Real Estate Investments, net |
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Jun. 30, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Real Estate Investments, net | NOTE 4. Real Estate Investments, net
Acquisition of Properties
There were no acquisitions of properties during the six month period ending June 30, 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 $23.3 million a year and is subject to an increase based on CPI with a minimum increase of 2.50%. 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, the Company entered into a 5 year note payable with the parent of the Landmark tenant for $50.9 million, included in the note payable 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 $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 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 annually and is subject to 3% annual increases.
On April 4, 2025, the Company completed the acquisition for a skilled nursing facility with 112 licensed beds near Houston, Texas. The acquisition was for $11.5 million. Base rent for this property is $1.3 million dollars annually. The property was added to an existing master lease and is subject an annual base rate increase of 3%. The initial term is approximately 10 years and includes two 5 year extensions.
On May 11, 2026, the Company sold a skilled nursing facility that was part of 8200 National Drive, a property in Oklahoma that was formally in independent lease, to a third-party operator. The property sold for $4.4 million. A loss of $0.15 million resulted from this sale. The Company still retains ownership interest in the Long-Term Acute Care Hospital that is part of the 8200 National Drive property.
STRAWBERRY FIELDS REIT, INC. and Subsidiaries NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 4. Real Estate Investments, net (Cont.)
Real estate investments consist of the following:
For the three-month periods ended June 30, 2026 and 2025, total depreciation expense was $9.2 million and $8.7 million, respectively. For the six-month periods ended June 30, 2026 and 2025, total depreciation expense was $18.4 million and $17.4 million, respectively.
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