Strawberry Fields Reit, Inc. · AMEX:STRW
Strawberry Fields Reit — Q1 2025 Earnings Presentation
31 slides from Strawberry Fields Reit's earnings presentation, May 9, 2025
Slide 1: Strawberry Fields REIT
Strawberry Fields REIT NYSE American: “STRW” May 9, 2025
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: Legal Disclaimer: Projections and Non-GAAP Measures
Use of Projections This presentation contains projected financial information with respect to the Company. Such projected financial information constitutes forward-looking information and is for illustrative purposes only. The assumptions and estimates underlying such financial forecast information
Slide 4: Legal Disclaimer
EBITDARM is a non-GAAP measure that for any period of determination, the aggregate net operating income of Tenant for such period to the extent derived from the operation of the Premises as reflected in their financials, adjusted to add thereto, to the extent allocable to the Premises for the applic
Slide 5: Company Highlights
Strawberry Fields REIT Company Highlights • The history of our Company began 21+ years ago when our CEO & Chairman Moishe Gubin & one of our Directors Michael Blisko began acquiring skilled nursing facilities in Indiana. • In 2015 Strawberry Fields REIT (the “Company”) was spun out as a Propco with
Slide 6: About Strawberry Fields REIT Inc.
About Strawberry Fields REIT Inc. (the “Company”) The Company is an income Our business is financed through a producing real estate investment 50.8% of our facilities are leased to related parties, combination of bond debt, HUD company that owns 121 properties including 67 facilities leased to affil
Slide 7: Portfolio Summary as of March 31, 2025
Portfolio Summary as of March 31, 2025* Demonstrated Operating Results and Financial Strength 121** $300M+ 51.7%*** Owned assets, plus one asset under a long-term lease Acquisition Pipeline Net Debt Leverage Ratio 14,750+** $16.8M 1.89x**** Q1 2025 Total number of beds TTM EBITDARM Rent Adjusted FFO
Slide 8: Proven Acquisition Strategy Driving Significant Growth in the Portfolio
Proven Acquisition Strategy Driving Significant Growth in the Portfolio 2005 – 2014: Jun 2024: We 2015: Our predecessor, 2015: We issued $68.3 2018: We issued $67.1 2021: We created an 2022: We Feb Moishe Gubin, our Aug & Sep 2024: Strawberry Fields REIT, million of Series A bonds million of Series
Slide 9: Portfolio Composition
Diversified Base of Consultants to Portfolio Composition Operators 132 Facilities 14,750+ total beds across 11 states (Illinois, Indiana, Arkansas, Tennessee, Kansas, Kentucky, Michigan, Missouri, Ohio, Oklahoma, and Texas) 12 buildings include two types of licensed facilities In order to leverage s
Slide 10: Experienced Management
Moishe Gubin, our Chairman and founder, has served as the Chief Executive Officer since inception of the Company. 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 health
Slide 11: Board
Moishe Gubin, Chairman, who also serves as our Chief Executive Officer. Michael Blisko, Director, who is the Chief Executive Officer of Infinity Healthcare Management. Mr. Blisko is a veteran of leading healthcare consultancy portfolios, as well as the architect in creating cutting edge leadership t
Slide 12: 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 8 SNF’s (1,111 beds) in financials (3+ years) and
Slide 13: Strong Relationships with Experienced Consulting Groups & Operators
Strong Relationships with Experienced Consulting Groups & Operators 13 Provides consulting services to 81 operators with 9,600+ * beds (including 68 Strawberry facilities with 7,645 Our 121 properties are leased to 132 operators that receive licensed beds) Founded in 2008 by Michael Blisko and
Slide 14: Skilled Nursing Industry in the U.S
Skilled Nursing Industry in the U.S
Slide 15: 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 16: 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 Pop
Slide 17: Age Demographic of the Average SNF Resident
Age Demographic of the Average SNF Resident* 83.5% 45.0% 40.0% 35.0% The services that a long- term resident receives at 30.0% a SNF is geared towards those who need constant 25.0% care or cannot take care 20.0% of themselves anymore. The percentage of 15.0% residents that are in SNF’s aged 65+ is 1
Slide 18: Projected Medicare $'s to be Spent on the Aging Population in SNF's
