Hims & Hers Health signs 15-year lease for Ohio facility with $5.98 million annual rent

Hims & Hers Health, Inc. (NYSE:HIMS) has entered into a 15-year lease agreement for a new facility in New Albany, Ohio, according to a statement released in a recent SEC filing.

The lease, signed Monday, covers approximately 352,012 square feet at 9885 Innovation Campus Way. The premises will be used for office, research and development, laboratory, manufacturing, and pharmaceutical dispensing purposes.

The initial annual base rent is set at $5,984,204, or about $498,684 per month, with annual increases of approximately 3.25%. Rent payments are scheduled to begin on April 1, 2026, and the lease includes provisions for abated rent. Specifically, the entire base rent is abated from the lease commencement date until the day before rent payments begin, and $262,838.42 per month will be abated for the first five months after rent payments commence.

In addition to base rent, Hims is responsible for all operating expenses, including insurance and real estate taxes, which will also begin on the rent commencement date.

Hims has the option to extend the lease for two additional five-year terms. As security for the lease obligations, Hims has provided a letter of credit from JPMorgan Chase Bank totaling $5,984,204.

The parent company, Hims & Hers Health, Inc., has executed a guaranty of lease, ensuring the obligations of its subsidiary under the agreement.

This information is based on a press release statement included in the company’s recent SEC filing.

In other recent news, Hims and Hers has been in the spotlight with multiple developments. Truist Securities adjusted its price target for Hims and Hers, lowering it to $37 from a previous $48, while maintaining a Hold rating. The firm anticipates that Hims’ GLP-1 related revenues may see an increase in the third quarter, with a modest rise expected in the fourth quarter due to deferred revenue realization. BofA Securities has reiterated its Underperform rating on Hims and Hers, citing mixed signals in the company’s GLP-1 franchise and concerns about a slowdown in its core business. The analyst from BofA Securities also highlighted that the future of compounding might be influenced more by the FDA than by court rulings.

Additionally, Hims & Hers is under investigation by the Federal Trade Commission for its business practices, specifically regarding the ease of canceling subscriptions. This probe has been ongoing for more than a year, though no formal accusations have been made. Meanwhile, in related industry news, GoodRx announced a collaboration with Novo Nordisk to offer Ozempic and Wegovy at a reduced price of $499 per month for self-paying patients. This offer is now available at over 70,000 retail pharmacies across the country, marking a significant price reduction for these medications.

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