Strawberry Fields REIT Inc (STRW) AI Stock Analysis

• Market Cap: $157.73M
• Dividend Yield: 4.53%
• Average Volume (3M): 26.93K
• Price to Earnings (P/E): 19.9
• Beta (1Y): 0.13
• Revenue Growth: 24.72%
• EPS Growth: 30.05%
• Country: US
• Employees: 9
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Healthcare Facilities
• EPS (TTM): 0.15
• Shares Outstanding: 12,992,595
• 10 Day Avg. Volume: 24,407
• 30 Day Avg. Volume: 26,932
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 5.33
• Enterprise Value/Revenue: 6.22
• Enterprise Value/Gross Profit: 7.76
• Enterprise Value/Ebitda: 7.49
• 1Y Price Target: $12.38
• Price Target Upside: 4.38% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 72 Outperform
• Price Target: $12.00 ▲(1.18% Upside)

Strawberry Fields REIT Inc shows a strong overall performance driven by solid financial metrics and positive earnings call insights. The company's robust revenue growth and strategic acquisitions are key strengths. However, market undervaluation and reliance on debt financing present challenges that need to be addressed.

Positive Factors

Earnings

The acquisition of nine facilities in Missouri, comprising 686 licensed beds, is expected to enhance the company's portfolio and future earnings.

Long-term Investment

The company is mostly invested in skilled nursing facilities, which is considered an exceptional long-term investment due to the aging demographics in the United States.

Valuation

Strawberry Fields REIT has one of the lowest multiples in the healthcare sector at 8.5x compared to 23.4x for the sector, making it an attractive investment.

Negative Factors

Occupancy

Occupancy for the quarter was 68.7%, down 170 basis points year-over-year.

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 primarily generates revenue through leasing its properties to healthcare operators and senior living service providers. The company typically enters into long-term lease agreements with these operators, ensuring a steady stream of rental income. Additionally, Strawberry Fields may engage in property management services and strategic acquisitions to enhance its portfolio and revenue potential. The REIT structure allows the company to distribute a significant portion of its taxable income as dividends to shareholders, benefiting from favorable tax treatment. Strategic partnerships with healthcare providers can also contribute to occupancy rates and revenue stability.

Strawberry Fields REIT Inc Financial Statement Overview

Summary

Strawberry Fields REIT Inc demonstrates 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 in profitability and managing cost pressures will be crucial for sustained performance.

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	135.15M	117.06M	99.81M	92.54M	87.03M	84.09M
Gross Profit	108.45M	101.84M	55.84M	78.88M	75.67M	73.75M
EBITDA	112.29M	95.50M	75.20M	78.73M	57.56M	62.57M
Net Income	5.95M	4.09M	2.50M	1.85M	5.34M	11.89M
Balance Sheet
Total Assets	897.25M	787.59M	616.79M	547.00M	569.96M	523.68M
Cash, Cash Equivalents and Short-Term Investments	96.32M	48.37M	12.17M	20.20M	26.21M	17.81M
Total Debt	1.03M	671.74M	537.99M	457.25M	503.86M	488.81M
Total Liabilities	830.63M	704.02M	569.52M	497.62M	534.91M	510.26M
Stockholders Equity	15.49M	18.17M	7.51M	7.79M	2.27M	13.42M
Cash Flow
Free Cash Flow	79.42M	35.33M	54.94M	50.93M	44.79M	37.34M
Operating Cash Flow	85.42M	59.33M	54.94M	50.93M	44.79M	37.34M
Investing Cash Flow	-153.94M	-136.78M	-106.35M	-10.10M	-58.29M	-6.43M
Financing Cash Flow	157.85M	133.34M	43.46M	-47.25M	23.57M	-26.10M

Strawberry Fields REIT Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.86
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 11.86 is above the 20-day moving average (MA) of 11.41, above the 50-day MA of 10.77, and above the 200-day MA of 10.84, indicating a bullish trend. The MACD of 0.41 indicates Negative momentum. The RSI at 64.32 is Neutral, neither overbought nor oversold. The STOCH value of 81.69 is Negative, 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	72 Outperform	$157.73M	19.95	51.91%	4.53%	24.72%	30.05%
SILA	71 Outperform	$1.38B	35.30	2.71%	6.28%	0.43%	58.57%
GMRE	64 Neutral	$549.33M	109.36	1.94%	10.33%	0.90%	―
UHT	63 Neutral	$568.15M	31.31	10.08%	7.11%	0.14%	-0.76%
DHC	59 Neutral	$939.10M	―	-14.32%	0.97%	4.29%	18.89%
CHCT	54 Neutral	$441.10M	―	-2.22%	11.97%	2.96%	-877.53%
Sector *	53 Neutral	$1.21B	3.22	-6.08%	5.78%	-8.30%	-81.83%

Strawberry Fields REIT Inc Corporate Events

Strawberry Fields REIT Announces Increased Cash Dividend

On August 7, 2025, Strawberry Fields REIT, Inc. announced a cash dividend of $0.16 per common share, payable on September 30, 2025, marking a 14.3% increase from the previous dividend. This decision reflects the company’s strong Q2 2025 financial performance and its commitment to providing stable returns to shareholders, while maintaining a dividend payout ratio below 50%.

Strawberry Fields REIT Reports Strong Q2 2025 Results

Strawberry Fields REIT Inc. announced its second-quarter 2025 financial results, highlighting a strong performance with 100% rent collection and significant acquisitions, including a skilled nursing facility near Houston and nine facilities in Missouri. The company’s financial metrics showed substantial growth, with rental income increasing by 29% compared to the previous year, driven by new property acquisitions and lease renewals. The issuance of Series B Bonds on the Tel Aviv Stock Exchange also allowed the company to reduce its debt costs. The company’s chairman and CEO, Moishe Gubin, expressed optimism about the company’s growth and potential for increased share value.

Strawberry Fields REIT Expands with Missouri Acquisition

On July 1, 2025, Strawberry Fields REIT, Inc. completed the acquisition of nine skilled nursing facilities in Missouri for $59 million, expanding its presence in the state to 17 facilities. The acquisition involved resetting the lease expiration dates for existing master leases with two tenant groups, increasing annual rents by $5.5 million for the Tide Group and $0.6 million for Reliant Care Group, both subject to 3% annual increases. This strategic move strengthens the company’s relationships with its tenants and enhances its market position in the healthcare real estate sector.

Strawberry Fields REIT Issues $87.6M Series B Bonds

On June 23, 2025, Strawberry Fields REIT Inc. issued approximately $87.6 million of its Series B Bonds, net of fees, exclusively in Israel, with trading on the Tel Aviv Stock Exchange. The company plans to use the proceeds for ongoing operations, including repaying existing debts and acquiring properties. The bonds have a structured repayment plan with principal reduction payments scheduled from 2026 to 2029 and an annual interest rate of 6.70%. This financial maneuver is expected to bolster the company’s operational capabilities and market positioning.