Strawberry Fields REIT, Inc. (NYSE AMERICAN: STRW) reported operating results for the year ended Dec. 31, 2025, achieving record financial performance marked by 100% rent collections and substantial growth in key metrics. The company's funds from operations (FFO) rose to $79.6 million, or $1.43 per share, up from $60.2 million, or $1.15 per share, in 2024. Adjusted FFO (AFFO) increased to $72.5 million, or $1.30 per share, compared to $55.8 million, or $1.07 per share, in the prior year. Net income climbed to $33.3 million from $26.5 million, while rental income surged to $155.0 million from $117.1 million, reflecting the company's successful expansion strategy.
The results underscore Strawberry Fields' ability to generate consistent cash flows and enhance shareholder value through strategic acquisitions and favorable lease terms. Chairman and CEO Moishe Gubin attributed the strong performance to the company's disciplined approach to capital allocation and portfolio management. “Our record results in 2025 demonstrate the resilience and growth potential of our skilled nursing and healthcare real estate portfolio,” Gubin said.
Key developments during the year included the execution of a new 10-year master lease in Kentucky, with $23.3 million in base rent subject to CPI increases, providing long-term revenue visibility. Additionally, the company acquired multiple skilled nursing and healthcare facilities across Kansas, Missouri, and Oklahoma, adding more than 1,200 beds to its portfolio. These acquisitions align with Strawberry Fields' strategy of focusing on high-quality assets in states with favorable regulatory environments.
To fund its growth, Strawberry Fields issued approximately $89.5 million in Series B bonds on the Tel Aviv Stock Exchange (TASE) at a fixed rate of 6.70%, a move that positions the company for continued accretive growth in 2026. The bond issuance reflects strong investor confidence in the company's business model and growth trajectory.
As of Dec. 31, 2025, Strawberry Fields' portfolio comprised 143 healthcare facilities with an aggregate of more than 15,600 beds, located across 10 states: Arkansas, Illinois, Indiana, Kansas, Kentucky, Missouri, Ohio, Oklahoma, Tennessee, and Texas. The facilities include 131 skilled nursing facilities, 10 assisted living facilities, and two long-term acute care hospitals. This diversified geographic footprint reduces concentration risk and provides a stable base for future expansion.
The company's focus on skilled nursing and healthcare properties positions it to benefit from demographic trends, including the aging baby boomer population, which is expected to drive demand for long-term care services. Strawberry Fields' ability to maintain 100% rent collections during the year highlights the high quality of its tenants and the essential nature of its properties.
Looking ahead, Strawberry Fields is well-positioned to capitalize on opportunities in the healthcare real estate sector, with a strong balance sheet and access to capital markets. The company's record results and strategic initiatives in 2025 set a solid foundation for continued growth and value creation in 2026 and beyond.
For more information, visit the company's newsroom at https://ibn.fm/STRW.
