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NOTE 1. Business Overview The Company STRAWBERRY FIELDS REIT, Inc. (the “Company”) is a Maryland corporation formed in July 2019. The Company commenced operations on June 8, 2021. The Company conducts its business through a traditional UPREIT structure in which substantially all of its assets are owned by subsidiaries of Strawberry Fields Realty, LP, a Delaware limited partnership formed in July 2019 (the “Operating Partnership”). The Company is the general partner of the Operating Partnership (“OP”). The Company owns approximately <span id="xdx_900_eus-gaap--EquityMethodInvestmentOwnershipPercentage_iI_pid_dp_uPure_c20260331__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__custom--StrawberryFieldsRealtyLPMember__us-gaap--AwardTypeAxis__custom--OperatingPartnershipUnitsMember_zMp3tJ07lDY9" title="Equity method investment ownership percentage">24.2% and <span id="xdx_908_eus-gaap--EquityMethodInvestmentOwnershipPercentage_iI_pid_dp_uPure_c20251231__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__custom--StrawberryFieldsRealtyLPMember__us-gaap--AwardTypeAxis__custom--OperatingPartnershipUnitsMember_zMXr4FpLR2gh" title="Equity method investment ownership percentage">24.0% of the outstanding OP units as of March 31, 2026 and December 31, 2025 respectively. As the sole general partner of the Operating Partnership, the Company has the exclusive power under the partnership agreement to manage and conduct the business affairs of the Operating Partnership, subject to certain limited approval and voting rights of the limited partners. The Company may cause the Operating Partnership to issue additional OP units in connection with property acquisitions, compensation or otherwise. The Company became a publicly traded entity on September 21, 2022. The Company is engaged in the ownership, acquisition, financing and triple-net leasing of skilled nursing facilities and other post-acute healthcare properties. As of March 31, 2026, the Company’s portfolio consists of 132 healthcare properties and one leased property that is in turn leased to a tenant that operates the facilities. As of December 31, 2025, the company owned 132 properties and leased one property that it in turn subleased to a tenant that operates the facility. The current portfolio properties are located in Arkansas, Illinois, Indiana, Kansas, Kentucky, Missouri, Ohio, Oklahoma, Tennessee and Texas. The Company generates substantially all of its revenues by leasing its properties to tenants under long-term leases primarily on a triple-net basis, under which the tenant pays the cost of real estate taxes, insurance and other operating costs of the facility and capital expenditures. Each healthcare facility located at its properties is managed by a qualified operator with an experienced management team. Interim Condensed Consolidated Financial Statements The accompanying unaudited, condensed consolidated financial statements of the Company have been prepared in accordance with GAAP for interim financial information, and the Securities and Exchange Commission (“SEC”) rules for interim financial reporting. Certain information and footnote disclosures normally included in the condensed consolidated financial statements prepared in accordance with GAAP have been omitted pursuant to such rules and regulations. However, in the opinion of management, the accompanying interim condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the Company’s condensed consolidated financial position as of March 31, 2026, and the condensed consolidated results of operations and cash flows for the periods presented. The condensed consolidated results of operations for interim periods are not necessarily indicative of the results of operations to be expected for any subsequent interim period or for the fiscal year ending December 31, 2026. STRAWBERRY FIELDS REIT, INC. and SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE 1. Business (Cont.) Variable Interest Entity The Company consolidates the Operating Partnership, a variable interest entity (“VIE”) in which the Company is considered the primary beneficiary. The primary beneficiary is the entity that has (i) the power to direct the activities that most significantly impact the entity’s economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could be significant to the VIE. Non-Controlling Interest A non-controlling interest is defined as the portion of the equity in an entity not attributable, directly or indirectly, to the primary beneficiary. Non-controlling interests are required to be presented as a separate component of equity on a condensed consolidated balance sheet. Accordingly, the presentation of net income is modified to present the income attributed to controlling and non-controlling interests. The non-controlling interest on the Company’s condensed consolidated balance sheets represents OP units not held by the Company and represents approximately <span id="xdx_903_eus-gaap--MinorityInterestOwnershipPercentageByNoncontrollingOwners_iI_pid_dp_c20260331__srt--OwnershipAxis__custom--StrawberryFieldsRealtyLPMember_zs0gfbeBBUE" title="Ownership percentage held by noncontrolling owners">75.8% and <span id="xdx_908_eus-gaap--MinorityInterestOwnershipPercentageByNoncontrollingOwners_iI_pid_dp_c20251231__srt--OwnershipAxis__custom--StrawberryFieldsRealtyLPMember_znpX7bZGnjHg" title="Ownership percentage held by noncontrolling owners">76.0% of the outstanding OP Units issued by the Operating Partnership as of March 31, 2026 and December 31, 2025, respectively. OP Units are exchangeable 1 to 1 with shares of common stock. The holders of these OP units are entitled to share in cash distributions from the Operating Partnership in proportion to their percentage ownership of OP units. Net income is allocated to non-controlling interest based on the weighted average of OP units outstanding during the period. Basis of Presentation The Company maintains its accounting records on an accrual basis in accordance with generally accepted accounting principles in the United States of America (“GAAP”). STRAWBERRY FIELDS REIT, INC. and SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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NOTE 2. Summary of Significant Accounting Policies Fiscal Year End The Company has adopted a fiscal year end of December 31. Use of Estimates Management is required to make estimates and assumptions in the preparation of the condensed consolidated financial statements in conformity with GAAP. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from management’s estimates. Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of the Company and the Operating Partnership and its wholly-owned subsidiaries. Intercompany transactions and balances have been eliminated upon consolidation. Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand and short-term investments with original maturities of three months or less when purchased. The Company’s cash, cash equivalents and restricted cash and cash equivalents periodically exceed federally insurable limits. The Company monitors the cash balances in its operating accounts and adjusts the cash balances as appropriate; however, these cash balances could be impacted if the underlying financial institutions fail or are subject to other adverse conditions in the financial markets. To date, the Company has experienced no loss or lack of access to the cash in its operating accounts. On March 31, 2026 and December 31, 2025, the Company had $55.8 million and $53.1 million, respectively, on deposit in excess of federally insured limits. Restricted Cash and Cash Equivalents Restricted cash primarily consists of amounts held by mortgage lenders to provide for real estate tax expenditures, tenant improvements, capital expenditures and security deposits, as well as escrow accounts related to principal and interest payments on Bonds. Real Estate Depreciation Real estate costs related to the acquisition and improvement of properties are capitalized and depreciated over the expected life of the asset on a straight-line basis. The Company considers the period of future benefit of an asset to determine its appropriate useful life. The Company does not incur expenditures for tenant improvements as they are the responsibility of the tenant per their respective leases. The Company anticipates the estimated useful lives of its assets by class to be generally as follows: Schedule of Assets Useful Lives <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 50%">Building and improvements</td> <td style="font: 10pt Times New Roman, Times, Serif; width: 50%"><span id="xdx_909_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20260331__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--BuildingMember__srt--RangeAxis__srt--MinimumMember_zJJfX6wgWqB6" title="Property plant and equipment useful life">7-<span id="xdx_902_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20260331__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--BuildingMember__srt--RangeAxis__srt--MaximumMember_zaGGRfSeCihi" title="Property plant and equipment useful life">45 years</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif">Equipment and personal property</td> <td style="font: 10pt Times New Roman, Times, Serif"><span id="xdx_909_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20260331__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--EquipmentAndPersonalPropertyMember__srt--RangeAxis__srt--MinimumMember_z6gZAz1thV3f" title="Property plant and equipment useful life">2-<span id="xdx_90C_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20260331__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--EquipmentAndPersonalPropertyMember__srt--RangeAxis__srt--MaximumMember_zpUVadKTRvG2" title="Real estate assets, estimated useful lives">18 years</td></tr> </table> STRAWBERRY FIELDS REIT, INC. and SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE 2. Summary of Significant Accounting Policies (Cont.) Real Estate Valuation In determining fair value and the allocation of the purchase price of acquisitions, the Company uses current appraisals or third-party valuations services. The most significant components of these allocations are typically the allocation of fair value to land and buildings and, for certain of its acquisitions, in place leases and other intangible assets. In the case of the fair value of buildings and the allocation of value to land and other intangibles, the estimates of the values of these components will affect the amount of depreciation and amortization the Company records over the estimated useful life of the property acquired or the remaining lease term. In the case of the value of in place leases, the Company makes best estimates based on the evaluation of the specific characteristics of each tenant’s lease. Factors considered include estimates of carrying costs during hypothetical expected lease up periods, market conditions and costs to execute similar leases. These assumptions affect the amount of future revenue that the Company will recognize over the remaining lease term for the acquired in place leases. The Company evaluates each purchase transaction to determine whether the acquired assets meet the definition of a business. Transaction costs related to acquisitions that are not deemed to be businesses are included in the cost basis of the acquired assets, while transaction costs related to acquisitions that are deemed to be businesses are expensed as incurred. All of the Company’s acquisitions of investment properties qualified as asset acquisitions during the periods. Revenue Recognition Rental income from operating leases is generally recognized on a straight-line basis over the terms of the leases. Substantially all of the Company’s leases contain provisions for specified annual increases over the rents of the prior year and are generally computed in one of three methods depending on specific provisions of each lease as follows: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">(i)</td> <td style="font: 10pt Times New Roman, Times, Serif">a specified annual increase over the prior year’s rent, generally between 1.0% and 3.0%;</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif">(ii)</td> <td style="font: 10pt Times New Roman, Times, Serif">a calculation based on the Consumer Price Index; or</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif">(iii)</td> <td style="font: 10pt Times New Roman, Times, Serif">specific dollar increases.</td></tr> </table> Contingent revenue is not recognized until all possible contingencies have been eliminated. The Company considers the operating history of the lessee and the general condition of the industry when evaluating whether all possible contingencies have been eliminated and have historically, and expect in the future, to not include contingent rents as income until received. The Company follows a policy related to rental income whereby the Company considers a lease to be non-performing after 60 days of non-payment of past due amounts and does not recognize unpaid rental income from that lease until the amounts have been received. Rental revenues relating to non-contingent leases that contain specified rental increases over the life of the lease are recognized on the straight-line basis. Recognizing income on a straight-line basis requires us to calculate the total non-contingent rent containing specified rental increases over the life of the lease and to recognize the revenue evenly over that life. This method results in rental income in the early years of a lease being higher than actual cash received, creating a straight-line rent receivable asset included in our accompanying condensed consolidated balance sheets. At some point during the lease, depending on its terms, the cash rent payments eventually exceed the straight-line rent which results in the straight-line rent receivable asset decreasing to zero over the remainder of the lease term. The Company assesses the collectability of straight-line rent in accordance with the applicable accounting standards and reserve policy. If the lessee becomes delinquent in rent owed under the terms of the lease, the Company may provide a reserve against the recognized straight-line rent receivable asset for a portion, up to its full value, that the Company estimates may not be recoverable. STRAWBERRY FIELDS REIT, INC. and SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE 2. Summary of Significant Accounting Policies (Cont.) Revenue Recognition (Cont.) Capitalized above-market lease values are amortized as a reduction of rental income over the remaining terms of the respective leases. Capitalized below-market leases are accreted to rental income over the remaining terms of the respective leases and expected below-market renewal option periods. The Company reports revenues and expenses within our triple-net leased properties for real estate taxes that are escrowed and obligations of the tenants in accordance with their respective lease with us. Gain from sale of real estate investments is recognized when control of the property is being transferred and it is probable that substantially all consideration will be collected. Allowance for Credit Losses The Company evaluates the liquidity and creditworthiness of its tenants, operators and borrowers on a monthly and quarterly basis. The Company’s evaluation considers industry and economic conditions, individual and portfolio property performance, credit enhancements, liquidity and other factors. The Company’s tenants, borrowers and operators furnish property, portfolio and guarantor/operator-level financial statements, among other information, on a monthly or quarterly basis; the Company utilizes this financial information to calculate the lease or debt service coverages that it uses as a primary credit quality indicator. Lease and debt service coverage information is evaluated together with other property, portfolio and operator performance information, including revenue, expense, net operating income, occupancy, rental rate, reimbursement trends, capital expenditures and EBITDA (defined as earnings before interest, tax, depreciation and amortization), along with other liquidity measures. The Company evaluates, on a monthly basis or immediately upon a significant change in circumstance, its tenants’, operators’ and borrowers’ ability to service their obligations with the Company. The Company maintains an allowance for credit losses for straight-line rent receivables resulting from tenants’ inability to make contractual rent and tenant recovery payments or lease defaults. For straight-line rent receivables, the Company’s assessment is based on amounts estimated to be recoverable over the lease term. Impairment of Long-Lived Assets and Goodwill The Company assesses the carrying value of real estate assets and related intangibles (“real estate assets”) when events or changes in circumstances indicate that the carrying value may not be recoverable. The Company tests its real estate assets for impairment by comparing the sum of the expected future undiscounted cash flows to the carrying value of the real estate assets. The expected future undiscounted cash flows are calculated utilizing the lowest level of identifiable cash flows that are largely independent of the cash flows of other assets and liabilities. If the carrying value exceeds the expected future undiscounted cash flows, an impairment loss will be recognized to the extent that the carrying value of the real estate assets is greater than their fair value. Goodwill is tested for impairment at least annually based on certain qualitative factors to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying value. Potential impairment indicators include a significant decline in real estate values, significant restructuring plans, current macroeconomic conditions, state of the equity and capital markets or a significant decline in the Company’s market capitalization. If the Company determines that it is more likely than not that the fair value of a reporting unit is less than its carrying value, the Company applies the required two-step quantitative approach. The quantitative procedures of the two-step approach (i) compare the fair value of a reporting unit with its carrying value, including goodwill, and, if necessary, (ii) compare the implied fair value of reporting unit goodwill with the carrying value as if it had been acquired in a business combination at the date of the impairment test. The excess fair value of the reporting unit over the fair value of assets and liabilities, excluding goodwill, is the implied value of goodwill and is used to determine the impairment amount, if any. The Company has selected the fourth quarter of each fiscal year to perform its annual impairment test. STRAWBERRY FIELDS REIT, INC. and SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE 2. Summary of Significant Accounting Policies (Cont.) Concentrations of Credit Risk Financial instruments which potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, restricted cash and cash equivalents, notes receivable and operating leases on owned properties. These financial instruments are subject to the possibility of loss of carrying value as a result of the failure of other parties to perform according to their contractual obligations or changes in market prices which may make the instrument less valuable. Cash and cash equivalents, restricted cash and equivalents are held with various financial institutions. From time to time, these balances exceed the federally insured limits. These balances are maintained with high quality financial institutions which management believes limits the risk. With respect to notes receivable, the Company obtains various collateral and other protective rights, and continually monitors these rights, in order to reduce such possibilities of loss. In addition, the Company provides reserves for potential losses based upon management’s periodic review of our portfolio. On March 31, 2026 and December 31, 2025, the Company held six notes receivable with an outstanding balance of $<span id="xdx_908_eus-gaap--NotesReceivableNet_iI_pn5n6_c20260331__us-gaap--AccountsNotesLoansAndFinancingReceivableByReceivableTypeAxis__custom--FiveNotesReceivableMember_z2uO2uUZpEde" title="Notes receivable">21.0 and $<span id="xdx_90F_eus-gaap--NotesReceivableNet_iI_pn5n6_c20251231__us-gaap--AccountsNotesLoansAndFinancingReceivableByReceivableTypeAxis__custom--FiveNotesReceivableMember_zbthtJEsjiT" title="Notes receivable">20.8 million, respectively. The notes have maturities ranging from 2026 through 2046, and interest rates ranging from <span id="xdx_90E_eus-gaap--LoansReceivableBasisSpreadOnVariableRate_iI_pid_dp_c20260331__us-gaap--AccountsNotesLoansAndFinancingReceivableByReceivableTypeAxis__custom--FiveNotesReceivableMember__srt--RangeAxis__srt--MinimumMember_zHexGv6fAPBh" title="Interest rate">2% to <span id="xdx_904_eus-gaap--LoansReceivableBasisSpreadOnVariableRate_iI_pid_dp_c20260331__us-gaap--AccountsNotesLoansAndFinancingReceivableByReceivableTypeAxis__custom--FiveNotesReceivableMember__srt--RangeAxis__srt--MaximumMember_z4Nrvb7LQxWc" title="Interest rate">10.25%. One of the notes is collateralized by tenants’ accounts receivable. All other notes receivable are uncollateralized as of March 31, 2026. Market Concentration Risk As of March 31, 2026 and December 31, 2025, the Company owned 132 properties and leased one property. The facilities are located in 10 states, with 20 facilities of its total facilities located in Illinois (which include 4,226 skilled nursing and assisted living beds or 27.1% of the Company’s total beds) and 41 of its total facilities in Indiana (which include 3,404 skilled nursing and assisted living beds or 21.8% of the Company’s total beds). Since tenant revenue is primarily generated from Medicare and Medicaid, the operations of the Company are indirectly subject to the administrative directives, rules and regulations of federal and state regulatory agencies, including, but not limited to the Centers for Medicare & Medicaid Services, and the Department of Health and Aging in all states in which the Company operates. Such administrative directives, rules and regulations, including budgetary reimbursement funding, are subject to change by an act of Congress, the passage of laws by the state regulators or an administrative change mandated by one of the executive branch agencies. Such changes may occur with little notice or inadequate funding to pay for the related costs, including the additional administrative burden, to comply with a change. Debt and Capital Raising Issuance Costs Costs incurred in connection with the issuance of equity interests are recorded as a reduction of additional paid-in capital. Debt issuance costs related to debt instruments, excluding line of credit arrangements, are deferred, recorded as a reduction of the related debt liability, and amortized to interest expense over the remaining term of the related debt liability utilizing the interest method. Deferred financing costs related to line of credit arrangements are deferred, recorded as an asset and amortized to interest expense over the remaining term of the related line of credit arrangement utilizing the interest method. Penalties incurred to extinguish debt and any remaining unamortized debt issuance costs, discounts and premiums are recognized as income or expense in the condensed consolidated statements of income at the time of extinguishment. Segment Reporting Accounting guidance regarding disclosures about segments of an enterprise and related information establishes standards for the manner in which public business enterprises report information about operating segments. The Company’s investment decisions in health care properties, and resulting investments are managed as a single operating segment for internal reporting and for internal decision-making purposes. Therefore, the Company has concluded that it operates as a single segment. The Chief Operating Decision Makers for the segment is/ are: Moishe Gubin, Chairman and Chief Executive Officer and Greg Flamion, Chief Financial Officer. STRAWBERRY FIELDS REIT, INC. and SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE 2. Summary of Significant Accounting Policies (Cont.) Basic and Diluted Income Per Common Share The Company calculates basic income per common share by dividing net income attributable to common stockholders by the weighted average number of common shares outstanding during the period. At March 31, 2026 and 2025, there were <span id="xdx_906_eus-gaap--WeightedAverageNumberDilutedSharesOutstandingAdjustment_pid_c20260101__20260331__us-gaap--StatementEquityComponentsAxis__custom--OperatingPartnershipUnitsMember_zuREdfCbeNp4" title="Operating partnership outstanding">42,362,059 and <span id="xdx_904_eus-gaap--WeightedAverageNumberDilutedSharesOutstandingAdjustment_pid_c20250101__20250331__us-gaap--StatementEquityComponentsAxis__custom--OperatingPartnershipUnitsMember_zos0s3qBgFgf" title="Operating partnership outstanding">42,999,908 OP units outstanding which were potentially dilutive securities. During the three month periods ended March 31, 2026 and 2025, the assumed conversion of the OP units had no impact on basic income per share. Foreign Currency Translation and Transactions Assets and liabilities denominated in foreign currencies that are translated into U.S. dollars use exchange rates in effect at the end of the period, and revenues and expenses denominated in foreign currencies that are translated into U.S. dollars use average rates of exchange in effect during the related period. Gains or losses resulting from translation are included in accumulated other comprehensive loss, a component of equity on the condensed consolidated balance sheets. Gains or losses resulting from foreign currency transactions are translated into U.S. dollars at the rates of exchange prevailing at the dates of the transactions. The effects of transaction gains or losses, if any, are included in other income, in the condensed consolidated statements of income. Fair Value Measurement The Company measures and discloses the fair value of nonfinancial and financial assets and liabilities utilizing a hierarchy of valuation techniques based on whether the inputs to a fair value measurement are considered to be observable or unobservable in a marketplace. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. This hierarchy requires the use of observable market data when available. These inputs have created the following fair value hierarchy: ● Level 1—quoted prices for identical instruments in active markets; ● Level 2—quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and ● Level 3—fair value measurements derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. The Company measures fair value using a set of standardized procedures that are outlined herein for all assets and liabilities which are required to be measured at fair value. When available, the Company utilizes quoted market prices from an independent third-party source to determine fair value and classifies such items in Level 1. In instances where a market price is available, but the instrument is in an inactive or over-the-counter market, the Company consistently applies the dealer (market maker) pricing estimate and classifies the asset or liability in Level 2. If quoted market prices or inputs are not available, fair value measurements are based upon valuation models that utilize current market or independently sourced market inputs, such as interest rates, option volatilities, credit spreads and/or market capitalization rates. Items valued using such internally generated valuation techniques are classified according to the lowest level input that is significant to the fair value measurement. As a result, the asset or liability could be classified in either Level 2 or Level 3 even though there may be some significant inputs that are readily observable. Internal fair value models and techniques used by the Company include discounted cash flow valuation models. STRAWBERRY FIELDS REIT, INC. and SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE 2. Summary of Significant Accounting Policies (Cont.) Real Estate Investments – Held for Sale On March 31, 2026 and December 31, 2025, the Company had one property included in real estate investments which was held for sale and carried at the lower of their net book value or fair value on a non-recurring basis on the condensed consolidated balance sheets. The Company’s real estate investments held for sale were classified as Level 3 of the fair value hierarchy. Stock-Based Compensation The Company accounts for share-based payment awards in accordance with ASC Topic 718, Compensation – Stock Compensation (“ASC 718”). ASC 718 requires that the cost resulting from all share-based payment transactions be recognized in the condensed consolidated financial statements. ASC 718 requires all entities to apply a fair value-based measurement method in accounting for share-based payment transactions. The Company recognizes share-based payments over the vesting period. Recent Accounting Pronouncements In November 2024, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2024-03, “Expense Disaggregation Disclosures.” ASU 2024-03 requires disclosure to disaggregate prescribed expenses within relevant income statement captions. The standard is effective for fiscal years beginning after December 15, 2026 and for interim periods after December 15, 2027. Early adoption is permitted. The Company is evaluating the impact of the changes to its existing disclosures. In July 2025, the FASB issued ASU No. 2025-05, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets The ASU provides an optional practical expedient for estimating future credit losses based on current conditions as of the balance sheet date and assuming those conditions do not change over the remaining life of the accounts receivable. This standard is effective January 1, 2026. The Company does not expect this ASU to have a material impact on the condensed consolidated results of operations and financial condition. In September 2025, the FASB issued ASU No. 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. The ASU removes references to prescriptive software development stages and includes an updated framework for capitalizing internal software costs. This standard is effective January 1, 2028. The Company is currently evaluating this ASU’s impact on the condensed consolidated results of operations and financial condition STRAWBERRY FIELDS REIT, INC. and SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Use of Estimates Management is required to make estimates and assumptions in the preparation of the condensed consolidated financial statements in conformity with GAAP. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from management’s estimates.

Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of the Company and the Operating Partnership and its wholly-owned subsidiaries. Intercompany transactions and balances have been eliminated upon consolidation.

Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand and short-term investments with original maturities of three months or less when purchased. The Company’s cash, cash equivalents and restricted cash and cash equivalents periodically exceed federally insurable limits. The Company monitors the cash balances in its operating accounts and adjusts the cash balances as appropriate; however, these cash balances could be impacted if the underlying financial institutions fail or are subject to other adverse conditions in the financial markets. To date, the Company has experienced no loss or lack of access to the cash in its operating accounts. On March 31, 2026 and December 31, 2025, the Company had $55.8 million and $53.1 million, respectively, on deposit in excess of federally insured limits.

55800000

53100000

Restricted Cash and Cash Equivalents Restricted cash primarily consists of amounts held by mortgage lenders to provide for real estate tax expenditures, tenant improvements, capital expenditures and security deposits, as well as escrow accounts related to principal and interest payments on Bonds.

Real Estate Depreciation Real estate costs related to the acquisition and improvement of properties are capitalized and depreciated over the expected life of the asset on a straight-line basis. The Company considers the period of future benefit of an asset to determine its appropriate useful life. The Company does not incur expenditures for tenant improvements as they are the responsibility of the tenant per their respective leases. The Company anticipates the estimated useful lives of its assets by class to be generally as follows: Schedule of Assets Useful Lives <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 50%">Building and improvements</td> <td style="font: 10pt Times New Roman, Times, Serif; width: 50%"><span id="xdx_909_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20260331__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--BuildingMember__srt--RangeAxis__srt--MinimumMember_zJJfX6wgWqB6" title="Property plant and equipment useful life">7-<span id="xdx_902_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20260331__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--BuildingMember__srt--RangeAxis__srt--MaximumMember_zaGGRfSeCihi" title="Property plant and equipment useful life">45 years</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif">Equipment and personal property</td> <td style="font: 10pt Times New Roman, Times, Serif"><span id="xdx_909_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20260331__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--EquipmentAndPersonalPropertyMember__srt--RangeAxis__srt--MinimumMember_z6gZAz1thV3f" title="Property plant and equipment useful life">2-<span id="xdx_90C_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20260331__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--EquipmentAndPersonalPropertyMember__srt--RangeAxis__srt--MaximumMember_zpUVadKTRvG2" title="Real estate assets, estimated useful lives">18 years</td></tr> </table> STRAWBERRY FIELDS REIT, INC. and SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE 2. Summary of Significant Accounting Policies (Cont.)

Schedule of Assets Useful Lives <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 50%">Building and improvements</td> <td style="font: 10pt Times New Roman, Times, Serif; width: 50%"><span id="xdx_909_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20260331__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--BuildingMember__srt--RangeAxis__srt--MinimumMember_zJJfX6wgWqB6" title="Property plant and equipment useful life">7-<span id="xdx_902_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20260331__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--BuildingMember__srt--RangeAxis__srt--MaximumMember_zaGGRfSeCihi" title="Property plant and equipment useful life">45 years</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif">Equipment and personal property</td> <td style="font: 10pt Times New Roman, Times, Serif"><span id="xdx_909_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20260331__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--EquipmentAndPersonalPropertyMember__srt--RangeAxis__srt--MinimumMember_z6gZAz1thV3f" title="Property plant and equipment useful life">2-<span id="xdx_90C_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20260331__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--EquipmentAndPersonalPropertyMember__srt--RangeAxis__srt--MaximumMember_zpUVadKTRvG2" title="Real estate assets, estimated useful lives">18 years</td></tr> </table>

P7Y

P45Y

P2Y

P18Y

Real Estate Valuation In determining fair value and the allocation of the purchase price of acquisitions, the Company uses current appraisals or third-party valuations services. The most significant components of these allocations are typically the allocation of fair value to land and buildings and, for certain of its acquisitions, in place leases and other intangible assets. In the case of the fair value of buildings and the allocation of value to land and other intangibles, the estimates of the values of these components will affect the amount of depreciation and amortization the Company records over the estimated useful life of the property acquired or the remaining lease term. In the case of the value of in place leases, the Company makes best estimates based on the evaluation of the specific characteristics of each tenant’s lease. Factors considered include estimates of carrying costs during hypothetical expected lease up periods, market conditions and costs to execute similar leases. These assumptions affect the amount of future revenue that the Company will recognize over the remaining lease term for the acquired in place leases. The Company evaluates each purchase transaction to determine whether the acquired assets meet the definition of a business. Transaction costs related to acquisitions that are not deemed to be businesses are included in the cost basis of the acquired assets, while transaction costs related to acquisitions that are deemed to be businesses are expensed as incurred. All of the Company’s acquisitions of investment properties qualified as asset acquisitions during the periods.

Revenue Recognition Rental income from operating leases is generally recognized on a straight-line basis over the terms of the leases. Substantially all of the Company’s leases contain provisions for specified annual increases over the rents of the prior year and are generally computed in one of three methods depending on specific provisions of each lease as follows: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">(i)</td> <td style="font: 10pt Times New Roman, Times, Serif">a specified annual increase over the prior year’s rent, generally between 1.0% and 3.0%;</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif">(ii)</td> <td style="font: 10pt Times New Roman, Times, Serif">a calculation based on the Consumer Price Index; or</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif">(iii)</td> <td style="font: 10pt Times New Roman, Times, Serif">specific dollar increases.</td></tr> </table> Contingent revenue is not recognized until all possible contingencies have been eliminated. The Company considers the operating history of the lessee and the general condition of the industry when evaluating whether all possible contingencies have been eliminated and have historically, and expect in the future, to not include contingent rents as income until received. The Company follows a policy related to rental income whereby the Company considers a lease to be non-performing after 60 days of non-payment of past due amounts and does not recognize unpaid rental income from that lease until the amounts have been received. Rental revenues relating to non-contingent leases that contain specified rental increases over the life of the lease are recognized on the straight-line basis. Recognizing income on a straight-line basis requires us to calculate the total non-contingent rent containing specified rental increases over the life of the lease and to recognize the revenue evenly over that life. This method results in rental income in the early years of a lease being higher than actual cash received, creating a straight-line rent receivable asset included in our accompanying condensed consolidated balance sheets. At some point during the lease, depending on its terms, the cash rent payments eventually exceed the straight-line rent which results in the straight-line rent receivable asset decreasing to zero over the remainder of the lease term. The Company assesses the collectability of straight-line rent in accordance with the applicable accounting standards and reserve policy. If the lessee becomes delinquent in rent owed under the terms of the lease, the Company may provide a reserve against the recognized straight-line rent receivable asset for a portion, up to its full value, that the Company estimates may not be recoverable. STRAWBERRY FIELDS REIT, INC. and SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE 2. Summary of Significant Accounting Policies (Cont.) Revenue Recognition (Cont.) Capitalized above-market lease values are amortized as a reduction of rental income over the remaining terms of the respective leases. Capitalized below-market leases are accreted to rental income over the remaining terms of the respective leases and expected below-market renewal option periods. The Company reports revenues and expenses within our triple-net leased properties for real estate taxes that are escrowed and obligations of the tenants in accordance with their respective lease with us. Gain from sale of real estate investments is recognized when control of the property is being transferred and it is probable that substantially all consideration will be collected.

0.010 0.030

Allowance for Credit Losses The Company evaluates the liquidity and creditworthiness of its tenants, operators and borrowers on a monthly and quarterly basis. The Company’s evaluation considers industry and economic conditions, individual and portfolio property performance, credit enhancements, liquidity and other factors. The Company’s tenants, borrowers and operators furnish property, portfolio and guarantor/operator-level financial statements, among other information, on a monthly or quarterly basis; the Company utilizes this financial information to calculate the lease or debt service coverages that it uses as a primary credit quality indicator. Lease and debt service coverage information is evaluated together with other property, portfolio and operator performance information, including revenue, expense, net operating income, occupancy, rental rate, reimbursement trends, capital expenditures and EBITDA (defined as earnings before interest, tax, depreciation and amortization), along with other liquidity measures. The Company evaluates, on a monthly basis or immediately upon a significant change in circumstance, its tenants’, operators’ and borrowers’ ability to service their obligations with the Company. The Company maintains an allowance for credit losses for straight-line rent receivables resulting from tenants’ inability to make contractual rent and tenant recovery payments or lease defaults. For straight-line rent receivables, the Company’s assessment is based on amounts estimated to be recoverable over the lease term.

Impairment of Long-Lived Assets and Goodwill The Company assesses the carrying value of real estate assets and related intangibles (“real estate assets”) when events or changes in circumstances indicate that the carrying value may not be recoverable. The Company tests its real estate assets for impairment by comparing the sum of the expected future undiscounted cash flows to the carrying value of the real estate assets. The expected future undiscounted cash flows are calculated utilizing the lowest level of identifiable cash flows that are largely independent of the cash flows of other assets and liabilities. If the carrying value exceeds the expected future undiscounted cash flows, an impairment loss will be recognized to the extent that the carrying value of the real estate assets is greater than their fair value. Goodwill is tested for impairment at least annually based on certain qualitative factors to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying value. Potential impairment indicators include a significant decline in real estate values, significant restructuring plans, current macroeconomic conditions, state of the equity and capital markets or a significant decline in the Company’s market capitalization. If the Company determines that it is more likely than not that the fair value of a reporting unit is less than its carrying value, the Company applies the required two-step quantitative approach. The quantitative procedures of the two-step approach (i) compare the fair value of a reporting unit with its carrying value, including goodwill, and, if necessary, (ii) compare the implied fair value of reporting unit goodwill with the carrying value as if it had been acquired in a business combination at the date of the impairment test. The excess fair value of the reporting unit over the fair value of assets and liabilities, excluding goodwill, is the implied value of goodwill and is used to determine the impairment amount, if any. The Company has selected the fourth quarter of each fiscal year to perform its annual impairment test. STRAWBERRY FIELDS REIT, INC. and SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE 2. Summary of Significant Accounting Policies (Cont.)

Concentrations of Credit Risk Financial instruments which potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, restricted cash and cash equivalents, notes receivable and operating leases on owned properties. These financial instruments are subject to the possibility of loss of carrying value as a result of the failure of other parties to perform according to their contractual obligations or changes in market prices which may make the instrument less valuable. Cash and cash equivalents, restricted cash and equivalents are held with various financial institutions. From time to time, these balances exceed the federally insured limits. These balances are maintained with high quality financial institutions which management believes limits the risk. With respect to notes receivable, the Company obtains various collateral and other protective rights, and continually monitors these rights, in order to reduce such possibilities of loss. In addition, the Company provides reserves for potential losses based upon management’s periodic review of our portfolio. On March 31, 2026 and December 31, 2025, the Company held six notes receivable with an outstanding balance of $<span id="xdx_908_eus-gaap--NotesReceivableNet_iI_pn5n6_c20260331__us-gaap--AccountsNotesLoansAndFinancingReceivableByReceivableTypeAxis__custom--FiveNotesReceivableMember_z2uO2uUZpEde" title="Notes receivable">21.0 and $<span id="xdx_90F_eus-gaap--NotesReceivableNet_iI_pn5n6_c20251231__us-gaap--AccountsNotesLoansAndFinancingReceivableByReceivableTypeAxis__custom--FiveNotesReceivableMember_zbthtJEsjiT" title="Notes receivable">20.8 million, respectively. The notes have maturities ranging from 2026 through 2046, and interest rates ranging from <span id="xdx_90E_eus-gaap--LoansReceivableBasisSpreadOnVariableRate_iI_pid_dp_c20260331__us-gaap--AccountsNotesLoansAndFinancingReceivableByReceivableTypeAxis__custom--FiveNotesReceivableMember__srt--RangeAxis__srt--MinimumMember_zHexGv6fAPBh" title="Interest rate">2% to <span id="xdx_904_eus-gaap--LoansReceivableBasisSpreadOnVariableRate_iI_pid_dp_c20260331__us-gaap--AccountsNotesLoansAndFinancingReceivableByReceivableTypeAxis__custom--FiveNotesReceivableMember__srt--RangeAxis__srt--MaximumMember_z4Nrvb7LQxWc" title="Interest rate">10.25%. One of the notes is collateralized by tenants’ accounts receivable. All other notes receivable are uncollateralized as of March 31, 2026.

21000000.0

20800000

0.02

0.1025

Market Concentration Risk As of March 31, 2026 and December 31, 2025, the Company owned 132 properties and leased one property. The facilities are located in 10 states, with 20 facilities of its total facilities located in Illinois (which include 4,226 skilled nursing and assisted living beds or 27.1% of the Company’s total beds) and 41 of its total facilities in Indiana (which include 3,404 skilled nursing and assisted living beds or 21.8% of the Company’s total beds). Since tenant revenue is primarily generated from Medicare and Medicaid, the operations of the Company are indirectly subject to the administrative directives, rules and regulations of federal and state regulatory agencies, including, but not limited to the Centers for Medicare & Medicaid Services, and the Department of Health and Aging in all states in which the Company operates. Such administrative directives, rules and regulations, including budgetary reimbursement funding, are subject to change by an act of Congress, the passage of laws by the state regulators or an administrative change mandated by one of the executive branch agencies. Such changes may occur with little notice or inadequate funding to pay for the related costs, including the additional administrative burden, to comply with a change.

As of March 31, 2026 and December 31, 2025, the Company owned 132 properties and leased one property. The facilities are located in 10 states, with 20 facilities of its total facilities located in Illinois (which include 4,226 skilled nursing and assisted living beds or 27.1% of the Company’s total beds) and 41 of its total facilities in Indiana (which include 3,404 skilled nursing and assisted living beds or 21.8% of the Company’s total beds). Since tenant revenue is primarily generated from Medicare and Medicaid, the operations of the Company are indirectly subject to the administrative directives, rules and regulations of federal and state regulatory agencies, including, but not limited to the Centers for Medicare & Medicaid Services, and the Department of Health and Aging in all states in which the Company operates.

Debt and Capital Raising Issuance Costs Costs incurred in connection with the issuance of equity interests are recorded as a reduction of additional paid-in capital. Debt issuance costs related to debt instruments, excluding line of credit arrangements, are deferred, recorded as a reduction of the related debt liability, and amortized to interest expense over the remaining term of the related debt liability utilizing the interest method. Deferred financing costs related to line of credit arrangements are deferred, recorded as an asset and amortized to interest expense over the remaining term of the related line of credit arrangement utilizing the interest method. Penalties incurred to extinguish debt and any remaining unamortized debt issuance costs, discounts and premiums are recognized as income or expense in the condensed consolidated statements of income at the time of extinguishment.

Segment Reporting Accounting guidance regarding disclosures about segments of an enterprise and related information establishes standards for the manner in which public business enterprises report information about operating segments. The Company’s investment decisions in health care properties, and resulting investments are managed as a single operating segment for internal reporting and for internal decision-making purposes. Therefore, the Company has concluded that it operates as a single segment. The Chief Operating Decision Makers for the segment is/ are: Moishe Gubin, Chairman and Chief Executive Officer and Greg Flamion, Chief Financial Officer. STRAWBERRY FIELDS REIT, INC. and SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE 2. Summary of Significant Accounting Policies (Cont.)

Basic and Diluted Income Per Common Share The Company calculates basic income per common share by dividing net income attributable to common stockholders by the weighted average number of common shares outstanding during the period. At March 31, 2026 and 2025, there were <span id="xdx_906_eus-gaap--WeightedAverageNumberDilutedSharesOutstandingAdjustment_pid_c20260101__20260331__us-gaap--StatementEquityComponentsAxis__custom--OperatingPartnershipUnitsMember_zuREdfCbeNp4" title="Operating partnership outstanding">42,362,059 and <span id="xdx_904_eus-gaap--WeightedAverageNumberDilutedSharesOutstandingAdjustment_pid_c20250101__20250331__us-gaap--StatementEquityComponentsAxis__custom--OperatingPartnershipUnitsMember_zos0s3qBgFgf" title="Operating partnership outstanding">42,999,908 OP units outstanding which were potentially dilutive securities. During the three month periods ended March 31, 2026 and 2025, the assumed conversion of the OP units had no impact on basic income per share.

42362059

42999908

Foreign Currency Translation and Transactions Assets and liabilities denominated in foreign currencies that are translated into U.S. dollars use exchange rates in effect at the end of the period, and revenues and expenses denominated in foreign currencies that are translated into U.S. dollars use average rates of exchange in effect during the related period. Gains or losses resulting from translation are included in accumulated other comprehensive loss, a component of equity on the condensed consolidated balance sheets. Gains or losses resulting from foreign currency transactions are translated into U.S. dollars at the rates of exchange prevailing at the dates of the transactions. The effects of transaction gains or losses, if any, are included in other income, in the condensed consolidated statements of income.

Fair Value Measurement The Company measures and discloses the fair value of nonfinancial and financial assets and liabilities utilizing a hierarchy of valuation techniques based on whether the inputs to a fair value measurement are considered to be observable or unobservable in a marketplace. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. This hierarchy requires the use of observable market data when available. These inputs have created the following fair value hierarchy: ● Level 1—quoted prices for identical instruments in active markets; ● Level 2—quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and ● Level 3—fair value measurements derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. The Company measures fair value using a set of standardized procedures that are outlined herein for all assets and liabilities which are required to be measured at fair value. When available, the Company utilizes quoted market prices from an independent third-party source to determine fair value and classifies such items in Level 1. In instances where a market price is available, but the instrument is in an inactive or over-the-counter market, the Company consistently applies the dealer (market maker) pricing estimate and classifies the asset or liability in Level 2. If quoted market prices or inputs are not available, fair value measurements are based upon valuation models that utilize current market or independently sourced market inputs, such as interest rates, option volatilities, credit spreads and/or market capitalization rates. Items valued using such internally generated valuation techniques are classified according to the lowest level input that is significant to the fair value measurement. As a result, the asset or liability could be classified in either Level 2 or Level 3 even though there may be some significant inputs that are readily observable. Internal fair value models and techniques used by the Company include discounted cash flow valuation models. STRAWBERRY FIELDS REIT, INC. and SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE 2. Summary of Significant Accounting Policies (Cont.)

Real Estate Investments – Held for Sale On March 31, 2026 and December 31, 2025, the Company had one property included in real estate investments which was held for sale and carried at the lower of their net book value or fair value on a non-recurring basis on the condensed consolidated balance sheets. The Company’s real estate investments held for sale were classified as Level 3 of the fair value hierarchy.

Stock-Based Compensation The Company accounts for share-based payment awards in accordance with ASC Topic 718, Compensation – Stock Compensation (“ASC 718”). ASC 718 requires that the cost resulting from all share-based payment transactions be recognized in the condensed consolidated financial statements. ASC 718 requires all entities to apply a fair value-based measurement method in accounting for share-based payment transactions. The Company recognizes share-based payments over the vesting period.

Recent Accounting Pronouncements In November 2024, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2024-03, “Expense Disaggregation Disclosures.” ASU 2024-03 requires disclosure to disaggregate prescribed expenses within relevant income statement captions. The standard is effective for fiscal years beginning after December 15, 2026 and for interim periods after December 15, 2027. Early adoption is permitted. The Company is evaluating the impact of the changes to its existing disclosures. In July 2025, the FASB issued ASU No. 2025-05, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets The ASU provides an optional practical expedient for estimating future credit losses based on current conditions as of the balance sheet date and assuming those conditions do not change over the remaining life of the accounts receivable. This standard is effective January 1, 2026. The Company does not expect this ASU to have a material impact on the condensed consolidated results of operations and financial condition. In September 2025, the FASB issued ASU No. 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. The ASU removes references to prescriptive software development stages and includes an updated framework for capitalizing internal software costs. This standard is effective January 1, 2028. The Company is currently evaluating this ASU’s impact on the condensed consolidated results of operations and financial condition

NOTE 3. Restricted Cash and Equivalents The following table presents the Company’s restricted cash and equivalents and escrow deposits: Schedule of Restricted Cash and Equivalents and Escrow Deposits <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 80%"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_494_20260331_zYV2FSokdJG2" style="font-weight: bold; text-align: center">March 31,</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_49A_20251231_zZw8B4o6Vm15" style="font-weight: bold; text-align: center">December 31,</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; text-align: center">(amounts in $000’s)</td><td style="padding-bottom: 1pt"> </td></tr> <tr id="xdx_400_eus-gaap--RestrictedCashAndCashEquivalentsAtCarryingValue_iI_pn3n3_hus-gaap--RestrictedCashAndCashEquivalentsCashAndCashEquivalentsAxis__custom--EscrowWithTrusteeMember_z6wHtvjeX8li" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left">Escrow with Trustee</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">2,188</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">2,170</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--RestrictedCashAndCashEquivalentsAtCarryingValue_iI_pn3n3_hus-gaap--RestrictedCashAndCashEquivalentsCashAndCashEquivalentsAxis__custom--MIPEscrowAccountsMember_z8UCLBkGv535" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">MIP escrow accounts</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">972</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">790</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--RestrictedCashAndCashEquivalentsAtCarryingValue_iI_pn3n3_hus-gaap--RestrictedCashAndCashEquivalentsCashAndCashEquivalentsAxis__custom--OtherEscrowAndDebtDepositsMember_z8BMsECtbP25" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Other escrow and debt deposits</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">708</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">270</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--RestrictedCashAndCashEquivalentsAtCarryingValue_iI_pn3n3_hus-gaap--RestrictedCashAndCashEquivalentsCashAndCashEquivalentsAxis__custom--PropertyTaxAndInsuranceEscrowMember_zGZDMgPmiGXe" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Property tax and insurance escrow</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,592</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6,815</td><td style="text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--RestrictedCashAndCashEquivalentsAtCarryingValue_iI_pn3n3_hus-gaap--RestrictedCashAndCashEquivalentsCashAndCashEquivalentsAxis__custom--InterestAndExpenseReserveBondsEscrowMember_zKyW4ZzGYrT9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Interest and expense reserve bonds escrow</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">12,797</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">12,696</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--RestrictedCashAndCashEquivalentsAtCarryingValue_iI_pn3n3_hus-gaap--RestrictedCashAndCashEquivalentsCashAndCashEquivalentsAxis__custom--HUDReplacementReservesMember_zrOBLkXyInN1" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">HUD replacement reserves</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">12,850</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">12,205</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--RestrictedCashAndCashEquivalentsAtCarryingValue_iI_pn3n3_zQcKdwmJTDd7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Total restricted cash and equivalents</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">33,107</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">34,946</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> Escrow with trustee - The Company transfers funds to the trustee for its Series A, B, C and D bonds to cover principal and interest payments prior to the payment date. MIP escrow accounts - The Company is required to make monthly escrow deposits for mortgage insurance premiums on the HUD guaranteed mortgage loans. Other escrow and debt deposits – The Company funds various escrow accounts under certain of its loan agreements, primarily to cover debt service on underlying loans. Property tax and insurance escrow - The Company funds escrows for real estate taxes and insurance under certain of its loan agreements. Interest and expense reserve bonds escrow - The indentures for the series A, B, C, and D Bonds require the funding of a six-month interest reserve as well as an expense reserve. See Note 7 – Bonds, Note Payable and Other Debt. HUD replacement reserves - The Company is required to make monthly payments into an escrow for replacement and improvement of the project assets covered by HUD guaranteed mortgage loans. A portion of the replacement reserves are required to be maintained until the applicable loan is fully paid.

