What were the key takeaways from Strawberry's earnings call?

What is the revenue and EPS growth rate for Strawberry year over year?

What does Strawberry do and what are its main business segments?

What is Strawberry's latest dividend and current dividend yield?

What is Strawberry's gross profit margin?

What is the market's earnings forecast for Strawberry next quarter?

What guidance did Strawberry's management provide for the next earnings period?

What factors drove the changes in Strawberry's revenue and profit?

- **Revenue Growth**: Q3 2025 revenue up 28.3% YoY to $114.9 million, driven by $68.55 million in facility acquisitions.
- **Dividend Expansion**: 14% dividend increase to $0.16 per share, with 100% rent collection and 46.8% AFFO payout ratio.
- **Financial Strength**: 2025 AFFO of $72.7 million (28.2% YoY growth), 13.3% CAGR since 2020, and 49.2% net debt-to-asset ratio.
- **Pipeline Momentum**: $250 million acquisition pipeline, targeting $150-200 million annual spend in existing states via master leases.
- **Strategic Discipline**: 89% master lease portfolio, 91.5% SNF concentration, and 2.01x EBITDARM coverage, compared to peers' higher payout ratios and lower growth rates.

**Core Details - Detail Page**

**CEO Summary Section**
- Acquired three skilled nursing facilities in Q3 2025, totaling $68.55 million, with annual base rents of $958,000 and 3% annual rent increases.
- Increased dividend to $0.16 per share (14% YoY), reflecting 100% rent collection and disciplined capital allocation.
- Portfolio now includes 142 facilities (130 SNFs, 10 ALFs, 2 LTACHs) across 10 states, with 15,542 licensed beds.
- Projected 2025 AFFO of $72.7 million (28.2% YoY growth) and Adjusted EBITDA of $126.1 million (38.9% YoY growth).
- Undervalued stock with AFFO trading multiple of 11.3%, compared to peers' higher payout ratios and lower growth rates.

**CFO Financial Commentary**
- Year-to-date revenue: $114.9 million (28.3% YoY growth), driven by acquisitions and retenanting.
- Net income: $24.5 million ($0.44 per share), up 23.2% YoY.
- Q3 2025 net income: $8.8 million ($0.16 per share), up 28.1% YoY.
- Key metrics: AFFO payout ratio of 46.8%, net debt-to-asset ratio of 49.2%, and EBITDARM coverage of 2.01x.
- Projected 2025 dividend yield of 5.2%, with surplus cash from depreciation ($40 million) allocated to acquisitions.

**Q&A Key Highlights**
- **Acquisition Pipeline**: $250 million pipeline, focusing on $150-200 million annual spend in existing states via master leases or new state portfolios of at least 500 beds.
- **Dividend Strategy**: Board prioritizes dividend growth (e.g., $0.16 per share in Q3 2025, 100% of net income) over share buybacks, despite 40% stock undervaluation.
- **Debt Management**: Series D bond refinancing in Q3 2026 to reduce 10% coupon to sub-6%, with $880 million balance sheet supporting 13.3% CAGR since 2020.
- **Operational Discipline**: 100% rent collection, 89% master lease portfolio, and 91.5% SNF concentration, compared to peers' declining SNF exposure.
- **Risk Mitigation**: Illinois (price-based reimbursement) laggard, but 1.25x EBITDARM coverage threshold protects margins; government shutdown has no financial impact, only regulatory delays.


Strawberry Fields REIT, Inc. (STRW) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

STRW

STRW fundamentals

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