- Chairman and CEO Moishe Gubin used his NobleCon21 presentation to outline Strawberry Fields REIT’s disciplined expansion strategy and long-term approach to healthcare real estate.
- The company now holds long-term leasehold interests in 142 healthcare facilities with more than 15,500 licensed beds across 10 states.
- Gubin emphasized a conservative acquisition philosophy, with each property evaluated from an operator’s perspective despite the company’s role as a self-administered REIT.
- The REIT has consistently collected 100% of rents and maintains long-term triple-net leases with 3% annual increases.
- Third-quarter 2025 results showed continued momentum, including rental income of $39.7 million and AFFO of $18.1 million.
- The company maintains a payout ratio below 50%, allowing retained cash flow to fund acquisitions and support long-term AFFO growth.
Strawberry Fields REIT (NYSE American: STRW), a self-administered real estate investment trust specializing in healthcare-related properties, recently attended NobleCon21, where it reinforced how key concepts of disciplined acquisition, predictable cash flow, and long-term stability form the core of its strategy. Speaking at the annual growth event hosted by Noble Capital Markets, Chairman and CEO Moishe Gubin described a methodical expansion approach that has allowed the company to build one of the larger skilled-nursing-focused real estate portfolios in the United States (https://nnw.fm/GJYUw).
The company concentrates on the acquisition, and leasing of skilled nursing and other healthcare-related properties. It does not develop or operate the facilities it owns. Instead, Strawberry Fields enters long-term triple-net leases with skilled operators, a structure that places operating costs, maintenance, taxes, and insurance obligations on the tenant while delivering predictable rental income to the REIT.
Gubin noted that the company’s portfolio has expanded significantly since 2015, when it spun out with 33 properties concentrated in Indiana and Illinois. Strawberry Fields now holds long-term leasehold interests in 142 facilities and more than 15,500 licensed beds, representing roughly 1% of U.S. nursing home capacity. This growth aligns with a broader demographic trend: the U.S. elderly care market, valued at $49.29 billion in 2024, is projected to nearly double to $98.19 billion by 2032 (https://nnw.fm/oFQJu).
While the company has grown its geographic footprint, which today spans Indiana, Illinois, Arkansas, Tennessee, Kansas, Kentucky, Missouri, Ohio, Oklahoma, and Texas, Gubin emphasized that expansion has been steady rather than hurried. He described reviewing roughly 300 potential acquisitions each year, submitting offers on a fraction, and ultimately closing five to ten properties annually. According to Gubin, the limiting factor is discipline, not access to capital.
A notable feature of the company’s approach is the use of master leases by geography. Rather than lease each building individually, Strawberry Fields groups properties into larger portfolios for one or two operators in each state. Gubin explained that this reduces risk: tenants cannot “cherry-pick” preferred facilities, and the performance of the portfolio as a whole supports rent coverage. This structure has contributed to the company’s record of collecting 100% of rents for seven to eight consecutive years.
The company’s leases typically begin at a 10% unlevered return, with 3% annual increases. The company targets an effective, levered, return of around 17% over time. Because rent levels are fixed rather than indexed to operator performance, rental income remains consistent regardless of operational variability at the tenant level.
At NobleCon21, Gubin reiterated that the company evaluates each property “as if we were the operator,” even though it remains strictly a landlord. He stressed that integrity, operational experience, and financial stability are the criteria he considers when selecting tenants. These tenant relationships often extend beyond formal asset management, with Gubin himself maintaining regular direct communication.
The presentation also highlighted portfolio diversification. While the company began with concentration in two states and a single tenant group, today the tenant base spans multiple independent operators in ten states.
Financial performance has remained a central element of the company’s message. For the third quarter of fiscal year 2025, Strawberry Fields reported rental income of $39.7 million, up $6.6 million from the prior year, driven by recent acquisitions in Missouri and Oklahoma. Funds From Operations rose to $20.7 million from $15.2 million in 2024, while Adjusted FFO expanded to $18.1 million from $14.3 million. Net income increased to $8.9 million to $6.9 million during the same period (https://nnw.fm/cxPYl).
The company maintains a payout ratio of roughly 47%, which Gubin said is intentionally conservative. Retained cash flow is deployed toward additional acquisitions, supporting the AFFO growth he sees as a key differentiator relative to REITs that distribute nearly all free cash.
Strawberry Fields reports approximately $1.1 billion in assets, at historical cost, and a market capitalization of about $750 million. Its debt mix includes long-duration HUD financing, Israeli bond issuances, and conventional debt. Gubin said a future step for the company is to secure a traditional unsecured line of credit, a feature common among large REITs and one he believes may help align market perception with available liquidity.
For investors tracking the senior housing and skilled nursing segments, Strawberry Fields presents a REIT model built on long-term leases, consistent rent collection, and measured expansion. The company’s approach avoids development exposure and operational risk, focusing instead on cash-flow stability in a sector expected to expand steadily over the next decade. Strawberry Fields is positioning its portfolio to meet rising demand through continued disciplined acquisition and tenant-focused underwriting, a strategy Gubin describes as central to both the company’s current performance and its long-term trajectory.
For more information, visit the company’s website at www.StrawberryFieldsREIT.com.
NOTE TO INVESTORS: The latest news and updates relating to STRW are available in the company’s newsroom at https://nnw.fm/STRW
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