The following table presents the Company’s restricted cash and equivalents and escrow deposits: Schedule of Restricted Cash and Equivalents and Escrow Deposits <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 80%"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_494_20260331_zYV2FSokdJG2" style="font-weight: bold; text-align: center">March 31,</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_49A_20251231_zZw8B4o6Vm15" style="font-weight: bold; text-align: center">December 31,</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; text-align: center">(amounts in $000’s)</td><td style="padding-bottom: 1pt"> </td></tr> <tr id="xdx_400_eus-gaap--RestrictedCashAndCashEquivalentsAtCarryingValue_iI_pn3n3_hus-gaap--RestrictedCashAndCashEquivalentsCashAndCashEquivalentsAxis__custom--EscrowWithTrusteeMember_z6wHtvjeX8li" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left">Escrow with Trustee</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">2,188</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">2,170</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--RestrictedCashAndCashEquivalentsAtCarryingValue_iI_pn3n3_hus-gaap--RestrictedCashAndCashEquivalentsCashAndCashEquivalentsAxis__custom--MIPEscrowAccountsMember_z8UCLBkGv535" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">MIP escrow accounts</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">972</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">790</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--RestrictedCashAndCashEquivalentsAtCarryingValue_iI_pn3n3_hus-gaap--RestrictedCashAndCashEquivalentsCashAndCashEquivalentsAxis__custom--OtherEscrowAndDebtDepositsMember_z8BMsECtbP25" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Other escrow and debt deposits</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">708</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">270</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--RestrictedCashAndCashEquivalentsAtCarryingValue_iI_pn3n3_hus-gaap--RestrictedCashAndCashEquivalentsCashAndCashEquivalentsAxis__custom--PropertyTaxAndInsuranceEscrowMember_zGZDMgPmiGXe" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Property tax and insurance escrow</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,592</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6,815</td><td style="text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--RestrictedCashAndCashEquivalentsAtCarryingValue_iI_pn3n3_hus-gaap--RestrictedCashAndCashEquivalentsCashAndCashEquivalentsAxis__custom--InterestAndExpenseReserveBondsEscrowMember_zKyW4ZzGYrT9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Interest and expense reserve bonds escrow</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">12,797</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">12,696</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--RestrictedCashAndCashEquivalentsAtCarryingValue_iI_pn3n3_hus-gaap--RestrictedCashAndCashEquivalentsCashAndCashEquivalentsAxis__custom--HUDReplacementReservesMember_zrOBLkXyInN1" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">HUD replacement reserves</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">12,850</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">12,205</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--RestrictedCashAndCashEquivalentsAtCarryingValue_iI_pn3n3_zQcKdwmJTDd7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Total restricted cash and equivalents</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">33,107</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">34,946</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

2188000

2170000

972000

790000

708000

270000

3592000

6815000

12797000

12696000

12850000

12205000

33107000

34946000

NOTE 4. Real Estate Investments, net There were no acquisition of properties during the three month period ending March 31, 2026. On January 1, 2025, the Company entered into a new master lease for 10 Kentucky properties formally part of the Landmark Master Lease. Base rent is $<span id="xdx_907_ecustom--InitialAnnualBaseRent_iI_pn5n6_c20250101__us-gaap--TypeOfArrangementAxis__us-gaap--LeaseAgreementsMember__srt--StatementGeographicalAxis__stpr--KY_zVJJWiuxRjS1" title="Initial annual base rent">23.3 million a year and is subject to an increase based on CPI with a minimum increase of <span id="xdx_908_ecustom--LeaseBaseRentAnnuallyIncreasingRate_iI_pid_dp_uPure_c20250101__us-gaap--TypeOfArrangementAxis__us-gaap--LeaseAgreementsMember__srt--StatementGeographicalAxis__stpr--KY_zcgZw0aNPq44" title="Lease base rent annually increasing rate">2.50%. <span id="xdx_907_eus-gaap--LesseeOperatingLeaseOptionToExtend_c20250101__20250101__us-gaap--TypeOfArrangementAxis__us-gaap--LeaseAgreementsMember__srt--StatementGeographicalAxis__stpr--KY_z0X7GehJd4Jg" title="Lease option to extend">The initial lease term is 10 years with four 5-year extension options. Also, as part of the negotiation of the new Kentucky Master Lease, Strawberry Fields entered into a <span id="xdx_905_eus-gaap--DebtInstrumentTerm_dtY_c20250101__20250101__us-gaap--TypeOfArrangementAxis__us-gaap--LeaseAgreementsMember__srt--StatementGeographicalAxis__stpr--KY_zFvofTuinGZ6" title="Notes term">5 year note payable with the parent of the Landmark tenant for $50.9 million dollars, included in bonds, notes payable and other debt in the accompanying condensed consolidated balance sheets. On January 2, 2025, the Company acquired 6 facilities consisting of 354 beds in Kansas. The acquisition was for $24.0 million and the Company funded the acquisition utilizing the cash from the condensed consolidated balance sheets. The Company formed a new master lease for an initial 10-year period that included two 5-year extension options on a triple-net basis. Additionally, the lease will increase the Company’s annual rents by $2.4 million and is subject to <span id="xdx_90D_ecustom--LeaseBaseRentAnnuallyIncreasingRate_iI_pid_dp_c20250102__us-gaap--TypeOfArrangementAxis__us-gaap--LeaseAgreementsMember_z9VU98tNSuPd" title="Lease base rent annually increasing rate">3% annual increases. On March 31, 2025, the Company acquired a skilled nursing facility with 100 licensed beds near Oklahoma City, Oklahoma. The acquisition was $5.0 million and was funded utilizing cash from the condensed consolidated balance sheets. The initial term of the lease is 10 years and includes two 5-year extension options. Base rent for the property is $0.5 million dollars annually and is subject to <span id="xdx_90D_ecustom--LeaseBaseRentAnnuallyIncreasingRate_iI_pid_dp_c20250331__us-gaap--TypeOfArrangementAxis__us-gaap--LeaseAgreementsMember_zGflTvuBrsRj" title="Lease base rent annual increasing rate">3% annual increases. Real estate investments consist of the following: Schedule of Real Estate Investment <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Estimated Useful Lives</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_499_20260331_zyj8oCe8VVph" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">March 31, 2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49D_20251231_zAbD4PuKdrbh" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">(Years)</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; text-align: center">(Amounts in $000’s)</td><td style="padding-bottom: 1pt"> </td></tr> <tr id="xdx_40F_eus-gaap--RealEstateInvestmentPropertyAtCost_iI_pn3n3_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--BuildingMember_zDJkQAUQUL8a" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 52%; text-align: left">Buildings and improvements</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right"><span id="xdx_90D_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20260331__srt--RangeAxis__srt--MinimumMember__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--BuildingMember_zqgiqxTmbgJg" title="Property plant and equipment useful life">7-<span id="xdx_90A_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20260331__srt--RangeAxis__srt--MaximumMember__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--BuildingMember_zDkE7p1gxg94" title="Property plant and equipment useful life">45</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">773,555</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">773,555</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--RealEstateInvestmentPropertyAtCost_iI_pn3n3_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--EquipmentAndPersonalPropertyMember_z50d4IYItkz4" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Equipment and personal property</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_903_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20260331__srt--RangeAxis__srt--MinimumMember__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--EquipmentAndPersonalPropertyMember_zPzD2uUy2S1i" title="Property plant and equipment useful life">2-<span id="xdx_90E_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20260331__srt--RangeAxis__srt--MaximumMember__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--EquipmentAndPersonalPropertyMember_zZ5pjHUs5IP" title="Real estate investments, estimated useful lives">18</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">123,072</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">123,072</td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--RealEstateInvestmentPropertyAtCost_iI_pn3n3_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LandMember_zmncrMSEZ9zj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt">Land</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">72,586</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">72,586</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--RealEstateInvestmentPropertyAtCost_iI_pn3n3_maREIPNzl4p_z8OvaM4Y3Py5" style="vertical-align: bottom; background-color: White"> <td>Real estate investments, gross</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">969,213</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">969,213</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--RealEstateInvestmentPropertyAccumulatedDepreciation_iNI_pn3n3_di_msREIPNzl4p_zZT016UiMbO3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Less: accumulated depreciation</td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(291,302</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(282,062</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_40E_eus-gaap--RealEstateInvestmentPropertyNet_iTI_pn3n3_mtREIPNzl4p_z4qGoVUSX9t7" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Real estate investments, net</td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">677,911</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">687,151</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> For the three-month periods ended March 31, 2026 and March 31, 2025, total depreciation expense was $9.2 million and $8.7 million, respectively. STRAWBERRY FIELDS REIT, INC. and SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

23300000 0.0250

The initial lease term is 10 years with four 5-year extension options.

P5Y

50900000

24000000.0

The Company formed a new master lease for an initial 10-year period that included two 5-year extension options on a triple-net basis.

2400000 0.03

5000000.0

The initial term of the lease is 10 years and includes two 5-year extension options.

500000 0.03

Real estate investments consist of the following: Schedule of Real Estate Investment <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Estimated Useful Lives</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_499_20260331_zyj8oCe8VVph" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">March 31, 2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49D_20251231_zAbD4PuKdrbh" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">(Years)</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; text-align: center">(Amounts in $000’s)</td><td style="padding-bottom: 1pt"> </td></tr> <tr id="xdx_40F_eus-gaap--RealEstateInvestmentPropertyAtCost_iI_pn3n3_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--BuildingMember_zDJkQAUQUL8a" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 52%; text-align: left">Buildings and improvements</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right"><span id="xdx_90D_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20260331__srt--RangeAxis__srt--MinimumMember__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--BuildingMember_zqgiqxTmbgJg" title="Property plant and equipment useful life">7-<span id="xdx_90A_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20260331__srt--RangeAxis__srt--MaximumMember__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--BuildingMember_zDkE7p1gxg94" title="Property plant and equipment useful life">45</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">773,555</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">773,555</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--RealEstateInvestmentPropertyAtCost_iI_pn3n3_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--EquipmentAndPersonalPropertyMember_z50d4IYItkz4" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Equipment and personal property</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_903_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20260331__srt--RangeAxis__srt--MinimumMember__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--EquipmentAndPersonalPropertyMember_zPzD2uUy2S1i" title="Property plant and equipment useful life">2-<span id="xdx_90E_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20260331__srt--RangeAxis__srt--MaximumMember__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--EquipmentAndPersonalPropertyMember_zZ5pjHUs5IP" title="Real estate investments, estimated useful lives">18</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">123,072</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">123,072</td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--RealEstateInvestmentPropertyAtCost_iI_pn3n3_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LandMember_zmncrMSEZ9zj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt">Land</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">72,586</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">72,586</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--RealEstateInvestmentPropertyAtCost_iI_pn3n3_maREIPNzl4p_z8OvaM4Y3Py5" style="vertical-align: bottom; background-color: White"> <td>Real estate investments, gross</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">969,213</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">969,213</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--RealEstateInvestmentPropertyAccumulatedDepreciation_iNI_pn3n3_di_msREIPNzl4p_zZT016UiMbO3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Less: accumulated depreciation</td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(291,302</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(282,062</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_40E_eus-gaap--RealEstateInvestmentPropertyNet_iTI_pn3n3_mtREIPNzl4p_z4qGoVUSX9t7" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Real estate investments, net</td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">677,911</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">687,151</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

P7Y

P45Y

773555000

P2Y

P18Y

123072000

72586000

969213000

291302000

282062000

677911000

687151000

9200000

8700000

NOTE 5. Intangible Assets and Goodwill Intangible assets consist of the following goodwill, Certificate of Need (“CON”) licenses and lease rights: Schedule of Intangible Assets and Goodwill <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_4B2_us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis_custom--GoodwillIncludingCONLicensesMember_zcz4er6sEnp3" style="border-bottom: Black 1pt solid; text-align: center">Goodwill including CON Licenses</td><td style="padding-bottom: 1pt"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_4B3_us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis_custom--LeaseRightsMember_zQTYuVinDxK7" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Lease Rights</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_4BF_z70pH1Vr3UCb" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Total</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="10" style="border-bottom: Black 1pt solid; text-align: center">(Amounts in $000’s)</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-decoration: underline">Balances, December 31, 2024</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_433_c20241231_eus-gaap--OtherFiniteLivedIntangibleAssetsGross_iI_pn3n3_zXBLaGchnsGg" style="vertical-align: bottom; background-color: White"> <td style="width: 52%">Gross</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">1,323</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right">78,577</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right">79,900</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_431_c20241231_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_pn3n3_zxc0XmadAUW1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Accumulated amortization</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(51,953</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(51,953</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_43E_c20241231_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_pn3n3_zU1IaIagGuza" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Net carrying amount</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,323</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">26,624</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">27,947</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_430_c20241231_ecustom--AcquisitionOfLeaseRightsFiniteLivedIntangibleAssets_iI_pn3n3_zvI4ceaOQMUf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Acquisition of lease rights</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">50,880</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">50,880</td><td style="text-align: left"> </td></tr> <tr id="xdx_434_c20241231_ecustom--OtherFiniteLivedIntangibleAssetsAmortization_iI_pn3n3_zZxVTBVrgvW4" style="vertical-align: bottom; background-color: White"> <td>Amortization</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(2,588</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(2,588</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-decoration: underline">Balances, March 31, 2025</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_43D_c20250331_eus-gaap--OtherFiniteLivedIntangibleAssetsGross_iI_pn3n3_z6ZL5aepUFZa" style="vertical-align: bottom; background-color: White"> <td>Gross</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,323</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">129,457</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">130,780</td><td style="text-align: left"> </td></tr> <tr id="xdx_430_c20250331_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_pn3n3_zBHzSdnfMBAc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Accumulated amortization</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(54,541</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(54,541</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_435_c20250331_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_pn3n3_zchTcKwcSdU1" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Net carrying amount</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,323</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">74,916</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">76,239</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-decoration: underline">Balances, December 31, 2025</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_438_c20251231_eus-gaap--OtherFiniteLivedIntangibleAssetsGross_iI_pn3n3_z4TgAwcYaT55" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Gross</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,323</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">129,457</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">130,780</td><td style="text-align: left"> </td></tr> <tr id="xdx_43D_c20251231_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_pn3n3_zCJf1tbwDgc6" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Accumulated amortization</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(62,428</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(62,428</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_43E_c20251231_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_pn3n3_zNdnYdpgcqnk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Net carrying amount</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,323</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">67,029</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">68,352</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_431_c20251231_ecustom--OtherFiniteLivedIntangibleAssetsAmortization_iI_pn3n3_zAWCc22ldxWk" style="vertical-align: bottom; background-color: White"> <td>Amortization</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(2,213</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(2,213</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-decoration: underline">Balances, March 31, 2026</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_43D_c20260331_eus-gaap--OtherFiniteLivedIntangibleAssetsGross_iI_pn3n3_zrzqMWQI16R9" style="vertical-align: bottom; background-color: White"> <td>Gross</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,323</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">129,457</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">130,780</td><td style="text-align: left"> </td></tr> <tr id="xdx_43F_c20260331_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_pn3n3_zRR1AZdEqIBi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Accumulated amortization</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(64,641</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(64,641</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_430_c20260331_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_pn3n3_zIZvhkOSsTsl" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Net carrying amount</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,323</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">64,816</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">66,139</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p id="xdx_890_eus-gaap--ScheduleofFiniteLivedIntangibleAssetsFutureAmortizationExpenseTableTextBlock_zV2sghboBaO2" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; padding: 0pt; text-align: justify">Estimated amortization expense for all lease rights for each of the future years ending December 31, is as follows: Schedule of Estimated Amortization Expenses For Lease Rights <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49B_20260331__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--LeaseRightsMember_z7aQpGrVgw64" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Amortization of Lease Rights</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">(Amounts in $000’s)</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_408_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseRemainderOfFiscalYear_iI_pn3n3_hus-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--LeaseRightsMember_maFLIANzkJb_zeBSi9uFsr0c" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; width: 80%">2026 (nine months)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 14%; text-align: right">5,983</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseNextTwelveMonths_iI_pn3n3_hus-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--LeaseRightsMember_maFLIANzkJb_zixtoMjv9Vuf" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">2027</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">7,949</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearTwo_iI_pn3n3_hus-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--LeaseRightsMember_maFLIANzkJb_zrpLdegd9QC" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">2028</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">7,564</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearThree_iI_pn3n3_hus-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--LeaseRightsMember_maFLIANzkJb_zmsq6IkXaHM4" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">2029</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">7,488</td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearFour_iI_pn3n3_hus-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--LeaseRightsMember_maFLIANzkJb_zQduXAsWAsM3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">2030</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">7,488</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_ecustom--FiniteLivedIntangibleAssetsAmortizationExpenseAfterYearFour_iI_pn3n3_hus-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--LeaseRightsMember_maFLIANzkJb_zovynQgoTZph" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Thereafter</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">28,344</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--FiniteLivedIntangibleAssetsNet_iTI_pn3n3_hus-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--LeaseRightsMember_mtFLIANzkJb_zMqEOyJzdCAa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Total</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">64,816</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> </table> STRAWBERRY FIELDS REIT, INC. and SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Intangible assets consist of the following goodwill, Certificate of Need (“CON”) licenses and lease rights: Schedule of Intangible Assets and Goodwill <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_4B2_us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis_custom--GoodwillIncludingCONLicensesMember_zcz4er6sEnp3" style="border-bottom: Black 1pt solid; text-align: center">Goodwill including CON Licenses</td><td style="padding-bottom: 1pt"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_4B3_us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis_custom--LeaseRightsMember_zQTYuVinDxK7" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Lease Rights</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_4BF_z70pH1Vr3UCb" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Total</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="10" style="border-bottom: Black 1pt solid; text-align: center">(Amounts in $000’s)</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-decoration: underline">Balances, December 31, 2024</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_433_c20241231_eus-gaap--OtherFiniteLivedIntangibleAssetsGross_iI_pn3n3_zXBLaGchnsGg" style="vertical-align: bottom; background-color: White"> <td style="width: 52%">Gross</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">1,323</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right">78,577</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right">79,900</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_431_c20241231_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_pn3n3_zxc0XmadAUW1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Accumulated amortization</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(51,953</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(51,953</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_43E_c20241231_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_pn3n3_zU1IaIagGuza" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Net carrying amount</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,323</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">26,624</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">27,947</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_430_c20241231_ecustom--AcquisitionOfLeaseRightsFiniteLivedIntangibleAssets_iI_pn3n3_zvI4ceaOQMUf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Acquisition of lease rights</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">50,880</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">50,880</td><td style="text-align: left"> </td></tr> <tr id="xdx_434_c20241231_ecustom--OtherFiniteLivedIntangibleAssetsAmortization_iI_pn3n3_zZxVTBVrgvW4" style="vertical-align: bottom; background-color: White"> <td>Amortization</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(2,588</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(2,588</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-decoration: underline">Balances, March 31, 2025</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_43D_c20250331_eus-gaap--OtherFiniteLivedIntangibleAssetsGross_iI_pn3n3_z6ZL5aepUFZa" style="vertical-align: bottom; background-color: White"> <td>Gross</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,323</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">129,457</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">130,780</td><td style="text-align: left"> </td></tr> <tr id="xdx_430_c20250331_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_pn3n3_zBHzSdnfMBAc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Accumulated amortization</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(54,541</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(54,541</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_435_c20250331_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_pn3n3_zchTcKwcSdU1" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Net carrying amount</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,323</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">74,916</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">76,239</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-decoration: underline">Balances, December 31, 2025</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_438_c20251231_eus-gaap--OtherFiniteLivedIntangibleAssetsGross_iI_pn3n3_z4TgAwcYaT55" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Gross</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,323</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">129,457</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">130,780</td><td style="text-align: left"> </td></tr> <tr id="xdx_43D_c20251231_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_pn3n3_zCJf1tbwDgc6" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Accumulated amortization</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(62,428</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(62,428</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_43E_c20251231_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_pn3n3_zNdnYdpgcqnk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Net carrying amount</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,323</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">67,029</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">68,352</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_431_c20251231_ecustom--OtherFiniteLivedIntangibleAssetsAmortization_iI_pn3n3_zAWCc22ldxWk" style="vertical-align: bottom; background-color: White"> <td>Amortization</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(2,213</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(2,213</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-decoration: underline">Balances, March 31, 2026</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_43D_c20260331_eus-gaap--OtherFiniteLivedIntangibleAssetsGross_iI_pn3n3_zrzqMWQI16R9" style="vertical-align: bottom; background-color: White"> <td>Gross</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,323</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">129,457</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">130,780</td><td style="text-align: left"> </td></tr> <tr id="xdx_43F_c20260331_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_pn3n3_zRR1AZdEqIBi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Accumulated amortization</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(64,641</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(64,641</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_430_c20260331_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_pn3n3_zIZvhkOSsTsl" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Net carrying amount</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,323</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">64,816</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">66,139</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

