Strawberry Fields REIT LLC (STRW) Market Cap
Strawberry Fields REIT LLC has a market capitalization of $171.4M.
Financials based on reported quarter end 2025-12-31
Price: $12.81
▲ 0.36 (2.89%)
Market Cap: 171.37M
AMEX · time unavailable
CEO: Moishe Gubin
Sector: Real Estate
Industry: REIT - Healthcare Facilities
IPO Date: 2023-02-22
Website: https://www.strawberryfieldsreit.com
Strawberry Fields REIT LLC (STRW) - Company Information
Market Cap: 171.37M · Sector: Real Estate
Strawberry Fields REIT LLC, a self-managed and self-administered real estate investment trust, engages in the acquisition, ownership, and leasing of skilled nursing facilities and other post-acute healthcare properties. Its portfolio consists of 79 healthcare properties with an aggregate of 10,426 licensed beds. These properties are located across Arkansas, Illinois, Indiana, Kentucky, Michigan, Ohio, Oklahoma, Tennessee, and Texas. The company is based in South Bend, Indiana.
Analyst Sentiment
Based on 6 ratings
Analyst 1Y Forecast: $15.00
Average target (based on 1 sources)
Consensus Price Target
Low
$15
Median
$15
High
$16
Average
$15
Potential Upside: 19.7%
Price & Moving Averages
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Fundamentals Overview
📊 AI Financial Analysis
Powered by StockMarketInfo"For the year ending December 31, 2025, STRW reported revenue of $40.1M and a net income of $2.0M, translating to an earnings per share (EPS) of $0.15. The company has minimal revenue, and its financials indicate significant leverage with total liabilities of $834.7M against total equity of only $50.5M, reflecting a challenging debt situation. STRW has not generated any operating cash flow or free cash flow, further complicating its financial health. The market performance shows a modest one-year price change of 1.35%, but the overall trend is concerning with a year-to-date change of -7.40%. Despite paying dividends, the absence of cash flow raises questions about sustainability and shareholder returns. The price target consensus suggests potential for growth, yet risks associated with leverage and cash flow pose significant concerns."
Revenue Growth
Revenue of $40.1M indicates minimal growth prospects.
Profitability
Net income is positive at $2M, but it's modest relative to revenue.
Cash Flow Quality
No operating or free cash flow, indicating poor cash management.
Leverage & Balance Sheet
High leverage with significant debt compared to equity.
Shareholder Returns
Dividends paid, but sustained payouts may be questionable.
Analyst Sentiment & Valuation
Price target suggests some potential for upside, but risks remain.
Disclaimer:This analysis is AI-generated for informational purposes only. Accuracy is not guaranteed and this does not constitute financial advice.
Management delivered strong headline momentum—100% contractual rent collection, 29.8% AFFO growth to $72.5M, and a disciplined “10 cap + 1.25x coverage” acquisition model. However, the Q&A revealed where pressure concentrates. On capital structure, they acknowledged a one-time Q4 G&A payroll/exec compensation item of roughly $1.0M–$1.1M and framed a refinancing plan to normalize maturities within 45–60 days, with 2026 debt modeled at ~SOFR+2.70 for revolvers/line debt and ~6.25% for bonds (including ~50 bps spread savings vs current conventional debt). On the risk side, they directly pushed back on Medicare Advantage concerns by stating no SHOP and no outcome-linked/bouns rent. Analyst pressure also centered on coverage definitions (1.6x EBITDAR vs 2.07x EBITDARM) and on how they balance dividend reliability with REIT distribution rules—suggesting less concern about occupancy volatility and more reliance on rent coverage durability.
Growth Catalysts
- 100% collection of contractual rent throughout 2025
- Retenanted 10 Kentucky properties (Landmark master lease -> Kentucky master lease) effective 01/01/2025 with new base rents $23.3M/year and 2.5% annual increases
- Entered Kansas via acquisition of six facilities (354 beds) for $24.0M and started a new triple-net master lease with Advenicare
Business Development
- Hill Valley as new tenant for the Kentucky master lease (10 facilities) (lease: 10 years + four 5-year extension options)
- Advenicare (Willie and Michelle Novotny) for Kansas triple-net master lease (10 years + two 5-year extension options)
- Pipeline cited at $250.0M; acquisition hurdle: ~10 cap at acquisition and day-one underwriting coverage of 1.25x
Financial Highlights
- 2025 revenue: $155.0M (+$37.9M, +32.4% YoY)
- 2025 net income: $33.3M ($0.60/share) vs $26.5M ($0.57/share) in 2024
- 2025 AFFO: $72.5M (+29.8% YoY; 13.3% CAGR)
- 2025 adjusted EBITDA: $125.3M (+38.2% YoY; 13.5% CAGR)
- Dividend: $0.16/share; 4.9% yield; AFFO payout ratio ~46%
- Portfolio coverage metrics: EBITDARM rent coverage 2.07x (as of 11/30); Net debt / EBITDA 5.7; Net debt / net asset ratio 49.5%
- Q&A: EBITDARM with an M coverage question answered as EBITDAR coverage of ~1.6x; management said 2.07x is the number they are looking at
- Q4 G&A one-time item: ~+$1.0M to $1.1M due to additional payroll/executive compensation recorded retroactively ~18 months
Capital Funding
- Issued Series B bonds on Tel Aviv Stock Exchange in June 2025: 312,000,000 shekels (~$89.5M) unsecured, issued at par, fixed 6.7% interest
- Debt strategy: in next 45–60 days expected to refinance/clean up debt and push maturities to have almost equal maturities over next 4–5 years
- Q&A (2026 debt): modeled line of credit debt to return at ~SOFR + 2.70 (range SOFR + 2.65 to +2.75) vs current SOFR + 3 to +3.25; implied spread savings ~50 bps on conventional debt (management referenced ~50 bps above current-blended baseline on ~$160M)
Strategy & Ops
- Acquisition approach remains disciplined: 10 cap at acquisition and underwriting coverage of 1.25x day one
- Shift in deal mix: seeing more sale-leasebacks; intends to rebalance operator underwriting to 1.25x (versus prior emphasis on buying then retenanting)
- Store/asset operations: no store closures mentioned; operational emphasis is on master-lease structure and collected rent rather than tenant occupancy
Market Outlook
- Management still anticipating 2026 growth target: $100.0M to $150.0M per year (language indicates expectation for 2026/near-term)
- Q&A April/AFFO per share run rate: management ended the year with AFFO of $1.30/share and expects to “beat that easily in 2026”
- Debt/financing timing: expects term sheet announcement and debt maturity restructuring within ~45–60 days
Risks & Headwinds
- Medicare Advantage exposure risk: management stated they have no SHOP in the portfolio and no rents that vary with Medicare Advantage results (no bonus rent tied to outcomes), so they do not suffer that risk
- Macro/rates refinancing risk: management modeled re-pricing for 2026 debt (SOFR + 2.70 on line of credit; bond debt ~6.25%) and discussed shekel vs USD currency mismatch risk (mitigation: extend maturity to avoid paying shekel debt with weak dollar; expect currency benefit as USD strengthens and shekel weakens)
- Industry occupancy signaling: management warned occupancy is a poor metric for their net-lease/master-lease model; key risk is tenant performance and rent coverage rather than occupancy alone
- Acquisition impediment cited: while they are confident on capital access and do not see a cash constraint, valuation/prices by bed have risen significantly, especially outside/within new state expansion needs
Sentiment: MIXED
Note: This summary was synthesized by AI from the STRW Q4 2025 earnings transcript. Financial data is complex; please verify all metrics against official SEC filings before making investment decisions.