Strawberry Fields REIT (NYSE AMERICAN: STRW) announced its second-quarter 2026 financial results, revealing a period of solid performance and strategic financial maneuvering. The company reported a 100% rent collection rate, net income of $8.9 million, and funds from operations (FFO) of $20.1 million, or $0.36 per share. Adjusted funds from operations (AFFO) came in at $18.1 million, or $0.32 per share. Rental income increased to $40.0 million from $37.9 million in the same quarter last year, reflecting the company's steady growth.
A key highlight of the quarter was the closing of a new corporate credit facility that provides up to $300 million in borrowing capacity. This facility includes a $100 million term loan and a $200 million revolving credit facility. The proceeds are intended to refinance existing debt and support future acquisitions, giving the company greater financial flexibility. Chairman and CEO Moishe Gubin noted that this credit facility aligns Strawberry Fields more closely with its peers while providing additional resources to pursue acquisition opportunities.
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 property 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 acquisition underscores the company's strategy of expanding its healthcare real estate portfolio.
For the first six months of 2026, Strawberry Fields reported FFO of $41.0 million, or $0.74 per share, and net income of $18.4 million. Rental income for the period reached $80.0 million, indicating strong operational performance. The company's portfolio now includes 142 healthcare facilities with an aggregate of 15,500 beds, located across Arkansas, Illinois, Indiana, Kansas, Kentucky, Missouri, Ohio, Oklahoma, Tennessee, and Texas. These facilities comprise 130 skilled nursing facilities, 10 assisted living facilities, and two long-term acute care hospitals.
The announcement of these results and the new credit facility is significant for investors and the healthcare real estate sector. The $300 million credit facility provides Strawberry Fields with substantial capital to pursue growth opportunities, while the consistent rent collections and increasing rental income demonstrate the stability of its revenue stream. The planned acquisition near Kansas City further indicates the company's proactive approach to expanding its footprint. As the company continues to execute its strategy, these developments could position it for sustained growth and enhanced shareholder value.
For more details, the full press release is available at https://ibn.fm/5tFFk. For the latest news and updates on Strawberry Fields REIT, visit their newsroom at https://ibn.fm/STRW.
