Strawberry Fields REIT, Inc. (NYSE AMERICAN: STRW) announced operating results for the year ended December 31, 2025, demonstrating substantial growth across key financial metrics. The company reported funds from operations (FFO) of $79.6 million, or $1.43 per share, representing a significant increase from $60.2 million, or $1.15 per share, in 2024. Adjusted funds from operations (AFFO) reached $72.5 million, or $1.30 per share, up from $55.8 million, or $1.07 per share, in the previous year. These financial improvements reflect the company's operational efficiency and strategic positioning within the healthcare real estate sector.
The REIT achieved 100% rent collections throughout 2025, contributing to a substantial increase in rental income to $155.0 million from $117.1 million in 2024. Net income also showed strong growth, rising to $33.3 million from $26.5 million in the prior year. These financial achievements occurred alongside significant portfolio expansion and strategic initiatives that position the company for continued growth in 2026 and beyond.
During 2025, Strawberry Fields executed several strategic moves to strengthen its portfolio and financial position. The company secured a new 10-year master lease in Kentucky with $23.3 million in base rent, which includes provisions for consumer price index (CPI) increases. This long-term agreement provides stable revenue streams while offering protection against inflation, a crucial consideration in the current economic environment. The company also expanded its physical footprint through multiple acquisitions of skilled nursing and healthcare facilities across Kansas, Missouri, and Oklahoma, adding more than 1,200 beds to its portfolio.
To support its growth initiatives, Strawberry Fields issued approximately $89.5 million in Series B bonds on the Tel Aviv Stock Exchange (TASE) at a fixed rate of 6.70%. This financing strategy provides the company with capital for continued accretive growth while locking in favorable interest rates. Chairman and CEO Moishe Gubin noted that these strategic moves position the company for continued growth in 2026, suggesting confidence in the REIT's trajectory and market position.
The company's portfolio now includes 143 healthcare facilities with more than 15,600 beds across ten states, comprising 131 skilled nursing facilities, 10 assisted living facilities, and two long-term acute care hospitals. This geographic diversification and facility mix provide stability against regional economic fluctuations while addressing growing demand for healthcare services, particularly among aging populations. The latest news and updates relating to STRW are available in the company's newsroom at https://ibn.fm/STRW.
For investors and industry observers, Strawberry Fields' 2025 performance demonstrates the resilience of healthcare-focused real estate investment trusts, particularly in skilled nursing and specialized healthcare facilities. The company's ability to achieve 100% rent collections indicates strong tenant relationships and operational stability, while the strategic acquisitions and financing arrangements suggest a proactive approach to growth. The full press release detailing these results can be viewed at https://ibn.fm/wR6ME.
The implications of these results extend beyond the company itself to the broader healthcare real estate sector. As demographic trends continue to drive demand for skilled nursing and specialized healthcare facilities, REITs with focused portfolios and strategic growth plans may be well-positioned to capitalize on these trends. Strawberry Fields' performance in 2025, marked by financial growth, portfolio expansion, and strategic financing, suggests the company has established a foundation for sustained performance in a sector facing both opportunities and challenges related to healthcare policy, demographic shifts, and economic conditions.
