Thank you, and welcome to Strawberry Fields REIT's year-end 2025 earnings call. I am the Chief Investment Officer, and joining me today on the call are Moishe Gubin, our Chairman and CEO, and Greg Flamion, our CFO.

Yesterday, the company issued its year-end 2025 earnings results, which are available on the company's Investor Relations website. Participants should be aware that this call is being recorded, and listeners are advised that any forward-looking statements made on today's call are based on management's current expectations, assumptions, and beliefs about Strawberry Fields REIT's business and the environment in which it operates.

These statements may include projections regarding future financial performance, dividends, acquisitions, investments, returns, financings, and may or may not reference other matters affecting the company's business or the businesses of its tenants, including factors that are beyond its control. Additionally, references will be made during this call to non-GAAP financial results.

Investors are encouraged to review these non-GAAP financial measures, as well as the explanation and reconciliation of these measures to the comparable GAAP results included on the non-GAAP measure reconciliation page in our investor presentation. Now, on to discussing Strawberry Fields REIT and our 2025 performance.

I want to start by sharing some key highlights for the year. Throughout 2025, the company collected 100% of its contractual rents.

This is something we are very proud of, as collecting our rents year in, year out shows our disciplined investment approach works. On January 1st, 2025, the company re-tenanted its 10 Kentucky properties, formerly part of the Landmark master lease.

The new tenant, Hill Valley, has a strong background in operating skilled nursing facilities and was a great fit for this portfolio. The new base rents are $23.3 million a year and are subject to annual increases of 2.5%.

The initial lease term is 10 years, with 4 5-year extension options. Also in January, the company entered the state of Kansas by acquiring 6 facilities consisting of 354 beds for $24 million.

The company entered into a new triple-net master lease with Willie and Michelle Nevader of AdvenaCare for an initial 10-year term that included 2 5-year extension options. In June, the company issued 312 million shekels in Series B bonds on the Tel Aviv Stock Exchange, which is approximately $89.5 million.

The bonds are unsecured and were issued at par with a fixed interest rate of 6.7%. This was the company's sixth series it completed on the Tel Aviv Stock Exchange since the company was founded in 2015, and we look forward to maintaining this long-standing relationship that Moishe has grown into future series.

In July, the company completed the $59 million acquisition of 9 skilled nursing facilities comprised of 686 beds located in Missouri. 8 of the facilities were leased to the Tieh Group led by Brian Ramos and were added to its existing master lease the company entered into in August of 2024.

The ninth facility was leased to an affiliate of Reliant Care Group led by Rick and Nick DeStefane and were added to their master lease the company assumed in December 2024. This deal highlights the company's goal to grow its master leases.

When there is a deal in an existing state or with an existing operator, it is very easy for the company to get the deal done. It's almost like plug and play, as we do not need to renegotiate the lease or other terms with our tenant.

We can simply add the new facility to the existing master lease, and business goes on as usual. During 2025, the company continued to pay a dividend of around 5%.

We started in Q1 with a dividend of 14 cents a share, and in August, the Board of Directors increased the dividend by 2 cents to 16 cents—to 16 cents a share, which represented a 14% increase. As a final point, as we detailed in our earnings release yesterday, and as both Moishe and Greg will discuss further, 2025 was the best year the company has had since its inception.

Over the last 5 years, the company has had 13%-plus growth of the adjusted FFO, adjusted EBITDA, and the average base rents. I believe that these numbers reflect the success of the company's disciplined investment approach and our ability to close on deals that are accretive to the balance sheet.

I would now like to have Greg Flamion, our Chief Financial Officer, discuss the year-end financials.

Thank you, Jeff, and welcome, everyone, to the Strawberry Fields fourth-quarter earnings call. Let's begin with a look at our balance sheet.

Total assets are $885 million, an increase of $97.9 million, or 12.4%, compared to December 31st, 2024. Our asset growth was driven by a couple of key factors.

First are recent real estate acquisitions. This includes $112 million of acquisitions in 2025.

Second is the re-tenanting of key leases, namely the Landmark master lease into the Kentucky master lease. On the liabilities and equity side, increases were driven by financing activity associated with our acquisitions, along with the impact of foreign currency translation adjustments.

