2023 Q2 Form 10-Q Financial Statement

#000149315223016826 Filed on May 15, 2023

View on sec.gov

Income Statement

Concept 2023 Q2 2023 Q1 2022 Q1
Revenue $24.31M $24.25M $22.96M
YoY Change 11.61% 5.61%
Cost Of Revenue $3.717M $3.718M $2.944M
YoY Change 38.85% 26.29%
Gross Profit $20.59M $20.53M $20.02M
YoY Change 7.8% 2.57%
Gross Profit Margin 84.71% 84.67% 87.18%
Selling, General & Admin $951.0K $1.462M $2.840M
YoY Change -23.61% -48.52%
% of Gross Profit 4.62% 7.12% 14.19%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $6.230M $6.231M $7.283M
YoY Change -4.51% -14.44%
% of Gross Profit 30.26% 30.35% 36.39%
Operating Expenses $11.79M $14.76M $10.25M
YoY Change 4.06% 43.9%
Operating Profit $12.52M $9.492M $9.761M
YoY Change 19.8% -2.76%
Interest Expense $5.851M $5.353M -$14.39M
YoY Change 14.52% -137.21%
% of Operating Profit 46.75% 56.39% -147.39%
Other Income/Expense, Net -$983.0K -$19.00K -$690.0K
YoY Change -97.25%
Pretax Income $5.682M $4.139M -$5.316M
YoY Change 6.44% -177.86%
Income Tax
% Of Pretax Income
Net Earnings $698.0K $495.0K -$5.316M
YoY Change 18.91% -109.31% -416.62%
Net Earnings / Revenue 2.87% 2.04% -23.15%
Basic Earnings Per Share $0.11 $0.08 -$0.10
Diluted Earnings Per Share $0.11 $0.08 -$96.79K
COMMON SHARES
Basic Shares Outstanding 6.357M shares 6.366M shares 5.850M shares
Diluted Shares Outstanding 6.366M shares 6.366M shares

Balance Sheet

Concept 2023 Q2 2023 Q1 2022 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $37.60M $32.40M $17.22M
YoY Change 292.4% 88.15%
Cash & Equivalents $37.60M $32.40M $17.22M
Short-Term Investments
Other Short-Term Assets
YoY Change
Inventory
Prepaid Expenses
Receivables $24.32M $24.03M $23.76M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $61.92M $56.42M $40.97M
YoY Change 89.44% 37.7%
LONG-TERM ASSETS
Property, Plant & Equipment $431.7M $438.0M $458.2M
YoY Change -4.4% -4.41%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $35.15M $26.19M $26.35M
YoY Change -11.06% -0.6%
Total Long-Term Assets $495.7M $493.1M $512.8M
YoY Change -5.03% -3.84%
TOTAL ASSETS
Total Short-Term Assets $61.92M $56.42M $40.97M
Total Long-Term Assets $495.7M $493.1M $512.8M
Total Assets $557.7M $549.6M $553.8M
YoY Change 0.54% -0.77%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $14.67M $10.88M $9.388M
YoY Change 8.63% 15.89%
Accrued Expenses $1.675M $1.755M $1.991M
YoY Change -12.62% -11.85%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $16.34M $12.64M $11.38M
YoY Change 5.99% 11.04%
LONG-TERM LIABILITIES
Long-Term Debt $478.6M $461.2M $486.8M
YoY Change 0.7% -5.25%
Other Long-Term Liabilities $10.64M $9.979M $10.85M
YoY Change 9.82% -8.06%
Total Long-Term Liabilities $489.2M $471.2M $497.6M
YoY Change 0.88% -5.31%
TOTAL LIABILITIES
Total Short-Term Liabilities $16.34M $12.64M $11.38M
Total Long-Term Liabilities $489.2M $471.2M $497.6M
Total Liabilities $505.6M $499.4M $550.5M
YoY Change 1.04% -9.27%
SHAREHOLDERS EQUITY
Retained Earnings $1.401M $1.403M
YoY Change 254.68%
Common Stock $0.00 $0.00
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $8.098M $7.858M $3.338M
YoY Change
Total Liabilities & Shareholders Equity $557.7M $549.6M $553.8M
YoY Change 0.54% -0.77%

Cashflow Statement

Concept 2023 Q2 2023 Q1 2022 Q1
OPERATING ACTIVITIES
Net Income $698.0K $495.0K -$5.316M
YoY Change 18.91% -109.31% -416.62%
Depreciation, Depletion And Amortization $6.230M $6.231M $7.283M
YoY Change -4.51% -14.44%
Cash From Operating Activities $15.58M $9.976M -$2.731M
YoY Change -24.89% -465.29%
INVESTING ACTIVITIES
Capital Expenditures $31.00K $6.000M
YoY Change
Acquisitions
YoY Change
Other Investing Activities $133.0K $1.477M $162.0K
YoY Change -101.71% 811.73%
Cash From Investing Activities $102.0K -$4.523M $162.0K
YoY Change -101.31% -2891.98%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -1.505M $1.769M -11.37M
YoY Change -81.52% -115.56%
NET CHANGE
Cash From Operating Activities 15.58M $9.976M -2.731M
Cash From Investing Activities 102.0K -$4.523M 162.0K
Cash From Financing Activities -1.505M $1.769M -11.37M
Net Change In Cash 14.17M $7.222M -13.94M
YoY Change 194.13% -151.82%
FREE CASH FLOW
Cash From Operating Activities $15.58M $9.976M -$2.731M
