Core Insights - The article discusses the author's background as a financial journalist with expertise in the real estate market and technology stocks, emphasizing a personal investment perspective [1]. Group 1: Author's Background - The author has over 10 years of experience in communications and has worked for various economic institutions [1]. - Currently holds positions at the Center for Economic Studies Argentina XXI (CEEAXXI) and the International Foundation Bases [1]. Group 2: Relationships and Disclosures - The author mentions a friendship with Ignacio Zorzoli, a writer for Seeking Alpha, but clarifies that there are no business or economic associations [1]. - The article expresses the author's personal opinions and does not involve any compensation from companies mentioned [2].

Core Viewpoint - Rheinmetall's share price has recently declined as investors reassess the implications of the buyout of NVL, a leading warship company [1] Company Summary - Rheinmetall's share price was trading at €1,905, which is slightly below its year-to-date high [1]

Core Viewpoint - Strawberry Fields REIT, Inc. (STRW) is showing potential for a bullish breakout as it has reached a key support level and experienced a "golden cross" in its moving averages [1][2]. Technical Analysis - A "golden cross" occurs when a stock's short-term moving average (50-day) crosses above its long-term moving average (200-day), indicating a bullish trend [2]. - The successful golden cross event consists of three stages: the stock price bottoms out, the shorter moving average crosses above the longer one, and the stock maintains upward momentum [3]. Performance Metrics - Over the past four weeks, STRW has gained 6.2%, indicating positive momentum [4]. - STRW currently holds a 2 (Buy) rating on the Zacks Rank, suggesting further potential for a breakout [4]. - Earnings expectations for STRW have improved, with one upward revision in the last 60 days and no downward changes, contributing to a bullish outlook [4]. Future Outlook - Investors are encouraged to monitor STRW for potential gains due to its key technical indicators and positive earnings estimate revisions [6].

Core Insights - Strawberry Fields REIT Inc. has appointed IBN to lead its corporate communications efforts, aiming to enhance its visibility in the market [1][4][5] Company Overview - Strawberry Fields REIT was spun out in 2015 with an initial portfolio of 33 properties in Indiana and Illinois, and has since expanded to own and lease healthcare facilities across 10 states [2] - The REIT currently owns and holds long-term leasehold interests in 142 healthcare facilities, totaling over 15,500 licensed beds, which include 130 skilled nursing facilities, 10 assisted living facilities, and 2 long-term acute care hospitals [3][6] Strategic Focus - The company's strategy emphasizes collaboration with regional operators and consultants, targeting markets with favorable demographic trends and regulatory conditions that support long-term demand for healthcare services [2] Communication Strategy - IBN will utilize its extensive distribution network, which includes over 5,000 syndication outlets and various media channels, to increase awareness of Strawberry Fields REIT among investors and the public [4][5]

Core Insights - Strawberry Fields REIT, Inc. has completed the acquisition of a facility with 108 skilled nursing beds and 16 assisted living beds for $5.3 million in Poplar Bluff, Missouri [1][2] - This acquisition will increase the Company's annual rents by $530 thousand, with a provision for 3% annual increases [2] - The facility is the 18th acquisition by the Company in Missouri, expanding its portfolio further [2] Company Overview - Strawberry Fields REIT, Inc. is a self-administered real estate investment trust focused on the ownership, acquisition, development, and leasing of skilled nursing and healthcare-related properties [3] - The Company's portfolio consists of 142 healthcare facilities with over 15,500 beds across multiple states, including Arkansas, Illinois, Indiana, Kansas, Kentucky, Missouri, Ohio, Oklahoma, Tennessee, and Texas [3] - The portfolio includes 130 skilled nursing facilities, 10 assisted living facilities, and 2 long-term acute care hospitals [3]

Core Insights - Investors are evaluating Strawberry Fields REIT, Inc. (STRW) and Omega Healthcare Investors (OHI) for potential undervalued stock opportunities [1] - Both companies currently hold a Zacks Rank of 2 (Buy), indicating a positive earnings outlook due to favorable analyst estimate revisions [3][4] Valuation Metrics - STRW has a forward P/E ratio of 9.20, while OHI has a forward P/E of 13.65, suggesting STRW may be more undervalued [5] - The PEG ratio for STRW is 1.15, compared to OHI's PEG ratio of 2.74, indicating STRW's expected earnings growth is more favorable relative to its price [5] - STRW's P/B ratio is 2.18, while OHI's P/B ratio is 2.35, further supporting STRW's valuation advantage [6] Value Grades - STRW has received a Value grade of A, while OHI has a Value grade of D, highlighting STRW as the superior value option based on current metrics [6][7]

