Slide 1: Strawberry Fields REIT
Strawberry Fields REIT “STRW” November 14, 2022
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: 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 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 9/30/2022
Portfolio Summary as of 9/30/2022 Demonstrated Operating Results and Financial Strength 78 $686M 5.9x** Owned assets, plus one asset Net Debt to Q3 2022 under long term lease Total Cost of Real Estate Adjusted EBITDA* 10,426 $71.4M Covid-19 Annualized Q3 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 2015: Our predecessor, 2018: We issued $67.1 2021: We issued $64.0 2021: We created an 2015: We issued $68.3 2022: We Strawberry Fields REIT, million of Series B million of Series C UPREIT structure, with million of Series A beg
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 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 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 Pop
Slide 15: 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 demographic of 15.0% residents that are in SNF’s aged 65+ is
Slide 16: 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 $181.6 in a greater amount of t
Slide 17: Financial Highlights
a . ee a ; WBERRY Me FIELDS Financial Highlights
Slide 18: Projected Adjusted EBITDA and Adjusted FFO Growth 2018-2022
Projected Adjusted EBITDA and Adjusted FFO Growth 2018- Projected 2022 Projected Adjusted EBITDA Growth ($/thousands) Projected Adjusted FFO Growth ($/thousands) 80,000 60,000 9.89% 66,607 67,344 71,374 70,000 CAGR 50,000 21.52% 48,033 60,000 61,045 CAGR 43,935 38,844 48,942 40,000 ADJUSTED EBITDA 5
Slide 19: Assets Growth and Base Rent Growth 2017-Projected 2022
Assets Growth and Base Rent Growth 2017-Projected 2022 Total Assets Growth (GAAP) CAGR ($/thousands) Projected Average Base Rent CAGR ($/thousands) 800,000 90,000 82,329 7.05% 686,168 686,168 80,000 7.61% 77,738 700,000 CAGR 625,249 633,632 CAGR 72,763 75,323 70,000 600,000 560,705 61,621 REAL ESTAT
Slide 20: Debt Structure as of September 30, 2022
Debt Structure as of September 30, 2022 Debt Maturity HUD guaranteed Debt $277.6MM Years 1-5 Weighted average cost: 3.88% 23.06% Banks Secured Bank Debt Years $106.1MM 1-5 16.59% Interest rate: SOFR+3.5%* Bonds Years Unsecured Bond Series A 11-20 8.08% $20.1MM HUD Interest rate: 6.4% 20+ 52.27% HUD
Slide 21: Facility Statistics as of July 2022
SNF Facility Occupancy of 66.2%* SNF Average Facility Size of 130 Beds SNF PPD Average of 86 Residents** Operators Payor Mix Facility Statistics as Private 6% Insurance Medicare 13% 8% of July 2022 Medicaid 74% *Based on SNF licensed beds. **PPD (“Per Patient Day”) is a metric used in the SNF indust
Slide 22: Facility Operator & State Diversification
Facility Operator & State Diversification Base Rent by Related Consultant Base Rent 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 Management of T
Slide 23: 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