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Image source: The Motley Fool. Friday, Aug. 7, 2026, at 12 p.m. ET Chief Investment Officer-Jeffrey Bajtner Chairman and CEO-Moishe Gubin CFO-Greg Flamion Operator: [Operator Instructions] I would now like to hand the conference over to your speaker today, Jeffrey Bajtner, Chief Investment Officer. Jeffrey Bajtner: Thank you and welcome to Strawberry Fields REIT's Q2 2026 earnings call. I am the Chief Investment Officer, and joining me today on the call are Moishe Gubin, our Chairman and CEO, and Greg Flamion, our CFO. Yesterday evening, the company issued its Q2 2026 earnings results, which are available on the company's investor website. Participants should be aware that this call is being recorded and listeners are advised that any forward-looking statements made on today's call are based on management's current expectations, assumptions, and beliefs about Strawberry Fields REIT's business and the environment in which it operates. These statements may include projections regarding future financial dividends, acquisitions, investments, returns, financings, and may or may not reference other matters affecting the company's business or the businesses of its tenants, including factors that are beyond its control. Additionally, references will be made during this call to non-GAAP financial results. Investors are encouraged to review these non-GAAP financial measures as well as explanation and reconciliation of these measures to the comparable GAAP results included on the non-GAAP measure reconciliation pages at the back of our investor presentation. And now, on to discussing Strawberry Fields REIT and our Q2 2026 performance. I wanted to start by sharing some key highlights for the quarter. During the quarter, the company collected 100% of its contractual rents. On June 18th, the company closed on its corporate credit facility with availability up to $300 million. The credit facility is comprised of a $100 million term loan and a $200 million revolving line of credit, both having initial 3-year terms and two 1-year extension options. Proceeds from the credit facility were used to refinance existing secured bank debt, and the remainder will be available to support acquisition growth. The rate on the credit facility is SOFR plus 2.75%. On April 21st, the company entered into a contract for the acquisition of a hospital campus comprised of a licensed 60-bed hospital, licensed 99-bed skilled nursing facility, and ancillary medical office buildings near Kansas City, Missouri. The purchase price will be $10.4 million, and the company expects to fund the acquisition from the balance sheet. The hospital campus will be added to an existing master lease of a tenant in Missouri with annual base rents of $1.04 million and subject to 3% annual rent increases. The company expects to close on this acquisition during Q3. Deal-wise, we have been very busy looking at deals and existing in new states. After a little bit of a lull, beginning with the above-mentioned hospital, it seems that deals are starting to make sense again. And we are hopeful that Q4 is going to be a busy quarter closing some of these deals. Yesterday, the Board of Directors approved the Q3 2026 dividend, which will be $0.17 a share. The dividend will be paid on September 30th to shareholders of record on September 16th. I would now like to have Greg Flamion, our Chief Financial Officer, discuss the quarter-end financials. Greg Flamion: Thank you, Jeff, and welcome everyone to the Strawberry Fields second quarter earnings call. Let's begin with a look at our balance sheet. Total assets are $878.5 million, an increase of 18.8 or 2.1% compared to June 30th, 2025. The year-over-year decline in assets is driven by elevated cash balances at the end of the second quarter of 2025. These funds were used to acquire property later in that fiscal year. On the liability side, higher debt balances were driven by financing associated with our acquisitions, together with foreign currency translation effects. Equity was lower year-over-year, primarily due to the decline in accumulated other comprehensive income related to foreign currency translation adjustments. Now with the consolidated statement of income for the 6 months ended July 2026. 2026 revenue was $80 million, up $4.8 million compared to June 30th, 2025. This represents a 6.4% increase, which was driven by the timing and integration of properties acquired in 2025. While we experience higher revenues, the income growth was offset by higher depreciation, which was driven by the new property acquisitions. General and administrative expenses were also higher due to higher closing costs, corporate salaries, and other operating expenses. These increases were offset by lower amortization. The results in a year-to-date income of $18.4 million, or $0.33 a share, compared to $15.7 million or $0.29 a share for the 6 months ended Q2 2025. Going to the next slide, we're now going to look at a quarterly income statement comparison of Q2 2026 to Q2 2025. The second quarter revenues were $40 million, which is $2.2 million higher than Q2 2025. Expenses were mostly aligned, however, quarterly increases were driven by higher G&A expenses. Q2 net income was $8.9 million, which is marginally higher than the net income from the prior year quarter. Finally, I'd like to end my presentation with some financial highlights. Our 2026 AFFO is $73.9 million, representing an 11% compound annual growth rate. The 2026 projected AFFO per share growth is 10.1%. The 2026 adjusted EBITDA is $135.7 million, representing a 50% compound annual growth rate. Our yield on leases is 14.4%. The company's net debt to net asset ratio currently sits at 49.8%. And as of June 30th, 2026, our dividend is $0.70 a share, representing a 4.9% yield and an AFFO payout of 50.6%. This concludes the financial portion of the earnings call presentation. I'll now turn it back over to Jeff Bajtner, who will walk us through additional portfolio highlights. Jeffrey Bajtner: Thank you, Greg. Looking at the portfolio highlights, currently our portfolio has 142 facilities located in 10 states. In these facilities, we have 15,496 licensed beds. The total property value of our portfolio is in excess of $1.4 billion. This amount is calculated by taking our annualized base rents of $143 million and multiplying it by a conservative cap rate of 10%. With the current healthcare real estate market being very strong and looking at comps, we believe that our portfolio should be valued at a lower cap rate than a 10%. Included in our most recent investor deck that we filed yesterday and is on the company's website, there is a sensitivity table at the back, showing that as the cap rates go down, the values go up. Currently, our portfolio has 16 consultants advising operators. The remaining average lease term of the portfolio is 6.9 years. We are pleased to report that our tenants continue to do well, and the EBITDARM rent coverage for May 31st is 2.17. The next year, we will be able to see the results of the portfolio. Net debt to adjusted EBITDA is 5.7. We've continued to collect 100% of our rents. And as a final point, as I mentioned earlier, our pipeline remains strong and we're seeing deals in existing states and new states, and currently we're looking at deals in excess of $225 million. And with that, I'd like to hand it over to Moishe Gubin, our Chairman and CEO, to continue the presentation. Moishe Gubin: All right. Thank you, Jeff. As Jeff and Greg already alluded to, we had a pretty quiet quarter. And so the slides I'm going to go through are just giving you basically the graphs and a couple other pieces of information. So the first slide shows you our FFO growth for the last 5 years or 5 and a half years. And again, it's an 11% growth rate, beautiful from $44 million to almost $74 million. Again, this will change. Hopefully we'll have a nice, we'll end the year hitting our targets, just hitting the targets toward the end of the year which is what we wanted. Unfortunately, it's just how it goes. And so this year is a quieter year, but we're like Jeff said, we've already, we're collecting all our rent still and bringing in the money and we're making a good living. So that's the slide. On the next slide, we talk about the portfolio growth. We changed the slide to try to show a straight line at a 10-cap to try to show what the values are. So you see we're sitting at the other side of how we had this previously, which is showing you historical cost. Now this is showing you basically market value or 10-cap value on our rents that we're collecting. These are lease fee appraisals. So about a 13% growth rate here from 2021, having a value of about $777 million into now 14 and a quarter million. The next slide just talks about our stock price over the last 12 months. It seems to be that quarter, this quarter we ended off good. Currently our stock price is performing better than this, which is good. And as things continue, we expect to get closer to our peers as far as valuation. On our next slide, we talk about our valuation gap, which we're hoping to continue to close in on, catch up to our peers. We're still trading at a 40% discount to our peer average, at a multiple of 10.5. We feel that we should be able to catch up hopefully sooner than later. We're pushing, having good results quarter in quarter out, dividend that's reliable, going to all these conferences, meeting a lot of people. Again, we're sticking with the fact that we're the most SNF-focused portfolio with almost 92% of our portfolio being nursing homes. We have a very quick, very fast AFFO share growth, which is beating all of our peers at around 11%. And we have the lowest payout ratio, dividend payout ratio at right around 50%. We feel all these things should catch up and we'll be more online hopefully sooner than later. On the next slide, you just look at our market performance over the last year. Our stock actually has held its own and we're proud of that. Expect for it to continue on a rise. I don't think there shouldn't be. Right now, we're still collecting 100% of our rents, which Jeff said earlier. Our metrics are all good. Slow growth year. Hopefully, it doesn't affect us to the marketplace. Actually, I'm a little embarrassed by it, even though I keep bringing it up on this call. But that being said, we expect things to just keep continue what we're doing and hopefully the stock will vindicate us and show us a good light. On the next slide again we talked about this already. You know, this is how big of a difference we have. We're at 91.5% in SNF and these are our true peers. And now they're the largest one is 63% and the smallest one is 36%. That's really, I think it's good for us because somebody who recognizes the value of the baby boomers and the value of the baby boomers of the need for SNF care in America and how you could rely on the return. There's no, it's not erratic. It's not based on performance of the operations. They pay us our rent, which is absolute. So with that, I think in the long run, the shareholders or the marketplace should flock to us knowing full well that we're going to continue to have a steady, slow and steady return that you could rely on. On the next slide, your comparison again just to show how we compare. Again, 50% payout ratio, and then you have the largest is distributing 87% of their cash. And so that means for every time they want to buy stuff, right, they have to sell more equity which dilutes the shareholders and their share of the profits. And that's a hard way to go. In our case, everything we're doing is accretive. And even though we do sell stock in the ATM or we continue to extend our shareholder base, we're still mainly using cash from our balance sheet to grow, and then we're able to add debt to stay at a 50% leverage ratio for us to be able to meet what our payout ratio continues to be. And then on the other slide to the right of that is our growth rate. And again, it's just basically because of that simple math. Since we're using our own cash and we're not selling more equity to be able to grow the portfolio, that makes it that we have AFFO share growth because each share is earning more and more money every year, as opposed to having more shares, earning more money as a group, but having more shares to share it with. So that's the math and we're proud of that. On the next slide, we just reiterate the total return. When you take the growth of the AFFO per share over the last, you know, if you include '26 whole year as a projection, it's a 10% growth rate. You take that together with the 5% dividend yield, right, you're at a 16% total return. And the math is really, really simple. You know, you could see it in the chart here. We paid half of it, the remaining amount of money, we take that, we buy more assets and that gives us the return. The next slide just talks about our debt structure. This ended up being the year of the debt restructure because we're spending all of