Strawberry Fields Not Getting Picked, As This REIT's Debt Load Could Be A Jam
Summarize this article with:
Albert Anthony1.56K FollowersFollow5ShareSavePlay(17min)CommentsSummaryStrawberry Fields REIT (STRW) receives a Hold rating in my initial coverage of this seniorcare/assisted living REIT. Positive notes include favorable macro environment due to supply/demand in this niche, as the population ages, and the company's own portfolio growth this year via acquisitions. AFFO growth trends, and EBITDA margins, have been impressive within its peer group. Some weaker areas to consider include the stock trading at a high premium to book value, high leverage risk within its peer group, and lack of longer-term dividend growth history. The risk of tenant concentration has also been addressed.
Getty Images Today's Stock: A Healthcare REIT Blooming Across America's Heartland No, it does not own strawberry farms, but rather a portfolio of healthcare and skilled nursing facilities across the US. Strawberry Fields REIT (STRW) is the focusThis article was written byAlbert Anthony1.56K FollowersFollowAlbert Anthony is the pen name of a Croatian-American business author who is a contributing analyst on investor platform & financial media site Seeking Alpha, where he has over +1K followers, & also writes for platforms like Investing dot com and is author of a new book on Amazon called Real Estate Investment Trusts (REITs): A Fundamental Analysis (2026 Edition).The author's background as a business information systems analyst also included the IT department at top 10 financial firm Charles Schwab, where he supported several enterprise applications and also the trading platform StreetSmart Edge. His data-driven, process-oriented background has served him well in launching his own boutique equities research firm, Albert Anthony & Company, a Texas-registered business which he manages 100% remotely on his own, and paved the way for his becoming a regular contributor to Seeking Alpha.Having grown up in the New York City area to a 1st generation Croatian family in the US, he also called home the Austin Texas area, as well as the growing EU market of Croatia where he participated in dozens of business & innovation conferences, trade shows, and panel discussions, and hosted an informational program for Online Live TV Croatia, covering business & innovation conferences and destinations.The author completed his B.A. in Political Science degree from Drew University, is certified in Microsoft Fundamentals, CompTIA Project+, and is currently in ongoing certification program via Corporate Finance Institute(CFI), focusing on Capital Markets & Securities Analyst (CMSA) and business intelligence/data analysis certifications, with an increased interest in streamlining the equities research process using business information tools, while delivering actionable insights to his readers.Besides appearing in financial media platforms, he is growing the Albert Anthony channel on YouTube (@author.albertanthony), where he talks about REITs, since he himself is an active investor in his own portfolio of REIT stocks.For any business email please use his official mail address: contact@albertanthony.usPlease note: The author does not write about non-publicly traded companies, small cap stocks, or startup CEOs, so any such mail received and pitches from PR agencies will be deleted.*Disclaimer: Albert Anthony and Albert Anthony & Co, as a US-based sole proprietorship registered as a trade name in Austin, Texas, are not registered financial advisors and do not provide personalized financial advisory to clients nor manage client funds but provide general markets commentary and research based on publicly-available data and our own analysis, and do not sell or market financial products and services, nor are compensated by any company for rating them. The author does not hold any material position in any stock he rates at the time of writing, unless otherwise disclosed. All investment is assumed to be at risk and readers are expected to do their due diligence beyond the scope of this author's commentary, agreeing to indemnify the author of any liability for potential investment losses.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Quick InsightsHow does STRW’s leverage and debt profile impact its investment case?STRW's D/E ratio of 54.45 far exceeds peers, with rising long-term debt and interest expenses, making leverage a significant risk that tempers its growth-driven upside.What are the key forward-looking growth drivers for STRW?Portfolio expansion, geographic diversity, and a projected +18.4% forward revenue growth position STRW to benefit from sector demand, though tenant concentration risks remain.Is STRW’s dividend yield sustainable given current payout and AFFO trends?Although AFFO growth has been steady, dividend coverage could be pressured in major downturns.Recommended For You