Strawberry Fields REIT, Inc. (NYSE AMERICAN: STRW) reported third-quarter 2026 financial results that highlight the resilience of its core rental operations even as a sizable foreign currency loss pushed the company into a net loss. For the quarter ended Sept. 30, 2026, the healthcare-focused real estate investment trust posted adjusted funds from operations (AFFO) of $18.8 million, or $0.34 per share, compared with $18.1 million, or $0.33 per share, in the prior-year period. The improvement in AFFO, a key measure of REIT operating performance, suggests that the company’s underlying business continues to generate steady cash flow.
Rental income totaled $40 million for the quarter, essentially flat with the $39.7 million reported a year earlier, and the company collected 100% of contractual rents. That perfect collection rate is particularly significant for a REIT focused on skilled nursing and healthcare properties, where operator financial health can be a concern. It indicates that Strawberry Fields’ tenants are meeting their obligations and that the company’s revenue stream remains reliable.
However, funds from operations (FFO) turned negative at $3.6 million, compared with positive $20.7 million in the prior-year quarter. The swing was driven by a net loss of $14.8 million, compared with net income of $8.9 million a year earlier, primarily reflecting a $24.6 million foreign currency transaction loss associated with bond retirements. That loss is a non-cash item tied to the company’s debt management activities, and its impact on AFFO was excluded, allowing investors to see the operating performance more clearly.
Strawberry Fields also continued to execute on its acquisition strategy. During the quarter, it completed a $10.4 million acquisition of a hospital campus near Kansas City, Missouri, and subsequently entered into an agreement to acquire a 99-bed skilled nursing facility in Indiana for $15 million, with closing expected before year-end. These moves are part of the company’s broader growth plan, as it pursues a 2026 acquisition target of $100 million to $150 million. Such expansion is important because it allows the REIT to grow its portfolio and diversify its revenue base, which can lead to improved economies of scale and potentially higher returns for shareholders.
For the first nine months of 2026, AFFO increased to $55.9 million from $53.4 million in the comparable 2025 period, underscoring the company’s ability to generate consistent growth. Strawberry Fields REIT owns and leases 145 healthcare facilities with more than 15,600 beds across ten states, comprising 131 skilled nursing facilities, 10 assisted living facilities, three hospitals, and a medical office building. The company’s focus on healthcare real estate positions it to benefit from demographic trends, such as an aging population, which are expected to drive demand for skilled nursing and related services.
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