Strawberry Fields Reit, Inc. · AMEX:STRW
Strawberry Fields Reit — Investor Presentation (April 2023)
24 slides from Strawberry Fields Reit's investor presentation, Apr 20, 2023
Slide 1: Strawberry Fields REIT
Strawberry Fields REIT NYSE American: “STRW” April 20, 2023
Slide 2: Disclaimer
STRAWBERRY FIELDS 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, contol persons, partners, members, managers, directors, officers, emplo
Slide 3: Use of Projections and Non-GAAP Disclaimer
STRAWBERRY FIELDS Use of Projections ‘This presentation contains projected Financial information with respect to the Company. Such projected financfal information constitutes forward-looking, information and is for illustrative purposes only, The assumptions and estimates underlying such financial f
Slide 4: Non-GAAP measures and industry information notes
STRAWBERRY FIELDS We believe thatthe use of FFO, AFFO, EBITDA and Adjusted EBITDA (which can be defined as EBITDA net ofthe effects of stra cureney translation costs and the effects of eredit provision for doubtful accounts) are helpful to our investors as these metres ate used by manage assessing t
Slide 5: The Company is an income producing real estate investment company
Es ‘The Company is an income producing real estate investment company that owns 78 properties and also holds a leasehold interest in one additional property under a long-term lease. These properties are leased to third party operators which use them to operate 78 Skilled Nursing Facilities (SNFs), 2
Slide 6: Portfolio Summary
Portfolio Summary* Demonstrated Operating Results and Financial Strength 78** ga $692M** 6.1x**** Owned assets, plus one asset under long term lease Total Cost of Real Estate Net Debt to 2022 Adjusted EBITDA* 10,351** 2 $73.8M Covid-19 Q 2022 No material impact o1 Total number of beds — Adjusted EBI
Slide 7: Proven Acquisition Strategy Driving Significant Growth in the Portfolio
Proven Acquisition Strategy Driving Significant Growth in the Portfolio 2018: We issued 867.1 millon of Series bond that at listed on the Tel Aviv Stock 2021: We issued 964.0 millon of Series © bonds hat ar listed on the Tet Aviv Stock 2015; Our predecessor, Saher Fels REI LLC, sas founded by Mr. Gu
Slide 8: Diversified Base of Consultants to Portfolio Composition
a= Diversified Base of Consultants to Portfolio Compositi: STRAWBERRY Operators Tennessee, Kentucky, Tex: Ohio, Oklahoma, and Michi United States 9 9 2 buildings include two types of licensed faciliti 9 In order to leverage scale and efficiencies, the Company foci on acquiring facilities that are ge
Slide 9: Experienced Management Team
STRAWBERRY FIELDS 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 facilitie
Slide 10: Board of Directors
STRAWBERRY FIELDS GPS Moishe Gubin, Chairman, who also serves as our Chief Executive Officer. Essel Bailey, Director, has spent the last $0 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
Slide 11: Disciplined Underwriting and Acquisition Strategy
Disciplined Underwriting and Acquisition Strategy Investment Criteria* 10% projected ROL 25% projected IRR over a 20-year investment horizon, 15% projected ROE at 50% LTV with 5% interest ‘Annual lease payment of no more than 80% of operator's pro-forma adjusted EBITDAR** Focus on smaller deals that
Slide 12: Strong Relationships with Experienced Consulting Groups
Strong Relationships with Experienced Consulting Groups & Operator Overview ++ Provides consulting serves to 72 operators with over - £200 bes in IL, IN & TN Gludng 4] Stabery Yofinity Ree ees * Our 79 properties are leased to 78 operators that receive consulting coed te Mate i and Moise Gin, servic
Slide 13: ST Gy BERRY
ST Gy BERRY FIELDS
Slide 14: Nursing Home Industry in the U.S - Summary
Nursing Home Industry in the U.S - Summary High barriers to entry: -Significant set-up costs -Regulatory restrictions -Specialized knowled; Federal and state-level subsidies through Medicaid & Medicare Low supply of new nursing homes and restriction on licensin; Growing demand due to an increase in
Slide 15: Trends in population
STRAWBE! FIELDS 25.0% 9 20.0% 15.0% 10.0% 5.0% 0.09% 1000 800 600 400 200 oo % of Total Population 19.3% 20.0% 20.2% a 4.3% To aa pes _ Ee 2010 2020 2030 2040 2080 Total Population for Age Group — sa: olga 885 Td 54.8 © 40.2 0 19.0 14.2 015.8 —o 66 —o 8.7 20102020» 203020402050 age 65+ age 85+ age 6
Slide 16: Population by age group
STRAWBERRY 3] FIELDS 45.0% 35.0% 16 AGE
Slide 17: Increased spend on aging population
STI = z a & z = q B £ r Eo 2 cs i z 2 £ 2 = ? 2 2 £ WBERRY FIELDS 2029 2030 Increased Spend on Agin popiilation — Due to the increase in life expectancy in the United States, which will result in a greater amount of the population being individuals aged 65+ there will be an increase in spending on c
Slide 18: Financial Highlights
Financial Highlights
Slide 19: Adjusted EBITDA and Adjusted FFO Growth
Adjusted EBITDA and Adjusted FFO Growth 2018-2022 Adjusted EBITDA Growth (S/thousands) Adjusted FFO Growth (S/thousands) (iosie 73,790 1 10.81% (3.40) sions " CAGR a 5 sooo |{_ 23.40% 0.000 CAGR ‘no 40,000 - 4 ° E 40,000 E so.000 2 Es ° 2018 2019 2020 2021 2022 2018 2019 2020 2021 STRAWBER) FIELDS 1
Slide 20: Assets Growth and Base Rent Growth
20 Assets Growth and Base Rent Growth 2017-2022 Total Assets Growth (GAAP) CAGR ($/thousands) (105% 686,168 80,000 CAGR 633,632 188,124 “Average Base Rent is calculated as the annual rents collected from tenants, including straight-line adjustments Average Base Rent CAGR ($/thousands)* 1 | RI FIELDS
Slide 21: Debt Structure as of December
Debt Structure as of December Debt Maturity HUD guaranteed Debt $277.6MM — Weighted average cost: 3.88% Banks Secured Bank Debt Years $106.1MM 15 Interest rate: SOFR+3.5%* Bonds _ Unsecured Bond Series A ed $20.1MM Interest rate: 6.4% 20+ HUD Secured Bond Series C $55.1MM 0.00% 1.0% 20.0% 300% “1.0%
Slide 22: Facility Statistics as of December 31, 2022
2 3ERRY HEED SNF Facility Occupancy of 67.0%* SNF Average Facility Size of 131 Beds SNF PPD Average of 88 Residents** Operators Payor Mix Prvates% Insurance Medicare 11% a “Based on SNF licensed beds. “PPD (“Per Patient Day") isa metric used inthe SNF industry to measure how much ofany resource is u
Slide 23: Facility Operator & State Diversification
Facility Operator & State Diversification Base Rent by Related Consultant Base Rent by State Kentucky 119% STRAWBERRY FIELDS 23° Note: Data as of December 31, 2022
Slide 24: Contact
FIELDS Nani Eingal Moishe Gubin Jeff Bajtner CFO Chairman & CEO Senior Investment Officer Neingal@sfreit.com Mgubin@sfreit.com Shajtner@sfreit.com 6101 Nimtz Parkway South Bend, IN 4662
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