Physicians Realty Trust (DOC): Business Model Canvas [Dec-2025 Updated]

You're looking to cut through the noise surrounding the massive real estate platform that resulted from the Physicians Realty Trust merger, now operating under Healthpeak Properties, Inc. as of late 2025. Honestly, understanding the strategy behind managing a $21 billion portfolio that balances both cutting-edge life sciences discovery space and critical outpatient medical facilities isn't easy, but we can map it out simply. We'll show you exactly how they plan to realize over $65 million in merger synergies while servicing new debt, like that $750 million term loan, all while overseeing 52 million square feet of essential US healthcare property. Keep reading to see the nine fundamental building blocks of this powerhouse's business model.

Physicians Realty Trust (DOC) - Canvas Business Model: Key Partnerships

You're looking at the partnerships that fuel the combined Healthpeak Properties, Inc. (DOC) platform, which absorbed Physicians Realty Trust in March 2024. These relationships are critical because they secure access to top-tier medical providers and capital markets.

Affiliations with the 10 largest US health systems

The combined entity now boasts affiliations with each of the 10 largest health systems in the United States. This deep integration is a key intangible asset driving outperformance, especially as healthcare delivery shifts to outpatient settings.

Biopharma and biotech companies for Life Sciences Real Estate (LSRE)

Healthpeak Properties, Inc. maintains relationships with many of the world's largest biopharma companies, alongside a mix of biotechs. As of the latest reporting, Life Science assets contribute approximately 36% of the combined company's net operating income (NOI). Leasing activity in Q3 2025 saw Lab new and renewal lease executions total 339,000 square feet.

Major regional health systems and large physician groups

The partnership base is diversified with relationships across major regional health systems and large physician groups. The outpatient medical segment, which is the core focus, represents approximately 53% of the combined company's NOI. In Q3 2025, Outpatient Medical new and renewal lease executions reached 1.2 million square feet.

Investment banks and lenders for debt financing

Securing favorable debt terms relies on strong relationships with major financial institutions. Here's a look at some recent financing activities that highlight these partners:

The $750 million term loan in March 2024 involved Barclays and Morgan Stanley & Co. LLC as lead financial advisors to Healthpeak, and BofA Securities and KeyBanc Capital Markets Inc. as lead financial advisors to Physicians Realty Trust. Also, loan repayments received in August 2025 totaled $58 million at a blended interest rate of 9%.

Construction and development firms for new projects

While specific construction firm names aren't detailed in partnership agreements, the scale of the portfolio speaks to the development pipeline. The combined platform manages a portfolio of nearly 50 million square feet. The company is internalizing property management, having brought approximately 20 million square feet in-house during 2024, with an additional 14 million square feet planned for internalization in 2025 and beyond. New investments in Q3 2023 were $16.8 million, including funding previous loan commitments on outpatient medical facilities under construction.

The outpatient sector is seeing strong leasing metrics, with tenant improvement outlays representing less than 5% of rent on renewals signed in Q3 2025.

Physicians Realty Trust (DOC) - Canvas Business Model: Key Activities

You're looking at the core operational drivers for Physicians Realty Trust (DOC) following the merger, which is now focused on maximizing the scale of the combined entity as of late 2025. The key activities center on integration, active management, and strategic deployment of capital into high-growth healthcare real estate sectors.

Active asset management of the 52 million sq ft portfolio is paramount. This massive footprint, resulting from the merger, requires constant oversight to ensure optimal performance across all assets, which include outpatient medical, lab, and other healthcare properties. The focus is on leveraging the combined scale across over 30 markets to serve leading health systems, physician groups, and biopharma tenants. For the full year 2025, the company reaffirmed guidance for Total Merger-Combined Same-Store Cash (Adjusted) NOI growth in the range of 3.0% - 4.0%.

A major internal activity has been the integration of property management. Physicians Realty Trust brought its internal platform, which is now being fully deployed across the combined entity. You saw property management internalized across nearly 20 million square feet during 2024. The plan for 2025 was to continue this effort, internalizing management across an additional 14 million square feet in 2025 and beyond.

Here's a quick look at some of the scale and integration metrics:

Strategic capital allocation to life sciences and outpatient medical is a forward-looking activity. With the merger integration complete, the company is actively looking to deploy capital into life sciences again, focusing on loan investments that offer immediate accretion and seniority in the capital stack. This is happening alongside the continued focus on outpatient medical, which makes up 40 million square feet of the total portfolio.

