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Strawberry Fields REIT Inc (STRW)
:STRW
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Strawberry Fields REIT Inc
(STRW)
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Rating:67Neutral
Price Target:
$12.50
▲(10.23% Upside)
Strawberry Fields REIT Inc shows a solid financial performance with strong revenue growth and cash flow generation, contributing significantly to the overall score. The technical analysis indicates a neutral to slightly bearish trend, while the valuation is attractive due to a reasonable P/E ratio and high dividend yield. The absence of earnings call data and corporate events does not impact the score.
Positive Factors
Revenue Growth
The company has shown a solid revenue growth rate, which indicates expanding market presence and effective business operations, supporting long-term sustainability.
Cash Flow Generation
Robust cash flow generation enhances financial flexibility, allowing the company to invest in growth opportunities and maintain operations efficiently.
Leverage Reduction
Reduced leverage improves financial stability and lowers risk, enabling the company to better withstand economic fluctuations and invest in strategic initiatives.
Negative Factors
Cost Pressures
Decreasing gross profit margins indicate rising costs, which could pressure profitability if not managed effectively, impacting long-term financial health.
Low Equity Ratio
A low equity ratio suggests limited financial buffer, which could constrain growth initiatives and increase vulnerability to economic downturns.
Profitability Maintenance
Ongoing profitability challenges require effective cost management to sustain performance, crucial for long-term competitiveness and shareholder value.
Strawberry Fields REIT Inc (STRW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$151.88M
Dividend Yield4.96%
Average Volume (3M)36.66K
Price to Earnings (P/E)19.4
Beta (1Y)0.20
Revenue Growth24.72%
EPS Growth30.05%
CountryUS
Employees9
SectorReal Estate
Sector Strength53
IndustryREIT - Healthcare Facilities
Share Statistics
EPS (TTM)0.15
Shares Outstanding12,992,595
10 Day Avg. Volume35,885
30 Day Avg. Volume36,656
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap5.54
Enterprise Value/Revenue6.22
Enterprise Value/Gross Profit7.76
Enterprise Value/Ebitda7.49
Forecast
1Y Price Target
$12.88Price Target Upside13.58% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
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:Aug 08, 2025
(Q1-2025)
| % Change Since: |
Next Earnings Date:Nov 18, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance and significant acquisition activity, which positions the company well for future growth. However, concerns about stock valuation and the regulatory environment present challenges. Overall, the positives from operational achievements and financial growth outweigh the negatives.Q1-2025 Updates
Positive Updates
100% Rent Collection
The company successfully collected 100% of its contractual rents during Q1 2025, demonstrating strong tenant relationships and operational efficiency.
Significant Acquisition Activity
Strawberry Fields completed over $40 million in acquisitions in Q1 2025, with expectations to reach $100 million by the end of Q2. Notable acquisitions include facilities in Kansas, Oklahoma, and Texas, adding a significant number of licensed beds to the portfolio.
Revenue Growth
Total revenue for Q1 2025 was $37.3 million, up 34.1% year-over-year from $27.8 million in Q1 2024, driven by recent acquisitions and re-tenanting efforts.
AFFO and EBITDA Improvements
AFFO for Q1 2025 was $16.8 million, a 28% increase from $13.1 million in Q1 2024. Adjusted EBITDA rose by 42% year-over-year to $30.4 million, reflecting strong financial performance.
Robust Pipeline and Future Outlook
The company anticipates completing between $100 million and $200 million in acquisitions by the end of 2025, supported by a strong acquisition pipeline.
Negative Updates
Stock Trading Below NAV
Despite significant operational achievements, the company's stock is trading below its Net Asset Value (NAV), which management believes is undervalued.
Concerns Over Medicaid and Regulatory Environment
Ongoing discussions about Medicaid and regulatory changes pose potential challenges, though management remains optimistic about navigating these issues.
Operational Challenges with Diversified Portfolio
There is a need to integrate and manage diverse operator relationships, as seen with the transition of the Landmark lease to a new operator.
Company Guidance
During the Strawberry Fields REIT First Quarter 2025 Earnings Call, the company provided guidance and discussed several key financial metrics and operational highlights. The REIT collected 100% of its contractual rents and completed significant acquisitions, including six healthcare facilities in Kansas for $24 million and a skilled nursing facility near Oklahoma City for $5 million, both funded through cash and master leases. Additionally, the REIT paid a quarterly dividend of $0.14 per share and made strategic hires, including an asset manager and a lawyer. Financially, total assets increased by 31.5% to $199 million compared to Q1 2024, and total revenue rose by 34.1% to $37.3 million. Net income for the quarter was $6.99 million, with AFFO reaching $16.8 million, a 28% increase year-over-year. Strawberry Fields projected its full-year 2025 AFFO to be $67.3 million, representing a 20% growth, and expected its adjusted EBITDA to reach $128.8 million. The company expressed confidence in its pipeline, expecting to complete over $40 million in acquisitions by the end of Q2 and aiming for $100 million by the end of the year.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.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 | 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
Positive
11.34
Price Trends
11.85
Negative
11.07
Positive
10.96
Positive
Market Momentum
-0.07
Positive
48.79
Neutral
42.64
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 11.34 is below the 20-day moving average (MA) of 11.79, below the 50-day MA of 11.85, and above the 200-day MA of 10.96, indicating a neutral trend. The MACD of -0.07 indicates Positive momentum. The RSI at 48.79 is Neutral, neither overbought nor oversold. The STOCH value of 42.64 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 |
|---|---|---|---|---|---|---|---|
| ― | $1.31B | 33.53 | 2.71% | 6.66% | 0.43% | 58.57% | |
| ― | $151.88M | 19.43 | 51.91% | 4.96% | 24.72% | 30.05% | |
| ― | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
| ― | $620.09M | 95.54 | 1.94% | 8.61% | 0.90% | ― | |
| ― | $505.16M | 28.13 | 10.08% | 8.10% | 0.14% | -0.76% | |
| ― | $1.04B | -3.59 | -14.32% | 0.97% | 4.29% | 18.89% | |
| ― | $413.87M | ― | -2.22% | 12.85% | 2.96% | -877.53% |
* Real Estate Sector Average
STRW
Strawberry Fields REIT Inc
11.34
-0.68
-5.66%
DHC
Diversified Healthcare Trust
4.29
0.75
21.19%
CHCT
Community Healthcare
14.50
-1.41
-8.86%
GMRE
Global Medical REIT
32.07
-9.83
-23.46%
UHT
Universal Health Realty Income
36.45
-0.42
-1.14%
SILA
Sila Realty Trust, Inc.
24.03
0.08
0.33%
Strawberry Fields REIT Inc Corporate Events
DividendsFinancial Disclosures
Strawberry Fields REIT Announces Increased Cash Dividend
Positive
Aug 8, 2025
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%.
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 DisclosuresM&A TransactionsPrivate Placements and Financing
Strawberry Fields REIT Reports Strong Q2 2025 Results
Positive
Aug 8, 2025
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.
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.
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.