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Strawberry Fields REIT Inc (STRW)
:STRW
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Strawberry Fields REIT Inc
(NYSE MKT:STRW)
Select Model
Select Model
Rating:74Outperform
Price Target:
$14.00
▲(6.79% Upside)
Strawberry Fields REIT Inc demonstrates strong financial performance with robust cash flow and improved profitability. The positive earnings call, highlighting asset growth and a dividend increase, further supports the stock's outlook. However, valuation concerns and cost pressures remain areas to watch.
Positive Factors
Revenue Growth
The significant increase in revenue indicates strong demand for the company's properties and effective management, supporting long-term growth.
Dividend Increase
The dividend increase reflects confidence in cash flow stability and commitment to shareholder returns, enhancing investor appeal.
Asset Growth
The substantial asset growth driven by acquisitions strengthens the company's market position and potential for future income generation.
Negative Factors
Higher Expenses
Rising expenses could pressure margins and profitability, requiring careful management to maintain financial health over the long term.
Foreign Currency Losses
Foreign currency losses can affect overall profitability and may require hedging strategies to mitigate future risks.
Interest on Series D Bonds
High interest costs from existing debt can strain cash flows and limit financial flexibility, impacting future investment capacity.
Strawberry Fields REIT Inc (STRW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$171.09M
Dividend Yield4.42%
Average Volume (3M)28.90K
Price to Earnings (P/E)21.0
Beta (1Y)0.25
Revenue Growth29.76%
EPS Growth22.76%
CountryUS
Employees9
SectorReal Estate
Sector Strength53
IndustryREIT - Healthcare Facilities
Share Statistics
EPS (TTM)0.15
Shares Outstanding13,120,095
10 Day Avg. Volume34,919
30 Day Avg. Volume28,903
Financial Highlights & Ratios
PEG Ratio0.40
Price to Book (P/B)4.13
Price to Sales (P/S)0.64
P/FCF Ratio2.13
Enterprise Value/Market Cap5.42
Enterprise Value/Revenue6.38
Enterprise Value/Gross Profit7.84
Enterprise Value/Ebitda7.61
Forecast
1Y Price Target
$13.88Price Target Upside5.87% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)0.46
Revenue Forecast (FY)$154.90M
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 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 Earnings Call Summary
Earnings Call Date:Nov 06, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 05, 2026
Earnings Call Sentiment Positive
The overall sentiment of the call is positive, with strong asset and revenue growth, full rent collection, and a dividend increase. However, challenges remain with higher expenses, foreign currency losses, and specific market laggards.Q3-2025 Updates
Positive Updates
100% Rent Collection
During Q3 2025, Strawberry Fields REIT collected 100% of its contractual rents, showcasing strong operational performance.
Significant Asset Growth
Total assets reached $880 million, a 33.1% increase compared to Q3 2024, driven by acquisition strategy and successful retenanting.
Revenue and Net Income Growth
Year-to-date revenue was $114.9 million, up $28.3 million from last year. Net income year-to-date was $24.5 million, an increase from $19.9 million last year.
AFFO and EBITDA Increase
Projected AFFO for 2025 is $72.7 million, a 28.2% increase. Adjusted EBITDA is projected at $126.1 million, up 38.9% year-over-year.
Dividend Increase
The Board approved increasing the dividend to $0.16 a share, representing a 14% increase over previous quarters.
Negative Updates
Foreign Currency Exchange Losses
There were some foreign currency exchange losses impacting other comprehensive income.
Higher Expenses
Expenses rose due to higher depreciation, amortization, and interest from new assets.
Challenges in Illinois
Illinois remains a laggard from a reimbursement perspective, affecting performance in that market.
Interest on Series D Bonds
The high cost of debt from Series D bonds, maturing in September 2026, remains a concern despite plans for refinancing.
Company Guidance
During the Strawberry Fields REIT Q3 2025 earnings call, the company provided guidance on several key metrics. The company reported a 100% rent collection rate for the quarter and announced several acquisitions, including 9 skilled nursing facilities in Missouri for $59 million, a skilled nursing facility in Oklahoma for $4.25 million, and a healthcare facility in Missouri for $5.3 million. The Board of Directors approved a dividend increase to $0.16 per share, a 14% rise from previous quarters, with a yield of 5.2%. Projected Adjusted Funds From Operations (AFFO) for 2025 is $72.7 million, a 28.2% increase from the previous year, while Adjusted EBITDA is projected at $126.1 million, up 38.9% year-over-year. The company maintains a balanced capital structure with a net debt-to-asset ratio of 49.2%. Strawberry Fields REIT's portfolio includes 142 facilities with 15,542 licensed beds across 10 states, with a total asset value of $1.1 billion. The management emphasized their disciplined acquisition strategy and commitment to long-term shareholder value, as reflected in their net income of $8.8 million for the quarter, a 27.5% increase from the previous year.Strawberry Fields REIT Inc Financial Statement Overview
Summary
Strawberry Fields REIT Inc shows strong revenue growth and improved profitability, with a solid cash flow position. However, the company faces potential cost pressures and relies on leverage, which could impact future financial stability.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.75
Positive
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.60
Neutral
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.80
Positive
| 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 | 941.00K | 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 | 67.59M | 35.33M | 54.94M | 50.93M | 44.79M | 37.34M |
| Operating Cash Flow | 73.59M | 59.33M | 54.94M | 50.93M | 44.79M | 37.34M |
| Investing Cash Flow | -134.19M | -136.78M | -106.35M | -10.10M | -58.29M | -6.43M |
| Financing Cash Flow | 138.80M | 133.34M | 43.46M | -47.25M | 23.57M | -26.10M |
Strawberry Fields REIT Inc Technical Analysis
Positive
13.11
Price Trends
12.00
Positive
11.67
Positive
11.16
Positive
Market Momentum
0.34
Negative
62.22
Neutral
52.73
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 13.11 is above the 20-day moving average (MA) of 12.49, above the 50-day MA of 12.00, and above the 200-day MA of 11.16, indicating a bullish trend. The MACD of 0.34 indicates Negative momentum. The RSI at 62.22 is Neutral, neither overbought nor oversold. The STOCH value of 52.73 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $171.09M | 21.00 | 52.29% | 4.42% | 29.76% | 22.76% | |
69 Neutral | $572.98M | 31.89 | 10.55% | 7.14% | 0.68% | -1.34% | |
68 Neutral | $1.22B | 31.24 | 2.77% | 7.10% | 3.74% | 77.82% | |
66 Neutral | $421.38M | ― | -2.32% | 12.18% | 3.40% | -240.85% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
58 Neutral | $1.18B | ― | -18.84% | 0.81% | 4.10% | 8.96% | |
55 Neutral | $503.47M | ― | 0.49% | 11.01% | 2.73% | -131.16% |
* Real Estate Sector Average
STRW
Strawberry Fields REIT Inc
13.11
3.25
32.96%
DHC
Diversified Healthcare Trust
4.68
2.28
95.00%
CHCT
Community Healthcare
15.10
-1.03
-6.39%
GMRE
Global Medical REIT
34.92
-3.53
-9.18%
UHT
Universal Health Realty Income
42.20
4.32
11.40%
SILA
Sila Realty Trust, Inc.
22.54
-1.04
-4.41%
Strawberry Fields REIT Inc Corporate Events
Dividends
Strawberry Fields REIT Declares Cash Dividend Announcement
Positive
Nov 6, 2025
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.
M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Strawberry Fields REIT Reports Strong Q3 2025 Results
Positive
Nov 6, 2025
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.
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.