Increased Spend on 300 Aging Population Projected Medicare $’s to be Spent on the Aging Population in SNF’s $273.0 $262.1 250 4.63% $250.3 $238.6 CAGR $227.9 $207.9 $217.9 Due to the increase in life 200 $188.1 $197.6 expectancy in the United States, which will result $181.6 in a greater amount of t
Slide 19: Financial Highlights
a . ee a ; WBERRY Me FIELDS Financial Highlights
Slide 20: Adjusted FFO and Adjusted EBITDA Growth
Adjusted FFO and Adjusted EBITDA Growth 2019 – Projected 2025 Adjusted FFO Growth ($/thousands) Adjusted EBITDA Growth ($/thousands) 70,000 67,216 121,446 120,000 60,000 13.8% CAGR 52,668 55,825 12.2% 51,076 100,000 50,000 CAGR 90,632 43,935 79,342 80,000 38,844 73,790 40,000 AEBITDA 66,607 67,344 A
Slide 21: Assets Growth and Base Rent Growth
Assets Growth and Base Rent Growth 2019 – Projected 2025 Total Assets Growth (GAAP) CAGR ($/thousands) Average Base Rent CAGR ($/thousands)* 1,000,000 8.5% 1,018,034 140,000 135,842 CAGR 942,654 11.0% 120,000 800,000 798,338 CAGR 104,386 REAL ESTATE INVESTMENT 686,168 686,168 100,000 625,249 633,632
Slide 22: Growth In AFFO
Growth In AFFO Significant AFFO Growth driven Accretive reinvestment of cash flow, scaling operations and utilizing HUD debt Illustrative Reinvestment of Cash Flow AFFO/Share Growth1 2025 Estimated AFFO $67,211,000 Payout Ratio 46.3% $1.21 Retained Cash Flow $36,125,000 $1.02 $1.11 $0.96 Targeted Ac
Slide 23: Debt Structure as of March 31, 2025
Debt Structure as of March 31, 2025 Debt Maturity HUD Guaranteed Debt Years 29.4% $260.2MM 1-5 Weighted average cost: 3.91% Banks Secured Bank Debt $197.1MM Years 31.7% Interest rate: SOFR+3.5% 1-5 Bonds SF REIT LTD* Secured Bond Series C $71.9MM Years Interest rate: 5.70% 18.0% 11-20 SF REIT LTD* U
Slide 24: Strawberry Fields REIT Facility Statistics
SNF Facility Occupancy of 71.7%* SNF Average Facility Size of 105 Beds SNF PPD Average of 75 Residents** Strawberry Operators Payor Mix Fields REIT Private 6% Medicare 5% Other 10% Facility Statistics as of February 2025 Medicaid 79% *Based on 13,577 operating SNF beds. **PPD (“Per Patient Day”) is
Slide 25: Facility Operator & State Diversification
Facility Operator & State Diversification* Base Rent by Related Consultant Base Rent by State Texas 4% Landmark Other Other 5% 4% 10% Infinity of Illinois Reliant Care Management 12% Illinois 7% Missouri 17% 7% Kentucky Siena Healthcare Infinity of Indiana 19% 8% 27% Indiana 28% Hill Valley HC Tenne
Slide 26: Market Outperformance and Value Opportunity
Market Outperformance and Value Opportunity Standout Returns for STRW in the Last Year 1-Year Total Return vs. Peers (1) AFFO Trading Multiple(2) 16.6x 15.1x 57% 12.7x 12.7x 11.8x 30% 9.8x 27% 23% 22% 13% May-24 Feb-25 Nov-24 Jun-24 Aug-24 Sep-24 Jul-24 Dec-24 Mar-24 Mar-25 Apr-24 Oct-24 Jan-25 STRW
Slide 27: Low Payout Ratio with Solid Dividend Yield
Low Payout Ratio with Solid Dividend Yield STRW Boasts Lowest Payout Ratio Among Peers AFFO Payout Ratio(1) Dividend Yield(2) 89.3% 7.0% 6.9% 81.1% 81.4% 6.4% 77.9% 73.7% 4.9% 4.7% 4.7% 46.3% STRW NHI CTRE SBRA LTC OHI CTRE STRW NHI LTC SBRA OHI Note: Please refer to the final page of this presentat
Slide 28: Skilled Nursing Focus Magnified
Skilled Nursing Focus Magnified STRW is the Closest Pure-Play SNF Real Estate Investor in the Market SNF Properties as a % of Portfolio(1) 90.9% 76.3% 75.9% 64.2% 37.1% 34.9% STRW CTRE SBRA OHI NHI LTC 1) Represents owned portfolios as of Q1 2025. 28
Slide 29: Portfolio Strength Paired with Accretion
Portfolio Strength Paired with Accretion Strong SNF Performance with Higher AFFO/Share Growth than Peers SNF TTM EBITDARM Coverage(1) 2020-2025E AFFO/Share CAGR(2) 3.06x 10.0% 2.90x 2.19x 2.04x 1.88x 1.89x 3.8% -1.4% -1.1% -1.6% -3.1% SBRA NHI OHI LTC CTRE STRW OHI STRW LTC SBRA CTRE NHI Note: EBITD
Slide 30: Contact
Moishe Gubin Jeff Bajtner Chairman & CEO Chief Investment Officer Mgubin@sfreit.com Jbajtner@sfreit.com 6101 Nimtz Parkway South Bend, IN 46628 574.807.0800
Slide 31: Non-GAAP Measure Reconciliation
Non-GAAP Measure Reconciliation Three Months Ended Three Months Ended Adjustments to FFO ("AFFO"): March 31, Adjustments to EBITDA ("AEBITDA"): March 31, (dollars in $1,000s) 2025 2024 (dollars in $1,000s) 2025 2024 Net income $ 6,991 $ 5,992 Net income (loss) $ 6,991 $ 20,244 Depreciation and amort
Strawberry Fields REIT — Q1 2025 Earnings Presentation on 6ix