Capital Expenditures $31.00K $6.000M
Free Cash Flow $15.55M $3.976M
YoY Change

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CY2023Q1 us-gaap Increase Decrease In Other Current Assets
IncreaseDecreaseInOtherCurrentAssets
-21000 usd
CY2022Q1 us-gaap Increase Decrease In Other Current Assets
IncreaseDecreaseInOtherCurrentAssets
4261000 usd
CY2023Q1 us-gaap Operating Lease Right Of Use Asset Amortization Expense
OperatingLeaseRightOfUseAssetAmortizationExpense
78000 usd
CY2022Q1 us-gaap Operating Lease Right Of Use Asset Amortization Expense
OperatingLeaseRightOfUseAssetAmortizationExpense
73000 usd
CY2022Q1 us-gaap Foreign Currency Transaction Loss Before Tax
ForeignCurrencyTransactionLossBeforeTax
10100000 usd
CY2023Q1 STRW Gain Loss On Foreign Currency Translation Adjustments
GainLossOnForeignCurrencyTranslationAdjustments
449000 usd
CY2022Q1 STRW Gain Loss On Foreign Currency Translation Adjustments
GainLossOnForeignCurrencyTranslationAdjustments
458000 usd
CY2023Q1 us-gaap Increase Decrease In Receivables
IncreaseDecreaseInReceivables
491000 usd
CY2022Q1 us-gaap Increase Decrease In Receivables
IncreaseDecreaseInReceivables
494000 usd
CY2023Q1 us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
IncreaseDecreaseInAccountsPayableAndAccruedLiabilities
-3756000 usd
CY2022Q1 us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
IncreaseDecreaseInAccountsPayableAndAccruedLiabilities
-10808000 usd
CY2023Q1 us-gaap Operating Lease Payments
OperatingLeasePayments
78000 usd
CY2022Q1 us-gaap Operating Lease Payments
OperatingLeasePayments
73000 usd
CY2023Q1 us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
9976000 usd
CY2022Q1 us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
-2731000 usd
CY2023Q1 STRW Purchase Of Real Estate Investments
PurchaseOfRealEstateInvestments
-6000000 usd
CY2023Q1 us-gaap Proceeds From Collection Of Notes Receivable
ProceedsFromCollectionOfNotesReceivable
1477000 usd
CY2022Q1 us-gaap Proceeds From Collection Of Notes Receivable
ProceedsFromCollectionOfNotesReceivable
162000 usd
CY2023Q1 us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-4523000 usd
CY2022Q1 us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
162000 usd
CY2022Q1 us-gaap Proceeds From Issuance Of Senior Long Term Debt
ProceedsFromIssuanceOfSeniorLongTermDebt
104102000 usd
CY2023Q1 STRW Proceeds From Issuance Of Bonds
ProceedsFromIssuanceOfBonds
10389000 usd
CY2022Q1 us-gaap Repayments Of Debt
RepaymentsOfDebt
91768000 usd
CY2023Q1 us-gaap Repayments Of Senior Debt
RepaymentsOfSeniorDebt
2761000 usd
CY2022Q1 us-gaap Repayments Of Senior Debt
RepaymentsOfSeniorDebt
23702000 usd
CY2023Q1 STRW Partial Repayment Of Non Controlling Interest Redemption Liabilities
PartialRepaymentOfNonControllingInterestRedemptionLiabilities
160000 usd
CY2023Q1 STRW Payment Of Dividends
PaymentOfDividends
700000 usd
CY2023Q1 us-gaap Payments Of Dividends Minority Interest
PaymentsOfDividendsMinorityInterest
4999000 usd
CY2023Q1 us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
1769000 usd
CY2022Q1 us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
-11368000 usd
CY2023Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
7222000 usd
CY2022Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
-13937000 usd
CY2022Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
45704000 usd
CY2021Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
52128000 usd
CY2023Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
52926000 usd
CY2022Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
38191000 usd
CY2023Q1 us-gaap Interest Paid Net
InterestPaidNet
6078000 usd
CY2022Q1 us-gaap Interest Paid Net
InterestPaidNet
7723000 usd
CY2023Q1 STRW Foreign Currency Translation Adjustments
ForeignCurrencyTranslationAdjustments
2318000 usd
CY2022Q1 STRW Foreign Currency Translation Adjustments
ForeignCurrencyTranslationAdjustments
15074000 usd
CY2023Q1 us-gaap Nature Of Operations
NatureOfOperations
