Strawberry Fields REIT Inc (STRW) AI Stock Analysis

• Market Cap: $169.25M
• Dividend Yield: 4.62%
• Average Volume (3M): 31.92K
• Price to Earnings (P/E): 20.8
• Beta (1Y): 0.26
• Revenue Growth: 29.76%
• EPS Growth: 22.76%
• Country: US
• Employees: 9
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Healthcare Facilities
• EPS (TTM): 0.15
• Shares Outstanding: 13,120,095
• 10 Day Avg. Volume: 36,888
• 30 Day Avg. Volume: 31,916
• PEG Ratio: 0.40
• Price to Book (P/B): 4.13
• Price to Sales (P/S): 0.64
• P/FCF Ratio: 2.13
• Enterprise Value/Market Cap: 0.83
• Enterprise Value/Revenue: 0.97
• Enterprise Value/Gross Profit: 1.19
• Enterprise Value/Ebitda: 1.16
• 1Y Price Target: $13.88
• Price Target Upside: 7.60% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 0.46
• Revenue Forecast (FY): $154.90M

• Rating: 75 Outperform
• Price Target: $15.00 ▲(16.28% Upside)

Strawberry Fields REIT Inc has a strong financial and operational performance, supported by positive earnings call insights. However, high leverage and valuation concerns slightly temper the overall outlook.

Positive Factors

Revenue Growth

The significant increase in revenue indicates strong market demand and effective business strategies, ensuring sustained growth and profitability.

Cash Flow Generation

Strong cash flow generation supports operational stability, enabling reinvestment in growth initiatives and providing a buffer against economic fluctuations.

Dividend Increase

The dividend increase reflects confidence in future cash flows and commitment to shareholder returns, enhancing investor appeal and financial health.

Negative Factors

High Leverage

High leverage can increase financial risk, limiting flexibility in downturns and potentially impacting long-term financial stability.

Concentration Risks

Concentration in related-party leases poses risks of conflicts of interest and revenue volatility, affecting operational resilience and investor confidence.

Interest Rate Pressures

Rising interest rates can increase borrowing costs, impacting acquisition strategies and profitability, challenging long-term growth potential.

Strawberry Fields REIT Inc Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

Strawberry Fields REIT Inc generates revenue primarily through leasing its agricultural properties to farmers and agribusinesses who cultivate strawberries and other crops. The company earns rental income from these leases, which are structured to provide stable cash flow. Additionally, STRW may engage in revenue-sharing agreements with tenants that allow the company to benefit from a percentage of the crops produced. This aligns the interests of both the REIT and its tenants, fostering a collaborative approach to maximizing land productivity. The company's growth is also supported by strategic partnerships with agricultural technology firms, enhancing crop yield and sustainability, thus driving higher rental income and tenant retention.

Strawberry Fields REIT Inc Financial Statement Overview

Summary

Strawberry Fields REIT Inc shows strong revenue growth and improved profitability with a solid net profit margin. The reduction in leverage enhances financial stability, and robust cash flow metrics underscore the company's ability to generate cash. However, maintaining these improvements and managing cost pressures will be crucial.

Income Statement

Strawberry Fields REIT Inc has shown a solid revenue growth rate of 6.79% in the TTM, with strong gross and EBIT margins at 80.24% and 53.24% respectively. The net profit margin improved to 4.40%, indicating enhanced profitability. However, the gross profit margin has slightly decreased from previous periods, suggesting potential cost pressures.

Balance Sheet

The company has significantly reduced its debt-to-equity ratio to 0.07 in the TTM, indicating improved financial stability. However, the equity ratio remains low, and the return on equity, although positive at 36.13%, reflects the company's reliance on leverage in previous periods.

