Strawberry Fields REIT, Inc.

What they do

As of December 31, 2025, the company owned or leased 133 healthcare properties with 15,602 licensed beds, comprising 131 skilled nursing facilities, 10 assisted living facilities, and 2 long-term acute care hospitals. It holds fee title to 132 properties and leases one under a long-term lease. Substantially all revenue comes from triple-net leases in which tenants pay real estate taxes, insurance, operating costs, and capital expenditures. As of December 31, 2025, the portfolio was leased to 143 tenants under 32 lease agreements, with roughly 89.4% of properties under a master lease.

Revenue drivers

• Triple-net rental income from skilled nursing facilities — The core business: 131 skilled nursing facilities make up the bulk of the 133-property portfolio, and rents are paid monthly by tenants under long-term triple-net leases.
• Master lease rental income — Approximately 89.4% of properties are held under a master lease with cross-default and cross-collateralization provisions, producing the majority of rental revenue.
• Assisted living and long-term acute care hospital rents — 10 assisted living facilities and 2 long-term acute care hospitals round out the portfolio, contributing a smaller share of rental income.
• Rent escalators and lease renewals — As of December 31, 2025, leases had an average remaining initial term of 7.2 years with average annual rent escalators of 2.8%, and most leases include two 5-year renewal options.

Recent performance

Annual revenue rose from $87.0 million in 2021 to $155.0 million in 2025, with net income growing from $393 thousand to $7.6 million and diluted EPS from $0.07 to $0.60 over the same period. Operating cash flow increased from $44.8 million in 2021 to $90.0 million in 2025. Recent quarterly revenue has been steady: $39.7 million in 2025-09-30, $40.1 million in 2025-12-31, and $40.0 million in each of 2026-03-31 and 2026-06-30. For the six months ended June 30, 2026, net cash provided by operating activities was $41.7 million, consisting primarily of net earnings of $18.4 million adjusted by depreciation and amortization of $22.6 million and foreign currency translation adjustments of $3.1 million. During the first half of 2026, the company sold a property in Oklahoma for $4.2 million and used cash of $40.5 million in the first half of 2025 to acquire properties for the Kansas Master Lease and properties in Oklahoma and Texas.

Strategy

The company has grown through acquisitions, purchasing 72 facilities since January 2020 for an aggregate purchase price of approximately $439.8 million at a weighted average lease yield of 13.9%. In 2025, it acquired 19 skilled nursing and 1 assisted living facilities for a total cost of $112.1 million, expected to generate initial annual cash revenues of approximately $12.1 million. Management also refinanced debt: on June 18, 2026, it closed a $100.0 million term loan facility and a $200.0 million revolving line of credit, refinancing approximately $160.0 million of existing bank indebtedness. The company accesses capital through a Tel Aviv Stock Exchange bond program (Series A, B, C, and D bonds) and has used ATM sales of $1.7 million in the first half of 2026.

Risks

• Tenant concentration and related-party exposure — As of December 31, 2025, 66 facilities representing 48.5% of annualized base rent are leased to and operated by affiliates of CEO Moishe Gubin and director Michael Blisko, creating related-party concentration risk.
• Reliance on tenant rent payments — The company receives rent from tenants but bears no operating expenses, so its revenue depends entirely on tenants' ability to pay, which is tied to healthcare reimbursement and facility operations.
• High leverage and debt covenants — As of June 30, 2026, total liabilities were $845.8 million against $8.3 million of shareholder equity, and the June 2026 credit facilities require an indebtedness-to-EBITDA ratio no greater than 8.0 to 1 and GAAP equity of at least $30 million.
• Geographic and reimbursement concentration — Properties are concentrated in ten states including Arkansas, Illinois, Indiana, Kansas, Kentucky, Missouri, Ohio, Oklahoma, Tennessee and Texas, and adverse changes in healthcare reimbursement could pressure tenants.

Outlook

Management has not provided specific forward guidance in the excerpts, but it continues to pursue acquisitions and has refinanced bank debt to extend maturities to June 2029. The company states that its relationship with Infinity Healthcare provides operating flexibility for evaluating new acquisitions and understanding operational issues at underperforming tenants. As of June 30, 2026, the company was in compliance with its loan covenants.