<p id="xdx_80B_eus-gaap--NatureOfOperations_zfkozge7XZvj" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE 1. <span id="xdx_82E_zWwQmCyulQ95">Business</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Overview</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>The Company</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">STRAWBERRY FIELDS REIT, Inc. (the “Company”) is a Maryland corporation formed in July 2019. The Company commenced operations on June 8, 2021. The Company conducts its business through a traditional UPREIT structure in which substantially all of its assets are owned by subsidiaries of Strawberry Fields Realty, LP, a Delaware limited partnership formed in July 2019 (the “Operating Partnership”). The Company is the general partner of the Operating Partnership.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company completed the formation transactions on June 8, 2021. In connection with the formation transaction, the Company, the Operating Partnership and Strawberry Fields REIT, LLC (the “Predecessor Company” or “Predecessor”) entered into a contribution agreement, pursuant to which the Predecessor Company contributed all of its assets to the Operating Partnership, and the Operating Partnership assumed all of its liabilities. In exchange, the Operating Partnership issued limited partnership interests designated as common units (the “OP units”) to the Predecessor Company, which immediately distributed them to its members and beneficial owners. The Company offered certain of the holders of these OP units the opportunity to exchange their OP units for shares of common stock of the Company on a one for one basis. The Company limited the number of OP units that could be exchanged by some of the holders so that such holders would not become beneficial owners of more than <span id="xdx_902_ecustom--OwnershipLimitationPercentage_iI_pid_dp_uPure_c20210608__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__custom--StrawberryFieldsRealtyLPMember_zgiRNu9POo7h" title="Beneficial ownership limitation percentage">9.8</span>% of the outstanding shares of the Company in violation of the ownership limitations set forth in the Company’s charter. Following the completion of the formation transactions, and a few other transactions, the Company owns approximately <span id="xdx_90B_eus-gaap--EquityMethodInvestmentOwnershipPercentage_iI_pid_dp_uPure_c20230331__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__custom--StrawberryFieldsRealtyLPMember__srt--RangeAxis__srt--MinimumMember_zLVnnfcII3M6" title="Equity method investment ownership percentage"><span id="xdx_902_eus-gaap--EquityMethodInvestmentOwnershipPercentage_iI_pid_dp_uPure_c20221231__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__custom--StrawberryFieldsRealtyLPMember__srt--RangeAxis__srt--MinimumMember_zpoHRrxFGtQ" title="Equity method investment ownership percentage">11.95</span></span> % of the outstanding OP units as of March 31, 2023 and December 31, 2022, respectively. The formation transactions were accounted for at historical cost.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As the sole general partner of the Operating Partnership, the Company has the exclusive power under the partnership agreement to manage and conduct the business affairs of the Operating Partnership, subject to certain limited approval and voting rights of the limited partners. The Company may cause the Operating Partnership to issue additional OP units in connection with property acquisitions, compensation or otherwise. The Company became a publicly traded entity on September 21, 2022.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company is engaged in the ownership, acquisition, financing and triple-net leasing of skilled nursing facilities and other post-acute healthcare properties. The Company’s portfolio consists of 80 healthcare properties with an aggregate of 10,351 licensed beds. The Company holds fee title to 79 of these properties and holds one property under a long-term lease. These properties are located in Arkansas, Illinois, Indiana, Kentucky, Michigan, Ohio, Oklahoma, Tennessee and Texas. The Company generates substantially all of its revenues by leasing its properties to tenants under long-term leases primarily on a triple-net basis, under which the tenant pays the cost of real estate taxes, insurance and other operating costs of the facility and capital expenditures. Each healthcare facility located at its properties is managed by a qualified operator with an experienced management team.