- Strawberry Fields REIT (STRW, Financial) completes a $59 million acquisition of nine skilled nursing facilities in Missouri.
- The acquisition adds 686 beds and generates $6.1 million in annual rental income.
- Long-term leases with 3% annual rent increases strengthen the company's portfolio.
Strawberry Fields REIT (STRW) has successfully acquired nine skilled nursing facilities located in Missouri for a total of $59 million. This strategic acquisition not only expands the real estate investment trust's portfolio but also adds 686 beds, enhancing its operations and market presence in the healthcare facilities sector.
The deal was financed through a combination of cash reserves and approximately $2 million in Operating Partnership (OP) Units, highlighting the company's robust financial positioning. This acquisition immediately contributes $6.1 million in annual rental income, comprising $5.5 million from leases with The Tide Group and $0.6 million from leases with Reliant Care Group.
The transaction involves a 10-year master lease agreement with The Tide Group for eight of the facilities, which includes two optional five-year extensions. The ninth facility is under a 15-year lease with Reliant Care Group, also featuring two 10-year extension options. Both agreements include a 3% annual rent escalation clause, ensuring consistent revenue growth.
This acquisition increases the number of Strawberry Fields REIT's Missouri-based skilled nursing facilities to a total of 17, reinforcing its geographic strategy and enhancing its foothold in the healthcare real estate market. The expansion aligns with the company's focus on specialized healthcare assets, poised for stable demand driven by demographic trends.
Overall, this move underscores Strawberry Fields REIT's commitment to strengthening its portfolio through targeted acquisitions, ensuring long-term cash flow stability and reinforcing its position as a leading player in the real estate investment trust sector.
