Strawberry Fields REIT Reports Record 2025 Results, Aggressive Expansion, and Strong FFO Growth

South Bend, IN – February 19, 2026: Strawberry Fields REIT, Inc. (NYSE American: STRW) has released its operating results for the year ended December 31, 2025, setting new records in multiple financial and operational metrics. The company also announced several high-impact acquisitions and financial transactions that significantly expand its footprint and could have important implications for shareholders.

Key Financial Highlights for 2025

• 100% of contractual rents collected: Demonstrates stability and reliability of tenant base.
• Rental income: \$155.0 million in 2025, up from \$117.1 million in 2024 – a 32.4% increase.
• Funds From Operations (FFO): \$79.6 million (up 32% year-over-year); FFO per share of \$1.43 (versus \$1.15 in 2024).
• Adjusted FFO (AFFO): \$72.5 million (up from \$55.8 million); AFFO per share of \$1.30 (versus \$1.07 in 2024).
• Net income: \$33.3 million, up from \$26.5 million in 2024.

Major Acquisitions & Strategic Transactions

• New Kentucky Master Lease:
  • Effective January 1, 2025, Strawberry Fields entered a new master lease for 10 Kentucky properties, previously part of the Landmark Master Lease.
  • Base rent: \$23.3 million per year, with CPI-based increases (minimum 2.5%).
  • Initial lease term: 10 years, with four 5-year extension options.
  • As part of the deal, Strawberry Fields issued a 5-year note payable of \$50.9 million to the parent of the Landmark tenant.
• Kansas Acquisition:
  • On January 2, 2025, acquired 6 facilities (354 beds) for \$24 million, funded with cash.
  • New master lease: 10 years initial, two 5-year extensions, triple-net, annual base rent of \$2.4 million with 3% annual increases.
• Missouri Expansion:
  • On July 1, 2025, acquired 9 skilled nursing facilities (686 beds) for \$59 million, funded with cash.
  • Eight facilities added to the Tide Group master lease, increasing Tide’s annual rents by \$5.5 million (3% annual increases, 10-year term).
  • The ninth facility added to the Reliant Care Group lease, increasing their annual rents by \$0.6 million.
• Oklahoma Acquisitions:
  • August 5, 2025: Acquired an 80-bed skilled nursing facility near McLoud for \$4.25 million; base rent \$0.4 million, 3% annual increases.
  • November 10, 2025: Acquired a 60-bed skilled nursing facility near Grove for \$3 million; base rent \$0.3 million, 3% annual increases.
• Missouri Assisted Living/Skilled Nursing Facility:
  • August 29, 2025: Acquired a facility with 108 skilled nursing beds and 16 assisted living beds near Poplar Bluff for \$5.3 million; base rent \$0.5 million, 3% annual increases. Added to Reliant Care master lease.
• Bond Issuance:
  • June 24, 2025: Issued 312 million NIS (\$89.5 million) in unsecured Series B Bonds on the TASE.
  • Fixed interest rate of 6.70%; principal repayments: 4% annually (2026-2028), 88% due in 2029; semi-annual interest.

Operational and Financial Performance Overview

• Significant portfolio growth: Portfolio now includes 143 healthcare facilities (over 15,600 beds) across 10 states.
• Rental revenues: Up \$37.9 million year-over-year, primarily from new master leases and 2024-2025 acquisitions.
• Depreciation & amortization: Increased \$12.5 million, due to \$112.1 million of new real estate investments and Kentucky note amortization.
• General and administrative expenses: Up \$1.8 million, primarily from higher executive compensation and bonuses.
• Property taxes: Increased \$0.8 million due to new acquisitions.
• Interest expense: Rose by \$16 million (49.1%) to \$50.9 million, mainly from higher bond interest, new note payable, and increased mortgage interest on 2024 Missouri acquisition.
• Net income: Increased to \$33.3 million from \$26.5 million in 2024, driven by higher rental revenues but offset by higher expenses.

Management Commentary

“2025 was the best year Strawberry Fields has had since its inception 10+ years ago. The FFO growth remains consistently strong, in excess of 13%, and the Company’s footprint has continued to grow into new states and with new third-party operators. In 2026, the Company will continue to look for accretive deals, while maintaining its disciplined acquisition approach that has led to these strong results.”

“I believe the investor public has begun to understand the strength of the senior housing real estate sector and I hope this coming year the Company’s stock price will continue to close the valuation gap with our peers and begin to reflect this strength.”

Balance Sheet and Financial Position

• Total assets: \$885.2 million (up from \$787.6 million in 2024).
• Real estate investments, net: \$687.2 million (up from \$609.1 million).
• Debt:
  • Bonds, net: \$330.6 million (up from \$209.9 million).
  • Notes payable: \$42.6 million (up from \$0).
  • Senior debt: \$417.3 million (down from \$460.6 million).
• Cash and equivalents: \$31.8 million.
• Total equity: \$50.5 million (down from \$83.6 million), reflecting increased liabilities and lower accumulated other comprehensive income.

Risks and Forward-Looking Statements

Strawberry Fields REIT notes a range of potential risks, including tenant performance, ability to refinance or raise capital, regulatory changes, interest rate fluctuations, and REIT status compliance. The company’s rapid expansion and increased leverage should be monitored by investors for potential impacts on future earnings and risk profile.

Shareholder-Impacting and Price Sensitive Information

• Record FFO and AFFO growth, outpacing industry averages, may support positive re-rating of the stock.
• Significant expansion via acquisitions in multiple states, boosting portfolio diversification and rental revenue base.
• Issuance of \$89.5 million in new bonds increases liquidity but also raises interest expense and leverage metrics.
• Disciplined acquisition strategy and successful integration of new properties position the company for ongoing growth in 2026.
• Management’s optimistic outlook and focus on closing valuation gap with peers could drive investor sentiment and share price.

Upcoming Investor Event

The company will host its 2025 year-end earnings call on Friday, February 20, at 11:00 a.m. ET. Investors can pre-register for the call or access a live webcast via the company’s website.

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 other healthcare-related properties. Its portfolio includes 143 healthcare facilities with over 15,600 beds across ten states.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult financial advisors before making investment decisions. Past performance is not indicative of future results. All forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially.

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