Strawberry Fields (STRW) Q1 2025 earnings summary

Executive summary

• Achieved 100% rent collection in Q1 2025 and expanded to 132 healthcare facilities across 11 states, nearing 15,000 beds and $1.4 billion in asset market value.

• Demonstrated strong growth in Adjusted EBITDA (12.2% CAGR) and Adjusted FFO (13.8% CAGR) from 2019 through Q1 2025, with stable cash flows and a March 2025 annualized dividend yield of 4.7%.

• Completed $40 million in acquisitions YTD, including seven facilities in Kansas and Oklahoma for $29 million, with a robust pipeline targeting $100–$200 million for the year.

• Maintained a disciplined acquisition strategy, focusing on master leases, minimum 10% cap rate, and thorough tenant vetting.

• Most debt is long-term, fixed-rate, and HUD-guaranteed, supporting financial stability.

Financial highlights

• Q1 2025 revenue was $37.3 million, up 34.1% from Q1 2024; net income was $7.0 million, up from $6.0 million year-over-year.

• AFFO for Q1 2025 was $16.8 million, a 28% increase year-over-year; adjusted EBITDA was $30.4 million, up 42%.

• FFO grew to $18.3 million from $14.1 million year-over-year.

• Total assets reached $834.8 million at Q1 2025, up from $787.6 million at year-end 2024.

• Dividend yield as of March 31, 2025, was 4.7%, with an AFFO payout ratio of 46.2%.

Outlook and guidance

• Projected full-year 2025 AFFO of $67.3 million (20% year-over-year growth) and adjusted EBITDA of $128.8 million, based on annualized Q1 results and excluding future acquisitions.

• AFFO CAGR expected at 13.8%; adjusted EBITDA CAGR at 12.2%.

• Organic AFFO growth targeted at 8.1% for 2025, with retained cash flow estimated at $36.1 million to support acquisitions.

• Confident in meeting acquisition targets within current states and master leases.

• Management expects to maintain steady or strong earnings, citing disciplined acquisitions and tenant selection.