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].

Revenue and Income Growth - 2024 rental revenues increased by $17.3 million or 17.3% compared to fiscal year 2023, totaling $104.4 million[4] - Net income rose from $20.2 million in 2023 to $26.5 million in 2024, reflecting increased rental revenue and lower losses on real estate[11] - Rental revenues increased to $117,058,000 in 2024 from $99,805,000 in 2023, representing a growth of 17.2%[22] - Net income rose to $26,505,000 in 2024, compared to $20,244,000 in 2023, an increase of 31.0%[22] - Funds from Operations (FFO) for 2024 were $60,193,000, up from $49,479,000 in 2023, reflecting a growth of 21.5%[25] - Adjusted Funds from Operations (AFFO) increased to $55,825,000 in 2024 from $52,668,000 in 2023, a rise of 5.4%[25] - Basic and diluted income per common share improved to $0.57 in 2024, compared to $0.39 in 2023, an increase of 46.2%[22] - Comprehensive income attributable to common stockholders was $3,906,000 in 2024, compared to $2,639,000 in 2023, an increase of 48.0%[22] Expenses and Liabilities - General and administrative expenses increased by $1.2 million or 20.9% compared to fiscal year 2023[7] - Interest expense increased by $8.1 million or 30.5% compared to fiscal year 2023, primarily due to additional interest payments on bonds[8] - Total expenses increased to $55,755,000 in 2024 from $52,366,000 in 2023, a rise of 6.6%[22] - Interest expense increased to $34,808,000 in 2024, compared to $26,674,000 in 2023, an increase of 30.5%[22] - Total liabilities rose to $704.0 million in 2024 from $569.5 million in 2023[21] Assets and Acquisitions - Total assets increased to $787.6 million in 2024 from $616.8 million in 2023[21] - The company acquired 15 facilities (1,985 beds) for $130.3 million in 2024, expanding into Missouri[3] - The company closed the acquisition of six healthcare facilities in Kansas for $24 million in January 2025[2] Rent Collection and Dividends - The company collected 100% of its contractual rents for the year ended December 31, 2024[2] - The company declared a cash dividend of $0.14 per share, payable on March 31, 2025[12] Stock and Shareholder Information - The weighted average number of common stock outstanding increased to 7,124,158 in 2024 from 6,365,196 in 2023, an increase of 11.9%[22] - The company recognized a loss on real estate investment impairment of $2,451,000 in 2023, which was not present in 2024[22][26]

Core Insights - The article compares Strawberry Fields REIT, Inc. (STRW) and National Health Investors (NHI) to determine which stock is more attractive to value investors [1] Valuation Metrics - STRW has a Zacks Rank of 2 (Buy), indicating a more favorable earnings estimate revision activity compared to NHI, which has a Zacks Rank of 3 (Hold) [3] - STRW's forward P/E ratio is 9.15, significantly lower than NHI's forward P/E of 14.96, suggesting STRW may be undervalued [5] - STRW has a PEG ratio of 1.14, while NHI's PEG ratio is 4.42, indicating STRW's expected earnings growth is more favorable [5] - STRW's P/B ratio is 1.44, compared to NHI's P/B of 2.44, further supporting STRW's valuation attractiveness [6] - Based on these metrics, STRW holds a Value grade of A, while NHI has a Value grade of D, highlighting STRW's superior valuation profile [6] Earnings Outlook - STRW is currently experiencing an improving earnings outlook, which enhances its attractiveness in the Zacks Rank model [7]

Core Viewpoint - Strawberry Fields, Inc. has announced its affiliation with Devereux Advanced Behavioral Health, enhancing its ability to provide services to individuals and families with intellectual and developmental disabilities, autism, and mental health challenges while maintaining its independence and community roots [1][2][4]. Company Benefits - As an affiliate of Devereux, Strawberry Fields will retain its name, employee base, and community partnerships while gaining access to Devereux's national model of clinical and evidence-based best practices, quality and safety programs, and technological and financial infrastructure [2][3][5]. - The ASCEND Career Accelerator Program will provide transformative benefits, including tuition assistance of up to $15,000 for undergraduate and $25,000 for graduate classes annually, along with student loan repayment options [7][8]. Industry Impact - The partnership aims to strengthen community-based supports and specialty mental health services in central Pennsylvania, leveraging Strawberry Fields' expertise in Early Intervention and Fairweather Lodge services [9]. - The affiliation is expected to evolve over the next 12 to 18 months, with an interlocking board model to oversee the partnership, ensuring continued impact and sustainability for both organizations [10].

