DaVita | Internet Lease Advisor

DaVita | Net Lease Advisor
November 28, 2016 0 Comments

Up to date: November 25, 2019

Net Lease Advisory Tenant Davita sm

Professionals

  • Company warranty
  • NNN leases
  • Proximity to hospitals and medical workplaces

Cons

  • Structure particular to medical sector
  • Costly to re-lease ought to the tenant go away

Earnings Highlights

Earnings Abstract

  • Consolidated revenues of $2.904 Million
  • Working revenue of $378 Million
  • Repurchased 30,591,750 shares of widespread inventory at a mean value of $57.14 per share

Tenant Description

DaVita is the main supplier of kidney care within the US, delivering dialysis companies to sufferers.

Traders like DaVita’s small worth level and the truth that kidney dialysis is a progress trade. Traders take safety from the tenant’s funding within the construct out of the property together with the set up of specialty commerce fixtures that make it much less probably for the tenant to go away at lease expiration. The very nature of DaVita’s enterprise, kidney dialysis, requires shoppers to go to routinely and constantly, which in flip produces a dependable revenue stream for that location. The medical trade as a complete is poised for future progress and web lease buyers are recognizing the soundness this lends.

Because the inhabitants in the USA ages, the prevalence of persistent kidney illness will rise in line with a report revealed within the American Journal of Kidney Illness. Adults, ages 30 and older, who’ve CKD is projected to extend from the present 13.2% to 14.4% in 2020, and 16.7% in 2030. These projections proceed to assist the demand for dialysis facilities and the expansion on this trade.

DaVita, Inc, a Fortune 500 Firm, is headquartered in Denver, Colorado. DaVita – which is Italian for “giving life” – started in 1999. Their choices embody in-center hemodialysis, in-center nocturnal dialysis, peritoneal dialysis, residence hemodialysis, vascular entry administration, persistent kidney illness training, and renal weight loss plan help.

As of March 31, 2019, DaVita Kidney Care operated or offered administrative companies at 2,664 outpatient dialysis facilities situated in the USA serving roughly 203,000 sufferers. The corporate additionally operated 241 outpatient dialysis facilities situated in 9 international locations outdoors the USA.

Common Cap Fee

5.50%

12 mo avg with 10+ yr lease time period

Common Property & Lease

Common Sale Value $4,449,644
NOI $265,048
$/Sq. Foot $355 – $740
Constructing SF 6,000 – 12,500
Lot Measurement 1 – 2.5 Acres
Lease Time period 15 Years
Escalations 2-3% Yearly or 10% Each 5 Years
Inventory Image DVA

Common Cap Fee Pattern

Charges mirror final 12 mos, brief and long-term

Latest Gross sales Comps

Manitowoc, WI 6.37%
Alhambra, CA 5.35%
Sherman, TX 6.13%

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