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Related Party Transactions and Economic Dependence
 12 Months Ended
Dec. 31, 2025
Related Party Transactions [Abstract]  
Related Party Transactions and Economic Dependence

NOTE 11. Related Party Transactions and Economic Dependence

 

The following entities and individuals are considered to be Related Parties:

 

Moishe Gubin Chairman of the Board
Michael Blisko Director
   
Operating entities See list below

 

Lease Agreements with Related Parties

 

As of December 31, 2025 and 2024, each of the Company’s facilities were leased and operated by separate tenants. Each tenant is an entity that leases the facility from one of the Company’s subsidiaries and operates the facility as a healthcare facility. The Company had 66 tenants out of 143 who were related parties as of December 31, 2025 and 66 tenants out of 124 who were related parties as of December 31, 2024. Most of the lease agreements are triple net leases.

 

On February 20, 2024, the Company entered into a new, replacement master lease for these properties. The tenant remains a group of tenants affiliated with two of the Company’s directors, Moishe Gubin and Michael Blisko. The new master lease has an initial term of ten years and is subject to 2 five-year extensions. The initial annual base rent for the properties is $14.5 million dollars and is subject to annual increases of 3%. In connection with the new master lease, the existing purchase option held by the tenant, which was granted by the prior owner of the properties, of $127.0 million was terminated. Consideration for the termination of the purchase option and inducement for entering into the new, replacement master lease was $18.0 million paid to the tenants. The $18.0 million payment was funded by cash and the proceeds from the additional Series D Bond issuance in February 2024.

 

On May 31, 2024, the Company acquired a property for $5.85 million comprised of a 68-bed skilled nursing facility and 10 bed assisted living facility near Georgetown, Indiana. The initial annual rent amount is $585 thousand and was leased to Infinity, a related party operator. The property was added to the Indiana Master Lease 1. The Company funded the acquisition utilizing cash from its consolidated balance sheets.

 

On September 25, 2024, the Company completed the acquisition of a property comprised of an 83-bed skilled nursing facility and 25 bed assisted living facility near Nashville, Tennessee. The acquisition was for $6.7 million and the Company funded the acquisition by assuming $2.8 million of existing debt on the facilities, $3.1 million in common stock to the seller, and transferring $0.8 million of other assets to the seller. The property was leased to Infinity, a related party operator. The property annual rent is $670 thousand and the property was added to the Tennessee Master Lease 1.

 

On October 11, 2024, the Company acquired an 86-bed skilled nursing facility in Indianapolis, Indiana. The acquisition was for $6.0 million and the Company funded the acquisition utilizing cash from its consolidated balance sheets. The facility was leased to Infinity, a related party operator and was added to the Indiana Master Lease 1.

 

 

STRAWBERRY FIELDS REIT, INC. and Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

NOTE 11. Related Party Transactions and Economic Dependence (cont.)

 

The following table sets forth details of the lease agreements in force between the Company and its subsidiaries and lessees that are related parties:

   

State    Tenant/
Operator		 

 

   

 

                       
        

Related Party Ownership

in Manager/Tenant/

Operator (1) (2)

