Strawberry Fields REIT, Inc. (STRW)·Q2 2024 Earnings Summary

Executive Summary

• Q2 2024 showed continued operational strength: rental revenues increased by $5.0 million (+20.4% YoY), with 100% contractual rent collection, and net income rose to $7.0 million (+22.8% YoY) .
• Non-GAAP metrics improved: FFO reached $15.2 million (+20.5% YoY) and AFFO was $14.3 million (+6.7% YoY), supported by acquisitions, lease renewals, and annual escalators .
• Strategic actions and capital markets milestones: renewal of the Indiana master lease (10-year term; first-year base rent $15.5 million), dual listing on the Tel Aviv Stock Exchange, Russell 3000 inclusion, and a cash-funded acquisition in Georgetown, IN (first-year base rent $0.585 million) .
• Dividend maintained at $0.13 per share for Q2 (record date Sept 16; payable Sept 30) following a $0.13 dividend in Q1 (record date June 17; payable June 28) .
• Wall Street consensus via S&P Global for Q2 EPS/revenue was unavailable, so no beat/miss assessment; we anchor analysis on company-reported results and non-GAAP FFO/AFFO . S&P Global estimates data retrieval was unsuccessful (rate limit).

What Went Well and What Went Wrong

What Went Well

• 100% of contractual rents collected, demonstrating portfolio health and tenant payment discipline .
• Lease and growth momentum: “During the second quarter of 2024, the Company continued to see strong/accretive growth… projected SL rents increased from $84.2mm to $106.7mm; mainly due to acquisitions and renegotiations of existing master leases.” .
• Capital markets progress: “The addition of the Company to the Russell 3000 Index was a big achievement… expanded the Company’s shareholder base… we strive to grow the Company both operationally and through its shareholder base” . Dual listing on the TASE provides debt issuance optionality .

What Went Wrong

• Interest expense pressure: Q2 interest expense increased by $2.4 million (+45.1% YoY) due to a new Popular Bank loan and Series D bonds; similar pressure noted in Q1 (+60.8% YoY) from bonds and floating-rate bank facilities .
• Operating cost inflation: General and administrative expenses rose by $1.1 million (+120.9% YoY) on higher legal, insurance, and corporate costs; depreciation and amortization increased by $1.2 million (+17.7% YoY) from new properties and lease rights .
• Limited estimate visibility: No available Street consensus to contextualize beat/miss; investors must rely on company metrics (FFO/AFFO) for performance gauging this quarter .

Financial Results

Company-reported quarterly metrics (oldest → newest):

Notes:

• Company disclosed “Rental Revenues increased by $5.0 million or 20.4% YoY,” driven by acquisitions, escalations, and renewals .
• FFO/AFFO reconciliations and definitions provided by the company .

Revenue/EPS/margins vs estimates:

• Revenue: Company reports “rental income received”; no GAAP EPS or margin metrics disclosed in the press materials .
• Wall Street EPS and revenue consensus via S&P Global was unavailable; no formal beat/miss can be determined this quarter. S&P Global estimates retrieval failed due to rate limit.

Segment/Portfolio composition:

Key KPIs and events:

Guidance Changes

No formal revenue, EPS, margin, or tax rate guidance ranges were disclosed in Q2 materials; dividends remained within prior framework .

Earnings Call Themes & Trends

Note: No Q2 2024 earnings call transcript was found; themes derived from company press disclosures.

Management Commentary

• “During the second quarter of 2024, the Company continued to see strong/accretive growth… projected SL rents increased from $84.2mm to $106.7mm… closed on a SNF in Georgetown… robust pipeline… reviewing deals in a disciplined manner.” — Moishe Gubin, Chairman & CEO .
• “The addition of the Company to the Russell 3000 Index was a big achievement… expanded the Company’s shareholder base… we strive to grow the Company both operationally and through its shareholder base…” — Moishe Gubin .
• “It’s been an active start to 2024… new lease includes higher rents… ensuring steady rents… continues to search for accretive deals… remains disciplined… using excess cash to pay down debt.” — Q1 remarks, Moishe Gubin .

Q&A Highlights

• No Q2 2024 earnings call transcript was located; Q&A themes are not available for this quarter. Coverage relies on press release disclosures .

Estimates Context

• Wall Street consensus (S&P Global) for Q2 2024 EPS and revenue was unavailable; we were unable to retrieve estimates due to a data rate limit and likely limited brokerage coverage for STRW this quarter. As such, no beat/miss determination is provided [GetEstimates attempt failed; S&P Global data unavailable].
• Investor implication: Focus on company-reported FFO/AFFO trajectory, lease economics, and asset growth until third-party estimate coverage becomes more consistent .

Key Takeaways for Investors

• Operating momentum intact: rental revenues +20.4% YoY and net income up to $7.0 million; FFO/AFFO growth demonstrates durable cash flow from leases and escalators .
• Lease economics strengthened: Indiana master lease renewal increases first-year base rent to $15.5 million with 3% annual escalations, supporting forward rent growth visibility .
• Capital deployment discipline: Georgetown acquisition funded with balance sheet cash; pipeline described as robust yet selectively pursued for accretive returns .
• Capital markets catalysts: TASE dual listing and Russell 3000 inclusion broaden investor base and raise visibility, potentially aiding future financing flexibility .
• Interest expense headwind persists: higher costs tied to bond issuances and bank facilities; monitor rate environment and refinancing opportunities .
• Dividend stability: $0.13 declared in both Q1 and Q2 aligns with prior framework; watch for payout progression tied to AFFO growth and lease actions .
• With limited Street estimate visibility, trade the narrative around lease renewals, portfolio expansion, and rent collection; watch subsequent quarters for improved coverage and any guidance formalization .