A Year to be Strong

DOC remained committed to our long-term strategy, executing in this challenging environment by balancing strategic investments with opportunistic capital raising and recycling. As a result, we strengthened the overall quality of our portfolio while reducing our consolidated leverage on a Net Debt to EBITDA basis (from 5.7x to 5.4x)

We made the smart decision years ago to focus our investment strategy on investment grade health systems and larger physician groups to mitigate credit risks and grow with strong, high-quality providers. While inflation, especially wage inflation, hit our providers hard, our credit team’s work in underwriting and financial review of each of our tenants kept our rental income streams firm with minimal defaults. Through DOC’s processes during 2022, we received financial statements covering

94% total leased space from tenants for monitoring. We also evaluate tenants’ financial performance through publicly available data. We believe this attention to credit monitoring is an essential and unique differentiator for DOC compared to our competitors.

We ended 2022 with total liquidity of $815 million, including cash available on our balance sheet and the undrawn capacity of our unsecured revolving line of credit. In addition, nearly 84% of our consolidated debt is fixed or hedged, limiting our exposure to future interest rate increases.

Now more than ever, we believe our investment grade balance sheet and commitment to keep our debt low by relevant metrics demonstrates our strength and focus on the long-term value and benefit to our providers and shareholders.