Together, both of these factors contributed to the overall growth in our debt balances. Equity declined, reflecting lower other comprehensive income, driven again by the foreign currency translation adjustments.

Continuing now to the consolidated statement of income. 2025 revenue was $155 million, up $37.9 million compared to December 31st, 2024.

This represents a 32.4% increase, which was driven by the timing and integration of properties acquired in 2024 and 2025 and the Landmark to Kentucky master lease re-tenanting that began in January 2025. While we experienced higher revenues, the income growth was offset by higher depreciation, amortization, and interest expense, which is driven by new property acquisitions.

This results in a year-to-date net income of $33.3 million, or 60 cents per share, compared to $26.5 million, or 57 cents per share, in 2024. Finally, I'd like to end my presentation with some financial highlights.

Our 2025 AFFO is $72.5 million. This is a growth of 29.8% versus 2024 and represents a 13.3% compound annual growth rate.

The 2025 adjusted EBITDA is $125.3 million. This represents a 38.2% increase compared to 2024 and a 13.5% compound annual growth rate.

Our net debt to net asset ratio currently sits at 49.5%. As of December 31st, 2025, our dividend was 16 cents a share, representing a 4.9% yield and an AFFO payout of 46%.

This concludes the financial portion of the earnings call presentation. I'll now turn it back to Jeff, who will walk us through additional portfolio highlights.

Thank you, Greg. Our portfolio highlights are as follows: currently, our portfolio has 143 facilities located in 10—in 10 states, which comprises 16,602 licensed beds.

The total value of our portfolio at acquisition is $1.1 billion. If you take the value of our portfolio based on the leases, that amount is closer to $1.5 billion.

There are 17 consultants advising to our operators. Our weighted average lease term is 7.2 years.

I am happy to report that our tenants continue to do well, and our EBITDARM rent coverage as of November 30th was 2.07. Our net debt to EBITDA is 5.7.

As I mentioned earlier, we continue to collect 100% of our rents. As a final point, our acquisition pipeline remains strong at $250 million.

As Moishe and I have mentioned in the past, for us to close on a deal, it has to meet our disciplined investment approach, which is a 10—at a 10 cap at acquisition. With that, I pass it on to Moishe Gubin, our Chairman and CEO, to continue the presentation.

Okay. Thank you—thank you, Jeff.

As Jeff mentioned, this was a great year for our—best year we've ever had, and it was a great year for our AFFO growth, where we had a 13.3, which is the average growth rate over the last 6 years, but proudly from $38 million to $72 million. These are good—these are really good numbers that we're very proud of.

On the next slide, we got base rent, again 13.4% growth rate, almost double like the last one, very similar numbers, from $75 million in 2020 to $142 million 675. These are these are good numbers that we're very happy with.

On the next slide, we talk about our stock price, which in December, we hit an all-time high. We've got the $14 a share, and we're still way undervalued.

We believe that our stock value is, close to $18, $19, $20 a share. Our stock is still is still straggling behind our peers, but, we figure we'll keep doing what we're doing, fundamentally, strong business, and God willing, eventually everything will get caught up get caught up to us.

You could see on the next slide how the AFFO multiples for us were at the lowest of everybody at a 9.5 times, and CareTrust or even Sabra is at 12.8, and CareTrust is at almost 20 times. They're doing real good.

I'm happy for them, they're good people. The return on the stock, 30% return this year, that's pretty good.

We're happy about that, though we feel that when when the market truly gets to where it was supposed to be, we'll see a nicer pop than 30%. That being said, the next slide, our AFFO payout ratio continues to be the lowest, where where we're paying out of 47%, close to 47% of our of our AFFO, using the rest of the money to pay down debt as placeholder, but to be able to use it to buy more assets.

Our dividend yield, which were still, they're the the pack at CareTrust, HRT, and us at 5%, and we feel that that's a good place to be, especially when we're able to go take the money, put the money out the door at a 10 cap, where we get to get a blended return at this point where blended return of about 17% to 18%, which is what it's been, and we're very happy about that. Really, it's a very calm calm portfolio, collecting our rents, doing what we're doing, growing when we can.