our time, even though we're looking at deals and it's been a weird year as far as how the deals come, they came, they went, they came, they went, we have deals that we're in contract with, they broke the contract and we get back into contract. We never had a year like this where we had that kind of erratic nature and it's just random. It's not like you can't read into it to say, well, something changed in the marketplace. It's just the way this year played out. We'll still hit our bogey as far as closing between $100 million and $150 million of deals. Just that instead of being at the beginning of the year and reflecting in our numbers for the year, the end of the year, it's going to end up being toward the end of the year. And so next year will be a solid year. And this year is also a solid year, just not a growth year from that point of view. But we spend a lot of time on debt, like Jeff and Greg mentioned earlier, in the year. We refinanced, and subsequent to quarter end, we've actually paid off one of our bonds. We used cash from the balance sheet. We raised a little bit of money in May. And now we have our line of credit, which has $140 million of availability on it right now. We still have some debt maturing in September. We're going to take a road trip to Israel. And by the time we get back from Israel or shortly thereafter, somehow we'll have the bonds paid off and without adding to our debt load as far as 50% leverage. We're right now right about 50% or a little bit below 50%. So we should be able to get everything done and then we don't have to worry about any bond or any real, you know, financing that's maturing, you know, for a bit. So this slide is actually real nice. I like it. I look forward till third quarter is when we change this slide around, it's actually going to be nice and smooth across a few years. And so this slide is pretty self-explanatory. Blended interest rate below 6%, 20-year plus HUD debt maturity below 5%, 50% leverage, like we said, and 5.7 times net debt to EBITDA. Corporate bonds, like I said, we paid off bond C. We now have A and D that are going to get paid off in third quarter, and then we have, we redid our line of credit, which we talked about. So that bank debt basically turns into 1 loan. That's a 5-year loan. It was really a 3-year or two 1-year renewals. And we still basically have 1 regular conventional loan at like 6% at a small bank in Tennessee. God bless them. On the next slide, we talk about the diversity of our portfolio. That hasn't really changed from last quarter and year-to-year. You see also the base rent by related consultants. Again, we're pretty diversified. We don't really have too much exposure or concentration in any one place, except for Indiana, which is our best state. So that's positive. And we expect before the year's out, to add at least 1 more state, hopefully, to our mix. One of the deals that's hopefully going to close third or fourth quarter and is a pretty sizable deal in a new state, which is good. All right, on the next slide, this is the Rich Anderson slide, which I really, he's the only reason for this slide to be in this presentation, God bless him. The occupancy for the facilities, right around 77%, which is high, but again, it doesn't really matter to me. You know, our tenants, we look at their financials and they're an efficiency business. So sometimes a lower occupancy will make them more money than a higher occupancy. It's contribution margins, if any of you remember from accounting school. That being said, it's a metric we're telling the folks. Average facility size of 108, and they're running 83 out of 108. Like most facilities in America, majority of the facility is being paid for by Medicaid and then everything else is between Medicare, private pay insurance, and hospice care, which usually falls under Medicaid or private as well. On the next slide, it just shows you our map. That hasn't changed from quarter to quarter. I'm happy when we add the new state, it won't fill in the middle, but it'll grow our perimeter of the current operation. Again, pure play, we talked about it, less than 92% of our portfolio is nursing homes. And again, we've maintained exactly the way we buy things year in, year out. That hasn't changed. Most of you that are listening to this call probably already know it. We buy everything to a 10-cap. We start with, once we do that 10-cap, it's a 10-year lease or two 5-year renewals, 3% annual increases for most of our portfolio. And again, we have a projected ROE of 12%. That's basically considering keeping 50% leverage and then paying interest on the other half and earning a 10-cap. So it gives us a little bit more yield. We typically love the master lease structure and so we continue to buy. I think right now we're buying hopefully something in Tennessee that's going to add to a master lease, adding some, buying something in Missouri that's going to add to a master lease, and then a new deal, which is multiple facilities under a master lease. And that's how we've done it historically, and that's how we continue to do it. Most likely that's how we're going to do it going forward as well. Okay, with that, that ends my comments and my remarks on this presentation. Thank you all for joining us. We will now turn it over to the operator for any questions and answers anyone has and we'll be glad to provide. Operator: [Operator Instructions] Our first question comes from Richard Anderson with Cantor Fitzgerald. You may proceed. Richard Anderson: Thanks, and I'm honored to have my own slides, so thank you for that. So when you think about, it kind of looked like you're projecting a FFO of $1.33 for this year. To what degree does that take into account any activity that you might close for the back half of this year, if at all? Or is it because it'd be closing so late that it probably doesn't have much of an impact on the numbers? Moishe Gubin: So typically I would answer this question, but Jeff, why don't you try to answer this question? Jeffrey Bajtner: The $1.33 is annualizing our current FFO for the year. The acquisition in Missouri that we're going to be closing, hopefully during this quarter, should move it up incrementally. But realistically, these new deals that we're looking at are going to be toward later in Q4. I expect it to have the biggest effect on our FFO per share. Moishe Gubin: I think, Rich, if you're modeling out or any of the other analysts that are modeling out, you should be modeling out for probably an AFFO of an additional $12 million or so. So maybe 155 to 160 for next year, maybe a little higher than that. Jeff, that make sense to you? Greg? Yes. Yes. Yes. I mean, I think if everything we're working on were to come to fruition and work out, yes, that would make sense. 155, 160 would be top line, and the bottom line would be from 74.5 or so to probably closer to 80, 82 or something like that, 81, 82. Yes. Richard Anderson: Okay, so there's a little potential life to that $1.33 based on whatever might happen back half of this year? Moishe Gubin: Yes, yes, it's a drop. I OK, it's unfortunate the way this year has played out has been I've never, I've never seen it in my, I'm doing this now for 20, I started in 1998, I never saw a year where, and I'm just, I blame all the good on God. So when some things like this where it's a little bit wonky, we blame that on God too, that somehow for whatever reason just made it that, you know, a deal happens and that deal doesn't happen and deal, same deal goes back 3 or 4 times. And now we think we're locked and loaded, hopefully finally. And a couple other deals got signed up since then. Richard Anderson: Just a strange year for no real reason. Okay. All right, second question for me. Kansas City deal that is going to close in the third quarter has a hospital element to it. I think we kind of talked about this last quarter, but how open are you to sort of opportunities like that, that are, you know, are largely SNF, but have some other stuff associated with them? Is that something that you feel is, you know, adds to the risk profile of the investment, anything, any kind of color you can provide around something that, you know, investment opportunities that have a little bit more of a diversified component to them? Moishe Gubin: Well, the starting point is for every deal we look at, there has to be a reasonable, you know, sense on who's going to manage the asset, you know, who's going to, who's going to be our operator if they have the financial wherewithal to make sure that our rent is bulletproof, that we're going to get paid. This deal specifically is almost a perfect deal for this operator. They own a physician practice already. They are a master lessee of ours. And so this fits right into their geography where they are, their, you know, their operational experience fits perfectly in running a hospital with the physician practices that they already have. So this works. I mean, I would say going forward, and it's been like that in the past, like we're open-minded, you know, we typically have only really bought nursing homes and anything connected to nursing homes, but we do now have people in our world that are assisted living operators. And if a deal would come in, that's a CCRC, like we did in Maryville and we, and Kingsport, Kingsport, Maryville, those same deal for me, you know, 2 different places. So we have relationships with now other people that we are looking at CCRC stuff where we can either separate out the 2 sides with 2 different guys and make sure that they, you know, the 2 operators have an agreement between them that they have, you know, they play nicely in the sandbox. I mean, 1 deal, I act as like an HOA president between the 2 sides of the property where I got 2 different people that are operating 2 different, one's running a hospital and one's running a nursing home. And I play referee. If those 2 can't get along, I'm HOA president, if you can imagine. That's just what I need in my life. But it makes the deal work. And the 2 sides deal nicely with each other. And so far, so good. Good. So, you know, look, we're open-minded. It comes down to fitting our box. Asset-wise, these things all fit in our box. It's all healthcare and it's all real estate. The 1 thing I try to avoid, the 1 reason I try to avoid that stuff as buying it by itself is because historically we tell the marketplace that if, God forbid, something went wrong in our portfolio, I'm going to be the guy hopping on a plane and I'm going to go there to stabilize it, make sure it's good, sure we don't have a major loss. And I'll be the 1 sitting there operating until I'm able to stabilize it and turn it to the next operator. And I personally don't know how to run a hospital. So I wouldn't be able to make that same representation to the marketplace. Right now, we go to investor meetings and we tell people, look, we have such a good bulletproof income stream. And on top of all that is that, God forbid, something goes wrong, I could go there and fix it. I could deal with it. I still have the operational experience. I have, you know, partnerships where I could get people to help that are part of our world. I'm not part of that world today, but I'm still an owner that I could ask people to pitch in and help me out, and I could send nurses across the country, and I could do stuff. So that's been the reason why we kind of shied away from it. But, you know, a deal like this, perfect deal for the tenant, for our current tenant that we have, very easy to add to the master lease. I think we're closing next week. And it's just a good deal. And if there's more of these that fit Missouri, certainly this same tenant would take it and absorb it. Richard Anderson: So that's the story there. Okay. I just wanted to ask back half of this year, Jeff, what's the most that could be completed now, you know, in that pipeline that you mentioned. You associated $12 million of FFO to it, but I mean, what is that number? Is it $50 million, less, more? Jeffrey Bajtner: So every week, Moishe and I and Greg, we go over our pipeline and we've always, I think Moishe has spoken about this in past earnings calls where we say we've got high, medium and low, like the likelihood that they could work out and the deal will close. And recently we were in 1 of our meetings, I actually said, this is the first time that our pipeline is filled with deals that a majority of it is medium to high. So there's a very good likelihood. And we were talking about earlier, I mean, I think realistically, we could have about $130 million of real estate at least closed toward year-end. And then there's other deals that we're still looking at that could potentially close. So we've got 4 and a half months till year-end. So we're going to keep on working toward it. Moishe Gubin: Thanks very much, everyone. Have a good weekend, Rich. Thank you for joining. Operator: Thank you. Our next question comes from Mark Smith with Lake Street. You may proceed. Mark Smith: Hi guys, first