Strawberry Fields REIT Inc ((STRW)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Strawberry Fields REIT Inc. recently held its Q3 2025 earnings call, which was marked by a positive sentiment overall. The company reported strong asset and revenue growth, full rent collection, and a dividend increase, although it acknowledged challenges such as higher expenses, foreign currency losses, and specific market laggards.
100% Rent Collection
During Q3 2025, Strawberry Fields REIT achieved a remarkable feat by collecting 100% of its contractual rents. This accomplishment underscores the company’s robust operational performance and its ability to maintain steady cash flow.
Significant Asset Growth
Strawberry Fields REIT reported a significant increase in total assets, reaching $880 million, which represents a 33.1% growth compared to Q3 2024. This growth was primarily driven by the company’s strategic acquisitions and successful retenanting efforts.
Revenue and Net Income Growth
The company experienced substantial growth in both revenue and net income. Year-to-date revenue was $114.9 million, reflecting an increase of $28.3 million from the previous year. Net income also rose to $24.5 million, up from $19.9 million last year.
AFFO and EBITDA Increase
Strawberry Fields REIT projected an increase in Adjusted Funds From Operations (AFFO) for 2025, reaching $72.7 million, a 28.2% rise. Additionally, the company expects its Adjusted EBITDA to hit $126.1 million, marking a 38.9% year-over-year increase.
Dividend Increase
The Board of Directors approved a dividend increase to $0.16 per share, representing a 14% rise over previous quarters. This decision highlights the company’s commitment to returning value to shareholders.
Foreign Currency Exchange Losses
Despite the positive financial performance, the company faced some foreign currency exchange losses, which impacted its other comprehensive income.
Higher Expenses
Strawberry Fields REIT reported higher expenses due to increased depreciation, amortization, and interest from new assets, which slightly offset some of the financial gains.
Challenges in Illinois
The company identified Illinois as a laggard from a reimbursement perspective, which continues to affect its performance in that market.
Interest on Series D Bonds
The high cost of debt from Series D bonds, maturing in September 2026, remains a concern for Strawberry Fields REIT. The company is exploring refinancing options to mitigate this issue.
Forward-Looking Guidance
During the earnings call, Strawberry Fields REIT provided forward-looking guidance, emphasizing its disciplined acquisition strategy and commitment to long-term shareholder value. The company announced several acquisitions, including nine skilled nursing facilities in Missouri for $59 million, a skilled nursing facility in Oklahoma for $4.25 million, and a healthcare facility in Missouri for $5.3 million. The projected AFFO for 2025 is $72.7 million, and Adjusted EBITDA is expected to reach $126.1 million. The company maintains a balanced capital structure with a net debt-to-asset ratio of 49.2%.
In conclusion, Strawberry Fields REIT Inc.’s Q3 2025 earnings call conveyed a positive outlook with strong asset and revenue growth, full rent collection, and a dividend increase. While challenges such as higher expenses and foreign currency losses persist, the company’s strategic acquisitions and commitment to shareholder value position it well for future success.