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INVESTMENT HIGHLIGHTS
25+ Year Occupancy History - Fresenius has been operating at this location since 1995 and has renewed the lease on several occasions, showing a strong ongoing commitment to operating here for the foreseeable future. The end of the latest term extension will mark over 30 years that Fresenius has been the dominant dialysis operator in the Opelousas market.
Investment-Grade Corporate Guarantee - The lease is fully guaranteed by Fresenius Medical Care, Inc. (NYSE: FMS), the leading kidney care company in the world with more than 345,000 patients in its global network of 4,100+ dialysis clinics. Fresenius Medical Care boasts an investment grade BBB credit rating via S&P and a current market cap of approximately $20 billion.
Growing Industry - As of 2020, there were over 808,000 ESRD dialysis patients in the U.S., having grown 6% annually over the last 15 years. In 2018, Medicare spent approximately $8.7 billion on dialysis services. As most patients were covered under some form of government program, Fresenius’ profitability is primarily insulated from the ups and downs experienced by the broader economy.
Low Price Point / High Yield Opportunity - The price point for this asset is ideal for an all-cash and/or 1031 investor; this offering presents an opportunity to acquire an asset leased to an investment-grade medical tenant at well-above the average market yield.
Passive Lease Structure - Fresenius is operating under a passive double-net (NN) lease structure in which the tenant is responsible for all operating expenses including taxes, insurance, common area maintenance, and HVAC repair and replacement.
Insulated from Macroeconomic Changes - Approximately 90% of dialysis patients were covered under some form of government-based program, meaning the company’s profitability is somewhat insulated from the ups-and-downs experienced in the broader economy