off, just wanted to ask a little bit about SG&A. I don't know if you guys can quantify maybe how much of the SG&A step up was one-time in nature versus kind of a new higher run rate. Moishe Gubin: So it's not new hire. We have right now, we're fully staffed. When we do this next deal, we're probably going to have to hire an asset manager just to add 1 person to our team, but otherwise we're fully staffed. I'm going to let Greg answer about the SG&A because truthfully, the number that's in there that's an increase is because of me. I don't even know what it is because I wasn't part of the conversations. I don't even know what compensation committee granted me. It's all in stock that I never see. So I get it and I don't even notice it's part of like, you know, my pool of shares that I own. So I don't even know how much I'm getting, how much I'm getting paid. Truthfully, Mark. So I'll let Greg answer and go from there. Greg Flamion: Mark, how you doing? So regarding your question, the first part about the one-time items, we had a little less than $800,000 worth of closing costs that were associated with some of the loans we closed in G&A. So that's a one-time item that I think you can disregard going forward. As for the salary, it's running about maybe $250,000 to $300,000 extra a quarter. So that's something that will be, I guess, going forward. So that can answer your question as to what's the one-timers versus the things that we expect to, the increases that we see going forward. Mark Smith: That's helpful. And then I just want to ask big picture, if you guys have seen much, many changes or anything different as you look at kind of the deal pipeline, it sounds like maybe you're seeing some bigger deals come available and negotiating and looking at, but curious kind of what you're seeing out there in the market. Moishe Gubin: I mean, I'd say it's-- yes, Jeff, you can answer that. Jeffrey Bajtner: I think it's more similar or the same. It's just a matter of there's always, as we've said in the past, there's always deals coming in day in, day out. It's very easy for us to decide on the deals that do make sense and don't make sense. For example, the deals that are one-offs on the West Coast or the East Coast, it's not something that we're really looking to go into. We've been looking to grow our master leases in existing states or in states that we know that we could continue to grow in. So the deals have been coming in. There have been some bigger ones. There's been many smaller ones, but we've been, if the deal is a 10-cap asset, we've acquisition and we get that 1.25 coverage on day 1, we've been putting our offers out there. As Moishe mentioned in his prepared remarks, it's something that's an acquisition strategy that we've gone with until now, we plan on sticking to. So to your question, the deals, we keep on putting offers out and as I said, we've actually been signing some of them up. So we're very excited to see where it leads toward year-end. Moishe Gubin: So on the 3 deals that were signed up for that we expect to close this year, actually it's really 4 deals. So without going to location, and 1 of them goes into a master lease. Another 1 goes into a master lease. Another 1 is the biggest deal of the year right now, which would be its own master lease in a new state. And then we have a one-off new deal in a new state that we expect to get done. All of these deals open up for us new states and continue to grow master leases. Have deals out there now that have been worked on for outside of these 3, 4 deals that we expect to get through before the end of the year, we actually have a bunch of other stuff that's been, you know, constant conversation for maybe a year or 2 years with people that, you know, a lot of the guys, a lot of the guys that are contemporaries or students, I call them disciples in my world, people that I've helped earlier in their careers. You know, they, a lot of them say, well, Moishe, you did good with Strawberry. We want to do the same thing. And then my response back to them says, why would you want to do all the stuff that I did? This was nail biting and as anxiety laden process and dealing what we're doing, you know, to make friends with all you guys that are on this call, you know, took how many years? Did we bang it down a door and then we have 1 meeting and then we sit down with somebody and then this, that, I mean, it just takes forever to build. So I tell them, why don't you just merge yourself into me and we'll give you a board seat. You can be part of the team. And so we have like 3 things out there that's been going on for like a year or 2 that's festering that are 3 big groups potentially. I don't know the timing of it, but I would say that if I was giving you a 10-year picture, there's easily, we're going to be able to go from where we are today and most likely add like $4 billion worth of property at some point, absorbing friends that want to be public also, and that I'm trying to convince, and they are sitting with me on a regular basis, that you don't want to go through the process of going public yourself. We already are now known, we have 6,000 shareholders or more, and people know who we are, and the stock's trading finally, and the stock is up, it's still a major discount. And so to answer your question as far as pipeline or what kind of deals, there are some big, big deals at some point are going to hit. We have some other deals that, you know, a $250 million deal, a stand-alone that came in the last few weeks that there's easily a 50/50 coin flip that deal happens. There's some other midsize deals and everything else is what Jeff told you has been the same as usual, you know, drips and drabs of smaller stuff, middle things. It just, what comes in and we jump on every single thing that makes sense for us, you know, it's based on logistics. Like if it makes sense for us that we can add it to a master lease or it's big enough for us to add a state. Mark Smith: Perfect. That's helpful. Thank you, guys. Moishe Gubin: Welcome. Thank you. Operator: Thank you. Our next question comes from Gaurav Mehta with Alliance Global Partners. You may proceed. Gaurav Mehta: Yes, thank you. I want to go back to your comments around the transaction market where you mentioned that you worked on some deals that didn't close. Just want to get some more color on those deals that didn't close. Did those deals go at a lower cap rate to your competitors or why do you think those deals didn't go through? Moishe Gubin: No, the math, the math, the math was still the same math. It's still the same 10-cap. We haven't made an offer below our disciplined number, how we do things. You know, it's an interesting business. You know, the nursing homes. When there's a change of ownership on the PropCo side, but the operator stays the same, it's peaceful. But when the operator is changing to a new tenant that we're bringing in, there's potential turmoil, you know, that period of time between a deal getting made and the change occurring. Yes, you know, the seller is deathly afraid that his staff's going to walk out on him. And, you know, the common conception, I don't know if this is in the regular corporate world also, but the common conception in a nursing home is they think if the place is getting sold, everyone thinks they're getting fired. And so they go and they go find, start looking for new places to work, and they bail on the nursing homes. And it's, this has been the way it's been for 20 years that I've been involved with this. And so the seller is definitely afraid of the employees finding out that there's a sale. So like, you know, when we go there, Strawberry Fields became an appraisal firm. We're not a nursing home group that's buying nursing homes or a REIT that's buying nursing homes. We're either bankers or we're appraisers or we're some other farce so that the employees that meet us don't get smart thinking that the place is being sold. So you put that in perspective, you got more neurotic sellers that, and rightfully so, like they're worried, to make good money today, and they're exiting with a good multiple, and they're happy to sell, and they're happy with the price, and they're happy to take stock in Strawberries sometimes. They live in fear. And so you have to have a good, you know, the guy on the other end says, don't worry, you're giving it to me. I'll do what I can. I'll keep the secret safe. I won't blow the cover, you know, and they'll act a certain way. And so you have where the deal falls apart because somewhere in the middle, somebody finds something out and the guy has to go tell his employees, look, I'm not selling. And so this is what we deal with. And, you know, I play psychiatrist on the side with telling a seller, you know, just it'll be fine. This will work out. Okay, let's not take a tour or let's not do this. Or why don't you send me that and we'll work around somebody finding out. And so I don't know if this helps the people listening, but like, it's such a delicate, delicate act of transitioning when you're transitioning a new operator. And so we sit there and this year, for some reason, that's happened more. We had a deal in Tennessee that spent months on the deal in Tennessee. And then at the end, 1 person said, no, I just I'm not dealing with this. And we tried to make it work. And it was literally months of our life that just went over getting back and then we had this other deal in another state, which is a deal that came back to us, went away, went back. They were difficult, but now we're marching toward a closing. And then last 1 we had was 1 where we had a deal that we're buying something in an asset bankruptcy deal. And so some guy from out of left field started arguing that the price is wrong and that the bankruptcy court should ask us for more money or sell it to somebody else. And so we ended up in a fight with some random guy that shows up and we ended up paying, you know, a couple million dollars more on a deal that we made with the seller long before. So the seller made a little bit more money. This other guy walks away and I ended up paying more money and my tenant was fine paying them more rent. So we still got the 10-cap rent, but this is like the strangest year of dealing with this stuff. Like that's just, and this has nothing to do with, you know, pricing, valuation, cap rates. This is just this wonky stuff. That's just, it's been a weird year. And so hopefully, you know, you have a year like this where you deal with it, you come out strong, everything is good, still collecting all my rents. And then God said, OK, I gave you the curveball this year so that you're going to have a little bit of trouble in your life, even though everything worked out fine. And so next year will be smooth sailing and hopefully we'll continue to do that $100 million to $150 million annual growth minimum. I mean, we, you know, the larger we get, that becomes a smaller growth and we want to then make that growth number higher. So, you know, that bogey goes to $200 million at some point. So, all right, Gaurav, hopefully that answered your question. Gaurav Mehta: Thanks for that color. Second question on the balance sheet, you talked about debt maturity in third quarter, I think. Maybe provide some color on where you expect the cost of debt to be as you go to Israel to raise some debt? Moishe Gubin: Yes, so that's about $160 million that's sitting on our balance sheet. Again, that's priced out to the shekel. Right now, the dollar is getting stronger again, and now it got weaker again. So our easiest, and that averages out at about an 8% interest rate. If the dollar to shekel was better for us, we'd be better off just taking dollars in America at 6. Right now, our cost is about 6.4 or so for our money in America. So, you know, we pay off the 8% money at 6.4, but because the currency is where it is, and the better bet, I mean, now that could change literally in a month. The rate could go back to 3.40. So we have to be nimble here. But we have the Israeli market that supposedly still loves us. The interest rate, the last deal we did in May was 7%. So even if it's a little bit higher than the 6.4 in America. 