                    
State  Lessor/
Company
Subsidiary		  Tenant/
Operator		  Moishe
Gubin/Gubin
Enterprises
LP		   Michael
Blisko/Blisko
Enterprises
LP		   Average
annual rent
over life of
lease		   Annual
Escalation		   % of
total
rent		   Lease
maturity		   Extension
options
   Master Lease Indiana 1                                    
IN  1020 West Vine Street Realty, LLC  The Waters of Princeton II, LLC   49.49%   50.51%  $1,224,215    3.00%   0.9%   2034   2 five year
IN  12803 Lenover Street Realty LLC  The Waters of Dillsboro – Ross Manor II LLC   49.49%   50.51%   1,585,037    3.00%   1.1%   2034   2 five year
IN  1350 North Todd Drive Realty, LLC  The Waters of Scottsburg II LLC   49.49%   50.51%   1,275,761    3.00%   0.9%   2034   2 five year
IN  1600 East Liberty Street Realty LLC  The Waters of Covington II LLC   49.49%   50.51%   1,533,491    3.00%   1.1%   2034   2 five year
IN  1601 Hospital Drive Realty LLC  The Waters of Greencastle II LLC   49.49%   50.51%   1,288,648    3.00%   0.9%   2034   2 five year
IN  1712 Leland Drive Realty, LLC  The Waters of Huntingburg II LLC   49.49%   50.51%   1,224,215    3.00%   0.9%   2034   2 five year
IN  2055 Heritage Drive Realty LLC  The Waters of Martinsville II LLC   49.49%   50.51%   1,327,307    3.00%   0.9%   2034   2 five year
IN  3895 South Keystone Avenue Realty LLC  The Waters of Indianapolis II LLC   49.49%   50.51%   1,043,805    3.00%   0.7%   2034   2 five year
IN  405 Rio Vista Lane Realty LLC  The Waters of Rising Sun II LLC   49.49%   50.51%   747,416    3.00%   0.5%   2034   2 five year
IN  950 Cross Avenue Realty LLC  The Waters of Clifty Falls II LLC   49.49%   50.51%   1,778,334    3.00%   1.2%   2034   2 five year
IN  958 East Highway 46 Realty LLC  The Waters of Batesville II LLC   49.49%   50.51%   1,108,237    3.00%   0.8%   2034   2 five year
IN  2400 Chateau Drive Realty, LLC  The Waters of Muncie II LLC   49.49%   50.51%   927,826    3.00%   0.7%   2034   2 five year
IN  The Big H2O LLC  The Waters of New Castle II LLC   49.49%   50.51%   850,507    3.00%   0.6%   2034   2 five year
IN  1316 North Tibbs Avenue Realty, LLC  Westpark A Waters Community, LLC   50.00%   50.00%   1,146,896    3.00%   0.8%   2034   2 five year
IN  1002 Sister Barbara Way LLC  The Waters of Georgetown LLC   49.49%   50.51%   1,005,145    3.00%   0.7%   2034   2 five year
IN  2640 Cold Spring Road, LLC  Alpha Home A Waters Community LLC   49.49%   50.51%   1,108,237    3.00%   0.8%   2034   2 five year

 

 

STRAWBERRY FIELDS REIT, INC. and Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

NOTE 11. Related Party Transactions and Economic Dependence (cont.)

 

Lease Agreements with Related Parties (cont.)

 

State    Tenant/
Operator		 

 

   

 

                       
        

Related Party Ownership

in Manager/Tenant/

Operator (1) (2)

