Strawberry Fields REIT Inc (NYSEARCA:STRW) reported its fourth-quarter and full-year 2025 financial results, delivering a significant earnings beat that has sparked a positive reaction in its share price. The company’s performance, characterized by robust growth in key funds from operations (FFO) metrics, appears to have resonated with investors, overshadowing a slight revenue miss for the quarter.
Earnings Performance Versus Estimates
The healthcare-focused real estate investment trust posted strong bottom-line results for the quarter ended December 31, 2025. The company's non-GAAP earnings per share (EPS) of $0.34 substantially exceeded the analyst consensus estimate of $0.1453. This outperformance of approximately 134% marks a clear positive surprise.
On the top line, the picture was more mixed. Quarterly revenue came in at $40.1 million, which was modestly below the analyst forecast of $41.12 million. However, this minor shortfall was likely viewed in the context of the company’s full-year rental income, which surged to $155.0 million, a 32.4% increase from the previous year. The market’s reaction suggests investors are prioritizing the strong profitability and operational growth over a slight quarterly revenue variance.
Market Reaction and Price Action
Following the earnings release, shares of Strawberry Fields REIT experienced notable upward momentum in after-hours trading, rising approximately 2.7%. This immediate positive reaction indicates investor approval of the reported figures, particularly the substantial EPS beat. The move helps offset some recent weakness, as the stock had declined roughly 5.2% over the past month leading up to the report.
The after-market gain suggests a reassessment of the company’s value, potentially aligning with comments from Chairman & CEO Moishe Gubin, who expressed hope that the stock would "begin to close the valuation gap with our peers" to reflect the underlying strength of the business.
Key Highlights from the 2025 Annual Report
Beyond the quarterly figures, the annual results and strategic updates formed the core of the company's communication. Management highlighted 2025 as the strongest year in the REIT's decade-long history, driven by disciplined acquisitions and portfolio expansion.
- Portfolio Growth and New Leases: The company was active throughout the year, completing several acquisitions that added facilities in Kansas, Missouri, and Oklahoma. A significant milestone was the execution of a new master lease for 10 Kentucky properties, providing $23.3 million in annual base rent with CPI-linked escalators.
- Strong Operational Metrics: The company reported collecting 100% of contractual rents. Key profitability metrics showed impressive growth:
- Funds From Operations (FFO) increased 32% year-over-year to $79.6 million ($1.43 per share).
- Adjusted Funds From Operations (AFFO) rose 30% to $72.5 million ($1.30 per share).
- Net income attributable to common shareholders grew to $7.6 million, or $0.60 per share.
- Balance Sheet and Financing: To fund its growth, the company issued approximately $89.5 million in Series B Bonds on the Tel Aviv Stock Exchange in June 2025. The balance sheet shows a significant expansion in real estate investments, which grew to $687.2 million net by year-end.
Forward-Looking Perspective
While the press release did not provide specific quantitative financial guidance for 2026, the CEO’s statement emphasized a continued focus on "accretive deals" while maintaining a disciplined acquisition strategy. Analyst estimates currently project full-year 2026 sales of approximately $169.9 million and EPS of $0.669. The company’s demonstrated ability to grow AFFO per share by over 20% annually provides a tangible benchmark against which future performance and these estimates will be measured.
The company’s outlook remains anchored on the demographic tailwinds in senior housing and its strategy of leasing properties on a triple-net basis to operators, which provides a predictable rental income stream.
For a detailed look at historical earnings, future estimates, and analyst projections for STRW, visit the earnings and estimates page.
Disclaimer: This article is for informational purposes only and does not constitute investment advice, financial analysis, or a recommendation to buy or sell any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
