Strawberry Fields REIT, Inc.
For the period ended Sep 30, 2026. Filed Nov 5, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 5, 2026
STRW$12.12-2.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-06.
0001493152-26-036400
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-05.
0001493152-26-050265
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 99 previous paragraphs and 95 current paragraphs.
57 unchanged; 24 reworded; 13 added; 18 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 5 previous and 5 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (13)
Current report
Rental revenues: Rental revenues increased by approximately $0.3 million, or 0.7%, primarily as a result of additional rental income from recently acquired properties and lease renewals, partially offset by the disposition of certain properties.
Current report
Depreciation and amortization: Depreciation and amortization expense decreased by approximately $0.7 million, or 6%, primarily due to the sale of two properties and certain assets becoming fully depreciated, partially offset by depreciation associated with properties acquired since the third quarter of 2025
Current report
Interest expense, net: Interest expense decreased by approximately $0.1 million, or 1%, primarily as a result of the payoff of Bond C in July 2026 and modestly lower interest rates on the Company’s bank loans during the quarter.
Current report
*Foreign currency transaction loss:*The Company recognized a $24.6 million foreign currency transaction loss in the third quarter of 2026, entirely attributable to foreign exchange transactions associated with the retirement of Bond Series A, Bond Series C, and Bond Series D.
Current report
Net income: The change from net income of $8.8 million during the third quarter of 2025 to a net loss of $14.7 million during the third quarter of 2026 was primarily attributable to the recognition of a $24.6 million foreign currency transaction loss.
Current report
*Foreign currency transaction loss:*The Company recognized a $24.6 million foreign currency transaction loss in 2026, entirely attributable to foreign exchange transactions associated with the retirement of Bonds Series A, Series C, and Series D during the third quarter of 2026.
Current report
Net income: Net income decreased to $3.7 million in 2026, primarily due to a $24.6 million foreign currency transaction loss recognized during the third quarter of 2026 in connection with foreign exchange transactions associated with the redemption of bonds.
Current report
Cash used in financing activities was $71.3 million for the nine months ending September 30, 2026. Cash inflows consisted primarily of $172.2 million of senior debt proceeds, $71.5 million of net proceeds from bond issuances and $5.1 million of proceeds from ATM sales. These inflows were more than offset by $189.2 million used for bond retirements, $53.9 million of bond repayments, $39.3 million of senior debt repayments, $21.1 million of distributions to non-controlling interests, $6.9 million of dividend payments, $6.8 million of note payable repayments and $2.9 million of deferred financing costs. Cash provided by financing activities for the nine months ending September 30, 2025, was $0.08 million. This comprised of proceeds from the issuance of Series B Bonds $86.0 million and $2.2 million of proceeds from ATM sales. These inflows were largely offset by $61.1 million in repayments of bonds, senior debt and the note payable, $18.8 million in distributions to non-controlling interests, $5.5 million in dividend payments, and $2.0 million related to the retirement of OP units
Current report
The credit facility that closed in September 22, 2026, is subject to financial covenants requiring (i) a Debt Service Coverage Ratio of not less than 1.30x and (ii) a Net Debt to Adjusted EBITDA ratio of not greater than 8.00x, each tested semi-annually on a trailing twelve-month basis. As of September 30, 2026, the Company was in compliance with the loan covenants.
Current report
Series C Bonds
Current report
In September 2026, Strawberry Fields, Inc completed, directly, an initial offering on the Tel Aviv Stock Exchange (“TASE”) of Series D Bonds with a par value of NIS 51.7 million ($17.1 million). The Series D Bonds were issued at 99.7% of par. Offering and issuance costs of approximately $0.5 million were incurred at closing. On September 30, 2026, the outstanding balance of the Series D Bonds was NIS 51.7 million ($16.9 million).
Current report
On October 1, 2026, the Company received notice from a tenant that it intends to exercise an option to purchase 13 properties located in Arkansas for an aggregate purchase price of approximately $90.0 million. The portfolio consists of 14 facilities comprising 1,163 licensed beds and currently generates approximately $12.0 million of annual rent. The transaction is expected to close prior to December 31, 2026, subject to customary closing conditions.
