Strawberry Fields REIT (NYSE AMERICAN: STRW) reported second-quarter 2026 results that underscore its operational resilience and strategic growth initiatives. The company achieved 100% rent collections, a testament to the stability of its healthcare property portfolio. Net income for the quarter reached $8.9 million, while funds from operations (FFO) totaled $20.1 million, or $0.36 per share, and adjusted funds from operations (AFFO) came in at $18.1 million, or $0.32 per share. Rental income increased to $40.0 million from $37.9 million in the same period last year, reflecting organic growth and successful asset management.
A significant development during the quarter was the closing of a new corporate credit facility providing up to $300 million in borrowing capacity, comprising a $100 million term loan and a $200 million revolving credit facility. This facility is designed to refinance existing debt and provide additional liquidity for future acquisitions. Chairman and CEO Moishe Gubin emphasized that this new credit facility aligns Strawberry Fields more closely with its peers while offering enhanced flexibility to pursue acquisition opportunities.
In line with its growth strategy, the company 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 reflects Strawberry Fields' commitment to expanding its healthcare real estate footprint in strategic locations.
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. These results demonstrate consistent performance and effective execution of the company's business model.
Strawberry Fields REIT is a self-administered real estate investment trust focused on the ownership, acquisition, development, and leasing of skilled nursing and other healthcare-related properties. The company's portfolio comprises 142 healthcare facilities with an aggregate of 15,500 beds, located across Arkansas, Illinois, Indiana, Kansas, Kentucky, Missouri, Ohio, Oklahoma, Tennessee, and Texas. The facilities include 130 skilled nursing facilities, 10 assisted living facilities, and two long-term acute care hospitals.
The announcement of the credit facility and the planned acquisition signals Strawberry Fields' proactive approach to capital management and growth. By securing substantial borrowing capacity, the company is well-positioned to capitalize on acquisition opportunities in the healthcare real estate sector, which continues to see demand driven by an aging population and the need for specialized care facilities.
Investors and industry observers will be watching how Strawberry Fields utilizes this new financial flexibility to expand its portfolio and enhance shareholder value. The company's ability to maintain 100% rent collections amid a challenging economic environment highlights the resilience of its tenant base and the quality of its properties.
For more information on Strawberry Fields REIT, visit the company's newsroom at https://ibn.fm/STRW.