We still we're still we're still anticipating guidance of being able to grow $100 to $150 million a year. We hope to beat that, and we had a deal that we that that fell through that we were we were going to announce an $80, $90 million deal.

I was so happy to go get that and get it out of the way earlier in the year, but that fell apart, unfortunately. God willing God willing, we will we will be able to hit our targets of, $100, $150 million this year.

The next slide really just talks about how we're still the pure-play skilled nursing facility healthcare REIT. We were recently at a convention, and we asked, investors and others if if they thought we were doing the right thing, and everybody across the board said, "No, you keep doing what you're doing.

As the pure-play, people will gravitate towards you." We feel like we're going to just keep sticking with our guns and how we do things and what we're buying, and we should be able to continue staying above 90% in skilled nursing facilities.

The next slide really just talks about the coverage, our rent coverages, over 2 times rent is pretty good. We're happy with that, and hopefully that'll continue.

Our AFFO per share growth, you can see we're the highest, proud of that as well, 12.8% over the last 5 years. It's good.

We're we're running a nice, clean business, as you guys know, and we expect things to be able to stay the same or improve going forward. On on this slide 12, we're just showing how our debt maturity schedule is is currently.

In the next few weeks, me and the team are heading to Israel, and at the same time, we should be announcing that we are entering into a term sheet with a bank for the unsecured line of credit and term loan, which we talked about over the last few years. We expect in the next 45 to 60 days to be able to have most of our debt cleaned up and pushed off to have almost equal maturities over the next 4, 5 years.

We're really happy about that. I've been pushing that for a while.

We will have a bunch of availability under our line of credit once it's done to, over $100 million, it'll help us Actually, most important thing that it'll probably help us with is that it'll be able to tell, a potential investors that, it will tell them that, "Look, we have cash. We're able to get a deal done."

If they're worried about our growth, besides looking at our previous history where we've been growing nicely year over year, they'd be able to say, "Okay, they have the cash to be able to grow." Want to try to get rid of all these impediments so that the stock will have less less pressure to to not to not improve.

Slide 13 has become my favorite slide. This just shows how diversified we are by state, where the largest concentration is Indiana, which is our best state, which is good good situation to be in.

Everybody else is in the is in the low double digits, and you see it's pretty evenly dispersed throughout the states and by by consultants in in the states. This is good.

Hopefully hopefully this is the year we'll add maybe 1 or 2 more states, and that'll be that'll be great, and we'll continue to diversify this pie graph. Lastly for me, slide 14, this just shows this just shows you I'm color-blind, but I know that basically what we do has been where we bring in regional operators, and the colors should indicate that, through all of our operators and and portfolios, we're growing, and we're staying in, little pockets of each state, and hopefully that'll continue.

Things are going great. The bottom bottom bottom pie graph just continues to drive home the point of how we're the pure-play SNF healthcare REIT, and we're going to continue to stay the same way that we are.

Okay. With that and with that, I'll hand it back to the operator for any questions.

I want to thank everybody again for for joining us today, and we'll answer whatever questions that anybody has.

Hey, good morning, everyone. Great quarter.

If I could ask a sort of mathematical question first: the EBITDARM with an M coverage of 2.07 times, what does that equate to on a DAR basis in your mind?

One of you guys want to answer that, or you want me to answer that?

I could get you that in 1 second. Do you want to go to the next question?

I'll get that for you.

Sure. Another mathematical one, and then I got a bigger picture one for Moishe.

With the very attractive payout ratio of 47%, what does that equate to from a free cash flow available to you after dividend, which is 0 cost of capital essentially. Where do you see that sort of growing to over the course of time?

What are the pressures on you to have to raise the dividend to maintain some sort of REIT standard as it relates to dividend payout?

The number is right around $40 million after everything's said and done that we are stockpiling. The pressure based on REIT rules, we're at about 100% of distribution, we have room if we wanted to hold back.

As you make more money, we're trying to build up a following in the marketplace that says, "Okay, we could trust these guys that every year they're the same or more." We want to have an annual increase every year.