The execution of merger synergies remains a key activity. The initial year one synergy target was surpassed by over 25%. The total expected run-rate synergies are now projected to be north of $65 million. The original projection included $40 million in 2024 with a potential for $20 million or more of additional synergies by year-end 2025.

Finally, the company is engaged in acquiring and selectively developing new healthcare properties. As of late 2025, the firm is in various stages of negotiation for opportunistic sales and recapitalizations that could generate proceeds of $1 billion or more. You would use those proceeds to recycle capital into highly pre-leased new outpatient medical developments and acquire distressed or opportunistic lab properties.

The core operational focus involves several distinct streams of work:

• Finalizing the internalization of property management across remaining square footage.
• Allocating capital toward accretive life sciences loan investments.
• Executing opportunistic property sales/recapitalizations exceeding $1 billion.
• Maintaining strong leasing execution across the 52 million sq ft base.

Finance: draft the Q4 2025 capital deployment plan based on potential $1B+ asset sales by next Friday.

Physicians Realty Trust (DOC) - Canvas Business Model: Key Resources

The Key Resources underpinning Physicians Realty Trust (DOC), now operating as Healthpeak Properties, Inc. post-merger, reflect a scaled, specialized real estate platform as of late 2025.

The core asset base is substantial, built upon the combination of the legacy companies. This scale provides significant operational efficiencies, such as G&A being approximately 25% more efficient after growing the asset base by $5 billion without a corresponding increase in overhead, as noted in early 2025 reports regarding the merger's success. Also, the combined entity now has affiliations with each of the 10 largest health systems in the United States.

The platform's composition, based on Q1 2025 Net Operating Income (NOI) breakdown, shows a clear focus:

The balance sheet and capital access are critical enablers for future investment. As of the first quarter of 2025, the Total Assets stood at approximately $19.82 billion, with Total Debt around $9.18 billion. This provided a Net Debt to Adjusted EBITDAre ratio of 5.2x for the quarter ended March 31, 2025. Access to capital markets was demonstrated in February 2025 with the issuance of $500 million of 5.375% fixed rate 10-year senior unsecured notes. Available liquidity was reported at approximately $2.8 billion as of April 24, 2025, combining unrestricted cash and the revolving credit facility.

The management expertise is drawn from both legacy organizations, ensuring deep sector knowledge. The leadership structure post-merger included the addition of five new directors who previously served on the Physicians Realty Trust board. The operational strength is further evidenced by the internal property management platform retained from Physicians Realty Trust, which helps drive proprietary development opportunities.

The Life Sciences Real Estate (LSRE) component is a key growth area, with a development pipeline exceeding $300 million focused on highly pre-leased and accretive projects. Furthermore, the company originated a $41 million secured outpatient medical development loan in Frisco, Texas, during Q1 2025.

• Acquisition/Development Pipeline Commitments (Q1 2025): $166 million
• Shares Repurchased (Q1 2025): 5.1 million shares
• Weighted Average Share Price for Q1 2025 Repurchases: $18.50
• Total Portfolio Same-Store Cash (Adjusted) NOI Growth Guidance for Full Year 2025: 3.0% - 4.0%

Physicians Realty Trust (DOC) - Canvas Business Model: Value Propositions

You're looking at the value proposition side of the Business Model Canvas for Physicians Realty Trust (DOC) as it exists following the merger with Healthpeak Properties, which closed in March 2024. The combined entity, now operating as Healthpeak Properties, Inc. but under the DOC ticker, offers a distinct set of benefits to its healthcare partners and investors.

Single platform for both healthcare discovery and delivery needs.

The merger created a platform with significant scale, positioning it as a leader in the healthcare real estate space. This scale is a direct value driver for large health systems needing extensive, consistent real estate solutions across multiple geographies.

The combined operational footprint is substantial:

• Total portfolio size: approximately 52 million square feet.
• Outpatient medical properties (MOBs) component: approximately 40 million square feet.
• Affiliations with each of the 10 largest health systems in the United States.

The recent Q3 2025 revenue for the combined entity was reported at $705.87 million. This scale supports the ability to manage complex real estate needs for major healthcare providers.

