0001493152-26-011682
SEC filingStrawberry Fields REIT LLC (STRW) reported strong FY 2025 results, driven by rental revenue growth to $155.0M, up 32% YoY from $117.1M in 2024, fueled by acquisitions adding facilities in Kansas, Oklahoma, Texas, and Missouri, plus re-tenanting of Kentucky properties. Income from operations reached $84.3M, while net income rose 26% to $33.3M from $26.5M, with net income attributable to common stockholders at $7.6M (EPS $0.60, up from $0.57). Total assets grew to $885.2M, supported by $110.0M in real estate investments, though offset by $111.9M investing outflows. Operating cash flow strengthened to $90.0M, up significantly from $59.3M, amid financing net outflow of $5.1M. The portfolio expanded to 143 skilled nursing facilities with 15,602 beds across 10 states. High debt of $834.7M (94% leverage) reflects acquisition funding via bonds ($95.2M proceeds) and senior debt. Forward-looking, the REIT targets dividend growth and portfolio diversification, with liquidity from $66.8M cash/restricted cash and bond shelf capacity, positioning for continued healthcare real estate expansion despite interest rate and regulatory risks.
Strawberry Fields REIT delivered robust FY 2025 performance with rental revenues of $155.0M, a 32% increase from $117.1M in 2024, driven by acquisitions and lease restructurings. Total expenses rose 27% to $70.7M, primarily from higher depreciation ($35.8M, +23%) and amortization ($10.5M, +125%). Income from operations was $84.3M. Interest expense climbed 46% to $51.0M due to new bonds and notes. Net income increased 26% to $33.3M from $26.5M, with common stockholders' share at $7.6M (EPS $0.60 vs. $0.57). Portfolio grew to 143 facilities (15,602 beds). Cash from operations surged to $90.0M from $59.3M.
Rental revenues, the sole source, totaled $154.999M, up $37.9M or 32% YoY. Growth stemmed from $13.1M from Landmark/Kentucky re-tenanting, plus 2024/2025 acquisitions: Missouri ($10.3M), Tide Group ($5.5M), Kansas ($2.4M). Additional reimbursed property taxes contributed. No geographic or tenant segment breakdowns disclosed, but properties span 10 states with triple-net leases averaging $142.7M annualized base rent.
Operating margin not explicitly stated, but income from operations of $84.3M on $155.0M revenues implies strength despite expense pressures. Depreciation and amortization totaled $46.3M (up due to new assets), G&A $8.6M (+26%), property taxes $15.2M (+5%). Interest expense net $48.6M rose 49% from new debt. Net margin supported by revenue growth outpacing costs, yielding 26% net income growth.
Operating cash flow $90.0M, up $30.7M YoY from higher net income, depreciation/amortization ($46.2M), and payables increase. Investing used $111.9M (vs. $136.8M prior) on $110.0M real estate, $24.0M lease rights. Financing net -$5.1M after $95.2M bonds, $59.0M senior debt proceeds, offset by repayments and $7.6M dividends. Balance sheet: assets $885.2M (real estate net $687.2M), liabilities $834.7M (senior debt $417.3M, bonds $330.6M), equity $50.5M (stockholders' $12.1M). Cash/restricted $66.7M.
Management pursues disciplined growth via healthcare property acquisitions, tenant diversification, and balance sheet strength for dividend growth. Key 2025 events: Kentucky master lease ($23.3M rent), multiple buys adding rents. Expects cash flow to cover REIT distributions (90% taxable income). Monitors debt covenants (in compliance), balloon payments through 2029. Risks include tenant operations, regulations, interest rates, cybersecurity. Liquidity from operations, bond shelves (e.g., Series A up to $172.4M). Aims to reduce related-party reliance.