Strawberry Fields REIT, Inc. Leases Disclosure
NOTE 6. Leases
As of December 31, 2025 and 2024, the Company had leased 133 properties and 114 properties, respectively, to tenant/operators in the states of Arkansas, Illinois, Indiana, Kansas, Kentucky, Missouri, Ohio, Oklahoma, Tennessee and Texas. As of December 31, 2025 and 2024, all of the Company’s healthcare facilities were leased. Most of these facilities are leased on a triple-net basis, meaning that the lessee (i.e., operator of the facility) is obligated under the lease for all expenses of the property in respect to insurance, taxes and property maintenance, as well as the lease payments.
The following table provides additional information regarding the properties owned/leased for the periods indicated:
| December 31, | ||||||||
| 2025 | 2024 | |||||||
| Cumulative number of properties | 133 | 114 | ||||||
| Cumulative number of operational beds | 15,602 | 14,186 | ||||||
The following table provides additional information regarding the properties/facilities leased by the Company as of December 31, 2025:
| State | Number of Operational Beds/Units | Owned by Company | Leased by Company | Total | ||||||||||||
| Illinois | 4,226 | 20 | 20 | |||||||||||||
| Indiana | 3,404 | 35 | 1 | 36 | ||||||||||||
| Ohio | 238 | 4 | 4 | |||||||||||||
| Tennessee | 1,412 | 15 | 15 | |||||||||||||
| Kentucky | 1,163 | 10 | 10 | |||||||||||||
| Arkansas | 1,568 | 13 | 13 | |||||||||||||
| Kansas | 354 | 6 | 6 | |||||||||||||
| Missouri | 1,921 | 18 | 18 | |||||||||||||
| Oklahoma | 477 | 5 | 5 | |||||||||||||
| Texas | 839 | 6 | 6 | |||||||||||||
| Total properties | 15,602 | 132 | 1 | 133 | ||||||||||||
| Facility Type | ||||||||||||||||
| Skilled Nursing Facilities | 15,195 | 130 | 1 | 131 | ||||||||||||
| Long-Term Acute Care Hospitals | 63 | 2 | 2 | |||||||||||||
| Assisted Living Facility | 344 | 10 | 10 | |||||||||||||
| Total facilities | 15,602 | 142 | 1 | 143 | ||||||||||||
As of December 31, 2025, total future minimum rental revenues for the Company’s tenants are as follows:
| Year | Amount | |||
| (Amounts in $000’s) | ||||
| 2026 | $ | 134,750 | ||
| 2027 | 138,139 | |||
| 2028 | 136,368 | |||
| 2029 | 130,572 | |||
| 2030 | 131,587 | |||
| Thereafter | 388,668 | |||
| Total | $ | 1,060,084 | ||
STRAWBERRY FIELDS REIT, INC. and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 6. Leases (cont.)
The following table provides summary information regarding the number of operational beds associated with a property leased by the Company and subleased to third-party operators:
| December 31, | ||||||||
| 2025 | 2024 | |||||||
| Number of facilities leased and subleased to third-parties | 1 | 1 | ||||||
| Number of operational beds | 68 | 68 | ||||||
Right of use assets and operating lease liabilities are disclosed as separate line items in the consolidated balance sheets and are valued based on the present value of the future minimum lease payments at lease commencement. As the Company’s leases do not provide an implicit rate, the Company used its incremental borrowing rate based on the information available at the adoption date in determining the present value of future payments. Lease expense is recognized on a straight-line basis over the lease term. The Company’s operating lease obligation is for one skilled nursing facility. The lease expires on March 1, 2028 and has two five-year renewal options. The lease is a triple net lease, which requires the Company to pay real and personal property taxes, insurance expenses and all capital improvements. The Company subleases the building as part of the Indiana master lease. Based on the sublease with the Company’s tenant, the tenant is required to pay real and personal property taxes, insurance expenses and all capital improvements.
The components of lease expense and other lease information are as follows (dollars in thousands):
| Years ended December 31, | ||||||||
| 2025 | 2024 | |||||||
| Operating lease cost | $ | 397 | $ | 637 | ||||
| As of December 31, | ||||||||
| 2025 | 2024 | |||||||
| Operating lease right of use asset | $ | 851 | $ | 1,204 | ||||
| Operating lease liability | $ | 851 | $ | 1,204 | ||||
| Weighted average remaining lease term-operating leases (in years) | 2.19 | 3.25 | ||||||
| Weighted average discount rate | 4.1 | % | 4.1 | % | ||||
Future minimum operating lease payments under non-cancellable leases as of December 31, 2025, reconciled to the Company’s operating lease liability presented on the consolidated balance sheets:
| (Amounts
in $000s) | ||||
| 2026 | $ | 397 | ||
| 2027 | 397 | |||
| 2028 | 100 | |||
| Total | $ | 894 | ||
| Less Interest | (43 | ) | ||
| Total operating lease liability | $ | 851 |
Other Properties leased by the Company
The Company, through one of its subsidiaries, leases its office spaces from a related party. Rental expense under the leases for the year ended December 31, 2025 and 2024, was $218,000 and $214,000 , respectively.
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 Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.