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Strawberry Fields REIT Inc (STRW)
:STRW
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Strawberry Fields REIT Inc
(STRW)
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Rating:75Outperform
Price Target:
$15.00
â–²(15.12% Upside)
Action:ReiteratedDate:12/20/25
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 (STRW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$166.36M
Dividend Yield4.62%
Average Volume (3M)24.58K
Price to Earnings (P/E)20.4
Beta (1Y)0.29
Revenue Growth29.76%
EPS Growth22.76%
CountryUS
Employees9
SectorReal Estate
Sector Strength53
IndustryREIT - Healthcare Facilities
Share Statistics
EPS (TTM)0.17
Shares Outstanding13,120,095
10 Day Avg. Volume30,958
30 Day Avg. Volume24,581
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 Cap1.10
Enterprise Value/Revenue1.26
Enterprise Value/Gross Profit1.54
Enterprise Value/Ebitda1.50
Forecast
1Y Price Target
$15.00Price Target Upside15.12% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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:Feb 19, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 19, 2026
Earnings Call Sentiment Positive
The call presented a largely positive operational and financial story: strong top-line growth (32.4% revenue increase), meaningful AFFO and EBITDA expansion (29.8% and 38.2%), full rent collection, balance sheet growth and active capital markets execution. Those positives are tempered by higher non-cash and interest expenses, increased leverage, currency translation headwinds, a one-time G&A charge, and a large transaction that fell apart. Management emphasized disciplined underwriting, a sizeable acquisition pipeline, and planned refinancing actions to smooth maturities and funding availability.Q4-2025 Updates
Positive Updates
100% Contractual Rent Collected
Collected 100% of contractual rent throughout 2025, demonstrating strong tenant cash collection and resilience of the master-lease model.
Revenue Growth
2025 revenue of $155,000,000, up $37,900,000 or 32.4% versus 2024, driven by acquisitions and the Landmark-to-Kentucky master lease retenanting.
AFFO and Adjusted EBITDA Expansion
2025 AFFO was $72,500,000, a 29.8% increase versus 2024 (13.3% CAGR). Adjusted EBITDA was $125,300,000, up 38.2% versus 2024 (13.5% CAGR).
Net Income and EPS Improvement
Year-to-date net income of $33,300,000 or $0.60 per share compared to $26,500,000 or $0.57 per share in 2024, reflecting improved profitability despite higher non-cash and financing costs.
Asset Base Expansion
Total assets reached $885,000,000, an increase of $97,900,000 or 12.4% vs 12/31/2024, supported by $112,000,000 of acquisitions in 2025 and lease retenanting activity.
Strategic Acquisitions and Portfolio Growth
Entered Kansas with acquisition of six facilities (354 beds) for $24,000,000 and retenanted 10 Kentucky properties with Hill Valley (new base rent $23,300,000/year with 2.5% annual increases; initial 10-year term + extensions).
Successful Capital Markets Execution
Issued 312,000,000 shekel (~$89.5M) Series B unsecured bonds on the Tel Aviv Stock Exchange at a fixed 6.7%, marking the company's sixth series issuance since founding.
Portfolio Scale and Quality Metrics
Portfolio of 143 facilities across 10 states with 16,602 licensed beds; weighted-average lease term 7.2 years; EBITDARM rent coverage 2.07 and EBITDAR coverage ~1.6, indicating strong operator coverage.
Dividend and Payout Discipline
Dividend of $0.16/share (4.9% yield) with AFFO payout ~46–47%, enabling retained cash (~$40M referenced) for debt paydown and accretive acquisitions while maintaining a conservative payout ratio.
Healthy Acquisition Pipeline and Valuation Discipline
Acquisition pipeline approximately $250,000,000 and a stated disciplined underwriting threshold (10% cap at acquisition, 1.25 coverage underwriting), emphasizing accretive growth focus.
Negative Updates
Rising Depreciation, Amortization and Interest Expense
Income growth was materially offset by higher depreciation, amortization and interest expense tied to recent property acquisitions and increased debt balances, limiting net income upside.
Higher Leverage and Debt-Related Risks
Net debt to net asset ratio around 49.5% and net debt to EBITDA of 5.7, reflecting increased leverage from financing acquisitions; refinancing and interest-rate exposure noted for upcoming maturities.
Foreign Currency Translation Pressure
Equity declined due to lower other comprehensive income driven by foreign currency translation adjustments (shekel/dollar exposure), creating volatility in reported equity.
One-Time G&A / Executive Compensation Hit
Q4 G&A included a one-time payroll/executive-compensation accrual (recorded retroactively over prior period) of approximately $1.0–$1.1M, increasing reported expenses in the quarter.
Lost Large Acquisition Opportunity
A material $890,000,000 deal that management expected to announce fell through, representing a missed opportunity to accelerate growth.
Refinancing and Currency Timing Risks
Management highlighted currency mismatches between dollar assets and shekel liabilities and the need to refinance near-term maturities; modeled new financing at SOFR+2.65–2.75 for credit lines and ~6.25% for bond debt—potentially higher blended cost in the near term.
