Strawberry Fields REIT, Inc. Goodwill & Intangibles Disclosure
NOTE 5. Intangible Assets and Goodwill
Intangible assets consist of the following goodwill, Certificate of Need (“CON”) licenses and lease rights:
| Goodwill including CON Licenses | Lease Rights | Total | ||||||||||
| (Amounts in $000’s) | ||||||||||||
| Balances, December 31, 2023 | ||||||||||||
| Gross | $ | 1,323 | $ | 54,577 | $ | 55,900 | ||||||
| Accumulated amortization | $ | $ | (47,296 | ) | $ | (47,296 | ) | |||||
| Net carrying amount | $ | 1,323 | $ | 7,281 | $ | 8,604 | ||||||
| Acquisition of lease rights | $ | $ | 24,000 | $ | 24,000 | |||||||
| Amortization for the year ended December 31, 2024 | $ | $ | (4,657 | ) | $ | (4,657 | ) | |||||
| Balances, December 31, 2024 | ||||||||||||
| Gross | $ | 1,323 | $ | 78,577 | $ | 79,900 | ||||||
| Accumulated amortization | $ | $ | (51,953 | ) | $ | (51,953 | ) | |||||
| Net carrying amount | $ | 1,323 | $ | 26,624 | $ | 27,947 | ||||||
| Lease amendment | $ | $ | 50,880 | $ | 50,880 | |||||||
| Amortization for the year ended December 31, 2025 | $ | $ | (10,475 | ) | $ | (10,475 | ) | |||||
| Balances, December 31, 2025 | ||||||||||||
| Gross | $ | 1,323 | $ | 129,457 | $ | 130,780 | ||||||
| Accumulated amortization | $ | $ | (62,428 | ) | $ | (62,428 | ) | |||||
| Net carrying amount | $ | 1,323 | $ | 67,029 | $ | 68,352 | ||||||
Estimated amortization expense for all finite-lived intangible assets for each of the future years ending December 31, is as follows:
| Amortization of Lease Rights | ||||
| (Amounts in $000’s) | ||||
| 2026 | $ | 8,175 | ||
| 2027 | 7,949 | |||
| 2028 | 7,564 | |||
| 2029 | 7,488 | |||
| 2030 | 7,488 | |||
| Thereafter | 28,365 | |||
| Total | $ | 67,029 | ||
STRAWBERRY FIELDS REIT, INC. and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 19, 2026 | Showing above |
| 2024 | Mar 13, 2025 | |
| 2023 | Mar 19, 2024 | |
| 2022 | Mar 27, 2023 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.