Heartland Dental
The largest dental support organization (DSO) in the United States — 1,850+ supported offices across 38–39 states, majority-owned by KKR. Heartland is the tenant in two of the four properties: the Ankeny IA two-tenant medical asset and the Lafayette LA single-tenant absolute-NNN asset (a "top 1% location systemwide"). Despite its scale and PE backing, its credit is sub-investment grade, which independent research flags as the most important fact omitted from the OMs.
Key Facts¶
- Credit: Moody's B2 / S&P B (upgraded from B- in May 2026) — speculative grade, highly leveraged.
- Revenue grew 7.3% in 2025; 11.5M patient visits; 75 de novo openings; 3,100 supported doctors.
- Industry headwinds: patient deferral, insurance-network tension, tariff-driven CapEx, PE refinancing costs.
- Pricing concern: HD properties offered at 6.00–6.25% caps vs. DSO market of 7.00–8.50%.