1323000

78577000

79900000

-51953000

1323000

26624000

27947000

50880000 50880000 -2588000 -2588000

1323000

129457000

130780000

-54541000

1323000

74916000

76239000

1323000

129457000

130780000

-62428000

1323000

67029000

68352000

-2213000 -2213000

1323000

129457000

130780000

-64641000

1323000

64816000

66139000

<p id="xdx_890_eus-gaap--ScheduleofFiniteLivedIntangibleAssetsFutureAmortizationExpenseTableTextBlock_zV2sghboBaO2" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; padding: 0pt; text-align: justify">Estimated amortization expense for all lease rights for each of the future years ending December 31, is as follows: Schedule of Estimated Amortization Expenses For Lease Rights <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49B_20260331__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--LeaseRightsMember_z7aQpGrVgw64" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Amortization of Lease Rights</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">(Amounts in $000’s)</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_408_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseRemainderOfFiscalYear_iI_pn3n3_hus-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--LeaseRightsMember_maFLIANzkJb_zeBSi9uFsr0c" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; width: 80%">2026 (nine months)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 14%; text-align: right">5,983</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseNextTwelveMonths_iI_pn3n3_hus-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--LeaseRightsMember_maFLIANzkJb_zixtoMjv9Vuf" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">2027</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">7,949</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearTwo_iI_pn3n3_hus-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--LeaseRightsMember_maFLIANzkJb_zrpLdegd9QC" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">2028</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">7,564</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearThree_iI_pn3n3_hus-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--LeaseRightsMember_maFLIANzkJb_zmsq6IkXaHM4" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">2029</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">7,488</td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearFour_iI_pn3n3_hus-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--LeaseRightsMember_maFLIANzkJb_zQduXAsWAsM3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">2030</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">7,488</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_ecustom--FiniteLivedIntangibleAssetsAmortizationExpenseAfterYearFour_iI_pn3n3_hus-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--LeaseRightsMember_maFLIANzkJb_zovynQgoTZph" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Thereafter</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">28,344</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--FiniteLivedIntangibleAssetsNet_iTI_pn3n3_hus-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--LeaseRightsMember_mtFLIANzkJb_zMqEOyJzdCAa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Total</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">64,816</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> </table>

5983000

7949000

7564000

7488000

28344000

64816000

NOTE 6. Leases As of March 31, 2026, and December 31, 2025, the Company had leased 133 properties, to tenant/operators in the States of Arkansas, Illinois, Indiana, Kansas, Kentucky, Missouri, Ohio, Oklahoma, Tennessee and Texas. As of March 31, 2026, and December 31, 2025, all the Company’s facilities were leased. Most of these facilities are leased on a triple net basis, meaning that the lessee (i.e., operator of the facility) is obligated under the lease for all expenses of the property in respect to insurance, taxes and property maintenance, as well as the lease payments. The following table provides additional information regarding the properties owned/leased by the Company for the periods indicated: Schedule of Properties Owned/Leased Information <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_493_20260331_zRwjo1xGjrEh" style="font-weight: bold; text-align: center">March 31,</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_490_20251231_zmYCdnHLSAVf" style="font-weight: bold; text-align: center">December 31,</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_401_ecustom--CumulativeNumberOfProperties_iI_pid_uInteger_z9m4DiknGxzc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left">Cumulative number of properties</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 14%; text-align: right">133</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 14%; text-align: right">133</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_401_ecustom--CumulativeNumberOfOperationalBeds_iI_pid_uInteger_zHT8e0XQheE6" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Cumulative number of operational beds</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">15,602</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">15,602</td><td style="text-align: left"> </td></tr> </table> <p id="xdx_892_ecustom--ScheduleOfAdditionalInformationOnPropertiesFacilitiesLeasedTableTextBlock_zDSkgeI8yhF5" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; padding: 0pt; text-align: justify">The following table provides additional information regarding the properties/facilities leased by the Company as of March 31, 2026: Schedule of Additional Information on Properties Facilities Leased <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%"> <tr style="display: none; vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">State</td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_488_ecustom--NumberOfOperationalUnits_iI_uInteger_zIO3Ywrueuv6" style="border-bottom: Black 1pt solid; text-align: center">Number of Operational Beds/Units</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_485_ecustom--NumberOfFacilitiesOwnedByCompany_iI_uInteger_zJQEfPpZX7f8" style="border-bottom: Black 1pt solid; text-align: center">Owned by Company</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_483_ecustom--NumberOfFacilitiesLeasedByTheCompany_iI_uInteger_z8rEJQT5hBol" style="border-bottom: Black 1pt solid; text-align: center">Leased by Company</td><td style="padding-bottom: 1pt"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_481_ecustom--TotalNumberOfFacilities_iI_uInteger_zTFZRgFHaqLj" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Total</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">State</td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Number of Operational Beds/Units</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Owned by Company</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Leased by Company</td><td style="padding-bottom: 1pt"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Total</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_417_20260331__srt--StatementGeographicalAxis__stpr--IL__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--PropertyMember_zm747B5nMSld" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 36%">Illinois</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right">4,226</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right">20</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right">20</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_419_20260331__srt--StatementGeographicalAxis__stpr--IN__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--PropertyMember_zJXBaZImARZj" style="vertical-align: bottom; background-color: White"> <td>Indiana</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,404</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">35</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">36</td><td style="text-align: left"> </td></tr> <tr id="xdx_417_20260331__srt--StatementGeographicalAxis__stpr--OH__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--PropertyMember_zzCSbgId4S0i" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Ohio</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">238</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4</td><td style="text-align: left"> </td></tr> <tr id="xdx_411_20260331__srt--StatementGeographicalAxis__stpr--TN__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--PropertyMember_zHiUzvvdO38h" style="vertical-align: bottom; background-color: White"> <td>Tennessee</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,412</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">15</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">15</td><td style="text-align: left"> </td></tr> <tr id="xdx_413_20260331__srt--StatementGeographicalAxis__stpr--KY__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--PropertyMember_z6i6Pk5YY453" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Kentucky</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,163</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">10</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">10</td><td style="text-align: left"> </td></tr> <tr id="xdx_41F_20260331__srt--StatementGeographicalAxis__stpr--AR__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--PropertyMember_z8pO77eQI3cc" style="vertical-align: bottom; background-color: White"> <td>Arkansas</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,568</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">13</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">13</td><td style="text-align: left"> </td></tr> <tr id="xdx_419_20260331__srt--StatementGeographicalAxis__stpr--OK__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--PropertyMember_zIhbt2HngQVh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Oklahoma</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">477</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5</td><td style="text-align: left"> </td></tr> <tr id="xdx_41B_20260331__srt--StatementGeographicalAxis__stpr--TX__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--PropertyMember_zuvwmUlKOdn3" style="vertical-align: bottom; background-color: White"> <td>Texas</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">839</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6</td><td style="text-align: left"> </td></tr> <tr id="xdx_419_20260331__srt--StatementGeographicalAxis__stpr--MO__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--PropertyMember_zguDNltey2tk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Missouri</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,921</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">18</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">18</td><td style="text-align: left"> </td></tr> <tr id="xdx_411_20260331__srt--StatementGeographicalAxis__stpr--KS__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--PropertyMember_zPhlRrLFssnd" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt">Kansas</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">354</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">6</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">6</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_418_20260331__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--PropertyMember_ziAQp7JatdEf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Total properties</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">15,602</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">132</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">1</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">133</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Facility Type</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_412_20260331__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--FacilityMember__srt--MortgageLoansOnRealEstateDescriptionTypeOfPropertyAxis__custom--SkilledNursingFacilitiesMember_zCRpkfe25srk" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Skilled Nursing Facilities</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">15,195</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">130</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">131</td><td style="text-align: left"> </td></tr> <tr id="xdx_41A_20260331__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--FacilityMember__srt--MortgageLoansOnRealEstateDescriptionTypeOfPropertyAxis__custom--LongTermAcuteCareHospitalsMember_zthg1WakzvIc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Long-Term Acute Care Hospitals</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">63</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2</td><td style="text-align: left"> </td></tr> <tr id="xdx_41D_20260331__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--FacilityMember__srt--MortgageLoansOnRealEstateDescriptionTypeOfPropertyAxis__custom--AssistedLivingFacilityMember_z7a6LfuO4Ly6" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Assisted Living Facility</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">344</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">10</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">10</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr id="xdx_410_20260331__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--FacilityMember_z1P0ZcgNbjAa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Total facilities</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">15,602</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">142</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">1</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">143</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> As of March 31, 2026, total future minimum rental revenues for the Company’s tenants are as follows : Schedule of Future Minimum Rental Revenues <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Year</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49D_20260331_zaxlEPqyGQtf" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Amount</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">(Amounts in $000s)</td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td></tr> <tr id="xdx_40C_eus-gaap--LessorOperatingLeasePaymentsToBeReceivedRemainderOfFiscalYear_iI_pn3n3_maLOLPTzDmc_zikOx6pEP2u8" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; width: 82%">2026 (nine months)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 14%; text-align: right">101,097</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--LessorOperatingLeasePaymentsToBeReceivedNextTwelveMonths_iI_pn3n3_maLOLPTzDmc_zzPbfF7wQN97" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">2027</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">137,720</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--LessorOperatingLeasePaymentsToBeReceivedTwoYears_iI_pn3n3_maLOLPTzDmc_z9PqPJMHjTN7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">2028</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">135,913</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--LessorOperatingLeasePaymentsToBeReceivedThreeYears_iI_pn3n3_maLOLPTzDmc_z4ynQuJXM9h" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">2029</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">130,132</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--LessorOperatingLeasePaymentsToBeReceivedFourYears_iI_pn3n3_maLOLPTzDmc_zO0mFTfAZP67" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">2030</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">131,164</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--LessorOperatingLeasePaymentsToBeReceivedThereafter_iI_pn3n3_maLOLPTzDmc_zwrrnQ24LZA" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Thereafter</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">391,594</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--LessorOperatingLeasePaymentsToBeReceived_iTI_pn3n3_mtLOLPTzDmc_zpPPtZGRPC6d" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Total</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,027,620</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> STRAWBERRY FIELDS REIT, INC. and SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE 6. Leases (Cont.) The following table provides summary information regarding the number of operational beds associated with a property leased by the Company and subleased to third-party operators: Schedule of Property Leases to Third Parties <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_49D_20260331_zMYBuOMY2dmj" style="font-weight: bold; text-align: center">March 31,</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_494_20251231_zCwFYXsdQnZj" style="font-weight: bold; text-align: center">December 31,</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_401_ecustom--NumberOfFacilitiesLeasedAndSubleasedToThirdparties_iI_pid_uInteger_zOgh3G3qRX37" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left">Number of facilities leased and subleased to third parties</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 14%; text-align: right">1</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 14%; text-align: right">1</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40A_ecustom--NumberOfOperationalBeds_iI_pid_uInteger_zJGPAH2hjnmc" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Number of operational beds</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">68</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">68</td><td style="text-align: left"> </td></tr> </table> Right of use assets and operating lease liabilities are disclosed as separate line items in the condensed consolidated balance sheets and are valued based on the present value of the future minimum lease payments at the lease commencement. As the Company’s leases do not provide an implicit rate, the Company used its incremental borrowing rate based on the information available at the adoption date in determining the present value of future payments. Lease expense is recognized on a straight-line basis over the lease term. The Company’s operating lease obligation is for one skilled nursing facility in Indiana. The Indiana lease has an initial term that expires on March 1, 2028, and has two five-year renewal options. The lease is a triple net lease, which requires the Company to pay real and personal property taxes, insurance expenses and all capital improvements. The Company subleases the building as part of the Indiana master lease. Based on the sublease with the Company’s tenant, the tenant is required to pay real and personal property taxes, insurance expenses and all capital improvements. The components of lease expense and other lease information are as follows (dollars in thousands): Schedule of Components of Lease Expense <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%"> <tr style="display: none; vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49E_20260101__20260331_zWhXSscRsBl8" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_494_20250101__20250331_zwNPDReyRsil" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; text-align: center">Three Month Period ended March 31,</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_404_eus-gaap--OperatingLeaseCost_pn3n3_zOG4x6W5qSR6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left">Operating lease cost</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">99</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">99</td><td style="width: 1%; text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_499_20260331_z8yxei7Aajkk" style="border-bottom: Black 1pt solid; text-align: center">March 31, 2026</td><td style="padding-bottom: 1pt"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_491_20251231_zR0rcl9CFu18" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_408_eus-gaap--OperatingLeaseRightOfUseAsset_iI_pn3n3_zKJxEFhF3Lz5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left">Operating lease right of use assets</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">760</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">851</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--OperatingLeaseLiability_iI_pn3n3_zTkWCsSZ7Gpe" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Operating lease liabilities</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">760</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">851</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Weighted average remaining lease term-operating leases (in years)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2.0</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2.2</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Weighted average discount rate</td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_eus-gaap--OperatingLeaseWeightedAverageDiscountRatePercent_iI_pid_dp_c20260331_zdnp1qbcbRYc" style="text-align: right" title="Weighted average discount rate">4.1</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--OperatingLeaseWeightedAverageDiscountRatePercent_iI_pid_dp_c20251231_zvBD993bnLEg" style="text-align: right" title="Weighted average discount rate">4.1</td><td style="text-align: left">%</td></tr> </table> <p id="xdx_893_ecustom--ScheduleOfFutureMinimumRentalPaymentsForOperatingLeasesOnNonCancellableLeasesTableTextBlock_zeYlVEcCylKj" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; padding: 0pt; text-align: justify">Future minimum operating lease payments under non-cancellable leases as of March 31, 2026, reconciled to the Company’s operating lease liability presented on the condensed consolidated balance sheets are: Schedule of Future Minimum Lease Payments on Non-Cancellable Leases <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="font-size: 12pt; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49B_20260331_zfYJLkHYGjdi" style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">(Amounts in $000’s)</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_405_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsRemainderOfFiscalYear_iI_pn3n3_maLOLLPzG98_zsHqCEzVhNh5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; width: 82%">2026 (nine months)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 14%; text-align: right">297</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths_iI_pn3n3_maLOLLPzG98_zDNh0oKdN5Cd" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">2027</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">397</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearTwo_iI_pn3n3_maLOLLPzG98_z5W4I7flFld3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">2028</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">99</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDue_iTI_pn3n3_mtLOLLPzG98_zzlLgUalrzM6" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Total</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">793</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--LesseeOperatingLeaseLiabilityUndiscountedExcessAmount_iNI_pn3n3_di_zCQHpnI7F5Fc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Less Interest</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(33</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_40E_eus-gaap--OperatingLeaseLiabilityCurrent_iTI_pn3n3_zFo00fz6XgQ2" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Total operating lease liability</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">760</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> Other Properties leased by the Company The Company, through one of its subsidiaries, leases its office spaces from a related party. Rental expenses under the leases for the three-month periods ended March 31, 2026 and 2025, were $56,000 and $55,000, respectively. STRAWBERRY FIELDS REIT, INC. and SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

133 133 The following table provides additional information regarding the properties owned/leased by the Company for the periods indicated: Schedule of Properties Owned/Leased Information <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_493_20260331_zRwjo1xGjrEh" style="font-weight: bold; text-align: center">March 31,</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_490_20251231_zmYCdnHLSAVf" style="font-weight: bold; text-align: center">December 31,</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_401_ecustom--CumulativeNumberOfProperties_iI_pid_uInteger_z9m4DiknGxzc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left">Cumulative number of properties</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 14%; text-align: right">133</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 14%; text-align: right">133</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_401_ecustom--CumulativeNumberOfOperationalBeds_iI_pid_uInteger_zHT8e0XQheE6" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Cumulative number of operational beds</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">15,602</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">15,602</td><td style="text-align: left"> </td></tr> </table> 133 133 15602 15602 <p id="xdx_892_ecustom--ScheduleOfAdditionalInformationOnPropertiesFacilitiesLeasedTableTextBlock_zDSkgeI8yhF5" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; padding: 0pt; text-align: justify">The following table provides additional information regarding the properties/facilities leased by the Company as of March 31, 2026: Schedule of Additional Information on Properties Facilities Leased <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%"> <tr style="display: none; vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">State</td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_488_ecustom--NumberOfOperationalUnits_iI_uInteger_zIO3Ywrueuv6" style="border-bottom: Black 1pt solid; text-align: center">Number of Operational Beds/Units</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_485_ecustom--NumberOfFacilitiesOwnedByCompany_iI_uInteger_zJQEfPpZX7f8" style="border-bottom: Black 1pt solid; text-align: center">Owned by Company</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_483_ecustom--NumberOfFacilitiesLeasedByTheCompany_iI_uInteger_z8rEJQT5hBol" style="border-bottom: Black 1pt solid; text-align: center">Leased by Company</td><td style="padding-bottom: 1pt"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_481_ecustom--TotalNumberOfFacilities_iI_uInteger_zTFZRgFHaqLj" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Total</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">State</td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Number of Operational Beds/Units</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Owned by Company</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Leased by Company</td><td style="padding-bottom: 1pt"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Total</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_417_20260331__srt--StatementGeographicalAxis__stpr--IL__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--PropertyMember_zm747B5nMSld" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 36%">Illinois</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right">4,226</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right">20</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right">20</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_419_20260331__srt--StatementGeographicalAxis__stpr--IN__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--PropertyMember_zJXBaZImARZj" style="vertical-align: bottom; background-color: White"> <td>Indiana</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,404</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">35</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">36</td><td style="text-align: left"> </td></tr> <tr id="xdx_417_20260331__srt--StatementGeographicalAxis__stpr--OH__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--PropertyMember_zzCSbgId4S0i" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Ohio</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">238</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4</td><td style="text-align: left"> </td></tr> <tr id="xdx_411_20260331__srt--StatementGeographicalAxis__stpr--TN__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--PropertyMember_zHiUzvvdO38h" style="vertical-align: bottom; background-color: White"> <td>Tennessee</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,412</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">15</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">15</td><td style="text-align: left"> </td></tr> <tr id="xdx_413_20260331__srt--StatementGeographicalAxis__stpr--KY__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--PropertyMember_z6i6Pk5YY453" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Kentucky</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,163</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">10</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">10</td><td style="text-align: left"> </td></tr> <tr id="xdx_41F_20260331__srt--StatementGeographicalAxis__stpr--AR__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--PropertyMember_z8pO77eQI3cc" style="vertical-align: bottom; background-color: White"> <td>Arkansas</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,568</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">13</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">13</td><td style="text-align: left"> </td></tr> <tr id="xdx_419_20260331__srt--StatementGeographicalAxis__stpr--OK__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--PropertyMember_zIhbt2HngQVh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Oklahoma</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">477</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5</td><td style="text-align: left"> </td></tr> <tr id="xdx_41B_20260331__srt--StatementGeographicalAxis__stpr--TX__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--PropertyMember_zuvwmUlKOdn3" style="vertical-align: bottom; background-color: White"> <td>Texas</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">839</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6</td><td style="text-align: left"> </td></tr> <tr id="xdx_419_20260331__srt--StatementGeographicalAxis__stpr--MO__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--PropertyMember_zguDNltey2tk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Missouri</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,921</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">18</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">18</td><td style="text-align: left"> </td></tr> <tr id="xdx_411_20260331__srt--StatementGeographicalAxis__stpr--KS__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--PropertyMember_zPhlRrLFssnd" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt">Kansas</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">354</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">6</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">6</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_418_20260331__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--PropertyMember_ziAQp7JatdEf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Total properties</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">15,602</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">132</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">1</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">133</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Facility Type</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_412_20260331__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--FacilityMember__srt--MortgageLoansOnRealEstateDescriptionTypeOfPropertyAxis__custom--SkilledNursingFacilitiesMember_zCRpkfe25srk" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Skilled Nursing Facilities</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">15,195</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">130</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">131</td><td style="text-align: left"> </td></tr> <tr id="xdx_41A_20260331__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--FacilityMember__srt--MortgageLoansOnRealEstateDescriptionTypeOfPropertyAxis__custom--LongTermAcuteCareHospitalsMember_zthg1WakzvIc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Long-Term Acute Care Hospitals</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">63</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2</td><td style="text-align: left"> </td></tr> <tr id="xdx_41D_20260331__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--FacilityMember__srt--MortgageLoansOnRealEstateDescriptionTypeOfPropertyAxis__custom--AssistedLivingFacilityMember_z7a6LfuO4Ly6" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Assisted Living Facility</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">344</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">10</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">10</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr id="xdx_410_20260331__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--FacilityMember_z1P0ZcgNbjAa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Total facilities</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">15,602</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">142</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">1</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">143</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> 4226000 20000 20000 3404000 35000 1000 36000 238000 4000 4000 1412000 15000 15000 1163000 10000 10000 1568000 13000 13000 477000 5000 5000 839000 6000 6000 1921000 18000 18000 354000 6000 6000 15602000 132000 1000 133000 15195000 130000 1000 131000 63000 2000 2000 344000 10000 10000 15602000 142000 1000 143000

As of March 31, 2026, total future minimum rental revenues for the Company’s tenants are as follows : Schedule of Future Minimum Rental Revenues <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Year</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49D_20260331_zaxlEPqyGQtf" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Amount</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">(Amounts in $000s)</td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td></tr> <tr id="xdx_40C_eus-gaap--LessorOperatingLeasePaymentsToBeReceivedRemainderOfFiscalYear_iI_pn3n3_maLOLPTzDmc_zikOx6pEP2u8" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; width: 82%">2026 (nine months)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 14%; text-align: right">101,097</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--LessorOperatingLeasePaymentsToBeReceivedNextTwelveMonths_iI_pn3n3_maLOLPTzDmc_zzPbfF7wQN97" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">2027</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">137,720</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--LessorOperatingLeasePaymentsToBeReceivedTwoYears_iI_pn3n3_maLOLPTzDmc_z9PqPJMHjTN7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">2028</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">135,913</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--LessorOperatingLeasePaymentsToBeReceivedThreeYears_iI_pn3n3_maLOLPTzDmc_z4ynQuJXM9h" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">2029</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">130,132</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--LessorOperatingLeasePaymentsToBeReceivedFourYears_iI_pn3n3_maLOLPTzDmc_zO0mFTfAZP67" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">2030</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">131,164</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--LessorOperatingLeasePaymentsToBeReceivedThereafter_iI_pn3n3_maLOLPTzDmc_zwrrnQ24LZA" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Thereafter</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">391,594</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--LessorOperatingLeasePaymentsToBeReceived_iTI_pn3n3_mtLOLPTzDmc_zpPPtZGRPC6d" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Total</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,027,620</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

101097000

137720000

135913000

130132000

131164000

391594000

1027620000

The following table provides summary information regarding the number of operational beds associated with a property leased by the Company and subleased to third-party operators: Schedule of Property Leases to Third Parties <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_49D_20260331_zMYBuOMY2dmj" style="font-weight: bold; text-align: center">March 31,</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_494_20251231_zCwFYXsdQnZj" style="font-weight: bold; text-align: center">December 31,</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_401_ecustom--NumberOfFacilitiesLeasedAndSubleasedToThirdparties_iI_pid_uInteger_zOgh3G3qRX37" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left">Number of facilities leased and subleased to third parties</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 14%; text-align: right">1</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 14%; text-align: right">1</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40A_ecustom--NumberOfOperationalBeds_iI_pid_uInteger_zJGPAH2hjnmc" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Number of operational beds</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">68</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">68</td><td style="text-align: left"> </td></tr> </table> 1 1 68 68

The Indiana lease has an initial term that expires on March 1, 2028, and has two five-year renewal options.

