Strawberry Fields REIT (NYSE AMERICAN: STRW) reported operating results for the year ended Dec. 31, 2025, highlighted by 100% rent collections, FFO of $79.6 million or $1.43 per share and AFFO of $72.5 million or $1.30 per share, up from $60.2 million or $1.15 per share and $55.8 million or $1.07 per share, respectively, in 2024. Net income rose to $33.3 million from $26.5 million and rental income increased to $155.0 million from $117.1 million. During 2025, the company executed a new 10-year Kentucky master lease with $23.3 million in base rent subject to CPI increases, acquired multiple skilled nursing and healthcare facilities across Kansas, Missouri and Oklahoma totaling more than 1,200 beds, and issued approximately $89.5 million in Series B bonds on the TASE at a 6.70% fixed rate, positioning the company for continued accretive growth in 2026, according to Chairman and CEO Moishe Gubin.
The record financial performance underscores the company's successful execution of its growth strategy. The 100% rent collection rate indicates strong tenant stability and operational resilience, particularly in the skilled nursing sector, which has faced challenges in recent years. The increase in rental income by 32% year-over-year reflects the impact of the new master lease and acquisitions. The Kentucky master lease, structured with CPI-based rent escalations, provides built-in revenue growth that helps protect against inflation. Additionally, the acquisition of facilities with over 1,200 beds expands Strawberry Fields' footprint in the Midwest, adding scale and diversification to its portfolio.
The issuance of Series B bonds on the Tel Aviv Stock Exchange (TASE) at a 6.70% fixed rate provided the company with long-term, cost-effective capital to fund these acquisitions. This financing strategy, which follows the earlier Series A bond issuance, demonstrates Strawberry Fields' ability to access international capital markets on favorable terms. The fixed rate also reduces interest rate risk, allowing the company to lock in low borrowing costs for an extended period. As of Dec. 31, 2025, the company's portfolio included 143 healthcare facilities with over 15,600 beds across 10 states, comprising 131 skilled nursing facilities, 10 assisted living facilities, and two long-term acute care hospitals.
The strong results and growth trajectory position Strawberry Fields REIT favorably for 2026. With a solid balance sheet, consistent cash flow generation, and a pipeline of potential acquisitions, the company is well-equipped to continue its accretive growth. The skilled nursing sector remains a critical component of the healthcare system, and Strawberry Fields' focus on quality facilities and strong tenant relationships should support sustained performance. For more details, the full press release is available at https://ibn.fm/wR6ME.
About Strawberry Fields REIT: Strawberry Fields REIT, Inc., is a self-administered real estate investment trust engaged in the ownership, acquisition, development and leasing of skilled nursing and certain other healthcare-related properties. The Company’s portfolio includes 143 healthcare facilities with an aggregate of 15,600+ beds, located throughout the states of Arkansas, Illinois, Indiana, Kansas, Kentucky, Missouri, Ohio, Oklahoma, Tennessee and Texas. The 143 healthcare facilities comprise 131 skilled nursing facilities, 10 assisted living facilities, and two long-term acute care hospitals. For more information, visit the company's newsroom at https://ibn.fm/STRW.
