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Strawberry Fields REIT forever: US healthcare REIT files for a Nasdaq direct listing

March 30, 2022

Strawberry Fields REIT, a triple net lease REIT with a portfolio of healthcare properties, filed on Monday to register its shares with the SEC and complete a direct listing on the Nasdaq. The shares of common stock listed will be sold by existing shareholders; Strawberry Fields REIT will not raise new capital in its listing. The company did not disclose a reference price or anticipated timing of its listing.

The Registered Stockholders plan to sell up to 1.5 million shares of common stock. None of the Registered Stockholders are affiliates of the company.

Strawberry Fields disclosed an internal valuation of $9.23 per share, based on a third-party valuation done in March. At that price, the company would command a market value at listing of more than $490 million, including the conversion of OP units. The company plans to pay a quarterly dividend.

Strawberry Fields REIT's portfolio includes 79 healthcare properties, of which 78 are owned, located throughout the states of Arkansas, Illinois, Indiana, Kentucky, Michigan, Ohio, Oklahoma, Tennessee and Texas. The properties comprise 85 healthcare facilities, consisting of 74 stand-alone skilled nursing facilities, four dual-purpose facilities used as both skilled nursing facilities and long-term acute care hospitals, and three assisted living facilities.

The South Bend, IN-based company was founded in 2014 and booked $87 million in revenue for the 12 months ended December 31, 2021. It plans to list on the Nasdaq under the symbol STRW. Strawberry Fields REIT filed confidentially on January 13, 2020. As a direct listing without a firm commitment offering, there are no underwriters on the deal; instead, Cantor Fitzgerald will serve as a financial advisor.