High-quality, modern Medical Office Buildings (MOBs) for tenants.

A core value proposition is the focus on high-quality, modern assets, which helps tenants optimize efficiency and patient access. The legacy Physicians Realty Trust portfolio was noted for its quality, which was integrated into the larger platform.

The quality of the portfolio is reflected in its composition and tenant base:

The combined company is also internalizing property management, with nearly 20 million square feet managed internally in 2024, and an additional 14 million square feet planned for internalization in 2025 and beyond. That's hands-on management for a huge chunk of the space.

Lower cost of capital and enhanced scale post-merger.

The merger, initially valued at approximately $21 billion, was designed to enhance financial strength and lower the cost of capital. The combined entity is expected to benefit from this improved financial profile.

Financial positioning points include:

• Expected synergies surpassed initial targets, now projected to be north of $65 million.
• The combined company maintained a strong credit rating of S&P: BBB.
• The merger was viewed by S&P as a 'modest credit positive' due to leverage-neutral nature and diversification.
• The combined company entered a new five-year term loan, with one report citing $500 million at SOFR plus 85 basis points, and another citing a new $750 million loan fixed at about 4.5 percent.

This enhanced scale and financial footing are intended to provide a lower cost of capital for future growth initiatives.

Long-term, stable leases with investment-grade tenants.

Stability comes from the duration and credit quality of the leases. The legacy Physicians Realty Trust portfolio specifically contributed longer lease terms and a higher concentration of investment-grade tenants, which translates directly to predictable cash flow for the combined entity.

Looking at the pre-merger DOC portfolio as of December 31, 2023, the weighted average remaining lease term was approximately 5.1 years. The focus on investment-grade tenants, as noted above, underpins the stability of the rental income stream.

Strategic locations in high-growth US markets like Dallas and Denver.

The portfolio is intentionally concentrated in markets showing strong secular growth trends in healthcare delivery. This focus on high-growth areas is a key differentiator.

The combined platform's outpatient medical properties are specifically concentrated in these key markets:

• Dallas
• Denver
• Houston
• Nashville
• Phoenix

This geographic concentration in Sun Belt cities and high-growth secondary markets aligns with broader investor preferences for 2024 and beyond. Finance: draft 13-week cash view by Friday.

Physicians Realty Trust (DOC) - Canvas Business Model: Customer Relationships

You're looking at the relationships that keep the revenue flowing, which, for Physicians Realty Trust, now operating as Healthpeak Properties, Inc. following the March 2024 merger, centers on deep ties with major healthcare providers.

Dedicated asset managers for key health system relationships.

• The combined platform now has affiliations with each of the 10 largest health systems in the United States.
• The legacy Physicians Realty Trust portfolio, as of December 31, 2023, had approximately 90% of its net leasable square footage either on a hospital campus or strategically affiliated with a health system.

Long-term, sticky relationships with large tenants.

The stickiness is reflected in the lease structure and duration. As of December 31, 2023, the weighted average remaining lease term for the legacy Physicians Realty Trust portfolio was approximately 5.1 years. Furthermore, approximately 93% of the annualized base rent payments from those properties were from absolute net or triple-net leases as of December 31, 2022, meaning tenants handle operating expenses.

Here's a quick look at the scale of the combined entity's relationship footprint post-merger:

Direct, professional property management services.

The integration strategy included bringing property management in-house for better control. As of the merger close in March 2024, property management was internalized in four markets, with an additional five markets scheduled for internalization by the end of the second quarter of 2024.

Transactional for new property acquisitions.

The focus post-merger is on realizing expected financial improvements. The combined company projected potential for $20 million or more of additional synergies by year-end 2025.

Finance: draft 13-week cash view by Friday.

Physicians Realty Trust (DOC) - Canvas Business Model: Channels

You're looking at how Physicians Realty Trust, now operating as Healthpeak Properties, Inc. (ticker DOC) following its March 2024 merger, gets its value proposition to the market and manages its capital structure as of late 2025. The channels rely heavily on direct engagement following the internalization of property management.

Direct leasing teams for property occupancy

The direct leasing teams, bolstered by the completed merger integration, are focused on driving high-quality occupancy and favorable lease economics across the combined outpatient medical and life sciences portfolio. The shift is now toward prioritizing economic returns over sheer volume, reflecting landlord leverage in the current market.

