Raymond James initiates QXO stock with Outperform rating on acquisition strategy
Investing.com - Lake Street Capital Markets raised its price target on Strawberry Fields REIT (NYSE:STRW) to $14.50 from $13.50 on Tuesday, maintaining a Buy rating following strong Q2 results. The stock, currently trading at $11.30, appears undervalued according to InvestingPro analysis, with impressive revenue growth of 24.7% in the last twelve months.
The healthcare real estate investment trust reported collecting 100% of its rent during the quarter, with its portfolio remaining healthy according to Lake Street’s analysis. InvestingPro data confirms this strength with an overall Financial Health Score of "GREAT" and a solid current ratio of 3.75.
Strawberry Fields completed several acquisitions, including a 112-bed skilled nursing facility near Houston for $11.5 million in April, adding $1.3 million in annual rent to its Texas Master Lease 2 with 3% escalators.
In July, the company closed a $59 million acquisition of nine Missouri skilled nursing facilities, which will contribute $6.1 million in combined annual rent across two master leases.
The REIT also recently completed an Oklahoma facility acquisition for $4.25 million, adding $425,000 in annual rents, bringing its year-to-date acquisitions to more than $100 million with potential for additional transactions through the remainder of 2025.
In other recent news, Strawberry Fields REIT has successfully raised approximately $87.6 million through the issuance of its Series B Bonds, conducted exclusively in Israel. The bonds, trading on the Tel Aviv Stock Exchange, will have four principal reduction payments scheduled from 2026 to 2029, with an annual interest rate of 6.70%. Additionally, Strawberry Fields REIT has expanded its At Market Issuance Sales Agreement to $50 million in common stock shares. This amendment includes the addition of Wedbush Securities Inc. to its existing agreement with B. Riley Securities, Inc. and A.G.P./Alliance Global Partners. The expansion was detailed in a recent SEC filing, along with a Prospectus Supplement No. 1 filed under Rule 424(b)(5). These developments reflect the company’s active engagement in financial strategies to bolster its market presence and capital resources.
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