Strawberry Fields REIT Reports 34.1% Revenue Growth to $37.3 Million

Strawberry Fields REIT, Inc. reported significant financial growth in its latest quarterly results, with rental revenues reaching $37.3 million for the three months ended March 31, 2025, a 34.1% increase from $27.8 million in the same period last year. The company’s net income also rose to $7.0 million, up 16.7% from $6.0 million in the prior year, while net income attributable to common stockholders surged by 112.3% to $1.6 million. The basic and diluted income per common share increased to $0.13 from $0.12, reflecting the company's improved profitability.

The increase in rental revenues was primarily driven by new master leases in Kentucky, Missouri, and Kansas, which contributed significantly to the overall revenue growth. However, this was partially offset by lower revenue from the Landmark master lease. Total expenses for the quarter rose to $17.1 million, a 26.4% increase compared to $13.5 million in the previous year, largely due to higher depreciation and amortization costs associated with recent property acquisitions. Interest expenses also increased significantly, reflecting the company's growing debt levels.

In terms of strategic developments, Strawberry Fields REIT made several acquisitions during the quarter, including a skilled nursing facility in Oklahoma for $5.0 million and six healthcare facilities in Kansas for $24.0 million. These acquisitions are expected to enhance the company’s portfolio, which now consists of 121 healthcare properties across multiple states, including Arkansas, Illinois, Indiana, and Texas. The company also entered into a new master lease for 10 properties in Kentucky, which is expected to generate annual base rent of $23.3 million.

Operationally, the company reported a total of 14,640 licensed beds across its facilities, with all properties leased on a triple-net basis. The company’s cash and cash equivalents, along with restricted cash, totaled $71.1 million as of March 31, 2025. Despite a net cash outflow of $22.6 million during the quarter, primarily due to investing activities, the company remains optimistic about its liquidity position and ability to meet future obligations.

Looking ahead, Strawberry Fields REIT aims to continue expanding its portfolio through strategic acquisitions while maintaining compliance with its debt covenants. The company is focused on generating sufficient cash flow to meet its debt service obligations and distribution requirements as a REIT. Management remains confident in the company’s growth trajectory, supported by a disciplined investment strategy and a diversified tenant base.