Strawberry Fields REIT, Inc. (NYSE: STRW) saw its stock soar during after-hours trading on Tuesday, climbing 10.20% to $11.99 following a 5.84% regular-session increase closing at $10.88. The upward momentum was driven by a business update revealing a series of strategic acquisitions.
Strategic Purchases Increase Portfolio Size
Strawberry Fields (STRW) completed the $24 million purchase of six healthcare facilities in Kansas on January 2, 2025. Third-party tenants are leased these facilities, which include 354 licensed beds, under an existing master lease arrangement. Tenants are liable for maintenance, insurance, and property taxes, and the leasing arrangement produces $2.4 million in initial yearly rentals on a triple-net basis.
The transaction is the result of a Purchase and Sale Agreement with an unrelated seller that was executed on December 20, 2024. Five skilled nursing homes and one assisted living facility are among the institutions. The properties will be leased for a 10-year initial contract with two potential 5-year extensions by Advena Living, which is headed by creator Willie Novotny. The lease terms also include a 3% annual rent escalation.
Expanding Footprint Across States
Moreover, Strawberry Fields also paid $5 million on December 31, 2024, to complete the purchase of a 100-bed skilled nursing facility in Oklahoma. The facility’s contract stipulates triple-net first yearly rentals of $500,000. This follows the December closure of an $87.5 million acquisition involving eight skilled nursing facilities in Missouri.
Looking Ahead for Further Development
With purchases totaling more than $116.5 million in December and January, Strawberry Fields has expanded into two additional states and added 15 buildings to its portfolio. STRW’s dedication to strategic expansion and prudent investment is demonstrated by this flurry of activity.
With an emphasis on long-term, value-driven acquisitions, Strawberry Fields hopes to expand its footprint in both current and emerging markets as 2025 gets underway. Strong investor trust in STRW’s long-term growth potential and strategic direction is reflected in the recent stock performance.