Strawberry Fields REIT released its third quarter results, and it featured some good and could-be-better news. First, to the positive news, the REIT collected 100% of its contractual rents during quarter three, something other REITs have not been so lucky to experience. Revenues did increase, however, NOI decreased year over year from $9.3 million to $4.7 million for several reasons on the expense side.
First, general and administrative expenses increased by 113.7%, mostly due to non-capitalized expenses related to the acquisition of Indiana senior care campuses. Next, interest expense increased by 14.6%, primarily because of additional debt service related to Series D Bonds and an increase in the floating rate on the company’s commercial bank loan facilities.
Though the acquisition was previously announced, the REIT completed its purchase of a 24-senior-care portfolio totaling $102 million, which is the largest acquisition to date for the company. The portfolio transaction included 19 skilled nursing facilities with 1,659 beds. The other five assets were assisted living communities comprising 193 beds, 29 of which are licensed. The REIT intends to engage in similar deals in both existing and new states to grow its portfolio.
