Strawberry Fields REIT Raises $87.6M Through Israeli Bond Offering at 6.70% Rate

Strawberry Fields REIT (NYSE:STRW) announced the issuance of approximately $87.6 million in Series B Bonds through an offering exclusively conducted and registered in Israel.

Rhea-AI Filing Summary

Strawberry Fields REIT (NYSE:STRW) announced the issuance of approximately $87.6 million in Series B Bonds through an offering exclusively conducted and registered in Israel. The bonds, trading on the Tel Aviv Stock Exchange, carry a 6.70% annual interest rate with principal payments scheduled from 2026 to 2029.

The payment structure includes three initial payments of 4% each, followed by a final payment of 88% of the principal. Interest payments will be made semi-annually. The company plans to use the proceeds for general operations, debt repayment, and property acquisitions.

Positive

• Successful raise of $87.6 million through international bond offering
• Strategic payment structure with minimal early principal payments
• Competitive 6.70% interest rate for emerging growth REIT
• Diversification of funding sources through Israeli market access

Negative

• Significant refinancing risk with 88% balloon payment due in 2029
• Additional debt burden may impact leverage ratios
• Semi-annual interest payment obligations increase fixed costs

Insights

Fixed Income Analyst

Strategic debt issuance provides operational flexibility with manageable payment structure, though back-loaded principal creates refinancing risk.

The bond structure demonstrates careful liquidity management with minimal principal payments in early years. The 6.70% interest rate appears competitive for an emerging growth REIT in the current market. The balloon payment structure, with 88% due in 2029, provides near-term flexibility but creates significant refinancing risk. The international nature of the offering suggests diversification of funding sources, while the Tel Aviv Stock Exchange listing may provide access to a different investor base.

REIT Specialist

Capital raise strengthens acquisition capacity and debt restructuring potential, enhancing strategic flexibility.

The $87.6 million raise provides significant dry powder for property acquisitions and debt optimization. The decision to tap Israeli markets indicates sophisticated capital markets strategy. The ability to secure international institutional funding as an emerging growth REIT demonstrates market confidence. The planned use of proceeds for both acquisitions and debt repayment suggests a balanced approach to growth and balance sheet management.

8-K Event Classification

2 items: 7.01, 9.01

2 items

Item 7.01 Regulation FD Disclosure Disclosure

Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, or exhibit attachments filed with this report.

FAQ

How much did Strawberry Fields REIT (STRW) raise in its Series B Bond offering?

Strawberry Fields REIT raised $87.6 million, net of fees, through its Series B Bond offering on the Tel Aviv Stock Exchange.

What is the interest rate and payment structure for STRW's Series B Bonds?

The bonds carry a 6.70% annual interest rate with semi-annual payments. Principal payments include three 4% payments (2026-2028) and a final 88% payment in 2029.

How will Strawberry Fields REIT (STRW) use the proceeds from the bond offering?

The company will use the proceeds for ongoing operations, general purposes, repayment of existing bank debts, and property acquisitions.

When is the final maturity payment due for STRW's Series B Bonds?

The final maturity payment, representing 88% of the principal, is due on June 30, 2029.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Accepted by SEC EDGAR 06/25/2025 - 06:05 AM Learn about SEC filing dates

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported) June 25, 2025 (June 23, 2025)

Strawberry Fields REIT, Inc.

(Exact name of registrant as specified in its charter)

Maryland		001-41628		84-2336054
(State or other jurisdiction of incorporation)		(Commission file number)		(IRS employer identification no.)

6101 Nimtz Parkway
South Bend, Indiana		46628
(Address of principal executive offices)		(Zip Code)

(574) 807-0800

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities Registered pursuant to Section 12(b) of the Act:

Title of each class registered		Trading Symbol(s)		Name of exchange on which registered
Common Stock, $0.00001 par value		STRW		NYSE American

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1933 (§240.12b-2 of this chapter)  

Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Cautionary Note Regarding Forward-Looking Statements

This Current Report on Form 8-K filed by Strawberry Fields REIT, Inc. (the “Company”) includes information that may constitute forward-looking statements. These forward-looking statements are based on the Company’s current beliefs, assumptions and expectations regarding future events, which in turn are based on information currently available to the Company. By their nature, forward-looking statements address matters that are subject to risks and uncertainties. Forward-looking statements include, without limitation, statements relating to projected industry growth rates, the Company’s current growth rates and the Company’s present and future cash flow position. A variety of factors could cause actual events and results, as well as the Company’s expectations, to differ materially from those expressed in or contemplated by the forward-looking statements. Risk factors affecting the Company are discussed in detail in the Company’s filings with the Securities and Exchange Commission. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except to the extent required by applicable securities laws.

Item 7.01 Regulation FD Disclosure.

On June 23, 2025, the Company issued approximately $87.6 million, net of fees, of its Series B Bonds. The offer and sale of such bonds was pursuant to an offering registered, and exclusively conducted, in Israel. The bonds trade on the Tel Aviv Stock Exchange Ltd.

The Company is obligated to make four principal reduction payments on the bonds, on June 30 of each of the years 2026 to 2029 (inclusive). Each of the first three payments will constitute 4% of the principal of the total par value of the bonds and the final payment will constitute 88% of the principal. The Company is also obligated to pay interest at an annual rate of 6.70% on the unpaid principal of the bonds. The Company will make such payments on December 31, 2025, and June 30 and December 31 of each of the years 2026 through 2028 (inclusive) and on June 30, 2029.

The Company will use net proceeds from the issuance of the for ongoing operations and general purposes, including the repayment of existing bank debts and the acquisition of properties

In accordance with General Instruction B.2 of Form 8-K, the information set forth in Item 7.01, including Exhibit 99.1 and Exhibit 99.2, is deemed to be “furnished” and shall not be deemed to be “filed” for purposes of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or the Securities Act of 1933, as amended (the “Securities Act”), and shall not be incorporated by reference into any filing by the Company under the Exchange Act or the Securities Act, regardless of any general incorporation language in such filing except as shall be expressly set forth by specific reference in any such filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit Number		Exhibit Name		Filed Herewith
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

OPTIMUMBANK HOLDINGS, INC.
Date:	June 25, 2025
By:	/s/ Moishe Gubin
	Moishe Gubin
	Chairman and Chief Executive Officer