Current report
On November 2, 2026, the Company entered into a purchase agreement to acquire a 99-bed skilled nursing facility located in Angola, Indiana, for a purchase price of $15.0 million. The Company expects to fund the acquisition with $14.0 million in cash and $1.0 million in OP Units. Upon closing, the facility is expected to be added to the Company’s existing Indiana Master Lease 1, resulting in an initial increase in annual base rent of approximately $1.5 million, subject to annual increases of 3%. The acquisition is expected to close before December 31, 2026, subject to customary closing conditions.
Removed paragraphs (18)
Previous report
Rental revenues: The increase in rental revenues of $2.2 million or 6% is due to higher income from the purchase of additional properties and lease renewals.
Previous report
Depreciation and amortization: The decrease in depreciation and amortization of $0.1 million or (9)% is primarily due lower depreciation from fully depreciated assets and the sale of 2 properties, offset by the purchases of additional properties since the second quarter 2025.
Previous report
Interest expense, net: The increase in interest expense of $0.5 million or 4% is primarily due to additional interest expense from the Bond Series B issuance that closed in June of 2025, as well as Bond Series C issuance in May of 2026. This increase was offset by lower interest expense resulting from a paydown of a commercial loan.
Previous report
Net income: The increase in net income from $8.6 million during the second quarter of 2025, to $8.9 million income during the second quarter of 2026 is primarily a result of higher rental income since the second quarter of 2025 offset by higher general and administrative expenses and an increase in interest expense.
Previous report
Net income: The increase in net income to $18.4 million in 2026 is primarily a result of higher rental income and lower amortization expense since second quarter 2025 offset by higher general and administrative expenses.
Previous report
Cash used by financing activities for the six months ended June 30, 2026 was comprised of ATM sales of $1.7 million and proceeds from the issuance of Series C Bonds (Inc) of $52.2 million offset by bond repayments of $56.7 million, repayments of senior debt $4.7 million, dividend payments of $4.4 million, $4.4 million in repayments of the note payable and non-controlling interest distributions of $14 million. Cash provided by financing activities for the six months ended June 30, 2025 was comprised of proceeds from the issuance of Series B Bonds $86 million offset by Non-controlling interest distributions of $12.0 million, repayments of senior debt $36.6 million, dividend payments of $3.5 million and $4.0 million in repayments of the note payable.
Previous report
Series A Bonds
Previous report
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 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 Company issued an additional NIS 145.6 million ($38.1 million) in Series A Bonds.
Previous report
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 is 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).
Previous report
As of June 30, 2026, the outstanding balance of Series A Bonds was NIS 302.2 million ($101.5 million)
Previous report
The Series A Bonds are traded on the TASE
Previous report
Series C Bonds (Inc)
Previous report
Series C Bonds (BVI)
Previous report
In July 2021, the BVI Company completed an initial offering of Series C Bonds (BVI) with a par value of NIS 208.0 million ($64.7 million). The Series C Bonds (BVI) were issued at par. During February 2023, the BVI Company issued additional Series C Bonds (BVI) in the face amount of NIS 40.0 million ($11.3 million) and raised a net amount of NIS 38.1 million ($10.7 million). These Series C Bonds (BVI) were issued at a price of 95.25%. In October 2024, the BVI company issued an additional NIS 62.0 million ($16.6 million) in Series C Bonds (BVI). The bonds were issued at 99.3%. On June 1, 2026 the Company completed an early redemption of NIS 146.4 million ($49.2 million)as of June 30, 2026, the outstanding principal amount of the Series C (BVI) Bonds was NIS 101.4 million ($34.1 million).
Previous report
In June 2023, the BVI Company completed an initial offering of Series D Bonds with a par value of NIS 82.9 million ($22.9 million). The Series D Bonds were issued at par. During August 2023, the BVI Company issued additional Series D Bonds in the face amount of NIS 70.0 million ($19.2 million). These Series D Bonds were issued at a price of 99.7%. On February 8, 2024, the BVI Company issued additional NIS 98.2 million ($25.7 million) Series D Bonds. These Series D Bonds were issued at a price of 106.3%.
