Strawberry Fields REIT Inc. (NYSE American: STRW) Chairman and CEO Moishe Gubin detailed the company's disciplined expansion strategy and long-term approach to healthcare real estate during his presentation at NobleCon21, the annual growth event hosted by Noble Capital Markets. The self-administered real estate investment trust, which specializes in healthcare-related properties, emphasized how its conservative acquisition philosophy, predictable cash flow, and operational stability form the core of its investment strategy.
The company now holds long-term leasehold interests in 142 healthcare facilities with more than 15,500 licensed beds across 10 states, building what Gubin described as one of the larger skilled-nursing-focused real estate portfolios in the United States (https://ibn.fm/62vC3). Strawberry Fields concentrates on acquiring and leasing skilled nursing and other healthcare-related properties but does not develop or operate the facilities it owns. Instead, the REIT enters long-term triple-net leases with skilled operators, a structure that places operating responsibilities on the tenant while providing the company with stable, predictable rental income.
Gubin emphasized that each property acquisition is evaluated from an operator's perspective despite the company's role as a REIT, reflecting a conservative approach to portfolio growth. This disciplined strategy has resulted in consistent performance, with the company collecting 100% of rents and maintaining leases that include 3% annual increases. Third-quarter 2025 results demonstrated continued momentum, with rental income reaching $39.7 million and adjusted funds from operations (AFFO) totaling $18.1 million.
The company maintains a payout ratio below 50%, allowing retained cash flow to fund acquisitions and support long-term AFFO growth. This financial discipline enables Strawberry Fields to expand its portfolio while maintaining stability for investors. The REIT's approach matters because it demonstrates how specialized real estate investment trusts can provide steady returns in the healthcare sector while managing risk through conservative underwriting and long-term lease structures.
For investors, the company's strategy offers exposure to the essential healthcare real estate market with reduced operational risk due to the triple-net lease structure. The consistent rent collection and built-in annual increases provide predictable income streams, while the below-50% payout ratio suggests sustainable dividend payments and growth potential. The healthcare real estate sector remains important as demographic trends, including an aging population, continue to drive demand for skilled nursing facilities and related healthcare properties.
Strawberry Fields' disciplined approach to portfolio building and financial management provides a model for how REITs can navigate the complex healthcare property market while delivering shareholder value. The company's presentation at NobleCon21 highlighted how methodical expansion and conservative financial policies can create sustainable growth in a sector that requires both real estate expertise and understanding of healthcare operations.
