Strawberry Fields REIT Reports 18% Increase in Net Income to $18.4 Million for Six Months Ended June 30, 2026

Strawberry Fields REIT, Inc. reported a net income of $18.4 million for the six months ended June 30, 2026, representing an 18% increase from $15.7 million in the same period of the previous year. The company’s rental revenues also saw a 6% rise, totaling $80.0 million compared to $75.2 million in the prior year. This growth in revenue is attributed to the acquisition of additional properties and lease renewals. The net income attributable to common stockholders increased by 25% to $4.4 million, or $0.33 per share, up from $3.5 million, or $0.29 per share, in the previous year.

In terms of expenses, total costs rose to $36.4 million from $34.4 million, primarily driven by a 42% increase in general and administrative expenses, which reached $5.8 million. This increase reflects higher closing costs related to new financing arrangements and increased compensation expenses. Depreciation expenses also increased by 6% to $18.4 million, while amortization expenses decreased by 19% to $4.2 million, reflecting the impact of fully depreciated assets and the sale of properties.

Operationally, Strawberry Fields REIT maintained a portfolio of 133 healthcare properties with a total of 15,496 licensed beds across ten states, including Arkansas, Illinois, and Indiana. The company’s properties are primarily leased on a triple-net basis, where tenants are responsible for property taxes, insurance, and maintenance costs. As of June 30, 2026, the company had cash and cash equivalents totaling $77.6 million, alongside restricted cash of $35.5 million, indicating a solid liquidity position.

Strategically, the company has been active in managing its debt, with total indebtedness reported at approximately $810.2 million. This includes $250 million in HUD-guaranteed loans and various bond issuances. Notably, on June 18, 2026, Strawberry Fields REIT closed two mortgage loan facilities totaling $100 million, which refinanced existing bank indebtedness. The company is in compliance with all financial covenants associated with its debt obligations, which is crucial for maintaining its operational flexibility and financial health.

Looking ahead, Strawberry Fields REIT aims to continue its growth trajectory by diversifying its investments across different healthcare properties and geographic locations. The company remains focused on generating stable cash flows to meet its ongoing debt service obligations and distribution requirements as a REIT. The management anticipates that its disciplined investment strategy will yield attractive opportunities for dividend growth and asset appreciation, thereby enhancing long-term shareholder value.