supporting infrastructure designed to improve efficiency and increase cash flow from these existing assets, perfectly aligning with Cash Cow strategy.

Physicians Realty Trust (DOC) - BCG Matrix: Dogs

The Dogs quadrant represents assets within the Physicians Realty Trust portfolio, now integrated into Healthpeak Properties, Inc., that operate in lower-growth segments or require disproportionate capital allocation without commensurate returns. These are the properties identified for strategic disposition to focus capital on higher-growth areas like life sciences and core Class A outpatient medical buildings.

The strategy for these units is clear: minimize exposure and divest. This aligns with the broader corporate goal of capital recycling, which is actively underway in 2025.

The portfolio characteristics that define these Dogs often relate to older asset vintages or less favorable market positioning compared to the combined company's strategic focus on Class A outpatient medical office buildings (MOBs) and life sciences real estate (LSRE).

• Non-core, older medical office assets in secondary or tertiary markets with limited growth potential.
• Properties requiring significant capital expenditure (CapEx) for modernization that do not justify the investment return.
• Certain legacy properties with shorter weighted average remaining lease terms (WALTs).

The pre-merger Physicians Realty Trust portfolio, as of December 31, 2023, had a weighted average remaining lease term of approximately 5.1 years. While the legacy Physicians Realty Trust portfolio was noted for having longer WALTs than industry averages post-merger, the assets now categorized as Dogs are those that do not meet the new, higher standard for long-term lease stability or market growth potential.

The financial action supporting this strategy is the aggressive asset recycling program in 2025. Healthpeak Properties, Inc. (DOC) is actively negotiating transactions that management indicates have the potential to generate proceeds of $1 billion or more. This substantial capital is earmarked for reinvestment into higher-return lab opportunities and highly pre-leased new outpatient medical developments.

The disposition activity is already materializing in 2025:

The goal is to shed these lower-performing assets to deleverage and focus the portfolio. For instance, the company reported a Net Debt to Adjusted EBITDAre of 5.3x for the quarter ended September 30, 2025, and available liquidity of approximately $2.7 billion as of October 23, 2025. The proceeds from selling these Dogs directly support balance sheet strengthening and capital recycling into core growth assets.

The focus on internalizing property management, which covered 39 million square feet by late 2025, also helps identify which properties are not worth the operational focus, further isolating the Dogs that should be minimized or divested.

Physicians Realty Trust (DOC) - BCG Matrix: Question Marks

You're looking at the parts of Physicians Realty Trust's business, now operating as Healthpeak Properties, Inc. (DOC) post-merger, that are in high-growth markets but haven't yet secured a dominant market share. These are the Question Marks-they burn cash now but hold the potential to become Stars if we invest correctly.

Life Sciences Real Estate (LSRE) portfolio is definitely in this quadrant. While the long-term demand fundamentals are strong, driven by aging demographics and innovation, the near-term reality is a tenant's market due to oversupply. We need significant capital allocation here to gain share against existing, established space.

• Lab leasing activity slowed to a glacial pace in Q1 2025.
• Vacancy rates in the lab market spiked to 27% as of Q1 2025.
• Approximately 14 million square feet of life sciences space is slated for delivery by the end of 2025.
• Acquisition cap rates climbed to 6.6% in the most recent quarter, indicating pricing pressure.

The strategy here is clear: invest heavily where the long-term fundamentals are sound, like manufacturing-oriented assets or distressed lab properties, or divest if the path to market share is too costly. Healthpeak is already signaling this by focusing on loan investments that provide seniority and future acquisition rights, rather than immediate development starts in the current environment.

The Senior Housing Operating Portfolio (SHOP), which Healthpeak now manages as part of its CCRC (Continuing Care Retirement Community) segment, fits the Question Mark profile due to its need for stabilization and heavy investment to drive Net Operating Income (NOI).

The outline suggests this segment is in a high-growth market, projected with a 9.6% CAGR. For the specific Q1 2025 operational snapshot, we are treating the SHOP portfolio as needing immediate attention, characterized by an occupancy of 83.4% in Q1 2025, as per the required scenario analysis. This low share of stabilized occupancy in a growing market demands action.

To be fair, the actual reported CCRC segment for Healthpeak showed strong year-over-year growth, with same-store Cash (Adjusted) NOI up 15.9% in Q1 2025, and operating occupancy at 86.2% units for the CCRC portfolio in Q1 2025. Still, the overall SHOP/CCRC category requires heavy investment to capture the projected market growth and stabilize returns, fitting the Question Mark description.

Here's a quick look at the required metrics defining the Question Mark space for Physicians Realty Trust's (DOC) combined entity:

The core decision for these assets is whether to double down on investment to push market share-turning them into Stars-or to cut losses if the required investment won't yield a competitive advantage. For the LSRE portfolio, the current environment of slowing construction starts suggests a window for opportunistic acquisition of de-rated assets. For SHOP, stabilization efforts, like the technology deployment seen elsewhere in the portfolio, must be prioritized to lift that occupancy figure.