Strawberry Fields REIT Reports Strong Q2 Results, Secures $300 Million Credit Facility to Fuel Growth

Strawberry Fields REIT (NYSE AMERICAN: STRW), a real estate investment trust specializing in skilled nursing and healthcare-related properties, announced its second-quarter 2026 results, showcasing strong financial performance and strategic moves to bolster its growth trajectory. The company reported 100% rent collections, net income of $8.9 million, and funds from operations (FFO) of $20.1 million, or $0.36 per share. Adjusted funds from operations (AFFO) reached $18.1 million, or $0.32 per share. Rental income increased to $40.0 million, up from $37.9 million in the same period last year.

During the quarter, Strawberry Fields closed on a new corporate credit facility providing up to $300 million in borrowing capacity, including a $100 million term loan and a $200 million revolving credit facility. This financing is intended to refinance existing debt and support future acquisitions, giving the company greater financial flexibility. Chairman and CEO Moishe Gubin noted that the new credit facility aligns Strawberry Fields more closely with its peers while providing additional flexibility to pursue acquisition opportunities.

The company also announced plans to acquire a hospital campus near Kansas City, Missouri, for $10.4 million during the third quarter. This property will be added to an existing master lease, which is expected to generate $1.04 million in annual base rent with 3% annual escalations. This acquisition underscores Strawberry Fields' strategy of expanding its portfolio through value-add investments in healthcare real estate.

For the first six months of 2026, the company reported FFO of $41.0 million, or $0.74 per share, and net income of $18.4 million. Rental income for the first half of the year reached $80.0 million, reflecting steady growth. The company's portfolio currently includes 142 healthcare facilities with an aggregate of 15,500 beds, located across Arkansas, Illinois, Indiana, Kansas, Kentucky, Missouri, Ohio, Oklahoma, Tennessee, and Texas. These facilities comprise 130 skilled nursing facilities, 10 assisted living facilities, and two long-term acute care hospitals.

The strong second-quarter results and the new credit facility are significant for Strawberry Fields and the broader healthcare real estate industry. The availability of $300 million in capital positions the company to capitalize on acquisition opportunities, particularly in a market where healthcare properties are in demand due to aging demographics and increasing healthcare needs. For Texas, where Strawberry Fields has a presence, this growth could lead to enhanced healthcare infrastructure and potential economic benefits through job creation and community investment.

The company's ability to maintain 100% rent collections despite economic uncertainties highlights the resilience of its tenant base and the stability of its revenue streams. This performance is likely to instill confidence among investors and stakeholders, as the company continues to execute its growth strategy. The acquisition near Kansas City and the credit facility are strategic steps that could pave the way for further expansion, potentially impacting the healthcare real estate market in Texas and other states where the company operates.

Strawberry Fields REIT remains focused on its mission to own, acquire, develop, and lease skilled nursing and other healthcare-related properties. With a strong balance sheet and a clear growth plan, the company is well-positioned to navigate the evolving healthcare landscape and deliver value to its shareholders. For more details on the company's financial results and strategic initiatives, visit the full press release at InvestorWire.