Strawberry Fields REIT (NYSE AMERICAN: STRW) reported second-quarter 2026 results that underscore its financial resilience and strategic positioning in the healthcare real estate sector. The company achieved 100% rent collections, a key indicator of portfolio stability, and posted net income of $8.9 million. Funds from operations (FFO) reached $20.1 million, or $0.36 per share, while adjusted funds from operations (AFFO) totaled $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 steady growth in its portfolio.
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 refinancing not only addresses existing debt but also positions the company for future acquisitions. Chairman and CEO Moishe Gubin noted that the new facility aligns Strawberry Fields more closely with its peers while offering additional flexibility to pursue acquisition opportunities. This move is significant as it enhances the company's liquidity and financial flexibility, enabling it to capitalize on market opportunities in the skilled nursing and healthcare real estate sectors.
In addition to the credit facility, the company announced plans to acquire a hospital campus near Kansas City, Missouri, for $10.4 million during the third quarter. This acquisition will be added to an existing master lease, which is expected to generate $1.04 million in annual base rent with 3% annual escalations. This transaction demonstrates Strawberry Fields' active portfolio management and its ability to deploy capital accretively, potentially boosting future cash flows and shareholder value.
For the first six months of 2026, FFO rose to $41.0 million, or $0.74 per share, while net income increased to $18.4 million. Rental income for the half-year reached $80.0 million, reflecting consistent performance across the portfolio. The company's portfolio includes 142 healthcare facilities with an aggregate of 15,500 beds, located across ten states. These facilities comprise 130 skilled nursing facilities, 10 assisted living facilities, and two long-term acute care hospitals, providing a diversified base of healthcare properties.
The implications of these results are noteworthy for investors and the healthcare real estate market. Strawberry Fields' ability to maintain 100% rent collections and grow rental income indicates strong demand for its properties and effective management. The new $300 million credit facility not only strengthens the balance sheet but also provides the capital necessary to pursue strategic acquisitions, which could drive future growth. The planned acquisition of the hospital campus near Kansas City highlights the company's proactive approach to expanding its portfolio in high-demand areas.
Moreover, the company's focus on skilled nursing facilities and other healthcare-related properties positions it well in a sector that is expected to see increased demand due to an aging population. By securing favorable financing and continuing to acquire properties, Strawberry Fields REIT is likely to enhance its competitive position and deliver long-term value to its shareholders. The strong first-half performance and strategic initiatives suggest that the company is well on track to meet its growth objectives.
