Strawberry Fields (STRW) Q2 2025 earnings summary

Executive summary

• Owns and leases 141 healthcare facilities across 10 states, specializing in skilled nursing, long-term acute care, and assisted living, with 15,418+ licensed beds.

• Achieved 100% rent collection for Q2 2025, reflecting strong tenant performance and portfolio stability.

• Completed significant acquisitions in Texas, Missouri, Oklahoma, and Kansas, expanding the portfolio and increasing rental income.

• Issued $90 million in unsecured bonds on the Tel Aviv Stock Exchange, using proceeds to pay down higher-cost debt and fund acquisitions.

• Increased quarterly dividend from $0.14 to $0.16 per share, a 14% rise, while maintaining a payout ratio below 50%.

Financial highlights

• Total assets reached $897 million, up 41.1% year-over-year, driven by acquisitions and bond proceeds.

• Rental revenues for the six months ended June 30, 2025, were $75.2 million, up 32% year-over-year; Q2 2025 rental income was $37.9 million, up from $29.2 million.

• Net income for Q2 2025 was $8.7 million (EPS $0.16), up from $7 million (EPS $0.14) in Q2 2024; six-month net income was $15.7 million, up 20% year-over-year.

• Q2 2025 FFO was $20.0 million (vs. $15.2 million); AFFO was $18.9 million (vs. $14.3 million); six-month FFO was $38.2 million; AFFO was $35.2 million.

• Projected 2025 AFFO is $73.5 million ($1.27/share), up from $1.11/share in 2024; projected adjusted EBITDA is $125.4 million ($2.21/share), up from $1.80/share in 2024.

Outlook and guidance

• AFFO and EBITDA are projected to continue double-digit growth, with a five-year CAGR of 13.6% and 13.5% respectively.

• Acquisition pipeline exceeds $300 million, focused on current states with potential selective expansion.

• Organic AFFO growth targeted at 8.4% with a targeted acquisition ROE of 15%.

• Sufficient liquidity is expected to meet ongoing obligations and REIT distribution requirements.

• Demand for healthcare facilities expected to rise due to aging U.S. population and demographic trends.