Previous report
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 is 9.1% per annum. The exchange offer rate was 1.069964 Series A Bonds per Series D Bonds. As a result of this offer, 47.3 million NIS Series D Bonds ($12.7 million) were exchanged for 50.6 million NIS Series A Bonds ($13.6 million).
Previous report
As of June 30, 2026, the Series D Bonds had an outstanding principal balance of approximately NIS 175.8 ($59.0 million).
Previous report
On July 31, 2026, the Company redeemed in full the Series C Bonds (BVI) issued by the BVI company. The final redemption payment was for NIS 109.8 million ($34.1 million) and was funded from cash from the condensed consolidated balance sheet. The redemption of Series C Bonds (BVI) released liens on 9 properties previously pledged as collateral for the bond.
Reworded paragraphs (24)
Previous wording
● risks and uncertainties related to the national, state and local economies, particularly the economies of Arkansas, Illinois, Indiana, Kentucky, Missouri, Ohio, Oklahoma, Tennessee and Texas, and the real estate and healthcare industries in general;
Current wording
● risks and uncertainties related to the national, state and local economies, particularly the economies of Arkansas, Illinois, Indiana, Kentucky, Kansas, Missouri, Ohio, Oklahoma, Tennessee and Texas, and the real estate and healthcare industries in general;
Previous wording
Strawberry Fields REIT, Inc. (the “Company”) is engaged in the ownership, acquisition, financing and triple-net leasing of skilled nursing facilities and other post-acute healthcare properties. Currently, our portfolio consists of 133 healthcare properties with an aggregate of 15,496 licensed beds. We hold fee title to 132 of these properties and hold one property under a long-term lease. These properties are located in Arkansas, Illinois, Indiana, Kansas, Kentucky, Missouri, Ohio, Oklahoma, Tennessee and Texas. We generate substantially all our revenues by leasing our 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 our properties is managed by a qualified operator with an experienced management team.
Current wording
Strawberry Fields REIT, Inc. (the “Company”) is engaged in the ownership, acquisition, financing and triple-net leasing of skilled nursing facilities and other post-acute healthcare properties. Currently, our portfolio consists of 134 healthcare properties with an aggregate of 15,655 licensed beds. We hold fee title to 133 of these properties and hold one property under a long-term lease. These properties are located in Arkansas, Illinois, Indiana, Kansas, Kentucky, Missouri, Ohio, Oklahoma, Tennessee and Texas. We generate substantially all our revenues by leasing our 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 our properties is managed by a qualified operator with an experienced management team.
Previous wording
We are entitled to monthly rent paid by the tenants and we do not receive any income or bear any expenses from the operations of such facilities. As of June 30, 2026, the aggregate annualized average base rent under the leases for our properties was approximately $142.4 million.
Current wording
We are entitled to monthly rent paid by the tenants and we do not receive any income or bear any expenses from the operations of such facilities. As of September 30, 2026, the aggregate annualized average base rent under the leases for our properties was approximately $144.1 million.
Previous wording
We elected a REIT status for U.S. federal income tax purposes commencing with our taxable year ended December 31, 2022. We are organized in an UPREIT structure in which we own substantially all of our assets and conduct substantially all of our business through the Operating Partnership. We are the general partner of the Operating Partnership and as of the date of the report own approximately 25.3% of outstanding OP units.
Current wording
We elected a REIT status for U.S. federal income tax purposes commencing with our taxable year ended December 31, 2022. We are organized in an UPREIT structure in which we own substantially all of our assets and conduct substantially all of our business through the Operating Partnership. We are the general partner of the Operating Partnership and as of the date of the report own approximately 25.7% of outstanding OP units.
Previous wording
As a landlord, the Company does not control the operations of its tenants, including related party tenants, and is not able to cause its tenants to take any specific actions to address trends in occupancy at the facilities operated by its tenants, other than to monitor occupancy and income of its tenants, discuss trends in occupancy with tenants and possible responses, and, in the event of a default, exercise its rights as a landlord. However, Moishe Gubin, our Chairman and Chief Executive Officer, and Michael Blisko, one of our directors, as the controlling members of 66 of our tenants and related operators, have the ability to obtain information regarding these tenants and related operators and cause the tenants and operators to take actions, including with respect to occupancy.
