Fresenius - Corporate Guarantee - Early 5 Yr Lease Extension

Investment Overview

100% fee simple interest in the Fresenius Kidney Care dialysis center at 1101 Nile Street, Eunice, Louisiana. Fresenius recently signed an early 5-year lease extension under its NN lease, confirming its continued long-term use of the property. The lease includes 3% annual rent increases throughout the extension term. PREMIER INVESTMENT-GRADE TENANT Fresenius Medical Care Holdings, Inc. (NYSE: FMS) ranks as the global frontrunner in renal care, delivering services to roughly 299,000 dialysis patients across an extensive international network exceeding 4,100 clinics (with approximately 4.2 million patients worldwide requiring dialysis treatment). The company holds a solid investment-grade rating of BBB- from S&P (with a stable outlook), supported by its robust financial structure and dominant position in the sector. FRESH LEASE RENEWAL The tenant has recently finalized an early five-year extension of its absolute net (NN) lease, pushing the overall remaining term to about 6.5 years and reinforcing its strong, long-term dedication to maintaining operations at this prime site. RELIABLE RENT ESCALATION Structured with 3% yearly increases in base rent across the current term, the lease also includes options for resets to fair market rent levels upon future renewals—ensuring steady, compounding cash flow growth for the new owner. ELEVATED LOCAL DEMAND FOR RENAL SERVICES Louisiana continues to show significant end-stage renal disease (ESRD) prevalence, ranking among the higher-incidence states nationally based on recent health data. This underscores the critical, ongoing requirement for dialysis access in the region, positioning the facility advantageously for enduring performance and patient volume. STABLE, RECESSION-RESISTANT INDUSTRY The dialysis sector demonstrates consistent expansion and strong protection against economic cycles. Recent figures indicate over 516,000 U.S. patients actively receiving dialysis treatment (as of early 2025 national census data), with historical annual growth around 6% in prior decades. Government programs, particularly Medicare, cover the majority of services, providing Fresenius with dependable revenue streams that remain largely unaffected by broader market volatility. ACADIA PARISH, LOUISIANA This property serves Acadia Parish, a key area in south-central Louisiana with a 2024 estimated population of approximately 56,600 (and projections holding steady around 56,000–56,500 in recent years). As part of the larger Lafayette metro region, the parish supports consistent healthcare demand in its mix of rural and small-town communities, making it an ideal location for essential medical infrastructure like dialysis.

Investment Highlights

• 100% fee simple interest in a premier dialysis center
• Leased to globally recognized Fresenius Medical Care with strong financial stability
• 6.5 years remaining term with 3% annual rent increases
• Positioned in a high-demand, recession-resistant healthcare sector
• Located in central Eunice, LA with vibrant community amenities