The company expects to close the hospital campus acquisition in Q3 2026, adding to rental income
Strawberry Fields REIT plans to use the new credit facility to support acquisition growth
Overview
US healthcare REIT's Q2 rental income rose 6% on property acquisitions and lease renewals
Q2 net income increased to $8.9 million from $8.6 million a year ago, while AFFO declined slightly year over year
The company closed a $300 million credit facility and agreed to acquire a hospital campus for $10.4 million
Result drivers
Property acquisitions and lease renewals - The company said higher rental income in Q2 was driven by the purchase of additional properties and lease renewals.
Higher administrative expenses - The company said general and administrative expenses rose in Q2 due to closing costs for the new credit facility and higher compensation.
Increased interest expense - The company said interest expense rose in Q2 mainly from recent bond issuances, offset by lower expense from loan paydown.
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the specialized REITs peer group is "buy"
Wall Street's median 12-month price target for Strawberry Fields REIT Inc is $15.00, about 3.9% above its August 6 closing price of $14.44
The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 18 three months ago
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