Slide 1: Strawberry Fields REIT
Strawberry Fields REIT NYSE American: “STRW” August 12, 2024
Slide 2: 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 and is for illustrative purposes only. The assumptions and estimates underlying such financial forecast information
Slide 4: Legal Disclaimer
We believe that the use of FFO, AFFO, EBITDA and Adjusted EBITDA (which can be defined as EBITDA net of the effects of straight-line rent, gain/loss on currency translation costs and the effects of credit provision for doubtful accounts) are helpful to our investors as these metrics are used by mana
Slide 5: Strawberry Fields REIT Company Highlights
Strawberry Fields REIT Company Highlights • The history of our Company began 20+ years ago when our CEO & Chairman Moishe Gubin & one of our Director’s 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 59.6% of our facilities are leased to related parties, combination of bond debt, HUD company that owns 98 properties and including 65 facilities leased to af
Slide 7: Portfolio Summary as of June 30, 2024
Portfolio Summary as of June 30, 2024* Demonstrated Operating Results and Financial Strength 98 $425M+ 56%*** Owned assets, plus three assets under long term leases Acquisition Pipeline Portfolio Leverage 12,527 $56.2M** 1.65x**** Q2 Annualized Total number of beds TTM EBITDARM Rent Adjusted FFO 202
Slide 8: Proven Acquisition Strategy Driving Significant Growth in the Portfolio
Proven Acquisition Strategy Driving Significant Growth in the Portfolio 2015: Our predecessor, 2015: We issued $68.3 2018: We issued $67.1 2021: We issued $64.0 2021: We created an Jan 2024: 2022: We Feb 2023: 2005 – 2014: Moishe Strawberry Fields REIT, million of Series A bonds million of Series B
Slide 9: Portfolio Composition
Diversified Base of Consultants to Portfolio Composition Operators 110 Facilities 12,527 total beds across 9 states (Illinois, Indiana, Arkansas, Tennessee, Kentucky, Texas, Ohio, Oklahoma, and Michigan) 9 buildings include two types of licensed facilities In order to leverage scale and efficiencies
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. 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 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 6 facilities in Tennessee and financials (3+ years
Slide 13: Strong Relationships with Experienced Consulting Groups & Operators
Strong Relationships with Experienced Consulting Groups & Operators 13 Provides consulting services to 88 operators with over * 10,000 beds (including 64 Strawberry facilities with 5,414 Our 98 properties are leased to 110 operators that receive consulting licensed beds) Founded in 2008 by Mic
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 #039;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 $181.6 in a greater amount of t
Slide 19: Financial Highlights
a . ee a ; WBERRY Me FIELDS Financial Highlights
Slide 20: Adjusted FFO and Adjusted EBITDA Growth
Adjusted FFO and Adjusted EBITDA Growth 2018 – Projected 2024 Adjusted FFO Growth ($/thousands) Adjusted EBITDA Growth ($/thousands) 60,000 100,000 56,717 52,668 90,000 10.7% 89,821 17.1% 51,076 CAGR 50,000 79,342 CAGR 80,000 73,790 43,935 66,607 67,344 38,844 70,000 40,000 61,045 60,000 AEBITDA 30,
Slide 21: Assets Growth and Base Rent Growth
Assets Growth and Base Rent Growth 2018 - Projected 2024 Total Assets Growth (GAAP) CAGR ($/thousands) Average Base Rent CAGR ($/thousands)* 120,000 900,000 6.6% 798,338 822,163 800,000 CAGR 100,000 8.8% 102,405 700,000 686,168 686,168 CAGR 86,839 625,249 633,632 82,158 77,738 REAL ESTATE INVESTMENT
Slide 22: Industry Leading Growth In AFFO
Industry Leading 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 2024 Estimated AFFO $56,717,000 Payout Ratio 46.6% $1.10 $1.02 $0.96 Retained Cash Flow $30,305,000
Slide 23: Debt Structure as of June 30, 2024
Debt Structure as of June 30, 2024 Debt Maturity Years HUD Guaranteed Debt 1-5 Banks 29.4% $266.1MM Weighted average cost: 3.91% Years 1-5 22.5% Secured Bank Debt Bonds $163.0MM Interest rate: SOFR+3.5% Years 11.9% 11-20 Secured Bond Series C HUD $58.7MM Interest rate: 5.70% 20+ HUD 36.1% Unsecured
Slide 24: Strawberry Fields REIT Facility
SNF Facility Occupancy of 64.9%* SNF Average Facility Size of 114 Beds SNF PPD Average of 74 Residents** Strawberry Operators Payor Mix Fields REIT Facility Medicare 6% Other Private 9% 15% Statistics as of May 2024 Medicaid 70% *Based on SNF licensed beds. **PPD (“Per Patient Day”) is a metric used
Slide 25: Facility Operator & State Diversification
Facility Operator & State Diversification* Base Rent by Related Consultant Base Rent by State Other Other 6% 9% Infinity Healthcare Kentucky Management of 12% Illinois Siena Healthcare Illinois 24% 11% 20% Infinity Healthcare Tennessee Landmark Management of 17% 14% Tennessee 16% Indiana Infinity He
Slide 26: 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 27: Non-GAAP Measure Reconciliation
Non-GAAP Measure Reconciliation Adjustments to FFO ("AFFO"): Adjustments to EBITDA ("AEBITDA"): (dollars in $1,000s) Q2 2024 2023 (dollars in $1,000s) Q2 2024 2023 Net income $ 13,032 $ 20,244 Net income (loss) $ 13,032 $ 20,244 Depreciation and amortization 16,325 29,235 Depreciation and amortizati