Group 1 - Strawberry Fields REIT, Inc. reported quarterly funds from operations (FFO) of $1.52 per share, significantly exceeding the Zacks Consensus Estimate of $0.30 per share, representing an FFO surprise of +406.67% [1] - The company posted revenues of $37.86 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.86%, compared to $29.27 million in the same quarter last year [2] - Over the last four quarters, the company has surpassed consensus FFO estimates three times and topped consensus revenue estimates two times [2] Group 2 - The current consensus FFO estimate for the coming quarter is $0.32 on revenues of $37.75 million, and for the current fiscal year, it is $1.24 on revenues of $150.57 million [7] - The estimate revisions trend for Strawberry Fields REIT, Inc. was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] - The REIT and Equity Trust - Other industry is currently in the top 39% of Zacks industries, suggesting that the outlook for the industry can significantly impact the stock's performance [8]

PART I [Item 1. Condensed Financial Statements](index=4&type=section&id=Item%201.%20Condensed%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Strawberry Fields REIT, Inc. as of June 30, 2025, with detailed notes [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$897.3 million** by June 30, 2025, from **$787.6 million** at year-end 2024, with liabilities rising Condensed Consolidated Balance Sheet Highlights (in $000s) | Account | June 30, 2025 (unaudited) | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$897,254** | **$787,589** | | Real estate investments, net | $636,424 | $609,058 | | Cash and cash equivalents | $96,319 | $48,373 | | Goodwill, other intangible assets | $73,610 | $27,947 | | **Total Liabilities** | **$830,634** | **$704,018** | | Bonds, net | $318,135 | $209,944 | | Senior debt | $423,998 | $460,591 | | Note Payable | $46,854 | $- | | **Total Equity** | **$66,620** | **$83,571** | [Condensed Consolidated Statements of Income and Comprehensive (Loss) Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20and%20Comprehensive%20%28Loss%29%20Income) H1 2025 rental revenues grew **31.7%** to **$75.2 million**, with net income attributable to common stockholders up **110.2%** Key Income Statement Data (in $000s, except per share data) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Rental Revenues | $75,193 | $57,106 | +31.7% | | Income from Operations | $40,824 | $29,584 | +38.0% | | Net Income | $15,653 | $13,032 | +20.1% | | Net Income Attributable to Common Stockholders | $3,540 | $1,684 | +110.2% | | Basic and Diluted EPS | $0.28 | $0.26 | +7.7% | | **Metric** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2024** | **YoY Change** | | Rental Revenues | $37,861 | $29,272 | +29.3% | | Income from Operations | $20,616 | $15,298 | +34.8% | | Net Income | $8,662 | $7,040 | +23.0% | | Net Income Attributable to Common Stockholders | $1,956 | $938 | +108.5% | | Basic and Diluted EPS | $0.16 | $0.14 | +14.3% | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities more than doubled to **$48.8 million** in H1 2025, driven by higher net income Cash Flow Summary (in $000s) | Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $48,781 | $22,694 | | Net cash used in investing activities | ($40,423) | ($23,261) | | Net cash provided by financing activities | $29,430 | $4,927 | | **Increase in cash and cash equivalents** | **$37,788** | **$4,360** | - A significant non-cash investing and financing activity in H1 2025 was the issuance of a **$50.9 million** note payable in exchange for the acquisition of an intangible asset (lease rights)[19](index=19&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes detail business operations, accounting policies, property acquisitions, debt, leases, and subsequent events - The company is a REIT focused on owning, acquiring, and triple-net leasing skilled nursing and other post-acute healthcare properties[23](index=23&type=chunk) - As of June 30, 2025, the company's portfolio grew to **121** owned healthcare properties and one leased property, up from **113** owned properties at year-end 2024[23](index=23&type=chunk) - During the first half of 2025, the company acquired eight facilities for a total of **$40.5 million** and entered into a new master lease for **10** Kentucky properties, which involved issuing a **$50.9 million** note payable to the former tenant's parent company[74](index=74&type=chunk)[75](index=75&type=chunk)[76](index=76&type=chunk) - Total gross debt increased to **$794.1 million** as of June 30, 2025, from **$673.9 million** at year-end 2024, primarily due to new bond issuances and a new note payable, with the company in compliance with all financial covenants[88](index=88&type=chunk)[89](index=89&type=chunk) - Subsequent to the quarter end, in July 2025, the company acquired nine skilled nursing facilities in Missouri for **$59 million**, sold one property in Michigan for **$2.7 million**, and agreed to purchase another facility in Oklahoma for **$4.25 million**[207](index=207&type=chunk)[208](index=208&type=chunk)[209](index=209&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=43&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, H1 2025 rental revenue growth, liquidity, and FFO/AFFO reconciliation [Results of Operations](index=46&type=section&id=Results%20of%20Operations) Q2 2025 rental revenues increased **29%** to **$37.9 million**, driving net income up **23%** Q2 2025 vs Q2 2024 Performance (in $000s) | Metric | Q2 2025 | Q2 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Rental Revenues | $37,861 | $29,272 | +29% | | Total