7% is probably, it's all math, whether that's 7% we save a dollar and then we don't have to eat the currency cost of buying shekel with dollars. Then we would realize the currency. Right now we haven't realized the currency, you know, the devaluation between the shekel and dollar, we haven't really realized that it's in OCI, it's sitting there as a recognized but not realized loss. So to not take that true loss, which I can't stand that if I did, that would kill me personally. So most likely our move is we end up taking shekel and then we have 4 years for the dollar to bounce back, which we expect to occur. And that's a bunch of money in OCI that's going to turn around in our favor. So that's so either way we're going to get an improvement from 8 to probably at least 7. One way gets rid of the interest rate risk, but you realize a loss, and one way doesn't get rid of the interest rate risk, but you don't realize a loss. So that's where we're at. So I'm taking my religious Gentile CFO and we're going to take him to visit Jesus and everything in Israel for him because he's never been to Israel. And then I take my religious Jewish COO, CIO, and we're going to go and shake the moneymaker and bring in some shekels to pay off the bond debt. And hopefully it'll be a good trip. We're leaving on August the 30th, and God willing, we succeed. Gaurav Mehta: All right, thanks for those details. That's all I had. Operator: Thank you. Our next question comes from John Massocca with B. Riley Securities. You may proceed. John Massocca: Good afternoon. So if you just kind of... The $1.33 projection for AFFO in 2026, and you talked about it a little bit earlier, but can you walk me through what exactly is kind of assumed in that number? Is that just... Moishe Gubin: No, I misspoke. That number I was referring to was a top line, I think, rental number. I was saying that we're going from $145 million to a $153 million or $154 million. I was talking about rent. I think I misspoke. Our AFFO right now is about 74. That 74 is going to probably go to 83. I thought I said that also, but I might've misspoke somewhere in there. And I used the term, versus, I was talking about rental income. But as it relates to John's question, the $1.33... Jeffrey Bajtner: That's just taking our AFFO times 2 divided by the outstanding shares in OP units. John Massocca: Okay, so is it just what you've done in 1H, not like 2Q times 4? Moishe Gubin: No, it's just the first half of the year. But it should be... Sorry, it's pretty stable between Q1 and Q2. I'm off today. We just came from the bris of my fourth grandson this morning, so I'm a little off my game. Sorry. John Massocca: No problem. And then, you know, thinking about, you know, the prior conversation on issuing debt in the Israeli market, is there a size for the amount you're looking to kind of raise? I understand you do have a significant amount of capacity still on the revolver, but that would potentially be useful if as in some of this deal flow you're talking about in the end of the year kind of comes to fruition. So how are you kind of thinking about proceeds and how much of kind of like future investment volume maybe is financed with the revolver versus how much is kind of financed with any additional capital you raise with Israeli debt? Moishe Gubin: So, so the starting point is you'd need to take a minimum of 165 million shekels, which today comes out to like $55 million. And they do everything as in a Dutch auction. So depending on the day where things are trading and where they're at, people putting in closed bids, I don't believe that they truly, you know, it's like really secretive. They say it is, I don't believe it. But you know, you start with that number. If the bidding is good, you know, we'll take as much as we can where the pricing is good and it saves us, like I said, on the currency. So we need 160. We know we're going to get out of that 160. We know for sure we would get 55, 60 of it. So, depending on the pricing, that number could go, you know, all the way to 160, which I don't think we ever get to. So most likely we're drawing on the line in some capacity, but between the line and that, we for sure will be fine paying it off. I would like to do the most we can if the pricing is good. You know, the market loves us over there. At least, you know, they seem like they do. When it comes to action on pricing and deals, like they're greedy, like, you know, all the guys on Wall Street here are as well, you know, it's fine. You know, everyone wants to make money, but we go there, they're happy to see us. And we're 1 of like top 5 strongest companies in Israel as far as, you know, cash flow and how we could pay our debt with the cash flow we have. So, you know, hopefully, hopefully, like I said, minimum 55, maximum 160. It's probably somewhere in the middle. And then we'll use the line of credit for the difference. John Massocca: And then that future kind of debt raising, could that potentially have kind of a similar impact on G&A as some of the closing costs you saw in 2Q, or is it just much less expensive than what went into closing? I'm assuming most of those closing costs were tied to the facility. Moishe Gubin: So, closing the new bank debt. Yes, it's an actually interesting accounting thing. And when you're doing bond accounting, you have to have issuance costs that get amortized into interest expense over the life of the bond. So if the life of the bond is a 5-year bond, right, then you're paying your IB there 1, 1.5 to 2 points. So you take that and divide it by, you divide it by 5 years, right? Incrementally you have, you're bleeding into your interest expense, a smaller number, which is fine. In America, we're able to take a finance charge and under FAS 91, I think it is, we're able to take that over the life of that loan. In this case, since it's written as a 3-1-1, so you're taking it over 3-1-1 years. But what doesn't get amortized over the life is all the title work and all the closing costs and all the other BS that goes into the number appraisals and whatever other. And so that shit gets expensed, you know, in the period of where it was incurred. And that's what hit us. It's not, you know, if we were taking that 700 grand or 800 grand, like I was talking about. 760, whatever the number is, and we would have divided that by 3 years, no 1 would even notice that there was a blip on the, even 768 is immaterial in reality, but take that over, you know, you take it over 3 years, you know, 200,000, you know, 250 in a year wouldn't even get noticed, you know, in a quarter, like, you know, it's nothing, right? 32 grand, whatever the number is, but because we had to take it when it occurred, and that's where you see that. So in Israel, you don't notice that, so you wouldn't see a hit to the net income because there's no real, you know, the accounting fee to do the letter over there is like 5 grand. The law firm we basically have on retainer and we give them a little extra so like there's so little in doing the issuance. The other benefit of doing the bond which is what I'd like also is when we need money in a pinch it takes 3 days to do a private placement so if we're trading if we're trading at you know par then you know we give a guy 98 of par and we'll have the money in 3 days, and we could do another $20 million, $30 million, $40 million. So when we have a deal, right now we have bond B that I could draw from if I wanted to on the private placement. We have bond C that we have another few months before the lockout ends and we'll be able to draw. We have capacity where our rating doesn't change, so it gives us ability. So assume for argument's sake, we make a deal and we want to buy something for $200 million in January. We could just go draw on a line, take regular financing, use cash, do an equity raise. We have so many tools available for us to be able to come up with a cash flow to close deals. So, yes, I think that answers your question. Yes. John Massocca: No, I appreciate all that detail. That's it for me. Thank you very much. Operator: [Operator Instructions] Our next question comes from Kenneth Billingsley with Compass Point Research and Trading. You may proceed. Kenneth Billingsley: Thank you. Good afternoon. I didn't want your new slide to go unloved. I just want to clarify a comment. I may have misheard it. On the occupancy, I thought you had said that was high. I just wanted to clarify. Moishe Gubin: Yes, for us, you know, the reason why I don't like that slide is because each state has their own occupancy, number 1. And number 2, you know, this is a business that's efficiency-based. So for us, 77% when we're in states that average occupancy is between 50 and 60 is good. And it gets to that number, like the Kentucky portfolio is nearing capacity, Arkansas, but Arkansas, as an example, is also somewhere in the middle of the road, but we have the Indiana and Illinois, or really Indiana, where the occupancy is like in the 60s, you know, it's a way lower number, but they're our best tenants, we make the most money, and they have the most coverage. So that's why the slide is a little bit misleading, because, you know, if you compare it against a portfolio of stuff that's in, you know, like New York or California, where everyone's at 99% occupancy, you know, you can't compare our portfolio of Midwest where average occupancy is like 60%, 70%. That's why I'm not, I'm anti that slide, but that 77 isn't up for us. I think we used to run like 60, our portfolio ran like 68, 69. So 77 is an improvement in our portfolio. And you see it in our EBITDARM number going up, the rent, you know, the coverage for the rent is over 2, it's like 2.2 now, something like that. So, you know, we're, you know, for our point of view is someone's investing with us, they can rely on us on our dividend because we have a 2 times coverage on our dividend and the rental income that's coming in, we have a 2 times coverage on the rent and we're being a good steward with the money and we're stockpiling the cash and being able to buy more stuff to make the value of each share grow up. So that's our objective. We're thinking about the shareholder and how we're good stewards and custodians of what we're doing here. And so occupancy really doesn't play a role in that. But I think I answered your question. Kenneth Billingsley: I think so, yep. And then on some of the comments you made about some of the new states, are these, I know you said 1 of them is a new master lease and another one's a one-off, new partners or operators, or are they people you're familiar with? Moishe Gubin: Yes, they're, well, we're familiar with them, but they're brand new to us. One is a sale-leaseback, and that's a new state, but we're expecting that's going to grow. This is, they're trying for the first time, and we sat down with them and we really feel that they're strong. They've been in their single business for 20 something years. And now they realized it's better not to own the real estate so they're doing sale-leasebacks, which will give them more money for working capital and more deals. So we should have more deals with these guys. And then the other 1 is a brand new portfolio, a new state, a new tenant for us, and we know the operator to be and we're expecting them to succeed and do well there. Kenneth Billingsley: Okay. And you talked about the potentials for partnering up and you threw out a number and I'm just, if you were to be partnering up just with limited resources, would you focus primarily on those partnerships as opposed to acquisitions that you've sourced on your own? And the reason I ask is based on the number you gave, are these partners, do they have similar sized facilities? The debt being similar? And I'm not asking you to get into all the detail, but I mean, could this be another 280 facilities that would come onto the books if you were a partner with all these? Moishe Gubin: Yes, yes, let me clarify. So, right, there's 2 things here. There's managing the public market conversation, doing this stuff, which, you know, we're always learning. So we're still, I don't think we're great at this yet. We keep it real. So we talk and we're friendly with everybody. So that's a good starting point. But that's, you know, there's the business of public, the public markets, raising debt, you know, managing the relationships with the analysts and the IBs, you know, raising equity and running a balance sheet from that perspective. But then there's also actually running the business, which is also balance sheet, but asset management, you know, these kind of deals. What the benefit that they want is, is what we've already created where people know Strawberry Fields and our platform and, you know, our stock trades already and, you know, and so we're not looking for anything to change on management on the company side. And then the tenants that they have, they, their own version of a REIT, even though they're not a REIT, they're for-profit LLC that rolls up, that we would suck it into our program and the people that work for them that are managing the asset could come work for us and we could eliminate a bunch of overhead that they have because we don't need a second CFO and we don't need, you know, maybe the accounting department needs another person or asset management needs some people obviously. But we're looking that nothing would change. I wouldn't even call it a partnership. It would really be us absorbing them, but them joining the board so that they're part of, they're part of the future. So in that sense, there's a partnership. But, you know, it's Strawberry Fields that gets perpetuated long term, even if current ownership gets diluted and new people come to the table. Right. This should be a running business that can perpetuate for the next 50 years and just keep doing what it does and keep growing and, you know, not changing philosophy, not changing how we buy and if we can absorb this stuff. But this is, in my mind, it's 100%, you know, within 10 years, we end up absorbing a few of these guys. And for their sake, right now, they're doing all this like as a mom and pop without the public, but they're doing this in mom and pop. And for their point of view is like, if I could get an exit and I have Moishe who we trust and know we could just, without me having to work hard like this, I could take a board seat and still see residual net income or distribution and cash flow. Like why would I do that deal? And so that's, that's the light bulb that's going off with the people out there that are peer level folks today that we've known for many years that say, OK. And so that's, so we're working on that. It's a slow process and, but we'll get there. I'm not, there's no doubt in my mind, you know, within, within 10 years, this, our company is, you know, 4, 5 times the size we are today. Kenneth Billingsley: Great, thank you. Operator: Thank you. I would now like to turn the call back over to Jeff Bajtner for any closing remarks. Jeffrey Bajtner: No, thank you so much. I'd like to thank everyone for joining us today. Thank you for the questions. Thank you for the continued support. If you have any questions, feel free to reach out to Moishe, Greg, or myself. Our emails are at the back of the presentation, and I'd like to wish everyone a good rest of the summer, and we'll see everyone in November. Operator: Thank you. This concludes the conference. Thank you for your participation. You may now disconnect. Before you buy stock in Strawberry Fields REIT, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Strawberry Fields REIT wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $421,943!