Here are the key leasing metrics from the third quarter ended September 30, 2025:

The leasing activity volume for the quarter was substantial, showing strong demand flow, especially in the core medical office space.

• Total new and renewal lease executions (Q3 2025): 1.5 million square feet.
• Outpatient Medical new and renewal lease executions (Q3 2025): 1.2 million square feet.
• Lab new and renewal lease executions (Q3 2025): 339,000 square feet.

The leasing pipeline is reported at its highest level since the second quarter of 2024, suggesting continued strong execution into the near term.

Corporate development and M&A for portfolio growth

Corporate development channels are currently focused on capital recycling and strategic acquisitions, leveraging the successful merger integration which is now complete. The platform's scale is a key asset here, providing deep access to major healthcare players.

The combined entity maintains critical relationships:

• Affiliations with each of the 10 largest health systems in the United States.
• A leading platform with affiliations across many of the world's largest biopharma companies.

Growth is being pursued through opportunistic asset sales to recycle capital into higher-return opportunities. The company is in negotiations for opportunistic sales and recapitalizations targeting proceeds of $1 billion or more at attractive prices.

Investor Relations for equity and debt capital

The Investor Relations function manages the balance sheet through debt markets, as equity issuance appears less prioritized given current capital allocation strategies favoring asset recycling and acquisitions. The focus is on maintaining balance sheet strength following the merger.

Recent debt capital activities include:

The company's strategy is to use proceeds from sales/recapitalizations to strengthen the balance sheet, fund highly pre-leased developments, or acquire distressed lab properties.

Brokerage networks for property dispositions and acquisitions

While direct leasing is emphasized for occupancy, brokerage networks are utilized for significant capital recycling events, namely dispositions. The company is actively engaging in transactions that allow for the rotation of capital.

The current disposition pipeline suggests active use of external channels for sales:

• Negotiations underway for sales/recapitalizations targeting proceeds exceeding $1 billion.
• One expected sale in January 2026 has a contractual purchase price of $68 million.

These transactions are designed to recycle capital into new outpatient medical developments or opportunistic lab acquisitions.

Physicians Realty Trust (DOC) - Canvas Business Model: Customer Segments

You're looking at the customer segments for what is now Healthpeak Properties, Inc., trading under the ticker DOC, following the March 2024 merger with Physicians Realty Trust. Honestly, the core customer base remains deeply rooted in the healthcare delivery side, but the scale is much larger now.

The primary customers are the entities that occupy the real estate, which are heavily weighted toward established medical providers. As of December 31, 2024, the portfolio data shows a clear concentration:

This table reflects the core real estate tenants. The pre-merger focus of Physicians Realty Trust, which is now integrated, specifically targeted these groups:

• Large, national health systems and hospitals.
• Regional physician groups and specialty clinics.

The strategic focus also included growth areas that serve the life science ecosystem, which is a distinct customer set from the direct care providers. The opportunity set discussed prior to the merger included:

• Distressed acquisition opportunities in life science driven by refinancing challenges or delayed do lease-up.
• Activating a 5 million square foot life science land bank when fundamentals are favorable.

So, for the real estate side, you're looking at major health systems and the physician/clinic groups they often affiliate with, plus a strategic, though smaller, segment focused on biopharma and life science research institutions.

Now, for the financial customer segment-the shareholders. While I don't have the precise breakdown as of late 2025, the merger structure itself gives you a clue about the initial investor base composition. At the close of the merger in March 2024, the ownership split was approximately:

• 77% Healthpeak Properties shareholders.
• 23% Physicians Realty Trust shareholders.

These shareholders, both individual and institutional investors, are buying into the combined entity's platform, which is now the leading real estate platform dedicated to healthcare discovery and delivery. Finance: draft 13-week cash view by Friday.

Physicians Realty Trust (DOC) - Canvas Business Model: Cost Structure

You're looking at the cost structure for Physicians Realty Trust, now operating as the combined entity under the Healthpeak Properties name, trading as DOC. Since the merger closed in March 2024, the cost base reflects integration and new financing. Here's the quick math on the major expense categories as of late 2025, based on the latest available reporting.

