Strawberry Fields (STRW) Q4 2024 earnings summary

Executive summary

• Portfolio expanded to 130 healthcare facilities across 11 states, with beds increasing from 12,449 to 14,540, and a tenant base growing from 10 to 15 operators.

• Achieved 100% collection of contractual rents in 2024, with a focus on disciplined acquisitions and stable cash flows.

• Demonstrated strong growth in Adjusted EBITDA (8.2% CAGR) and Adjusted FFO (12.6% CAGR) from 2019 to 2024.

• Admitted to the Russell Global REIT Index and completed first underwritten public offering, raising $35 million.

• Extended two Indiana Master Leases (41 facilities) through 2034 and entered new markets in Missouri and Kansas.

Financial highlights

• Revenue increased by $17.3 million (17.3%) year-over-year, with rental revenues reaching $117.1 million.

• Net income rose to $26.5 million, up from $20.2 million year-over-year.

• Adjusted AFFO reached $55.8 million and adjusted EBITDA $90.6 million, with respective CAGR of 12.6% and 8.2%.

• Dividend increased to $0.14 per share, with a 5.3% yield and 49.5% AFFO payout ratio.

• Total assets grew to $787.6 million, with liabilities at $704.0 million.

Outlook and guidance

• Base rents expected to reach $130 million in 2025, with AFFO projected at $75 million and per share guidance of $1.20.

• Targeting $150 million in acquisitions for 2025, with $80–90 million already lined up and a pipeline exceeding $350 million.

• Management expects continued growth in existing and new states, supported by strong deal flow and disciplined acquisition strategy.

• Leverage expected to remain between 45% and 55%, with a preference for the lower end.

• Announced Q1 2025 dividend of $0.14 per share, payable March 31, 2025.