STRW · Strawberry Fields REIT LLC

Strawberry Fields REIT delivered solid Q1 2026 results with net income up 36% to $9.5 million, driven primarily by a 7.1% increase in rental revenues to $40.0 million from new acquisitions in Texas and Missouri master leases. The company maintained perfect rent collection at 100%, underscoring tenant strength amid its disciplined acquisition approach. Non-GAAP metrics showed robust growth, with FFO rising 14% to $20.9 million ($0.38 per share) and AFFO up 12% to $18.8 million ($0.34 per share), reflecting core operational improvements. Depreciation increased modestly due to 2025 property additions, offset by full amortization of prior intangibles, while G&A rose on higher professional fees and salaries. Interest expense declined 4% from lower payments and higher income. CEO Moishe Gubin highlighted patience in deal underwriting, noting the early Q2 hospital campus contract as validation, positioning the REIT for growth. The $300 million CCF term sheet enhances liquidity, enabling debt refinancing and acquisitions at a competitive SOFR +2.75% rate. The $8.6 million Missouri acquisition adds stable, escalating rents to an existing tenant, aligning with the portfolio of 143 healthcare facilities across multiple states.