Current wording
As a landlord, the Company does not control the operations of its tenants, including related party tenants, and is not able to cause its tenants to take any specific actions to address trends in occupancy at the facilities operated by its tenants, other than to monitor occupancy and income of its tenants, discuss trends in occupancy with tenants and possible responses, and, in the event of a default, exercise its rights as a landlord. However, Moishe Gubin, our Chairman and Chief Executive Officer, and Michael Blisko, one of our directors, as the controlling members of 64 of our tenants and related operators, have the ability to obtain information regarding these tenants and related operators and cause the tenants and operators to take actions, including with respect to occupancy.
Previous wording
General and administrative expenses: The increase in general and administrative expenses of $1.3 million or 62% reflects higher closing costs related to the new line of credit and term loan, as well as higher compensation expense.
Current wording
General and administrative expenses: The increase in general and administrative expenses of $0.4 million or 28%, primarily as a result of higher executive compensation and professional fees.
Previous wording
Six Months Ended June 30, 2026 Compared to Six Months Ended June 30, 2025:
Current wording
Nine Months Ended September 30, 2026 Compared to Nine Months Ended September 30, 2025:
Previous wording
Rental revenues: The increase in rental revenue of $4.8 million or 6% is due to the acquisition of properties made since second quarter of 2025.
Current wording
Rental revenues: The increase in rental revenue of $5.1 million or 4% is due to the acquisition of properties and lease renewals made since third quarter of 2025.
Previous wording
Depreciation and amortization: The increase in depreciation and amortization of $0.03 million or 0.13% is primarily due to properties purchased in 2025, offset by full amortized assets.
Current wording
Depreciation and amortization: The decrease in depreciation and amortization of $0.6 million or 1.9% is primarily due to full amortized assets and property depositions, offset by property acquisitions.
Previous wording
General and administrative: The increase in general and administrative of $1.7 million or 42% is primarily a result of higher costs associated with the new line of credit and term loan, higher professional fees, and higher compensation expenses.
Current wording
General and administrative: The increase in general and administrative expenses of approximately $2.1 million, or 38%, was primarily attributable to higher costs associated with the Company’s new line of credit and term loan, increased professional fees, and higher executive compensation expense.
Previous wording
As of June 30, 2026, we had cash and cash equivalents and restricted cash and equivalents of $77.6 million. We also had the ability to offer an additional $83.2 million in Series A Bonds, $130.0 million in series C-Bonds (Inc); $177.5 million in Series C Bonds (BVI) and an additional $92.1 million in Series D Bonds subject to compliance with covenants and market conditions. The Series B Bonds do not have a ceiling for additional issuances; however, the series is subject to compliance with covenants and market conditions.
Current wording
As of September 30, 2026, we had cash and cash equivalents and restricted cash and equivalents of $38.8 million. We also had the ability to offer an additional $126.5 million in Series C Bonds, as well as the ability to borrow $30.0 million on our line of credit with a commercial bank. The Series B Bonds and Series D Bonds do not have a ceiling for additional issuances; however, the series are subject to compliance with covenants and market conditions.
Previous wording
We may utilize various types of debt to finance a portion of our acquisition activities, including long-term, fixed-rate mortgage loans, variable-rate term loans and secured revolving lines of credit. As of June 30, 2026, on a condensed consolidated basis, we had total indebtedness of approximately $810.2 million, consisting of $250 million in HUD guaranteed debt, $359.5 million in Series A, Series B, Series C Bonds (Inc), Series C Bonds (BVI) and Series D Bonds outstanding, and $162.6 million in commercial mortgages loans. Under our bonds and our commercial mortgages loans, we are subject to continuing covenants, and future indebtedness that the Company may incur may contain similar provisions. In the event of a default, the lenders could accelerate the timing of payments under the debt obligations, and we may be required to repay such debt with capital from other sources, which may not be available on attractive terms, or at all, which would have a material adverse effect on our liquidity, financial condition, results of operations and ability to make distributions to our stockholders.
