Strawberry Fields REIT, Inc. Fair Value Disclosure
NOTE 13. Fair Value of Financial Instruments
The Company is required to disclose the fair value of financials instruments for which it is practicable to estimate that value. The fair value of short-term financial instruments such as cash and cash equivalents, restricted cash, accounts payable and accrued expenses approximate their carrying value on the consolidated balance sheets due to their short-term nature. The Company’s foreclosed real estate is recorded at fair value on a non-recurring basis and is included in real estate investments on the consolidated balance sheets. Estimates of fair value are determined based on a variety of information, including the use of available appraisals, estimates of market values by licensed appraisers or local real estate brokers and knowledge and experience of management. The fair values of the Company’s remaining financial instruments that are not reported at fair value on the consolidated balance sheets are reported below:
| December 31, | ||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||
| (amounts in $000s) | Level | Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||||
| Bonds, Note payable, and other debt | 3 | $ | 794,652 | $ | 802,800 | $ | 673,935 | $ | 675,941 | |||||||||||
| Notes receivable | 3 | $ | 20,821 | $ | 20,462 | $ | 16,585 | $ | 16,488 | |||||||||||
The fair value of the bonds, note payable, other debt, and notes receivable are estimated using a discounted cash flow analysis.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 19, 2026 | Showing above |
| 2024 | Mar 13, 2025 | |
| 2023 | Mar 19, 2024 | |
| 2022 | Mar 27, 2023 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.