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"/></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"/></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"/></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>STRAWBERRY FIELDS REIT, INC. and Subsidiaries</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE 1. Business (Cont.)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Interim Condensed Consolidated Financial Statements</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify">The accompanying unaudited, condensed consolidated financial statements of the Company have been prepared in accordance with GAAP for interim financial information, and the Securities and Exchange Commission (“SEC”) rules for interim financial reporting. Certain information and footnote disclosures normally included in the Condensed Consolidated financial statements prepared in accordance with GAAP have been omitted pursuant to such rules and regulations. However, in the opinion of management, the accompanying interim Condensed Consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the Company’s Condensed Consolidated financial position as of March 31, 2023, and the Condensed Consolidated results of operations and cash flows for the periods presented. The Condensed Consolidated results of operations for interim periods are not necessarily indicative of the results of operations to be expected for any subsequent interim period or for the fiscal year ending December 31, 2023.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Variable Interest Entity</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company consolidates the Operating Partnership, a variable interest entity (“VIE”) in which the Company is considered the primary beneficiary. The primary beneficiary is the entity that has (i) the power to direct the activities that most significantly impact the entity’s economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could be significant to the VIE.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Non-Controlling Interest</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">A non-controlling interest is defined as the portion of the equity in an entity not attributable, directly or indirectly, to the primary beneficiary. Non-controlling interests are required to be presented as a separate component of equity on a Condensed Consolidated balance sheet. Accordingly, the presentation of net income is modified to present the income attributed to controlling and non-controlling interests. The non-controlling interest on the Company’s Condensed Consolidated balance sheets represents OP units not held by the Company and represents approximately <span id="xdx_902_ecustom--NonControllingInterestOperatiingPercentage_pid_dp_uPure_c20230101__20230331_zxXiSsJYde4b" title="Non-controlling interest operating percentage."><span id="xdx_90E_ecustom--NonControllingInterestOperatiingPercentage_pid_dp_uPure_c20220101__20221231_z6T4P0ORCbtc" title="Non-controlling interest operatiing percentage.">88.05</span></span>% of the outstanding OP Units issued by the Operating Partnership as of March 31, 2023 and December 31, 2022, respectively. The holders of these OP units are entitled to share in cash distributions from the Operating Partnership in proportion to their percentage ownership of OP units. Net income is allocated to the non-controlling interest based on the weighted-average of OP units outstanding during the period.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Basis of Presentation</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company maintains its accounting records on an accrual basis in accordance with generally accepted accounting principles in the United States of America (“GAAP”).</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"/></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"/></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"/></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>STRAWBERRY FIELDS REIT, INC. and Subsidiaries</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
