Strawberry Fields: Bought At $9.8/Share, Upside Potential Was Here

(17min)

Summary

  • Strawberry Fields REIT is a well-managed, skilled nursing REIT with strong AFFO growth, conservative leverage, and a solid dividend yield above 5%.
  • Management's conservative approach, off-market deal focus, and long-term, low-interest HUD-backed debt create stability and a unique investment moat.
  • Despite recent outperformance and a raised price target to $10.5/share, the current valuation is not attractive enough for a Buy; I maintain a Hold rating.
  • I see low-to-moderate risk, strong fundamentals, and would consider adding below $10.5/share, but recommend patience at current levels.
  • Looking for a helping hand in the market? Members of iREIT®+HOYA Capital get exclusive ideas and guidance to navigate any climate. Learn More »

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I've mentioned in a few of my past articles that I recently in 2024-2025 left behind much of my US-based allocation due to correctly proven assumptions of FX overvaluation, thus avoiding a downturn. As things stand now, with FX for

The company discussed in this article is only one potential investment in the sector. Members of iREIT on Alpha get access to investment ideas with upsides that I view as significantly higher/better than this one. Consider subscribing and learning more here.

This article was written by

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Wolf Report is a senior analyst and private portfolio manager with over 10 years of generating value ideas in European and North American markets.

He is a contributing author and analyst for the investing group iREIT®+HOYA Capital and Wide Moat Research LLC where in addition to the U.S. market, he covers the markets of Scandinavia, Germany, France, UK, Italy, Spain, Portugal and Eastern Europe in search of reasonably valued stock ideas.

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Analyst’s Disclosure:I/we have a beneficial long position in the shares of STRW either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

While this article may sound like financial advice, please observe that the author is not a CFA or in any way licensed to give financial advice. It may be structured as such, but it is not financial advice. Investors are required and expected to do their own due diligence and research prior to any investment. Short-term trading, options trading/investment and futures trading are potentially extremely risky investment styles. They generally are not appropriate for someone with limited capital, limited investment experience, or a lack of understanding for the necessary risk tolerance involved. I own the European/Scandinavian tickers (not the ADRs) of all European/Scandinavian companies listed in my articles. I own the Canadian tickers of all Canadian stocks I write about. Please note that investing in European/Non-US stocks comes with withholding tax risks specific to the company's domicile as well as your personal situation. Investors should always consult a tax professional as to the overall impact of dividend withholding taxes and ways to mitigate these.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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