Strawberry Fields (STRW) Q4 2025 earnings summary

Executive summary

• Achieved 100% rent collection for 2025, reflecting a disciplined investment approach and marking the strongest year since inception with significant AFFO, EBITDA, and base rent growth.

• Owns and leases 143 healthcare facilities across 10 states, specializing in skilled nursing, assisted living, and long-term acute care hospitals, maintaining a pure-play skilled nursing facility REIT strategy.

• Demonstrated strong growth in Adjusted EBITDA (13.5% CAGR) and Adjusted FFO (13.3% CAGR) from 2020 to 2025.

• 2025 annualized dividend yield of 4.9% with a low payout ratio of 46.7%, outperforming peers.

• Majority of debt is fixed-rate, long-term HUD-guaranteed with a weighted average interest rate of 3.91%.

Financial highlights

• Total assets reached $885 million, up 12.4% year-over-year.

• Rental revenues rose 32.4% year-over-year to $155 million, driven by acquisitions and re-tenanting.

• Net income was $33.3 million ($0.60/share), up from $26.5 million ($0.57/share) in 2024.

• Adjusted FFO was $72.5 million ($1.30/share), up from $55.8 million ($1.07/share) year-over-year; adjusted EBITDA was $125.3 million, up from $90.6 million.

• Dividend increased to $0.16/share (4.9% yield), with a 46% AFFO payout ratio.

Outlook and guidance

• Acquisition pipeline remains strong at $250 million, with management expecting continued disciplined acquisitions and growth in 2026.

• Guidance targets annual portfolio growth of ILS 100–150 million and organic AFFO growth of 8.1% for 2025.

• Expect to beat 2025 AFFO per share of $1.30 in 2026.

• Demand for healthcare facilities expected to grow due to aging U.S. population and projected Medicare spending increases through 2030.