Strawberry Fields Reit Announces Third Quarter 2026 Operating Results
Adjusted funds from operations increased despite a quarterly net loss driven by foreign currency transactions associated with bond retirements.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
Strawberry Fields REIT (NYSE American: STRW) reported a third-quarter net loss of $14.761 million, reversing the prior-year quarter’s profit. A $24.609 million foreign currency transaction loss associated with bond retirements drove the reversal from $8.873 million in profit. Rental income reached $40.0 million versus $39.7 million, with 100% of contractual rents collected. Adjusted funds from operations, a supplemental non-GAAP earnings measure, rose to $18.783 million from $18.128 million.
The company completed a $10.4 million Missouri hospital-campus acquisition, adding $1.04 million in initial annual base rent. It also agreed to buy an Indiana nursing facility for $15 million, funded with $14 million from its balance sheet and $1 million in operating partnership units, with closing expected before year-end. Both leases carry 3% annual rent increases. Its $100 million–$150 million acquisition target remains dependent on anticipated transaction closings.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Moderate pointQuarterly rental income increased to $40.0 million from $39.7 million a year earlier.
- Moderate pointQuarterly adjusted funds from operations rose to $18.783 million from $18.128 million a year earlier.
- Moderate point$10.4 million Missouri hospital-campus acquisition completed September 9, funded from the balance sheet. 5.9% of market cap
- Moderate point. Forward-looking: it has not happened yet and may not happen.$15 million Indiana nursing-facility purchase agreement signed November 1; closing expected before year-end. 8.5% of market cap
- Moderate point. Forward-looking: it has not happened yet and may not happen.2026 acquisition target remains $100 million to $150 million, subject to anticipated transaction closings.
11 minor points
- Minor point100% of contractual rents collected in the third quarter.
- Minor pointQuarterly adjusted funds per common share and operating partnership unit rose to $0.34 from $0.33.
- Minor pointNine-month rental income increased to $120.0 million from $114.9 million a year earlier.
- Minor pointNine-month adjusted funds from operations rose to $55.879 million from $53.353 million a year earlier.
- Minor pointNine-month adjusted funds per common share and operating partnership unit rose to $1.00 from $0.96.
- Minor point. Forward-looking: it has not happened yet and may not happen.Missouri campus lease adds $1.04 million initial annual base rent with 3% annual increases.
- Minor point. Forward-looking: it has not happened yet and may not happen.Indiana facility lease will add $1.5 million initial base rent with 3% annual increases.
- Minor pointQuarterly depreciation and amortization decreased to $11.133 million from $11.810 million a year earlier.
- Minor pointNine-month depreciation and amortization decreased to $33.757 million from $34.404 million a year earlier.
- Minor pointQuarterly net interest expense decreased approximately $0.1 million, or 1%, year over year.
- Minor pointBond C was paid off in July 2026.
Negative
- Major point$24.609 million foreign currency transaction loss arose in the third quarter from bond-retirement transactions. 14% of market cap
- Moderate point. Forward-looking: it has not happened yet and may not happen.$1 million in operating partnership units will fund part of the Indiana purchase, diluting existing interests.
- Minor pointQuarterly net loss of $14.761 million compared with $8.873 million net income a year earlier.
- Minor pointQuarterly funds from operations fell to negative $3.628 million from positive $20.695 million a year earlier.
- Minor pointQuarterly funds per common share and operating partnership unit fell to negative $0.65 from positive $0.37.
6 minor points
- Minor pointNine-month net income declined to $3.651 million from $24.526 million a year earlier.
- Minor pointNine-month funds from operations declined to $37.559 million from $58.942 million a year earlier.
- Minor pointNine-month funds per common share and operating partnership unit declined to $0.67 from $1.06.
- Minor pointQuarterly general and administrative expenses increased $0.4 million, or 28%, year over year.
- Minor pointNine-month general and administrative expenses increased approximately $2.1 million, or 38%, year over year.
- Minor pointNine-month real estate disposition loss increased to $151,000 from $12,000 a year earlier.
Key Figures
- Q3 FFO
- $(3.6) million vs. $20.7 million
- Three months ended September 30, 2026 vs. 2025
- Q3 AFFO
- $18.8 million vs. $18.1 million
- Three months ended September 30, 2026 vs. 2025
- Q3 net income/(loss)
- $(14.8) million vs. $8.9 million
- Three months ended September 30, 2026 vs. 2025
- Foreign currency transaction loss
- $24.6 million
- Recognized in Q3 2026
- Contractual rents collected
- 100%
- Company-reported financial highlight
- Missouri campus purchase price
- $10.4 million
- Completed acquisition funded from the balance sheet
- Missouri campus initial annual base rent
- $1.04 million; 3% annual increases
- Added to an existing master lease
- Indiana facility purchase agreement
- $15 million; $14 million from the balance sheet and $1 million in OP Units
- Agreement entered into after quarter end
Key Terms
ffo financial
affo financial
triple-net leases financial
op units financial
non-gaap financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
SOUTH BEND, Ind., Nov. 05, 2026 (GLOBE NEWSWIRE) -- Strawberry Fields REIT, Inc. (NYSE AMERICAN: STRW) (the “Company”) reported today its operating results for the quarter ended September 30, 2026.
