Strawberry Fields REIT Inc. (NYSE American: STRW) reported substantial financial growth for the third quarter of 2025, driven by strategic acquisitions of healthcare properties across multiple states. The self-administered Real Estate Investment Trust specializing in healthcare-related properties announced results for the quarter ending September 30, 2025, highlighting significant expansion in its skilled nursing facility portfolio and improved financial metrics across multiple categories.
The company completed three major acquisition transactions during the quarter that substantially increased its property holdings and rental income. The largest acquisition involved nine skilled nursing facilities in Missouri purchased for $59 million, containing a total of 686 beds. Eight of these facilities were leased to the Tide Group, while the remaining facility was leased to an affiliate of Reliant Care Group, LLC. This transaction boosted Tide Group's annual rents by $5.5 million and Reliant Care Group's annual rents by $0.6 million, with both leases subject to 3% annual rent increases.
Additional acquisitions included a skilled nursing facility with 80 licensed beds in Oklahoma purchased for $4.25 million, generating initial annual base rents of $0.4 million and subject to the same 3% annual rent escalation. The company also acquired a Missouri healthcare facility with 108 skilled nursing beds and 16 assisted living beds for $5.3 million, which was added to an existing tenant's master lease with annual base rents of $0.5 million and 3% annual increases. Strawberry Fields funded all acquisitions using working capital, demonstrating strong financial management and liquidity.
The financial results showed increases in funds from operations (FFO), adjusted funds from operations (AFFO), rental income, and net income compared to the same quarter in 2024. The company held a conference call where leadership team members discussed these results and answered questions from analysts and other participants. The consistent pattern of 3% annual rent increases across new acquisitions provides predictable revenue growth and protects against inflation, making the REIT's income stream more stable and valuable to investors.
This expansion matters because it demonstrates the ongoing consolidation in the healthcare real estate sector and the growing investor interest in specialized healthcare properties. The acquisitions strengthen Strawberry Fields' market position in the skilled nursing facility segment, which continues to see strong demand due to aging population demographics. The company's focus on properties leased to established healthcare operators like Tide Group and Reliant Care Group provides additional security through experienced management of the facilities.
For investors, the growth in FFO and AFFO indicates improved operational performance and potential for sustained dividend payments, while the strategic acquisitions suggest careful portfolio management and growth planning. The healthcare real estate sector remains attractive due to its recession-resistant characteristics and demographic tailwinds, making Strawberry Fields' performance relevant to both current shareholders and potential investors in healthcare REITs. Additional information about the company is available through its newsroom at https://ibn.fm/STRW.
