Strawberry Fields REIT, Inc.

Good day and thank you for standing by. Welcome to the Strawberry Field's fourth quarter and year-end 2025 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1-1 on your telephone keypad. I will now hand the call over to Jeff Feigner, Chief Investment Officer. You may begin.

Thank you and welcome to Strawberry Fields REIT's year-end 2025 earnings call. I am the chief investment officer and joining me today on the call are Marge Shkuben, our chairman and CEO, and Greg Fleming, our CFO. Yesterday, the company issued its year-end 2025 earnings results, which are available on the company's investor relations website. Participants should be aware that this call is being recorded and listeners are advised that any forward-looking statements made on today's call are based on management's current expectations, assumptions, and beliefs about Strawberry Field's REITs business and the environment in which it operates. These statements may include projections regarding future financial performance, dividends, acquisitions, investments, returns, financings, and may or may not reference other matters affecting the company's business or the businesses of its tenants, including factors that are beyond its control. Additionally, References will be made during this call to non-GAAP financial results. Investors are encouraged to review these non-GAAP financial measures as well as the explanation and reconciliation of these measures to the comparable GAAP results included on the non-GAAP measure reconciliation page in our investor presentation. And now, onto discussing Strawberry Fields REIT and our 2025 performance. I wanted to start by sharing some key highlights for the year. Throughout 2025, the company collected 100% of its contractual rents. This is something we are very proud of, as collecting our rents year in, year out shows our disciplined investment approach works. On January 1, 2025, the company re-tenanted its 10 Kentucky properties, formerly part of the landmark master lease. The new tenant, Hill Valley, has a strong background in operating skilled nursing facilities and was a great fit for this portfolio. The new rents, the new base rents are $23.3 million a year and are subject to annual increases of 2.5%. The initial lease term is 10 years with four five-year extension options. Also in January, the company entered the state of Kansas by acquiring six facilities consisting of 354 beds for $24 million. the company entered into a new triple net master lease with Willie and Michelle Novotny of Advenacare for an initial 10-year term that included two five-year extension options. In June, the company issued 312 million shekels in Series B bonds on the Tel Aviv Stock Exchange, which is approximately $89.5 million. The bonds are unsecured and were issued at par with a fixed interest rate of 6.7%. This was the company's sixth Series It completed on the Telvive Stock Exchange since the company was founded in 2015, and we look forward to maintaining this longstanding relationship that Marsh has grown into future series. In July, the company completed the $59 million acquisition of nine skilled nursing facilities comprised of 686 beds located in Missouri. Eight of the facilities were leased to the Tide Group, led by Brian Ramos, and were added to its existing master lease the company entered into in August of 2024. The ninth facility was leased to an affiliate of Reliant Care Group, led by Rick and Nick DiStefane, and were added to their master lease the company assumed in December 2024. This deal highlights the company's goal to grow its master leases. When there is a deal in an existing state or with an existing operator, it is very easy for the company to get the deal done. It's almost like plug and play as we do not need to renegotiate the lease or other terms with our tenant. We can simply add the new facility to the existing master lease and business goes on as usual. During 2025, the company continued to pay a dividend of around 5%. We started in Q1 with a dividend of 14 cents a share, and in August, the board of directors increased the dividend by 2 cents to 16 cents a share, which represented a 14% increase. As a final point, as we detailed in our earnings release yesterday, and as both Marcia and Greg will discuss further, 2025 was the best year the company has had since its inception. Over the last five years, the company has had 13 plus percent growth of the adjusted FFO, adjusted EBITDA, and the average base rates. I believe that these numbers reflect the success of the company's disciplined investment approach and our ability to close on deals that are accretive to the balance sheet. I would now like to have Greg Fleming, our Chief Financial Officer, discuss the year-end financials.

Thank you, Jeff, and welcome, everyone, to the Strawberry Field's fourth quarter earnings call. Let's begin with a look at our balance sheet. Whole assets are $885 million, an increase of $97.9 million, or 12.4%, compared to December 31, 2024. Our asset growth was driven by a couple of key factors. First is our recent real estate acquisitions. This includes 112 million of acquisitions in 2025. Second is the retenanting of key leases, namely the landmark master lease into the Kentucky master lease. On the liabilities and equity side, increases were driven by financing activity associated with our acquisitions, along with the impact of foreign currency translation adjustments. Together, Both of these factors contributed to the overall growth in our debt balances. Equity declined, reflecting lower other comprehensive income, driven again by the foreign currency translation adjustments. Continuing now to the consolidated statement of income. 2025 revenue was $155 million, up 37.9 million compared to December 31st, 2024. This represents a 32.4% increase, which was driven by the time and integration of properties acquired in 2024 and 2025, and the landmark to Kentucky master lease retenanting that began in January 2025. While we experienced higher revenues, the income growth was offset by higher depreciation, amortization, and interest expense, which is driven by new property acquisitions. This results in a year-to-date net income of $33.3 million or 60 cents per share compared to 26.5 million or 57 cents per share in 2024. Finally, I'd like to end my presentation with some financial highlights. Our 2025 AFFO is $72.5 million. This is a growth of 29.8% versus 2024 and represents a 13.3% compound annual growth rate. The 2025 adjusted EBITDA is $125.3 million. This represents a 38.2% increase compared to 2024 and a 13.5% compound annual growth rate. Our net debt to net asset ratio currently sits at 49.5%. As of December 31st, 2025, our dividend was 16 cents a share, representing a 4.9% yield and an ASFO payout of 46%. This concludes the financial portion of the earnings call presentation. I'll now turn it back to Jeff, who will walk us through additional portfolio highlights.

