Earnings

Strawberry Fields Posts a $14.8 Million Third-Quarter Loss

The Tip Desk · November 11, 2026 · 3 min read

A $24.6 million foreign-currency loss on bond retirements flipped the skilled-nursing landlord to a $0.26 a share loss as rental revenue reached $39.99 million.

Strawberry Fields REIT, Inc. (STRW), a triple-net landlord of skilled nursing and post-acute facilities, swung to a net loss of $14.76 million in the three months ended September 30, 2026, from net income of $8.87 million a year earlier. The company said the reversal was driven by a $24.61 million foreign currency transaction loss tied to retiring Bond Series A, Series C and Series D.

Net loss attributable to common stockholders was $3.63 million, or $0.26 a share, versus income of $2.02 million, or $0.16 a share, in the year-ago quarter.

Rental revenues were $39.99 million, up 0.7% from $39.71 million a year earlier. The company attributed the increase primarily to additional rental income from recently acquired properties and lease renewals, partially offset by the disposition of certain properties. Sequential rental revenue slipped from $40.05 million in the June quarter, when year-over-year growth had been 6%.

Depreciation and amortization expense fell $0.7 million, or 6%, primarily due to the sale of two properties and certain assets becoming fully depreciated, partially offset by depreciation on properties acquired since the third quarter of 2025. General and administrative expenses rose to $1.91 million from $1.49 million a year earlier, on higher executive compensation and professional fees.

Interest expense, net, declined to $12.86 million from $13.01 million a year earlier after the July 2026 payoff of Bond C and modestly lower interest rates on the company’s bank loans.

The portfolio expanded to 134 healthcare properties and 15,655 licensed beds as of September 30, 2026, from 133 properties and 15,496 beds at June 30. Aggregate annualized average base rent under the leases was approximately $144.1 million. The company holds fee title to 133 properties and one under a long-term lease across Arkansas, Illinois, Indiana, Kansas, Kentucky, Missouri, Ohio, Oklahoma, Tennessee and Texas.

The third-quarter bond retirements reshaped the capital structure. Series A Bonds, which had an outstanding balance of NIS 302.2 million ($101.5 million) at June 30, 2026, were retired in the third quarter. Remaining outstanding bonds were Series B, Series C and Series D, with Series B at NIS 328.2 million ($107.2 million) at September 30. Total indebtedness declined to about $763.2 million from about $810.2 million at June 30, with commercial mortgage loans at $302.3 million and Series B, C and D bonds at $177.2 million.

Cash and cash equivalents and restricted cash fell to $38.8 million from $77.6 million at June 30. For the nine months ended September 30, 2026, financing used $71.3 million, including $189.2 million of bond retirements and $53.9 million of bond repayments, offset by $172.2 million of senior debt proceeds and $71.5 million of net bond-issuance proceeds. Operating cash flow for the nine months was $55.2 million.

On June 18, 2026, the company closed a $100.0 million term loan and a revolving line of credit with commitments of up to $200.0 million, refinancing about $160.0 million of existing bank debt. In September it borrowed an additional $140 million on the revolver and paid down $30 million, leaving RLOC balances of $170.0 million versus $60.0 million at June 30. The SOFR-plus-2.75% rate with a 5.50% floor was 6.66% at September 30. On September 22 it entered a $30.0 million commercial mortgage loan with a June 2031 balloon, collateralized by eight properties, at the same SOFR-plus-2.75% structure.

Balloon-payment obligations through 2031 were restated at $435.7 million across five maturities after the June refinancing and September loan. The company said it expects to generate sufficient positive cash flow from operations to meet ongoing debt service and REIT distribution requirements and to refinance debt to the extent necessary for those balloons.