Strawberry Fields REIT, Inc. (NYSE AMERICAN: STRW) on Thursday reported third-quarter 2026 adjusted funds from operations (AFFO) of $18.8 million, or $0.34 per share, up from $18.1 million, or $0.33 per share, in the prior-year period. Rental income rose to $40 million from $39.7 million, and the company collected 100% of contractual rents. The results, detailed in a full press release, underscore the REIT’s steady operational performance even as it reported a net loss of $14.8 million, compared with net income of $8.9 million a year earlier.
The swing to a loss primarily reflects a $24.6 million foreign currency transaction loss associated with bond retirements. Funds from operations (FFO) were negative $3.6 million, compared with positive $20.7 million in the prior-year quarter. For the first nine months of 2026, AFFO increased to $55.9 million from $53.4 million in the comparable 2025 period.
Why this matters: Strawberry Fields REIT is a self-administered real estate investment trust focused on skilled nursing and other healthcare-related properties. Its portfolio includes 145 healthcare facilities with more than 15,600 beds across Arkansas, Illinois, Indiana, Kansas, Kentucky, Missouri, Ohio, Oklahoma, Tennessee and Texas. The 145 facilities comprise 131 skilled nursing facilities, 10 assisted living facilities, three hospitals and a medical office building. The company’s ability to maintain full rent collection and grow AFFO signals resilience in a sector that faces ongoing reimbursement and labor pressures.
During the quarter, Strawberry Fields completed a $10.4 million acquisition of a hospital campus near Kansas City, Missouri, and subsequently entered into an agreement to acquire a 99-bed skilled nursing facility in Indiana for $15 million, with closing expected before year-end. The company continues to pursue its 2026 acquisition target of $100 million to $150 million. These moves could expand the REIT’s footprint and diversify its revenue base, but also carry integration and financing risks that investors will watch.
The foreign currency loss tied to bond retirements highlights the company’s exposure to debt-related volatility, a factor that can obscure underlying operating trends. For readers and industry observers, the key takeaway is that Strawberry Fields’ core rental business remains solid, with 100% rent collection and rising AFFO, even as reported earnings were dragged down by a non-cash item. The latest news and updates relating to STRW are available in the company’s newsroom.
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