Fresenius Medical Care

Fresenius Medical Care AG & Co. KGaA, a kidney dialysis company, provides dialysis care and related services, and other health care services. It offers dialysis treatment, and related laboratory and diagnostic services through a network of outpatient dialysis clinics; materials, training, and patient support services comprising clinical monitoring, follow-up assistance, and arranging for delivery of the supplies to the patient’s residence; and dialysis services under contract to hospitals in the United States for the hospitalized ESRD patients and for patients suffering from acute kidney failure.

The company also develops, manufactures, and distributes dialysis products, including hemodialysis machines, peritoneal cyclers, dialyzers, peritoneal solutions, hemodialysis concentrates, solutions and granulates, bloodlines, renal pharmaceuticals, and water treatment systems for the treatment of ESRD; offers renal medications and supplies to patients at homes or to dialysis clinics; and provides vascular, cardiovascular, and endovascular specialty, as well as hospitalist and intensivist, and medical cost management services. In addition, it develops, acquires, and in-licenses renal pharmaceuticals; and offers laboratory services that include general testing, clinical anatomic pathology, and molecular testing.

The company sells its products to clinics, hospitals, and specialized treatment clinics directly, as well as through local sales forces, independent distributors, dealers, and sales agents. As of December 31, 2016, it operated 3,624 dialysis clinics in approximately 45 countries worldwide. Fresenius Medical Care AG & Co. KGaA was founded in 1996 and is headquartered in Bad Homburg, Germany.

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S&P Rating: BBB-

S&P Outlook: Stable

Moody Rating: Ba1

Moody Outlook: Stable

Typical Lease Characteristics

Lease Term: 10 – 15 Years  Years

Lease Type: Absolute NNN Lease and NN lease

Lease Increases: 10% Every 5 years 

Lease Extensions: 4-5 (5) Year Options

Lease Guarantor: Corporate

Tenant Overview

Fresenius Kabi has made a number of impressive recent acquisitions generating a rich pipeline of drugs, generics, biosimilars, and home dialysis products. Fresenius’ product and market development strategy is ingeniously defensive yet growth oriented. The company is uniquely positioning its products to exploit and catalyze rising home health trends in medical care.

Fresenius makes for a great tenant given its size, presence in its industry, and future outlook. Despite their low risk of vacating upon expiration however, demopgrahics and phyiscal location must be considered since re-tenanting could pose a problem with these spaces

Positives:

  • Public Company, Credit Rated
  • Less prone to economic pressures
  • Typically Long term leases with increases

Negatives:

  • Typically low cap rates
  • Physical locations often make it difficult when re-tenanting

Market Snapshots:

On Market Ranges:

# of Properties in set: 15

Price: $2,710,250 - $3,222,190Average: $3,011,392

PPSF: $350 - $410Average: $368

Year Built: 1977 - 2015Average: 1999

CAP Rate Range: 5.58% - 6.69%Average: 6.20%

Size range: 6,048 sq ft - 11,500 sq ft Average: 8,038 sq ft

Last 12 Month Range:

# of Properties in set: 36

Price: $2,622,380 - $3,182,220Average: $2,946,497

PPSF: $301 - $352Average: $317

Year Built: 1969 - 2017Average: 1999

CAP Rate Range: 5.23% - 6.60%Average: 6.23%

Size range: 3,215 sq ft - 15,680 sq ft Average: 7,986 sq ft

Fresenius Medical Care Similar Tenants

Fresenius Medical Care Company Profile

Headquarters Information

Bad Homburg, Germany

Founded in 1996

Company type: Public

Stock Ticker: FME

Sector: Healthcare

Industry: Specialized Health Services

# of Employees: 112,163

S&P Rating: BBB-

S&P Outlook: Stable

S&P Rating: Ba1

Moody Outlook: Stable

Fresenius Medical Care Stock Keys

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