Strawberry Fields REIT Emphasizes Disciplined Expansion Strategy at NobleCon21

Strawberry Fields REIT recently attended NobleCon21, where it reinforced how key concepts of disciplined acquisition, predictable cash flow, and long-term stability form the core of its strategy. Speaking at the annual growth event hosted by Noble Capital Markets, Chairman and CEO Moishe Gubin described a methodical expansion approach that has allowed the company to build one of the larger skilled-nursing-focused real estate portfolios in the United States. The company concentrates on the acquisition, and leasing of skilled nursing and other healthcare-related properties. It does not develop or operate the facilities it owns. Instead, Strawberry Fields enters long-term triple-net leases with skilled operators, a structure that places operating costs, maintenance, taxes, and insurance obligations on the tenant while delivering predictable rental income to the REIT. Gubin noted that the company's portfolio has expanded significantly since 2015, when it spun out with 33 properties concentrated in Indiana and Illinois. Strawberry Fields now holds long-term leasehold interests in 142 facilities and more than 15,500 licensed beds, representing roughly 1% of U.S. nursing home capacity. This growth aligns with a broader demographic trend: the U.S. elderly care market, valued at $49.29 billion in 2024, is projected to nearly double to $98.19B by 2032. While the company has grown its geographic footprint, which today spans Indiana, Illinois, Arkansas, Tennessee, Kansas, Kentucky, Missouri, Ohio, Oklahoma, and Texas, Gubin emphasized that expansion has been steady rather than hurried. He described reviewing roughly 300 potential acquisitions each year, submitting offers on a fraction, and ultimately closing five to ten properties annually. According to Gubin, the limiting factor is discipline, not access to capital. A notable feature of the company's approach is the use of master leases by geography. Rather than lease each building individually, Strawberry Fields groups properties into larger portfolios for one or two operators in each state. Gubin explained that this reduces risk: tenants cannot "cherry-pick" preferred facilities, and the performance of the portfolio as a whole supports rent coverage. This structure has contributed to the company's record of collecting 100% of rents for seven to eight consecutive years. The company's leases typically begin at a 10% unlevered return, with 3% annual increases. The company targets an effective, levered, return of around 17% over time. Because rent levels are fixed rather than indexed to operator performance, rental income remains consistent regardless of operational variability at the tenant level. At NobleCon21, Gubin reiterated that the company evaluates each property "as if we were the operator," even though it remains strictly a landlord. He stressed that integrity, operational experience, and financial stability are the criteria he considers when selecting tenants. These tenant relationships often extend beyond formal asset management, with Gubin himself maintaining regular direct communication.