The components of lease expense and other lease information are as follows (dollars in thousands): Schedule of Components of Lease Expense <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%"> <tr style="display: none; vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49E_20260101__20260331_zWhXSscRsBl8" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_494_20250101__20250331_zwNPDReyRsil" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; text-align: center">Three Month Period ended March 31,</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_404_eus-gaap--OperatingLeaseCost_pn3n3_zOG4x6W5qSR6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left">Operating lease cost</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">99</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">99</td><td style="width: 1%; text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_499_20260331_z8yxei7Aajkk" style="border-bottom: Black 1pt solid; text-align: center">March 31, 2026</td><td style="padding-bottom: 1pt"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_491_20251231_zR0rcl9CFu18" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_408_eus-gaap--OperatingLeaseRightOfUseAsset_iI_pn3n3_zKJxEFhF3Lz5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left">Operating lease right of use assets</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">760</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">851</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--OperatingLeaseLiability_iI_pn3n3_zTkWCsSZ7Gpe" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Operating lease liabilities</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">760</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">851</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Weighted average remaining lease term-operating leases (in years)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2.0</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2.2</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Weighted average discount rate</td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_eus-gaap--OperatingLeaseWeightedAverageDiscountRatePercent_iI_pid_dp_c20260331_zdnp1qbcbRYc" style="text-align: right" title="Weighted average discount rate">4.1</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--OperatingLeaseWeightedAverageDiscountRatePercent_iI_pid_dp_c20251231_zvBD993bnLEg" style="text-align: right" title="Weighted average discount rate">4.1</td><td style="text-align: left">%</td></tr> </table>

99000

760000

851000

760000

851000

P2Y

P2Y2M12D

0.041

<p id="xdx_893_ecustom--ScheduleOfFutureMinimumRentalPaymentsForOperatingLeasesOnNonCancellableLeasesTableTextBlock_zeYlVEcCylKj" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; padding: 0pt; text-align: justify">Future minimum operating lease payments under non-cancellable leases as of March 31, 2026, reconciled to the Company’s operating lease liability presented on the condensed consolidated balance sheets are: Schedule of Future Minimum Lease Payments on Non-Cancellable Leases <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="font-size: 12pt; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49B_20260331_zfYJLkHYGjdi" style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">(Amounts in $000’s)</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_405_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsRemainderOfFiscalYear_iI_pn3n3_maLOLLPzG98_zsHqCEzVhNh5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; width: 82%">2026 (nine months)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 14%; text-align: right">297</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths_iI_pn3n3_maLOLLPzG98_zDNh0oKdN5Cd" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">2027</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">397</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearTwo_iI_pn3n3_maLOLLPzG98_z5W4I7flFld3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">2028</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">99</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDue_iTI_pn3n3_mtLOLLPzG98_zzlLgUalrzM6" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Total</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">793</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--LesseeOperatingLeaseLiabilityUndiscountedExcessAmount_iNI_pn3n3_di_zCQHpnI7F5Fc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Less Interest</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(33</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_40E_eus-gaap--OperatingLeaseLiabilityCurrent_iTI_pn3n3_zFo00fz6XgQ2" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Total operating lease liability</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">760</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

