Strawberry Fields REIT, Inc. (NYSE AMERICAN: STRW) announced first-quarter 2026 financial results showing improvements in key operating metrics, including funds from operations (FFO) and adjusted funds from operations (AFFO). The company also disclosed progress on a $300 million corporate credit facility expected to close in the second quarter. The news reflects the real estate investment trust's focus on strengthening its balance sheet and expanding its portfolio of healthcare properties.
For the quarter ended March 31, 2026, Strawberry Fields reported FFO of $20.9 million, or $0.38 per share, compared to $18.3 million, or $0.33 per share, in the same period last year. AFFO rose to $18.8 million, or $0.34 per share, from $16.8 million, or $0.30 per share. Net income increased to $9.5 million from $7.0 million in the prior-year quarter. Rental income grew to $40.0 million from $37.3 million, and the company achieved 100% collection of contractual rents during the period.
The stronger results were driven by the company's portfolio of 143 healthcare facilities, which include 131 skilled nursing facilities, 10 assisted living facilities, and two long-term acute care hospitals. These properties span 10 states: Arkansas, Illinois, Indiana, Kansas, Kentucky, Missouri, Ohio, Oklahoma, Tennessee, and Texas. The portfolio comprises more than 15,600 beds, providing a diversified revenue base.
In addition to the quarterly results, Strawberry Fields announced that it has signed a term sheet for a $300 million corporate credit facility. The facility, expected to close in the second quarter of 2026, is intended to refinance existing debt and support the company's acquisition growth strategy. This move signals management's confidence in the company's financial position and its ability to capitalize on opportunities in the healthcare real estate sector.
For investors, the combination of improved FFO and AFFO, along with the planned credit facility, suggests that Strawberry Fields is positioned for continued expansion. The company's ability to collect 100% of rents underscores the stability of its tenant base, which is crucial for REITs that rely on consistent cash flows. The $300 million facility provides additional liquidity to pursue acquisitions, potentially increasing the portfolio's size and geographic reach. However, investors should monitor the terms of the credit facility and how the company deploys the capital, as leverage levels and property performance will be key factors in future returns.
The broader implications for the healthcare REIT sector include a potential trend toward consolidation and refinancing as companies seek to lock in favorable rates and expand their footprints. Strawberry Fields' focus on skilled nursing facilities, which face regulatory and demographic pressures, may benefit from an aging population and increased demand for long-term care services.
For further details, the full press release is available at https://nnw.fm/C5Ked. More information about Strawberry Fields REIT can be found in the company's newsroom at https://nnw.fm/STRW.
