DaVita TENANT OVERVIEW
Updated: January 24, 2018
- Corporate guaranty
- NNN leases
- Proximity to hospitals and medical offices
- Some NN leases holds landlord responsible for roof and structure
- Expensive to re-lease should the tenant leave
- Consolidated revenues of $2,847 Million
- Operating income of $289 Million
- Cash flow of $362 Million and free cash flow of $226 Million
DaVita is the leading provider of kidney care in the US, delivering dialysis services to patients.
Investors like DaVita's small price point and the fact that kidney dialysis is a growth industry. Investors take security from the tenant's investment in the build out of the property along with the installation of specialty trade fixtures that make it less likely for the tenant to leave at lease expiration. The very nature of DaVita's business, kidney dialysis, requires clients to visit routinely and consistently, which in turn produces a reliable income stream for that location. The medical industry as a whole is poised for future growth and net lease investors are recognizing the stability this lends.
As the population in the United States ages, the prevalence of chronic kidney disease will rise according to a report published in the American Journal of Kidney Disease. Adults, ages 30 and older, who have CKD is projected to increase from the current 13.2% to 14.4% in 2020, and 16.7% in 2030. These projections continue to support the demand for dialysis centers and the growth in this industry.
DaVita, Inc, a Fortune 500 Company, is headquartered in Denver, Colorado. DaVita - which is Italian for "giving life" - began in 1999. Their offerings include in-center hemodialysis, in-center nocturnal dialysis, peritoneal dialysis, home hemodialysis, vascular access management, chronic kidney disease education, and renal diet assistance.
As of December 31, 2016, DaVita Kidney Care operated or provided administrative services at 2,350 outpatient dialysis centers located in the United States serving approximately 188,000 patients. The company also operated 154 outpatient dialysis centers located in 11 countries outside the United States.
Average Cap Rate
12 mo avg with 10+ yr lease term
Average Property & Lease
|Average Sale Price
||$300 - $600
||6,000 - 12,500
||1 - 2.5 Acres
||1.5-2% Annually or 8-10% Every 5 Years
Average Cap Rate Trend
Rates reflect last 12 mos, short and long-term
Recent Sales Comps
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