Strawberry Fields REIT Enters Into Agreement for Six Healthcare Facilities Located in Kansas
Strawberry Fields REIT (NYSE American:STRW) has signed a Purchase and Sale Agreement for six healthcare facilities in Kansas for $24 million. The portfolio includes five skilled nursing facilities and one assisted living facility, totaling 354 licensed beds. The properties will be leased to Advena Living on a triple-net basis for an initial 10-year term with two 5-year extension options. The lease will generate $2.4 million in annual rent with 3% yearly increases. The acquisition will be funded through working capital and is expected to close by year-end 2024, subject to closing conditions.
Strawberry Fields REIT (NYSE American:STRW) ha firmato un Contratto di Acquisto e Vendita per sei strutture sanitarie in Kansas per 24 milioni di dollari. Il portafoglio comprende cinque strutture di assistenza qualificata e una struttura per anziani, per un totale di 354 letti autorizzati. Le proprietà saranno affittate a Advena Living su base triple-net per un termine iniziale di 10 anni con due opzioni di proroga di 5 anni. L'affitto genererà 2,4 milioni di dollari di reddito annuale con aumenti annuali del 3%. L'acquisizione sarà finanziata tramite capitale circolante e si prevede che si chiuda entro la fine del 2024, soggetta a condizioni di chiusura.
Strawberry Fields REIT (NYSE American:STRW) ha firmado un Acuerdo de Compra y Venta para seis instalaciones de salud en Kansas por 24 millones de dólares. La cartera incluye cinco instalaciones de enfermería especializada y una instalación de vida asistida, con un total de 354 camas autorizadas. Las propiedades se arrendarán a Advena Living bajo una base de triple neto por un plazo inicial de 10 años con dos opciones de extensión de 5 años. El arrendamiento generará 2,4 millones de dólares en alquiler anual con aumentos del 3% cada año. La adquisición será financiada a través de capital de trabajo y se espera que se cierre a finales de 2024, sujeto a condiciones de cierre.
스트로베리 필드 리츠 (NYSE American:STRW)는 캔자스에 있는 6개의 의료 시설에 대해 2400만 달러에 매매 계약을 체결했습니다. 포트폴리오는 5개의 숙련된 간호 시설과 1개의 지원 생활 시설을 포함하며, 총 354개의 공인 침대를 보유하고 있습니다. 이들 자산은 Advena Living에 대해 10년의 초기 기간과 두 차례 5년 연장 옵션으로 트리플 넷 기준으로 임대될 것입니다. 임대는 연간 240만 달러의 임대료를 발생시키며, 매년 3%의 인상이 있습니다. 이번 인수는 운영 자본을 통해 자금이 조달될 예정이며, 2024년 말까지 거래가 완료될 것으로 예상됩니다. 단, 거래 조건이 충족되어야 합니다.
Strawberry Fields REIT (NYSE American:STRW) a signé un Contrat d'Achat et de Vente pour six établissements de santé au Kansas pour un montant de 24 millions de dollars. Le portefeuille comprend cinq établissements de soins qualifiés et un établissement d'aide à la vie, pour un total de 354 lits autorisés. Les propriétés seront louées à Advena Living sur une base de triple-net pour une durée initiale de 10 ans avec deux options de prolongation de 5 ans. Le bail générera un revenu locatif annuel de 2,4 millions de dollars avec des augmentations annuelles de 3%. L'acquisition sera financée par le capital de travail et devrait être finalisée d'ici fin 2024, sous réserve des conditions de clôture.
Strawberry Fields REIT (NYSE American:STRW) hat einen Kauf- und Verkaufsvertrag für sechs Gesundheitseinrichtungen in Kansas über 24 Millionen Dollar unterzeichnet. Das Portfolio umfasst fünf Fachpflegeeinrichtungen und eine betreute Wohneinrichtung mit insgesamt 354 lizenzierten Betten. Die Immobilien werden auf Basis eines Triple-Net-Leasings für eine anfängliche Laufzeit von 10 Jahren mit zwei 5-jährigen Verlängerungsoptionen an Advena Living vermietet. Der Mietvertrag wird jährliche Einnahmen von 2,4 Millionen Dollar mit jährlichen Steigerungen von 3% generieren. Die Akquisition wird über das Umlaufvermögen finanziert und soll bis Ende 2024 abgeschlossen sein, vorbehaltlich der Abschlussbedingungen.
