I am long STRW and may add to my position in the future. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional inve ...

Core Viewpoint - Strawberry Fields REIT, Inc. has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system emphasizes the importance of earnings estimate revisions, which have shown a strong correlation with near-term stock price movements [4][6]. - For Strawberry Fields REIT, the Zacks Consensus Estimate for earnings per share for the fiscal year ending December 2025 is projected at $1.27, with no year-over-year change [8]. - Over the past three months, analysts have raised their earnings estimates for Strawberry Fields REIT by 5.4% [8]. Zacks Rating System - The Zacks Rank stock-rating system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - Only the top 5% of Zacks-covered stocks receive a "Strong Buy" rating, indicating superior earnings estimate revisions [9][10].

Core Insights - Strawberry Fields REIT, Inc. (STRW) and National Health Investors (NHI) are being compared for their value to investors, with STRW currently showing a stronger potential for value investment [1][3]. Valuation Metrics - STRW has a forward P/E ratio of 8.01, significantly lower than NHI's forward P/E of 15.09, indicating STRW may be undervalued [5]. - The PEG ratio for STRW is 1.00, while NHI's PEG ratio is 4.28, suggesting STRW has a better balance between price and expected earnings growth [5]. - STRW's P/B ratio stands at 1.43 compared to NHI's 2.3, further supporting STRW's position as a more attractive value option [6]. Analyst Ratings - STRW holds a Zacks Rank of 1 (Strong Buy), while NHI has a Zacks Rank of 2 (Buy), indicating a more favorable earnings estimate revision trend for STRW [3]. - STRW's solid earnings outlook and superior valuation metrics contribute to its Value grade of A, whereas NHI has a Value grade of D [6].

Core Viewpoint - The article discusses the investment position of the author in STRW shares, indicating a beneficial long position through various means such as stock ownership and derivatives [1]. Group 1 - The author expresses personal opinions regarding the investment in STRW and clarifies that no compensation is received for the article, aside from Seeking Alpha [1]. - The article emphasizes that it should not be considered financial advice, as the author is not a licensed financial advisor [2]. - It highlights the importance of due diligence and research by investors before making any investment decisions, particularly in high-risk trading styles [2]. Group 2 - The article notes that past performance does not guarantee future results, and no specific investment recommendations are provided [3]. - It mentions that the views expressed may not reflect those of Seeking Alpha as a whole, indicating a diversity of opinions among analysts [3]. - The article clarifies that the authors are third-party contributors, which may include both professional and individual investors without necessary licenses [3].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Maryland 84-2336054 6101 Nimtz Parkway, South Bend, IN, 46628 (Address of principal executive offices) (574) 807-0800 (Registrant's telephone number, including area code) For the transition ...

Analyst’s Disclosure: I/we have a beneficial long position in the shares of STRW either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. While this article may sound like financial advice, please observe that the author is not a CFA or in any way licensed to give financial advic ...

Financial Performance - Rental revenues for the year ended December 31, 2024, increased by 17.3% to $117.1 million compared to $99.8 million in 2023[212] - Net income for 2024 was $26.5 million, reflecting a 30.9% increase from $20.2 million in 2023[212] - Rental revenues increased by $17.2 million or 17.3% in 2024 compared to 2023, driven by lease renegotiations and acquisitions of 15 properties[215] - Net income rose from $20.2 million in 2023 to $26.5 million in 2024, attributed to higher rental revenue and lower losses on real estate[220] - Funds from Operations (FFO) for the year ended December 31, 2024, were $60.2 million, up from $49.5 million in 2023, indicating a year-over-year increase of approximately 21.5%[257] - The Company reported a net income of $26.5 million for the year ended December 31, 2024, compared to $20.2 million in 2023, reflecting a year-over-year increase of approximately 31.5%[257] Expenses and Indebtedness - Total expenses rose by 6.5% to $55.8 million, with significant increases in depreciation (10.8%) and general and administrative expenses (21.0%)[212] - Depreciation increased by $2.8 million or 10.8% due to new real estate investments totaling $119.8 million in 2024[216] - Interest expense increased by $8.1 million or 33.4% due to larger bond balances and a new commercial bank loan[219] - Total indebtedness as of December 31, 2024, was approximately $673.9 million, including $262.2 million in HUD guaranteed debt[226] - The total gross notes payable and other debt increased to $673.9 million as of December 31, 2024, up from $539.1 million in 2023, representing an increase of approximately 24.9%[253] Acquisitions and Investments - The Company completed the acquisition of two skilled nursing facilities for $15.25 million, with an annual base rent of $1.5 million and 3% annual rent increases[204] - A purchase agreement for a property in Indiana was closed for $5.83 million, with a first-year base rent of $15.5 million and 3% annual escalations[200] - The Company acquired six healthcare facilities in Kansas for $24 million, which will be leased under a new 10-year master lease agreement[209] - Cash used in investing activities rose by $30.4 million, mainly due to a $29.8 million increase in property acquisitions[231] Financing and Capital Structure - The Company established an at-the-market equity program to enhance financing flexibility and support growth initiatives[202] - The Company issued Series A Bonds worth approximately $37.1 million at a fixed interest rate of 6.97%[203] - The Company closed a mortgage loan facility on December 19, 2024, borrowing approximately $59 million, with monthly interest payments starting January 2026 and a balloon payment due in December 2029[238] - As of December 31, 2024, the company had $88.5 million in Series A Bonds at a fixed interest rate of 6.97%, $73.3 million in Series C Bonds at 5.7%, $51.5 million in Series D Bonds at 9.1%, and $460.6 million in senior debt notes, with 29.03% of total debt ($195.7 million) bearing a variable interest rate[283] Tenant Performance and Compliance - As of the report date, none of the Company's tenants are delinquent on rent payments, indicating strong lease compliance[210] - The company actively monitors key factors affecting tenant performance, including cash flow, operating margins, and the quality of management teams[279] - The company evaluates tenant creditworthiness through periodic financial statements and operational data, ensuring ongoing monitoring of credit quality[277] - The company determined that no allowance for doubtful accounts was necessary to cover potential rent losses from tenants as of December 31, 2024 and 2023[269] Risk Management and Future Outlook - The company expects to meet long-term liquidity needs through various capital sources, including future equity issuances and debt offerings[225] - The company aims to reduce dependence on related party tenants to diversify its tenant base while still considering leasing to qualified operators in various markets[276] - The company is exposed to interest rate risk primarily due to long-term debt used for property acquisitions[282] - If one-month SOFR increases by 100 basis points, the company's annual cash flow would decrease by approximately $2.0 million[283] - The company expects to be protected from inflation through provisions in the majority of its long-term leases, which may include rent escalators[281] - The company assesses real estate asset impairment when cash flows generated by the asset are less than its carrying amount[273] - The company utilizes independent appraisals and market data to estimate fair values for real estate acquisitions, impacting depreciation and amortization[271] Dividend Policy - The Company expects to make quarterly dividend payments in cash, with an annual dividend amount no less than 90% of its annual REIT taxable income[260]

