10-K 0001628280-26-005044 (2026-02-03) vs 10-K 0001628280-25-003748 (2025-02-04)
| Section | Compared text | Words now | Changed |
| Risk Factors | Item 1A | 19,520 |
10.1% |
| MD&A | Item 7 | 13,854 |
27.7% |
| Legal Proceedings | Item 3, via Note 12 – Commitments and Contingencies | 839 |
9.0% |
| Accounting Policies | Item 8, Note 2 – Summary of Significant Accounting Policies | 7,837 |
11.9% |
The redline: what was cut and what was added
In each section, the paragraph that changed most, marked against last year's 10-K:
cut words struck through, new words highlighted and underlined.
MD&A 281 words changed in this paragraph; it is 64% similar to last year's version.
Adjusted FFO (“AFFO”). AFFO is defined as FFO as Adjusted after excluding the impact of the following: (i) stock-based compensation amortization expense, (ii) amortization of deferred financing costs and debt discounts (premiums), (iii) straight-line rents, (iv) deferred income taxes, (v) amortization of above (below) market lease intangibles, net, (vi) non-refundable entrance fees collected in excess of (less than) the related amortization, and (vii) other AFFO adjustments, which include: (a) lease incentive amortization (reduction of straight-line rents), (b) actuarial reserves for insurance claims that have been incurred but not reported, and (c) amortization of deferred revenues, excluding amounts amortized into rental income that are associated with tenant funded improvements owned/recognized by us and up-front cash payments made by tenants to reduce their contractual rents. Also, AFFO is computed after deducting recurring capital expenditures, including second generation leasing costs and second generation tenant and capital improvements (“AFFO capital expenditures”). All adjustments are reflective of our pro rata share of both our consolidated and unconsolidated joint ventures (reported in “other AFFO adjustments”). We reflect our share of AFFO for unconsolidated joint ventures by applying our actual ownership percentage for the period to the applicable reconciling items on an entity by entity basis. We reflect our share for consolidated joint ventures in which we do not own 100% of the equity by adjusting our AFFO to remove the third-party ownership share of the applicable reconciling items based on actual ownership percentage for the applicable periods. See “Nareit FFO” above for further disclosures regarding our use of pro rata share information and its limitations. We believe AFFO is an alternative run-rate performance measure that improves the understanding of our operating results among investors and makes comparisons with: (i) expected results, (ii) results of previous periods, and (iii) results among REITs more meaningful. AFFO does not represent cash generated from operating activities determined in accordance with GAAP and is not indicative of cash available to fund cash needs as it excludes the following items which generally flow through our cash flows from operating activities: (i) adjustments for changes in working capital or the actual timing of the payment of income or expense items that are accrued in the period, (ii) transaction-related costs, (iii) litigation settlement expenses, and (iv) restructuring and severance-related charges. Furthermore, AFFO is adjusted for recurring capital expenditures, which are generally not considered when determining cash flows from operations or liquidity. Other REITs or real estate companies may use different methodologies for calculating AFFO, and accordingly, our AFFO may not be comparable to those reported by other REITs. Management believes AFFO provides a meaningful supplemental measure of our performance and is frequently used by analysts, investors, and other interested parties in the evaluation of our performance as a REIT, and by presenting AFFO, we are assisting these parties in their evaluation. AFFO is a non-GAAP supplemental financial measure and should not be considered as an alternative to net income (loss) determined in accordance with GAAP and should only be considered together with and as a supplement to our financial information prepared in accordance with GAAP. For a reconciliation of net income (loss) to AFFO and other relevant disclosures, refer to “Non-GAAP Financial Measures Reconciliations” below.
Source: Item 7, 10-K 0001628280-26-005044 vs Item 7, 10-K 0001628280-25-003748
Risk Factors 241 words changed in this paragraph; it is 33% similar to last year's version.
