Strawberry Fields REIT, Inc. (NYSE: STRW) is a privately managed real estate investment trust with a market capitalization of $1.05 billion. The South Bend, Indiana-based company specializes in the ownership, purchase and leasing of skilled nursing and health care related properties.
Strong Income and Profitability Expansion
For the fiscal year ended December 31, 2025, Strawberry Fields reported rental income of $155.0 million, up 32.4% from $117.1 million in 2024. Net income increased to $33.3 million from $26.5 million, with 100% of contract tax collected.
Funds from operations (FFO) reached $79.6 million, or $1.43 per share, compared to $60.2 million, or $1.15 per share in 2024. Adjusted funds from operations (AFFO) were $72.5 million, or $1.30 per share, compared to $55.8 million, or $1.07 per share last year. Adjusted EBITDA increased to $125.3 million from $90.6 million.
Theories of Leadership: A Managerial Perspective
Chairman and CEO Moishe Gubin described 2025 as the company’s strongest year since its inception. He highlighted the consistent FFO growth of over 13% and the recognition of investors in the luxury real estate sector. Management highlighted ongoing efforts to close the valuation gap relative to peers while maintaining strategic sourcing strategies.
Portfolio strengths: Skilled Nursing at the Core
The company’s assets include skilled nursing facilities (SNFs), 10 assisted living facilities (ALFs), and two long-term acute care hospitals (LTACHs). SNFs represent 91.6% of the portfolio, a higher concentration than peers. Average facility size is 109 beds, with SNF occupancy at 76.2% as of November 2025.
M&A Activity and Geographic Footprint
Total real estate investment by 2025 reached $112.1 million. Key acquisitions and leases include:
- In Kentucky: New leases for 10 properties, generating $23.3 million in annual rent.
- In Missouri: Nine skilled nursing facilities for $59.0 million.
- Kansas: Six facilities for $24.0 million.
- Oklahoma: The two facilities cost $7.25 million.
- Texas: One facility near Houston is $11.5 million.
The portfolio now includes 143 health centers in 10 states, with a total of 15,600 beds. The company is currently identifying a $250 million acquisition pipeline.
Financial Health: Credit Ratings and Credit Management
Total debt was $747.9 million as of December 31, 2025. In June 2025, the company issued NIS 312.0 million (approximately $89.5 million) in Series B unsecured bonds at a fixed interest rate of 6.70%. Long-term debt guaranteed by HUD totaled $254.1 million, with an average interest rate of 3.91%. Total debt to adjusted EBITDA remained at 5.7x, showing a positive improvement.
State Dependent Income and Capital Considerations
Workers rely heavily on federal reimbursement, with a mix of 78% Medicaid payers and 5% Medicare. Demand is fueled by the aging US population, which is projected to exceed 72 million people age 65 and older by 2030. Macroeconomic risks include interest rate fluctuations, regulatory changes, and potential volatility in real estate investments.
Peer Comparison: Competitive Position
The company reported an AFFO payout ratio of 46.7%, below peers such as Omega Healthcare Investors, Sabra Health Care REIT, and CareTrust REIT, whose payout ratios range from 70.4% to 88.2%. The trailing twelve-month rental EBITDARM is 2.07x, indicating strong rental coverage relative to liabilities.
Forward Outlook and analyst work
Management has ensured a continued focus on profitability through 2026, while maintaining ethical investment practices. No specific number guide for 2026 is provided. No analyst upgrades, downgrades, or price-target changes were reported.
2025 In Review
Strawberry Fields REIT delivered strong growth for the full year 2025, driven by strategic acquisitions, new lease offerings, and consistent FFO growth. Profitability and cash flow have improved year over year, while profitability remains manageable. The expansion of the portfolio and the diversification of areas strengthen the position of the company as a focused investor in the nursing center, by showing the management continued profitable growth in 2026.