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,382,819!* Now, it’s worth noting Stock Advisor’s total average return is 983% — a market-crushing outperformance compared to 216% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 14, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Strawberry Fields REIT (STRW) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in Strawberry Fields REIT, Inc.? Here are five stocks we like better. Operational performance remained solid: Strawberry Fields collected 100% of contractual rents in Q2, with 142 facilities, approximately $143 million in annualized base rent, and tenant EBITDA-to-rent coverage of 2.17x. Financial results and balance sheet improved: Six-month revenue rose 6.4% to $80 million, while net income increased to $18.4 million. The company approved a $0.17 quarterly dividend and secured a credit facility with up to $300 million in borrowing capacity. Acquisition activity is expected to accelerate: The REIT agreed to buy a Missouri healthcare campus for $10.4 million and is evaluating more than $225 million of additional transactions, with management targeting $100 million to $150 million of total acquisitions in 2026. Strawberry Fields REIT (NYSEAMERICAN:STRW) reported full contractual rent collection during the second quarter of 2026, while management said its acquisition pipeline has begun to improve following a slower and more volatile deal environment earlier in the year. Chief Investment Officer Jeff Bajtner said the healthcare real estate investment trust collected 100% of contractual rents during the quarter. The company’s portfolio included 142 facilities across 10 states, with 15,496 licensed beds and annualized base rent of approximately $143 million. Management estimated the portfolio’s value at more than $1.4 billion using a 10% capitalization rate. → No Hangover: Revisiting Microsoft One Week After Earnings The company’s tenants generated EBITDA-to-rent coverage of 2.17x as of May 31, according to Bajtner, while the portfolio’s remaining average lease term was 6.9 years. Strawberry Fields said approximately 91.5% of its portfolio consists of skilled nursing facilities. For the six months ended in July 2026, Strawberry Fields reported revenue of $80 million, up $4.8 million, or 6.4%, from the comparable 2025 period. Chief Financial Officer Greg Flamion said the revenue increase was driven by the timing and integration of properties acquired in 2025. → MarketBeat Week in Review – 08/03 - 08/07 Year-to-date net income increased to $18.4 million, or $0.33 per share, from $15.7 million, or $0.29 per share, in the prior-year period. Higher depreciation associated with acquired properties, as well as increased general and administrative costs, partially offset revenue growth. Second-quarter revenue totaled $40 million, up $2.2 million from the second quarter of 2025. Quarterly net income was $8.9 million, marginally above the prior-year quarter, Flamion said. → Why the Landlord of the AI Boom Could Outlast the Chipmakers Management cited 2026 adjusted funds from operations, or AFFO, of $73.9 million and projected AFFO-per-share growth of 10.1%. The company also reported adjusted EBITDA of $135.7 million, a lease yield of 14.4%, and net debt to net assets of 49.8%. The board approved a third-quarter dividend of $0.17 per share, payable Sept. 30 to shareholders of record on Sept. 16. As of June 30, the company’s annualized dividend was $0.70 per share, representing a 4.9% yield and a 50.6% AFFO payout ratio, according to management. On June 18, Strawberry Fields closed a corporate credit facility providing up to $300 million of availability. The facility includes a $100 million term loan and a $200 million revolving credit line, each with an initial three-year term and two one-year extension options. The borrowing rate is SOFR plus 275 basis points. Proceeds were used to refinance existing secured bank debt, with the remaining capacity intended to support acquisitions. Chief Executive Officer Moishe Gubin said the revolver had about $140 million of availability at the time of the call. Management said it had paid off one corporate bond after quarter-end using balance-sheet cash and planned to address additional debt maturing in September. Gubin said the company expected to seek financing in Israel, where it has previously issued debt denominated in Israeli shekels, while potentially using its credit line for any remaining repayment needs. Strawberry Fields reported a blended interest rate below 6%, net debt to adjusted EBITDA of 5.7x, and leverage near or below its 50% target. The REIT has contracted to acquire a hospital campus near Kansas City, Missouri, for $10.4 million. The campus includes a licensed 60-bed hospital, a licensed 99-bed skilled nursing facility, and ancillary medical office buildings. The company expects to fund the acquisition from its balance sheet and close during the third quarter. The property will be added to an existing Missouri master lease, with annual base rent of $1.04 million and 3% annual rent escalators. During the question-and-answer session, Gubin said the company remains primarily focused on skilled nursing and related healthcare real estate but would consider other asset types when they fit an established operator and master-lease structure. He said the Missouri transaction was particularly suited to the existing tenant because of its geographic presence and physician-practice operations. Bajtner said Strawberry Fields is evaluating more than $225 million of potential transactions across existing and new states. He said the company has seen a stronger mix of medium- to high-probability opportunities and could close roughly $130 million of real estate transactions near year-end if deals progress as expected. Gubin said the company still expects to close between $100 million and $150 million of deals during the year, although much of that activity may occur later than initially anticipated. He attributed the uneven pace to transaction-specific complications rather than changes in acquisition pricing or cap-rate discipline. Management said it continues to target acquisitions at a 10% capitalization rate and seeks rent coverage of at least 1.25x at closing. The company is prioritizing opportunities that can expand existing master leases or establish a foothold in new states where it sees potential for additional growth. Looking ahead, Gubin said the company is also in discussions with other healthcare real estate owners that could potentially be absorbed into Strawberry Fields’ platform. He characterized those discussions as long-term opportunities and said the company’s operating model and public-market platform could appeal to smaller owners seeking an alternative to building their own public companies. Strawberry Fields REIT, Inc, is a self-administered real estate investment trust engaged in the ownership, acquisition, development and leasing of skilled nursing and certain other healthcare-related properties. The Company's portfolio includes 109 healthcare facilities with an aggregate of 12,449 bed, located throughout the states of Arkansas, Illinois, Indiana, Kentucky, Michigan, Ohio, Oklahoma, Tennessee and Texas. The 109 healthcare facilities comprise 99 skilled nursing facilities, eight assisted living facilities, and two long-term acute care hospitals. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Strawberry Fields REIT Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management characterized the quarter as 'quiet' due to an unusually erratic deal environment where multiple contracts were signed and subsequently broken for non-market reasons. Performance remains anchored by 100% contractual rent collection and a portfolio yield on leases of 14.4%, driven by a pure-play focus on skilled nursing facilities (SNFs). The company maintains a disciplined acquisition strategy, strictly adhering to a 10-cap pricing model with 1.25x coverage requirements to ensure accretive growth. Management attributes their valuation gap relative to peers to their high SNF concentration (92%), which they argue provides more reliable, non-erratic returns compared to diversified healthcare REITs. Strategic positioning focuses on a low dividend payout ratio (approximately 50%) to facilitate growth through balance sheet cash rather than dilutive equity issuances. Operational stability is supported by EBITDARM rent coverage of 2.17x, reflecting the efficiency-based nature of their tenants' businesses despite varying occupancy levels. Management expects to close between $100 million and $150 million in deals by year-end, with a current pipeline exceeding $225 million across existing and new states. The company is planning a strategic trip to Israel to refinance approximately $160 million in maturing bond debt, aiming to reduce interest rates from 8% to approximately 7%. Guidance for 2026 AFFO per share is projected at $1.33 based on first-half performance, with incremental upside expected from Q3 and Q4 acquisitions. Long-term strategy involves absorbing smaller private peers to potentially grow the portfolio by $4 billion over the next decade through non-dilutive mergers. Management anticipates adding at least one new state to the portfolio perimeter by the end of Q4 2026 through pending sizable acquisitions. General and Administrative expenses were elevated by approximately $800,000 in one-time closing costs associated with the new $300 million corporate credit facility. A non-cash loss is currently recognized in Accumulated Other Comprehensive Income (OCI) due to shekel-to-dollar currency translation effects on Israeli bond debt. Management noted a 'wonky' year for deal execution, citing seller anxiety regarding employee retention during ownership transitions as a primary hurdle for closing transactions. The company successfully closed a $300 million credit facility (SOFR + 2.75%) to refinance secured bank debt and provide $140 million in current liquidity for acquisitions. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. The $1.33 FFO projection is an annualization of the first half and does not fully account for the $130 million in real estate expected to close late in the year. Management suggested that if all pending deals reach fruition, top-line rental income could grow from $145 million to approximately $155-$160 million next year. The acquisition is a perfect fit for an existing master lessee who already operates physician practices in that specific geography. Management remains open to diversified healthcare assets only when they fit into existing master leases and are managed by operators with proven financial wherewithal. Management intends to raise between $55 million and $160 million in Israeli debt to pay off maturing 8% debt, potentially lowering the rate to 7%. The company prefers issuing new shekel-denominated debt rather than converting dollars to avoid realizing current currency translation losses sitting in OCI. Excluding one-time closing costs, recurring salary expenses have increased by $250,000 to $300,000 per quarter. The company is currently fully staffed, though it may add one asset manager to support the next major portfolio acquisition.

