Strawberry Fields (STRW) Q3 2025 earnings summary

Executive summary

• Owns and leases 142 healthcare facilities across 10 states, specializing in skilled nursing, assisted living, and long-term acute care hospitals, with 15,542 licensed beds.

• Achieved 100% contractual rent collection in Q3 2025, reflecting strong tenant performance.

• Completed multiple acquisitions in Missouri, Oklahoma, and Texas, including nine skilled nursing facilities in Missouri ($59M), an Oklahoma facility ($4.25M), a Missouri facility ($5.3M), and a Texas facility ($11.5M), all funded with working capital.

• Demonstrated strong growth in Adjusted EBITDA (13.6% CAGR) and AFFO (13.3% CAGR) from 2020 to projected 2025, with AFFO CAGR above 13%.

• Increased quarterly dividend to $0.16 per share, a 14% rise over previous quarters, with a 5.2% yield and low payout ratio.

Financial highlights

• Total assets reached $880.6M as of September 30, 2025, up 33.1% year-over-year, driven by acquisitions and re-tenanting.

• Rental revenues for the nine months ended September 30, 2025, were $114.9M, up 33% year-over-year; Q3 rental revenues were $39.7M, up 35% from Q3 2024.

• Net income for the nine months was $24.5M, up 23% year-over-year; Q3 net income was $8.9M, up from $6.9M in Q3 2024.

• Q3 2025 annualized Adjusted FFO: $72.7M; 2025 forecasted AFFO/share: $1.28; 2025 forecasted AEBITDA/share: $2.27.

• Cash and cash equivalents and restricted cash totaled $55.9M at quarter-end.

Outlook and guidance

• Acquisition pipeline exceeds $250M, with expectations to spend $150M–$200M in 2026 and continued portfolio growth through acquisitions and diversification.

• AFFO per share growth rate of 11.3% over five years, targeting continued double-digit returns and organic AFFO growth of 8%.

• Sufficient liquidity and access to capital markets to fund future acquisitions and meet debt obligations.

• Dividend expected to continue rising annually, with payout ratio maintained below 50%.

• No material tenant rent delinquencies or lease amendments anticipated.