Fresenius Medical Care Tenant Overview

Net Lease Advisor Tenant Fresenius


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


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

Earnings Highlights

Earnings Summary
  • Organic growth accelerated in the second quarter in Care Enablement and Care Delivery including sequentially stable treatment volumes in the U.S.
  • Revenue increased by 1% to EUR 4,825 million in the second quarter (+6% at constant currency, +6% organic).
  • The Company continues to expect for 2023 revenue to grow at a low to mid-single digit percentage rate (2022 basis: EUR 19,398 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
Trailing 12-month average
Average Property & Lease
Average Sale Price $2,945,716
NOI $175,477
$/Square Foot $245 - $393
Building SF 7,500 - 12,000
Lot Size 1 - 2.5 Acres
Lease Term 15 Years
Escalations Varies
Stock Symbol FMS
Credit Rating
Moody's Baa3
Average Cap Rate Trend
Rates reflect year-over-year comparison
Recent Sales Comps
Charlotte, NC 4.90%
Holly Springs, MS 5.73%
Clovis, MN 6.00%
Inglewood, CA 6.83%