STRW Filings — Strawberry Fields Reit, Inc. - FilingSpy
STRW
Strawberry Fields Reit, Inc.
A real estate investment trust that owns and leases healthcare properties — skilled nursing facilities, assisted living residences, and long-term acute care hospitals — to operators who run them under triple-net leases. Incorporated in Maryland in 2019, it traces back to a 2014 predecessor and is led by founder Moishe Gubin. Its name comes from the Beatles' "Strawberry Fields Forever," chosen because the facilities' residents are mostly baby boomers, a generation the founder figured would be Beatles fans.
Interest expense fell for a second straight quarter, the first sustained decline in over two years.
Interest costs are no longer climbing. rose 5.8% to $40.0 million and reached $2.2 million as net fell 10.2% from a year ago, helped by a June refinancing that replaced $160 million of bank debt. The company still faces $229 million in bond maturities this year.
Key takeaways
Net fell 10.2% to $10.2 million, the second consecutive quarterly decline after a 4.4% drop in Q1 2026, marking the first sustained easing of interest costs since at least early 2023.
Rental rose 5.8% to $40.0 million, driven by property acquisitions added to the Texas and Missouri master leases and by lease renewals.
was $2.2 million, up from $2.0 million a year ago, as the gain and lower interest costs were partly offset by higher general and administrative expenses.
Section summaries
Management's Discussion and Analysis
Rental revenue grew 6% to $80M in H1 2026 driven by acquisitions, while higher G&A and interest costs partially offset gains.
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Rental revenues rose 6% to $80.0M for H1 2026 and $40.0M for Q2 2026, driven by property acquisitions and lease renewals.
General and administrative expenses increased 42% to $5.8M for H1 2026, primarily due to costs from new credit facilities and higher compensation.
In June 2026 the company closed a $100 million term loan and a $200 million , using the proceeds to refinance $160 million of existing bank debt, which contributed to the lower .
fell 18.7% to $24.2 million, though the six-month total of $41.7 million was up from $36.5 million in the first half of 2025.
rose 2.0% to $810.2 million, with $162.6 million in floating-rate debt; a 100-basis-point rise in SOFR would reduce annual cash flow by approximately $1.6 million.
What changed
The $229.3 million in Series A, C, and D bond balloon payments due in 2026 flagged last quarter remains unresolved, though the June refinancing of $160 million in bank debt suggests progress on managing near-term maturities.
The decline in net flagged as a potential one-quarter effect in Q1 2026 extended into Q2, with a further 10.2% drop, indicating the easing is sustained rather than a single-quarter item.
The $4.1 million decrease in and accrued liabilities that reduced in Q1 2026 did not repeat; operating cash flow rose 38.5% sequentially to $24.2 million, suggesting the Q1 drain was a timing item.
fell another 35.6% sequentially to $32.6 million, continuing the erosion from accumulated other comprehensive loss and distributions to non-controlling interests that began in 2025.
What to watch
Whether the company refinances or repays the $229.3 million in Series A, C, and D bond balloon payments due in 2026, and what that does to now that the June refinancing has addressed bank debt.
Whether the decline in net is sustained in subsequent quarters now that the $160 million bank debt refinancing is complete and the full effect flows through the income statement.
Whether , down to $32.6 million from $83.6 million at year-end 2024, stabilizes or continues to erode through accumulated other comprehensive loss.
Whether the new $100 million term loan and $200 million lead to a material increase in acquisition activity and rental in the second half of 2026.
attributable to common stockholders grew 25% to $4.4M for H1 2026, helped by higher rental income and lower .
Total indebtedness stood at $810.2M as of June 30, 2026, with $647.6M in fixed-rate and $162.6M in variable-rate debt.
The company closed a $100M term loan and a $200M revolving line of credit in June 2026, refinancing $160M of existing bank debt.
reached $41.0M for H1 2026, up from $38.2M, while Adjusted was $36.9M after adjustments.