Strawberry Fields REIT (NYSE AMERICAN: STRW) reported second-quarter 2026 results highlighted by 100% rent collections, net income of $8.9 million, funds from operations (“FFO”) of $20.1 million, or $0.36 per share, and adjusted funds from operations (“AFFO”) of $18.1 million, or $0.32 per share. Rental income increased to $40.0 million from $37.9 million a year earlier.
The company also announced that during the quarter it closed a new corporate credit facility providing up to $300 million in borrowing capacity, including a $100 million term loan and a $200 million revolving credit facility, to refinance existing debt and support future acquisitions. This strategic move aligns Strawberry Fields more closely with its peers while providing additional flexibility to pursue acquisition opportunities, according to Chairman and CEO Moishe Gubin.
In addition, Strawberry Fields announced plans to acquire a hospital campus near Kansas City, Missouri, for $10.4 million during the third quarter. The property will be added to an existing master lease expected to generate $1.04 million in annual base rent with 3% annual escalations.
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 the company's robust operational performance and its ability to generate consistent cash flows.
The new credit facility is a pivotal development for Strawberry Fields, as it not only refinances existing debt but also provides substantial capital for future acquisitions. This access to capital is crucial for a REIT focused on expanding its portfolio of healthcare properties, which currently includes 142 facilities with an aggregate of 15,500 beds across ten states. The portfolio comprises 130 skilled nursing facilities, 10 assisted living facilities, and two long-term acute care hospitals.
Strawberry Fields' focus on skilled nursing and healthcare-related properties places it in a sector with strong demand driven by an aging population. The company's ability to maintain 100% rent collections, even in a challenging economic environment, underscores the resilience of its tenant base and the quality of its assets.
The acquisition of the hospital campus near Kansas City is a strategic addition that will enhance the company's existing master lease structure, providing predictable revenue with built-in escalations. This move aligns with Strawberry Fields' growth strategy of acquiring properties that can be integrated into its existing portfolio to generate stable, long-term returns.
Investors should view these developments as positive indicators of Strawberry Fields' financial health and growth prospects. The company's strong Q2 results, combined with the new credit facility and planned acquisition, position it well for continued success in the healthcare real estate sector.
For more information on Strawberry Fields REIT, visit the company's newsroom at https://ibn.fm/STRW. To view the full press release, visit https://ibn.fm/5tFFk.