Current wording
We may utilize various types of debt to finance a portion of our acquisition activities, including long-term, fixed-rate mortgage loans, variable-rate term loans and secured revolving lines of credit. As of September 30, 2026, on a condensed consolidated basis, we had total indebtedness of approximately $763.2 million, consisting of $247.9 million in HUD guaranteed debt, $177.2 million in Series B, Series C and Series D Bonds outstanding, $302.3 million in commercial mortgage loans, and a note payable for $35.9 million. Under our bonds and our commercial mortgages loans, we are subject to continuing covenants, and future indebtedness that the Company may incur may contain similar provisions. In the event of a default, the lenders could accelerate the timing of payments under the debt obligations, and we may be required to repay such debt with capital from other sources, which may not be available on attractive terms, or at all, which would have a material adverse effect on our liquidity, financial condition, results of operations and ability to make distributions to our stockholders.
Previous wording
Through 2029 there are six balloon payment obligations consisting of a payment of $34.1 million due under the Series C Bonds (BVI) in 2026, a payment of $101.5 million due under the Series A Bonds in 2026, a payment of $59.0 million due under the Series D Bonds in 2026, a payment of $94.2 million due under our commercial bank term mortgage loan facility due in 2029, a payment of $60.0 million due under our line of credit commercial bank mortgage loan facility due in 2029, a payment of $101.1 million due under the Series B Bonds in 2029 and a payment of $48.1 million due under the Series C Bonds (Inc) in 2030. We may also obtain additional financing that contains balloon payment obligations. These types of obligations may adversely affect us, including our cash flows, financial condition and ability to make distributions.
Current wording
Through 2031 there are five balloon payment obligations totaling $435.7 million. This consists of a payment of $94.7 million due under our commercial bank term mortgage loan facility due in 2029, a payment of $170.0 million due under our line of credit commercial bank mortgage loan facility due in 2029, a payment of $98.3 million due under the Series B Bonds in 2029, a payment of $46.8 million due under the Series C Bonds in 2030, a payment of $25.9 million due under our commercial bank term mortgage loan facility due in 2031. We may also obtain additional financing that contains balloon payment obligations. These types of obligations may adversely affect us, including our cash flows, financial condition and ability to make distributions.
Previous wording
Net cash provided by operating activities was $41.7 million for the six months ended June 30, 2026 and primarily consisted of net earnings of $18.4 million adjusted by depreciation and amortization of $22.6 million and foreign currency translation adjustments of $3.1 million. This was offset by an increase in straight-line rent receivables of $4.1 million. Net cash provided by operating activities was $48.8 million for the six months ended June 30, 2025 and primarily consisted of net earnings of $15.7 million adjusted by depreciation and amortization of $22.6 million offset by an increase in other assets of $0.7 million and a decrease in other accrued liabilities of $8.3 million.
Current wording
Net cash provided by operating activities was $55.2 million for the nine months ended September 30, 2026 and primarily consisted of net income of $3.7 million, adjusted for depreciation and amortization of $33.8 million, a foreign currency transaction loss of $24.6 million, amortization of bond issuance costs of $2.4 million and amortization of deferred financing costs of $0.7 million. These adjustments were partially offset by a $6.3 million increase in straight-line rent receivables and $3.4 million of foreign currency translation adjustments. Net cash provided by operating activities was $69.5 million for the nine months ended September 30, 2025, primarily reflecting net earnings of $24.5 million, adjusted by depreciation and amortization of $34.4 million, an increase in accounts payable and accrued liabilities and other liabilities of $9.9 million, foreign currency translation adjustments of $3.8 million, and amortization of bond issuance costs of $2.0 million. These increases were partially offset by a $5.6 million increase in straight-line receivables.
Previous wording
Cash received from investing activities was $0.9 million for the six months ended June 30, 2026 and comprised of the sale of a property in Oklahoma for $4.2 million. This was offset by an increase in notes receivable of $3.4 million. Cash used in investing activities for the six months ended June 30, 2025 was comprised of $40.5 million for the acquisition of properties for Kansas Master Lease, a property in Oklahoma as well as a property in Texas. This was offset by $0.1 million in principal payments on notes receivable.
