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Strawberry Fields REIT Inc (STRW)
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Strawberry Fields REIT Inc (STRW) AI Stock Analysis

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STRW

Strawberry Fields REIT Inc

(NYSE MKT:STRW)

Rating:69Neutral
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 (STRW) vs. SPDR S&P 500 ETF (SPY)

Strawberry Fields REIT Inc Business Overview & Revenue Model

Company DescriptionStrawberry 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 MoneyStrawberry 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 Earnings Call Summary

Earnings Call Date:May 09, 2025
(Q1-2025)
|
% Change Since: 5.27%|
Next Earnings Date:Aug 08, 2025
Earnings Call Sentiment Neutral
The earnings call reflected strong operational performance with robust revenue growth and successful acquisitions. However, challenges such as stock market undervaluation and reliance on debt financing were also evident.
Q1-2025 Updates
Positive Updates
100% Rent Collection
The company collected 100% of its contractual rents for the quarter, indicating strong lease performance and tenant stability.
Significant Revenue Growth
Total revenue for Q1 2025 was $37.3 million, up from $27.8 million in the same period last year, representing a 34.1% year-over-year increase.
AFFO Growth
AFFO for Q1 2025 was $16.8 million, up from $13.1 million a year ago, representing a 28% increase.
Completion of Multiple Acquisitions
The company completed the acquisition of multiple healthcare facilities, leading to an increase in annual rents and expansion of its portfolio.
Adjusted EBITDA Increase
Adjusted EBITDA for Q1 2025 came in at $30.4 million compared to $21.4 million in Q1 2024, marking a 42% year-over-year increase.
Negative Updates
Stock Price Volatility
Despite positive financial performance, the company's stock is not trading at the expected NAV, indicating market undervaluation issues.
Debt and Financing Challenges
The company plans to rely on debt and cash reserves for upcoming acquisitions, highlighting potential challenges in accessing equity markets at favorable conditions.
Pressure from Israeli Bond Market
The company faces pressure from the Israeli bond market due to cultural misunderstandings about healthcare investment.
Company Guidance
During the call, Strawberry Fields REIT provided guidance indicating a strong start to the fiscal year 2025, with the company collecting 100% of its contractual rents in the first quarter. They reported a 34.1% year-over-year increase in total revenue, reaching $37.3 million, and a net income of $6.99 million or $0.13 per share, up from $5.99 million or $0.12 per share in the prior year. The company completed several acquisitions, including six healthcare facilities in Kansas for $24 million and a skilled nursing facility near Oklahoma City for $5 million, adding 454 licensed beds to their portfolio. Strawberry Fields REIT's AFFO for Q1 2025 was $16.8 million, a 28% increase from the previous year, with projections for full year 2025 AFFO at $67.3 million, representing a 20% year-over-year growth. Adjusted EBITDA for the quarter was $30.4 million, marking a 42% increase from Q1 2024, with expectations for full-year adjusted EBITDA of $128.8 million. The company maintained a dividend yield of 4.7% with an AFFO payout ratio of 46.2%, reflecting their commitment to capital retention to support an active acquisition pipeline. Looking ahead, they anticipate completing over $100 million in acquisitions by the end of Q2 2025.

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
70
Positive
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
60
Neutral
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
75
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue117.06M99.81M92.54M87.03M84.09M
Gross Profit101.84M55.84M78.88M75.67M73.75M
EBITDA95.50M75.20M78.73M57.56M62.57M
Net Income4.09M2.50M-18.01M-16.03M-12.13M
Balance Sheet
Total Assets787.59M616.79M547.00M569.96M523.68M
Cash, Cash Equivalents and Short-Term Investments48.37M12.17M20.20M26.21M17.81M
Total Debt671.74M537.99M457.25M503.86M488.81M
Total Liabilities704.02M569.52M497.62M534.91M510.26M
Stockholders Equity18.17M7.51M7.79M2.27M13.42M
Cash Flow
Free Cash Flow35.33M54.94M50.93M44.79M37.34M
Operating Cash Flow59.33M54.94M50.93M44.79M37.34M
Investing Cash Flow-136.78M-106.35M-10.10M-58.29M-6.43M
Financing Cash Flow133.34M43.46M-47.25M23.57M-26.10M

Strawberry Fields REIT Inc Technical Analysis

Technical Analysis Sentiment
Positive
Last Price10.39
Price Trends
50DMA
10.35
Positive
100DMA
10.77
Negative
200DMA
10.94
Negative
Market Momentum
MACD
-0.03
Negative
RSI
49.98
Neutral
STOCH
57.03
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

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$1.41B40.202.46%6.26%-2.94%46.24%
69
Neutral
$576.92M30.9610.15%7.06%0.95%15.07%
69
Neutral
$468.99M-1.67%11.27%1.33%-149.80%
69
Neutral
$130.42M17.6336.40%5.25%22.41%37.88%
66
Neutral
£957.08M13.962.04%185.02%11.04%38.13%
63
Neutral
$834.73M-13.96%1.16%5.33%10.68%
59
Neutral
$520.86M229.391.45%11.10%-1.66%-86.24%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
STRW
Strawberry Fields REIT Inc
10.48
-0.36
-3.32%
DHC
Diversified Healthcare Trust
3.46
0.14
4.22%
CHCT
Community Healthcare
16.40
-7.19
-30.48%
GMRE
Global Medical REIT
7.03
-1.72
-19.66%
UHT
Universal Health Realty Income
41.65
1.37
3.40%
SILA
Sila Realty Trust, Inc.
25.60
3.22
14.39%

Strawberry Fields REIT Inc Corporate Events

M&A TransactionsBusiness Operations and Strategy
Strawberry Fields REIT Expands with Missouri Acquisition
Positive
Jul 2, 2025

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.

Private Placements and FinancingBusiness Operations and Strategy
Strawberry Fields REIT Issues $87.6M Series B Bonds
Positive
Jun 25, 2025

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.

Private Placements and FinancingBusiness Operations and StrategyRegulatory Filings and Compliance
Strawberry Fields REIT Expands Sales Agreement with Wedbush
Positive
Jun 4, 2025

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.

M&A Transactions
Strawberry Fields REIT Acquires Missouri Healthcare Facilities
Positive
May 28, 2025

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.

Business Operations and StrategyFinancial Disclosures
Strawberry Fields REIT Reports Strong Q1 2025 Results
Positive
May 9, 2025

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.

Financial DisclosuresRegulatory Filings and Compliance
Strawberry Fields REIT Inc Q1 2025 Financial Update
Neutral
May 1, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 22, 2025