Strawberry Fields REIT Inc(IL:STRW)
ILA 4,234.000.00 (0.00%)
IL:STRW
Strawberry Fields REIT Inc earnings date
ILA 4,234.00
At close:0.00 (0.00%)
Strawberry Fields REIT Inc (STRW) Q3 2026 Earnings Report
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IL:STRW Q3 2026 EPS Results
- Actual EPS
- -ILA 82.76
- Consensus EPS
- ILA 62.70
- Beat/Miss
- Missed by -ILA 145.46
- One Year Ago EPS
- ILA 50.93
IL:STRW Q3 2026 Revenue Results
- Actual Revenue
- ILA 12.73B
- Expected Revenue
- ILA 12.87B
- Beat/Miss
- Missed by -ILA 137.19M
- YoY Revenue Growth
- +0.70%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 11/05/2026
- Time
- After Close
- Conference Call
- Thursday, November 5, 2026
IL:STRW Upcoming Earnings
Strawberry Fields REIT Inc's next earnings date is estimated for March 11, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
IL:STRW Q3 2026 Earnings Call
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Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was broadly optimistic. Management emphasized 100% rent collection, growing AFFO and adjusted EBITDA, a substantial acquisition pipeline, disciplined acquisition yields, stable dividend coverage and leverage expected to remain within policy. Reported net income was materially affected by a $24.6 million foreign currency transaction loss, while the company also faces regulatory risks, a below-peer valuation and some remaining acquisition-closing uncertainty. Management characterized the currency loss as a one-time event and remained confident in continued portfolio and per-share growth.
Company Guidance
Management expects to close $123 million of deals before year-end, bringing 2026 acquisitions to over $130 million, within the target acquisition for the year of $100 million to $150 million; the $15 million Angola, Indiana acquisition is expected to close before year-end, and the company expects to remain below 50% leverage after closing, versus its policy of between 45% and 55%. Q4 2026 dividend guidance is $0.17 a share, Q4 G&A guidance is $2 million, and 2026 projected AFFO is $74.5 million, with 2026 projected AFFO per share growth of 10.1% and 2026 adjusted EBITDA of $129.5 million; management said 2027 acquisitions are expected to be higher than $150 million, with maybe another $100 million sitting in HUD debt by the end of '27, and the potential first-quarter '27 portfolio should bring assets over $2 billion based on market value.
- 100% Rent CollectionThe company collected 100% of its contractual rents during the quarter, and portfolio rent collection remained at 100%.
- Completed Missouri Hospital Campus AcquisitionOn September 9, 2026, the company completed the acquisition of a Missouri hospital campus comprising a licensed 60-bed hospital, a 99-bed skilled nursing facility and ancillary medical office buildings for $10.4 million, funded from the balance sheet. The assets were added to an existing master lease with initial base rents of $1.04 million and 3% annual rent increases.
- Indiana Skilled Nursing Acquisition Under AgreementSubsequent to quarter end, the company entered into a purchase agreement for a 99-bed skilled nursing facility in Angola, Indiana, for $15 million. The company expects to fund $14 million from its balance sheet, with the seller taking $1 million in OP units. Initial base rents will be $1.5 million with 3% annual increases, and the acquisition is expected to close before year-end.
- Substantial Acquisition PipelineThe acquisition pipeline currently totals $400 million, with approximately $123 million expected to close before year-end. If completed, the company expects to close more than $130 million of acquisitions in 2026, which would be in the middle of its annual target range of $100 million to $150 million.
- Dividend MaintainedThe Board approved a fourth-quarter 2026 dividend of $0.17 per share, payable December 30 to shareholders of record on December 16. Management said the dividend would remain flat for the quarter and described the company as providing a consistent return to shareholders.
- Revenue Growth and Higher Underlying EarningsNine-month 2026 revenue was $120 million, up $5.1 million or 4.5% from the comparable 2025 period, driven by the timing of integration of properties acquired in 2025. Excluding the $24.6 million foreign currency transaction loss, year-to-date net income would have been approximately $28.3 million, an increase of $3.7 million or 15.2% year over year.
- Quarterly Earnings Growth Excluding Currency LossThird-quarter 2026 revenue was $40 million, up $0.3 million from the third quarter of 2025, while operating expenses were $0.6 million lower. Excluding the $24.6 million foreign currency transaction loss, third-quarter net income would have been approximately $9.8 million, an increase of approximately $1 million or 11% year over year.
- AFFO and Adjusted EBITDA GrowthProjected 2026 AFFO is $74.5 million, representing an 11.1% compound annual growth rate, while projected AFFO per share growth is 10.1%. Projected 2026 adjusted EBITDA is $129.5 million, representing a 14% compound annual growth rate. Nine-month AFFO was $55.879 million, $2.5 million higher than the comparable 2025 period, and adjusted EBITDA was $3.5 million higher year over year.