Expenses | $17,245 | $13,974 | +23% | | Interest Expense, net | $11,365 | $7,706 | +48% | | Net Income | $8,662 | $7,040 | +23% | H1 2025 vs H1 2024 Performance (in $000s) | Metric | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Rental Revenues | $75,193 | $57,106 | +32% | | Total Expenses | $34,369 | $27,522 | +25% | | Interest Expense, net | $24,001 | $15,438 | +55% | | Net Income | $15,653 | $13,032 | +20% | - The primary drivers for increased revenue were income from newly purchased properties and lease renewals/renegotiations[226](index=226&type=chunk)[231](index=231&type=chunk) - The significant increase in interest expense was due to new commercial bank loans and bond issuances (Series A and B) since the second quarter of 2024[229](index=229&type=chunk)[233](index=233&type=chunk) [Liquidity and Capital Resources](index=48&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, the company had **$131.4 million** in cash and **$794.1 million** in debt, with future balloon payments - Primary sources of cash include operating cash flows, stock sales, and borrowings, while primary uses are property acquisitions, debt service, and distributions[237](index=237&type=chunk) - The company has significant balloon payment obligations totaling over **$450 million** due between 2026 and 2029 across its various bond series and commercial mortgage facilities[241](index=241&type=chunk) - The company has the ability to offer an additional **$67 million** in Series A Bonds, **$107.7 million** in Series C Bonds, and **$77.3 million** in Series D Bonds, subject to market conditions and covenants[236](index=236&type=chunk) [Funds From Operations (FFO)](index=54&type=section&id=Funds%20From%20Operations%20%28FFO%29) For H1 2025, FFO increased **30.3%** to **$38.2 million**, and AFFO grew **28.5%** FFO and AFFO Reconciliation (in $000s) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Net Income | $15,653 | $13,032 | +20.1% | | Depreciation and amortization | $22,594 | $16,324 | +38.4% | | **Funds from Operations (FFO)** | **$38,247** | **$29,356** | **+30.3%** | | Straight-line rent adjustment | ($3,022) | ($1,935) | - | | **Adjusted FFO (AFFO)** | **$35,225** | **$27,421** | **+28.5%** | | **Metric** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2024** | **YoY Change** | | Net Income | $8,662 | $7,040 | +23.0% | | Depreciation and amortization | $11,324 | $8,228 | +37.6% | | **Funds from Operations (FFO)** | **$19,986** | **$15,268** | **+30.9%** | | Straight-line rent adjustment | ($1,087) | ($967) | - | | **Adjusted FFO (AFFO)** | **$18,899** | **$14,301** | **+32.2%** | [Quantitative and Qualitative Disclosures About Market Risk](index=55&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces interest rate risk on **$163.1 million** of variable-rate debt and foreign currency risk - The company's main market risk exposure is to interest rate changes on its variable-rate debt[276](index=276&type=chunk) - As of June 30, 2025, **20.5%** of total debt (**$163.1 million**) was at a variable interest rate, where a **1%** (100 basis points) increase in one-month SOFR would decrease annual cash flow by approximately **$1.6 million**[277](index=277&type=chunk) - The company is also exposed to foreign currency risk due to its bonds being denominated in Israeli Shekels (NIS) while its operations are in U.S. Dollars[278](index=278&type=chunk) [Controls and Procedures](index=56&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective as of June 30, 2025, with no material changes to internal controls - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the quarter[280](index=280&type=chunk) - No changes occurred during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[281](index=281&type=chunk) PART II [Legal Proceedings](index=57&type=section&id=Item%201.%20Legal%20Proceedings) The company is defending against legal proceedings by Joseph Schwartz and affiliates, expecting no material adverse effect - The company is defending against multiple complaints filed by Joseph Schwartz and affiliates concerning property acquisitions completed between 2018 and 2019[283](index=283&type=chunk)[284](index=284&type=chunk)[285](index=285&type=chunk) - Claims include fraud, breach of contract, and rescission, which the company believes are without merit and expects to resolve without a material adverse effect[287](index=287&type=chunk) [Unregistered Sales of Equity Securities](index=58&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities) There were no unregistered sales of equity securities or redemptions during the first half of 2025 - No redemptions of equity securities occurred in the first half of 2025[290](index=290&type=chunk) [Other Information](index=58&type=section&id=Item%205.%20Other%20Information) There is no other information to report for this period - None[291](index=291&type=chunk) [Exhibits](index=58&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including corporate governance documents, CEO and CFO certifications, and XBRL data files

Industry Overview - The skilled nursing industry is undergoing significant changes driven by aging demographics, undersupply of facilities, and increasing barriers to entry [1] - It is projected that 70% of Americans over 65 will require long-term care at some point in their lives [1] Market Dynamics - The industry faces a notable undersupply of skilled nursing facilities, which may create investment opportunities [1] - Increasing barriers to entry could limit new competitors, potentially benefiting existing players in the market [1]

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].