Forward-looking statements involve inherent uncertainty and may ultimately prove to be incorrect or false. You are cautioned to not place undue reliance on forward-looking statements. Except as otherwise may be required by law, we undertake no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or actual operating results. Factors that may cause actual results to differ materially from current expectations include, but are not limi ...

Financial Data and Key Metrics Changes - The company reported a total asset increase of 27.7% to $170 million, driven by significant portfolio expansion [16] - Total liabilities rose by 23.6% to $134.5 million, while equity increased by 76.8% year-over-year, amounting to $36 million [17] - Revenue grew by $17.3 million or 17.3%, resulting in a net income of $26.5 million, which is a 30.9% increase compared to the previous year [19] - Adjusted AFFO reached $55.8 million, and adjusted EBITDA was $90.6 million, reflecting year-over-year growth rates of 12.6% and 8.2% respectively [20] Business Line Data and Key Metrics Changes - The company expanded its portfolio from 109 to 130 facilities, increasing the number of beds from 12,449 to 14,540, a 14% increase [7][13] - Base rents increased from $84 million in 2020 to $104 million in 2024, with expectations to reach around $130 million in 2025 [8][25] - The average lease term improved from 4.6 years to 7.4 years by the end of 2024 [9] Market Data and Key Metrics Changes - The company has grown its tenant base from ten operators to forty, indicating a diversification in its operational partnerships [7] - The company collected 100% of its contractual rents during the year, showcasing strong operational performance [10] Company Strategy and Development Direction - The company aims to continue its growth trajectory by focusing on acquisitions that fit its operational model, emphasizing disciplined investment strategies [22][24] - The management expressed a commitment to maintaining a strong dividend policy, increasing the dividend from $0.12 to $0.14 per share, representing a 16.6% increase [21] - The company is looking to improve its market presence and stock liquidity by engaging with institutional investors and participating in conferences [26][28] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the future, expecting to close approximately $150 million in acquisitions in 2025, with a focus on controlled growth [45] - Concerns regarding reimbursement rates and regulatory environments were acknowledged, but management expressed confidence in the ability to navigate these challenges [84][85] Other Important Information - The company has authorized a cash dividend of $0.14 per share, marking its tenth consecutive quarter of dividend payments [14] - The company has established an ATM program and completed its first underwritten public offering, raising $35 million [11] Q&A Session Summary Question: Can you provide details on the transaction market and deal flow? - Management indicated that they are seeing consistent deal flow but will only pursue opportunities that fit their investment criteria [41][42] Question: What are the leverage expectations for 2025? - Management expects to maintain a debt-to-equity ratio between 45% and 55%, aiming for the lower end of that range [46][47] Question: What is the forecast for 2025 AFFO per share? - Management anticipates an AFFO per share in the range of $1.20, with expectations to potentially exceed that figure [50][51] Question: Can you discuss the status of lease expirations for 2025? - Management confirmed that most leases have renewed, with only two remaining, one of which is expected to renew and the other is being actively marketed for a new tenant [58][60] Question: How significant was the ATM issuance in the fourth quarter? - The ATM issuance in the fourth quarter involved approximately 71,000 shares, raising around $161,000 [70] Question: Are there any concerns about tenants moving out? - Management expressed confidence in their tenant relationships, noting that only one tenant is expected to move out, and they are actively pursuing a new tenant for that asset [88][90]

Core Viewpoint - Strawberry Fields REIT held its year-end 2024 earnings call, highlighting its financial performance and strategic focus on acquisitions and investor relations [2]. Group 1: Company Overview - The call featured key participants including the Chief Investment Officer, Chairman and CEO, and CFO, indicating a strong leadership presence [2]. - The company released its year-end 2024 results, which are accessible on its investor relations website, suggesting transparency and accessibility of information for investors [2]. Group 2: Financial Performance - The earnings call is part of the company's routine to discuss financial performance, including projections regarding future financial metrics and operational strategies [3]. - Non-GAAP financial results will be referenced during the call, indicating a focus on alternative performance measures that may provide additional insights into the company's financial health [4].