Debt-Free TIC Property

Transcription

1 Debt-Free TIC Property 1305 W. Moreno Street Pensacola, FL Purchase Price $4,690,000 The Tenant in Common (TIC) interests offered and sold by Rockwell Debt-Free Properties constitute interests in real property. They do not constitute securities. Consequently, federal and state laws regulating the sale of securities do not apply with respect to the sale of TIC interests, and purchasers of TIC interests will not be entitled to the protections afforded to purchasers of securities under federal and state securities laws. Nothing in the attached offering documents should be construed as an offer or a solicitation of an offer to buy or sell securities.

2 EXECUTIVE SUMMARY

3 EXECUTIVE SUMMARY FRESENIUS The Tenant Fresenius Medical Care is an ideal tenant for several reasons. First and foremost, they are an extremely profitable, well-run, multi-national corporation. Additionally, Fresenius is a classic industry leader, as they own the lion s share of their market, with the number two player being their largest client. Furthermore, they dominate a truly non-cyclical industry. Because kidney dialysis is an essential, life-sustaining medical service, their business is almost completely unaffected by economic fluctuations which can decimate other fields. With more than 3,225 clinics around the globe, Fresenius is the world s largest integrated provider of products and services for individuals undergoing dialysis due to chronic kidney failure, a condition that affects more than two million individuals worldwide. It services approximately 265,000 patients around the globe each year. For more the 100 years, Fresenius has been producing and distributing pharmaceutical and dialysis products. In 1996, Fresenius Worldwide Dialysis merged with National Medical Care and Fresenius Medical Care was formed. Since that point, the company has been able to quadruple its sales and increase its earnings tenfold. Fresenius expects its revenue in 2014 to reach an all-time high of approximately $15.2 billion. Financial and operating highlights include: Net Revenue Net revenue for 2013 was $14.61 billion, an increase of 6% compared to the net revenue for Operating Income Operating income for 2013 was $2.25 billion, an increase of 2% compared to the operating income of Net Income Net income for the 4th quarter of 2013 was $349 million, an increase of 36% compared to 4th quarter of Outlook Fresenius expects revenue to be around $15.2 billion in 2014, translating into a growth rate of 4%. mynoahs.com

4 EXECUTIVE SUMMARY FRESENIUS The Lease Fresenius Medical Care has committed to lease the property for an initial term of 10 years, which expires in February During the initial term of the lease the base rent shall increase by 10% every 5 years. The lease also includes three consecutive options to extend the lease for a period of 5 years each. One of the more appealing aspects of this lease is that Fresenius Medical Care pays directly or reimburses all of the taxes, insurance premiums and maintenance costs of the building. Fresenius pays the Tenant s share of the operating expenses incurred by the Landlord during the term of the lease. Therefore, the property co-owners have very few active management duties, rendering this triple-net lease property a passive, hassle-free real estate investment. SOME OF THE LEASE SPECIFICS ARE: Lease payment schedule: Lease guarantor: Initial lease term: Renewal options: Rent increases: Building size: Monthly Fresenius Medical Care Holdings, Inc. 10 years Three 5-year options 10% every 5 years 15,000 square feet mynoahs.com

5 PROPERTY DESCRIPTION

6 PROPERTY DESCRIPTION FRESENIUS The Fresenius Medical Care center is located in the heart of the coastal community of Pensacola, Florida. Pensacola is a beautiful coastal city located on the scenic Gulf of Mexico at the westernmost part of the Florida panhandle. The population of the Pensacola Metropolitan Area is more than 460,000. With a diverse workforce, favorable tax climate and strong manufacturing and technology sectors, the Greater Pensacola area is emerging as one of the most desirable beach side communities in which to locate or expand a business. The area is also a popular destination for retirees as it boasts a warm and sunny climate, low cost of real estate and no state income tax. from the new property, on the fifth floor of the Baptist Healthcare Towers. The relocation was mutually planned and executed by Baptist Healthcare and Fresenius under the consideration that Fresenius preferred that their facility be both easily visible and accessible to their patient base by operating on the first floor of the building in which they tenant, and Baptist s new expansion of their orthopedic clinic within the towers. The local Fresenius team of nephrologists has been providing dialysis services to Baptist Healthcare for over 25 years. In addition to this oncampus outpatient facility, they have executed an inpatient dialysis contract with Baptist for their procedural services, extending their partnership for years to come. This new facility is located directly on the Baptist Hospital Campus. The 492-bed hospital is part of the Mayo Clinic Network and has been serving the healthcare needs of the community in its current location for more than 60 years. It recently underwent a $50 Million Dollar renovation. The new Fresenius Medical Care Clinic is part of a huge redevelopment project that spreads across the campus surrounding Baptist Hospital. For that reason, the architecture and exterior of the Fresenius match the newly renovated design of the hospital. Fresenius Medical Care of Pensacola is a relocation of services that were previously located across the street mynoahs.com