                    
State  Lessor /
Company
Subsidiary		  Tenant/
Operator		  Moishe
Gubin/Gubin
Enterprises
LP		   Michael
Blisko/Blisko
Enterprises
LP		   Average
annual rent
over life of
lease		   Annual
Escalation		   % of
total
rent		   Lease
maturity		   Extension
options
   Master Lease Tennessee 1                                    
TN  115 Woodlawn Drive, LLC  Lakebridge, a Waters Community, LLC   50.00%   50.00%   1,026,061    3.00%   0.7%   2031   2 five year
TN  146 Buck Creek Road, LLC  The Waters of Roan Highlands, LLC   50.00%   50.00%   753,072    3.00%   0.5%   2031   2 five year
TN  704 5th Avenue East, LLC  The Waters of Springfield, LLC   50.00%   50.00%   621,284    3.00%   0.4%   2031   2 five year
TN  2501 River Road, LLC  The Waters of Cheatham, LLC   50.00%   50.00%   753,072    3.00%   0.5%   2031   2 five year
TN  202 Enon Springs Road East, LLC  The Waters of Smyrna, LLC   50.00%   50.00%   856,619    3.00%   0.6%   2031   2 five year
TN  140 Technology Lane, LLC  The Waters of Johnson City, LLC   50.00%   50.00%   790,726    3.00%   0.6%   2031   2 five year
TN  835 Union Street, LLC  The Waters of Shelbyville, LLC   50.00%   50.00%   903,686    3.00%   0.6%   2031   2 five year
TN  1340 North Grundy Quarles Highway  The Waters of Gainesboro, LLC   50.00%   50.00%   1,016,647    3.00%   0.7%   2031   2 five year
TN  100 Netherland Lane, LLC  The Waters of Kinsport, LLC   50.00%   50.00%   630,698    3.00%   0.4%   2031   2 five year
TN  2648 Sevierville Road, LLC  The Waters of Maryville, LLC   50.00%   50.00%   1,703,825    3.00%   1.2%   2031   2 five year
   Master Lease Tennessee 2                                    
TN  505 North Roan, LLC  Agape Rehabilitation & Nursing Center, A Water’s Community LLC   50.00%   50.00%   1,628,910    3.00%   1.1%   2031   2 five year
TN  14510 Highway 79, LLC  Waters of McKenzie, A Rehabilitation & Nursing Center, LLC   50.00%   50.00%   1,279,858    3.00%   0.9%   2031   2 five year
TN  6500 Kirby Gate Boulevard, LLC  Waters of Memphis, A Rehabilitation & Nursing Center, LLC   50.00%   50.00%   1,745,261    3.00%   1.2%   2031   2 five year
TN  978 Highway 11 South, LLC  Waters of Sweetwater, A Rehabilitation & Nursing Center, LLC   50.00%   50.00%   1,745,261    3.00%   1.2%   2031   2 five year
TN  2830 Highway 394, LLC  Waters of Bristol, A Rehabilitation & Nursing Center, LLC   50.00%   50.00%   2,327,014    3.00%   1.6%   2031   2 five year

 

 

STRAWBERRY FIELDS REIT, INC. and Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

NOTE 11. Related Party Transactions and Economic Dependence (cont.)

 

Lease Agreements with Related Parties (cont.)

 

State    Tenant/
Operator		 

 

   

 

                       
        

Related Party Ownership

in Manager/Tenant/

Operator (1) (2)

                    
State  Lessor/
Company
Subsidiary		  Tenant/
Operator		  Moishe
Gubin/Gubin
Enterprises
LP		  

Michael

Blisko/Blisko

Enterprises

LP

  

Average

annual rent

over life of

lease

  

Annual

Escalation

   % of total rent   Lease
maturity		  

Extension

options

   Master Lease Indiana 2                                    
IN  8400 Clearvista Place LLC  The Waters of Castleton SNF, LLC   50.00%   50.00%   1,023,207    3.00%   0.7%   2034   2 five year
IN  524 Anderson Road LLC  The Waters of Chesterfield SNF, LLC   50.00%   50.00%   538,530    3.00%   0.4%   2034   2 five year
IN  640 West Ellsworth Street LLC  The Waters of Columbia City SNF, LLC   50.00%   50.00%   753,942    3.00%   0.5%   2034   2 five year
IN  11563 West 300 South LLC  The Waters of Dunkirk SNF, LLC   50.00%   50.00%   412,873    3.00%   0.3%   2034   2 five year
IN  5544 East State Boulevard LLC  The Waters of Fort Wayne SNF, LLC   50.00%   50.00%   691,113    3.00%   0.5%   2034   2 five year
IN  548 South 100 West LLC  The Waters of Hartford City SNF, LLC   50.00%   50.00%   583,407    3.00%   0.4%   2034   2 five year
IN  2901 West 37th Avenue LLC  The Waters of Hobart SNF, LLC   50.00%   50.00%   987,305    3.00%   0.7%   2034   2 five year
IN  1500 Grant Street LLC  The Waters of Huntington SNF, LLC   50.00%   50.00%   762,917    3.00%   0.5%   2034   2 five year
IN  787 North Detroit Street LLC  The Waters of LaGrange SNF, LLC   50.00%   50.00%   897,550    3.00%   0.6%   2034   2 five year
IN  981 Beechwood Avenue LLC  The Waters of Middletown SNF, LLC   50.00%   50.00%   538,530    3.00%   0.4%   2034   2 five year
IN  317 Blair Pike LLC  The Waters of Peru SNF, LLC   50.00%   50.00%   1,166,815    3.00%   0.8%   2034   2 five year
IN  815 West Washington Street LLC  The Waters of Rockport SNF   50.00%   50.00%   538,530    3.00%   0.4%   2034   2 five year
IN  612 East 11th Street LLC  The Waters of Rushville SNF   50.00%   50.00%   

