Strawberry Fields REIT (NYSE AMERICAN: STRW) has announced its second-quarter 2026 financial results, revealing a period of solid performance and strategic moves aimed at bolstering its growth trajectory. 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 increased to $40.0 million, up from $37.9 million in the same period last year, and the company achieved 100% rent collections during the quarter.
A key development in 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, intended to refinance existing debt and support future acquisitions. Chairman and CEO Moishe Gubin noted that this new credit facility aligns Strawberry Fields more closely with its peers while providing additional flexibility to pursue acquisition opportunities.
In addition to the credit facility, the company 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 property portfolio, which currently includes 142 facilities with 15,500 beds across ten states.
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 consistent growth. These results demonstrate the company's ability to maintain strong operational performance while strategically positioning itself for future expansion.
The new credit facility and acquisition plans are significant for investors and the healthcare real estate sector. By securing a larger credit line, Strawberry Fields enhances its liquidity and financial flexibility, enabling it to capitalize on acquisition opportunities in a competitive market. The hospital campus acquisition adds a new asset to its portfolio, which is expected to contribute stable, escalating rental income, thereby supporting long-term cash flow growth.
Strawberry Fields REIT is a self-administered real estate investment trust specializing in skilled nursing and other healthcare-related properties. Its portfolio includes 130 skilled nursing facilities, 10 assisted living facilities, and two long-term acute care hospitals, spread across Arkansas, Illinois, Indiana, Kansas, Kentucky, Missouri, Ohio, Oklahoma, Tennessee, and Texas.
For more details on the press release, visit https://ibn.fm/5tFFk. For the latest news and updates on the company, see the newsroom at https://ibn.fm/STRW.