- Strong Lease and Portfolio MetricsThe portfolio includes 145 facilities in 10 states with 15,655 licensed beds and $1.1 billion of total asset value at acquisition. The weighted average lease term is 6.8 years, rent coverage is 2.24x, net debt to adjusted EBITDA is 5.4x, lease yield is 14.3%, and net debt to net asset value is 48%.
- Solid Dividend CoverageThe $0.17 per-share dividend represented a 5.3% yield and an AFFO payout ratio of 50.2%. Management said the payout ratio remained around 50% and was below that of peers.
- Refinancing Reduced Ongoing Interest CostManagement said the three shekel-denominated bond issuances were redeemed and replaced with five-year money at approximately SOFR plus 2.75%, compared with an approximately 8.5% rate available in Israel at the time. Management said this structure was about 2 percentage points cheaper than the alternative fixed-rate financing and that the $24 million currency loss was a one-time accounting event already accumulated in retained earnings.
- Leverage Expected to Remain Within PolicyManagement expects leverage to remain below 50% of the portfolio after the planned acquisitions close, compared with the stated policy range of 45% to 55%. Management also said the company could be closer to 45% leverage using an 8.75% capitalization rate.
- Nondilutive Acquisition FundingManagement expects to fund the planned year-end acquisitions primarily with existing cash, proceeds from a planned property sale and approximately $43 million of debt on one transaction, without raising equity for the current acquisition program. Management said this would avoid dilution while supporting per-share growth.
- Arkansas Disposition Provides Acquisition CapitalA tenant is expected to exercise an option to purchase certain Arkansas facilities for $90 million. The properties have approximately $6 million of debt, resulting in expected net cash proceeds of $83 million. Management said approximately $60 million represents the true capital gain and that the proceeds would be used through a 1031 exchange to fund new acquisitions.
- Expected Net Rent Increase From Portfolio ChangesManagement stated that after the Arkansas sale and the planned acquisitions, the company expects to have a higher rent number going forward, estimating approximately $3 million to $4 million of additional rent after considering the transactions.
- Disciplined Acquisition StrategyManagement said the company continues to target approximately a 10% cash-on-cash return on day one before leverage and that current acquisitions are being completed at 10% capitalization rates. Management expects approximately $130 million of acquisitions to translate into about $13 million of rent increase when fully reflected next year.
- Geographic and Operator ExpansionThe company expects to enter Florida and another previously unannounced state, while continuing to expand in Indiana and Texas. Management said the current transactions are with third-party operators and that the Florida transaction could expand from one facility to a master lease covering seven facilities within the next 18 months.
- Potential Future HUD FinancingThe company continues to work toward placing additional buildings into HUD financing. Management said the company may have another $100 million of HUD debt by the end of 2027, subject to resolving a current throughput issue.
- Stable Corporate Expense OutlookManagement expects fourth-quarter G&A to be approximately $2 million and does not expect another material one-time event like the financing costs recorded in the second quarter. Management said current asset managers can absorb the planned acquisitions and estimated future labor additions at approximately $250,000 to $300,000 per year.
- Potential Medicaid Rate Increase in Target MarketManagement said one prospective acquisition is in a state where officials have announced an increase in Medicaid rates for nursing homes, which management described as a potential financial benefit for the portfolio.
IL:STRW Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Mar 11, 2027 | 2026 (Q4) | 64.61- | 47.74 | ― | ― |
| Nov 05, 2026 | 2026 (Q3) | 62.70-82.76 | 50.93 | -262.50% (-133.68) | |
| Aug 06, 2026 | 2026 (Q2) | 52.5250.93 | 47.74 | 6.67% (+3.18) | |
| May 08, 2026 | 2026 (Q1) | 48.3854.11 | 41.38 | 30.77% (+12.73) | |
| Feb 19, 2026 | 2025 (Q4) | 45.2047.74 | 47.74 | 0.00% (+0.00) | |
| Nov 06, 2025 | 2025 (Q3) | 33.4250.93 | 44.56 | 14.29% (+6.37) | |
| Aug 08, 2025 | 2025 (Q2) | 21.6447.74 | ― | ― | |
| May 09, 2025 | 2025 (Q1) | 31.8341.38 | 36.6 | 13.04% (+4.77) | |
| Feb 27, 2025 | 2024 (Q4) | 48.7047.74 | 35.65 | 33.93% (+12.10) | |
| Nov 08, 2024 | 2024 (Q3) | ―44.56 | 29.28 | 52.17% (+15.28) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat Missed
