Slide 1: Strawberry Fields REIT
Strawberry Fields REIT September 12, 2022
Slide 2: Legal Disclaimer
Disclaimer The information contained in this presentation does not purport to be all-inclusive and neither the Company nor any of its subsidiaries or their respective stockholders, affiliates, representatives, control persons, partners, members, managers, directors, officers, employees, advisers or
Slide 3: Use of Projections and Non-GAAP Disclaimer
Use of Projections This presentation contains projected financial information with respect to the Company. Such projected financial information constitutes forward-looking information, is for illustrative purposes only and should not be relied upon as being predictive of future results. The assumpti
Slide 4: About Strawberry Fields REIT Inc. (the "Company")
About Strawberry Fields REIT Inc. (the “Company”) The Company is an income Our business is financed through a producing real estate investment 48.8% of our properties are leased to related combination of bond debt, HUD company that owns 78 properties and parties, including 41 properties leased to af
Slide 5: Portfolio Summary as of 6/30/2022
Portfolio Summary as of 6/30/2022 Demonstrated Operating Results and Financial Strength 78 $686M 6.1x** Owned assets, plus one asset Net Debt to Q2 2022 under long term lease Total Cost of Real Estate Adjusted EBITDA* 10,426 $69.4M Covid-19 Annualized Q2 No material impact on Total number of beds Ad
Slide 6: Proven Acquisition Strategy Driving Significant Growth in the Portfolio
Proven Acquisition Strategy Driving Significant Growth in the Portfolio 2021: We created an 2015: We issued $68.3 2018: We issued $67.1 2021: We issued $64.0 2015: Our predecessor, Strawberry UPREIT structure, with million of Series A bonds million of Series B bonds million of Series C bonds 2005 –
Slide 7: Portfolio Composition
Diversified Base of Consultants to Portfolio Composition Operators 79 Buildings 10,426 total beds across 9 states (Illinois, Indiana, Arkansas, Tennessee, Kentucky, Texas, Ohio, Oklahoma, and Michigan) 6 buildings include two types of licensed facilities In order to leverage scale and efficiencies,
Slide 8: Experienced Management
Moishe Gubin, our Chairman and founder, has served as the Chief Executive Officer since 2014. From 2004 to 2014, Mr. Gubin was the Chief Financial Officer and Manager of Infinity Healthcare Management, LLC, a company engaged in managing skilled nursing facilities and other healthcare facilities. Nah
Slide 9: Board
Moishe Gubin, Chairman, who also serves as our Chief Executive Officer. Essel Bailey, Director, has spent the last 50 years engaged in the public and private healthcare capital markets, first as a lawyer specializing in corporate and real estate finance and then as an executive of several healthcare
Slide 10: Disciplined Underwriting and Acquisition Strategy
Disciplined Underwriting and Acquisition Strategy Investment Criteria Due Diligence Asset Management Recent Acquisitions 10% projected ROI Diligence includes review of operator-level Analysis of tenant-furnished operator-level • Acquisition of 231 bed SNF in Illinois for financials (3+ years)
Slide 11: Strong Relationships with Experienced Consulting Groups & Operator Overview
Strong Relationships with Experienced Consulting Groups & Operator Overview 11 Provides consulting services to 48 operators who lease * properties from Strawberry in IL, IN, TN (41 Strawberry facilities with 6,035 licensed beds) Our 79 properties are leased to 78 operators that receive consultin
Slide 12: Skilled Nursing Industry in the U.S
Skilled Nursing Industry in the U.S
Slide 13: Nursing Home Industry in the U.S - Summary
Nursing Home Industry in the U.S - Summary High barriers to entry: Federal and state-level -Significant set-up costs subsidies through -Regulatory restrictions Medicaid & Medicare -Specialized knowledge The Company specializes in a growing market that’s historically proven to be recession proof. Cas
Slide 14: Trends in population
% of total population Trends in 25.0% 20.2% population 19.3% 20.0% 20.0% 16.1% age 15.0% 13.0% 65+ As a result of an increase 10.0% 2.3% 3.5% 4.3% in life expectancy in the United States, by 2030, 5.0% 1.9% 1.9% age 0.0% 85+ 2010 2020 2030 2040 2050 the population of individuals aged 65 and Total Po
Slide 15: COVID-19 Effects and Trends in Occupancy
Significant federal government COVID-19 Effects and Trends in Occupancy support for nursing home operators 2.00% 0.00% -2.00% At the onset of the epidemic, there Change in Occupancy from March 1, 2020 was a 13% decrease in occupancy at -4.00% our facilities due to the decrease in -6.00% referrals of
Slide 16: Financial Highlights
a . ee a ; WBERRY Me FIELDS Financial Highlights
Slide 17: Projected Adjusted EBITDA and Adjusted FFO Growth 2018-Projected 2022
Projected Adjusted EBITDA and Adjusted FFO Growth 2018- Projected 2022 Projected Adjusted EBITDA Growth ($/thousands) Projected Adjusted FFO Growth ($/thousands) 80,000 60,000 9.13% 69,415 70,000 67,344 22.28% CAGR 66,607 50,000 49,242 61,045 CAGR 43,935 60,000 40,000 38,844 48,942 50,000 30,916 EBI
Slide 18: Assets Growth and Base Rent Growth 2017-Projected 2022
Assets Growth and Base Rent Growth 2017-Projected 2022 Total Assets Growth (GAAP) CAGR ($/thousands) Projected Average Base Rent CAGR ($/thousands) 800,000 100,000 7.05% 686,168 90,000 9.41% 86,939 89,474 686,168 84,091 700,000 CAGR 633,632 CAGR 81,258 625,249 80,000 600,000 560,705 70,000 REAL ESTA
Slide 19: Debt Structure as of June 30, 2022
Debt Structure as of June 30, 2022 Debt Maturity HUD guaranteed Debt Years $279.5MM 1-5 21.96% Weighted average cost: 3.88% Banks Years Secured Bank Debt 1-5 20.67% $107.0MM Bonds Interest rate: SOFR+3.5% % Years 11-20 9.01% Unsecured Bond Series A HUD $39.7MM Interest rate: 6.4% 20+ 48.36% HUD Secu
Slide 20: Facility Statistics as of June 2022
Facility Occupancy*of 65.1%** SNF Average Facility Size of 130 Beds SNF PPD Average of 85 Residents*** Operators Payor Mix Facility Statistics as Private 6% Insurance Medicare 13% 8% of June 2022 Medicaid 73% *Based on SNF licensed beds as of June 2022. **As a result of the COVID-19 pandemic, SNF oc
Slide 21: Facility Operator & State Diversification
Facility Operator & State Diversification Base Rent divided by Related Consultant Base Rent divided by State Other 8% Other 6% Kentucky 10% Oasis Health Care Infinity Healthcare Group Management of 13% Illinois Illinois 31% 26% Arkansas 13% Benchmark under Landmark brand name 17% Infinity Healthcare
Slide 22: Contact
Nani Eingal Moishe Gubin Jeff Bajtner CFO Chairman & CEO Senior Investment Officer Neingal@SFReit.com Mgubin@SFReit.com Jbajtner@SFReit.com 6101 Nimtz Parkway South Bend, IN 46628 574.807.0800