Fresenius Medical Care: Tyler, TX

RARE 20-YEAR LEASE WITH ANNUAL CPI INCREASES
New 20 year Absolute NNN lease with annual CPI rent increases (1% floor, 2% max). There are an additional three, 5-Year Renewal Option Periods.

ABSOLUTE NNN LEASE
Unlike the standard dialysis center leases with significant Landlord responsibilities (such as roof, structure, parking lot and HVAC replacement), the Subject Property has an absolute NNN lease structure that provides an investor with a long-term, passive income stream with no landlord maintenance responsibilities whatsoever. See Market Lease Comparison on pages 2-3.

STRATEGICALLY LOCATED 2 MILES FROM NEWLY CONSTRUCTED FRESENIUS ADMINISTRATION BUILDING
Located just 2 miles north of the 9.2 acre newly constructed 80,000 SF, two-story, $11.2 million Fresenius Medical Services corporate building. Fresenius Medical Care will focus on business operations, medical billing and initial employee training at the state-of-the-art facility. The total economic impact of this expansion and investment into Tyler is estimated to be $370 million and $62 million alone in added sales tax revenue and increased residential property values in Tyler/Smith County over the first 10 years of operation, according to an impact study conducted by Impact DataSource of Austin, Texas.

INVESTMENT GRADE TENANT
Fresenius Medical Care Holdings, Inc., the Guarantor under the Lease, carries an Investment Grade Credit Rating of “BBB-” from S&P and “Baa3” from Moody’s.

FRESENIUS MEDICAL CARE CORPORATE LEASE(1)
• Fresenius Medical Care reported $17.8 Billion in revenue and a net worth of $10.8 Billion (2017)
• Fresenius Medical Care is the world’s largest provider of products and services for individuals with renal diseases of which approximately 3.2 million patients worldwide regularly undergo dialysis treatment
• Revenue in North America, approximately 72% of Fresenius Medical Care’s total revenue, increased 8% from the previous year
• Fresenius Medical Care serves 320,960 patients in more than 50 countries across 3,752 clinics
• Fresenius Medical Care employs more than 114,000 people in more than 50 countries around the world, which includes approximately 60,000 in North America

(1) All financial data shown above is for Fresenius Medical Care, which does not guarantee the Lease. Lease is guaranteed by the U.S. entity, Fresenius Medical Care Holdings, Inc., which carries an investment grade credit rating of “BBB-” from S&P and “Baa3” from Moody’s.
Sources: www.freseniusmedicalcare.com, Yahoo Finance, Standard & Poor’s, Moody’s.

TX Broker of Record: Timothy Speck
License: 432723