This article first appeared on GuruFocus. Release Date: August 07, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Strawberry Fields REIT Inc (STRW) collected 100% of its contractual rents during Q2 2026. The company closed on a new corporate credit facility with availability up to $300 million, providing ample liquidity for growth. Strawberry Fields REIT Inc (STRW) has a strong acquisition pipeline, with deals in excess of $225 million and a potential $130 million in closings expected by year-end. The company maintains a low dividend payout ratio of approximately 50.6%, allowing for internal cash flow to fund accretive acquisitions. Strawberry Fields REIT Inc (STRW) reported strong tenant health with an EBITDA and rent coverage ratio of 2.17, indicating a secure income stream. Strawberry Fields REIT Inc (STRW) experienced a quiet quarter with slower-than-expected acquisition activity, pushing deal closings to the end of the year. The company's general and administrative expenses increased due to higher closing costs, corporate salaries, and other operating expenses. Strawberry Fields REIT Inc (STRW) faces currency translation risks related to its Israeli bond debt, with an unrealized loss sitting in accumulated other comprehensive income. The company's stock trades at a significant 40% discount to its peer average AFFO multiple, indicating a valuation gap. Strawberry Fields REIT Inc (STRW) encountered erratic deal-making conditions this year, with some contracted deals falling through and requiring renegotiation. Warning! GuruFocus has detected 9 Warning Signs with STRW. Is STRW fairly valued? Test your thesis with our free DCF calculator. Q: What is the most that could be completed from the deal pipeline in the back half of 2026, and what is the potential impact on AFFO?A: Jeff Beitner (CIO) stated that the pipeline is currently filled with a majority of deals rated "medium to high" likelihood of closing. Realistically, the company expects to close on at least $130 million of real estate towards year-end. Moishe "Mush" Schubin (Chairman and CEO) added that if all deals come to fruition, AFFO could increase from the current $74 million run-rate to approximately $81-$82 million, with a potential additional $12 million in AFFO for next year. Q: Can you provide more color on the deals that didn't close this year? Was it due to pricing or other factors?A: Mush Schubin (CEO) explained that the failed deals were not due to pricing or cap rates, as the company maintained its disciplined 10-cap underwriting. Instead, the issues were operational and idiosyncratic, including sellers' fears of staff turnover during operator transitions, a deal falling apart due to a single person's refusal, and a bankruptcy court dispute where an outside party argued for a higher price, costing the company a couple million dollars more. He described it as a "strange year" with "wonky stuff" unrelated to market fundamentals. Q: How open is the company to investment opportunities that include non-SNF assets, like the Kansas City hospital campus acquisition?A: Mush Schubin (CEO) said the company is open-minded but cautious. The Kansas City deal fits perfectly because it adds to an existing master lease with a current tenant who has the operational expertise to run the hospital alongside their existing physician practices. The company generally avoids standalone non-SNF assets because Schubin personally cannot operate a hospital if stabilization is needed. However, they are exploring CCRC deals where they can separate the components between two operators, acting as a referee between them. Q: Can you quantify how much of the SG&A step-up was one-time in nature versus a new run-rate?A: Greg Flamian (CFO) clarified that approximately $800,000 of the increase was one-time closing costs associated with the new credit facility. The remaining increase is roughly $250,000 to $300,000 per quarter in higher corporate salaries, which is expected to be a continuing expense. The company is fully staffed and does not anticipate significant new hires unless a large deal closes, which would require adding one asset manager. Q: What is the expected cost of debt for refinancing the September bond maturity, and what is the strategy regarding the Israeli bond market?A: Mush Schubin (CEO) explained that the company has about $160 million in Israeli shekel-denominated bonds at an average interest rate of 8%. The strategy is to raise new shekels to pay off the existing shekels, avoiding the realization of a currency loss sitting in OCI. The last Israeli bond deal was priced at 7%, and the company expects to improve its cost of debt from 8% to at least 7%. The trip to Israel in late August aims to raise a minimum of $55 million, with a maximum of $160 million, depending on pricing, and the remainder will be drawn from the revolver. Q: Regarding the $1.33 projected AFFO per share for 2026, does this assume any benefit from deals closing in the back half of the year?A: Jeff Beitner (CIO) clarified that the $1.33 figure is simply the annualization of the first half's AFFO per share. The Missouri hospital acquisition closing in Q3 will have an incremental positive impact, but the larger deals expected to close in Q4 will not have a significant effect on 2026 AFFO. Mush Schubin (CEO) corrected an earlier misspeak, noting that the $12 million increase he mentioned referred to rental income, not AFFO, and that AFFO is expected to grow from $74 million to roughly $83 million. Q: Have you seen any changes in the deal pipeline or market conditions, and are you seeing bigger deals come available?A: Jeff Beitner (CIO) said the market remains consistent, with deals coming in daily. The company focuses on growing master leases in existing states or entering new states where growth is possible. Mush Schubin (CEO) added that there are several larger deals in the works, including a potential $250 million standalone deal with a 50/50 chance of closing, and three separate groups that have been in discussions for one to two years about being absorbed into the company. He projected the company could add $4 billion in property value over the next 10 years through these types of partnerships. Q: Can you provide more detail on the potential partnerships or absorptions you mentioned, and could they bring a significant number of facilities onto the books?A: Mush Schubin (CEO) clarified that these are not traditional partnerships but rather absorptions of smaller, privately held REIT-like entities. The owners would join the board and retain a residual interest, while Strawberry Fields would eliminate their overhead by integrating their asset management teams. He is confident that within 10 years, the company will be four to five times its current size through these types of transactions, which are driven by owners seeking liquidity and an exit without the burden of running a public company. Q: You mentioned occupancy of 77% is "high." Can you clarify that comment?A: Mush Schubin (CEO) explained that occupancy is an efficiency-based metric and varies significantly by state. For example, Indiana has lower occupancy in the 60s but is the company's best-performing state with the highest rent coverage. The 77% figure is an improvement from the portfolio's historical 68-69% and reflects the strength of the Midwest markets where the company operates. He emphasized that the more important metric is the 2.17x EBITDAR rent coverage, which ensures the dividend is well-protected. Q: Regarding the new states you mentioned, are these new operators or people you are familiar with?A: Mush Schubin (CEO) stated that while the company is familiar with the operators, they are brand new tenants. One deal is a sale-leaseback with a company that has been in business for over 20 years and is looking to free up working capital for growth. The other is a new portfolio in a new state with a new tenant that the For the complete transcript of the earnings call, please refer to the full earnings call transcript.