Congressional consideration Furthermore, reductions in Medicaid spending and cuts to Medicaid provider rates, the expiration of legislation pertaining to health insurance subsidies under the federal debt ceiling, the Patient Protection and Affordable Care Act, tax reform, along with the Health Care and entitlement programs, Education Reconciliation Act of 2010 (collectively, the “Affordable Care Act”), other potential changes to federal reimbursement policies, and other potential policy initiatives focused on medical care, including site-neutral payments and changes to reimbursement for certain outpatient services, could reduce patient volumes, increase uncompensated care, and put downward pressure on reimbursement rates for physicians, hospitals and outpatient medical facilities, which could have a material an adverse effect on our tenants’, operators’, and borrowers’ liquidity, financial condition, or results of operations. In particular, reduced funding for entitlement programs such as Medicare and Medicaid would could result in increased costs and fees for programs such as Medicare Advantage Plans and additional reductions in reimbursements to providers. Amendments to the Affordable Care Act in whole or in part and decisions by the Centers for Medicare and Medicaid Services could impact the delivery of services and benefits under Medicare, Medicaid, or Medicare Advantage Plans and could affect our tenants and operators and the manner in which they are reimbursed by such programs. Any shutdown of the federal government that delays or disrupts payments or any other material adverse effect on payments to our tenants, operators, or borrowers could adversely affect their ability to satisfy their obligations to us and could have a material adverse effect on us. In addition, changes in federal, state, or local laws affecting the healthcare or life sciences industries, particularly that apply to REITs, or changes in the scope, interpretation, or enforcement of the related regulatory frameworks could adversely affect us or our tenants, operators, or borrowers.
Source: Item 1A, 10-K 0001628280-26-005044 vs Item 1A, 10-K 0001628280-25-003748
Accounting Policies 97 words changed in this paragraph; it is 45% similar to last year's version.
The Company’s fair values of its equity method investments are determined based on discounted cash flow models that include all estimated cash inflows and outflows over a specified holding period and, where applicable, any estimated debt premiums or discounts. Capitalization These fair values are typically determined using an income approach and/or a market approach (comparable sales model), which rely on certain assumptions by management. Determining the fair value of these investments may involve significant judgment to develop forecasted cash flows which utilize observable and unobservable inputs such as market rents, expense rates, forecasted occupancy, capitalization rates, discount rates, expected capital expenditures, and credit spreads utilized in these valuation models are based on assumptions that the Company believes to be within a reasonable range of current market rates for the respective investments. comparable sales data, among other things.
Source: Item 8, Note 2 – Summary of Significant Accounting Policies, 10-K 0001628280-26-005044 vs Item 8, Note 2 – Summary of Significant Accounting Policies, 10-K 0001628280-25-003748
Legal Proceedings 9 words changed in this paragraph; it is 98% similar to last year's version.
In connection with the formation of DownREITs, members may contribute appreciated real estate to a DownREIT in exchange for DownREIT units. These contributions are generally tax-deferred, so that the pre-contribution gain related to the property is not taxed to the member. However, if a contributed property is later sold by the DownREIT, the unamortized pre-contribution gain that exists at the date of sale is specifically allocated and taxed to the contributing members. In many of the DownREITs, the Company has entered into indemnification agreements with those members who contributed appreciated property into the DownREIT. Under these indemnification agreements, if any of the appreciated real estate contributed by the members is sold by the DownREIT in a taxable transaction within a specified number of years, the Company will reimburse the affected members for the federal and state income taxes associated with the pre-contribution gain that is specially allocated to the affected member under the Internal Revenue Code (“make-whole payments”). These make-whole payments include a tax gross-up provision. As of December 31, 2024, 2025, the Company had indemnification agreements on a total of 41 28 properties within its DownREITs. In January 2025, indemnification agreements on 13 properties expired.
Source: Item 3, via Note 12 – Commitments and Contingencies, 10-K 0001628280-26-005044 vs Item 3, via Note 12 – Commitments and Contingencies, 10-K 0001628280-25-003748
Every change, by type
Sentences and paragraphs of DOC's Risk Factors and MD&A, 10-K 2026-02-03 against 10-K 2025-02-04.
Each links to the text at sec.gov.
RemovedRisk Factors
•risks relating to integration and property management internalization following our Merger with Physicians Realty Trust;
Read it in 10-K 2025-02-04 at sec.gov ↗
RemovedRisk Factors
We may be unable to develop, maintain, or expand hospital and health system client relationships.
Read it in 10-K 2025-02-04 at sec.gov ↗
RemovedRisk Factors
We invest significant time in developing, maintaining, and expanding relationships with both new and existing hospital and health system clients. If we fail to maintain these relationships, including through a lack of responsiveness, failure to adapt to the current market, or employment of individuals with inadequate experience, our reputation and relationships will be harmed and we may lose business to competitors, which could have a material adverse effect on us.
