Strawberry Fields REIT Inc (STRW) AI Stock Analysis

• Market Cap: $130.42M
• Dividend Yield: 5.25%
• Average Volume (3M): 49.90K
• Price to Earnings (P/E): 17.6
• Beta (1Y): 0.09
• Revenue Growth: 22.41%
• EPS Growth: 37.88%
• Country: US
• Employees: 9
• Sector: Real Estate
• Sector Strength: 61
• Industry: REIT - Healthcare Facilities
• EPS (TTM): 0.13
• Shares Outstanding: 12,445,095
• 10 Day Avg. Volume: 26,657
• 30 Day Avg. Volume: 49,903
• PEG Ratio: 0.92
• Price to Book (P/B): 3.74
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.82
• Enterprise Value/Market Cap: 4.56
• Enterprise Value/Revenue: 1.28
• Enterprise Value/Gross Profit: 5.76
• Enterprise Value/Ebitda: 1.58
• 1Y Price Target: $12.54
• Price Target Upside: 20.69% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 69 Neutral
• Price Target: $11.50 ▲(10.68%Upside)

Strawberry Fields REIT Inc shows strong financial performance with impressive revenue growth and operational efficiency. While technical analysis reveals some potential undervaluation, the company's valuation metrics are favorable, with a high dividend yield. Earnings call insights highlight challenges with debt reliance but emphasize strategic growth. Recent corporate events further bolster its market position despite the financial risks.

Positive Factors

Earnings and Acquisitions

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 Rates

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 solid financial metrics with strong revenue growth and operational efficiency. However, high leverage poses a potential risk, mitigated by strong cash flow generation. The company's ability to convert income into cash is commendable, supporting its financial stability in the healthcare facilities sector.

Income Statement

Strawberry Fields REIT Inc shows strong revenue growth with a TTM revenue increase of 8.12% compared to the previous year. Gross profit margins are healthy at 81.68%, indicating efficient cost management. The net profit margin is modest at 3.90% due to relatively high interest or operational expenses. The EBIT and EBITDA margins are robust at 53.25% and 82.13% respectively, reflecting strong operational performance.

Balance Sheet

The company has a high debt-to-equity ratio of 25.86, indicating significant leverage which could pose financial risk. However, the equity ratio of 2.35% suggests minimal equity cushion, emphasizing dependency on debt financing. Return on equity is strong at 25.15%, demonstrating effective use of shareholder funds in generating profits.

Cash Flow

The free cash flow shows a significant growth of 98.66%, highlighting improved cash generation capabilities. The operating cash flow to net income ratio is high at 15.44, suggesting strong cash conversion from earnings. Free cash flow to net income ratio is also substantial at 14.23, indicating robust cash flow generation relative to profits.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	117.06M	99.81M	92.54M	87.03M	84.09M
Gross Profit	101.84M	55.84M	78.88M	75.67M	73.75M
EBITDA	95.50M	75.20M	78.73M	57.56M	62.57M
Net Income	4.09M	2.50M	-18.01M	-16.03M	-12.13M
Balance Sheet
Total Assets	787.59M	616.79M	547.00M	569.96M	523.68M
Cash, Cash Equivalents and Short-Term Investments	48.37M	12.17M	20.20M	26.21M	17.81M
Total Debt	671.74M	537.99M	457.25M	503.86M	488.81M
Total Liabilities	704.02M	569.52M	497.62M	534.91M	510.26M
Stockholders Equity	18.17M	7.51M	7.79M	2.27M	13.42M
Cash Flow
Free Cash Flow	35.33M	54.94M	50.93M	44.79M	37.34M
Operating Cash Flow	59.33M	54.94M	50.93M	44.79M	37.34M
Investing Cash Flow	-136.78M	-106.35M	-10.10M	-58.29M	-6.43M
Financing Cash Flow	133.34M	43.46M	-47.25M	23.57M	-26.10M

Strawberry Fields REIT Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.39
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 10.39 is above the 20-day moving average (MA) of 10.39, above the 50-day MA of 10.35, and below the 200-day MA of 10.94, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 49.98 is Neutral, neither overbought nor oversold. The STOCH value of 57.03 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
SILA	75 Outperform	$1.41B	40.20	2.46%	6.26%	-2.94%	46.24%
UHT	69 Neutral	$576.92M	30.96	10.15%	7.06%	0.95%	15.07%
CHCT	69 Neutral	$468.99M	―	-1.67%	11.27%	1.33%	-149.80%
STRW	69 Neutral	$130.42M	17.63	36.40%	5.25%	22.41%	37.88%
Sector *	66 Neutral	£957.08M	13.96	2.04%	185.02%	11.04%	38.13%
DHC	63 Neutral	$834.73M	―	-13.96%	1.16%	5.33%	10.68%
GMRE	59 Neutral	$520.86M	229.39	1.45%	11.10%	-1.66%	-86.24%

Strawberry Fields REIT Inc Corporate Events

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.

The most recent analyst rating on (STRW) stock is a Buy with a $12.50 price target. To see the full list of analyst forecasts on Strawberry Fields REIT Inc stock, see the STRW Stock Forecast page.

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.

The most recent analyst rating on (STRW) stock is a Buy with a $12.50 price target. To see the full list of analyst forecasts on Strawberry Fields REIT Inc stock, see the STRW Stock Forecast page.

Strawberry Fields REIT Expands Sales Agreement with Wedbush

On June 4, 2025, Strawberry Fields REIT Inc. and its operating partnership amended their At Market Issuance Sales Agreement to include Wedbush Securities Inc. as a new agent. This amendment, along with a filed Prospectus Supplement, increased the offering size to $50 million, potentially enhancing the company’s capital for future investments.

The most recent analyst rating on (STRW) stock is a Buy with a $12.50 price target. To see the full list of analyst forecasts on Strawberry Fields REIT Inc stock, see the STRW Stock Forecast page.

Strawberry Fields REIT Acquires Missouri Healthcare Facilities

On May 22, 2025, Strawberry Fields REIT, Inc. entered into an Asset Purchase Agreement to acquire nine healthcare facilities in Missouri for $59 million. These facilities, which will be operated as skilled nursing facilities with 686 licensed beds, will be leased under existing master lease agreements with two groups of third-party tenants, increasing the company’s annual rents by $6.1 million. The acquisition is expected to close by July 1, 2025, subject to substantial conditions.

The most recent analyst rating on (STRW) stock is a Buy with a $12.50 price target. To see the full list of analyst forecasts on Strawberry Fields REIT Inc stock, see the STRW Stock Forecast page.

Strawberry Fields REIT Reports Strong Q1 2025 Results

On May 9, 2025, Strawberry Fields REIT announced its financial results for Q1 2025, highlighting a 100% rent collection rate and significant acquisitions, including six healthcare facilities in Kansas and a skilled nursing facility near Oklahoma City. The company’s financial performance showed growth with increased rental income and net income compared to Q1 2024, attributed to strategic acquisitions and disciplined asset management, despite higher depreciation and interest expenses.

Strawberry Fields REIT Inc Q1 2025 Financial Update

On May 1, 2025, Strawberry Fields REIT Inc issued a presentation detailing its financial results for the year ending December 31, 2024, and the first quarter of 2025. The presentation, which is part of a Current Report on Form 8-K, provides insights into the company’s financial performance and is considered ‘furnished’ rather than ‘filed’ under the Securities Exchange Act of 1934 and the Securities Act of 1933.