Slide 1: Strawberry Fields REIT
Strawberry Fields REIT NYSE American: “STRW” June 1, 2023
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 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: 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 49.3% of our facilities are leased to related parties, combination of bond debt, HUD company that owns 78 properties and including 41 facilities leased to af
Slide 6: Portfolio Summary
Portfolio Summary* Demonstrated Operating Results and Financial Strength 78** $694M** 5.5x**** Owned assets, plus one asset Net Debt to Q1 2023 under long term lease Total Cost of Real Estate Adjusted EBITDA* 10,351** $18.4M Covid-19 Q1 No material impact on Total number of beds Adjusted EBITDA rent
Slide 7: 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 2022: We Strawberry Fields REIT, million of Series A million of Series B million of Series C UPREIT structure, with 200
Slide 8: Diversified Base of Consultants to Operators Portfolio Composition
Diversified Base of Consultants to Portfolio Composition Operators 79 Buildings 10,351 total beds across 9 states (Illinois, Indiana, Arkansas, Tennessee, Kentucky, Texas, Ohio, Oklahoma, and Michigan) 4 buildings include two types of licensed facilities In order to leverage scale and efficiencies,
Slide 9: 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 10: 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 11: 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+ year
Slide 12: Strong Relationships with Experienced Consulting Groups & Operators
Strong Relationships with Experienced Consulting Groups & Operators 12 Provides consulting services to 72 operators with over * 8,200 beds in IL, IN & TN (including 41 Strawberry facilities with 5,414 licensed beds) Our 79 properties are leased to 78 operators that receive consulting Founded i
Slide 13: Skilled Nursing Industry in the U.S
Skilled Nursing Industry in the U.S
Slide 14: 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 15: 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 16: 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 17: 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 $181.6 in a greater amount of t
Slide 18: Financial Highlights
a . ee a ; WBERRY Me FIELDS Financial Highlights
Slide 19: Adjusted EBITDA and Adjusted FFO Growth
Adjusted EBITDA and Adjusted FFO Growth 2018- Projected 2023 Adjusted EBITDA Growth ($/thousands) Adjusted FFO Growth ($/thousands) 80,000 60,000 73,790 73,757 8.55% 67,344 52,349 70,000 18.90% 51,076 CAGR 61,045 66,607 50,000 60,000 CAGR 43,935 40,000 38,844 48,942 50,000 AEBITDA 30,916 AFFO 40,000
Slide 20: Assets Growth and Base Rent Growth
Assets Growth and Base Rent Growth 2018- Projected 2023 Total Assets Growth (GAAP) CAGR ($/thousands) Average Base Rent CAGR ($/thousands)* 800,000 90,000 84,415 82,158 4.35% 686,168 686,168 693,882 80,000 6.50% 77,738 700,000 75,323 CAGR 625,249 633,632 CAGR 72,763 70,000 600,000 560,705 61,621 57,
Slide 21: Debt Structure as of March 31, 2023
Debt Structure as of March 31, 2023 Debt Maturity HUD Guaranteed Debt $273.9MM Years 1-5 22.5% Weighted average cost: 3.88% Banks Secured Bank Debt Years $104.3MM 18.5% 1-5 Interest rate: SOFR+3.5%* Bonds Years Unsecured Bond Series A 7.8% 11-20 $20.7MM HUD Interest rate: 6.4% 20+ 51.2% HUD Secured
Slide 22: Strawberry Fields REIT Facility Statistics
SNF Facility Occupancy of 68.4%* SNF Average Facility Size of 131 Beds SNF PPD Average of 90 Residents** Strawberry Operators Payor Mix Fields REIT Insurance Private 7% Medicare 11% Facility Statistics as 8% of February 2023 Medicaid 74% *Based on SNF licensed beds. **PPD (“Per Patient Day”) is a me
Slide 23: Facility Operator & State Diversification
Facility Operator & State Diversification Base Rent by Related Consultant Base Rent by State Other 7% Other 5% Kentucky 11% Oasis Health Care Infinity Healthcare Group Management of 13% Illinois Illinois 31% 26% Arkansas 13% Benchmark under Landmark brand name 18% Infinity Healthcare Management of T
Slide 24: 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