Strawberry Fields REIT announced financial results for the quarter ending September 30, 2025, revealing substantial growth through strategic healthcare property acquisitions. The self-administered Real Estate Investment Trust specializing in healthcare-related properties reported increases in funds from operations, adjusted funds from operations, rental income, and net income compared to the same period in 2024. The company's leadership team discussed these results during an earnings call with analysts, highlighting the impact of recent property acquisitions on the REIT's financial performance.
The most significant transaction involved acquiring nine skilled nursing facilities in Missouri for $59 million. These facilities contain 686 beds collectively, with eight properties leased to the Tide Group and the remaining facility leased to an affiliate of Reliant Care Group, LLC. This acquisition substantially increased annual rental income, adding $5.5 million in annual rents for Tide Group and $0.6 million for Reliant Care Group. Both lease agreements include provisions for 3% annual rent increases, providing predictable revenue growth for the REIT. Additional details about this transaction are available at https://ibn.fm/u29pL.
Beyond the Missouri portfolio acquisition, Strawberry Fields REIT expanded its presence in Oklahoma with the purchase of an 80-bed skilled nursing facility for $4.25 million. This property generates initial annual base rents of $0.4 million and also includes 3% annual rent escalations. The company further strengthened its Missouri holdings by acquiring another healthcare facility featuring 108 skilled nursing beds and 16 assisted living beds for $5.3 million. This facility was incorporated into an existing master lease with the tenant, producing $0.5 million in annual base rents with the same 3% annual increase structure.
All three acquisition transactions were funded using the company's working capital, demonstrating Strawberry Fields REIT's strong financial position and ability to execute strategic growth initiatives without requiring external financing. The consistent pattern of 3% annual rent increases across all new acquisitions provides investors with visibility into future revenue streams and supports the REIT's ability to deliver sustainable dividend growth. The company maintains an active newsroom where investors can access the latest updates and information at https://ibn.fm/STRW.
These strategic moves position Strawberry Fields REIT for continued expansion in the healthcare real estate sector, particularly in skilled nursing facilities where demographic trends support long-term demand growth. The concentration of acquisitions in Missouri and Oklahoma reflects the company's targeted approach to market selection and portfolio diversification. The combination of immediate rental income increases and built-in annual escalators provides a dual mechanism for value creation that benefits both current operations and long-term shareholder returns.
