Corporate Guaranty (NYSE: KLC) from the #1 Corporate Operator in the Country
– KinderCare is the largest private provider of high-quality early childhood education in the US by center capacity with the ability to serve over 200,000 children across its more than 2,400 centers and sites.
– KinderCare currently operates in over 40 states across the United States.
– #1 largest childcare brand with $2.66 billion in 2024 reported annual revenue.
KinderCare Completed IPO in October 2024
– KinderCare completed its IPO in October 2024, raising approximately $616M in proceeds and receiving a credit rating upgrade as a result.
– FY 2024 revenues of $2.66B, a 5.9% increase over the previous year.
7+ Years Remaining with 2.00% Annual Rental Increases
– KinderCare has ober 7 years remaining on an original 15-year lease that doesn’t expire until 2034.
– The lease includes 2.00% annual rent increases to hedge inflation and one, ten-year option and one, five-year option to renew.
– Aside from structure and foundation, the tenant is responsible for all maintenance as well as real estate taxes, insurance, common areas, utilities, etc making this a prime opportunity for out-of-state investors.
Over $169,000,000 Spent on Education and Daycare in a 5-Mile Radius
– A strong focus on education and early childhood development can make a city more attractive to businesses and skilled workers, contributing to overall economic growth.
– Participants in early childhood programs, including Tulsa’s universal pre-K program, are more likely to enroll in college and potentially experience higher earnings in adulthood.
Des Moines MSA (700,000+ People)
– Home to 707,000 people, the Des Moines metro is the largest in the state of Iowa, comprising Dallas, Guthrie, Madison, Polk and Warren counties.
– The market is approximately 195 miles northeast of Kansas City, 245 miles south of Minneapolis and 330 miles west of Chicago.
– The population is expanding far quicker than the national average with roughly 32,000 additional people expected over the next five years.