Current wording
Cash used in investing activities was $11.9 million for the nine months ended September 30, 2026. and comprised of a purchase of a property in Missouri for $10.5, million offset by the sale of a property in Oklahoma for $4.3 million and an increase in notes receivable of $5.7 million. Cash used in investing activities for the nine months ended September 30, 2025, totaled $107.3 million, primarily related to the acquisition of properties for the acquisition of 9 properties in Missouri, the Kansas Master Lease, and 4 other individual properties in Oklahoma, Texas and Missouri.
Previous wording
As of June 30, 2026, we had non-recourse mortgage loans of $250.0 million from third party lenders that were guaranteed by HUD.
Current wording
As of September 30, 2026, we had non-recourse mortgage loans of $247.9 million from third party lenders that were guaranteed by HUD.
Previous wording
On June 18, 2026, the Company closed two mortgage loan facilities with a commercial bank consisting of a $100.0 million term loan facility and a Revolving Line of Credit (“RLOC”) facility with commitments of up to $200.0 million. At closing, the Company refinanced approximately $160.0 million of existing bank indebtedness, consisting of $100.0 million under the term loan facility and $60.0 million under the RLOC facility.
Current wording
On June 18, 2026, the Company closed two mortgage loan facilities with a commercial bank consisting of a $100.0 million term loan facility and a Revolving Line of Credit (“RLOC”) facility with commitments of up to $200.0 million. At closing, the Company refinanced approximately $160.0 million of existing bank indebtedness, consisting of $100.0 million under the term loan facility and $60.0 million under the RLOC facility. In September 2026, the company borrowed additional $140 million on the RLOC and subsequently paid down $30 million of the balance.
Previous wording
The term loan facility provides for monthly payments of principal and interest based on a 20-year amortization schedule with a balloon payment due in June 2029. The RLOC facility provides for monthly interest-only payments with all outstanding principal due in June 2029. The rate on both facilities is based on the one-month Secured Overnight Financing Rate (“SOFR”) plus a margin of 2.75% and is subject to a floor of 5.50% (as of June 30, 2026, the rate was 6.40%). As of June 30, 2026, the outstanding balances under the term loan facility and revolving line of credit facility were $100.0 million and $60.0 million, respectively. The term loan facility is collateralized by 14 properties owned by the Company, while the RLOC facility is collateralized by 36 properties owned by the Company.
Current wording
The term loan facility provides for monthly payments of principal and interest based on a 20-year amortization schedule with a balloon payment due in June 2029. The RLOC facility provides for monthly interest-only payments with all outstanding principals due in June 2029. The rate on both facilities is based on the one-month Secured Overnight Financing Rate (“SOFR”) plus a margin of 2.75% and is subject to a floor of 5.50% (as of September 30, 2026, the rate was 6.66%). As of September 30, 2026, the outstanding balances under the term loan facility and revolving line of credit facility were $100.0 million and $170.0 million, respectively. The term loan facility is collateralized by 14 properties owned by the Company, while the RLOC facility is collateralized by 36 properties owned by the Company.
Previous wording
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 had an interest rate of 6.25% and matured in April 2026. On April 6, 2026, the company refinanced the loan with the same bank. The loan balance at refinancing was $2.7 million and the company received an interest rate of 6.0%. The loan term ends on March 2031. The loan balance as of June 30, 2026 is $2.6 million
Current wording
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 had an interest rate of 6.25% and matured in April 2026. On April 6, 2026, the company refinanced the loan with the same bank. The loan balance at refinancing was $2.7 million and the company received an interest rate of 6.0%. The loan term ends in March 2031. The loan balance as of September 30, 2026, is $2.6 million
Previous wording
As of June 30, 2026, the Company had outstanding Series A, Series B, Series C (Inc), Series C (BVI) Bonds and Series D Bonds.
Current wording
As of September 30, 2026, the Company had outstanding Series B, Series C and Series D Bonds.
Previous wording
In June 2025, Strawberry Fields, Inc completed, directly, an initial offering on the Tel Aviv Stock Exchange (“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. In December 2025, the Company issued an additional NIS 30.0 million ($9.4 million) in Series B Bonds. At June 30, 2026, the outstanding balance of Series B Bonds was NIS 328.2 million ($110.2 million).