Occupancy Variability by State
Some states in the portfolio (e.g., Oklahoma) have low state-average occupancies (~50%), which can present operational variance; while rent collection is stable under master leases, occupancy remains a market-level headwind for some assets.
Company Guidance
Guidance emphasized disciplined, accretive growth: management reiterated an annual acquisition target of $100M–$150M (pipeline ~$250M) and said it expects to sign a bank term sheet in 45–60 days to secure an unsecured line/term loan (providing >$100M of availability) and to reprofile debt into roughly equal maturities over the next 4–5 years; modeled refinancing pricing is ~SOFR+2.65–2.75 for the credit line and ~6.25% for bond debt (after issuing Series B bonds of NIS 312,000,000 ≈ $89.5M at 6.7%). They reiterated underwriting discipline (10% cap at acquisition, ~1.25x day‑one coverage) while highlighting balance‑sheet and operating metrics that support growth: net debt/net asset ~49.5%, net debt/EBITDA 5.7x, 100% contractual rent collection, EBITDARM coverage 2.07x (EBITDAR ~1.6x), 2025 AFFO $72.5M (+29.8% YoY; 13.3% CAGR), adjusted EBITDA $125.3M (+38.2% YoY; 13.5% CAGR), revenue $155M (+32.4% YoY), net income $33.3M ($0.60/sh), total assets $885M (+12.4%), 143 facilities/16,602 beds, dividend $0.16/sh (4.9% yield) with an AFFO payout ~46–47% and an AFFO per‑share run rate of about $1.30 that management expects to grow in 2026.Strawberry Fields REIT Inc Financial Statement Overview
Summary
Strawberry Fields REIT Inc shows strong revenue growth and cash flow generation with robust margins. However, high leverage and low net profit margin indicate potential risks and areas for improvement.Income Statement
Strawberry Fields REIT Inc has shown a strong revenue growth rate of 7.58% in the TTM, indicating a positive trajectory. The gross profit margin is robust at 81.45%, and the EBIT margin is also strong at 53.82%. However, the net profit margin is relatively low at 4.83%, suggesting room for improvement in profitability.75
Positive
Balance Sheet
The company has a high debt-to-equity ratio, indicating significant leverage, which could pose a risk. However, the return on equity is strong at 41.61%, reflecting effective use of equity to generate profits. The equity ratio is low, suggesting a reliance on debt financing.60
Neutral
Cash Flow
The cash flow statement shows a healthy free cash flow growth rate of 11.16% in the TTM. The operating cash flow to net income ratio is exceptionally high, indicating strong cash generation relative to net income. The free cash flow to net income ratio is also solid, suggesting efficient cash management.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 | 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
Positive
13.03
Price Trends
13.08
Negative
12.45
Positive
11.51
Positive
Market Momentum
-0.08
Positive
51.93
Neutral
40.36
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 13.03 is above the 20-day moving average (MA) of 12.97, below the 50-day MA of 13.08, and above the 200-day MA of 11.51, indicating a neutral trend. The MACD of -0.08 indicates Positive momentum. The RSI at 51.93 is Neutral, neither overbought nor oversold. The STOCH value of 40.36 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $166.36M | 20.42 | 50.04% | 4.62% | 29.76% | 22.76% | |
69 Neutral | $590.32M | 32.85 | 10.55% | 7.51% | 0.68% | -1.34% | |
67 Neutral | $1.39B | 35.67 | 2.77% | 6.98% | 3.74% | 77.82% | |
66 Neutral | $492.86M | 222.87 | 0.46% | 12.08% | 3.40% | -240.85% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
55 Neutral | $521.66M | -145.24 | 0.49% | 10.01% | 2.73% | -131.16% | |
49 Neutral | $1.61B | -4.34 | -18.84% | 0.80% | 4.10% | 8.96% |
* Real Estate Sector Average
STRW
Strawberry Fields REIT Inc
13.03
1.91
17.18%
DHC
Diversified Healthcare Trust
6.24
3.86
161.96%
CHCT
Community Healthcare
17.04
0.24
1.45%
GMRE
Global Medical REIT
35.98
-2.49
-6.47%
UHT
Universal Health Realty Income
43.14
6.84
18.84%
SILA
Sila Realty Trust, Inc.
25.37
2.73
12.06%
Strawberry Fields REIT Inc Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
Strawberry Fields REIT Highlights Concentration and Related-Party Risks
Negative
Dec 19, 2025
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.
The most recent analyst rating on (STRW) stock is a Buy with a $14.00 price target. To see the full list of analyst forecasts on Strawberry Fields REIT Inc stock, see the STRW Stock Forecast page.
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.
The most recent analyst rating on (STRW) stock is a Buy with a $14.50 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 DisclosuresM&A Transactions
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.
The most recent analyst rating on (STRW) stock is a Buy with a $14.50 price target. To see the full list of analyst forecasts on Strawberry Fields REIT Inc stock, see the STRW Stock Forecast page.
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.