Read it in 10-K 2025-02-04 at sec.gov ↗
RemovedRisk Factors
Under certain leases, a portion of the tenant’s rental payment to us is based on the property’s revenues (i.e., contingent rent). If a tenant’s revenue at a rental property with contingent rent declines, our rental revenues would decrease.
Read it in 10-K 2025-02-04 at sec.gov ↗
RemovedRisk Factors
We could be negatively impacted by legislation to address federal government operations and administrative decisions affecting the Centers for Medicare and Medicaid Services or other legislative or regulatory changes affecting REITs or the industries in which we operate.
Read it in 10-K 2025-02-04 at sec.gov ↗
RemovedRisk Factors
Congressional consideration of legislation pertaining to the federal debt ceiling, the Affordable Care Act, tax reform, and entitlement programs, including reimbursement rates for physicians, could have a material adverse effect on our tenants’, operators’, and borrowers’ liquidity, financial condition, or results of operations. In particular, reduced funding for entitlement programs such as Medicare and Medicaid would result in increased costs and fees for programs such as Medicare Advantage Plans and additional reductions in reimbursements to providers. Amendments to the Affordable Care Act in whole or in part and decisions by the Centers for Medicare and Medicaid Services could impact the delivery of services and benefits under Medicare, Medicaid, or Medicare Advantage Plans and could affect our tenants and operators and the manner in which they are reimbursed by such programs. Any shutdown of the federal government that delays or disrupts payments or any other material adverse effect on payments to our tenants, operators, or borrowers could adversely affect their ability to satisfy their obligations to us and could have a material adverse effect on us. In addition, changes in federal, state, or local laws affecting the healthcare or life sciences industries, particularly that apply to REITs, or changes in the scope, interpretation, or enforcement of the related regulatory frameworks could adversely affect us or our tenants, operators, or borrowers.
Read it in 10-K 2025-02-04 at sec.gov ↗
RemovedRisk Factors
Changes in federal, state, or local laws or regulations may limit our opportunities to participate in the ownership of, or investment in, healthcare real estate.
Read it in 10-K 2025-02-04 at sec.gov ↗
RemovedRisk Factors
Risks Relating to Integration and Property Management Internalization Following the Merger
Read it in 10-K 2025-02-04 at sec.gov ↗
RemovedRisk Factors
We may be unable to fully integrate the operations of the Company and Physicians Realty Trust successfully and realize the anticipated synergies of the Merger and benefits of property management internalization or do so within the anticipated time frame.
Read it in 10-K 2025-02-04 at sec.gov ↗
RemovedRisk Factors
We have benefited from, and expect to continue to benefit from, the synergies from our Merger with Physicians Realty Trust as a result of (i) the elimination of duplicative costs associated with supporting an additional public company platform, (ii) internalization of the property management function, and (iii) leveraging state-of-the-art technology and systems. However, we continue to devote significant management attention and resources to integrating the operations of the Company and Physicians Realty Trust and internalizing the property management function. Potential difficulties we may encounter in the ongoing integration process include the following:
Read it in 10-K 2025-02-04 at sec.gov ↗
RemovedRisk Factors
•the inability to successfully combine the operations of the Company and Physicians Realty Trust, including the integration of employees, customer records and maintaining cybersecurity protections, in a manner that permits us to achieve the cost savings anticipated from the Merger, which would result in the anticipated benefits of the Merger not being realized in the time frame currently anticipated or at all;
Read it in 10-K 2025-02-04 at sec.gov ↗
RemovedRisk Factors
•the complexities associated with managing the combined businesses out of different locations and integrating personnel from the two companies;
Read it in 10-K 2025-02-04 at sec.gov ↗
RemovedMD&A
On March 1, 2024, we completed the Merger with Physicians Realty Trust, which resulted in the acquisition of 299 outpatient medical buildings.
Read it in 10-K 2025-02-04 at sec.gov ↗
RemovedMD&A
•In April 2024, we exercised our option to buy out four redeemable noncontrolling interests, made aggregate cash payments for the total redemption value of $53 million to the related noncontrolling interest holders, and acquired the redeemable noncontrolling interests associated with these entities.
