Strawberry Fields REIT Inc (STRW) Q2 2026 Earnings Report

The call emphasized several clear operational strengths — 100% rent collection, a $300M credit facility, revenue growth (+6.4% YTD), strong AFFO and adjusted EBITDA CAGR metrics, an active acquisition pipeline (~$225M+) and conservative dividend/payout discipline. Offsetting these positives were timing and execution challenges on deal closings, higher near-term G&A/one-time closing costs, FX translation pressure from shekel-denominated debt, and a persistent valuation discount versus peers. Management expects pipeline activity to accelerate into Q4 and reiterated plans to close meaningful deals and continue accretive growth. Overall, the positives (stable cash collection, financing flexibility, measurable AFFO/EBITDA growth, and a sizeable pipeline) outweigh the transitory and execution-related negatives.

Management reiterated steady operational and financial guidance: the company collected 100% of contractual rents, closed a $300M corporate credit facility ($100M term/$200M revolver) at SOFR + 2.75%, and expects to close a $10.4M hospital campus in Q3 that adds $1.04M of annual base rent with 3% annual increases; the Board approved a Q3 dividend of $0.17/share (payable Sept 30, record Sept 16), bringing YTD dividends to $0.70/share (4.9% yield) with an AFFO payout of 50.6%. Management noted a pipeline in excess of $225M and reiterated a target of $100–150M of acquisitions this year (roughly $130M potentially by year-end), while reporting 1H revenue of $80M (up $4.8M, +6.4%), Q2 revenue of $40M, 1H net income $18.4M ($0.33/share), Q2 net income $8.9M, 2026 AFFO of $73.9M (11% CAGR) with projected AFFO/share growth of 10.1%, adjusted EBITDA $135.7M (50% CAGR), lease yield 14.4%, portfolio EBITDARM coverage 2.17, remaining average lease term 6.9 years, net debt/adjusted EBITDA 5.7, net debt-to-net-asset ~49.8%, total assets $878.5M, and a portfolio of 142 facilities (15,496 licensed beds) with annualized base rents of $143M (implying >$1.4B at a 10% cap).