879,599

    3.00%   0.6%   2034   2 five year

 

 

STRAWBERRY FIELDS REIT, INC. and Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

NOTE 11. Related Party Transactions and Economic Dependence (cont.)

 

Lease Agreements with Related Parties (cont.)

 

State    Tenant/
Operator		 

 

   

 

                       
        

Related Party Ownership

in Manager/Tenant/

Operator (1) (2)

                    
State  Lessor/ Company Subsidiary  Tenant/ Operator  Moishe Gubin/Gubin Enterprises LP   Michael Blisko/Blisko Enterprises LP   Average annual rent over life of lease   Annual Escalation   % of total rent   Lease maturity  

Extension

options

IN  505 West Wolfe Street LLC  The Waters of Sullivan SNF   50.00%   50.00%   834,721    3.00%   0.6%   2034   2 five year
IN  500 East Pickwick Drive LLC  The Waters of Syracuse SNF   50.00%   50.00%   592,383    3.00%   0.4%   2034   2 five year
IN  300 Fairgrounds Road LLC  The Waters of Tipton SNF   50.00%   50.00%   1,346,325    3.00%   0.9%   2034   2 five year
IN  1900 Alber Street LLC  The Waters of Wabash SNF East   50.00%   50.00%   753,942    3.00%   0.5%   2034   2 five year
IN  1720 Alber Street LLC  The Waters of Wabash SNF West   50.00%   50.00%   394,922    3.00%   0.3%   2034   2 five year
IN  300 North Washington Street LLC  The Waters of Wakarusa SNF   50.00%   50.00%   1,193,741    3.00%   0.8%   2034   2 five year
IN  8400 Clearvista Place LLC  The Waters of Castleton ALF, LLC   50.00%   50.00%   484,677    3.00%   0.3%   2034   2 five year
IN  787 North Detroit Street LLC  The Waters of LaGrange ALF, LLC   50.00%   50.00%   152,583    3.00%   0.1%   2034   2 five year
IN  612 East 11th Street LLC  The Waters of Rushville ALF, LLC   50.00%   50.00%   260,289    3.00%   0.2%   2034   2 five year
IN  505 West Wolfe Street LLC  The Waters of Sullivan ALF, LLC   50.00%   50.00%   287,216    3.00%   0.2%   2034   2 five year
IN  300 North Washington Street LLC  The Waters of Wakarusa ALF, LLC   50.00%   50.00%   547,505    3.00%   0.4%   2034   2 five year

 

 

STRAWBERRY FIELDS REIT, INC. and Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

NOTE 11. Related Party Transactions and Economic Dependence (cont.)

 

Lease Agreements with Related Parties (cont.)

 

State    Tenant/
Operator		 

 

   

 

           Annual
Escalation		            
        

Related Party Ownership

in Manager/Tenant/

Operator (1) (2)

                    
State 

Lessor/

Company

Subsidiary

 

Manager/

Tenant/

Operator

 

Moishe

Gubin/Gubin

Enterprises

LP

  

Michael

Blisko/Blisko

Enterprises

LP

  

Average

Annual

rent

over life

of

lease

  

Annual

Escalation

  

% of

total

rent

  

Lease

maturity

  