SOUTH BEND, Ind., Aug. 06, 2026 (GLOBE NEWSWIRE) -- Strawberry Fields REIT, Inc. (NYSE AMERICAN: STRW) (the “Company”) reported today its operating results for the quarter ended June 30, 2026. FINANCIAL HIGHLIGHTS 100% of contractual rents collected. On June 18, 2026 the Company closed on its Corporate Credit Facility (“CCF”) with availability up to $300 million. The CCF is comprised of a $100 million term loan and $200 million revolving line of credit, both having initial 3-year terms and two 1-year extension options. Proceeds from the CCF were used to refinance existing secured bank debt and the remainder will be available to support acquisition growth. The rate on the CCF is SOFR +2.75%. On April 21, 2026, the Company entered into a contract for the acquisition of a hospital campus comprising a licensed 60 bed hospital, licensed 99 bed skilled nursing facility and ancillary medical office buildings near Kansas City, Missouri. The purchase price will be $10.4 million and the Company expects to fund the acquisition from the balance sheet. The hospital campus will be added to an existing master lease of a tenant in Missouri with initial annual base rents of $1.04 million and subject to 3% annual rent increases. The Company expects to close on this acquisition during Q3 2026. For the quarters ended June 30, 2026, and June 30, 2025: For the six months ended June 30, 2026, and June 30, 2025: Moishe Gubin, the Company’s Chairman & CEO, noted: “I am pleased that we were able to close the Corporate Credit Facility this quarter. Obtaining a credit facility is something the Company has been talking about for some time now and having access to the CCF without the need for facility level debt puts the Company more in line with our peers. Further, having access to this CCF will be useful as we head towards year-end and have deals to close.” Mr. Gubin continued to say “As our financials reflect, the Company continues to do well. We have continued to collect all our rents and our tenants have been bringing us deals to add to their master leases. I am delighted to see that our stock price has been gaining traction and we are slowing closing the gap on our trading multiples with our peers.” Q2 2026 Quarterly Results of Operations: Three Months Ended June 30, 2026 Compared to Three Months Ended June 30, 2025: Rental revenues: The increase in rental revenues of $2.2 million or 6% is due to higher income from the purchase of additional properties and lease renewals. Depreciation and amortization: The decrease in depreciation and amortization of $0.1 million or (9)% is primarily due lower depreciation from fully depreciated assets and the sale of 2 properties, offset by the purchases of additional properties since the second quarter 2025. General and administrative expenses: The increase in general and administrative expenses of $1.3 million or 62% reflects higher closing costs related to the new line of credit and term loan, as well as higher compensation expense. Interest expense, net: The increase in interest expense of $0.5 million or 4% is primarily due to additional interest expense from the Bond Series B issuance that closed in June of 2025, as well as Bond Series C issuance in May of 2026. This increase was offset by lower interest expense resulting from a paydown of a commercial loan. Net income: The increase in net income from $8.6 million during the second quarter of 2025, to $8.9 million income during the second quarter of 2026 is primarily a result of higher rental income since the second quarter of 2025 offset by higher general and administrative expenses and an increase in interest expense. Six Months Ended June 30, 2026 Compared to Six Months Ended June 30, 2025: Rental revenues: The increase in rental revenue of $4.8 million or 6% is due to the acquisition of properties made since second quarter of 2025. Depreciation and amortization: The increase in depreciation and amortization of $0.03 million or 0.13% is primarily due to properties purchased in 2025, offset by full amortized assets. General and administrative: The increase in general and administrative of $1.7 million or 42% is primarily a result of higher costs associated with the new line of credit and term loan, higher professional fees, and higher compensation expenses. Net income: The increase in net income to $18.4 million in 2026 is primarily a result of higher rental income and lower amortization expense since second quarter 2025 offset by higher general and administrative expenses. Safe Harbor Statement Certain statements in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Those forward-looking statements include all statements that are not historical statements of fact and those regarding our intent, belief or expectations, including, but not limited to, statements regarding: future financing plans, business strategies, growth prospects and operating and financial performance; expectations regarding the making of distributions and the payment of dividends; and compliance with and changes in governmental regulations. Words such as “anticipate(s),” “expect(s),” “intend(s),” “plan(s),” “believe(s),” “may,” “will,” “would,” “could,” “should,” “seek(s)” and similar expressions, or the negative of these terms, are intended to identify such forward-looking statements. These statements are based on management’s current expectations and beliefs and are subject to a number of risks and uncertainties that could lead to actual results differing materially from those projected, forecasted or expected. Although we believe that the assumptions underlying the forward-looking statements are reasonable, we can give no assurance that our expectations will be attained. Factors which could have a material adverse effect on our operations and future prospects or which could cause actual results to differ materially from our expectations include, but are not limited to: (i) the COVID-19 pandemic and the measures taken to prevent its spread and the related impact on our business or the businesses of our tenants; (ii) the ability and willingness of our tenants to meet and/or perform their obligations under the triple-net leases we have entered into with them, including, without limitation, their respective obligations to indemnify, defend and hold us harmless from and against various claims, litigation and liabilities; (iii) the ability of our tenants to comply with applicable laws, rules and regulations in the operation of the properties we lease to them; (iv) the ability and willingness of our tenants to renew their leases with us upon their expiration, and the ability to reposition our properties on the same or better terms in the event of nonrenewal or in the event we replace an existing tenant, as well as any obligations, including indemnification obligations, we may incur in connection with the replacement of an existing tenant; (v) the availability of and the ability to identify (a) tenants who meet our credit and operating standards, and (b) suitable acquisition opportunities, and the ability to acquire and lease the respective properties to such tenants on favorable terms; (vi) the ability to generate sufficient cash flows to service our outstanding indebtedness; (vii) access to debt and equity capital markets; (viii) fluctuating interest rates; (ix) the ability to retain our key management personnel; (x) the ability to maintain our status as a real estate investment trust (“REIT”); (xi) changes in the U.S. tax law and other state, federal or local laws, whether or not specific to REITs; (xii) other risks inherent in the real estate business, including potential liability relating to environmental matters and illiquidity of real estate investments; and (xiii) any additional factors included under “Risk Factors” in our Form 8-K with the SEC on April 14, 2026, as such risk factors may be amended, supplemented or superseded from time to time by other reports we file with the SEC. Forward-looking statements speak only as of the date of this press release. Except in the normal course of our public disclosure obligations, we expressly disclaim any obligation to release publicly any updates or revisions to any forward-looking statements to reflect any change in our expectations or any change in events, conditions or circumstances on which any statement is based. Non-GAAP Financial Measures Reconciliations, definitions and important discussions regarding the usefulness and limitations of the Non-GAAP Financial Measures used in this release can be found below. About Strawberry Fields REIT Strawberry Fields REIT, Inc., is a self-administered real estate investment trust engaged in the ownership, acquisition, development and leasing of skilled nursing and certain other healthcare-related properties. The Company’s portfolio includes 142 healthcare facilities with an aggregate of 15,500 beds, located throughout the states of Arkansas, Illinois, Indiana, Kansas, Kentucky, Missouri, Ohio, Oklahoma, Tennessee and Texas. The 142 healthcare facilities comprise 130 skilled nursing facilities, ten assisted living facilities, and two long-term acute care hospitals. Investor Relations:Strawberry Fields REIT, [email protected]+1 (773) 747-4100 x422 Funds From Operations (“FFO”) The Company believes that funds from operations (“FFO”), as defined in accordance with the definition used by the National Association of Real Estate Investment Trusts (“NAREIT”), and adjusted funds from operations (“AFFO”) are important non-GAAP supplemental measures of our operating performance. Because the historical cost accounting convention used for real estate assets requires straight-line depreciation (except on land), such accounting presentation implies that the value of real estate assets diminishes predictably over time. However, since real estate values have historically risen or fallen with market and other conditions, presentations of operating results for a REIT that uses historical cost accounting for depreciation could be less informative. Thus, NAREIT created FFO as a supplemental measure of operating performance for REITs that excludes historical cost depreciation and amortization, among other items, from net income, as defined by GAAP. FFO is defined as net income, computed in accordance with GAAP, excluding gains or losses from real estate dispositions, plus real estate depreciation and amortization. AFFO is defined as FFO excluding the impact of straight-line rent, above-/below-market leases, non-cash compensation and certain non-recurring items. We believe that the use of FFO, combined with the required GAAP presentations, improves the understanding of our operating results among investors and makes comparisons of operating results among REITs more meaningful. We consider FFO and AFFO to be useful measures for reviewing comparative operating and financial performance because, by excluding the applicable items listed above, FFO and AFFO can help investors compare our operating performance between periods or as compared to other companies. While FFO and AFFO are relevant and widely used measures of operating performance of REITs, they do not represent cash flows from operations or net income as defined by GAAP and should not be considered an alternative to those measures in evaluating our liquidity or operating performance. FFO and AFFO also do not consider the costs associated with capital expenditures related to our real estate assets nor do they purport to be indicative of cash available to fund our future cash requirements. Further, our computation of FFO and AFFO may not be comparable to FFO and AFFO reported by other REITs that do not define FFO in accordance with the current NAREIT definition or that interpret the current NAREIT definition or define AFFO differently than we do. The following table reconciles our calculations of FFO and AFFO for the six and three months ended June 30, 2025 and 2024, to net income the most directly comparable GAAP financial measure, for the same periods: FFO and AFFO

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance was characterized by 100% contractual rent collection and a 7.1% revenue increase driven by the integration of properties acquired in 2025. Management attributes the lack of closed deals in Q1 to a slow start in the broader market and a commitment to a disciplined 10-cap acquisition model despite rising competition. The company maintains a pure-play focus on skilled nursing facilities, which comprise 91.5% of the portfolio, citing deep operational comfort and expertise in the sector. Strategic positioning is focused on triple-net leases with annual rent increases, resulting in a portfolio rent coverage of 2.1x as tenant results improve over time. Management expressed frustration with the company's trading multiple of 9.5x, which they believe significantly undervalues the portfolio compared to the peer average of approximately 14x. The company utilizes a low AFFO payout ratio of 47% to retain cash for portfolio growth while maintaining leverage within a target band of 45% to 55%. Management maintains a full-year 2026 acquisition target of $100 million to $150 million, with activity expected to be heavily weighted toward the third and fourth quarters. The company expects to close a $300 million corporate credit facility in Q2 2026 to refinance secured bank debt and provide dry powder for future acquisitions. A strategic debt laddering initiative is underway to refinance 2026 maturities into tranches expiring in 2030 and 2031, ensuring a rolling one-year runway for future refinancings. Guidance for 2026 projected AFFO is $75.4 million, which assumes current operations and does not factor in the impact of pending or future acquisitions. The acquisition pipeline has expanded to over $325 million, including a pending $80 million portfolio in a new state and a $15 million add-on to an existing master lease. Foreign currency translation adjustments related to Israeli bonds impacted equity and other comprehensive income, though management intends to hedge this by refinancing in the Israeli market. The company identified a 'mistake' in previous debt structuring that resulted in clustered maturity dates and prepayment penalties, which the current refinancing strategy aims to correct. Management noted the loss of two potential deals to larger REIT peers (Welltower and CareTrust) who offered significantly higher prices after initial handshakes with sellers. A $8.6 million acquisition of a hospital campus in Missouri is viewed as a high-value 'throw-in' where the nursing facility alone justifies the purchase price. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management noted that as they pursue larger deals to attract market interest, they are increasingly running into competitive bids from 'big boys' like Welltower and CareTrust. In one instance, a competitor offered $25 million more than Strawberry Fields' 10-cap offer at the final moment of a brokered process. The company refuses to change its disciplined 10-cap model to win deals, relying instead on long-term personal relationships with sellers. The company expects to achieve at least a 50-basis-point improvement on interest rates by refinancing existing debt into new Israeli bonds and the bank facility. Refinancing will move debt from a mix of rates (9.1%, 6.9%, and 5.7%) to a more uniform range of approximately 6.4% to 6.85%. Management prefers the Israeli bond market to avoid realizing currency losses currently held in other comprehensive income (OCI). Management currently has no plans to swap the new floating-rate term loan for a fixed rate, citing a banking background that anticipates a stable to declining rate environment. They noted that HUD, which previously provided long-term 40-year fixed money, has been a stagnant source of financing since COVID.