CY2023Q1 STRW Non Controlling Interest Operatiing Percentage
NonControllingInterestOperatiingPercentage
0.8805 pure
CY2022 STRW Non Controlling Interest Operatiing Percentage
NonControllingInterestOperatiingPercentage
0.8805 pure
CY2023Q1 us-gaap Use Of Estimates
UseOfEstimates
<p id="xdx_847_eus-gaap--UseOfEstimates_zRLDUDZRn4e4" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_864_zdvJOZhysTDi">Use of Estimates</span></i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify">Management is required to make estimates and assumptions in the preparation of the Condensed Consolidated financial statements in conformity with GAAP. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the Condensed Consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from management’s estimates.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
CY2023Q1 us-gaap Cash
Cash
49300000 usd
CY2022Q4 us-gaap Cash
Cash
40700000 usd
CY2023Q1 STRW Increase Decrease Rent Percentage
IncreaseDecreaseRentPercentage
0.010 pure
CY2023Q1 us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<p id="xdx_844_eus-gaap--ConcentrationRiskCreditRisk_za80JwfmU78c" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_86F_zFcdvGxVhZw6">Concentrations of Credit Risk</span></i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Financial instruments which potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, restricted cash and cash equivalents, notes receivable and operating leases on owned properties. These financial instruments are subject to the possibility of loss of carrying value as a result of the failure of other parties to perform according to their contractual obligations or changes in market prices which may make the instrument less valuable. Cash and cash equivalents, restricted cash and equivalents are held with various financial institutions. From time to time, these balances exceed the federally insured limits. These balances are maintained with high quality financial institutions which management believes limits the risk.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">With respect to notes receivable, the Company obtains various collateral and other protective rights, and continually monitors these rights, in order to reduce such possibilities of loss. In addition, the Company provides reserves for potential losses based upon management’s periodic review of our portfolio.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On March 31, 2023, the Company held four notes receivable with an outstanding balance of $<span id="xdx_90C_eus-gaap--ReceivablesNetCurrent_iI_pn5n6_c20230331_zPBRSh9ofHob" title="Notes receivable balance outstanding">17.9</span> million. The notes have maturities ranging from 2023 through 2046, and interest rates ranging from <span id="xdx_90C_eus-gaap--ReceivableWithImputedInterestEffectiveYieldInterestRate_pid_dp_uPure_c20230101__20230331__srt--RangeAxis__srt--MinimumMember_zZWGhTZORuil" title="Notes receivable interest rate">2</span>% to <span id="xdx_901_eus-gaap--ReceivableWithImputedInterestEffectiveYieldInterestRate_pid_dp_uPure_c20230101__20230331__srt--RangeAxis__srt--MaximumMember_zJ2XwxCpP7Y3" title="Notes receivable interest rate">10.25</span>%. One of the notes is collateralized by tenants’ accounts receivable. All other notes receivable are uncollateralized as of March 31, 2023. As of December 31, 2022, the Company held five notes receivable for a total amount of $<span id="xdx_908_eus-gaap--ReceivablesNetCurrent_iI_pn5n6_c20221231_znQBIQcbNNUg">19.4</span> million. All of these notes are paid monthly and are current.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
CY2023Q1 us-gaap Receivables Net Current
ReceivablesNetCurrent
17900000 usd
CY2022Q4 us-gaap Receivables Net Current
ReceivablesNetCurrent
19400000 usd
CY2023Q1 STRW Market Concentration Risk Description
MarketConcentrationRiskDescription
