Business Context and Reporting Period
Company: Strawberry Fields REIT, Inc. (STRW)
Filing Type: Form 8-K (Current Report)
Date of Report: June 22, 2026
Event Date: June 18, 2026
Context: The Company announced the closing of a new Corporate Credit Facility (CCF) with Popular Bank to refinance existing debt and support growth.
Key Financial Metrics and Debt Structure
This filing details a new financing arrangement rather than periodic operating results. Key debt metrics include:
- Total Facility Availability: $300 million
- Term Loan: $100 million borrowed immediately.
- Revolving Credit Facility: $200 million available.
- Interest Rate: Greater of (1-month CME Term SOFR + 275 bps) or 5.50%.
- Maturity Date: June 18, 2029 (subject to two one-year extension options).
- Collateral: Secured by a continuing security interest in a portion of Strawberry Fields Realty LP (SFRLP) assets.
- Guarantors: Strawberry Fields REIT, Inc. and certain real estate subsidiaries.
Material Changes and Use of Proceeds
The primary material change is the establishment of the new CCF. The proceeds from this facility are designated for:
- Refinancing existing secured bank debt.
- Supporting acquisition growth.
- Working capital and general corporate purposes.
Note: The filing does not provide comparative financial data (revenue, profit, or cash flow) against prior periods as this is a transactional report.
Outlook, Risks, and Contingencies
Management Commentary: The Company has secured flexible financing to refinance obligations and fund future acquisitions. The facility includes extension options to provide long-term liquidity stability.
Risks and Contingencies:
- Interest Rate Risk: The floating rate component (SOFR + spread) exposes the Company to rising interest rate environments, though a 5.50% floor provides a known minimum cost.
- Security Interest: A portion of SFRLP assets is pledged as collateral, which may restrict future borrowing against those specific assets.
- Exhibit Filing: The definitive loan agreements (Exhibits 10.1 through 10.4) were not filed with this report but are scheduled to be filed by June 25, 2026.
Investor Verification Checklist
- Verify the specific assets pledged as collateral once the Term Loan and Security Agreement (Exhibit 10.1) is filed by June 25, 2026.
- Confirm the exact amount of existing secured bank debt being refinanced to assess the net impact on leverage.
- Monitor the utilization of the $200 million revolving credit facility for future acquisition announcements.
- Review the Company's next quarterly report (10-Q) to see the impact of the new interest rate structure on net income and FFO.