Cash Flow

Cash flow performance is strong, with a free cash flow growth rate of 13.18% in the TTM. The operating cash flow to net income ratio is exceptionally high at 83.01, indicating robust cash generation relative to earnings. The free cash flow to net income ratio of 0.93 further supports the company's strong cash position.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	145.39M	117.06M	99.81M	92.54M	87.03M	84.09M
Gross Profit	118.42M	101.84M	84.79M	78.88M	75.67M	73.75M
EBITDA	122.03M	94.34M	75.20M	66.42M	57.56M	62.57M
Net Income	7.02M	4.09M	2.50M	1.85M	5.34M	11.89M
Balance Sheet
Total Assets	880.64M	787.59M	616.79M	547.00M	569.96M	523.68M
Cash, Cash Equivalents and Short-Term Investments	19.80M	48.37M	12.17M	20.20M	26.21M	17.81M
Total Debt	775.83M	671.74M	537.99M	457.25M	503.86M	488.81M
Total Liabilities	818.02M	704.02M	569.52M	497.62M	534.91M	510.26M
Stockholders Equity	14.25M	18.17M	7.51M	7.79M	2.27M	13.42M
Cash Flow
Free Cash Flow	88.28M	35.33M	54.94M	50.93M	44.79M	37.34M
Operating Cash Flow	94.28M	59.33M	54.94M	50.93M	44.79M	37.34M
Investing Cash Flow	-201.03M	-136.78M	-106.35M	-10.10M	-58.29M	-6.43M
Financing Cash Flow	109.45M	133.34M	43.46M	-47.25M	23.57M	-26.10M

Strawberry Fields REIT Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STRW, the sentiment is Positive. The current price of 12.9 is above the 20-day moving average (MA) of 12.89, above the 50-day MA of 12.11, and above the 200-day MA of 11.10, indicating a bullish trend. The MACD of 0.31 indicates Positive momentum. The RSI at 54.85 is Neutral, neither overbought nor oversold. The STOCH value of 35.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for STRW.

Strawberry Fields REIT Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STRW	75 Outperform	$169.25M	20.78	52.29%	4.62%	29.76%	22.76%
UHT	69 Neutral	$550.09M	30.62	10.55%	7.51%	0.68%	-1.34%
SILA	67 Neutral	$1.27B	32.73	2.77%	6.98%	3.74%	77.82%
CHCT	66 Neutral	$448.99M	-40.30	-2.32%	12.08%	3.40%	-240.85%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
DHC	58 Neutral	$1.18B	-3.34	-18.84%	0.80%	4.10%	8.96%
GMRE	55 Neutral	$484.55M	-134.34	0.49%	10.01%	2.73%	-131.16%

Strawberry Fields REIT Inc Corporate Events

Strawberry Fields REIT Highlights Concentration and Related-Party Risks

In a recent filing, Strawberry Fields REIT Inc. updated its risk disclosures and U.S. federal tax considerations for investors, superseding prior statements, and highlighting a number of operational and concentration risks as of September 30, 2025. The company emphasized that approximately 46.5%–48.6% of its annualized base rent comes from 66 facilities leased to related-party tenants affiliated with its chairman and CEO and one director, and that about 88.7% of its annualized base rent is tied to 15 master leases, seven of which each account for more than 5% of base rent, creating significant exposure if these tenants fail to perform or default. The filing underscores that these related-party leases were not negotiated on an arm’s-length basis and may involve conflicts of interest, potentially affecting how vigorously the REIT enforces its rights, while also noting that defaults under master leases, tenant misconduct, or regulatory actions could simultaneously impact multiple facilities and materially harm revenues, property values and shareholder distributions. Strawberry Fields further cautioned that its growth strategy depends on successfully acquiring additional healthcare properties amid intense competition and interest-rate and inflation pressures, and that its deliberate concentration in skilled nursing facilities, which accounted for 91.5% of annualized base rent as of September 30, 2025, heightens its vulnerability compared with a more diversified real estate portfolio.

Strawberry Fields REIT Declares Cash Dividend Announcement

On November 6, 2025, Strawberry Fields REIT, Inc. announced a cash dividend of $0.16 per share on its common stock, payable on December 30, 2025, to shareholders recorded by December 16, 2025. This dividend declaration reflects the company’s ongoing commitment to providing returns to its investors and may impact its financial performance and stakeholder interests positively.

Strawberry Fields REIT Reports Strong Q3 2025 Results

Strawberry Fields REIT, Inc. announced its third-quarter 2025 financial results, reporting a significant increase in rental revenues and net income compared to the same period in 2024. The company completed several acquisitions of skilled nursing facilities in Missouri and Oklahoma, which contributed to the growth in rental income and overall financial performance. These acquisitions were funded using working capital and are expected to enhance the company’s annual rental income through structured rent increases. The company’s AFFO and FFO also saw substantial growth, reflecting its strategic expansion and lease renewals.