Strawberry Fields REIT LLC (STRW) Stock Analysis

Strawberry Fields REIT’s primary competitive advantage lies in its focused portfolio of skilled nursing facilities (SNFs), predominantly in rural and non-core markets across the Midwest and South. This geographic concentration allows STRW to operate in less competitive environments, often with higher lease spreads and lower acquisition costs than urban-focused peers such as Omega Healthcare Investors and Sabra Health Care REIT. As of year-end 2024, STRW owned 79 properties with 10,426 licensed beds, and recently expanded with a $59 million acquisition of nine Missouri facilities.

The company’s triple-net lease structure, in which tenants are responsible for property expenses, provides predictable cash flows and limits operational risk. STRW’s long-term, government-backed, fixed-rate debt—primarily through HUD—offers interest rate stability and reduces refinancing risk, a notable advantage over rivals with more variable-rate exposure.

Insider ownership is high, and management has demonstrated discipline in capital allocation, favoring off-market deals and conservative leverage. This has contributed to above-average EBITDA margins (81.6% in 2024) and consistent rent collection (100% in 2024 and Q1 2025). The dividend yield (5.3%) is competitive, supported by a payout ratio near 1.0.

However, STRW’s small size, tenant concentration, and reliance on government reimbursement expose it to regulatory and counterparty risks. Still, its operational focus and financial conservatism provide a durable edge relative to larger, more diversified REITs.