Strawberry Fields REIT (NYSE AMERICAN: STRW) reported second-quarter 2026 results that underscore its financial stability and growth trajectory. The company achieved 100% rent collections, a testament to the resilience of its healthcare-focused portfolio. Net income for the quarter was $8.9 million, while funds from operations (FFO) reached $20.1 million, or $0.36 per share, and adjusted funds from operations (AFFO) came in at $18.1 million, or $0.32 per share. Rental income increased to $40.0 million from $37.9 million in the same period last year, reflecting the company's strategic acquisitions and organic growth.
During the quarter, Strawberry Fields closed on a new corporate credit facility that provides up to $300 million in borrowing capacity. This facility comprises a $100 million term loan and a $200 million revolving credit facility. The company plans to use these funds to refinance existing debt and support future acquisitions, aligning itself more closely with peers in the REIT sector. Chairman and CEO Moishe Gubin emphasized that the credit facility offers additional flexibility to pursue acquisition opportunities, which is crucial for the company's expansion strategy.
In addition to the credit facility, Strawberry Fields announced plans to acquire a hospital campus near Kansas City, Missouri, for $10.4 million during the third quarter. This property will be added to an existing master lease, which is expected to generate $1.04 million in annual base rent with 3% annual escalations. This acquisition underscores the company's commitment to growing its healthcare real estate portfolio and enhancing shareholder value.
For the first six months of 2026, FFO rose to $41.0 million, or $0.74 per share, while net income increased to $18.4 million and rental income reached $80.0 million. These results demonstrate consistent performance and operational efficiency. The company's portfolio now includes 142 healthcare facilities with an aggregate of 15,500 beds, located across Arkansas, Illinois, Indiana, Kansas, Kentucky, Missouri, Ohio, Oklahoma, Tennessee, and Texas. The facilities comprise 130 skilled nursing facilities, 10 assisted living facilities, and two long-term acute care hospitals.
The significance of these results lies in the company's ability to maintain high occupancy and rent collections despite a challenging economic environment. The new credit facility and planned acquisition highlight Strawberry Fields' proactive approach to capital management and growth. According to the company's announcement, the credit facility will enable it to refinance existing debt at more favorable terms, reducing interest costs and improving cash flow. This financial flexibility is expected to support future acquisitions and organic growth initiatives.
Investors should note that Strawberry Fields' focus on skilled nursing facilities and other healthcare-related properties positions it well to benefit from the aging population and increasing demand for healthcare services. The company's consistent financial performance and strategic initiatives make it a notable player in the healthcare REIT space. For more details, the full press release can be accessed at https://ibn.fm/5tFFk, and the company's newsroom is available at https://ibn.fm/STRW.
