Strawberry Fields REIT (NYSE AMERICAN: STRW) has announced its second-quarter 2026 financial results, revealing a period of solid performance marked by 100% rent collections and strategic financial moves. The company reported 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 continued growth.
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 facility is aimed at refinancing existing debt and supporting future acquisitions, aligning the company more closely with its peers and offering additional flexibility to pursue growth opportunities. Chairman and CEO Moishe Gubin emphasized the strategic importance of this credit facility in enhancing the company's financial position.
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 and is expected to generate $1.04 million in annual base rent with 3% annual escalations, contributing to the company's revenue stream.
For the first six months of 2026, the company reported FFO of $41.0 million, or $0.74 per share, net income of $18.4 million, and rental income of $80.0 million. These figures indicate a strong first half of the year, with the company's portfolio of 142 healthcare facilities, including 130 skilled nursing facilities, 10 assisted living facilities, and two long-term acute care hospitals, continuing to perform well.
The announcement of these results and strategic initiatives is significant for investors as it demonstrates Strawberry Fields' ability to maintain high occupancy and rent collection rates, while also positioning itself for future expansion. The new credit facility not only provides liquidity for acquisitions but also signals confidence in the company's growth trajectory. The planned acquisition near Kansas City is part of a broader strategy to expand its footprint in key markets, potentially increasing shareholder value over time.
For more details on the full press release, visit https://ibn.fm/5tFFk.
