Reported Late Thursday March 9, Strawberry Fields REIT Announces 2022 Year-End Operating Results; AFFO $51.1M; Net Income $16.4M; GAAP EPS $0.31
Correction by Source: Strawberry Fields REIT Announces 2022 Year-End Operating Results
The dividend will be paid on March 31, 2023 to common shareholders of record as of the close of business on March 20, 2023 (instead of March 10, 2023).
SOUTH BEND, IN / ACCESSWIRE / March 9, 2023 / Strawberry Fields REIT, Inc. (NYSE:STRW) (the "Company") reported today its operating results for the year ended December 31, 2022.
Financial Highlights
For the year ended December 31, 2022, and December 31, 2021:
- FFO was $45.0 million and $32.1 million, respectively.
- AFFO was $51.1 million and $43.9 million, respectively.
- Net income was $16.4 million and $8.4 million, respectively.
- Rental income received was $82.2 million and $77.7 million, respectively.
Moishe Gubin, Chairman & CEO noted: "We are excited to close another year with strong earnings. We look forward to continuing to grow the Company in 2023 and executing our growth strategy in a controlled manner, as we have over the last two decades. We are also thankful to the New York Stock Exchange for welcoming us to their trading platform and look forward to seeing the benefits of being listed at this storied financial institution."
Recent Acquisitions
On January 3, 2023, the Company acquired a property located in Kentucky for a total cost of $6.0 million including finder fees and leasehold improvements. This property contains a skilled nursing facility with aggregate of 120 licensed beds. The lease has an initial term of 10 years, with two extension options of five years each. The initial annualized base rent is $600,000, which is subject to an annual increase of approximately 3%.
NYSE American Listing
On February 22, 2023, the Company's common stock commenced trading on the NYSE American exchange. The Company's stock symbol remains the same ("STRW").
Dividend
On March 6, 2023, our Board of Directors declared a cash dividend of $0.11 per share. The dividend will be paid on March 31, 2023 to common shareholders of record as of the close of business on March 20, 2023.
Annual Meeting
The Company's 2023 Annual Meeting of Stockholders will be held on Tuesday, May 16, 2023, at 10:00 a.m. local time. Stockholders of record as of the close of business on Monday, April 6, 2023 will be entitled to receive notice of and to participate at the 2023 Annual Meeting of Stockholders. The meeting will be held at the corporate offices of Infinity Healthcare Management located at 2477 E. Commercial Dr. Ft. Lauderdale FL 23308.
2022 Annual Results
Rental revenues: Rental revenues during 2022 increased by $5.5 million or 6.3% compared to fiscal year 2021 due to the six new properties acquired in August of 2021. This increase was offset by a one-time loss of $1.1 million in the second quarter of 2022 due to the write-offs of straight-line rent receivables related to certain defaulted leases. Additionally, revenue was increased by $1.9 million due to additional property taxes being reimbursed by the tenants.
Depreciation and Amortization: Increase in depreciation of $1.07 million or 4.4% from fiscal year 2021 to fiscal year 2022 is primarily due to $64.1 million of new real estate investments in the third quarter of 2021.
General and Administrative Expense: Decrease in general and administrative expenses of $0.3 million or 4.5% during fiscal year 2022 compared to fiscal year 2021 is primarily due to no stock-based compensation expense in 2022. In 2021, $250,000 of stock-based compensation was recognized.
Property and other Taxes: The increase in property taxes of $2.5 million or 23.6% during fiscal year 2022 compared to fiscal year 2021 is primarily due to increases in real estate taxes on gross leased properties and Tennessee franchise taxes paid in 2022.
(Credit) Provision for Doubtful Accounts: During 2022, the Company recognized $5.6 million in income from the successful foreclosure of mortgages held by the Company on properties located in Massachusetts with respect to loans written off on December 31, 2021. The decrease in the provision for doubtful accounts of $10.8 million is primarily related to this recovery.
Interest expense, net: The decrease in interest expense of $0.8 million or 3.6% from Fiscal year 2021 to fiscal year 2022 is primarily related to lower amount of bond principal and decline in total debt.
Gain from Sale of Real Estate Investments: There were no gains from the sale of real estate during 2022 because there were no asset dispositions during this year.
Foreign Currency Transaction Loss: Our bond indebtedness is denominated in NIS. As a result, we are subject to potential foreign currency transaction loss due to changes in the value of the U.S. dollar relative to the New Israel Shekel. In 2022, we recorded a foreign currency transaction loss of $10.9 million in connection with the repayment of the Series B Bonds in 2022
Net Income: The increase in net income from $8.4 million during the year ended December 31, 2021 to $16.4 million in the year ended December 31, 2022 is mainly due to increases in rental revenue (net of increase in Real Estate Taxes) and recoveries of provisions made during fiscal year 2021 offset by the increase in foreign currency transaction losses of $2.2 million, and the absence of the $3.8 million in gain from sale of real estate investments recorded in 2021.