Strawberry Fields REIT (NYSE AMERICAN: STRW) reported second-quarter 2026 results that underscore its financial stability and growth trajectory. The company achieved 100% rent collections, with net income of $8.9 million, funds from operations (FFO) of $20.1 million, or $0.36 per share, and adjusted funds from operations (AFFO) of $18.1 million, or $0.32 per share. Rental income increased to $40.0 million from $37.9 million in the same period last year, reflecting the company's ongoing expansion and effective asset management.
During the quarter, Strawberry Fields closed a new corporate credit facility providing up to $300 million in borrowing capacity, comprising a $100 million term loan and a $200 million revolving credit facility. This strategic move refinances existing debt and provides additional liquidity to support future acquisitions. Chairman and CEO Moishe Gubin noted that the new facility aligns the company more closely with its peers while offering greater flexibility to pursue growth opportunities.
The company also announced plans to acquire a hospital campus near Kansas City, Missouri, for $10.4 million in the third quarter. This property will be added to an existing master lease, expected to generate $1.04 million in annual base rent with 3% annual escalations, further enhancing its revenue stream.
For the first six months of 2026, Strawberry Fields demonstrated robust performance, with FFO rising to $41.0 million, or $0.74 per share, and net income increasing to $18.4 million. Rental income for the period reached $80.0 million, indicating consistent growth.
The acquisition of the hospital campus and the new credit facility are pivotal to Strawberry Fields' strategy of expanding its healthcare real estate portfolio. As of the latest data, the company owns 142 healthcare facilities with an aggregate of 15,500 beds across ten states, including skilled nursing facilities, assisted living facilities, and long-term acute care hospitals.
These results highlight Strawberry Fields' ability to maintain high occupancy and rent collection rates in a challenging healthcare environment. The new credit facility not only strengthens its balance sheet but also positions the company to capitalize on acquisition opportunities that may arise, potentially driving further growth.
Investors and industry observers will be watching how Strawberry Fields utilizes this additional capital to expand its portfolio and enhance shareholder value. The company's focus on skilled nursing and healthcare-related properties remains a key differentiator in the REIT sector, offering a niche investment opportunity.
For more details on the quarter's results, visit the full press release. To stay updated with the latest news, check the company's newsroom.