Current wording
In June 2025, Strawberry Fields, Inc completed, directly, an initial offering on the Tel Aviv Stock Exchange (“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. In December 2025, the Company issued an additional NIS 30.0 million ($9.4 million) in Series B Bonds. On September 30, 2026, the outstanding balance of Series B Bonds was NIS 328.2 million ($107.2 million).
Previous wording
In June 2026, Strawberry Fields, Inc completed, directly, an initial offering on the Tel Aviv Stock Exchange (“TASE”) of Series C (Inc) Bonds with a par value of NIS 162.7 million ($55.8 million). The series C Bonds (Inc) were issued at 101% of par. Offering and issuance costs of approximately $3.6 million were incurred at closing. At June 30, 2026, the outstanding balance of the Series C Bonds (Inc) was NIS 162.7 million ($54.7 million).
Current wording
In June 2026, Strawberry Fields, Inc completed, directly, an initial offering on the Tel Aviv Stock Exchange (“TASE”) of Series C Bonds with a par value of NIS 162.7 million ($55.8 million). The Series C Bonds were issued at 101% of par. Offering and issuance costs of approximately $1.2 million were incurred at closing. On September 30, 2026, the outstanding balance of the Series C Bonds was NIS 162.7 million ($53.1 million).
Previous wording
The following table reconciles our calculations of FFO and AFFO for the six and three months ended June 30, 2026 and 2025, to net income the most directly comparable GAAP financial measure, for the same periods:
Current wording
The following table reconciles our calculations of FFO and AFFO for the nine and three months ending September 30, 2026 and 2025, to net income the most directly comparable GAAP financial measure, for the same periods:
Previous wording
Our condensed consolidated financial statements included in Item 1 of this Quarterly Report on Form 10-Q have been prepared in accordance with GAAP for interim financial information set forth in the Accounting Standards Codification, as published by the Financial Accounting Standards Board. GAAP requires us to make estimates and assumptions regarding future events that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. We base these estimates on our experience and assumptions we believe to be reasonable under the circumstances. However, if our judgment or interpretation of the facts and circumstances relating to various transactions or other matters had been different, we may have applied a different accounting treatment, resulting in a different presentation of our financial statements. We periodically reevaluate our estimates and assumptions, and in the event they prove to be different from actual results, we make adjustments in subsequent periods to reflect more current estimates and assumptions about matters that are inherently uncertain. Please refer to “Critical Accounting Policies” in the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section of our 2025 Annual Report on 10-K filed on March 19, 2026 for further information regarding the critical accounting policies that affect our more significant estimates and judgments used in the preparation of our condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q. There have been no material changes in such critical accounting policies during the six months ended June 30, 2026.
Current wording
Our condensed consolidated financial statements included in Item 1 of this Quarterly Report on Form 10-Q have been prepared in accordance with GAAP for interim financial information set forth in the Accounting Standards Codification, as published by the Financial Accounting Standards Board. GAAP requires us to make estimates and assumptions regarding future events that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. We base these estimates on our experience and assumptions we believe to be reasonable under the circumstances. However, if our judgment or interpretation of the facts and circumstances relating to various transactions or other matters had been different, we may have applied a different accounting treatment, resulting in a different presentation of our financial statements. We periodically reevaluate our estimates and assumptions, and in the event they prove to be different from actual results, we make adjustments in subsequent periods to reflect more current estimates and assumptions about matters that are inherently uncertain. Please refer to “Critical Accounting Policies” in the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section of our 2025 Annual Report on 10-K filed on March 19, 2026, for further information regarding the critical accounting policies that affect our more significant estimates and judgments used in the preparation of our condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q. There have been no material changes in such critical accounting policies during the nine months ending September 30, 2026.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
On September 22, 2026, the Company entered into a $30.0 million mortgage loan facility with a different commercial bank. The loan had an interest rate of SOFR plus a margin of 2.75% and is subject to a floor of 5.50% (as of September 30, 2026, the rate was 6.66%). The term loan facility provides for monthly payments of principal and interest based on a 20-year amortization schedule with a balloon payment due in June 2031. The mortgage facility is collateralized by 8 properties owned by the Company. The loan balance as of September 30, 2026 is $30.0 million.