Strawberry Fields REIT, Inc. (NYSE: STRW) is a self-administered real estate investment trust with a market capitalization of $1.05 billion. The South Bend, Indiana-based company specializes in the ownership, acquisition, and leasing of skilled nursing and healthcare-related properties.
Robust Revenue and Profit Expansion
For the fiscal year ended December 31, 2025, Strawberry Fields reported rental revenues of $155.0 million, up 32.4% from $117.1 million in 2024. Net income increased to $33.3 million from $26.5 million, with 100% of contractual rents collected.
Funds from operations (FFO) reached $79.6 million, or $1.43 per share, versus $60.2 million, or $1.15 per share in 2024. Adjusted funds from operations (AFFO) were $72.5 million, or $1.30 per share, compared with $55.8 million, or $1.07 per share a year earlier. Adjusted EBITDA grew to $125.3 million from $90.6 million.
Leadership Insights: Management Perspective
Chairman and CEO Moishe Gubin described 2025 as the company’s strongest year since inception. He emphasized consistent FFO growth exceeding 13% and growing investor recognition of the senior housing sector. Management highlighted ongoing efforts to close the valuation gap relative to peers while maintaining disciplined acquisition strategies.
Portfolio Strength: Skilled Nursing at the Core
The company’s holdings include 131 skilled nursing facilities (SNFs), 10 assisted living facilities (ALFs), and two long-term acute care hospitals (LTACHs). SNFs represent 91.6% of the portfolio, a higher concentration than peers. Average facility size is 109 beds, with SNF occupancy at 76.2% as of November 2025.
M&A Activity and Geographic Footprint
Total real estate investments in 2025 reached $112.1 million. Significant acquisitions and leases included:
- Kentucky: New master lease for 10 properties, generating $23.3 million in annual base rent.
- Missouri: Nine skilled nursing facilities for $59.0 million.
- Kansas: Six facilities for $24.0 million.
- Oklahoma: Two facilities totaling $7.25 million.
- Texas: One facility near Houston for $11.5 million.
The portfolio now spans 143 healthcare facilities across 10 states, totaling more than 15,600 beds. The company currently identifies a $250 million-plus acquisition pipeline.
Financial Health: Credit Ratings and Debt Management
Total debt was $747.9 million as of December 31, 2025. In June 2025, the company issued 312.0 million NIS (approximately $89.5 million) in unsecured Series B Bonds at a fixed 6.70% interest rate. Long-term HUD-guaranteed debt totaled $254.1 million, with a weighted average interest rate of 3.91%. Net debt to adjusted EBITDA remained at 5.7x, reflecting disciplined leverage.
Government-Dependent Revenue and Macro Considerations
Operators rely heavily on government reimbursement, with a payor mix of 78% Medicaid and 5% Medicare. Demand is supported by an aging U.S. population, projected to exceed 72 million people aged 65 and older by 2030. Macroeconomic risks include interest rate volatility, regulatory changes, and potential illiquidity in real estate investments.
Peer Comparison: Competitive Positioning
The company reported an AFFO payout ratio of 46.7%, below peers such as Omega Healthcare Investors, Sabra Health Care REIT, and CareTrust REIT, whose payout ratios range from 70.4% to 88.2%. Trailing twelve-month EBITDARM rent coverage was 2.07x, indicating strong rent coverage relative to obligations.
Forward Outlook and Analyst Activity
Management confirmed a continued focus on accretive acquisitions in 2026, while maintaining disciplined investment practices. No specific numerical guidance for 2026 was provided. No analyst upgrades, downgrades, or price-target changes were reported.
2025 in Review
Strawberry Fields REIT delivered strong full-year 2025 growth, driven by strategic acquisitions, new lease contributions, and consistent FFO expansion. Profitability and cash flow improved year-over-year, while leverage remained controlled. Portfolio expansion and geographic diversification reinforce the company’s position as a focused skilled nursing facility investor, with management signaling continued value-accretive growth in 2026.