297000

397000

99000

793000

33000

760000

56000

55000

NOTE 7. Bonds, Note Payable and Other Debt Bonds, Note Payable and Other Debt consist of the following: Schedule of Note Payable and Other Debt <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"> </td> <td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Weighted Interest Rate at March 31,</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"> </td> <td colspan="2" id="xdx_49F_20260331_zWrNDC09sY13" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">March 31,</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"> </td> <td colspan="2" id="xdx_49B_20251231_zALjRcl2ayv4" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">December 31,</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">2026</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">2026</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">2025</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td colspan="6" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"> (Amounts in $’000s) </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_406_ecustom--NotesPayableGross_iI_pn3n3_hus-gaap--DebtInstrumentAxis__custom--HUDGuaranteedBankLoansMember_zZdd1drpsWRi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 52%; text-align: left">HUD guaranteed loans</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right">3.26</td><td style="width: 1%; text-align: left">%</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">252,028</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">254,085</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40D_ecustom--NotesPayableGross_iI_pn3n3_hus-gaap--DebtInstrumentAxis__custom--BankLoansMember_zDagbkSyVpli" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Bank loans</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6.98</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">161,571</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">163,177</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_ecustom--NotesPayableGross_iI_pn3n3_hus-gaap--DebtInstrumentAxis__custom--SeriesABCAndDBondsMember_zJz7PRNsKtj6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Series A, B, C and D Bonds</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">7.04</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">337,405</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">334,766</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_ecustom--NotesPayableGross_iI_pn3n3_hus-gaap--DebtInstrumentAxis__custom--NotesPayableMember_zKYOu7enq9Ef" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Note Payable</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">10.00</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">40,428</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">42,624</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_ecustom--NotesPayableGross_iI_pn3n3_zIkVgYBaiTo4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Gross Bonds, Note Payable, and other Debt</td><td style="font-size: 12pt"> </td> <td style="font-size: 12pt; text-align: left"> </td><td style="font-size: 12pt; text-align: center"> </td><td style="font-size: 12pt; text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">791,432</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">794,652</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--DeferredFinanceCostsNet_iNI_pn3n3_di_z1gLvIpGUOG5" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Debt issuance costs</td><td style="font-size: 12pt"> </td> <td style="font-size: 12pt; text-align: left"> </td><td style="font-size: 12pt; text-align: center"> </td><td style="font-size: 12pt; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(3,460</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(4,154</td><td style="text-align: left">)</td></tr> <tr id="xdx_406_eus-gaap--NotesPayable_iI_pn3n3_zkj3dUSkIigb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Net Bonds, Note Payable, and other Debt</td><td style="font-size: 12pt"> </td> <td style="font-size: 12pt; text-align: left"> </td><td style="font-size: 12pt; text-align: center"> </td><td style="font-size: 12pt; text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">787,972</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">790,498</td><td style="text-align: left"> </td></tr> </table> Principal payments on the Bonds, Note Payable and Other Debt payable through maturity are as follows (amounts in $000s): Schedule of Notes Payable and Other Debt Payables Maturity <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; text-align: justify">Year Ending December 31,</td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49F_20260331_zfngWON8VnQ4" style="border-bottom: Black 1pt solid; text-align: center">Amount</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td></tr> <tr id="xdx_409_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalRemainderOfFiscalYear_iI_pn3n3_maLTDzTch_zJBUT6lBOAPa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 82%; text-align: justify">2026 (nine months)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 14%; text-align: right">254,849</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInNextTwelveMonths_iI_pn3n3_maLTDzTch_z3iPEr52Zhk2" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">2027</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">83,322</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearTwo_iI_pn3n3_maLTDzTch_zJCvuXR6pLd2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">2028</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">63,447</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearThree_iI_pn3n3_maLTDzTch_zWslzWzOG1pe" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">2029</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">170,734</td><td style="text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearFour_iI_pn3n3_maLTDzTch_zORzdSZGOdb1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">2030</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">9,483</td><td style="text-align: left"> </td></tr> <tr id="xdx_402_ecustom--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearAfterFour_iI_pn3n3_maLTDzTch_zQJ48X3bs4G2" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1pt">Thereafter</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">209,597</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--LongTermDebt_iTI_pn3n3_mtLTDzTch_zIXl3P7RUsDl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt">Total</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">791,432</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> Debt Covenant Compliance As of March 31, 2026 and December 31, 2025, the Company was party to approximately 45 outstanding credit related instruments, respectively. These instruments included note payable, credit facilities, mortgage notes, bonds and other credit obligations. Some of the instruments include financial covenants. Covenant provisions include, but are not limited to, debt service coverage ratios, and minimum levels of EBITDA (defined as earnings before interest, tax, and depreciation and amortization) or EBITDAR (defined as earnings before interest, tax, depreciation and amortization and rental expense). Some covenants are based on annual financial metric measurements, and some are based on quarterly financial metric measurements. The Company routinely tracks and monitors its compliance with its covenant provisions. As of March 31, 2026, the Company was in compliance with all financial and administrative covenants. Senior Debt—Mortgage Loans Guaranteed by HUD As of March 31, 2026, and December 31, 2025, the Company had HUD guaranteed mortgage loans from financial institutions of $252 million and $254 million, respectively. These loans were secured by first mortgage liens on the applicable properties, assignments of rent and second liens on the operator’s assets. The Company pays HUD annual mortgage insurance premiums of 0.65% of the loan balances in addition to the interest rate. As a result, the overall interest rate paid by the Company with respect to the HUD guaranteed loans as of March 31, 2026 and December 31, 2025 was <span id="xdx_901_ecustom--InterestRateIncludingMortgageInsurancePremium_iI_pid_dp_uPure_c20260331__us-gaap--DebtInstrumentAxis__custom--MortgageLoansMember_z1cUwXJ7twme" title="Interest rate including mortgage insurance premium"><span id="xdx_908_ecustom--InterestRateIncludingMortgageInsurancePremium_iI_pid_dp_uPure_c20251231__us-gaap--DebtInstrumentAxis__custom--MortgageLoansMember_zw7kt0xqTsY9" title="Interest rate including mortgage insurance premium">3.91%, respectively (including the mortgage insurance premium). Senior Debt – Commercial Bank Mortgage Loan Facility On March 21, 2022, the Company closed a mortgage loan facility with a commercial bank pursuant to which the Company borrowed approximately $105 million. The facility provides for monthly payments of principal and interest based on a 20-year amortization with a balloon payment due in March 2027. The rate is based on the one-month Secured Overnight Financing Rate (“SOFR”) plus a margin of 3.5% and a floor of 4% (as of March 31, 2026, the rate was 7.18%). On June 30, 2025, the company paid down $30.0 million dollars of the outstanding loan. As of March 31, 2026 and December 31, 2025, the total outstanding balance was $60.2 million and $61.2 million, respectively. This loan is collateralized by 21 properties owned by the Company. The loan proceeds were used to repay the Series B Bonds and prepay certain bank loans not secured by HUD guaranteed mortgages. On August 25, 2023, the Company closed a mortgage loan facility with a commercial bank pursuant to which the Company borrowed approximately $66 million. The facility provides for monthly payments of interest only for the first 12 months and principal and interest thereafter based on a 20-year amortization with a balloon payment due in August 2028. The rate is based on the one-month SOFR plus a margin of 3.5% and a floor of 4% (as of March 31, 2026, the rate was <span id="xdx_909_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_dp_uPure_c20260331__us-gaap--DebtInstrumentAxis__custom--SeniorDebtOneMember_zXfCwg36uGM1" title="Additional interest rate, percentage">7.18%). On December 17, 2024, the company paid down $24 million dollars of the outstanding loan. As of March 31, 2026, and December 31, 2025, total outstanding balance was $40.0 million and $40.3 million, respectively. This loan is collateralized by 19 properties owned by the Company. On September 25, 2024, the Company acquired a property, located in Tennessee. As part of the acquisition of the property the Company assumed a $2.8 million loan that previously existed on the property. The loan bears a fixed 6.25% annual interest rate. The loan term matures on April 23, 2026. As of March 31, 2026, and December 31, 2025, the outstanding balance of the loan was $2.7 million, respectively. On December 19, 2024, the Company closed a mortgage loan facility with a commercial bank pursuant to which the Company borrowed approximately $59 million. The facility provides for monthly payments of interest and payment of principal and interest that began in January 2026 based on a 20-year amortization with a balloon payment due in December 2029. The rate is based on the one-month SOFR plus a margin of 3.0% and a floor of 4% (as of March 31, 2026, the rate was 6.68%). As of March 31, 2026, and December 31, 2025, total outstanding principal amount was $58.6 and $59.0 million, respectively. This loan is collateralized by 8 properties owned by the Company. The loan proceeds were used to acquire the Missouri facilities. STRAWBERRY FIELDS REIT, INC. and SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE 7. Bonds, Note Payable and Other Debt (Cont.) Senior Debt – Commercial Bank Mortgage Loan Facility (Cont.) The two credit facilities that closed in March 21, 2022 and August 25, 2023 are subject to financial covenants which consist of (i) a covenant that the ratio of the Company’s indebtedness to its EBITDA cannot exceed 8.0 to 1, (ii) a covenant that the ratio of the Company’s net operating income to its debt service before dividend distribution is at least 1.20 to 1.00 for each fiscal quarter as measured pursuant to the terms of the loan agreement (iii) a covenant that the ratio of the Company’s net operating income to its debt service after dividend distribution is at least 1.05 to 1.00 for each fiscal quarter as measured pursuant to the terms of the loan agreement, and (iii) a covenant that the Company’s GAAP equity is at least $20 million. As of March 31, 2026, the Company was in compliance with the loan covenants. The credit facility closed on December 19, 2024 is subject to financial covenants which consist of (i) a covenant that the ratio of the Company’s indebtedness to its EBITDA cannot exceed 8.0 to 1, (ii) a covenant that the ratio of the Company’s net operating income to its debt service before dividend distribution is at least 1.25 to 1.00 for each fiscal quarter as measured pursuant to the terms of the loan agreement (iii) a covenant that the ratio of the Company’s net operating income to its debt service after dividend distribution is at least 1.05 to 1.00 for each fiscal quarter as measured pursuant to the terms of the loan agreement, and (iii) a covenant that the Company’s GAAP equity is at least $30 million. As of March 31, 2026, the Company was in compliance with the loan covenants. Series A Bonds In August 2024, Strawberry Fields, Inc completed, directly, an initial offering on the Tel Aviv Stock Exchange (“TASE”) of Series A Bonds with a par value of NIS <span id="xdx_90D_eus-gaap--ProceedsFromIssuanceOfDebt_pn5n6_uNIS_c20240801__20240831__us-gaap--DebtInstrumentAxis__custom--SeriesABondsMember_zjtlk3j63f05" title="Proceeds from issuance initial public offering">145.6 million ($37.1 million). The series A Bonds were issued at par. Offering and issuance costs of approximately $1.0 million were incurred at closing. In December 2024, the Inc company issued an additional NIS <span id="xdx_904_eus-gaap--ProceedsFromIssuanceOfDebt_pn5n6_uNIS_c20241201__20241231__us-gaap--DebtInstrumentAxis__custom--SeriesABondsMember_z5nVImyomiO6" title="Proceeds from issuance initial public offering">145.6 million ($38.1 million) in Series A Bonds. Exchange of Series D Bonds for Series A Bonds In September 2024 the Company made an exchange tender offer of outstanding Series D Bonds for Series A Bonds. The interest rate on Series D Bonds was 9.1% per annum. The exchange offer rate was 1.069964 Series A Bonds per Series D Bonds. As a result of this offer, NIS 47.3 million Series D Bonds ($12.7 million) were exchanged for NIS 50.6 million Series A Bonds ($13.6 million). As of March 31, 2026 and December 31, 2025 the outstanding balance of the Series A Bonds was $95.5 million and $94.7 million, respectively. Increases in the outstanding balance is due to a change in the exchange rate. STRAWBERRY FIELDS REIT, INC. and SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE 7. Bonds, Note Payable and Other Debt (Cont.) Interest The Series A Bonds have an interest rate of 6.97% per annum. In July 2024, Standard & Poor’s provided an initial rating for the Series A Bonds of ilA+. Interest on the Series A Bonds is payable semi-annually in arrears on March 31 and September 30 of each year. The interest rate may increase if certain financial ratios are not achieved, as discussed below. Payment Terms The principal amount of the Series A Bonds is payable in three annual installments due on September 30 of each of the years 2024 through 2026. The first two principal payments are equal to 6% of the original principal amount of the Series A Bonds, and the last principal payment is equal to the outstanding principal amount of the Series A Bonds. Financial Covenants Until the date of full repayment of the Series A Bonds, the Company must comply with certain financial covenants described below. The application of the covenants is based on the financial statements of the Company as prepared under the GAAP accounting method. The financial covenants are as follows: ● On the last day of each calendar quarter, the consolidated equity of the Company (excluding minority rights), as set forth in the Company’s financial statements, will not be less than USD <span id="xdx_907_eus-gaap--StockholdersEquity_iI_pn6n6_c20260331__srt--RangeAxis__srt--MinimumMember__us-gaap--DebtInstrumentAxis__custom--SeriesABondsMember_zd834tNPdZRb" title="Equity excluding minority rights">20 million ● On the last day of each calendar quarter, the ratio between the Financial Debt and EBITDA shall not exceed 10 ● The DSCR shall not be less than 1.05 Dividend Restrictions As long as the Company does not breach any of the Financial Covenants, no distribution restriction shall hinder the Company. If the Company is in non-compliance one or more of the Financial Covenants, the Company can make a distribution in an amount that does not exceed the amount required to meet the U.S. legal requirements applicable to REITs. Increase in Interest Rate In the event that: ● The Company’s bond rating ilA+ or equivalent is lowered ● The financial debt to EBITDA ratio exceeds 8 ● EBITDA to total debt service payments fall below 1.10 ● Consolidated Equity is less than USD $<span id="xdx_904_eus-gaap--StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest_iI_pn6n6_c20260331__us-gaap--DebtInstrumentAxis__custom--SeriesABondsMember__srt--RangeAxis__srt--MinimumMember_z4DY6gj9Mrka" title="Equity">30 million An additional rate of <span id="xdx_90F_eus-gaap--DebtInstrumentInterestRateIncreaseDecrease_pid_dp_uPure_c20260101__20260331__us-gaap--DebtInstrumentAxis__custom--SeriesABondsMember_zIwaciuAgDy3" title="Increase in interest rate">0.25% will take place per deviation from the financial covenants, with a maximum additions rate not to exceed<span id="xdx_90F_ecustom--MaximumLimitOfInterestRate_pid_dp_uPure_c20260101__20260331__srt--RangeAxis__srt--MaximumMember__us-gaap--DebtInstrumentAxis__custom--SeriesABondsMember_zVeq1jI4zrK5" title="Limit on additions to interest rate"> 1.5% above the interest rate determined on the tender. Security The Company has committed not to pledge its assets under general liens without obtaining the consent in advance of the Bond holders. Nevertheless, The Company is entitled to register specific liens on its properties and also to provide guarantees; and its subsidiaries are entitled to register liens, including general and specific, on their assets. Additional Bonds Inc Company can issue additional Series A Bonds at any time not to exceed a maximum outstanding of NIS <span id="xdx_903_ecustom--BondsAuthorzied_iI_pn6n6_uNIS_c20260331__us-gaap--DebtInstrumentAxis__custom--SeriesABondsMember__srt--RangeAxis__srt--MaximumMember_zMavDXec1X28" title="Bonds authorzied to issue">550 million (or $174 million). NOTE 7. Bonds, Note Payable and Other Debt (Cont.) Redemption Provisions <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in; text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in; text-align: justify">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">the market value of the balance of the Series A Bonds in circulation which will be determined based on the average closing price of the Series A Bonds for thirty (30) trading days before the date on which the board of directors resolves to undertake the early redemption;</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">the par value of the Series A Bonds available for early redemption in circulation (i.e., the principal balance of the Series A Bonds plus accrued interest until the date of the actual early redemption); or</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">the balance of the payments under the Series A Bonds (consisting of future payments of principal and interest), when discounted to their present value based on the annual yield of the Israeli government bonds plus an “additional rate” of <span id="xdx_90D_eus-gaap--DebtInstrumentInterestRateDuringPeriod_pid_dp_uPure_c20260101__20260331__dei--LegalEntityAxis__custom--BVICompanyMember__us-gaap--DebtInstrumentAxis__custom--SeriesABondsMember_zjTFDb56bq1c" title="Prepayment additional rate">3.0% per annum.</td></tr> </table> Change of Control The holders of a majority of the Series A Bonds may accelerate the outstanding balance of the Bonds if the control of the Company is transferred, directly or indirectly, unless the transfer of control is approved by the holders of a majority of the Series A Bonds. For the purpose of this provision, a transfer of control means a change of control of the Company such that the Company has a controlling stockholder that is not any of the “controlling stockholders” and/or is in the hands of any of their immediate family members (including through trusts that the controlling stockholders and/or any of their immediate family members are the beneficiaries under and/or are their managers). In this regard, “control” is defined in the Israeli Companies Law Series B Bonds In June 2025, Strawberry Fields REIT, Inc completed, directly, an initial offering on the TASE of Series B Bonds with a par value of NIS 312 million ($89.5 million). The series B Bonds were issued at par. Offering and issuance costs of approximately $2.5 million were incurred at closing. On December 16, 2025, Strawberry Fields REIT issued additional Series B Bonds with a par value of NIS 30.0 million (gross). The bonds were issued at 99.21 and raised a net amount of NIS 29.4 million ($9.2 million), offering and issuance costs of approximately $.02 million incurred at closing. As of March 31, 2026, and December 31, 2025, the outstanding balance of the Series B Bonds was $108.1 million and $107.2 million, respectively. Increases in the outstanding balance is due to a change in the exchange rate. Interest The Series B Bonds have an interest rate of 6.70% per annum. In June 2025, Standard & Poor’s provided an initial rating for the Series B Bonds of ilA+. Interest on the Series B Bonds is payable semi-annually in arrears on June 30 and December 31 of each year. The interest rate may increase if certain financial ratios are not achieved, as discussed below. Payment Terms The principal amount of the Series B Bonds is payable in four annual installments due on June 30 of each of the years 2026 through 2029. The first three principal payments are equal to 4% of the original principal amount of the Series B Bonds, and the last principal payment is equal to the outstanding principal amount of the Series B Bonds. Financial Covenants Until the date of full repayment of the Series B Bonds, the Company must comply with certain financial covenants described below. The application of the covenants is based on the consolidated financial statements of the Company as prepared under the GAAP accounting method. The financial covenants are as follows: ● On the last day of each calendar quarter, the consolidated equity of the Company (excluding minority rights), as set forth in the Company’s consolidated financial statements, will not be less than USD <span id="xdx_901_eus-gaap--StockholdersEquity_iI_pn6n6_c20260331__srt--RangeAxis__srt--MinimumMember__us-gaap--DebtInstrumentAxis__custom--SeriesBBondsMember_zFe3S1qARogf" title="Equity excluding minority rights">20 million. NOTE 7. Bonds, Note Payable and Other Debt (Cont.) Financial Covenants (Cont.) ● On the last day of each calendar quarter, the ratio between the Financial Debt and EBITDA shall not exceed 10 ● The DSCR shall not be less than 1.05 Dividend Restrictions As long as the Company does not breach any of the Financial Covenants, no distribution restriction shall hinder the Company. If the Company is in non-compliance with one or more of the Financial Covenants, the Company can make a distribution in an amount that does not exceed the amount required to meet the U.S. legal requirements applicable to REITs. Increase in Interest Rate In the event that: ● The Company’s bond rating ilA+ or equivalent is lowered ● The financial debt to EBITDA ratio exceeds 8 ● EBITDA to total debt service payments fall below 1.10 ● Consolidated Equity is less than USD $<span id="xdx_90C_eus-gaap--StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest_iI_pn6n6_c20260331__us-gaap--DebtInstrumentAxis__custom--SeriesBBondsMember__srt--RangeAxis__srt--MinimumMember_zFYGMvCj163" title="Equity">30 million An additional rate of <span id="xdx_901_eus-gaap--DebtInstrumentInterestRateIncreaseDecrease_pid_dp_uPure_c20260101__20260331__us-gaap--DebtInstrumentAxis__custom--SeriesBBondsMember_zJXyfifZZpHd" title="Increase in interest rate">0.25% will take place per deviation from the financial covenants, with a maximum additions rate not to exceed <span id="xdx_90C_ecustom--MaximumLimitOfInterestRate_pid_dp_uPure_c20260101__20260331__us-gaap--DebtInstrumentAxis__custom--SeriesBBondsMember__srt--RangeAxis__srt--MaximumMember_z0JfZfbyA2sc" title="Limit on additions to interest rate">1.5% above the interest rate determined on the tender. Security The Company has committed not to pledge its assets under general liens without obtaining the consent in advance of the Bond holders. Nevertheless, The Company is entitled to register specific liens on its properties and also to provide guarantees; and its subsidiaries are entitled to register liens, including general and specific, on their assets. Additional Bonds Inc Company can issue additional Series B Bonds at any time and the series does not have a formal ceiling. However, the new issuances are subject to regulatory oversight. Redemption Provisions The Company may, at its discretion, call the Series B Bonds for early repayment. In the event of the redemption of all of the Series B Bonds, the Company would be required to pay the highest of the following amounts: ● the market value of the balance of the Series B Bonds in circulation which will be determined based on the average closing price of the Series B Bonds for thirty (30) trading days before the date on which the board of directors resolves to undertake the early redemption; or ● the par value of the Series B Bonds available for early redemption in circulation (i.e., the principal balance of the Series B Bonds plus accrued interest until the date of the actual early redemption); or ● the balance of the payments under the Series B Bonds (consisting of future payments of principal and interest), when discounted to their present value based on the annual yield of the Israeli government bonds plus an “additional rate” of 3.0% per annum. Change of Control The holders of the majority of the Series B Bonds may accelerate repayment of the outstanding balance of the Bonds if the control of the Company is transferred, directly or indirectly, unless the transfer of control is approved by the holders of a majority of the Series B Bonds. For the purpose of this provision, a transfer of control means a change of control of the Company such that the Company has a controlling stockholder that is not any of the “controlling stockholders” and/or is in the hands of any of their immediate family members (including through trusts that the controlling trusts that the controlling stockholders and/or any of their immediate family members are the beneficiaries under and/or are their managers). In this regard, “control” is defined in the Israeli Companies Law. Series C Bonds In July 2021, the BVI Company completed an initial offering on the Tel Aviv Stock Exchange (“TASE”) of Series C Bonds with a par value of NIS 208.0 million ($64.7 million). These Series C Bonds were issued at par. Offering and issuance costs of approximately $1.7 million were incurred at closing. In February 2023, the BVI Company issued an additional NIS 40.0 million ($11.3 million) in Series C Bonds, offering and issuance costs of approximately $0.9 million were incurred at closing. In October 2024, the BVI company issued an additional NIS 62.0 million ($16.6 million) in Series C Bonds, offering and issuance costs of approximately $0.8 million were incurred at closing. At March 31, 2026 and December 31, 2025 the total Series C Bond outstanding was $78.3 million and $77.7 million, respectively. Increases in the outstanding balance is due to a change in the exchange rate. STRAWBERRY FIELDS REIT, INC. and SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE 7. Bonds, Note Payable and Other Debt (Cont.) Series C Bonds (Cont.) Interest The Series C Bonds initially bore interest at a rate of 5.7% per annum. In July 2021, Standard & Poor’s provided an initial rating for the Series C Bonds of ilA+. Interest on the Series C Bonds is payable semi-annually in arrears on July 31 and January 31 of each year. The interest rate may increase if certain financial ratios are not achieved, as discussed below. Payment Terms The principal amount of the Series C Bonds is payable in five annual installments due on July 31 of each of the years 2022 through 2026. The first four principal payments are equal to 6% of the original principal amount of the Series C Bonds, and the last principal payment is equal to the outstanding principal amount of the Series C Bonds. Financial Covenants Until the date of full repayment of the Series C Bonds, the BVI Company must comply with certain financial covenants described below. The application of the covenants is based on the financial statements of the BVI Company as prepared under the IFRS accounting method. The financial covenants are as follows: ● The stockholders’ equity of the BVI Company may not be less than $<span id="xdx_90F_eus-gaap--StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest_iI_pn6n6_c20260331__srt--RangeAxis__srt--MinimumMember__dei--LegalEntityAxis__custom--BVICompanyMember__us-gaap--DebtInstrumentAxis__custom--SeriesCBondsMember_zD5J2Ok8bcii" title="Equity">230 million. ● The ratio of the condensed consolidated stockholders’ equity of the BVI Company to its total condensed consolidated balance sheet may not be less than <span id="xdx_905_ecustom--StockholdersEquityPercentage_pid_dp_uPure_c20260101__20260331__us-gaap--DebtInstrumentAxis__custom--SeriesCBondsMember__dei--LegalEntityAxis__custom--BVICompanyMember__srt--RangeAxis__srt--MinimumMember_zdWTqoYaK0g7" title="Stockholder's equity percentage">25%. ● The ratio of the adjusted net financial debt to adjusted EBITDA of the BVI Company (for the past four quarters) may not exceed 12. ● The ratio of the outstanding amount of the Series C Bonds to the fair market value of the collateral may not exceed <span id="xdx_906_ecustom--FairMarketValueOutstandingAmountRatio_pid_dp_uPure_c20260101__20260331__srt--RangeAxis__srt--MinimumMember__dei--LegalEntityAxis__custom--BVICompanyMember__us-gaap--DebtInstrumentAxis__custom--SeriesCBondsMember_zQ0Q5JJH1wYb" title="Fair market value of collateral">75%. STRAWBERRY FIELDS REIT, INC. and SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE 7. Bonds, Note Payable and Other Debt (Cont.) Series C Bonds (Cont.) Dividend Restrictions The indenture for the Series C Bonds limits the amount of dividends that may be paid by the BVI Company to the Operating Partnership. The BVI Company may not make any distribution unless all of the following conditions are fulfilled (with all amounts calculated under IFRS): ● The distribution amount may not exceed <span id="xdx_900_ecustom--DividendDistributionAmountPercentage_pid_dp_uPure_c20260101__20260331__srt--RangeAxis__srt--MaximumMember__dei--LegalEntityAxis__custom--BVICompanyMember__us-gaap--DebtInstrumentAxis__custom--SeriesCBondsMember_zz2ZePuoo0E2" title="Dividend distribution percentage ratio">80% of the net profit after tax that is recognized in the most recent condensed consolidated financial statements of the BVI Company, less profits or losses arising from a change in accounting methods, net of revaluation profits/losses (that have not yet been realized) arising from a change in the fair value of the assets with respect to the fair value in the prior reporting period. ● The ratio of the consolidated stockholders’ equity of the BVI Company to its total consolidated balance sheet may not be less than <span id="xdx_901_ecustom--StockholdersEquityPercentage_pid_dp_uPure_c20260101__20260331__srt--RangeAxis__srt--MaximumMember__dei--LegalEntityAxis__custom--BVICompanyMember__us-gaap--DebtInstrumentAxis__custom--SeriesCBondsMember_ziBLhibcu5u2" title="Stockholder's equity percentage">30%. ● The distributable profits for which no distribution was performed in a specific year will be added to the following quarters. ● The BVI Company’s equity at the end of the last quarter, before the distribution of dividends, less the dividends distributed, may not be less than $<span id="xdx_90C_eus-gaap--StockholdersEquity_iI_pn6n6_c20260331__us-gaap--DebtInstrumentAxis__custom--SeriesDBondsMember__srt--RangeAxis__srt--MinimumMember__dei--LegalEntityAxis__custom--BVICompanyMember_zbeovN9Kzbn6" title="Stock holder's equity">250 million. As of March 31, 2026, the BVI Company met these financial conditions, and the BVI Company was not in violation of any of its material undertakings to the holders of the Series C Bonds. Increase in Interest Rate In the event that: (i) the stockholders’ equity of the BVI Company (excluding minority interests) is less than $<span id="xdx_901_eus-gaap--StockholdersEquity_iI_pn6n6_c20260331__us-gaap--DebtInstrumentAxis__custom--SeriesCBondsMember__dei--LegalEntityAxis__custom--BVICompanyMember__srt--RangeAxis__srt--MinimumMember_z5WcIxAuQVo1" title="Equity excluding minority rights">250 million; (ii) the ratio of the adjusted net financial debt to adjusted EBITDA (for the latest four quarters) exceeds 11; (iii) the ratio of the consolidated equity of the BVI Company to total consolidated assets of the BVI Company is below <span id="xdx_900_ecustom--StockholdersEquityPercentage_pid_dp_uPure_c20260101__20260331__us-gaap--DebtInstrumentAxis__custom--SeriesCBondsMember__srt--RangeAxis__srt--MinimumMember_zsv1iExepyD2" title="Stockholders' equity percentage">27%; or (iv) the ratio of outstanding amount of the Series C Bonds to the fair market value of the collateral for the Series C Bonds exceeds <span id="xdx_90B_ecustom--FairMarketValueOutstandingAmountRatio_pid_dp_uPure_c20260101__20260331__us-gaap--DebtInstrumentAxis__custom--SeriesCBondsMember__dei--LegalEntityAxis__custom--BVICompanyMember_z3LFtTlz0M89" title="Fair market value of collateral">75%, then, in each case, the interest on the Series C Bonds will increase by an additional <span id="xdx_906_ecustom--AdditionalInterestIncreaseOnBonds_pid_dp_uPure_c20260101__20260331__dei--LegalEntityAxis__custom--BVICompanyMember__us-gaap--DebtInstrumentAxis__custom--SeriesCBondsMember_zfmuAzVO2DNi" title="Interest increasing in additional percentage">0.5% annually, but only once with respect to each failure to meet these requirements. Compliance with these financial covenants is measured quarterly. Additionally, if a decline in the rating of the Series C Bonds should take place, then for each single ratings decrease, the interest will be increased by <span id="xdx_908_eus-gaap--DebtInstrumentInterestRateIncreaseDecrease_pid_dp_uPure_c20260101__20260331__us-gaap--DebtInstrumentAxis__custom--SeriesCBondsMember__dei--LegalEntityAxis__custom--BVICompanyMember_zBuPy8rzimx1" title="Interest rate penalty">0.25% per year, up to a maximum increment of <span id="xdx_90C_eus-gaap--DebtInstrumentInterestRateIncreaseDecrease_pid_dp_uPure_c20260101__20260331__us-gaap--DebtInstrumentAxis__custom--SeriesCBondsMember__dei--LegalEntityAxis__custom--BVICompanyMember__srt--RangeAxis__srt--MaximumMember_zV8VuX6alVpd" title="Increase in interest rate">1.25% annually. In any case, the total increase in the interest rate as a result of the above adjustments will not exceed <span id="xdx_903_eus-gaap--DebtInstrumentInterestRateEffectivePercentage_iI_pid_dp_uPure_c20260331__dei--LegalEntityAxis__custom--BVICompanyMember__us-gaap--DebtInstrumentAxis__custom--SeriesCBondsMember__srt--RangeAxis__srt--MaximumMember_zsii1qHgzo1g" title="Limit on additions to interest rate">1.5% per year. The increases in the interest rate will also be reversed if the BVI Company regains compliance. STRAWBERRY FIELDS REIT, INC. and SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE 7. Bonds, Note Payable and Other Debt (Cont.) Series C Bonds (Cont.) Security The Series C Bonds are secured by first mortgage liens on nine properties. In addition, the Series C Bonds are also secured by interest and expenses reserves. The BVI Company has agreed not to pledge its assets pursuant to a general lien without obtaining the prior consent of the holders of the Series C Bonds, provided that the BVI Company is entitled to register specific liens on its properties and also to provide guarantees and its subsidiaries are entitled to register general and specific liens on their assets. <span id="xdx_909_eus-gaap--LineOfCreditFacilityCollateral_c20260101__20260331__us-gaap--DebtInstrumentAxis__custom--SeriesCBondsMember__dei--LegalEntityAxis__custom--BVICompanyMember_zrJ9jRGflSH7" title="Collateral description">Under the terms of the indenture for the Series C Bonds, the BVI Company can take out properties from the collateral (in case of HUD refinancing) or to add properties and increase the Series C Bonds as long as the ratio of outstanding amount of the Series C Bonds to fair market value of the collateral is not more than 65%. In addition, starting from July 1, 2023, if the fair market value of the collateral is below 55%, the BVI Company can request to release collateral so the fair market value will increase to 55%. Additional Bonds The BVI Company can issue additional Series C Bonds at any time not to exceed a maximum outstanding of NIS <span id="xdx_905_ecustom--BondsAuthorzied_iI_pn6n6_uNIS_c20260331__us-gaap--DebtInstrumentAxis__custom--SeriesCBondsMember__dei--LegalEntityAxis__custom--BVICompanyMember__srt--RangeAxis__srt--MaximumMember_zOAB0Bge8jXd">630 million (or $<span id="xdx_90B_ecustom--BondsAuthorzied_iI_pn6n6_c20260331__us-gaap--DebtInstrumentAxis__custom--SeriesCBondsMember__dei--LegalEntityAxis__custom--BVICompanyMember__srt--RangeAxis__srt--MaximumMember_zibhZ3Ye7ARd">199 million). Redemption Provisions The BVI Company may, at its discretion, call the Series C Bonds for early repayment. In the event of the redemption of all of the Series C Bonds, the BVI Company would be required to pay the highest of the following amounts: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">the market value of the balance of the Series C Bonds in circulation which will be determined based on the average closing price of the Series C Bonds for thirty (30) trading days before the date on which the board of directors resolves to undertake the early redemption;</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">the par value of the Series C Bonds available for early redemption in circulation (i.e., the principal balance of the Series C Bonds plus accrued interest until the date of the actual early redemption); or</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">the balance of the payments under the Series C Bonds (consisting of future payments of principal and interest), when discounted to their present value based on the annual yield of the Israeli government bonds plus an “additional rate.” The additional rate will be <span id="xdx_90E_ecustom--AdditionalInterestRateForEarlyRepayment_pid_dp_uPure_c20260101__20260331__dei--LegalEntityAxis__custom--BVICompanyMember__us-gaap--DebtInstrumentAxis__custom--SeriesCBondsMember_zcD6LNFCZJi3" title="Additional rate for early repayment">1.0% per annum for early repayment of <span id="xdx_903_ecustom--DebtInstrumentInterestRateForEarlyRepayment_pid_dp_uPure_c20260101__20260331__dei--LegalEntityAxis__custom--BVICompanyMember__us-gaap--DebtInstrumentAxis__custom--SeriesCBondsMember_zMa4YCzbLck7" title="Early repayment">3.0%.</td></tr> </table> Change of Control The holders of a majority of the Series C Bonds may accelerate the outstanding balance of the Bonds if the control of the BVI Company is transferred, directly or indirectly, unless the transfer of control is approved by the holders of a majority of the Series C Bonds. For purposes of the Series C Bonds, the “controlling stockholders” of the BVI Company are deemed to be Moishe Gubin and Michael Blisko. STRAWBERRY FIELDS REIT, INC. and SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE 7. Bonds, Note Payable and Other Debt (Cont.) Change of Control (Cont.) For the purpose of this provision, a transfer of control means a change of control of the BVI Company such that the BVI Company has a controlling stockholder that is not any of the “controlling stockholders” and/or is in the hands of any of their immediate family members (including through trusts that the controlling stockholders and/or any of their immediate family members are the beneficiaries under and/or are their managers). In this regard, “control” is defined in the Israeli Companies Law. Series D Bonds In June 2023, the BVI Company completed an initial offering on the TASE of Series D Bonds with a par value of NIS 82.9 million ($22.9 million). These Series D Bonds were issued at par. Offering and issuance costs of approximately $0.6 million were incurred at closing. In July 2023, the BVI Company issued an additional NIS 70 million ($19.2 million) in Series D Bonds. On February 8, 2024, the BVI Company issued additional Series D Bonds with a par value of NIS 100.0 million (gross) and raised a net amount of NIS 98.2 million ($25.7 million), offering and issuance costs of approximately $.05 million incurred at closing. Exchange of Series D Bonds for Series A Bonds In September 2024, the Company made an exchange tender offer of outstanding Series D Bonds for series A Bonds. The interest rate on Series A Bonds is 6.97% per annum. The exchange offer rate was 1.069964 Series A Bonds per Series D Bonds. As a result of this offer, NIS 47.3 million Series D Bonds ($12.7 million) were exchanged for NIS 50.6 million Series A Bonds ($13.6 million). As of March 31, 2026 and December 31, 2025, the outstanding balance of the Series D Bonds were $55.5 million and $55.1 million, respectively. Increases in the outstanding balance is due to a change in the exchange rate. Interest The Series D Bonds initially bore interest at a rate of 9.1% per annum. In June 2023, Standard & Poor’s provided an initial rating for the Series D Bonds of ilA. Interest on the Series D Bonds is payable semi-annually in arrears on March 31 and September 30 of each year. The interest rate may increase if certain financial ratios are not achieved, as discussed below. Payment Terms The principal amount of the Series D Bonds is payable in three annual installments due on September 30 of each of the years 2024 through 2026. The first two principal payments are equal to 6% of the original principal amount of the Series D Bonds, and the last principal payments is equal to the outstanding principal amount of the Series D Bonds. Financial Covenants Until the date of full repayment of the Series D Bonds, the BVI Company must comply with certain financial covenants described below. The application of the covenants is based on the financial statements of the BVI Company as prepared under the IFRS accounting method. The financial covenants are as follows: ● The stockholders’ equity of the BVI Company may not be less than $<span id="xdx_90F_eus-gaap--StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest_iI_pn6n6_c20260331__srt--RangeAxis__srt--MinimumMember__dei--LegalEntityAxis__custom--BVICompanyMember__us-gaap--DebtInstrumentAxis__custom--SeriesDBondsMember_zMei4XhnHUic" title="Equity">230 million. ● The ratio of the condensed consolidated stockholders’ equity of the BVI Company to its total condensed consolidated balance sheet may not be less than <span id="xdx_90B_ecustom--StockholdersEquityPercentage_pid_dp_uPure_c20260101__20260331__srt--RangeAxis__srt--MinimumMember__dei--LegalEntityAxis__custom--BVICompanyMember__us-gaap--DebtInstrumentAxis__custom--SeriesDBondsMember_zZhLuOr476l2" title="Stockholder's equity percentage">25%. ● The ratio of the adjusted net financial debt to adjusted EBITDA of the BVI Company (for the past four quarters) may not exceed 12. STRAWBERRY FIELDS REIT, INC. and SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE 7. Bonds, Note Payable and Other Debt (Cont.) Series D Bonds (Cont.) Dividend Restrictions The indenture for the Series D Bonds limits the amount of dividends that may be paid by the BVI Company to its stockholders. The BVI Company may not make any distribution unless all of the following conditions are fulfilled (with all amounts calculated under IFRS): ● The distribution amount may not exceed <span id="xdx_90D_ecustom--DividendDistributionAmountPercentage_pid_dp_uPure_c20260101__20260331__srt--RangeAxis__srt--MaximumMember__dei--LegalEntityAxis__custom--BVICompanyMember__us-gaap--DebtInstrumentAxis__custom--SeriesDBondsMember_zdXJoBpaF5a" title="Dividend distribution percentage ratio">80% of the net profit after tax that is recognized in the most recent condensed consolidated financial statements of the BVI Company, less profits or losses arising from a change in accounting methods, net of revaluation profits/losses (that have not yet been realized) arising from a change in the fair value of the assets with respect to the fair value in the prior reporting period. ● The ratio of the consolidated stockholders’ equity of the BVI Company to its total consolidated balance sheet may not be less than <span id="xdx_901_ecustom--StockholdersEquityPercentage_pid_dp_uPure_c20260101__20260331__srt--RangeAxis__srt--MinimumMember__us-gaap--DebtInstrumentAxis__custom--SeriesDBondsMember_zFr79UaLvQS8" title="Stockholder's equity percentage">30%. ● The distributable profits for which no distribution was performed in a specific year will be added to the following quarters. ● The BVI Company’s equity at the end of the last quarter, before the distribution of dividends, less the dividends distributed, may not be less than $<span id="xdx_909_eus-gaap--StockholdersEquity_iI_pn6n6_c20260331__us-gaap--DebtInstrumentAxis__custom--SeriesDBondsMember__srt--RangeAxis__srt--MinimumMember__dei--LegalEntityAxis__custom--BVICompanyMember_zKoEsnR78npi" title="Stock holder's equity">250 million. The BVI Company meets the financial conditions described above, and the BVI Company is not in violation of all and/or any of its material undertakings to the holders of the Series D Bonds as of March 31, 2026. Increase in Interest Rate In the event that: (i) the stockholders’ equity of the BVI Company (excluding minority interests) is less than $<span id="xdx_906_eus-gaap--StockholdersEquity_iI_pn6n6_c20260331__us-gaap--DebtInstrumentAxis__custom--SeriesDBondsMember__dei--LegalEntityAxis__custom--BVICompanyMember__srt--RangeAxis__srt--MinimumMember_zkdAW01F4nL7" title="Equity excluding minority rights">250 million; (ii) the ratio of the adjusted net financial debt to adjusted EBITDA (for the latest four quarters) exceeds 11; (iii) the ratio of the consolidated equity of the BVI Company to total consolidated assets of the BVI Company is below <span id="xdx_903_ecustom--StockholdersEquityPercentage_pid_dp_uPure_c20260101__20260331__us-gaap--DebtInstrumentAxis__custom--SeriesDBondsMember__srt--RangeAxis__srt--MaximumMember_zRZuwc4LQ4rc" title="Stockholders' equity percentage">27%; or then, in each case, the interest on the Series D Bonds will increase by an additional <span id="xdx_90E_ecustom--AdditionalInterestIncreaseOnBonds_pid_dp_uPure_c20260101__20260331__dei--LegalEntityAxis__custom--BVICompanyMember__us-gaap--DebtInstrumentAxis__custom--SeriesDBondsMember_zcYDgBjyvZod" title="Interest increasing in additional percentage">0.5% annually, but only once with respect to each failure to meet these requirements. Compliance with these financial covenants is measured quarterly. Additionally, if a decline in the rating of the Series D Bonds should take place, then for each single ratings decrease, the interest will be increased by <span id="xdx_903_eus-gaap--DebtInstrumentInterestRateIncreaseDecrease_pid_dp_uPure_c20260101__20260331__us-gaap--DebtInstrumentAxis__custom--SeriesDBondsMember__dei--LegalEntityAxis__custom--BVICompanyMember_zkTqqkryOKH" title="Increase in interest rate">0.25% per year, up to a maximum increment of <span id="xdx_900_eus-gaap--DebtInstrumentInterestRateIncreaseDecrease_pid_dp_uPure_c20250101__20250331__us-gaap--DebtInstrumentAxis__custom--SeriesDBondsMember__dei--LegalEntityAxis__custom--BVICompanyMember__srt--RangeAxis__srt--MaximumMember_z1BOmX5jjuec" title="Increase in interest rate">1.25% annually. In any case, the total increase in the interest rate as a result of the above adjustments will not exceed <span id="xdx_90D_eus-gaap--DebtInstrumentInterestRateIncreaseDecrease_pid_dp_uPure_c20260101__20260331__dei--LegalEntityAxis__custom--BVICompanyMember__us-gaap--DebtInstrumentAxis__custom--SeriesDBondsMember__srt--RangeAxis__srt--MaximumMember_zTJesPvH9s26" title="Limit on additions to interest rate">1.5% per year. The increases in the interest rate will also be reversed if the BVI Company regains compliance. STRAWBERRY FIELDS REIT, INC. and SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE 7. Bonds, Note Payable and Other Debt (Cont.) Series D Bonds (Cont.) Security The BVI Company has committed not to pledge its assets under general liens without obtaining the consent in advance of the Bond holders. Nevertheless, the BVI Company is entitled to register specific liens on its properties and also to provide guarantees; and its subsidiaries are entitled to register liens, including general and specific, on their assets. Additional Bonds The BVI Company can issue additional Series D Bonds at any time not to exceed a maximum outstanding of NIS <span id="xdx_901_ecustom--BondsAuthorzied_iI_pn6n6_uNIS_c20260331__dei--LegalEntityAxis__custom--BVICompanyMember__us-gaap--DebtInstrumentAxis__custom--SeriesDBondsMember_z61nart6lmdf" title="Bonds authorzied to issue">450 million (or $<span id="xdx_90C_ecustom--BondsAuthorzied_iI_pn6n6_c20260331__dei--LegalEntityAxis__custom--BVICompanyMember__us-gaap--DebtInstrumentAxis__custom--SeriesDBondsMember_zKnxog10iD54" title="Bonds authorzied to issue">142 million). Redemption Provisions The BVI Company may, at its discretion, call the Series D Bonds for early repayment. In the event of the redemption of all of the Series D Bonds, the BVI Company would be required to pay the highest of the following amounts: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in; text-align: justify">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">the market value of the balance of the Series D Bonds in circulation which will be determined based on the average closing price of the Series D Bonds for thirty (30) trading days before the date on which the board of directors resolves to undertake the early redemption;</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">the par value of the Series D Bonds available for early redemption in circulation (i.e., the principal balance of the Series D Bonds plus accrued interest until the date of the actual early redemption); or</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">the balance of the payments under the Series D Bonds (consisting of future payments of principal and interest), when discounted to their present value based on the annual yield of the Israeli government bonds plus an “additional rate.” The additional rate will be <span id="xdx_909_ecustom--AdditionalInterestRateForEarlyRepayment_pid_dp_uPure_c20260101__20260331__dei--LegalEntityAxis__custom--BVICompanyMember__us-gaap--DebtInstrumentAxis__custom--SeriesDBondsMember_zAWKSbIqGnXk" title="Additional rate for early repayment">1.0% per annum for early repayment of <span id="xdx_904_ecustom--DebtInstrumentInterestRateForEarlyRepayment_pid_dp_uPure_c20260101__20260331__dei--LegalEntityAxis__custom--BVICompanyMember__us-gaap--DebtInstrumentAxis__custom--SeriesDBondsMember_zIy8m110bbO4" title="Early repayment">3.0%.</td></tr> </table> Change of Control The holders of a majority of the Series D Bonds may accelerate the outstanding balance of the Bonds if the control of the BVI Company is transferred, directly or indirectly, unless the transfer of control is approved by the holders of a majority of the Series D Bonds. For purposes of the Series D Bonds, the “controlling stockholders” of the BVI Company are deemed to be Moishe Gubin and Michael Blisko. STRAWBERRY FIELDS REIT, INC. and SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE 7. Bonds, Note Payable and Other Debt (Cont.) Change of Control (Cont.) For the purpose of this provision, a transfer of control means a change of control of the BVI Company such that the BVI Company has a controlling stockholder that is not any of the “controlling stockholders” and/or is in the hands of any of their immediate family members (including through trusts that the controlling stockholders and/or any of their immediate family members are the beneficiaries under and/or are their managers). In this regard, “control” is defined in the Israeli Companies Law. Note Payable On January 1, 2025, the Company created a new Kentucky Master Lease with a new third-party operator. This master lease was created from 10 properties that were formally in the Landmark Master Lease. In order to release the properties from the Landmark Master Lease, the Company entered into a $50.9 million dollar note payable with the parent of the Landmark operator. The note is for equal monthly payments of $1.1 million dollars for 5 years and bears interest of 10.0%. As of March 31, 2026, the outstanding balance of the note payable was $40.4 million.

