Strawberry Fields REIT Expands Portfolio with $59 Million Missouri Acquisition
TL;DR
Strawberry Fields REIT's acquisition of nine skilled nursing facilities in Missouri for $59 million expands its portfolio and promises increased annual rent with 3% yearly increases.
Strawberry Fields REIT will finance the $59 million purchase of nine skilled nursing facilities through working capital and third-party lending, closing expected by July 1, 2025.
This acquisition by Strawberry Fields REIT enhances healthcare infrastructure in Missouri, ensuring better care for residents through expanded and improved skilled nursing facilities.
Strawberry Fields REIT is set to add 686 licensed beds across Missouri, marking a significant expansion in its healthcare real estate portfolio.
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Strawberry Fields REIT, Inc. (NYSE AMERICAN: STRW) has announced a significant expansion of its portfolio through the acquisition of nine skilled nursing facilities in Missouri, totaling 686 licensed beds, for $59 million. This strategic acquisition, finalized on May 22, 2025, is set to enhance the company's footprint in the healthcare real estate sector, particularly in the Midwest region.
The transaction is structured to include eight facilities leased to the Tide Group under a new 10-year master lease, generating $5.5 million in annual rent with a 3% yearly increase. The remaining facility will be leased to a Reliant Care Group affiliate under a 15-year master lease, adding $0.6 million annually to the company's revenue, also subject to a 3% annual escalation. Strawberry Fields REIT anticipates completing the acquisition by July 1, 2025, though the timeline remains subject to change.
This acquisition underscores Strawberry Fields REIT's commitment to growing its portfolio of healthcare-related properties, a sector that continues to see robust demand due to an aging population and increasing healthcare needs. The deal not only diversifies the company's asset base but also secures long-term, stable revenue streams through extended lease agreements with established healthcare operators.
Curated from InvestorBrandNetwork (IBN)
