Slide 1: Strawberry Fields REIT
Strawberry Fields REIT NYSE American: “STRW” November 8, 2024
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: Use of 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 60.2% of our facilities are leased to related parties, combination of bond debt, HUD company that owns 103 properties including 68 facilities leased to affil
Slide 7: Portfolio Summary as of September 30, 2024
Portfolio Summary as of September 30, 2024* Demonstrated Operating Results and Financial Strength 103 $400M+ 47.8%*** Owned assets, plus one asset under a long-term lease Acquisition Pipeline Net Debt Leverage Ratio 12,889 $57.1M** 1.71x**** Q3 Annualized Total number of beds TTM EBITDARM Rent Adjus
Slide 8: Proven Acquisition Strategy Driving Significant Growth in the Portfolio
Proven Acquisition Strategy Driving Significant Growth in the Portfolio 2005 – 2014: 2015: Our predecessor, 2015: We issued $68.3 2018: We issued $67.1 2021: We issued $64.0 2021: We created an 2022: We Moishe Gubin, our Feb 2023: Aug & Sep 2024: Strawberry Fields REIT, million of Series A bonds mil
Slide 9: Portfolio Composition
Diversified Base of Consultants to Portfolio Composition Operators 114 Facilities 12,889 total beds across 9 states (Illinois, Indiana, Arkansas, Tennessee, Kentucky, Texas, Ohio, Oklahoma, and Michigan) 10 buildings include two types of licensed facilities In order to leverage scale and efficiencie
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 19 SNF’s and 5 ALF’s (1,852 financials (3+ years)
Slide 13: Strong Relationships with Experienced Consulting Groups & Operators
Strong Relationships with Experienced Consulting Groups & Operators 13 Provides consulting services to 93 operators with 10,600+ * beds (including 68 Strawberry facilities with 7,645 Our 98 properties are leased to 114 operators that receive consulting licensed beds) Founded in 2008 by Michael
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 $181.6 in a greater amount of t
Slide 19: Financial Highlights
a . ee a ; WBERRY Me FIELDS Financial Highlights
Slide 20: Adjusted FFO and Adjusted EBITDA Growth
Adjusted FFO and Adjusted EBITDA Growth 2019 – Projected 2024 Adjusted FFO Growth ($/thousands) Adjusted EBITDA Growth ($/thousands) 60,000 100,000 57,103 51,076 52,668 90,000 8.4% 91,343 50,000 13.1% CAGR 79,342 CAGR 43,935 80,000 73,790 66,607 67,344 38,844 70,000 40,000 61,045 60,000 30,916 AEBIT
Slide 21: Assets Growth and Base Rent Growth
Assets Growth and Base Rent Growth 2019 - Projected 2024 Total Assets Growth (GAAP) CAGR ($/thousands) Average Base Rent CAGR ($/thousands)* 900,000 120,000 844,154 6.2% 798,338 104,830 800,000 CAGR 7.6% 100,000 700,000 686,168 686,168 CAGR 86,839 625,249 633,632 82,158 REAL ESTATE INVESTMENT 600,00
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 2024 Estimated AFFO $57,103,000 Payout Ratio 46.7% $1.09 $1.02 $0.96 Retained Cash Flow $30,439,000 $0.82 $0.75 Targe
Slide 23: Debt Structure as of September 30, 2024
Debt Structure as of September 30, 2024 Debt Maturity HUD Guaranteed Debt Years $264.1MM 1-5 27.7% Weighted average cost: 3.91% Banks Secured Bank Debt $164.7MM Years 27.9% Interest rate: SOFR+3.5% 1-5 Bonds SF REIT LTD* Secured Bond Series C $52.6MM Years Interest rate: 5.70% 13.6% 11-20 SF REIT LT
Slide 24: Strawberry Fields REIT Facility Statistics
SNF Facility Occupancy of 70.4%* SNF Average Facility Size of 106 Beds SNF PPD Average of 74 Residents** Strawberry Operators Payor Mix Fields REIT Private 9% Medicare 6% Other 16% Facility Statistics as of August 2024 Medicaid 69% *Based on 11,496 operating SNF beds. **PPD (“Per Patient Day”) is a
Slide 25: Facility Operator & State Diversification
Facility Operator & State Diversification* Base Rent by Related Consultant Base Rent by State Other Other 9% Infinity 7% Healthcare Management of Illinois Siena Healthcare Illinois Kentucky 23% 20% 10% 11% Infinity Healthcare Tennessee Landmark Management of 17% 13% Tennessee 16% Indiana Infinity He
Slide 26: Contact: Moishe Gubin and Jeff Bajtner
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) Q3 2024 2023 (dollars in $1,000s) Q3 2024 2023 Net income $ 19,933 $ 20,244 Net income (loss) $ 19,933 $ 20,244 Depreciation and amortization 24,666 29,235 Depreciation and amortizati