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Real Estate Investments, net
 6 Months Ended
Jun. 30, 2025
Real Estate [Abstract]  
Real Estate Investments, net

NOTE 4. Real Estate Investments, net

 

Real estate investments consist of the following:

 

 

  

Estimated

Useful Lives

 

June 30,

2025

  

December 31,

2024

 
   (Years)  (Amounts in $000’s) 
Buildings and improvements  7-45  $716,669   $683,582 
Equipment and personal property  2-18   113,952    104,869 
Land  -   71,609    69,036 
Real estate investments, gross      902,230    857,487 
Less: accumulated depreciation      (265,806)   (248,429)
Real estate investments, net     $636,424   $609,058 

 

For the three-month periods ended June 30, 2025 and 2024, total depreciation expense was $8.7 million and $7.0 million, respectively. For the six-month periods ended June 30, 2025 and 2024, total depreciation expense was $17.4 million and $14.2 million, respectively.

 

 

STRAWBERRY FIELDS REIT, INC. and Subsidiaries

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

NOTE 4. Real Estate Investments, net (Cont.)

 

Acquisition of Properties

 

On January 1, 2025, the Company entered into a new master lease for 10 Kentucky properties formally part of the Landmark Master Lease. Base rent is $23.3 million a year and is subject to an increase based on CPI with a minimum increase of 2.50%. The initial lease term is 10 years with four 5-year extension options. Also, as part of the negotiation of the new Kentucky Master Lease, the Company entered into a 5 year note payable with the parent of the Landmark tenant for $50.9 million dollars, included in the note payable in the accompanying condensed consolidated balance sheets.

 

On January 2, 2025, the Company acquired 6 facilities consisting of 354 beds in Kansas. The acquisition was $24.0 million and the Company funded the acquisition utilizing the cash from the condensed consolidated balance sheets. The Company formed a new master lease for an initial 10-year period that included two 5-year extension options on a triple-net basis. Additionally, the lease will increase the Company’s annual rents by $2.4 million and is subject to 3% annual increases.

 

On March 31, 2025, the Company acquired a skilled nursing facility with 100 licensed beds near Oklahoma City, Oklahoma. The acquisition was $5.0 million and was funded utilizing cash from the condensed consolidated balance sheets. The initial term of the lease is 10 years and includes two 5-year extension options. Base rent for the property is $0.5 million dollars annually and is subject to 3% annual increases.

 

On April 4, 2025, the Company completed the acquisition for a skilled nursing facility with 112 licensed beds near Houston, Texas. The acquisition was for $11.5 million. Base rent for this property is $1.3 million dollars annually. The property was added to an existing master lease and is subject an annual base rate increase of 3%. The initial term is approximately 10 years and includes two 5 year extensions.