The bigger fights in the board meetings have been how much the increase should be, whether it be 1 cent, 2 cent, or more. Again, I'm actually the one who's pushing not to go crazy on the dividend from the point of view of because if God forbid we're not able to meet it one time, I don't want to be erratic and then lower it.

I want to be able to always be relied upon that you'll know that the dividend, if you're investing in our company, you know you're going to get at least this or more going forward annually. That's what I've been protective of, and so far we've been doing it exactly that way for 4 years at this point almost, I think.

It's been good, and so that 40 equates to being able to buy easily $80 million, and whatever else we need to supplement with, we could supplement. Since we're paying down a bunch of debt every year, we could draw on the debt to keep our cuz our leverage stay below 50, right around 50%, and we could then still draw on those lines and ratchet that back up to 50 and draw on that to be able to close deals.

I think I answered. Good to hear your voice, Rich.

Yeah. Jeff, you got an answer for the DAR?

Yes. Our EBITDAR coverage is 1.6.

1.6, okay. Then last for me, Moishe, the news out there today on Medicare Advantage sort of flat for next year, wondering what your exposure is to MA in the portfolio and what concerns you might have that fee-for-service Medicare to the extent you have any major exposure is kind of a risk to the industry if not necessarily directly at you?

Thanks.

Yeah. That's a good question.

In talking about context of Strawberry, we don't have any shop in our portfolio. We don't have any of our rents that are predicated on results of our tenants and our rent changing upper bound as bonus rent or not bonus rent.

We don't suffer from that at all, and the fact that the coverage is of 1.6, like Jeff said, is an EBITDAR, and I would have thought would have been a little bit lower, but actually I'm happy that's 1.6. 2.07 is the number we're actually looking at.

The point is that we don't have any of those risks in our portfolio, and because of the master leases, individual facilities that might be marginal, the overall portfolio of everyone, all our tenants are doing well. A lot of these things happen 1 year, and then the next year they'll raise the number for the increase, to make up for the year before.

I'm not too worried about it. Some of the other REITs that are out there, they're more connected to the operator as far as operator results, and they'll probably suffer a little bit.

In the grand scheme of things, it'll bounce back. This has been the way it's gone, not even administration to administration.

Year to year, it's the same administration that's gone, cuz then they realize the operators can't live. They rely on Medicare to help supplement the shortfall that Medicaid has, and as time has gone on, they've squeezed that the operator makes less.

The operators are okay with that, I guess, today where it is, but they work in tandem. When the nursing homes get squeezed too much from the government, where it's short, right, they go back and then the government fixes it.

I'm not too worried in the grand scheme of things. Again, we're in an industry we talked about the silver tsunami, we're in an industry where we're a necessary business that nursing homes need to take care of people, and people need to be taken care of.

Nursing homes are the least expensive model to be able to take care of people. We provide a role as the REIT to be the landlord and provide the capital so somebody that's an operator doesn't have to put the money in and buy the real estate.

We have a very simple model that's been working so effectively for so many years, and that should hopefully continue.

Okay. Great.

Thanks very much.

Thank you.

Thank you.

Thank you.

Good morning.

I wanted to ask Good morning. On the balance sheet for the 2026 debt maturing, where do you expect the new rates to be compared to the maturing debt?

We modeled out that the line of credit debt is going to come back in at SOFR 270 about, SOFR 265, 275, right around there, and that the bond debt's going to come in around 6 and a quarter. Assuming we pay off the conventional that today is sitting at 3 SOFR 3 3 and a quarter let's say as a blended, so that'll go from SOFR 3 3 and a quarter to, we'll save probably 50 basis points on that.

Was that $160 million or so, or whatever the number is. Then for the bond debt, we'll see a drop.

It's not going to be a big savings, but it'll extend the maturity out 4, 5 years and nice and clean. Also at this point, it'll be helpful for refinancing that because then I don't have to deal with the currency.

Right now, the dollar is weak and the shekel is strong, and so I need to kick that can down the road so that I'm not stuck using dollars to pay off shekel debt. Because in the grand scheme of things, the shekel will drop at some point and the dollar will strengthen.

It's inevitable. When that happens, we'll make a bunch of money on the currency exchange, too.