FINANCIAL HIGHLIGHTS
100% of contractual rents collected.- On September 9, 2026, the Company completed 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 was
$10.4 million and the Company funded the acquisition from the balance sheet. The hospital campus was added to an existing master lease of a tenant in Missouri with initial annual base rents of$1.04 million and subject to3% annual rent increases. - Subsequent to quarter end on November 1, 2026, the Company entered into a purchase agreement for a 99-bed skilled nursing facility in Angola, Indiana for
$15 million . The Company will fund the acquisition with$14 million from the balance sheet and the seller will take$1 million in OP Units. The facility will be added to an existing master lease for our tenant in Indiana. Initial base rents will be$1.5m m and will be subject to3% annual increases. The acquisition is expected to close before year-end. - For the quarters ended September 30, 2026, and September 30, 2025:
- FFO was
$(3.6) million and$20.7 million , respectively.- FFO per share of
$(0.65) and$0.37 , respectively
- FFO per share of
- AFFO was
$18.8 million and$18.1 million , respectively.- AFFO per share of
$0.34 and$0.33 , respectively.
- AFFO per share of
- Net income/(loss) was
$(14.8) million and$8.9 million , respectively. - Rental income received was
$40.0 million and$39.7 million , respectively.
- FFO was
- For the nine months ended September 30, 2026, and September 30, 2025:
- FFO was
$37.6 million and$58.9 million , respectively.- FFO per share of
$0.67 and$1.06 , respectively
- FFO per share of
- AFFO was
$55.9 million and$53.4 million , respectively.- AFFO per share of
$1.00 and$0.96 , respectively.
- AFFO per share of
- Net income was
$3.7 million and$24.5 million , respectively. - Rental income received was
$120.0 million and$114.9 million , respectively.
- FFO was
Moishe Gubin, the Company’s Chairman & CEO, noted: “While our acquisition activity in 2026 has been more measured compared to prior years, we are encouraged by the progress we are making on several opportunities in our pipeline. Many of these transactions have been under active consideration for several months, with some approaching a year of negotiations. We are pleased to see these efforts beginning to translate into results. If these transactions close as anticipated, we believe we are well positioned to reach our 2026 acquisition target of
Mr. Gubin continued: “One of the Company’s greatest strengths, and a key differentiator from our peers, has been our commitment to a disciplined and consistent investment strategy. Our focus remains on acquiring skilled nursing facilities subject to long-term, triple-net leases with contractual annual rent escalators. This approach has been fundamental to our success, providing a foundation for sustainable growth and predictable cashflows. We remain committed to maintaining this investment discipline as we continue to expand our portfolio and create long-term value for our shareholders.”
Q3 2026 Quarterly Results of Operations:
Three Months Ended September 30, 2026 Compared to Three Months Ended September 30, 2025:
Rental revenues: Rental revenues increased by approximately
Depreciation and amortization: Depreciation and amortization expense decreased by approximately
General and administrative expenses: The increase in general and administrative expenses of
Interest expense, net: Interest expense decreased by approximately
Foreign currency transaction loss: The Company recognized a
Net income: The change from net income of
Nine Months Ended September 30, 2026 Compared to Nine Months Ended September 30, 2025:
Rental revenues: The increase in rental revenue of
Depreciation and amortization: The decrease in depreciation and amortization of
General and administrative: The increase in general and administrative expenses of approximately
Foreign currency transaction loss: The balance is primarily attributable to a
Net income: Net income decreased to
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 145 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 145 healthcare facilities comprise 131 skilled nursing facilities, 10 assisted living facilities, two long-term acute care hospitals, one hospital and one medical office building.
Investor Relations:
Strawberry Fields REIT, Inc.
IR@sfreit.com
+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 nine and three months ended September 30, 2026 and 2025, to net income the most directly comparable GAAP financial measure, for the same periods:
FFO and AFFO
| Nine Months Ended September 30, | Three Months Ended September 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| (dollars in | ||||||||||||||||
| Net income | $ | 3,651 | $ | 24,526 | $ | (14,761 | ) | $ | 8,873 | |||||||
| Loss from real estate disposition | 151 | 12 | - | 12 | ||||||||||||
| Depreciation and amortization | 33,757 | 34,404 | 11,133 | 11,810 | ||||||||||||
| Funds from Operations | 37,559 | 58,942 | (3,628 | ) | 20,695 | |||||||||||
| FFO per weighted average common share and OP Units | 0.67 | 1.06 | (0.65 | ) | 0.37 | |||||||||||
| Adjustments to FFO: | ||||||||||||||||
| Straight-line rent | (6,289 | ) | (5,589 | ) | (2,198 | ) | (2,567 | ) | ||||||||
| Loss on foreign currency transaction | 24,609 | - | 24,609 | - | ||||||||||||
| Funds from Operations, as Adjusted | $ | 55,879 | $ | 53,353 | $ | 18,783 | $ | 18,128 | ||||||||
| AFFO per weighted average common share and OP Units | 1.00 | 0.96 | 0.34 | 0.33 | ||||||||||||
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
Why did Strawberry Fields REIT report a third-quarter 2026 net loss?
The $14.761 million net loss primarily reflected a $24.609 million foreign currency transaction loss associated with retiring Bond Series A, C and D. The comparable quarter of 2025 produced $8.873 million in net income.
How did STRW's adjusted funds from operations change in the third quarter of 2026?
Adjusted funds from operations rose to $18.783 million from $18.128 million a year earlier. The measure increased to $0.34 per weighted average common share and operating partnership unit from $0.33. It excludes the foreign currency transaction loss and is not a substitute for GAAP net income or operating cash flow.
What properties are included in Strawberry Fields REIT's Missouri hospital-campus acquisition?
The acquired campus near Kansas City includes a licensed 60-bed hospital, a licensed 99-bed skilled nursing facility and ancillary medical office buildings. The campus was added to an existing Missouri tenant’s master lease.
What drove Strawberry Fields REIT's higher administrative expenses in 2026?
The nine-month increase reflected costs associated with the new line of credit and term loan, increased professional fees and higher executive compensation. For the third quarter specifically, the increase primarily reflected higher executive compensation and professional fees.