Strawberry Fields REIT (NYSE American: STRW) announced its second-quarter 2026 financial results, revealing a period of solid performance and strategic financial maneuvering. The company reported net income of $8.9 million, with funds from operations (FFO) reaching $20.1 million, or $0.36 per share, and adjusted funds from operations (AFFO) totaling $18.1 million, or $0.32 per share. Rental income saw a notable increase to $40.0 million from $37.9 million in the same quarter last year, underscoring the company's consistent revenue growth.
A significant development during the quarter was the closing of a new corporate credit facility, which provides up to $300 million in borrowing capacity. This facility comprises a $100 million term loan and a $200 million revolving credit facility, strategically positioned to refinance existing debt and support future acquisitions. Chairman and CEO Moishe Gubin commented that this new credit facility aligns Strawberry Fields more closely with its peers while providing additional flexibility to pursue acquisition opportunities. This move is expected to enhance the company's financial agility and growth prospects.
In addition to the financial milestones, Strawberry Fields 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 is part of the company's broader strategy to expand its healthcare property portfolio and generate stable, long-term income.
For the first six months of 2026, the company reported FFO of $41.0 million, or $0.74 per share, and net income of $18.4 million. Rental income for the period reached $80.0 million, reflecting robust operational performance. The company also maintained a 100% rent collection rate during the quarter, highlighting the stability of its tenant base and the resilience of its business model.
Strawberry Fields REIT is a self-administered real estate investment trust focused on the ownership, acquisition, development, and leasing of skilled nursing and other healthcare-related properties. The company's portfolio currently includes 142 healthcare facilities with an aggregate of 15,500 beds, spread across Arkansas, Illinois, Indiana, Kansas, Kentucky, Missouri, Ohio, Oklahoma, Tennessee, and Texas. These facilities comprise 130 skilled nursing facilities, 10 assisted living facilities, and two long-term acute care hospitals.
The successful quarter and strategic initiatives position Strawberry Fields for continued growth in the healthcare real estate sector. The new credit facility and planned acquisition are likely to bolster the company's ability to capitalize on market opportunities and enhance shareholder value. For more details, the full press release can be accessed at https://ibn.fm/5tFFk, and the latest news and updates are available in the company's newsroom at https://ibn.fm/STRW.