All right, that's great color. Second question on the 4Q financials in the G&A: was there any one-time items that you guys reported?

Then going forward, the run rate for AFFO per share, is 4Q the right number?

Greg, you want to answer that?

Sure. In the G&A, we did have I guess you could say a one-time item.

We had some additional payroll that came through in Q4 due to additional executive compensation. That was a little bit higher than what we were expecting to come in, I guess, from early on in the year.

However, I guess looking at the payroll going forward, we don't expect any further increases going into 2026. So

Basically, Gaurav, what the one-time event is I finally got a raise. I've been paid $300,000 a year for the last 15 years or something like that, and Compensation Committee decided to give me a raise to $700,000, which I think I'm still way underpaid.

Doesn't make a difference to me. The reality is I think that in fourth quarter, they did retroactively to 18 months, I think they recorded about a million dollar or million-one in one-time thing.

Our go-forward, we ended up the year with an AFFO of $1.30. We should beat that easily in '26.

All right. Thank you.

That's all I had.

Thank you. Have a good weekend.

Hi, guys. I wanted to ask first about the acquisition pipeline, if you've seen any changes in this pipeline, either in volume or valuations.

Is the only real potential impediment to continued growth through acquisitions really just access to capital, or any thoughts on kind of continued growth through acquisitions in your pipeline would be great.

I'll answer that and then Jeff will add to it. Give him a little time to think, cuz he's not as fast on his feet as I am.

The starting point is we've never had an impediment as far as cash. We are confident, and we know that debt markets and I don't want to sell equity at such a cheap price.

Reality is we keep track of what NAV is, and worst-case scenario, if we had to sell equity above NAV, it's still accretive. It doesn't feel right doing it, but point is we could always do that.

Over the years, we've stayed very disciplined, as you guys know, and lately the deals that I'm seeing personally are sale-leaseback deals. Seems to be a ton of that, and so this year most likely, which will be a little bit different, it's the same math, but a little bit different of an operator, where it's going to be the same operator in a spot that we could tell somebody historically, "This is what they're doing, and this is how they're operating.

This is how much money they're making." Then we're going to rebalance them to a 1 and 1/4, which is how we underwrite to.

Then as opposed to what we typically had done, not that we were adverse to sale-leasebacks, we typically were just buying and re-tenanting. In this case, it's going to be a little bit easier on one side, and the fact that you'll have people that have been the operators there for many years, that's what I'm seeing.

Jeff, you want to add to that?

I think Moishe is dead-on with his viewpoint. It's not an issue of access to capital.

The deals are coming in day in, day out. They're coming in from across the country.

As we've said in the past, we're in our 10 states. To add to our existing 10 states, it's very easy to grow the master lease, but finding a new state to go into, we need a sizable acquisition, and prices have gone up significantly.

Especially, I'd say last year is on the East Coast, this year we're seeing in the heartland of the country, you're seeing prices per bed go to their highest levels that they may have ever been. For us, with our disciplined approach, we're sticking to our guns, and if the deal makes sense, the deal makes sense.

Moishe has always said if a deal pencils out, we're going to close it. That's been the approach that we've been going at since I've been with Moishe for about 5 years now, and there hasn't been a deal we haven't closed.

We're always looking at different ways we can grow, but it all goes back to the basics: it's 10 cap acquisition, 1.25 coverage on day one. As we enter 2026, we're excited to see what's going to come our way.

The sale-leasebacks have been very front and center for us, and we look forward to seeing everyone next quarter, and we'll hopefully have some deals to report then as well.

Perfect. The other question that I had was really around occupancy, sitting here at 76%.

Just kind of curious your comfort level at that rate, and where you maybe see that moving, and impact to the model as occupancy maybe moves up or down?

I'll I'll answer that. We've talked about this before.

We we I know that there's there's, REIT analysts and folks that, look at a bunch of different, multi-family and other things across the board. In the healthcare space, the occupancy is not a great gauge of of how of how a portfolio is doing.

We're in states and I've talked about this before, like we're in Oklahoma. In Oklahoma, the average occupancy for the whole state is like 50%.

