Fresenius Medical Care TENANT OVERVIEW


Pros

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

Cons

  • Some NN leases holds landlord responsible for roof and structure
  • Expensive to re-lease should the tenant leave

Tenant Description

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

Investors like medical related leased investments. With the demand for dialysis growing, along with Fresenius Medical Care's small price point, investors have found this area an attractive investment. They like the security that is inherent with the investment made by the tenant in the build out of the property and 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 & 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.

finviz dynamic chart for  FMS
Average Cap Rate
6.45%
12 mo avg with 10+ yr lease term
Average Property & Lease
Average Sale Price $3,663,482
NOI $235,318
$/Square Foot $332
Building SF 8,000 - 15,000
Lot Size 1 - 2.5 Acres
Lease Term 15 Years
Escalations 2-3% Annually or 8-10% Every 5 Years
Stock Symbol FMS
Credit Rating
S&P BBB-
Moody's Ba1
Average Cap Rate Trend
7.95%
2015
7.68%
2016
Rates reflect last 12 mos, short and long-term
Recent Sales Comps
Chicago, IL 7.94%
Worthington, OH 6.91%