7 PROPERTY DESCRIPTION FRESENIUS The building itself is a brand new, attractive, 15,000 square foot facility. It is a steel framed, red brick structure that was constructed in The parking lot has spaces for 70 vehicles including 7 spots for the physically challenged. The interior is designed to be low-maintenance and boasts state-of-the-art equipment and amenities. The high quality of the materials used and the craftsmanship and care that went into the building are reflected throughout the interior and exterior. Included in the floor plan are the following; large reception and waiting rooms, a large patient treatment area, isolation treatment rooms, multiple private offices, conference room, break room with full kitchen, restrooms, exam room, large storage area and water treatment equipment room. In addition to the dialysis-related medical equipment, each of the treatment stations has its own large, flat screen monitor that can be used to watch television or movies or access the Internet while the patient is treated. The layout of the building makes for very efficient use of the space. The interior and exterior are very clean and well-maintained and provide a comfortable and inviting environment for staff and patients alike. Fresenius is thrilled to move into their new home in the coming weeks, with the official lease commencement date being February 1, They already have an extremely large base of regular patients receiving dialysis treatment three times per week in multiple shifts from Monday through Saturday. In summary, because this is a new, state-of-the-art medical facility situated in the heart of a strong, well-established medical campus providing a vital life-sustaining service to a population with an ever-increasing need, Fresenius plans to be in this clinic serving the people of the community for a very long time into the future. mynoahs.com

8 PROPERTY DESCRIPTION FRESENIUS 98 Perdido Key Innerarity Point Rd Big Lagoon Fort Pickens Rd Pensacola Beach English Navy Cove 399 Southwest Pensacola Gulf Breeze State Park Bayou Grande Tarkiln Bayou Preserve 173 Gulf Beach Hwy Warrington Butcherpen Cove Gulf Breeze Pkwy Perdido Bay Lillian Lillian Hwy W Navy Blvd Pensacola Avalon Blvd 727 Sunset Dr West Pensacola W Moreno Street Southeast Pensacola Bellview Brent 297 Garcon Point Water Management Area Northeast Pensacola Northwest Pensacola Ferry Pass 8 Escambia Bay Seminole Ensley A 90 E 9 Mile Rd Ashton Brosnaham Park 29 Avalon Blvd 8 North Northwest Pensacola Floridatown Park Memory Park Cemetery Cantonment Pace Caroline St mynoahs.com

9 STORM 12 PROPERTY DESCRIPTION FRESENIUS GENERAL NOTES: SIGN NOTE: PROJECT NOTE: DIMENSIONING NOTE: PARKING REQUIREMENTS: AREA CALCULATIONS: LEGEND GEN PAD 1 STORY BUILDING 15,000 SF FFE = ' R/W MORENO ST REET 10 MATCHLINE SEE SHEET C2.1 SHEET 6 OF 17 C2.0 DRAWING No. Dr. By: Ck By: Job No.: Date: GTP PAB Kevin Gibson, P.E. No SEAL No. DATE REVISION COP COMMENTS NWFWMD COMMENTS REBOL-BATTLE & ASSOCIATES 2301 N. Ninth Avenue, Suite 300 Pensacola, Florida Telephone Fax EB LB7916 This drawing is the property of Rebol-Battle & Associates, and may not be reproduced without written permission. mynoahs.com

