Strawberry Fields REIT (NYSE AMERICAN: STRW) reported second-quarter 2026 results, showcasing strong operational performance and strategic financial moves. The company achieved 100% rent collections during the quarter, reflecting the stability of its healthcare real estate portfolio. Net income reached $8.9 million, while funds from operations (FFO) totaled $20.1 million, or $0.36 per share, and adjusted funds from operations (AFFO) were $18.1 million, or $0.32 per share. Rental income increased to $40.0 million from $37.9 million in the same period last year, underscoring consistent revenue growth.
A significant development during the quarter was the closing of a new corporate credit facility providing up to $300 million in borrowing capacity. This facility comprises a $100 million term loan and a $200 million revolving credit facility. The proceeds will be used to refinance existing debt and support future acquisitions, positioning the company for continued expansion. Chairman and CEO Moishe Gubin noted that the new credit facility aligns Strawberry Fields more closely with its peers while providing additional flexibility to pursue acquisition opportunities.
In addition to the financing, the company announced plans to acquire a hospital campus near Kansas City, Missouri, for $10.4 million during the third quarter. This property will be added to an existing master lease, which is expected to generate $1.04 million in annual base rent with 3% annual escalations. This acquisition underscores Strawberry Fields' strategy of accretive growth within the healthcare real estate sector.
For the first six months of 2026, the company reported FFO of $41.0 million, or $0.74 per share, and net income of $18.4 million. Rental income for the first half reached $80.0 million, reflecting continued robust performance. The company's portfolio includes 142 healthcare facilities with an aggregate of 15,500 beds, spanning skilled nursing facilities, assisted living facilities, and long-term acute care hospitals across ten states.
The strong quarterly results and strategic financing highlight Strawberry Fields' commitment to maintaining a solid balance sheet while expanding its footprint in the healthcare real estate market. The 100% rent collection rate is a testament to the quality of its tenants and the essential nature of the services provided at its properties. With the new credit facility, the company is well-positioned to capitalize on acquisition opportunities that align with its growth strategy.
Investors and industry observers will likely view these developments positively, as they demonstrate both operational resilience and proactive financial management. The acquisition of the hospital campus near Kansas City is expected to contribute to the company's revenue stream, further enhancing shareholder value.
For more details on the full press release, visit https://ibn.fm/5tFFk. Additional information about Strawberry Fields REIT is available in the company's newsroom at https://ibn.fm/STRW.