Extension

options

IL  Ambassador Nursing Realty, LLC  Ambassador Nursing and Rehabilitation Center II, LLC   40.00%   40.00%   1,005,313    3.00%   0.7%   2031   2 five year
IL  Momence Meadows Realty, LLC  Momence Meadows Nursing and Rehabilitation Center, LLC   50.00%   50.00%   1,038,000    None    0.7%   2025   None
IL  Lincoln Park Holdings, LLC  Lakeview Rehabilitation and Nursing Center, LLC   40.00%   40.00%   1,260,000    None    0.9%   2031   None
IL  Continental Nursing Realty, LLC  Continental Nursing and Rehabilitation Center, LLC   40.00%   40.00%   1,575,348    None    1.1%   2031   None
IL  Westshire Nursing Realty, LLC  City View Multicare Center, LLC   50.00%   50.00%   

1,082,928

    3.00%   0.8%   2026   2 five year
IL  Belhaven Realty, LLC  Belhaven Nursing and Rehabilitation Center, LLC   50.00%   50.00%   2,134,570    3.00%   1.5%   2031   2 five year
IL  West Suburban Nursing Realty, LLC  West Suburban Nursing and Rehabilitation Center, LLC   40.00%   40.00%   1,961,604    None    1.4%   2027   None
IN  1585 Perry Worth Road, LLC  The Waters of Lebanon, LLC   50.00%   50.00%   116,678    3.00%   1.7%   2027   2 five year
IL  Niles Nursing Realty LLC  Niles Nursing & Rehabilitation Center LLC   50.00%   50.00%   2,409,998    3.00%   1.8%   2031   2 five year
IL  Midway Neurological and Rehabilitation Realty, LLC  Midway Neurological and Rehabilitation Center, LLC   50.00%   50.00%   2,547,713    3.00%   0.7%   2031   2 five year
IL   516 West Frech Street, LLC   Parker Rehab & Nursing Center, LLC     50.00 %     50.00 %     498,351       Varies between $12,000 and $24,000 annually       0.4 %     2031     None

 

 

STRAWBERRY FIELDS REIT, INC. and Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

NOTE 11. Related Party Transactions and Economic Dependence (cont.)

 

Lease Agreements with Related Parties (cont.)

 

(1) The interests of the two listed related parties are not held through any commonly owned holding companies. Mr. Gubin’s interests are held directly/indirectly by Gubin Enterprises LP. Mr. Blisko’s interests are held by Blisko Enterprises LP and New York Boys Management, LLC.
(2) Each of the tenants is a limited liability company. The percentages listed reflect the owners’ percentage ownership of the outstanding membership interests in each tenant.

 

Guarantees from Related Parties

 

As of December 31, 2025 and 2024, Mr. Gubin and Mr. Blisko were not parties to any guarantees of any debt of the Company and its subsidiaries.

 

Balances with Related Parties

   

       
   December 31, 
   2025   2024 
   (amounts in $000s) 
Straight-line rent receivable  $16,324   $17,801 
Tenant portion of replacement reserve  $8,759   $9,664 
Notes receivable  $5,823   $6,295 

 

Payments from Related Parties

   

       
   Years ended December 31, 
   2025   2024 
   (amounts in $000s) 
Rental income received from related parties  $70,020   $71,390 

 

 

STRAWBERRY FIELDS REIT, INC. and Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

NOTE 11. Related Party Transactions and Economic Dependence (cont.)

 

Other Related Party Relationships

 

On December 31, 2025 and 2024, the Company had approximately $0.8 million and $5.9 million, respectively, on deposit with OptimumBank. Mr. Gubin is the Chairman of the Board of OptimumBank.

 

On June 14, 2022, the Company purchased an $8 million note held by Infinity Healthcare Management, a company controlled by Mr. Blisko and Mr. Gubin. The note was issued by certain unaffiliated tenants. It bears interest at 7% per annum, payable annually. The principal amount of the note becomes payable 120 days after the date on which tenants are first able to exercise the purchase option for the properties contained in their lease. The purchase option becomes exercisable upon the Company’s ability to deliver fee simple title to the properties. If the tenants do not exercise the option within this period, then the outstanding balance of the note will thereafter be payable in thirty-six (36) equal monthly installments of principal and interest.