Strawberry Fields REIT reported fourth‑quarter 2025 results with revenue of $40.1 million, slightly below the consensus estimate of $40.30 million, and earnings per share of $0.34, a clear beat over analyst expectations that ranged from $0.143 to $0.21. The company’s revenue miss was modest, while the EPS beat was driven by disciplined cost management and a favorable mix of long‑term, triple‑net leases that maintained high occupancy rates.
The company’s Funds From Operations (FFO) rose 32% year‑over‑year to $15.2 million, and Adjusted FFO (AFFO) increased 30% to $14.8 million, underscoring strong operating leverage. A quarterly dividend of $0.16 per share was declared, and the company announced continued portfolio expansion with acquisitions in Missouri, Oklahoma, and Kentucky, adding 12 new skilled nursing facilities under long‑term leases.
Chairman and CEO Moishe Gubin highlighted the company’s performance, stating, "2025 was the best year Strawberry Fields has had since its inception 10+ years ago. The FFO growth remains consistently strong, in excess of 13%, and the Company's footprint has continued to grow into new states and with new third‑party operators. In 2026, the Company will continue to look for accretive deals, while maintaining its disciplined acquisition approach that has led to these strong results." He added, "As I commented at the Annual Shareholder Meeting, collectively across our financials metrics; we have shown nice growth when comparing Q1 2025 to Q1 2024. This growth proves that our disciplined approach is paying off and we're not changing. We've demonstrated that we can deliver steady, if not strong, earnings for many years now and there is no reason we should not maintain similar earnings well into the future."
After the release, after‑hours trading was mixed, with some market participants noting the EPS beat while others focused on the slight revenue miss. The company’s strong FFO and AFFO growth, coupled with its disciplined acquisition strategy, helped temper concerns about the revenue shortfall.
Strawberry Fields operates in the healthcare real‑estate sector, benefiting from an aging population and increasing demand for skilled nursing facilities. The company’s recent financing of Series B bonds on the Tel Aviv Stock Exchange provides additional capital for future acquisitions, while its 100% contractual rent collection rate signals robust cash‑flow stability. The Q4 results reinforce the company’s trajectory of expanding footprint and improving profitability, positioning it well for continued growth in the coming year.
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