Thank you, Greg. Our portfolio highlights are as follows. Currently, our portfolio has 143 facilities located in 10 states, which comprises 16,602 licensed banks. The total value of our portfolio acquisition is $1.1 billion. But if you take the value of our portfolio based on the leases, that amount is closer to $1.5 billion. There are 17 consultants advising to our operators. Our weighted average lease term is 7.2 years. I am happy to report that our tenants continue to do well and our EBITDA and rent coverage as of November 30th was 2.07. Our net debt to EBITDA is 5.7. As I mentioned earlier, We continue to collect 100% of our rents. And as a final point, our acquisition pipeline remains strong at $250 million. As Maish and I have mentioned in the past, for us to close on a deal, it has to meet our disciplined investment approach, which is a 10 cap at acquisition. And with that, I pass it on to Maish Gubin, our chairman and CEO, to continue the presentation.

Okay, thank you. Thank you, Jeff. As Jeff mentioned, this was a great year for our best year we've ever had, and it was a great year for our AFFO growth, where we had a 13.3, which is the average growth rate over the last six years, but proudly from 38 million to 72 million. These are really good numbers that we're very proud of. On the next slide, we got base rent. Again, 13.4% growth rate. almost double like the last one, very similar numbers from 75 million in 2020 to 142 million, 675. These are good numbers that we're very happy with. And on the next slide, we talk about our stock price, which in December, we hit an all-time high. We've got to $14 a share and we're still way undervalued. We believe that our stock value was, you know, close to 18, 19, 20, I'll share our stock is still, is still straggling behind our peers. Um, but you know, we figure we'll keep doing what we're doing fundamentally, um, strong business and God willing, eventually everything will get caught up, um, get caught up to us. You could see on the next slide, how the AFFO multiples, um, for us, we're at the lowest of everybody at a nine and a half times and care trust, um, or even Sabra is at 12.8, and CareTrust is at almost 20 times. They're doing real good. I'm happy for them. They're good people. The return on the stock, you know, 30% return this year. That's pretty good. We're happy about that, though we feel that when the market truly gets to where we're supposed to be, we'll see a nicer pop than 30%. That being said, the next slide, our AFFO payout ratio, continues to be the lowest where we're paying out of 47%. We're close to 47% of our AFFO, using the rest of the money to pay down debt as a placeholder, but to be able to use it to buy more assets. Our dividend yield, because we're still, you know, the PAC at Care Trust, HI and us, about 5%. And we feel that that's a good place to be. especially when we're able to go take the money, put the money out the door at a 10 cap, where we get to get a blended return. At this point, we're blended return of about 17 to 18%, which is what it's been. And we're very happy about that. Really, it's a very calm portfolio, collecting our rents, doing what we're doing, growing when we can. We're still anticipating guidance of being able to grow a hundred to $150 million a year. We hope to beat that. And we had a deal that we, that, that fell through that we were, we were going to announce that eight $90 million deal. I was so happy to go get that and get it out of the way earlier in the year. Uh, but that fell apart, unfortunately, but, um, God willing, God willing, um, we will, we will be able to hit our targets of between a hundred, $150 million this year. The next slide really just talks about how we're still the pure play, skilled nursing facility, healthcare REIT. We were recently at a convention and we asked investors and others if they thought we were doing the right thing. And everybody across the board said, no, you keep doing what you're doing. As the pure play, people will gravitate towards you. So we feel like we're going to just keep sticking with our guns and how we do things and what we're buying. And we should be able to continue staying above 90% in skilled nursing facilities. The next slide really just talks about the coverage, our rent coverages. Over two times rent is pretty good. We're happy with that, and hopefully that'll continue. Our AFFO per share growth, you can see we're the highest. Proud of that as well, 12.8% over the last five years. It's good. We're running a nice, clean business, as you guys know, and we expect things to be able to stay the same or improve going forward. On this slide 12, we're just showing how our debt maturity schedule is currently. In the next few weeks, me and the team are heading to Israel. And at the same time, we should be announcing that we are entering into a term sheet with a bank for the unsecured line of credit and term loan, which we've talked about over the last few years. So we expect in the next... 45 to 60 days to be able to have most of our debt cleaned up and pushed off to have almost equal maturities over the next 4 or 5 years. And so we're really happy about that. I've been pushing that for a while. We will have a bunch of availability under our line of credit once it's done to over 100 million dollars. So it'll help us Actually, the most important thing that it'll probably help us with is that it'll be able to tell potential investors that we'll tell them that, look, we have cash. We're able to get a deal done. And so if you're worried about our growth, besides looking at our previous history where we've been growing nicely year over year, they'd be able to say, okay, they have the cash to be able to grow. I want to try to get rid of all these impediments so that the stock will have less pressure to not improve. Slide 13 has become my favorite slide. This just shows how diversified we are by state, where the largest concentration is Indiana, which is our best state, which is a good situation to be in. Everybody else is in the low double digits. And you see it's pretty evenly dispersed throughout the states and by consultants in the states. So this is good. Hopefully this is the year we'll add maybe one or two more states and that'll be great and we'll continue to diversify this pie graph. Lastly, for me, slide 14, this just shows you, I'm colorblind, but I know that basically what we do has been where we bring in regional operators and the color should indicate that through all of our operators and portfolios, we're growing and we're staying in little pockets by each state. And hopefully that'll continue. And things are going great. The bottom pie graph just continues to drive home the point of how we're the pure play SNF healthcare REIT. And we're gonna continue to stay the same way that we are. Okay, and with that, I'll hand it back to the operator for any questions. I wanna thank everybody again for joining us today. And I will answer whatever questions that anybody has.