10 PROPERTY DESCRIPTION FRESENIUS mynoahs.com

11 PROPERTY DESCRIPTION FRESENIUS mynoahs.com

12 LEASE PROFILE

13 LEASE PROFILE FRESENIUS Lease Term: 10 year base term with 10% increases every 5 years Year Annual Monthly Cap Rate $257,987 $21, % $283,768 $23, % Option 1 $312,165 $26, % Option 2 $343,381 $28, % Option 3 $377,719 $31, % Average Cap Rate: 5.78% over the initial lease term Renewal Options Three 5-year options Options to Extend: Lessee shall have the right and option to renew this lease for three additional periods of 5 years each, immediately following the expiration of the initial term of this lease. The base rent for each option term shall be equal to the base rent for the last year of the prior term increased by 10%. Operating Expenses and Utilities Taxes: Tenant shall pay all Taxes assessed against the property. Tenant shall have the right to make arrangements with all relevant taxing authorities so that tax bills are sent directly to Tenant. Insurance: Tenant covenants and agrees that throughout the Lease Term it will keep in full force and effect the following insurance policies: (a) All risk property insurance, including fire and extended coverage, vandalism, malicious mischief, sprinkler leakage and water damage, demolition and debris removal and flood insurance (if the building is located in a flood hazard area) insuring, on a replacement cost basis, Tenant Improvements and Alterations that Tenant is responsible for. (b) Comprehensive general liability or public liability insurance with limits not less than $2,000,000 combined single limit, including coverage for bodily injury and property damage to third parties. Landlord s Insurance: Landlord covenants and agrees that throughout the Lease Term, it will keep in full force and effect the following insurance policies: (a) All risk property insurance, including fire and extended coverage, vandalism, malicious mischief, sprinkler leakage and water damage, demolition and debris removal and flood insurance insuring, on a replacement cost basis, the Property and the Premises, including but not limited to the parking lot, common areas, foundation, and roof. (b) Comprehensive general liability or public liability insurance with limits not less than $2,000,000 combined single limit, including coverage for bodily injury and property damage to third parties. Reimbursement of Landlord Insurance Expense: Tenant shall reimburse Landlord for Landlord s cost associated with the insurance premiums (but not deductibles) for the cost of insurance. mynoahs.com

14 LEASE PROFILE FRESENIUS Repairs and Maintenance Maintenance, Repair, and Replacement at Lessor s Sole Cost: (NNN-Lease) Tenant s Repair and Maintenance Obligations: During the Lease Term, Tenant shall at its sole cost and expense keep and maintain the non-structural portions of the interior of the Premises, including all Tenant Alterations, in good order and repair and free of refuse and rubbish. Landlord s Repair and Maintenance Obligations: (Section 6.2) During the Lease Term, Landlord shall: (a) Without expense to Tenant, maintain and make all necessary repairs and/or replacements to the exterior and structure portions of the Property, Building and Premises, including, without limitation: foundations, structure, load bearing walls, exterior walls, the roof and roof supports, columns, retaining walls, gutters, downspouts, flashings, and footings. (b) Maintain and make all necessary repairs and/or replacements to the following, unless Tenant elects to maintain any of the following by providing written notice to Landlord electing to do the same at its sole cost and expense: parking areas (including surfacing, striping, paving and sealing), curbing, sidewalks and directional markers, ice and snow removal, water mains, gas and sewer lines, private roadways, landscape, loading docks, if any, and provision and repair of adequate lighting during all hours of darkness that Tenant shall be open for business. Tenant Reimbursement: Tenant shall reimburse Landlord for the costs and expenses of the maintenance and repair contemplated in Section 6.2(b) (the Maintenance Expenses ), except for the replacement of the parking lot or any other capital expenditure, as defined in Section 6.2(b)(vii) below, as additional rent for the same periods and in the same manner, time, and place as the Base Rent. For said Maintenance Expenses, Landlord may include a management fee not to exceed five percent (5%) of the total annual Maintenance Expenses for the calendar year. *A full copy of the Fresenius Lease provided upon request. mynoahs.com

15 FINANCIAL SUMMARY

16 Fresenius Medical Care reports fourth quarter and full year 2013 results Targets achieved for fiscal year 2013 Further expansion of global franchise and new record level of revenue Increased dividend to be proposed at the Annual General Meeting Fourth Quarter 2013 Key Figures: Net revenue $3,867 million +4% Operating income (EBIT) $661 million +18% Net income 1 $349 million +36% Basic earnings per ordinary share $ % Full Year 2013 Key Figures: Net revenue $14,610 million +6% Operating income (EBIT) $2,256 million +2% Net income 1 $1,110 million -6% Basic earnings per ordinary share $3.65-6% 1 attributable to shareholders of Fresenius Medical Care AG & Co. KGaA Dividend proposal: Ordinary share %

