Fresenius Medical Care TENANT OVERVIEW


Net Lease Advisor Tenant Fresenius

Pros

  • Investment grade tenant
  • Corporate guaranteed
  • NNN leases
  • Proximity to hospitals and medical offices

Cons

  • Layout specific to sector
  • Expensive to re-lease should the tenant leave

Earnings Highlights

Earnings Summary
  • Revenue in Q3 2019 increased 9% to 4.419 Million Euros
  • EBIT increased by 13% to EUR 595 Million

Tenant Description

Fresenius Medical Care is a dominant player in the United States dialysis market.

The medical sector is a highly sought-after net lease investment venue. With the aging baby boomers and the demand for dialysis growing, investors are attracted to the medical sector and Fresenius Medical Care, due to its small price point, is an appealing option for investors. They like the security that is inherent with the investment made by the tenant in the build-out of the property, including the installation of specialty trade fixtures. This investment makes it less likely for the tenant to leave at lease expiration. In addition, the very nature of Fresenius' business, kidney dialysis, requires clients to visit routinely and consistently, which in turn produces a reliable income stream for that location.

Fresenius Medical Care is a division of the global parent company, Fresenius Medical Care AG & Co. KGaA, with their North American headquarters located in Waltham, MA. They provide emotional, medical, dietary, financial, and well-being resources for patients with Chronic Kidney Care (CKD) and End Stage Renal Disease (ESRD). They care about all aspects of patient's care - the whole "you". Their services include in-center hemodialysis, at-home hemodialysis, at-home peritoneal dialysis, counseling and guidance for non-dialysis options, nutritional counseling, as well as patient training and education classes.

Fresenius Medical Care is one of the leading providers of CKD and ESRD care. Fresenius currently operates 3,624 clinics worldwide, serving over 306,000 patients. Over 40 million treatments have been performed by Fresenius.

The medical industry as a whole is poised for future growth and net lease investors are recognizing the stability this lends.

Average Cap Rate
6.41%
12 mo avg with 10+ yr lease term
Average Property & Lease
Average Sale Price $3,210,521
NOI $204,676
$/Square Foot $265 - $430
Building SF 7,500 - 12,000
Lot Size 1 - 2.5 Acres
Lease Term 15 Years
Escalations Varies
Stock Symbol FMS
Credit Rating
S&P BBB
Moody's Baa3
Average Cap Rate Trend
6.57%
2018
6.48%
2019
Rates reflect last 12 mos, short and long-term
Recent Sales Comps
Atlanta, GA 5.92%
Oceanside, CA 6.60%
Raleigh, NC 6.82%