As of March 31, 2023 and December 31, 2022, the Company owned 79 and 78 properties, respectively, and leased 1 property in 9 states, with 20 properties or 25.0% of its total properties located in Illinois (which include 4,226 skilled nursing beds or 40.83% of the Company’s total beds) and 15 properties or 18.8% of its total properties in Indiana (which include 1,388 skilled nursing beds or 13.41% of the Company’s total beds). Since tenant revenue is primarily generated from Medicare and Medicaid, the operations of the Company are indirectly subject to the administrative directives, rules and regulations of federal and state regulatory agencies, including, but not limited to the Centers for Medicare & Medicaid Services, and the Department of Health and Aging in all states in which the Company operates
CY2023Q1 us-gaap Restricted Cash And Cash Equivalents At Carrying Value
RestrictedCashAndCashEquivalentsAtCarryingValue
20530000 usd
CY2022Q4 us-gaap Restricted Cash And Cash Equivalents At Carrying Value
RestrictedCashAndCashEquivalentsAtCarryingValue
25507000 usd
CY2023Q1 us-gaap Real Estate Investment Property At Cost
RealEstateInvestmentPropertyAtCost
635713000 usd
CY2022Q4 us-gaap Real Estate Investment Property At Cost
RealEstateInvestmentPropertyAtCost
633749000 usd
CY2023Q1 us-gaap Real Estate Investment Property Accumulated Depreciation
RealEstateInvestmentPropertyAccumulatedDepreciation
199484000 usd
CY2022Q4 us-gaap Real Estate Investment Property Accumulated Depreciation
RealEstateInvestmentPropertyAccumulatedDepreciation
194838000 usd
CY2023Q1 us-gaap Real Estate Investment Property Net
RealEstateInvestmentPropertyNet
436229000 usd
CY2022Q4 us-gaap Real Estate Investment Property Net
RealEstateInvestmentPropertyNet
438911000 usd
CY2023Q1 us-gaap Payments To Acquire Commercial Real Estate
PaymentsToAcquireCommercialRealEstate
6000000.0 usd
CY2023Q1 us-gaap Leasehold Improvements Gross
LeaseholdImprovementsGross
700000 usd
CY2023Q1 us-gaap Area Of Land
AreaOfLand
34824 sqft
CY2023Q1 us-gaap Lessee Operating Lease Term Of Contract
LesseeOperatingLeaseTermOfContract
P10Y
CY2023Q1 us-gaap Payments For Rent
PaymentsForRent
600000 usd
CY2021Q4 us-gaap Other Finite Lived Intangible Assets Gross
OtherFiniteLivedIntangibleAssetsGross
55900000 usd
CY2021Q4 us-gaap Finite Lived Intangible Assets Accumulated Amortization
FiniteLivedIntangibleAssetsAccumulatedAmortization
-41240000 usd
CY2021Q4 us-gaap Finite Lived Intangible Assets Net
FiniteLivedIntangibleAssetsNet
14660000 usd
CY2021Q4 STRW Other Finite Lived Intangible Assets Amortization
OtherFiniteLivedIntangibleAssetsAmortization
-757000 usd
CY2022Q1 us-gaap Other Finite Lived Intangible Assets Gross
OtherFiniteLivedIntangibleAssetsGross
55900000 usd
CY2022Q1 us-gaap Finite Lived Intangible Assets Accumulated Amortization
FiniteLivedIntangibleAssetsAccumulatedAmortization
-41997000 usd
CY2022Q1 us-gaap Finite Lived Intangible Assets Net
FiniteLivedIntangibleAssetsNet
13903000 usd
CY2022Q4 us-gaap Other Finite Lived Intangible Assets Gross
OtherFiniteLivedIntangibleAssetsGross
55900000 usd
CY2022Q4 us-gaap Finite Lived Intangible Assets Accumulated Amortization
FiniteLivedIntangibleAssetsAccumulatedAmortization
-44268000 usd
CY2022Q4 us-gaap Finite Lived Intangible Assets Net
FiniteLivedIntangibleAssetsNet
11632000 usd
CY2022Q4 STRW Other Finite Lived Intangible Assets Amortization
OtherFiniteLivedIntangibleAssetsAmortization
-757000 usd
CY2023Q1 us-gaap Other Finite Lived Intangible Assets Gross
OtherFiniteLivedIntangibleAssetsGross
55900000 usd
CY2023Q1 us-gaap Finite Lived Intangible Assets Accumulated Amortization
FiniteLivedIntangibleAssetsAccumulatedAmortization
-45025000 usd
CY2023Q1 us-gaap Finite Lived Intangible Assets Net
FiniteLivedIntangibleAssetsNet
10875000 usd
CY2023Q1 STRW Cumulative Number Of Properties
CumulativeNumberOfProperties
80 integer
CY2022Q4 STRW Cumulative Number Of Properties
CumulativeNumberOfProperties
79 integer
CY2023Q1 STRW Cumulative Number Of Facilities
CumulativeNumberOfFacilities
83 integer
CY2023Q1 STRW Cumulative Number Of Properties
CumulativeNumberOfProperties
80 integer
CY2022Q4 STRW Cumulative Number Of Facilities
CumulativeNumberOfFacilities
83 integer
CY2022Q4 STRW Cumulative Number Of Properties
CumulativeNumberOfProperties
79 integer
CY2023Q1 STRW Cumulative Number Of Operational Beds
CumulativeNumberOfOperationalBeds
10351 integer
