Strawberry Fields (STRW) Q1 2026 earnings summary

Executive summary

• Owns and leases 143 healthcare facilities across 10 states, specializing in skilled nursing, assisted living, and long-term acute care hospitals, with 91.5% skilled nursing and a weighted average lease term of 7.1 years.

• Achieved 100% rent collection in Q1 2026 and maintained a disciplined acquisition strategy, with a strong $325 million pipeline.

• Net income for Q1 2026 increased 35.5% year-over-year to $9.5 million, driven by higher rental revenues from new acquisitions.

• Facilities are leased on a triple net, long-term basis, with average rent escalations of 2.8%.

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

Financial highlights

• Q1 2026 revenue was $40 million, a 7.1% increase year-over-year; net income was $9.4–$9.5 million ($0.17/share), and AFFO was $18.84 million ($0.34/share).

• FFO for Q1 2026 was $20.93 million ($0.38/share); Adjusted EBITDA projected at $128.1 million (13.5%–13.7% CAGR).

• Total assets reached $878.6 million, up 5.2% year-over-year.

• Dividend yield at 5.4% (Q1 2026 annualized); AFFO payout ratio at 47.3%, lowest among peers.

• Cash and cash equivalents plus restricted cash totaled $69.7 million as of March 31, 2026.

Outlook and guidance

• Targeting $100–$150 million in acquisitions for 2026, with most closings expected in Q3 and Q4.

• Management expects acquisition activity to increase in Q2 2026, following a disciplined approach.

• Dividend increased to $0.17/share for Q2 2026, with a payout ratio of 47%.

• The new $300 million credit facility is expected to close in Q2 2026, enhancing acquisition capacity.

• Organic AFFO growth projected at 7.9% for 2026.