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 [2] - The company's portfolio consists of 130 healthcare facilities with over 14,500 beds across multiple states including Arkansas, Illinois, Indiana, Kansas, Kentucky, Michigan, Missouri, Ohio, Oklahoma, Tennessee, and Texas [2] - The facilities include 118 skilled nursing facilities, 10 assisted living facilities, and 2 long-term acute care hospitals [2] Event Participation - Strawberry Fields REIT will present at the Sequire Investor Summit 2025, scheduled for January 21st-23rd, 2025, at the Condado Vanderbilt Hotel in San Juan, Puerto Rico [1] - The event aims to provide exciting opportunities for funds, companies, and investors [1][2] - The company expresses enthusiasm about sharing its knowledge and expertise during the summit [2] Related Companies - SRAX Inc. is a financial technology company that provides data and insights for publicly traded companies through its Sequire platform [3] - DNA Holdings Venture Inc. focuses on financial innovation through the integration of Web 3, cryptocurrency, AI, and capital markets [3]

Financial Data and Key Metrics Changes - Total assets increased to $661.5 million, up $25.7 million or 4% from the previous quarter [17] - Liabilities rose to $606.3 million, an increase of $21.1 million or 3.6% from the prior quarter [18] - Equity reached $55.2 million, which is $4.6 million or 9.4% higher than the previous quarter [19] - Year-to-date net income for September 2024 was $19.9 million, a $5.5 million or 37.8% increase compared to the same period in 2023 [23] Business Line Data and Key Metrics Changes - The company collected 100% of contractual rents during the quarter [9] - Acquired two skilled nursing facilities in Texas for $15.25 million, expected to increase annual base rents by $1.525 million [11] - Acquired a property in Tennessee for $6.7 million, expected to increase annual rents by $670,000 [12] - Subsequent acquisition of an 86-bed facility in Indiana for $6 million, expected to increase annual rents by $600,000 [13] Market Data and Key Metrics Changes - The company operates 114 facilities across nine states with over 12,800 beds as of September 30, 2024 [8] - Occupancy rates were reported at 70.4%, with expectations for improvement in 2025 [40] Company Strategy and Development Direction - The company aims to grow its asset base, with expectations to close on an additional $110 million of assets in Q4 [25] - Focus on acquiring properties under master leases with third-party operators [29] - The company plans to maintain a consistent dividend policy, with a recent increase to $0.14 per share [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about occupancy rates improving due to demographic trends and regulatory changes [42][43] - The company anticipates continued growth in net income and funds from operations (FFO), projecting $125 million in revenue for the next year [28] - Management highlighted the stability of the nursing home business, emphasizing consistent rent collection [49] Other Important Information - The company has established an ATM program to enhance liquidity and financing flexibility [10] - The board authorized a cash dividend increase, marking the fourth increase in nine consecutive quarters of dividend payments [14] Q&A Session Summary Question: Is there a difference in cap rates between regions? - Management indicated that they do not see a significant difference in cap rates across regions, focusing on consistent financial metrics regardless of location [36][38] Question: What are the expectations for occupancy rates in 2025? - Management believes occupancy rates could improve, particularly in urban areas, while rural facilities may take longer to recover [41][42] Question: Will the dividend grow in line with FFO? - Management confirmed that as FFO increases, the dividend is likely to grow correspondingly, maintaining a conservative payout ratio [45]

Strawberry Fields REIT NYSE American: "STRW" November 8, 2024 Disclaimer The information contained in this presentation does not purport to be all-inclusive and neither the Company nor any of its subsidiaries or their respective stockholders, affiliates, representatives, control persons, partners, members, managers, directors, officers, employees, advisers or agents make any representation or warranty, express or implied, as to the accuracy, completeness or reliability of the information contained in this p ...