- Acquisition adds $2.4 million in annual rental income
- Triple-net lease structure shifts operating expenses to tenant
- Built-in 3% annual rent escalators provide growing income stream
- No external financing needed due to use of working capital
- Significant cash outlay of $24 million reduces working capital
Insights
This acquisition marks a strategic expansion in Strawberry Fields REIT's healthcare portfolio, with a
The transaction's metrics are compelling: at roughly
The partnership with Advena Living, an established regional operator, mitigates operational risk. The 10-year initial term with two 5-year extension options provides long-term income visibility, important for REIT valuations. For a REIT with a market cap of about
The strategic value of this portfolio lies in its mix of five skilled nursing facilities and one assisted living facility in Kansas, creating operational synergies and diversification within the senior care spectrum. The Kansas market presents favorable demographics with an aging population and relatively lower operating costs compared to coastal markets.
The bed count of 354 indicates these are mid-sized facilities, typically more efficient to operate than smaller properties while maintaining quality care standards. The operator choice, Advena Living, is notable as they have established expertise in the Kansas healthcare market, which should facilitate smooth transitions and stable occupancy rates.
The triple-net lease structure effectively insulates Strawberry Fields from operational cost fluctuations in an environment where healthcare facilities face staffing challenges and rising labor costs. The
SOUTH BEND, IN / ACCESSWIRE / December 23, 2024 / (NYSE American:STRW) On December 20, 2024, Strawberry Fields REIT, Inc. (the "Company") entered into a Purchase and Sale Agreement with an unaffiliated seller with respect to six Healthcare Facilities located in Kansas (the "Facilities"). The purchase price for the Facilities is
The six facilities are comprised of five skilled nursing facilities and one assisted living facility with 354 licensed beds.
The facilities will be leased to Advena Living led by its founder Willie Novotny. The lease is for an initial 10-year period and includes two 5-year tenant options on a triple-net basis. Additionally, the lease will increase the Company's annual rents by
The Company plans to purchase the facilities utilizing the Company's current working capital.
The Company anticipates closing the acquisition before year-end; however, we can give no assurance that the closing will occur within this timeframe, or at all.
About Strawberry Fields REIT
Strawberry Fields REIT, Inc., is a self-administered real estate investment trust engaged in the ownership, acquisition, development and leasing of skilled nursing and certain other healthcare-related properties. The Company's portfolio includes 123 healthcare facilities with an aggregate of 14,000+ beds, located throughout the states of Arkansas, Illinois, Indiana, Kentucky, Michigan, Missouri, Ohio, Oklahoma, Tennessee and Texas. The 123 healthcare facilities comprise 112 skilled nursing facilities, nine assisted living facilities, and two long-term acute care hospitals.
Safe Harbor Statement
Certain statements in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Those forward-looking statements include all statements that are not historical statements of fact and those regarding our intent, belief or expectations, including, but not limited to, statements regarding: future financing plans, business strategies, growth prospects and operating and financial performance; expectations regarding the making of distributions and the payment of dividends; and compliance with and changes in governmental regulations.
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Forward-looking statements speak only as of the date of this press release. Except in the normal course of our public disclosure obligations, we expressly disclaim any obligation to release publicly any updates or revisions to any forward-looking statements to reflect any change in our expectations or any change in events, conditions or circumstances on which any statement is based.
Investor Relations:
Strawberry Fields REIT, Inc.
IR@sfreit.com
+1 (773) 747-4100 x422
SOURCE: Strawberry Fields REIT Inc.
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FAQ
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