AI Takeaway
DOC delivered strong Q1 FY2026 results with revenue up 7.1% YoY to $753.0M and net income surging 352.1% to $193.6M, while the company raised significant financing capital, boosting cash by over 15x to $1.17B.
Revenue
$752.95M
++7.12% YoY
EPS (Basic)
$0.28
++366.67% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Total revenue increased 7.1% year-over-year from $702.9M to $753.0M in Q1 FY2026, reflecting continued expansion of DOC's healthcare real estate portfolio and stable rental income streams.
Source: Source: 10-Q Income Statement
Net income surged 352.1% YoY from $42.8M to $193.6M, driving basic and diluted EPS from $0.06 to $0.28, a 366.7% improvement, likely reflecting asset gains, reduced impairments, or favorable non-cash adjustments.
Source: Source: 10-Q Income Statement
Financing cash flow turned sharply positive at $1.11B (vs. -$94.4M in the prior year period), driving cash and equivalents up 1,558% to $1.17B, suggesting a major equity or debt issuance to fund growth initiatives.
Source: Source: 10-Q Cash Flow Statement
2 more insights available
Upgrade to unlockLong-term debt increased 17.4% YoY to $10.42B, and the debt-to-equity ratio stands at 1.60x. In a higher-for-longer interest rate environment, refinancing costs could pressure funds from operations (FFO) and dividend sustainability.
Source: Source: 10-Q Balance Sheet
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $0.28 versus the $0.05 analyst consensus — a +515.4% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $752.95M | $702.89M | +7.12% |
Net Income | $193.63M | $42.83M | +352.12% |
EPS (Basic) | $0.28 | $0.06 | +366.67% |
EPS (Diluted) | $0.28 | $0.06 | +366.67% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $21.62B | $19.82B | +9.09% |
Total Liabilities | $12.56B | $10.97B | +14.44% |
Stockholders' Equity | $7.83B | $8.19B | -4.42% |
Cash & Equivalents | $1.17B | $70.63M | +1558.04% |
Long-Term Debt | $10.42B | $8.88B | +17.42% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $260.88M | $279.43M | -6.64% |
Investing Cash Flow | $-638.61M | $-230.71M | -176.80% |
Financing Cash Flow | $1.11B | $-94.41M | +1271.37% |
Dividends Paid | $211.99M | $213.48M | -0.70% |
Share Buybacks | $1.37M | $24.96M | -94.49% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Net Margin | 25.7% | — | — |
ROE | 2.5% | — | — |
ROA | 0.9% | — | — |
Debt to Equity | $1.604 | — | — |
Other companies in Health Care REITs
DOC reported Q1 FY2026 revenue of $753.0M, up 7.1% YoY, and net income of $193.6M, a dramatic 352.1% increase from $42.8M in the prior year. The company also raised significant capital through financing activities ($1.11B inflow), boosting cash to $1.17B, while accelerating acquisitions with $638.6M in investing outflows.
DOC's revenue grew 7.1% year-over-year in Q1 FY2026, rising from $702.9M to $753.0M, consistent with steady expansion of its healthcare real estate portfolio. This growth reflects stable rental income and potential contributions from newly acquired properties.
DOC's net income surged 352.1% YoY to $193.6M in Q1 FY2026, but operating cash flow actually declined 6.6% to $260.9M, suggesting the income improvement was likely driven by non-cash gains, asset sale proceeds, or favorable one-time items rather than purely organic operational improvement. Investors should look for further detail in the full filing.
DOC's balance sheet shows total assets of $21.6B and cash of $1.17B, but long-term debt has risen 17.4% YoY to $10.42B, resulting in a debt-to-equity ratio of 1.60x. While liquidity improved dramatically due to recent capital raises, the rising leverage and declining stockholders' equity (-4.4% YoY) are factors investors should monitor closely.
DOC paid $212.0M in dividends in Q1 FY2026, representing approximately 81.3% of its $260.9M operating cash flow, which is a high but not uncommon payout ratio for REITs. However, with operating cash flow declining 6.6% YoY and debt rising, the dividend's sustainability depends on maintaining or growing cash generation from operations.