A significant portion of the cost structure is insulated due to the lease structure. As of December 31, 2022, approximately 93% of annualized base rent came from absolute net and triple net leases. This means tenants are generally responsible for the direct operating expenses, which helps insulate Physicians Realty Trust (DOC) from volatility in costs like real estate taxes, utilities, and property insurance.

For the remaining properties where DOC bears some direct operating expense, the trend in 2022 showed increases. For example, operating expenses on comparable properties increased by $7.7 million, or 5.8% year-over-year in 2022, driven by utility costs of $3.6 million and maintenance costs of $2.4 million. Real estate taxes and insurance premiums are part of these variable operating expenses, though largely passed through to tenants in most leases. Insurance costs specifically rose by $1.0 million in that 2022 comparison period.

Interest expense is a major component, heavily influenced by recent debt activities. The new $750 million, 5-year unsecured term loan, entered into on March 1, 2024, has its interest rate fixed at approximately 4.5% for the full term through swap agreements. This loan was used, in part, to repay $210 million of Physicians Realty Trust private placement notes. To give you context on interest rate impact, in 2022, total interest expense increased by $12.1 million, or 20.1% compared to 2021, partly due to a higher effective interest rate on the credit facility.

General and administrative costs are being actively managed post-merger. The expected run-rate synergies from the merger were projected to reach up to $60 million by the end of year two (2025). Furthermore, the Q3 2025 report specifically noted that the early rollout of a tech-enabled platform has already resulted in a 5% reduction in G&A guidance for 2025. This is a direct cost-saving action following the integration.

Capital expenditures (CapEx) for property improvements and tenant fit-outs are managed alongside asset recycling. While specific 2025 CapEx is not isolated, in 2022, the company achieved a 6.3% year-over-year saving in CapEx, spending $23.9 million that year compared to $25.5 million in 2021.

Here is a snapshot of key financial figures related to the cost base, drawing from the most recent merger-related disclosures and 2022 expense details for context:

The structure relies heavily on the triple net lease model, which shifts the burden of rising costs for maintenance, utilities, and property insurance to the tenant base. Still, the interest expense on the combined debt load, including the $750 million term loan, is a fixed, known cost at 4.5% for that tranche, which is helpful for near-term forecasting.

You should review the Q4 2025 supplemental data when it releases to see the realized G&A savings against the 5% guidance reduction and the final synergy capture against the $60 million target. Finance: draft 13-week cash view by Friday.

Physicians Realty Trust (DOC) - Canvas Business Model: Revenue Streams

You're looking at the revenue engine for Physicians Realty Trust, which, following the March 2024 merger, now operates as Healthpeak Properties, Inc. (DOC). The core of the business is collecting rent on high-quality healthcare real estate, primarily Medical Office Buildings (MOBs) and Life Science Real Estate (LSRE).

The latest reported revenue figure for the combined entity, as of the first quarter ended March 31, 2025, was $\mathbf{\$702.89}$ million. This number reflects the scale of the combined $\mathbf{52}$ million-square-foot portfolio. The rental income stream is the dominant factor here, supported by the long-term nature of the leases.

To give you a sense of the composition before the full 2025 figures are in, we can look at the portfolio income split as of the end of 2023, which forms the base of the current structure:

The structure relies heavily on the stability of these long-term contracts. Recoveries from tenants for operating expenses are inherent in the triple-net lease structure common in this sector, meaning tenants generally cover property taxes, insurance, and maintenance, which flows through as part of the effective rental income.

Income from property management fees is being actively integrated. Following the merger, the company achieved property-level Net Operating Income (NOI) benefits from internalizing property management in several markets. The expectation for further efficiency and revenue enhancement is clear:

• Expected additional merger-related synergies by year-end $\mathbf{2025}$: $\mathbf{\$20}$ million or more.

Finally, a key component of capital management that impacts the overall financial picture is the strategic recycling of capital through asset sales. This is not recurring operational revenue but a source of cash flow and portfolio refinement:

• Proceeds from strategic dispositions of non-core assets in 2024: $\mathbf{\$1.3}$ billion.
• The plan for the go-forward portfolio includes targeting approximately $\mathbf{85}$ assets for disposition, valued around $\mathbf{\$1.2}$ billion.

Leasing activity also directly feeds the rental income stream. For the first quarter of 2025, new and renewal lease executions totaled $\mathbf{1.2}$ million square feet across the combined portfolio.