Read it in 10-K 2025-02-04 at sec.gov ↗
RemovedMD&A
•In March 2024, we executed a $750 million five year unsecured term loan (the “2029 Term Loan”) as an incremental facility under the term loan agreement. In January 2024, we entered into forward-starting interest rate swap instruments on the 2029 Term Loan which are designated as cash flow hedges and establish a blended fixed effective interest rate of 4.66%.
Read it in 10-K 2025-02-04 at sec.gov ↗
RemovedMD&A
•During the year ended December 31, 2024, we executed an early lease renewal for approximately 2 million square feet leased by CommonSpirit Health, which is subject to a master agreement, which extended the weighted average lease term of existing leases from July 2027 to December 2035, amended the contractual rents to current market rates, and increased the annual contractual lease escalations from 2.5% to 3.0%.
Read it in 10-K 2025-02-04 at sec.gov ↗
RemovedMD&A
FFO as Adjusted. In addition, we present Nareit FFO on an adjusted basis before the impact of non-comparable items including, but not limited to, transaction and merger-related items, other impairments (recoveries) and other losses (gains), restructuring and severance-related charges, prepayment costs (benefits) associated with early retirement or payment of debt, litigation costs (recoveries), casualty-related charges (recoveries), deferred tax asset valuation allowances, and changes in tax legislation (“FFO as Adjusted”). These adjustments are net of tax, when applicable, and are reflective of our share of our joint
Read it in 10-K 2025-02-04 at sec.gov ↗
RemovedMD&A
(3)From our 2023 presentation of Same-Store, no properties were added or removed.
Read it in 10-K 2025-02-04 at sec.gov ↗
RemovedMD&A
Year Ended December 31, 2024 2023 Change Interest income and other $ 44,778 $ 21,781 $ 22,997 Interest expense 280,430 200,331 80,099 Depreciation and amortization 1,057,205 749,901 307,304 General and administrative 97,162 95,132 2,030 Transaction and merger-related costs 132,685 17,515 115,170 Impairments and loan loss reserves (recoveries), net 22,978 (5,601) 28,579 Gain (loss) on sales of real estate, net 178,695 86,463 92,232 Other income (expense), net 59,345 6,808 52,537 Income tax benefit (expense) (4,350) 9,617 (13,967) Equity income (loss) from unconsolidated joint ventures (1,515) 10,204 (11,719) Noncontrolling interests’ share in continuing operations (24,161) (28,748) 4,587
Read it in 10-K 2025-02-04 at sec.gov ↗
RemovedMD&A
•fund capital expenditures, including tenant improvements and leasing costs; and
Read it in 10-K 2025-02-04 at sec.gov ↗
RemovedMD&A
Operating, investing, and financing cash flows in our Consolidated Statements of Cash Flows are reported inclusive of both cash flows from continuing operations and cash flows from discontinued operations. Certain significant cash flows from discontinued operations are disclosed in Note 18 to the Consolidated Financial Statements.
Read it in 10-K 2025-02-04 at sec.gov ↗
RemovedMD&A
In December 2024, we amended our Revolving Facility to extend the maturity date to January 2029, which may be further extended pursuant to two six-month extension options, subject to certain customary conditions.
Read it in 10-K 2025-02-04 at sec.gov ↗
RemovedMD&A
In January 2024, we entered into forward-starting interest rate swap instruments that are designated as cash flow hedges that effectively established a fixed interest rate for the 2029 Term Loan at a blended effective interest rate of 4.66%. Additionally, on March 1, 2024, in connection with the consummation of the Merger, we acquired: (i) three interest rate swap instruments that are designated as cash flow hedges that effectively establish a fixed interest rate for the 2028 Term Loan at a blended effective interest rate of 4.44% and (ii) one interest rate swap instrument on $36 million of variable rate mortgage debt that was designated as a cash flow hedge prior to the maturity of the interest rate swap instrument in October 2024.
Read it in 10-K 2025-02-04 at sec.gov ↗
RemovedMD&A
Pursuant to the terms set forth in the Merger Agreement, on the Closing Date, each outstanding share of Physicians Realty Trust (other than Physicians Realty Trust common shares that were canceled in accordance with the Merger Agreement) automatically converted into the right to receive 0.674 shares of our common stock. Based on the number of outstanding Physicians Realty Trust common shares as of the Closing Date, we issued 162 million shares of our common stock. Refer to Note 3 to the Consolidated Financial Statements for additional information regarding the Merger.
Read it in 10-K 2025-02-04 at sec.gov ↗