Cash flow generation is obscured by heavy depreciation, with FFO reaching $28.2M in 2026Q1 compared to $16.7M in Net Income, while maintaining a conservative dividend payout ratio of 0.14 relative to AFFO.
| Cash from Operations | 88.56M | 90.04M | 59.33M | 54.94M | 50.93M | 44.79M | 37.34M |
| Operating CF Growth % | 95% | 51.76% | 7.98% | 7.89% | 13.71% | 19.93% | - |
| Operating CF / Revenue % | 56.18% | 58.09% | 50.68% | 55.05% | 55.03% | 51.46% | 44.41% |
| Net Income | 22.66M | 33.31M | 26.5M | 2.5M | 16.42M | 8.42M | 11.89M |
| Depreciation & Amortization | 58.2M | 46.6M | 34.19M | 29.53M | 28.79M | 27.77M | 26.92M |
| Stock-Based Compensation | 1.62M | 1.69M | 0 | 0 | 0 | 250K | 0 |
| Other Non-Cash Items | -18.78M | 6.18M | 4.49M | 19.17M | 12.14M | 1.09M | 250K |
| Working Capital Changes | -4.12M | 2.26M | -5.86M | 3.75M | -6.42M | 2.88M | -1.71M |
| Cash from Investing | -83.27M | -111.87M | -136.78M | -106.35M | -10.1M | -58.29M | -6.43M |
| Acquisitions (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Purchase of Investments | -159.76M | 0 | 0 | -108.06M | -513K | 0 | 0 |
| Sale of Investments | 81K | 0 | 0 | 0 | 0 | -3.84M | 0 |
| Other Investing | 76.42M | -111.87M | -112.78M | 1.71M | -9.59M | -54.45M | -6.43M |
| Cash from Financing | -6.73M | -5.06M | 133.34M | 43.46M | -47.25M | 23.57M | -26.1M |
| Dividends Paid | -8.06M | -7.63M | -4.04M | -2.87M | -637K | -1.52M | 0 |
| Common Dividends | -5.92M | -7.63M | -4.04M | -2.87M | -637K | 0 | 0 |
| Debt Issuance (Net) | 0 | 1000K | 1000K | 1000K | -1000K | 1000K | -1000K |
| Share Repurchases | -652K | -652K | -2.47M | -46K | 0 | 0 | 0 |
| Other Financing | -28.7M | -27.63M | -24.24M | -37.16M | -12.35M | 0 | 0 |
| Net Change in Cash | -1.43M | -26.9M | 55.9M | -7.95M | -6.42M | 10.07M | 4.81M |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 66.76M | 93.66M | 37.76M | 45.7M | 52.13M | 42.06M | 37.24M |
| Cash at End | 69.66M | 66.76M | 93.66M | 37.76M | 45.7M | 52.13M | 42.06M |
| Free Cash Flow | 88.56M | 90.04M | 35.33M | 54.94M | 50.93M | 44.79M | 37.34M |
| FCF Growth % | 26.21% | 154.85% | -35.7% | 7.89% | 13.71% | 19.93% | - |
| FCF / Revenue % | 56.18% | 58.09% | 30.18% | 55.05% | 55.03% | 51.46% | 44.41% |
Operator credit and regulatory
As reported in financial statements, the divergence between GAAP Net Income and FFO is extreme, with FFO reaching 28.2M in 2026Q1 compared to just 16.7M in Net Income, highlighting how heavy non-cash depreciation charges consistently obscure the REIT's actual cash-generating capacity for investors.
The persistent gap between Net Income and FFO suggests that GAAP accounting significantly understates the economic earnings of the portfolio. Investors should monitor this spread, as it indicates that the company's profitability is heavily reliant on non-cash adjustments rather than pure operational efficiency.
Based on the provided quarterly data, STRW maintains a very low dividend payout ratio relative to AFFO, with the 2024Q4 figure showing a payout of only 0.14, suggesting that the company is retaining the vast majority of its distributable cash flow to fund future growth.
This conservative distribution policy provides a significant buffer against potential operator defaults or regulatory headwinds. While this supports balance sheet health, it may also indicate that management views the current portfolio as requiring substantial reinvestment to maintain long-term viability.
According to the historical cash flow data, the FFO-to-Net Income ratio has fluctuated wildly, peaking at 21.93 in 2024Q2, which suggests that the conversion of GAAP earnings into FFO is highly sensitive to non-recurring items or accounting adjustments within the REIT's reporting structure.
The lack of stability in this conversion metric warrants further investigation into the underlying drivers of FFO. It appears that the company's cash-based earnings are not yet tracking linearly with its GAAP performance, potentially complicating the assessment of sustainable dividend capacity.
As indicated by the 2024Q1 data, the company experienced a significant 18.0M outflow for capital expenditures, which caused a temporary negative FCF position of -15.9M, demonstrating the lumpy nature of property-level investments in the skilled nursing facility sector.
These periodic, large-scale capital outlays suggest that maintenance and tenant improvement requirements are not always smooth or predictable. Investors should be wary of how these irregular expenditures impact the company's ability to maintain consistent cash distributions during periods of heavy portfolio reinvestment.
Quick answers to the most common questions about buying STRW stock.
Strawberry Fields REIT LLC (STRW) generated $90.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Strawberry Fields REIT LLC (STRW) generated $90.0M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Strawberry Fields REIT LLC (STRW) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Strawberry Fields REIT LLC (STRW) returned $7.6M to shareholders via cash dividends and spent $0.7M on share repurchases. This shows the company's commitment to returning capital to its equity investors.