SOUTH BEND, Ind., May 08, 2026 (GLOBE NEWSWIRE) -- Strawberry Fields REIT, Inc. (NYSE AMERICAN: STRW) (the “Company”) reported today its operating results for the quarter ended March 31, 2026. FINANCIAL HIGHLIGHTS 100% of contractual rents collected. The Company signed a term sheet for a Corporate Credit Facility (CCF) with availability up to $300 million. The CCF will be comprised of a $100 million term loan and $200 million revolving line of credit, both having initial 3-year terms and two 1-year extensions. Proceeds from the CCF will be used to refinance existing secured bank debt and the remainder will be available to support acquisition growth. The rate on the CCF will be SOFR +2.75%. The Company expects to close on this CCF during Q2 2026. Subsequent to quarter end, on April 21, 2026, the Company entered into a contract for the acquisition of a hospital campus comprising a licensed 60 bed hospital, licensed 99 bed skilled nursing facility and ancillary medical office buildings near Kansas City, Missouri. The purchase price will be $8.6 million and the Company expects to fund the acquisition from the balance sheet. The hospital campus will be added to an existing master lease of a tenant in Missouri with initial base rents of $860 thousand and subject to 3% annual rent increases. For the quarters ended March 31, 2026, and March 31, 2025: FFO was $20.9 million and $18.3 million, respectively. FFO per share of $0.38 and $0.33, respectively AFFO was $18.8 million and $16.8 million, respectively. AFFO per share of $0.34 and $0.30, respectively Net income was $9.5 million and $7.0 million, respectively. Rental income received was $40.0 million and $37.3 million, respectively. Moishe Gubin, the Company’s Chairman & CEO, noted: “During the first quarter of 2026 the Company underwrote many deals, but most of them did not fit its disciplined acquisition model. As we head into Q2, it seems our patience will be paying off as we were excited to sign a deal right in the beginning of the quarter and will hopefully have a few more to add. Separately, the Company has spent a lot of time focusing on itself and its processes to ensure that our tenants remain strong and we are well positioned to grow when the right opportunities present themselves. Q1 2026 Quarterly Results of Operations: Three Months Ended March 31, 2026 Compared to Three Months Ended March 31, 2025: Rental revenues: The increase in rental revenues of $2.7 million or 7.1%, compared to the March 31, 2025, is primarily due to rental income received from the new acquisitions to the Texas and Missouri master leases. Depreciation and Amortization: The increase in depreciation of $0.6 million or 6.4% compared to March 31, 2025 is related to depreciation on the 20 properties purchased in 2025. The increase was offset by assets that fully depreciated in 2025. The $0.4 million or (14.5)% decrease in amortization is due to intangible assets being fully amortized. General and administrative: March 31, 2026 expenses increased by $0.4 million or 22.6% compared to March 31, 2025. The increase is driven by higher professional fees, corporate salaries and other operating expenses. Interest expense, net: The March 31, 2026 decrease in interest expense of $0.6 million or (4)% compared to March 31, 2025, is primarily related to lower interest payments on our commercial loans and note payable along with higher interest income. Net Income: The increase in net income from $6.9 million during the quarter ended March 31, 2025 to $9.5 million for the quarter ended March 31, 2026 is primarily due to increases in rental revenues by the new acquisitions from the last year. Safe Harbor Statement Certain statements in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Those forward-looking statements include all statements that are not historical statements of fact and those regarding our intent, belief or expectations, including, but not limited to, statements regarding: future financing plans, business strategies, growth prospects and operating and financial performance; expectations regarding the making of distributions and the payment of dividends; and compliance with and changes in governmental regulations. Words such as “anticipate(s),” “expect(s),” “intend(s),” “plan(s),” “believe(s),” “may,” “will,” “would,” “could,” “should,” “seek(s)” and similar expressions, or the negative of these terms, are intended to identify such forward-looking statements. These statements are based on management’s current expectations and beliefs and are subject to a number of risks and uncertainties that could lead to actual results differing materially from those projected, forecasted or expected. Although we believe that the assumptions underlying the forward-looking statements are reasonable, we can give no assurance that our expectations will be attained. Factors which could have a material adverse effect on our operations and future prospects or which could cause actual results to differ materially from our expectations include, but are not limited to: (i) the COVID-19 pandemic and the measures taken to prevent its spread and the related impact on our business or the businesses of our tenants; (ii) the ability and willingness of our tenants to meet and/or perform their obligations under the triple-net leases we have entered into with them, including, without limitation, their respective obligations to indemnify, defend and hold us harmless from and against various claims, litigation and liabilities; (iii) the ability of our tenants to comply with applicable laws, rules and regulations in the operation of the properties we lease to them; (iv) the ability and willingness of our tenants to renew their leases with us upon their expiration, and the ability to reposition our properties on the same or better terms in the event of nonrenewal or in the event we replace an existing tenant, as well as any obligations, including indemnification obligations, we may incur in connection with the replacement of an existing tenant; (v) the availability of and the ability to identify (a) tenants who meet our credit and operating standards, and (b) suitable acquisition opportunities, and the ability to acquire and lease the respective properties to such tenants on favorable terms; (vi) the ability to generate sufficient cash flows to service our outstanding indebtedness; (vii) access to debt and equity capital markets; (viii) fluctuating interest rates; (ix) the ability to retain our key management personnel; (x) the ability to maintain our status as a real estate investment trust (“REIT”); (xi) changes in the U.S. tax law and other state, federal or local laws, whether or not specific to REITs; (xii) other risks inherent in the real estate business, including potential liability relating to environmental matters and illiquidity of real estate investments; and (xiii) any additional factors included under “Risk Factors” in our Form 8-k filed with the SEC on April 14, 2026, including in the section entitled “Risk Factors” in Item 1A of Part I of such report, as such risk factors may be amended, supplemented or superseded from time to time by other reports we file with the SEC. Forward-looking statements speak only as of the date of this press release. Except in the normal course of our public disclosure obligations, we expressly disclaim any obligation to release publicly any updates or revisions to any forward-looking statements to reflect any change in our expectations or any change in events, conditions or circumstances on which any statement is based. Non-GAAP Financial Measures Reconciliations, definitions and important discussions regarding the usefulness and limitations of the Non-GAAP Financial Measures used in this release can be found below. About Strawberry Fields REIT Strawberry Fields REIT, Inc., is a self-administered real estate investment trust engaged in the ownership, acquisition, development and leasing of skilled nursing and certain other healthcare-related properties. The Company’s portfolio includes 143 healthcare facilities with an aggregate of 15,600+ beds, located throughout the states of Arkansas, Illinois, Indiana, Kansas, Kentucky, Missouri, Ohio, Oklahoma, Tennessee and Texas. The 143 healthcare facilities comprise 131 skilled nursing facilities, 10 assisted living facilities, and two long-term acute care hospitals. Investor Relations: Strawberry Fields REIT, Inc. [email protected] +1 (773) 747-4100 x422 Funds From Operations (“FFO”) The Company believes that funds from operations (“FFO”), as defined in accordance with the definition used by the National Association of Real Estate Investment Trusts (“NAREIT”), and adjusted funds from operations (“AFFO”) are important non-GAAP supplemental measures of our operating performance. Because the historical cost accounting convention used for real estate assets requires straight-line depreciation (except on land), such accounting presentation implies that the value of real estate assets diminishes predictably over time. However, since real estate values have historically risen or fallen with market and other conditions, presentations of operating results for a REIT that uses historical cost accounting for depreciation could be less informative. Thus, NAREIT created FFO as a supplemental measure of operating performance for REITs that excludes historical cost depreciation and amortization, among other items, from net income, as defined by GAAP. FFO is defined as net income, computed in accordance with GAAP, excluding gains or losses from real estate dispositions, plus real estate depreciation and amortization. AFFO is defined as FFO excluding the impact of straight-line rent, above-/below-market leases, non-cash compensation and certain non-recurring items. We believe that the use of FFO, combined with the required GAAP presentations, improves the understanding of our operating results among investors and makes comparisons of operating results among REITs more meaningful. We consider FFO and AFFO to be useful measures for reviewing comparative operating and financial performance because, by excluding the applicable items listed above, FFO and AFFO can help investors compare our operating performance between periods or as compared to other companies. While FFO and AFFO are relevant and widely used measures of operating performance of REITs, they do not represent cash flows from operations or net income as defined by GAAP and should not be considered an alternative to those measures in evaluating our liquidity or operating performance. FFO and AFFO also do not consider the costs associated with capital expenditures related to our real estate assets nor do they purport to be indicative of cash available to fund our future cash requirements. Further, our computation of FFO and AFFO may not be comparable to FFO and AFFO reported by other REITs that do not define FFO in accordance with the current NAREIT definition or that interpret the current NAREIT definition or define AFFO differently than we do. The following table reconciles our calculations of FFO and AFFO for the three months ended March 31, 2026 and 2025, to net income the most directly comparable GAAP financial measure, for the same periods: FFO and AFFO