CY2022Q4 STRW Cumulative Number Of Operational Beds
CumulativeNumberOfOperationalBeds
10332 integer
CY2023Q1 STRW Number Of Operational Units
NumberOfOperationalUnits
10351 integer
CY2023Q1 STRW Owned By Company Units
OwnedByCompanyUnits
82 integer
CY2023Q1 STRW Leased By Company Units
LeasedByCompanyUnits
1 integer
CY2023Q1 STRW Total Operational Units
TotalOperationalUnits
83 integer
CY2023Q1 STRW Number Of Operational Units
NumberOfOperationalUnits
10351 integer
CY2023Q1 STRW Owned By Company Units
OwnedByCompanyUnits
82 integer
CY2023Q1 STRW Leased By Company Units
LeasedByCompanyUnits
1 integer
CY2023Q1 STRW Total Operational Units
TotalOperationalUnits
83 integer
CY2023Q1 us-gaap Lessor Operating Lease Payments To Be Received Remainder Of Fiscal Year
LessorOperatingLeasePaymentsToBeReceivedRemainderOfFiscalYear
62658000 usd
CY2023Q1 us-gaap Lessor Operating Lease Payments To Be Received Next Twelve Months
LessorOperatingLeasePaymentsToBeReceivedNextTwelveMonths
84816000 usd
CY2023Q1 us-gaap Lessor Operating Lease Payments To Be Received Two Years
LessorOperatingLeasePaymentsToBeReceivedTwoYears
75152000 usd
CY2023Q1 us-gaap Lessor Operating Lease Payments To Be Received Three Years
LessorOperatingLeasePaymentsToBeReceivedThreeYears
56159000 usd
CY2023Q1 us-gaap Lessor Operating Lease Payments To Be Received Four Years
LessorOperatingLeasePaymentsToBeReceivedFourYears
56453000 usd
CY2023Q1 us-gaap Lessor Operating Lease Payments To Be Received Thereafter
LessorOperatingLeasePaymentsToBeReceivedThereafter
183789000 usd
CY2023Q1 us-gaap Lessor Operating Lease Payments To Be Received
LessorOperatingLeasePaymentsToBeReceived
519027000 usd
CY2023Q1 STRW Number Of Facilities Leased And Subleased To Thirdparties
NumberOfFacilitiesLeasedAndSubleasedToThirdparties
1000 integer
CY2022Q4 STRW Number Of Facilities Leased And Subleased To Thirdparties
NumberOfFacilitiesLeasedAndSubleasedToThirdparties
1000 integer
CY2023Q1 STRW Number Of Operational Beds
NumberOfOperationalBeds
68000 integer
CY2022Q4 STRW Number Of Operational Beds
NumberOfOperationalBeds
68000 integer
CY2023Q1 us-gaap Lessee Operating Lease Description
LesseeOperatingLeaseDescription
The lease expires on March 1, 2028 and has two five-year renewal options
CY2023 us-gaap Operating Lease Cost
OperatingLeaseCost
99000 usd
CY2022 us-gaap Operating Lease Cost
OperatingLeaseCost
97000 usd
CY2023Q1 us-gaap Operating Lease Right Of Use Asset
OperatingLeaseRightOfUseAsset
1755000 usd
CY2022Q4 us-gaap Operating Lease Right Of Use Asset
OperatingLeaseRightOfUseAsset
1833000 usd
CY2023Q1 us-gaap Operating Lease Liability
OperatingLeaseLiability
1755000 usd
CY2022Q4 us-gaap Operating Lease Liability
OperatingLeaseLiability
1833000 usd
CY2023Q1 us-gaap Operating Lease Weighted Average Remaining Lease Term1
OperatingLeaseWeightedAverageRemainingLeaseTerm1
P5Y
CY2022Q4 us-gaap Operating Lease Weighted Average Remaining Lease Term1
OperatingLeaseWeightedAverageRemainingLeaseTerm1
P5Y3M
CY2023Q1 us-gaap Operating Lease Weighted Average Discount Rate Percent
OperatingLeaseWeightedAverageDiscountRatePercent
0.041 pure
CY2022Q4 us-gaap Operating Lease Weighted Average Discount Rate Percent
OperatingLeaseWeightedAverageDiscountRatePercent
0.041 pure
CY2023Q1 us-gaap Lessee Operating Lease Liability Payments Due Next Twelve Months
LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths
296000 usd
CY2023Q1 us-gaap Lessee Operating Lease Liability Payments Due Year Two
LesseeOperatingLeaseLiabilityPaymentsDueYearTwo
395000 usd
CY2023Q1 us-gaap Lessee Operating Lease Liability Payments Due Year Three
LesseeOperatingLeaseLiabilityPaymentsDueYearThree
395000 usd
CY2023Q1 us-gaap Lessee Operating Lease Liability Payments Due Year Four
LesseeOperatingLeaseLiabilityPaymentsDueYearFour
395000 usd
CY2023Q1 us-gaap Lessee Operating Lease Liability Payments Due Year Five
LesseeOperatingLeaseLiabilityPaymentsDueYearFive
395000 usd
CY2023Q1 us-gaap Lessee Operating Lease Liability Payments Due After Year Five
LesseeOperatingLeaseLiabilityPaymentsDueAfterYearFive
99000 usd
CY2023Q1 us-gaap Lessee Operating Lease Liability Payments Due
LesseeOperatingLeaseLiabilityPaymentsDue
1975000 usd
