Strawberry Fields REIT (NYSE AMERICAN: STRW) reported second-quarter 2026 results that highlight its operational strength and strategic growth initiatives. The company achieved 100% rent collections, reflecting the resilience 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. 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, demonstrating steady revenue growth.
A key development during the quarter was the closing of a new corporate credit facility providing up to $300 million in borrowing capacity. This includes a $100 million term loan and a $200 million revolving credit facility. The facility is intended to refinance existing debt and support future acquisitions, giving the company greater financial flexibility. Chairman and CEO Moishe Gubin noted that the new credit facility aligns Strawberry Fields more closely with its peers while providing additional flexibility to pursue acquisition opportunities.
The company also 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 underscores Strawberry Fields’ strategy of expanding its healthcare real estate portfolio in high-demand regions.
For the first six months of 2026, the company reported FFO of $41.0 million, or $0.74 per share, up from the prior year. Net income increased to $18.4 million, and rental income reached $80.0 million. These results reflect the company’s ability to generate consistent cash flows and grow its revenue base.
The announcement of the credit facility and the upcoming acquisition are significant because they position Strawberry Fields to capitalize on acquisition opportunities in the healthcare real estate sector. The company’s portfolio currently includes 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 comprise 130 skilled nursing facilities, 10 assisted living facilities, and two long-term acute care hospitals.
By securing a larger credit facility and continuing to acquire properties, Strawberry Fields is strengthening its balance sheet and expanding its footprint. This move is likely to enhance shareholder value over the long term as the demand for healthcare services continues to rise.
For more information, visit the company’s newsroom at https://ibn.fm/STRW or the full press release at https://ibn.fm/5tFFk.
