DaVita Tenant Overview

Net Lease Advisory Tenant Davita sm


  • Corporate guaranty
  • NNN leases
  • Proximity to hospitals and medical offices


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

Earnings Highlights

Earnings Summary

Tenant Description

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 March 31, 2019, DaVita Kidney Care operated or provided administrative services at 2,664 outpatient dialysis centers located in the United States serving approximately 203,000 patients. The company also operated 241 outpatient dialysis centers located in 9 countries outside the United States.

Average Cap Rate
Trailing 12-month average
Average Property & Lease
Average Sale Price $2,045,250
NOI $132,719
$/Square Foot $164 - $341
Building SF 6,000 - 12,500
Lot Size 1 - 2.5 Acres
Lease Term 15 Years
Escalations 2-3% Annually or 10% Every 5 Years
Stock Symbol DVA
Credit Rating
Moody's Ba2
Average Cap Rate Trend
Rates reflect year-over-year comparison
Recent Sales Comps
Rockford, IL 4.53%
Lancaster, PA 6.48%
Wilmington,OH 7.12%
Fort Valley, GA 8.50%