Strawberry Fields (STRW) investor relations material

Company overview and growth

• Operates as a healthcare REIT with $1.6 billion in real estate, $175 million in rent, and $75 million in free cash flow.

• Expanded from 33 to 143 buildings since 2015, focusing on skilled nursing facilities (SNFs) across 10 states, soon to be 11.

• Maintains a disciplined, conservative growth strategy, prioritizing legacy and long-term asset value.

• 92% of the portfolio consists of SNFs, with high barriers to entry and strong regulatory oversight.

• Related party leases have decreased from 100% to 45% over 12 years, with ongoing efforts to further dilute related party exposure.

Financial performance and strategy

• Delivers 17%-18% total return, with a 5.5% dividend yield and 11%-12% annual AFFO per share growth.

• AFFO per share projected to reach $1.36 by 2026, with a payout ratio of 46%-47%, reinvesting the remainder for asset growth.

• EBITDA for Q1 was $32 million, with annualized EBITDA at $128 million and net debt at 49%.

• Net debt to EBITDA is under 6x, and rent coverage exceeds 2x, supporting stable distributions and acquisitions.

• Pipeline targets $100-$150 million in annual acquisitions, typically at a 10% unlevered return.

Portfolio management and risk mitigation

• Properties are leased on triple net, 10-year leases with two five-year renewals and 3% annual escalators.

• Master lease structure used to reduce risk, grouping multiple properties under single leases.

• Diversified by state and operator, with no single tenant exceeding 25% of the portfolio.

• Debt is diversified among HUD, Israeli bonds, and other sources, with recent successful issuances despite market challenges.

• Debt maturity schedule is being optimized to avoid large single-year maturities.