STRW

Strawberry Fields is a triple-net healthcare REIT that has compounded revenue from $87M (FY2021) to $155M (FY2025), a +32.4% jump last year alone, with net income up +85% to $7.58M and operating cash flow up +51.8% to $90.0M. The business quality is better than the 4.9% net margin implies: as a triple-net landlord it books a 54.4% operating margin and pushes taxes, insurance, opex and capex onto tenants. The MD&A shows the growth is real and contractual — 143 facilities / 15,602 beds generating ~$142.7M of annualized base rent, with 77.5% of GLA not expiring until after 2030 and leases carrying 2.5%–3% (or CPI-linked) annual escalators. That gives durable, visible, inflation-protected cash flow, and 2025's Kansas, Oklahoma, Texas and Missouri acquisitions add roughly $10M+ of incremental annual rent.

On valuation the headline 22.9x P/E overstates expense because REIT earnings are depressed by D&A ($46.2M, non-cash). Adding back the company's economic share of depreciation to net income yields an FFO-like figure that puts the stock closer to ~10x cash earnings — inexpensive for a landlord growing rents double-digits with laddered, escalating leases. The 1.2x P/S and $184M equity market cap also understate the enterprise: the Company owns only ~24.0% of the Operating Partnership, so most economics sit below the public float and alongside $795M of long-term debt.