CY2023Q1 us-gaap Lessee Operating Lease Liability Undiscounted Excess Amount
LesseeOperatingLeaseLiabilityUndiscountedExcessAmount
220000 usd
CY2023Q1 us-gaap Operating Lease Liability Current
OperatingLeaseLiabilityCurrent
1755000 usd
CY2023Q1 us-gaap Payments For Rent
PaymentsForRent
52000 usd
CY2022Q1 us-gaap Payments For Rent
PaymentsForRent
51000 usd
CY2023Q1 STRW Notes Payable Gross
NotesPayableGross
463083000 usd
CY2022Q4 STRW Notes Payable Gross
NotesPayableGross
456791000 usd
CY2023Q1 us-gaap Deferred Finance Costs Net
DeferredFinanceCostsNet
1864000 usd
CY2022Q4 us-gaap Deferred Finance Costs Net
DeferredFinanceCostsNet
1376000 usd
CY2023Q1 us-gaap Notes Payable
NotesPayable
461219000 usd
CY2022Q4 us-gaap Notes Payable
NotesPayable
455415000 usd
CY2023Q1 us-gaap Long Term Debt Maturities Repayments Of Principal Remainder Of Fiscal Year
LongTermDebtMaturitiesRepaymentsOfPrincipalRemainderOfFiscalYear
25712000 usd
CY2023Q1 us-gaap Long Term Debt Maturities Repayments Of Principal In Next Twelve Months
LongTermDebtMaturitiesRepaymentsOfPrincipalInNextTwelveMonths
26080000 usd
CY2023Q1 us-gaap Long Term Debt Maturities Repayments Of Principal In Year Two
LongTermDebtMaturitiesRepaymentsOfPrincipalInYearTwo
16139000 usd
CY2023Q1 us-gaap Long Term Debt Maturities Repayments Of Principal In Year Three
LongTermDebtMaturitiesRepaymentsOfPrincipalInYearThree
65253000 usd
CY2023Q1 us-gaap Long Term Debt Maturities Repayments Of Principal In Year Four
LongTermDebtMaturitiesRepaymentsOfPrincipalInYearFour
102494000 usd
CY2023Q1 STRW Long Term Debt Maturities Repayments Of Principal After Year Four
LongTermDebtMaturitiesRepaymentsOfPrincipalAfterYearFour
227405000 usd
CY2023Q1 us-gaap Long Term Debt
LongTermDebt
463083000 usd
CY2023Q1 STRW Number Of Outstanding Credit Related Instrument
NumberOfOutstandingCreditRelatedInstrument
40 integer
CY2022Q4 STRW Number Of Outstanding Credit Related Instrument
NumberOfOutstandingCreditRelatedInstrument
40 integer
CY2023Q1 STRW Income Tax Description
IncomeTaxDescription
U.S. federal income tax law requires that a REIT distribute annually at least 90% of its net taxable income, excluding net capital gains, and that it pays tax at regular corporate rates to the extent that it annually distributes less than 100% of its net taxable income, including net capital gains. In addition, a REIT is required to pay a 4% nondeductible excise tax on the amount, if any, by which the distributions that it makes in a calendar year are less than the sum of 85% of its ordinary income, 95% of its capital gain net income and 100% of its undistributed income from prior years
CY2023Q1 us-gaap Proceeds From Rents Received
ProceedsFromRentsReceived
11838000 usd
CY2022Q1 us-gaap Proceeds From Rents Received
ProceedsFromRentsReceived
7951000 usd
CY2022Q2 us-gaap Notes Receivable Net
NotesReceivableNet
8000000 usd
CY2022Q2 us-gaap Long Term Debt Percentage Bearing Fixed Interest Rate
LongTermDebtPercentageBearingFixedInterestRate
0.07 pure
CY2023Q1 STRW Interest Expenses With Respect To Bonds
InterestExpensesWithRespectToBonds
1214000 usd
CY2022Q1 STRW Interest Expenses With Respect To Bonds
InterestExpensesWithRespectToBonds
2170000 usd
CY2023Q1 us-gaap Interest Expense Long Term Debt
InterestExpenseLongTermDebt
3858000 usd
CY2022Q1 us-gaap Interest Expense Long Term Debt
InterestExpenseLongTermDebt
1780000 usd
CY2023Q1 STRW Interest Expenses With Respect To Leases
InterestExpensesWithRespectToLeases
19000 usd
CY2022Q1 STRW Interest Expenses With Respect To Leases
InterestExpensesWithRespectToLeases
21000 usd
CY2022Q1 STRW Other Financing Expenses Including Related Parties Net
OtherFinancingExpensesIncludingRelatedPartiesNet
669000 usd
CY2023Q1 us-gaap Financing Interest Expense
FinancingInterestExpense
5091000 usd
CY2022Q1 us-gaap Financing Interest Expense
FinancingInterestExpense
4640000 usd
CY2023Q1 STRW Financing Income Expense
FinancingIncomeExpense
283000 usd
CY2022Q1 STRW Financing Income Expense
FinancingIncomeExpense
151000 usd
CY2023Q1 us-gaap Interest Expense Other
InterestExpenseOther
4808000 usd
CY2022Q1 us-gaap Interest Expense Other
InterestExpenseOther
4489000 usd

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