Bonds, Note Payable and Other Debt consist of the following: Schedule of Note Payable and Other Debt <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"> </td> <td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Weighted Interest Rate at March 31,</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"> </td> <td colspan="2" id="xdx_49F_20260331_zWrNDC09sY13" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">March 31,</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"> </td> <td colspan="2" id="xdx_49B_20251231_zALjRcl2ayv4" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">December 31,</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">2026</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">2026</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">2025</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td colspan="6" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"> (Amounts in $’000s) </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_406_ecustom--NotesPayableGross_iI_pn3n3_hus-gaap--DebtInstrumentAxis__custom--HUDGuaranteedBankLoansMember_zZdd1drpsWRi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 52%; text-align: left">HUD guaranteed loans</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right">3.26</td><td style="width: 1%; text-align: left">%</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">252,028</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">254,085</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40D_ecustom--NotesPayableGross_iI_pn3n3_hus-gaap--DebtInstrumentAxis__custom--BankLoansMember_zDagbkSyVpli" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Bank loans</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6.98</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">161,571</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">163,177</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_ecustom--NotesPayableGross_iI_pn3n3_hus-gaap--DebtInstrumentAxis__custom--SeriesABCAndDBondsMember_zJz7PRNsKtj6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Series A, B, C and D Bonds</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">7.04</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">337,405</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">334,766</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_ecustom--NotesPayableGross_iI_pn3n3_hus-gaap--DebtInstrumentAxis__custom--NotesPayableMember_zKYOu7enq9Ef" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Note Payable</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">10.00</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">40,428</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">42,624</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_ecustom--NotesPayableGross_iI_pn3n3_zIkVgYBaiTo4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Gross Bonds, Note Payable, and other Debt</td><td style="font-size: 12pt"> </td> <td style="font-size: 12pt; text-align: left"> </td><td style="font-size: 12pt; text-align: center"> </td><td style="font-size: 12pt; text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">791,432</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">794,652</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--DeferredFinanceCostsNet_iNI_pn3n3_di_z1gLvIpGUOG5" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Debt issuance costs</td><td style="font-size: 12pt"> </td> <td style="font-size: 12pt; text-align: left"> </td><td style="font-size: 12pt; text-align: center"> </td><td style="font-size: 12pt; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(3,460</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(4,154</td><td style="text-align: left">)</td></tr> <tr id="xdx_406_eus-gaap--NotesPayable_iI_pn3n3_zkj3dUSkIigb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Net Bonds, Note Payable, and other Debt</td><td style="font-size: 12pt"> </td> <td style="font-size: 12pt; text-align: left"> </td><td style="font-size: 12pt; text-align: center"> </td><td style="font-size: 12pt; text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">787,972</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">790,498</td><td style="text-align: left"> </td></tr> </table>

0.0326

252028000 254085000

0.0698

161571000 163177000

0.0704

337405000 334766000

0.1000

40428000 42624000 791432000 794652000

3460000

4154000

787972000

790498000

Principal payments on the Bonds, Note Payable and Other Debt payable through maturity are as follows (amounts in $000s): Schedule of Notes Payable and Other Debt Payables Maturity <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; text-align: justify">Year Ending December 31,</td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49F_20260331_zfngWON8VnQ4" style="border-bottom: Black 1pt solid; text-align: center">Amount</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td></tr> <tr id="xdx_409_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalRemainderOfFiscalYear_iI_pn3n3_maLTDzTch_zJBUT6lBOAPa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 82%; text-align: justify">2026 (nine months)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 14%; text-align: right">254,849</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInNextTwelveMonths_iI_pn3n3_maLTDzTch_z3iPEr52Zhk2" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">2027</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">83,322</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearTwo_iI_pn3n3_maLTDzTch_zJCvuXR6pLd2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">2028</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">63,447</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearThree_iI_pn3n3_maLTDzTch_zWslzWzOG1pe" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">2029</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">170,734</td><td style="text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearFour_iI_pn3n3_maLTDzTch_zORzdSZGOdb1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">2030</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">9,483</td><td style="text-align: left"> </td></tr> <tr id="xdx_402_ecustom--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearAfterFour_iI_pn3n3_maLTDzTch_zQJ48X3bs4G2" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1pt">Thereafter</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">209,597</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--LongTermDebt_iTI_pn3n3_mtLTDzTch_zIXl3P7RUsDl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt">Total</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">791,432</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

254849000

83322000

63447000

170734000

9483000

209597000

791432000

45 45

252000000

254000000

0.0065 0.0391 0.0391

105000000

The facility provides for monthly payments of principal and interest based on a 20-year amortization with a balloon payment due in March 2027.

0.035 0.04

0.0718

30000000.0

60200000

61200000

66000000

The facility provides for monthly payments of interest only for the first 12 months and principal and interest thereafter based on a 20-year amortization with a balloon payment due in August 2028.

0.035 0.04

0.0718

24000000

40000000.0

40300000

2800000

0.0625

April 23, 2026

2700000

59000000

The facility provides for monthly payments of interest and payment of principal and interest that began in January 2026 based on a 20-year amortization with a balloon payment due in December 2029.

0.030 0.04

0.0668

58600000

59000000.0

(i) a covenant that the ratio of the Company’s indebtedness to its EBITDA cannot exceed 8.0 to 1, (ii) a covenant that the ratio of the Company’s net operating income to its debt service before dividend distribution is at least 1.20 to 1.00 for each fiscal quarter as measured pursuant to the terms of the loan agreement (iii) a covenant that the ratio of the Company’s net operating income to its debt service after dividend distribution is at least 1.05 to 1.00 for each fiscal quarter as measured pursuant to the terms of the loan agreement, and (iii) a covenant that the Company’s GAAP equity is at least $20 million. As of March 31, 2026, the Company was in compliance with the loan covenants.

(i) a covenant that the ratio of the Company’s indebtedness to its EBITDA cannot exceed 8.0 to 1, (ii) a covenant that the ratio of the Company’s net operating income to its debt service before dividend distribution is at least 1.25 to 1.00 for each fiscal quarter as measured pursuant to the terms of the loan agreement (iii) a covenant that the ratio of the Company’s net operating income to its debt service after dividend distribution is at least 1.05 to 1.00 for each fiscal quarter as measured pursuant to the terms of the loan agreement, and (iii) a covenant that the Company’s GAAP equity is at least $30 million. As of March 31, 2026, the Company was in compliance with the loan covenants.

145600000

37100000

1000000.0

145600000

38100000

0.091

1.069964 47300000 12700000 50600000 13600000 95500000 94700000

0.0697

The principal amount of the Series A Bonds is payable in three annual installments due on September 30 of each of the years 2024 through 2026. The first two principal payments are equal to 6% of the original principal amount of the Series A Bonds, and the last principal payment is equal to the outstanding principal amount of the Series A Bonds.

20000000

30000000

0.0025

0.015 550000000 174000000

0.030

312000000

89500000

2500000

30000000.0

99210000

29400000

9200000

20000.00 108100000 107200000

0.0670

The principal amount of the Series B Bonds is payable in four annual installments due on June 30 of each of the years 2026 through 2029. The first three principal payments are equal to 4% of the original principal amount of the Series B Bonds, and the last principal payment is equal to the outstanding principal amount of the Series B Bonds.

20000000

30000000

0.0025

0.015

0.030

208000000.0

64700000

1700000

40000000.0

11300000

900000

62000000.0

16600000

800000 78300000 77700000

0.057

The principal amount of the Series C Bonds is payable in five annual installments due on July 31 of each of the years 2022 through 2026. The first four principal payments are equal to 6% of the original principal amount of the Series C Bonds, and the last principal payment is equal to the outstanding principal amount of the Series C Bonds.

230000000

0.25 0.75 0.80 0.30

250000000

0.27 0.75 0.005

0.0025

0.0125

0.015

Under the terms of the indenture for the Series C Bonds, the BVI Company can take out properties from the collateral (in case of HUD refinancing) or to add properties and increase the Series C Bonds as long as the ratio of outstanding amount of the Series C Bonds to fair market value of the collateral is not more than 65%. In addition, starting from July 1, 2023, if the fair market value of the collateral is below 55%, the BVI Company can request to release collateral so the fair market value will increase to 55%.

630000000 199000000 0.010 0.030

82900000

22900000

600000

70000000

19200000

100000000.0

98200000

25700000

50000.00

0.0697

1.069964 47300000 12700000 50600000 13600000 55500000 55100000

0.091

The principal amount of the Series D Bonds is payable in three annual installments due on September 30 of each of the years 2024 through 2026. The first two principal payments are equal to 6% of the original principal amount of the Series D Bonds, and the last principal payments is equal to the outstanding principal amount of the Series D Bonds.

230000000

0.25 0.80 0.30

250000000

0.27 0.005

0.0025

0.0125

0.015

450000000 142000000 0.010 0.030

50900000

1100000

P5Y

0.100

40400000

NOTE 8. Commitments and Contingencies Commitments The Company guarantees from time-to-time obligations of its wholly-owned subsidiaries. Contingencies The Company’s operating results and financial condition are dependent on the ability of its tenants to meet their lease obligations to us. We are not currently a party to any material legal proceedings, that are not covered by insurance and expected to be resolved within policy limits, other than the following: In March 2020, Joseph Schwartz, Rosie Schwartz and certain companies owned by them filed a complaint in the U.S. District Court for the Northern District of Illinois against Moishe Gubin, Michael Blisko, the Predecessor Company and 21 of its subsidiaries, as well as the operators of 17 of the facilities operated at our properties. The complaint was related to the Predecessor Company’s acquisition of 16 properties located in Arkansas and Kentucky that were completed between May 2018 and April 2019 and the attempt to purchase an additional five properties located in Massachusetts. The complaint was dismissed by the Court in 2020 on jurisdictional grounds. The plaintiffs did not file an appeal with respect to this action, and the time for an appeal has expired. In August 2020, Joseph Schwartz, Rosie Schwartz and several companies controlled by them filed a second complaint in the Circuit Court in Pulaski County, Arkansas. The second complaint had nearly identical claims as the federal case but was limited to matters related to the Predecessor Company’s acquisition of properties located in Arkansas. The sellers, which were affiliates of Skyline Health Care, had encountered financial difficulties and requested the Predecessor Company to acquire these properties. The defendants have filed an answer denying the plaintiffs’ claims and asserting counterclaims based on breach of contract. This case has been dismissed without prejudice. STRAWBERRY FIELDS REIT, INC. and SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE 8. Commitments and Contingencies (Cont.) Contingencies (Cont.) In April 2024, they filed yet another complaint in Arkansas, and this time dealing with the properties located in Arkansas, Kentucky and Massachusetts. There has been some motion practice where the Court dismissed some of the Plaintiff’s remedies and claims. In January 2021, Joseph Schwartz, Rosie Schwartz and certain companies owned by them filed a third complaint in Illinois state court in Cook County, Illinois, which has nearly identical claims to the initial federal case, but was limited to claims related to the Kentucky and Massachusetts properties. The complaint has not been properly served on any of the defendants, and, accordingly, the defendants did not respond to the complaint. Instead, the defendants filed a motion to quash service of process. On January 11, 2023, the Cook County Circuit Court entered an order granting such motion, quashing service of process on all defendants. In March 2023, the plaintiffs filed a new complaint and again attempted to serve it on the defendants. It is the defendants’ position that service was (once again, potentially) defective and sought a dismissal of the matter for want of prosecution by Joseph Schwartz, Rosie Schwartz and certain companies owned by them. The dismissal was granted, but has been appealed to the Illinois Appellate Court, with no substantive movement on the matter to date. In April of 2024, Joseph Schwartz, Rosie Schwartz and several companies controlled by them filed a fourth complaint in the Circuit Court in Pulaski County, Arkansas. This fourth complaint had nearly identical claims as the federal case and the Illinois state court matter. In November 2024, the court dismissed all rescission claims, finding plaintiffs had an adequate remedy at law in the form of monetary damages, ordered dissolution of a lis pendens plaintiffs had filed against certain properties, and identified additional pleading deficiencies in the complaint. The court granted plaintiffs leave to amend, and plaintiffs filed a second amended complaint. On March 10, 2026, the court dismissed the second amended complaint with prejudice as to all defendants, finding that plaintiffs failed to cure the previously identified deficiencies. The court also denied plaintiffs’ motion for a temporary and permanent restraining order, finding no irreparable harm, an adequate remedy at law, and no likelihood of success on the merits. The dismissal with prejudice bars plaintiffs from refiling these claims, subject to any appeal. The Plaintiffs have filed an appeal. In each of these complaints, the plaintiffs asserted claims for fraud, breach of contract and rescission arising out of the defendants’ alleged failure to perform certain post-closing obligations under the purchase contracts. We had potential direct exposure for these claims because the subsidiaries of the Predecessor Company that were named as defendants are now subsidiaries of the Operating Partnership. Additionally, the Operating Partnership was potentially liable for the claims made against Moishe Gubin, Michael Blisko and the Predecessor Company pursuant to the provisions of the contribution agreement, under which the Operating Partnership assumed all the liabilities of the Predecessor Company and agreed to indemnify the Predecessor Company and its affiliates for such liabilities. As described above, the federal action was dismissed for lack of subject matter jurisdiction, the first Arkansas action was dismissed without prejudice, the Illinois state court action has been dismissed, and the second Arkansas action (filed April 2024) was dismissed with prejudice on March 10, 2026. The Plaintiffs have appealed the Arkansas trial court decision. As noted above, the March 2020 and January 2021 complaints also related to the Predecessor Company’s planned acquisition of five properties located in Massachusetts. A subsidiary of the Predecessor Company purchased loans related to these properties in 2018 for a price of $<span id="xdx_90A_eus-gaap--BusinessAcquisitionCostOfAcquiredEntityTransactionCosts_iI_pn4n6_c20181231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--FivePropertiesMember_zRmm6byQsQGk" title="Acquisition cost">7.74 million with the expectation that the subsidiaries would acquire title to the properties and the loans would be retired. The subsidiary subsequently advanced $<span id="xdx_906_eus-gaap--PaymentsToAcquirePropertyPlantAndEquipment_pn5n6_c20180101__20181231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--FivePropertiesMember_zBujwnsc2p0a" title="Payments to acquire property plant and equipment">3.1 million under the loans to satisfy other liabilities related to the properties. The planned acquisition/settlement with the sellers/owners and/borrowers was not consummated because the underlying tenants of the properties surrendered their licenses to operate healthcare facilities on these properties. The Predecessor Company has instituted legal proceedings to collect the outstanding amount of these loans and to assert related claims against the sellers and their principals for the unpaid principal balances as well as protective advances and collection costs. In connection with enforcing their rights, in July 2022, the Company foreclosed, and (as lender) sold four of the five properties at auction for the total amount of $<span id="xdx_908_eus-gaap--ProceedsFromSaleOfPropertyPlantAndEquipment_pn5n6_c20220701__20220731__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--FivePropertiesMember_zV7eIrT5WIsl" title="Proceeds from sale of property, plant, and equipment">4.4 million. In December 2022, the Company took title on the fifth property with an estimated fair value of $<span id="xdx_903_ecustom--PropertyPlantAndEquipmentEstimatedFairValue_pn5n6_c20221201__20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--FivePropertiesMember_zjrYou8QCk78" title="Property estimated fair value">1.2 million.