Financial Performance - Rental revenues for the nine months ended September 30, 2024, reached $86,570,000, a 16.5% increase compared to $74,325,000 for the same period in 2023[7] - Net income attributable to common stockholders for the nine months ended September 30, 2024, was $2,628,000, compared to $1,782,000 for the same period in 2023, reflecting a 47.5% increase[7] - The company reported a comprehensive income attributable to common stockholders of $2,628,000 for the nine months ended September 30, 2024, compared to $1,782,000 for the same period in 2023[7] - For the nine months ended September 30, 2024, net cash provided by operating activities was $34,525,000, compared to $42,006,000 for the same period in 2023[10] - The company reported net bonds, notes payable, and other debt of $579,629,000 as of September 30, 2024, up from $536,486,000 as of December 31, 2023, reflecting an increase of approximately 8%[77] - The company’s gross bonds, notes payable, and other debt totaled $584,508,000 as of September 30, 2024, compared to $539,145,000 as of December 31, 2023, indicating a rise of about 8.4%[77] - Total expenses for Q3 2024 were $13.4 million, up 5.7% from $12.7 million in Q3 2023, with notable increases in depreciation (9.2%) and amortization (59.4%)[187] - General and administrative expenses increased by $1.1 million or 27.4% in the nine months ended September 30, 2024, primarily due to higher insurance and corporate salaries[192] Assets and Liabilities - Total assets increased to $661,545,000 as of September 30, 2024, up from $616,795,000 on December 31, 2023, representing a growth of 7.5%[6] - Total liabilities rose to $606,326,000 as of September 30, 2024, compared to $569,522,000 at the end of 2023, indicating a 6.5% increase[6] - Goodwill and other intangible assets increased to $23,286,000 as of September 30, 2024, from $8,604,000 at the end of 2023, a significant increase of 171.5%[6] - The company’s total stockholders' equity increased to $55,219,000 as of September 30, 2024, up from $47,273,000 at the end of 2023, reflecting a growth of 16.5%[6] - The company had cash and cash equivalents of $53.2 million as of September 30, 2024, with the ability to offer an additional $350 million in bonds subject to market conditions[196] Cash Flow and Investments - Cash used in investing activities totaled $43,010,000 for the nine months ended September 30, 2024, compared to $113,550,000 in the same period of the previous year[10] - The net increase in cash and cash equivalents for the nine months ended September 30, 2024, was $15.5 million, contrasting with a decrease of $10.7 million in 2023[203] - Cash and cash equivalents at the end of the period for 2024 were $53.2 million, up from $35.0 million in 2023, marking an increase of approximately 52.1%[203] - The company expects to meet its long-term liquidity needs through various sources, including future equity issuances and net cash provided by operations[198] Debt and Financing - The company closed a mortgage loan facility in August 2023, borrowing approximately $66 million, with an interest rate of 8.42% as of September 30, 2024[81] - The Series A Bonds had an outstanding balance of $49.7 million as of September 30, 2024, with an interest rate of 6.97% per annum[86][87] - The Series C Bonds had an outstanding balance of $55.4 million as of September 30, 2024, with an initial interest rate of 5.7% per annum[97][98] - The company has committed to not pledge its assets under general liens without prior consent from bondholders[92] - The company’s financial covenants require that consolidated equity not be less than $20 million and that the ratio of indebtedness to EBITDA not exceed 10[88][101] Property and Operations - The Company owns approximately 14.2% of the outstanding OP units as of September 30, 2024, up from 12.6% as of December 31, 2023[12] - The Company's portfolio consists of 104 healthcare properties with an aggregate of 12,889 licensed beds, generating revenue primarily through long-term triple-net leases[14] - The Company owned 103 properties and leased 1 property as of September 30, 2024, with 25.7% of its total skilled nursing beds located in Indiana and 32.8% in Illinois[40] - The cumulative number of licensed beds increased from 12,201 as of December 31, 2023, to 12,889 as of September 30, 2024, representing an increase of about 5.6%[70] - The Company plans to acquire eight healthcare facilities in Missouri for $87.5 million, with the closing anticipated before year-end 2024[159] Rental Income and Revenue - The Company received rental income from related parties amounting to $53.2 million for the nine months ended September 30, 2024, compared to $40.6 million for the same period in 2023, representing a 31.8% increase[150] - Total future minimum rental revenues for the company's tenants are projected to be $733,212,000, with $25,068,000 expected in the three-month period of 2024[72] - Rental revenues increased by $3.7 million or 14.3% from $25.8 million in Q3 2023 to $29.5 million in Q3 2024, driven by higher income from additional properties and lease renewals[187] Depreciation and Amortization - The company reported a depreciation and amortization expense of $24,666,000 for September 2024, up from $21,266,000 in September 2023[10] - The increase in depreciation and amortization for the nine months ended September 30, 2024, was $3.4 million or 16.0%, primarily due to new property purchases[190] - Depreciation and amortization expenses for the nine months ended September 30, 2024, were $24.7 million, compared to $21.3 million in 2023, indicating an increase of about 16.0%[204] Compliance and Risk - The company was in compliance with all financial covenants as of September 30, 2024, including a debt service coverage ratio (DSCR) requirement of at least 1.05[82] - The company is subject to market concentration risk, with significant revenue generated from Medicare and Medicaid, making it vulnerable to regulatory changes[40] - The Company has potential exposure to claims for fraud and breach of contract related to post-closing obligations, but believes these claims are without merit[136]

Financial Performance - For the third quarter ended September 30, 2024, the Company reported Funds From Operations (FFO) of $15.2 million, a 26.3% increase from $12.0 million in the same quarter of 2023[5] - Adjusted Funds From Operations (AFFO) for the third quarter was $14.3 million, up 24.3% from $11.5 million year-over-year[6] - Net income increased to $6.9 million for Q3 2024, representing a 46.8% rise from $4.7 million in Q3 2023[11] - For the nine months ended September 30, 2024, FFO was $44.6 million, a 24.0% increase from $35.8 million in the same period of 2023[6] Revenue and Income - Rental income for Q3 2024 was $29.5 million, a 14.3% increase compared to $25.8 million in Q3 2023[6] - The Company achieved 100% collection of contractual rents during the quarter[2] Acquisitions - The Company completed the acquisition of two skilled nursing facilities for $15.25 million, funded by cash from the balance sheet, with an annual base rent of $1.5 million and 3% annual rent increases[4] - A second acquisition of an 83-bed skilled nursing facility and a 23-bed assisted living facility was completed for $6.7 million, with annual rent set at $670 thousand[5] Dividends and Equity - The Company declared a cash dividend of $0.14 per share, payable on December 30, 2024[16] - The Company has established an at-the-market equity program to enhance stock liquidity and facilitate growth[3]