17 Rice Powell, chief executive officer of Fresenius Medical Care, commented: With a very strong fourth quarter, we completed a sound fiscal year 2013 and achieved the targets we set for ourselves. Despite the impact of the reimbursement cuts in the U.S. that were introduced last year we achieved another record in net revenue, supported by a continued excellent cash flow performance. Looking ahead we are faced with a challenging environment, in particular with structural changes due to growing pressure on reimbursement systems. In order to successfully meet these changes we are concentrating on measures aimed at enhancing our profitability in 2014 and beyond. Fourth Quarter 2013 Revenue Net revenue for the fourth quarter of 2013 increased by 4% to $3,867 million (+5% at constant currency) compared to the fourth quarter of Organic revenue growth worldwide was 3%. Dialysis services revenue grew by 3% to $2,895 million (+4% at constant currency) and dialysis product revenue increased by 8% to $972 million (+8% at constant currency). North America revenue for the fourth quarter of 2013 increased by 3% to $2,507 million. Organic revenue growth was 1.5%. Dialysis services revenue grew by 3% to $2,288 million with a same store treatment growth of 3.4%. Dialysis product revenue increased by 6% to $219 million. International revenue increased by 6% to $1,351 million (+8% at constant currency). Organic revenue growth was 7%. Dialysis services revenue increased by 4% to $607 million (+8% at constant currency). Dialysis product revenue increased by 8% to $744 million (+8% at constant currency). Earnings Operating income (EBIT) for the fourth quarter of 2013 increased by 18% to $661 million compared to $559 million in the fourth quarter of Operating income for North America for the fourth quarter of 2013 increased by 7% to $446 million compared to $416 million in the fourth quarter of In the International segment, operating

18 income for the fourth quarter of 2013 increased by 23% to $261 million compared to $212 million in the fourth quarter of Net interest expense for the fourth quarter of 2013 was $98 million, compared to $115 million in the fourth quarter of Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA for the fourth quarter of 2013 was $349 million, an increase of 36% compared to the corresponding number of $257 million for the fourth quarter of Income tax expense was $171 million for the fourth quarter of 2013 which translates into an effective tax rate of 30.4%. This compares to income tax expense of $142 million and a tax rate of 32.1% for the fourth quarter of Basic earnings per ordinary share (EPS) for the fourth quarter of 2013 was $1.16, an increase of 38% compared to the corresponding number for the fourth quarter of The weighted average number of shares outstanding for the fourth quarter of 2013 was approximately million shares, compared to million shares for the fourth quarter of The decrease in shares outstanding resulted from the share buy-back program, which was completed in August 2013, partially offset by stock option exercises in the past twelve months. Cash flow In the fourth quarter of 2013, the company generated $589 million in net cash provided by operating activities, an increase of 3% compared to the corresponding figure of last year and representing 15.2% of revenue. A total of $234 million was spent for capital expenditures, net of disposals. Free cash flow was $355 million (representing 9.2% of revenue) compared to $345 million in the fourth quarter of A total of $198 million in cash was spent for acquisitions, net of divestitures. Free cash flow after investing activities was $157 million, compared to $286 million in the fourth quarter of 2012.

19 Full year 2013 Revenue and Earnings Net revenue for the full year 2013 increased by 6% to $14,610 million (+6% at constant currencies) compared to the full year Operating income (EBIT) for the full year 2013 increased by 2% to $2,256 million compared to $2,219 million in the full year Net interest expense for the full year 2013 was $409 million compared to $426 million for the full year For the full year 2013, net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA was $1,110 million, down by 6% from the corresponding number of $1,187 million for the full year Income tax expense for the full year 2013 was $592 million which translates into an effective tax rate of 32.0%. This compares to income tax expense of $605 million and a tax rate of 31.3% for the full year In the full year of 2013, basic earnings per ordinary share (EPS) decreased by 6% to $3.65 compared to $3.89 for the full year The weighted average number of shares outstanding during the full year 2013 was approximately million.