7740000

3100000

4400000

1200000

NOTE 9. Equity Incentive Plan The Company has adopted the 2021 Equity Incentive Plan (the “Plan”). The Plan permits the grant of both options qualifying under Section 422 of the Internal Revenue Code (“incentive stock options”) and options not so qualifying, and the grant of stock appreciation rights, stock awards, incentive awards, performance units, and other equity-based awards. A total of <span id="xdx_908_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAuthorized_iI_pid_c20211231__us-gaap--PlanNameAxis__custom--TwoThousandTwentyOneEquityIncentivePlanMember_zWZVYXUltHCf" title="Number of shares authorized">250,000 shares have been authorized to be granted under the Plan. On May 30, 2024, shareholders approved an amendment to increase the number of shares authorized to be granted under the plan to <span id="xdx_90F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAuthorized_iI_pid_c20240530__us-gaap--PlanNameAxis__custom--TwoThousandTwentyOneEquityIncentivePlanMember_zWBjkqkCxAhi" title="Number of shares authorized">1,000,000 shares. As of March 31, 2026, <span id="xdx_90D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAvailableForGrant_iI_pid_c20260331__us-gaap--PlanNameAxis__custom--TwoThousandTwentyOneEquityIncentivePlanMember_z57oXAp25ldb" title="Shares available for grant">961,975 shares were available for grant. On January 31, 2025, <span id="xdx_908_eus-gaap--StockIssuedDuringPeriodSharesShareBasedCompensation_pid_c20250131__20250131__us-gaap--PlanNameAxis__custom--TwoThousandTwentyOneEquityIncentivePlanMember_zebEDKxVqfBk" title="Shares issued as employee bonus">6,450 shares were used from the incentive plan as an employee bonus. On January 16, 2026, <span id="xdx_90D_eus-gaap--StockIssuedDuringPeriodSharesShareBasedCompensation_pid_c20260116__20260116__us-gaap--PlanNameAxis__custom--TwoThousandTwentyOneEquityIncentivePlanMember_z0c2uKilkrwg" title="Shares issued as employee bonus">6,675 shares were used from the incentive plan as an employee bonus. STRAWBERRY FIELDS REIT, INC. and SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

250000

1000000

961975

6450

6675

NOTE 10. Stockholders’ Equity and Distributions The Company elected and qualified to be treated as a REIT commencing with the taxable year ended December 31, 2022. U.S. federal income tax law requires that a REIT distribute annually at least 90% of its net taxable income, excluding net capital gains, and that it pays tax at regular corporate rates to the extent that it annually distributes less than 100% of its net taxable income, including net capital gains. In addition, a REIT is required to pay a 4% nondeductible excise tax on the amount, if any, by which the distributions that it makes in a calendar year are less than the sum of 85% of its ordinary income, 95% of its capital gain net income and 100% of its undistributed income from prior years. On November 9, 2023, the Board of Directors authorized the repurchase of up to $5 million of the Company’s common stock. As of March 31, 2026, the Company had purchased 319,584 shares in aggregate of common stock at an average price per share of $9.93 and an aggregate repurchase price of $3.2 million. As of March 31, 2026, there were a total of 13,398,307 shares of common stock issued and outstanding. The outstanding shares were held by a total of approximately 5,600 stockholders of record, including certain affiliates of the Company who held <span id="xdx_906_eus-gaap--InvestmentOwnedBalanceShares_iI_c20260331__srt--TitleOfIndividualAxis__custom--FiveThousandSixHundredStockholdersMember__us-gaap--InvestmentIssuerAffiliationAxis__us-gaap--InvestmentAffiliatedIssuerMember_zyzwKxD4EoX6" title="Shares are held by affiliates of company, which subset of stockholders">1,086,883 of these shares. As of March 31, 2026, there were <span id="xdx_907_eus-gaap--LimitedPartnersCapitalAccountUnitsOutstanding_iI_pid_c20260331__us-gaap--TypeOfArrangementAxis__custom--OperatingPartnershipAgreementMember_zMYpK9mye1Tf" title="OP units outstanding">42,362,059 OP units outstanding. Under the terms of the partnership agreement for the Operating Partnership, such holders have the right to request the cash redemption of their OP units. If a holder requests redemption, the Company has the option of issuing shares of common stock to the requesting holder instead of cash. The OP unit holders are required to obtain Company approval prior to the sale or transfer of any or all of such holder’s OP units. The Company has reserved a total of <span id="xdx_90E_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_pid_c20260331__us-gaap--TypeOfArrangementAxis__custom--OperatingPartnershipAgreementMember__us-gaap--PlanNameAxis__custom--EquityIncentivePlanMember_z02QmwOYnDtk" title="Shares reserved for future issuance">42,362,059 shares of common stock that may be issued, at the Company’s option, upon redemption of the OP units outstanding as of March 31, 2026.

U.S. federal income tax law requires that a REIT distribute annually at least 90% of its net taxable income, excluding net capital gains, and that it pays tax at regular corporate rates to the extent that it annually distributes less than 100% of its net taxable income, including net capital gains. In addition, a REIT is required to pay a 4% nondeductible excise tax on the amount, if any, by which the distributions that it makes in a calendar year are less than the sum of 85% of its ordinary income, 95% of its capital gain net income and 100% of its undistributed income from prior years. 5000000

319584

9.93

3200000

13398307

1086883

42362059

NOTE 11. Related Party Transactions and Economic Dependence The following entities and individuals are considered to be Related Parties: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; width: 35%">Moishe Gubin</td> <td style="font: 10pt Times New Roman, Times, Serif; width: 65%; text-align: justify">CEO & Chairman of the Board and a stockholder of the Company </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif">Michael Blisko</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Director and a stockholder of the Company</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif">Operating entities</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">See list below</td></tr> </table> Lease Agreements with Related Parties As of March 31, 2026 and December 31, 2025, each of the Company’s facilities was leased and operated by separate tenants. Each tenant is an entity that leases the facility from one of the Company’s subsidiaries and operates the facility as a healthcare facility. The Company had 64 tenants out of 144 who were related parties as of March 31, 2026 and 66 tenants out of 144 who were related parties as of December 31, 2025. Most of the lease agreements are triple net leases. STRAWBERRY FIELDS REIT, INC. and SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE 11. Related Party Transactions and Economic Dependence (cont.) Lease Agreements with Related Parties (cont.) The related party interests were via Gubin Enterprises LP and Blisko Enterprises LP. Gubin Enterprises LP is controlled by Moishe Gubin, Chairman of the Board. Blisko Enterprises LP is controlled by Michael Blisko, who serves as Director on the Board of Directors. The related party facilities are concentrated in 3 states: Indiana, Tennessee and Illinois. As of March 31, 2026, in these states, the Company leased 41, 15, and 8 facilities, respectively to related parties. Balances with Related Parties Schedule of Balances with Related Parties <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_493_20260331_zBkYblfsbzH4" style="border-bottom: Black 1pt solid; text-align: center">March 31, 2026</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_492_20251231_zCj30kdS0e2k" style="border-bottom: Black 1pt solid; text-align: center">December 31, 2025</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">(amounts in $000s)</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_405_ecustom--StraightlineRentReceivable_iI_pn3n3_hus-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember_z7wTBrjzfqxa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Straight-line rent receivable</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">17,136</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">16,324</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--ReplacementReserveEscrow_iI_pn3n3_hus-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember_zjY2rKZMPYyc" style="vertical-align: bottom; background-color: White"> <td style="width: 60%; text-align: left; padding-bottom: 2.5pt">Tenant portion of replacement reserve</td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; width: 16%; text-align: right">9,474</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; width: 16%; text-align: right">8,759</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--NotesReceivableNet_iI_pn3n3_hus-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember_zGNL5ONdvZg5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Notes receivable</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">5,823</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">5,823</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> Payments from and to Related Parties Schedule of Payments From and to Related Parties <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%"> <tr style="display: none; vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_494_20260101__20260331_zZowxG69mKL7" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49F_20250101__20250331_z3pbAMfyhkzk" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Three Months ended March 31,</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">(amounts in $000s)</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_407_eus-gaap--ProceedsFromRentsReceived_pn3n3_zB81eSseHIg3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left; padding-bottom: 2.5pt">Rental income received from related parties</td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; width: 16%; text-align: right">17,549</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; width: 16%; text-align: right">17,445</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> Other Related Party Relationships On March 31, 2026 and December 31, 2025, the Company had approximately $<span id="xdx_900_eus-gaap--Deposits_iI_pn5n6_c20260331__dei--LegalEntityAxis__custom--OptimumBankMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MrGubinMember_zciXXMvt0ez" title="Deposits">0.3 million and $<span id="xdx_905_eus-gaap--Deposits_iI_pn5n6_c20251231__dei--LegalEntityAxis__custom--OptimumBankMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MrGubinMember_z0gDLRGrvUVc" title="Deposits">0.8 million, respectively, on deposit with OptimumBank. Mr. Gubin is the Chairman of the Board and CEO of OptimumBank, and Mr. Blisko is a director. On June 14, 2022, the Company purchased an $8 million note held by Infinity Healthcare Management, a company controlled by Mr. Blisko and Mr. Gubin. The note was issued by certain unaffiliated tenants. It bears interest at 7% per annum, payable annually. The principal amount of the note becomes payable 120 days after the date on which tenants are first able to exercise the purchase option for the properties contained in their lease. The purchase option becomes exercisable upon the Company’s ability to deliver fee simple title to the properties. If the tenants do not exercise the option within this period, then the outstanding balance of the note will thereafter be payable in thirty-six (36) equal monthly installments of principal and interest.

Company’s facilities was leased and operated by separate tenants. Each tenant is an entity that leases the facility from one of the Company’s subsidiaries and operates the facility as a healthcare facility. The Company had 64 tenants out of 144 who were related parties as of March 31, 2026 and 66 tenants out of 144 who were related parties as of December 31, 2025. Company’s facilities was leased and operated by separate tenants. Each tenant is an entity that leases the facility from one of the Company’s subsidiaries and operates the facility as a healthcare facility. The Company had 64 tenants out of 144 who were related parties as of March 31, 2026 and 66 tenants out of 144 who were related parties as of December 31, 2025. Balances with Related Parties Schedule of Balances with Related Parties <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_493_20260331_zBkYblfsbzH4" style="border-bottom: Black 1pt solid; text-align: center">March 31, 2026</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_492_20251231_zCj30kdS0e2k" style="border-bottom: Black 1pt solid; text-align: center">December 31, 2025</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">(amounts in $000s)</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_405_ecustom--StraightlineRentReceivable_iI_pn3n3_hus-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember_z7wTBrjzfqxa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Straight-line rent receivable</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">17,136</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">16,324</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--ReplacementReserveEscrow_iI_pn3n3_hus-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember_zjY2rKZMPYyc" style="vertical-align: bottom; background-color: White"> <td style="width: 60%; text-align: left; padding-bottom: 2.5pt">Tenant portion of replacement reserve</td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; width: 16%; text-align: right">9,474</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; width: 16%; text-align: right">8,759</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--NotesReceivableNet_iI_pn3n3_hus-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember_zGNL5ONdvZg5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Notes receivable</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">5,823</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">5,823</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> 17136000 16324000

9474000

8759000

5823000

Payments from and to Related Parties Schedule of Payments From and to Related Parties <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%"> <tr style="display: none; vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_494_20260101__20260331_zZowxG69mKL7" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49F_20250101__20250331_z3pbAMfyhkzk" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Three Months ended March 31,</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">(amounts in $000s)</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_407_eus-gaap--ProceedsFromRentsReceived_pn3n3_zB81eSseHIg3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left; padding-bottom: 2.5pt">Rental income received from related parties</td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; width: 16%; text-align: right">17,549</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; width: 16%; text-align: right">17,445</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

17549000

17445000

300000

800000

8000000

0.07

The principal amount of the note becomes payable 120 days after the date on which tenants are first able to exercise the purchase option for the properties contained in their lease. The purchase option becomes exercisable upon the Company’s ability to deliver fee simple title to the properties. If the tenants do not exercise the option within this period, then the outstanding balance of the note will thereafter be payable in thirty-six (36) equal monthly installments of principal and interest.

NOTE 12. Income Taxes The Company elected and qualified to be taxed as a REIT for federal income tax purposes commencing with the year ended December 31, 2022. As a REIT, the Company generally is not subject to federal income tax on its net taxable income that it distributes currently to its stockholders. Under the Code, REITs are subject to numerous organizational and operational requirements, including a requirement that they distribute each year at least 90% of their REIT taxable income, determined without regard to the deduction for dividends paid and excluding any net capital gains. If the Company fails to qualify for taxation as a REIT in any taxable year and does not qualify for certain statutory relief provisions, the Company’s income for that year will be taxed at regular corporate rates, and the Company would be disqualified from taxation as a REIT for the four taxable years following the year during which the Company ceased to qualify as a REIT. Even if the Company qualifies as a REIT for federal income tax purposes, it may still be subject to state and local taxes on its income and assets and to federal income and excise taxes on its undistributed income. The Company follows recent accounting guidance relating to accounting for uncertainty in income taxes, which sets out a consistent framework to determine the appropriate level of tax reserves to maintain for uncertain tax positions. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than fifty percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-than-likely-than-not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to management’s judgment. Management is not aware of any uncertain tax positions that would have material effect on the Company’s condensed consolidated financial statements. STRAWBERRY FIELDS REIT, INC. and SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 13. Fair Value of Financial Instruments The Company is required to disclose the fair value of financials instruments for which it is practicable to estimate that value. The fair value of short-term financial instruments such as cash and cash equivalents, restricted cash, accounts payable and accrued expenses approximate their carrying value on the condensed consolidated balance sheets due to their short-term nature. The Company’s foreclosed real estate is recorded at fair value on a non-recurring basis and is included in real estate investments on the condensed consolidated balance sheets. Estimates of fair value are determined based on a variety of information, including the use of available appraisals, estimates of market values by licensed appraisers or local real estate brokers and knowledge and experience of management. The fair values of the Company’s remaining financial instruments that are not reported at fair value on the condensed consolidated balance sheets are reported below: <p id="xdx_898_eus-gaap--FairValueAssetsAndLiabilitiesMeasuredOnRecurringAndNonrecurringBasisTableTextBlock_z1YzTvY5iGq8" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> Schedule of Fair Value on the Consolidated Balance Sheets <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 90%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: center"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: center"> </td> <td colspan="2" style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: center"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: center"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: center"> </td> <td colspan="6" style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center">March 31, 2026</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: center"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: center"> </td> <td colspan="6" style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center">December 31, 2025</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: center"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif">(amounts in $000s)</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: center"> </td> <td colspan="2" style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center">Level</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: center"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: center"> </td> <td colspan="2" style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif">Carrying Amount</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: center"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: center"> </td> <td colspan="2" style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif">Fair Value</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: center"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: center"> </td> <td colspan="2" style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center">Carrying Amount</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: center"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: center"> </td> <td colspan="2" style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif">Fair Value</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: center"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: #CCEEFF"> <td style="font: 10pt Times New Roman, Times, Serif; width: 40%; padding-bottom: 1pt">Bonds, note payable, and other debt</td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; width: 1%"> </td> <td style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; width: 9%; text-align: right">3</td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; padding-bottom: 1pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; width: 1%">$</td> <td id="xdx_989_eus-gaap--DebtInstrumentCarryingAmount_iI_pn3n3_c20260331__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member_zK8TryfGk2a3" style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; width: 9%; text-align: right" title="Bonds, note payable, and senior debt, carrying amount">791,432</td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; padding-bottom: 1pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; width: 1%">$</td> <td id="xdx_981_eus-gaap--DebtInstrumentFairValue_iI_pn3n3_c20260331__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member_zUMgjEm6NZBc" style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; width: 9%; text-align: right" title="Bonds, note payable, and senior debt, fair value">795,750</td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; padding-bottom: 1pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; width: 1%">$</td> <td id="xdx_983_eus-gaap--DebtInstrumentCarryingAmount_iI_pn3n3_c20251231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member_zZos8sMgUfxg" style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; width: 9%; text-align: right" title="Bonds, note payable, and senior debt, carrying amount">794,652</td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; padding-bottom: 1pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; width: 1%">$</td> <td id="xdx_987_eus-gaap--DebtInstrumentFairValue_iI_pn3n3_c20251231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member_z0XUrLEuFFUi" style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; width: 9%; text-align: right" title="Bonds, note payable, and senior debt, fair value">802,800</td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; padding-bottom: 1pt"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: white"> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">Notes receivable</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif"> </td> <td style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">3</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif">$</td> <td id="xdx_983_eus-gaap--NotesReceivableNet_iI_pn3n3_c20260331__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member_zVldUBL1hVbc" style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right" title="Notes receivable, carrying amount">20,978</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif">$</td> <td id="xdx_98C_eus-gaap--NotesReceivableFairValueDisclosure_iI_pn3n3_c20260331__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member_zIwLBGclQZQh" style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right" title="Notes receivable, fair value">20,235</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif">$</td> <td id="xdx_983_eus-gaap--NotesReceivableNet_iI_pn3n3_c20251231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member_z87aHDMbb3xd" style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right" title="Notes receivable, carrying amount">20,821</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif">$</td> <td id="xdx_985_eus-gaap--NotesReceivableFairValueDisclosure_iI_pn3n3_c20251231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member_z23LI3nOIKla" style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right" title="Notes receivable, fair value">20,462</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td></tr> </table> The fair value of the bonds, note payable, and other debt, and notes receivable are estimated using a discounted cash flow analysis.

<p id="xdx_898_eus-gaap--FairValueAssetsAndLiabilitiesMeasuredOnRecurringAndNonrecurringBasisTableTextBlock_z1YzTvY5iGq8" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> Schedule of Fair Value on the Consolidated Balance Sheets <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 90%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: center"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: center"> </td> <td colspan="2" style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: center"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: center"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: center"> </td> <td colspan="6" style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center">March 31, 2026</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: center"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: center"> </td> <td colspan="6" style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center">December 31, 2025</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: center"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif">(amounts in $000s)</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: center"> </td> <td colspan="2" style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center">Level</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: center"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: center"> </td> <td colspan="2" style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif">Carrying Amount</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: center"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: center"> </td> <td colspan="2" style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif">Fair Value</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: center"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: center"> </td> <td colspan="2" style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center">Carrying Amount</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: center"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: center"> </td> <td colspan="2" style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif">Fair Value</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: center"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: #CCEEFF"> <td style="font: 10pt Times New Roman, Times, Serif; width: 40%; padding-bottom: 1pt">Bonds, note payable, and other debt</td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; width: 1%"> </td> <td style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; width: 9%; text-align: right">3</td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; padding-bottom: 1pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; width: 1%">$</td> <td id="xdx_989_eus-gaap--DebtInstrumentCarryingAmount_iI_pn3n3_c20260331__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member_zK8TryfGk2a3" style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; width: 9%; text-align: right" title="Bonds, note payable, and senior debt, carrying amount">791,432</td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; padding-bottom: 1pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; width: 1%">$</td> <td id="xdx_981_eus-gaap--DebtInstrumentFairValue_iI_pn3n3_c20260331__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member_zUMgjEm6NZBc" style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; width: 9%; text-align: right" title="Bonds, note payable, and senior debt, fair value">795,750</td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; padding-bottom: 1pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; width: 1%">$</td> <td id="xdx_983_eus-gaap--DebtInstrumentCarryingAmount_iI_pn3n3_c20251231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member_zZos8sMgUfxg" style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; width: 9%; text-align: right" title="Bonds, note payable, and senior debt, carrying amount">794,652</td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; padding-bottom: 1pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; width: 1%">$</td> <td id="xdx_987_eus-gaap--DebtInstrumentFairValue_iI_pn3n3_c20251231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member_z0XUrLEuFFUi" style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; width: 9%; text-align: right" title="Bonds, note payable, and senior debt, fair value">802,800</td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; padding-bottom: 1pt"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: white"> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">Notes receivable</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif"> </td> <td style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">3</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif">$</td> <td id="xdx_983_eus-gaap--NotesReceivableNet_iI_pn3n3_c20260331__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member_zVldUBL1hVbc" style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right" title="Notes receivable, carrying amount">20,978</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif">$</td> <td id="xdx_98C_eus-gaap--NotesReceivableFairValueDisclosure_iI_pn3n3_c20260331__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member_zIwLBGclQZQh" style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right" title="Notes receivable, fair value">20,235</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif">$</td> <td id="xdx_983_eus-gaap--NotesReceivableNet_iI_pn3n3_c20251231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member_z87aHDMbb3xd" style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right" title="Notes receivable, carrying amount">20,821</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif">$</td> <td id="xdx_985_eus-gaap--NotesReceivableFairValueDisclosure_iI_pn3n3_c20251231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member_z23LI3nOIKla" style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right" title="Notes receivable, fair value">20,462</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td></tr> </table>

791432000

795750000

794652000

802800000

20978000

20235000

20821000

20462000

NOTE 14. Subsequent Events On April 20, 2026, the Company entered into an asset purchase agreement to acquire a healthcare property with 99 licensed SNF beds and 60 hospital beds near Marshall, Missouri. The acquisition is expected to be approximately $8.6 million. The proposed acquisition is subject to approval by the applicable bankruptcy court and satisfaction of customary closing conditions. The Company expects to close on the property in the second quarter of 2026.

8600000

NOTE 15. Financing Income (Expenses), Net Schedule of Financing Income (Expenses), Net <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 80%"> <tr style="display: none; vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_493_20260101__20260331_zGVISgABH6td" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_493_20250101__20250331_zgbTGAPRu9f1" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Three months ended March 31,</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">(amounts in $000s)</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold">Financing expenses</td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td></tr> <tr id="xdx_401_ecustom--InterestExpensesWithRespectToBonds_iN_pn3n3_di_maFIEzaoj_zmitFuOuoYAi" style="vertical-align: bottom; background-color: White"> <td style="width: 60%; text-align: left">Interest expenses with respect to bonds</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">(6,497</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">(4,482</td><td style="width: 1%; text-align: left">)</td></tr> <tr id="xdx_403_eus-gaap--InterestExpenseLongTermDebt_iN_pn3n3_di_maFIEzaoj_zXJmHOOC6771" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Interest expenses on loans from banks and others</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(6,042</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(8,402</td><td style="text-align: left">)</td></tr> <tr id="xdx_401_ecustom--InterestExpensesWithRespectToLeases_iN_pn3n3_di_maFIEzaoj_z1aswCSv9q3l" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Interest expenses with respect to leases</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(8</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(12</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_40F_eus-gaap--FinancingInterestExpense_iNT_pn3n3_di_mtFIEzaoj_maIEzEVn_z26b7o9b4S8" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; padding-bottom: 1pt">Total financing expenses</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">(12,547</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">(12,896</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_405_ecustom--FinancingIncomeExpense_pn3n3_msIEzEVn_zKNRcAd3qoVh" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-bottom: 1pt">Financing income</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">461</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">260</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--InterestExpenseOther_iNT_pn3n3_di_mtIEzEVn_z8NuQABqAb1d" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; padding-bottom: 1pt">Interest Expense, Net</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">(12,086</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">(12,636</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> </table>

Schedule of Financing Income (Expenses), Net <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 80%"> <tr style="display: none; vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_493_20260101__20260331_zGVISgABH6td" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_493_20250101__20250331_zgbTGAPRu9f1" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Three months ended March 31,</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">(amounts in $000s)</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold">Financing expenses</td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td></tr> <tr id="xdx_401_ecustom--InterestExpensesWithRespectToBonds_iN_pn3n3_di_maFIEzaoj_zmitFuOuoYAi" style="vertical-align: bottom; background-color: White"> <td style="width: 60%; text-align: left">Interest expenses with respect to bonds</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">(6,497</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">(4,482</td><td style="width: 1%; text-align: left">)</td></tr> <tr id="xdx_403_eus-gaap--InterestExpenseLongTermDebt_iN_pn3n3_di_maFIEzaoj_zXJmHOOC6771" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Interest expenses on loans from banks and others</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(6,042</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(8,402</td><td style="text-align: left">)</td></tr> <tr id="xdx_401_ecustom--InterestExpensesWithRespectToLeases_iN_pn3n3_di_maFIEzaoj_z1aswCSv9q3l" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Interest expenses with respect to leases</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(8</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(12</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_40F_eus-gaap--FinancingInterestExpense_iNT_pn3n3_di_mtFIEzaoj_maIEzEVn_z26b7o9b4S8" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; padding-bottom: 1pt">Total financing expenses</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">(12,547</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">(12,896</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_405_ecustom--FinancingIncomeExpense_pn3n3_msIEzEVn_zKNRcAd3qoVh" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-bottom: 1pt">Financing income</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">461</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">260</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--InterestExpenseOther_iNT_pn3n3_di_mtIEzEVn_z8NuQABqAb1d" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; padding-bottom: 1pt">Interest Expense, Net</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">(12,086</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">(12,636</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> </table>

6497000 4482000

6042000

8402000

8000 12000

12547000

12896000

461000 260000

12086000

12636000