Strawberry Fields REIT Reports Strong Q3 2025 Growth with Strategic Healthcare Facility Acquisitions

By Advos

TL;DR

Strawberry Fields REIT's strategic acquisitions and increased financial metrics position investors for stronger returns and portfolio growth in the healthcare real estate sector.

Strawberry Fields REIT acquired 11 healthcare facilities totaling $68.55 million, funded with working capital, with leases featuring 3% annual rent escalations boosting rental income.

Strawberry Fields REIT's expansion of healthcare facilities ensures more communities have access to quality skilled nursing and assisted living services for vulnerable populations.

Strawberry Fields REIT now manages 11 new healthcare facilities with 890 total beds, significantly expanding their footprint in Missouri and Oklahoma healthcare markets.

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Strawberry Fields REIT Reports Strong Q3 2025 Growth with Strategic Healthcare Facility Acquisitions

Strawberry Fields REIT Inc. (NYSE American: STRW), a self-administered Real Estate Investment Trust specializing in healthcare-related properties, reported substantial growth in its third quarter 2025 financial results, highlighted by strategic acquisitions and improved financial performance across key metrics. The company's quarterly results, covering the period ending September 30, 2025, showed increases in funds from operations (FFO), adjusted funds from operations (AFFO), rental income, and net income compared to the third quarter of 2024.

The REIT's expansion strategy was evident through several significant acquisitions during the quarter. Strawberry Fields acquired nine skilled nursing facilities in Missouri for $59 million, representing a major addition to its healthcare property portfolio. These facilities contain 686 beds total, with eight facilities leased to the Tide Group and the remaining facility leased to an affiliate of Reliant Care Group, LLC. This acquisition substantially increased the company's rental revenue, boosting Tide Group's annual rents by $5.5 million and Reliant Care Group's annual rents by $0.6 million, with both leases subject to 3% annual rent increases.

Additional acquisitions further strengthened the company's position in the healthcare real estate market. Strawberry Fields acquired a skilled nursing facility with 80 licensed beds in Oklahoma for $4.25 million, generating initial annual base rents of $0.4 million and also subject to 3% annual rent increases. The company also purchased a healthcare facility in Missouri with 108 skilled nursing beds and 16 assisted living beds for $5.3 million, which was added to an existing tenant's master lease with annual base rents of $0.5 million and the same 3% annual rent escalation provision. All acquisitions were funded using the company's working capital, demonstrating strong financial management and liquidity position.

The company's leadership team discussed these results and answered analyst questions during their quarterly earnings call, providing additional context about the strategic direction and operational performance. The continued expansion in healthcare facilities comes at a time when demographic trends favor increased demand for skilled nursing and assisted living services, positioning Strawberry Fields to benefit from long-term demographic shifts. Investors can access the latest news and updates relating to STRW through the company's newsroom at https://ibn.fm/STRW.

Strawberry Fields' focus on healthcare-related properties, particularly skilled nursing facilities, represents a strategic positioning within the real estate investment trust sector. The company's ability to secure long-term leases with established healthcare operators provides stable revenue streams while the built-in rent escalators offer protection against inflation. The Q3 2025 results demonstrate the REIT's successful execution of its growth strategy through targeted acquisitions and strong financial performance, reinforcing its position in the specialized healthcare real estate market.

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Advos

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