Strawberry Fields (STRW) investor relations material

Executive summary

• Operates 142 healthcare facilities across 10 states with 15,500 licensed beds, focusing on skilled nursing facilities (SNFs) under a triple-net lease structure and maintaining 100% contractual rent collection.

• Closed a $300 million corporate credit facility in Q2 2026, refinancing debt and supporting acquisitions, with $140 million in dry powder.

• Demonstrates a 22+ year performance history, is internally managed, and listed on both NYSE and Tel Aviv Stock Exchange.

• Maintains a disciplined, off-market acquisition strategy with a $225 million+ pipeline and recent acquisitions including a $10.4 million hospital campus and 9 SNFs in Missouri for $59 million.

• Benefits from strong demographic tailwinds, with the U.S. 65+ population projected to exceed 72 million by 2035, driving demand for SNFs.

Financial highlights

• Q2 2026 revenue was $40 million, up $2.2 million from Q2 2025; six-month revenue was $80 million, up $4.8 million year-over-year.

• Q2 net income was $8.9 million; six-month net income was $18.4 million ($0.33/share), up 18% year-over-year.

• Annualized base rent reached $143 million as of Q2 2026, with a 13.0% five-year CAGR (2021–2026E).

• Annualized Q2 2026 AFFO reached $73.9 million, with an 11% five-year CAGR and AFFO per share CAGR of 10.1%.

• Dividend yield stands at 4.9% with a 50.6% payout ratio, and a Q3 2026 dividend of $0.17 per share was announced.

Outlook and guidance

• Pipeline remains strong, with over $225 million in deals under consideration and expectations to close $100–$150 million in acquisitions by year-end.

• AFFO for next year projected between $81–$83 million, with top-line rental income of $155–$160 million.

• Built-in rent escalations (~2.8% annually) and disciplined capital deployment expected to drive further AFFO and portfolio growth.

• Growth expected to accelerate in 2027 as delayed deals close late in 2026.

• Ongoing refinancing of 2026 bond maturities to ladder debt maturities and maintain liquidity.