Rightfully or wrongfully, they wanted in Oklahoma that they should have a nursing home local for, like every county, as an example. Similar in Indiana, same way.

Indiana, the average occupancy is like 70% compared to 50 in Oklahoma. They did it because, they didn't want people that they had wanted to visit their mother in a nursing home that they should be driving an hour every day, to go visit Mom.

You have certain states. We're in states where in the Midwest that are that are known as low-occupancy places.

Now, Illinois, occupancy, averages like in the 90% and, or high 80s; same thing with Kentucky, 85%. Arkansas is a low number, and our operators are doing great there.

They're way beating the the trend and the state average. Indiana is right around right around how Indiana runs is how our maybe a little bit lower actually and our and our tenants' operations.

That being said, our and again our revenue is not based on on on, because in our case, our our we're showing 100% occupied because every building that we have has been leased out, and we get paid a rent, no matter how how how full they are. That's just the color I just wanted to provide you.

I don't I don't know if that helps you or hurts you, but that's, we we expect our portfolio is is now probably probably right around or, the same or higher than it was before COVID. It's taken a bunch of years to recover, and and we're okay with it.

We're we're really looking more at rent coverage more than the occupancy of the tenant.

I would add that as we're underwriting the portfolios, their occupancy may have been in the 60s, and now 4 or 5 years later, their occupancy's gone up, which is ultimately helping their bottom line, giving higher rent coverage. As Moishe is saying, in other I'd say verticals in real estate, net lease, multi-family, 100% is very important.

In this particular case, it's a little less important. It's more just it goes down to the operations.

It sounds like that the big thing to look at is really the rent collected at 100%, and if you can continue to do that even at occupancy in some states that's as low as 50%.

Yes.

Yeah. Because when we buy it, we're not buying it off of what could be, we're buying it off of today, where does the deal play out as far as coverage.

I guess that's the difference between us and maybe multi-family, where multi-family, they want to charge market rents, and they're assuming something, and they're giving a vacancy rate of 5% or something, and then they're buying off of that, and then they have to build into that. We're not buying into that.

We're charging the rent that's a mathematical formula off of what we're paying, and we're praying every day that our tenants do great and raise occupancy because the more coverage they have, the more certainty we have we'll get our rent. The more certainty we have that we're going to get our rent, the more certain we are that we can pay a dividend and buy more assets, and the more we do that, the more we know that we're going to make more money.

Wash, rinse, repeat, wash, rinse, repeat, and keep doing it, and that's been what we've done, and that's been effective and successful, and we want to keep doing that.

Excellent. I know from your presentation it seems like the demographic trends that you guys call out gives us a long runway before we need to really worry about occupancy dropping off because of just demographic trends and aging out.

The transcript's not going to catch the fact that all three of us started bobbing our head, "Yeah, exactly. Exactly what you just said."

I was going to use silver tsunami to say.

Reality is if you're really a prognosticator, right, our tenants should, as long as the government doesn't decide to start being anti-geriatric folks, there is absolutely no reason why our tenants won't have coverages way in excess of 2, 3, 4 times because 10 years from now, we're still making our 10 cap return with annual inflationary increases, and they're going to be making outside of what cost of the work is, but the cost of occupancy to be able to have the space to be able to run the nursing home, right, that's going to stay relatively flat other than small inflationary increases, but they should have their occupancy go up through the roof, certainly in bigger cities. Now, it happens to be that building is relatively, well, that's maybe a bad example.

Like Elkhart County, place is full. The other places where they're running 60, 70, 80%, or 50 in Oklahoma, that number ratchets up to 70, 80, 90%, our coverages are going to be through the roof.

That's really what we want. We want the country to have nursing homes that take care of the residents, and they're able to take care of the residents when they make money.

For them to make money, they need a landlord that's not too onerous, buys properties effectively at the right pricing and gives them a rent that they could live with. That's the model we have.

Excellent. That's helpful.

Thank you, guys.

You're welcome.

I'd like to thank everyone for joining us on this call. We appreciate you joining us, we appreciate your support.

If anybody has any questions or would like to reach out, you can send us an email, [email protected], and we look forward to seeing you again next quarter. Have a great weekend.

Thank you.

Thank you.