20 Cash flow Net cash provided by operating activities during the full year 2013 was $2,035 million (representing 13.9% of revenue) compared to $2,039 million for the same period in A total of $728 million in cash was spent for capital expenditures, net of disposals. Free cash flow for the full year 2013 was $1,307 million compared to $1,373 million in the same period in A total of $478 million in cash was spent for acquisitions, net of divestitures. Free cash flow after investing activities was $829 million compared to a negative $242 million in the full year Employees As of December 31, 2013, Fresenius Medical Care had 90,690 employees (full-time equivalents) worldwide, compared to 86,153 employees at the end of This increase of approximately 4,500 employees is due to overall growth in the company s business and acquisitions. Balance sheet structure The company s total assets were $23,120 million (Dec. 31, 2012: $22,326 million), an increase of 4%. Current assets increased by 3% to $6,287 million (Dec. 31, 2012: $6,127 million). Non-current assets were $16,833 million (Dec. 31, 2012: $16,199 million), an increase of 4%. Total equity increased by 3% to $9,485 million (Dec. 31, 2012: $9,207 million). The equity ratio was 41%, unchanged compared to the ratio at the end of Total debt was $8,417 million (Dec. 31, 2012: $8,298 million). As of December 31, 2013, the debt/ebitda ratio was 2.8 (Dec. 31, 2012: 2.8). Please refer to the attachments for a complete overview of the results for the fourth quarter and full year 2013.

21 Dividend At the Annual General Meeting to be held on May 15, 2014, shareholders will be asked to approve a dividend of 0.77 per ordinary share, an increase of 3% from 2012 ( 0.75). For the 17 th consecutive year, shareholders can expect to receive an increased annual dividend. Outlook The company expects revenue to be at around $15.2 billion in 2014, translating into a growth rate of around 4%. Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA is expected to be between $1.0 billion and $1.05 billion in The company initiated a global efficiency program designed to enhance the company s performance over a multiyear period. Potential cost savings before income taxes of up to $60 million generated from this program are not included in the outlook for For 2014, the company expects to spend around $900 million on capital expenditures and around $400 million on acquisitions. The debt/ebitda ratio is expected to be equal to or below 3.0 by the end of Press Conference Fresenius Medical Care will hold a press conference at its headquarters in Bad Homburg, Germany to discuss the results of the fourth quarter and full year 2013 on Tuesday, February 25, 2014, at 10 am CET. The company cordially invites journalists to view the live video webcast at the company s website in the section News and Press / Video service. A replay will be available shortly after the meeting. Fresenius Medical Care is the world's largest integrated provider of products and services for individuals undergoing dialysis because of chronic kidney failure, a condition that affects more than 2.5 million individuals worldwide. Through its network of 3,250 dialysis clinics in North America, Europe, Latin America, Asia-Pacific and Africa, Fresenius Medical Care provides dialysis treatments for 270,122 patients around the globe. Fresenius Medical Care is also the world's leading provider of dialysis products such as hemodialysis machines, dialyzers and related disposable products.

22 For more information about Fresenius Medical Care, visit the company s website at Disclaimer This release contains forward-looking statements that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including changes in business, economic and competitive conditions, regulatory reforms, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care AG & Co. KGaA's reports filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care AG & Co. KGaA does not undertake any responsibility to update the forward-looking statements in this release.

23 Fresenius Medical Care - Statement of earnings in US$ million, except share data, audited Twelve months ended December 31, Change Revenue Net dialysis care 11,130 10, % Dialysis products 3,480 3, % Total net revenue 14,610 13, % Costs of revenue 9,872 9, % Gross profit 4,738 4, % Selling, general and administrative 2,391 2, % Gain on sale of dialysis clinics (9) (36) -74.0% Research and development % Income from equity method investees (26) (17) 49.7% Other operating expenses _ 100 Operating income (EBIT) 2,256 2, % Investment gain _ (140) Interest expense, net % Income before taxes 1,847 1, % Income tax expense % Net income 1,255 1, % Less: Net income attributable to noncontrolling interests % Net income attributable to shareholders of FMC AG & Co. KGaA 1,110 1, % Operating income (EBIT) 2,256 2, % Depreciation and amortization % EBITDA 2,904 2, % EBITDA margin 19.9% 20.4% Weighted average number of shares Ordinary shares 301,877, ,139,652 Preference shares 1,937,819 3,969,307 Basic earnings per ordinary share $3.65 $ % Basic earnings per ordinary ADS $1.83 $ % In percent of revenue Cost of revenue 67.6% 66.7% Gross profit 32.4% 33.3% Operating income (EBIT) 15.4% 16.1% Net income attributable to shareholders of FMC AG & Co. KGaA 7.6% 8.6% Employees Fulltime equivalents 90,690 86,153

