Fri, May 9, 10:14 AM (9 days ago)
**Strawberry Fields REIT, Inc. (STRW) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** Q1 2025 rental revenue increased by 34.1% to $37.3M, driven by new leases in Kentucky, Missouri, and Kansas. - **Profit Margins:** Net income rose by 16.7% to $6.99M. Net income attributable to common stockholders surged by 112.3% to $1.58M. - **Cash Flow:** Operating cash flow was $18.97M, a significant increase from $2.13M in Q1 2024. Investing activities used $28.76M, primarily for real estate investments. - **Earnings Changes:** Basic and diluted income per common share increased by 8.3% to $0.13. **Quarterly Performance Discussion:** - **Revenue Growth:** Driven by new leases and acquisitions, particularly in Kentucky, Missouri, and Kansas. - **Expenses:** Depreciation and amortization increased due to new property acquisitions. Interest expense rose by 63.4% due to higher bond balances and new debt. - **Cash Flow:** Positive operating cash flow indicates strong liquidity. Investing activities focused on real estate investments. **Trends & Uncertainties:** - **Market Risks:** Exposure to interest rate changes, particularly with variable rate debt. Economic conditions and regulatory changes in the healthcare industry pose risks. - **Legal Proceedings:** Ongoing legal issues related to past acquisitions, though management believes these will not have a material adverse effect. **Future Operations Impact:** - **Acquisitions:** Continued focus on acquiring healthcare properties to expand the portfolio. - **Debt Management:** Compliance with debt covenants and managing interest rate risks through fixed and variable rate loans. - **Liquidity:** Strong liquidity position with cash and cash equivalents of $71.1M and potential for additional bond issuances. **Ticker:** STRW **Note:** Amounts are in thousands ($000s) unless otherwise specified.