24 Fresenius Medical Care - Statement of earnings in US$ million, except share data, audited Three months ended December 31, Change Revenue Net dialysis care 2,895 2, % Dialysis products % Total net revenue 3,867 3, % Costs of revenue 2,566 2, % Gross profit 1,301 1, % Selling, general and administrative % Gain on sale of dialysis clinics (0) (2) -98.7% Research and development % Income from equity method investees (12) (3) 318.3% Other operating expenses _ 100 Operating income (EBIT) % Investment gain Interest expense, net % Income before taxes % Income tax expense % Net income % Less: Net income attributable to noncontrolling interests % Net income attributable to shareholders of FMC AG & Co. KGaA % Operating income (EBIT) % Depreciation and amortization % EBITDA % EBITDA margin 21.5% 19.3% Weighted average number of shares Ordinary shares 301,041, ,388,558 Preference shares _ 3,972,955 Basic earnings per ordinary share $1.16 $ % Basic earnings per ordinary ADS $0.58 $ % In percent of revenue Cost of revenue 66.3% 65.1% Gross profit 33.7% 34.9% Operating income (EBIT) 17.1% 15.1% Net income attributable to shareholders of FMC AG & Co. KGaA 9.0% 6.9%

25 Fresenius Medical Care - Key earnings figures Reconciliation of non U.S. GAAP financial measures to the most directly comparable U.S. GAAP financial measures in US$ million, audited Three months ended December 31, Twelve months ended December 31, Change Change Operating income (EBIT), as reported % 2,256 2, % Special items related to Liberty acquisition 1) _ 2 (8) (12) Sequestration impact 18 _ 56 _ Operating income (EBIT), adjusted % 2,304 2, % Net income attributable to shareholders of FMC AG & Co. KGaA, as reported % 1,110 1, % Special items related to Liberty acquisition 2) 0 1 (3) (146) Sequestration impact 9 _ 31 _ Net income attributable to shareholders of FMC AG & Co. KGaA, adjusted % 1,138 1, % 1) 2) Legal, consulting and other expenses and gain on sale of clinics. Net of tax effects of legal, consulting and other expenses, gain on sale of clinics, gain on retirement of loan receivable and investment gain.

26 Fresenius Medical Care PENSACOLA, FLORIDA DESCRIPTION Fresenius Medical Care is the world s largest integrated provider of products and services for individuals with chronic kidney failure, a condition that affects about 2.2 million individuals worldwide. Through its network of more than 3,225 dialysis clinics in North America, Europe, Latin America and Asia-Pacific, Fresenius Medical Care provides dialysis treatment to over 265,000 patients around the globe. PROPERTY INFORMATION TENANT LOCATION PROPERTY TYPE BUILDING / LOT SIZE Fresenius Medical Care 1305 West Moreno Street, Pensacola, FL Single-tenant, freestanding, medical 15,000 sq. ft. PURCHASE PRICE $4,690,000 PENSACOLA, FLORIDA Pensacola is a beautiful coastal city located on the scenic Gulf of Mexico at the westernmost part of the Florida panhandle. The population of the Pensacola Metropolitan Area exceeds 460,000. With a diverse workforce, favorable tax climate and strong manufacturing and technology sectors, the Greater Pensacola area is emerging as one of the most desirable beachside communities to locate or expand a business. Because of its warm climate, low cost of real estate and no state income tax, Pensacola was recently named as one of the best places to retire by Forbes Magazine. ABOUT TENANTS-IN-COMMON Tenants-in-Common or TIC ownership allows multiple buyers to purchase an undivided percentage of a single piece of property. Each buyer receives his own deed to the property and benefits from all of the income, tax shelters and appreciation it provides. Our properties have the following characteristics: $150,000 minimum investment amounts Property is offered debt-free Strong national companies as tenants Long-term, corporate-guaranteed lease No closing costs Satisfies IRS requirements for 1031 exchanges LEASE INFORMATION LEASE GUARANTOR Fresenius Medical Care Holdings, Inc. INITIAL LEASE TERM 10 years RENT INCREASES 10% every five years RENEWAL OPTIONS Three five-year options AVERAGE RETURN 6.72% (INCLUDING OPTIONS) ANNUAL RENT CAP RATE $257, % $283, % OPTION 1 $312, % OPTION 2 $343, % OPTION 3 $377, % CONTACT INFORMATION ROCKWELL DEBT-FREE PROPERTIES 8494 South 700 East, Ste 200 Sandy, UT Toll Free: Phone Info@RockwellTIC.com