Thank you. As a reminder, to ask a question at this time, you will need to press star 1-1 on your telephone keypad. Please stand by while we compile the Q&A roster. The first question will come from the line of Richard Anderson with Kent Office Gerald. Your line is now open.

Hey, good morning, everyone. Great quarter. If I could ask a sort of mathematical question first, the EBITDARM with an M coverage of 2.07 times, what does that equate to on a DAR basis in your mind?

So what do you guys want to answer? You want me to answer that? I could get you that in one second. Do you want to go to the next question? I'll get that for you.

Another mathematical one, and then I've got a bigger picture one for Moishe. With the very attractive payout ratio of 47%, what does that equate to from a free cash flow available to you after dividend, which is zero cost of capital, essentially? Where do you see that growing to over the course of time? What are the pressures on you to have to raise the dividend to maintain some sort of standard as it relates to dividend payout?

So the number is right around $40 million after everything's said and done that we are stockpiling. But, you know, the pressure based on REIT rules, I mean, we're at about 100% of distribution. So, like, we have room if we wanted to hold back, but you know, as we make more money, you know, we're trying to build up a, a, a following in the marketplace that says, okay, we could trust these guys that every year they're the same or more. And so we want to have an annual increase every year. The, the, the bigger fights in the board meetings have been how much the increase should be, whether it be one cent, two cent or more. And again, you know, I'm, I'm, actually the one who's pushing not to, not to, you know, go crazy on, on the dividend from the point of view of, because if God forbid, we're not able to meet at one time, I don't want to be erratic and then lower it. And I want to be able to always be relied upon that. You'll know that my, that the dividend, if you're investing in our company, you know, you're going to get at least this or more going forward annually. And so that's what I've been protective of. And so far we've been, we've been, you know, uh, you know, doing it exactly that way for four years at this point almost, I think. And it's been good. And so, you know, that 40, you know, equates to being able to buy, you know, easily $80 million and, you know, and whatever else we need to supplement with, we could supplement. Well, first of all, since we're paying down a bunch of debt every year, we could draw on the debt to keep our, because our leverage today is below 50 or right around 50 And we could then still draw on those lines and ratchet back up to 50 and draw on that to be able to close deals. So I think I answered. Good to hear your voice, Rich. Yeah.

And Jeff, you got an answer for the DAR?

Yes. Our EBIT DAR coverage is 1.6.

1.6. Okay. And then last for me, Moish, the news out there today on Medicare Advantage sort of flat for next year. I'm wondering, you know, what your exposure is to MA in the portfolio and what concerns you might have that fee-for-service Medicare, to the extent you have any, you know, major exposure, is kind of a risk to the industry, if not necessarily directly at you. Thanks.

Yeah, so that's a good question. Talking about context of Strawberry, Um, you know, we don't have any shop in our portfolio. We don't have any of our rents that are predicated on results of our tenants and our rent changing up or down as bonus rent or not bonus rent. Um, so we don't have, we don't suffer from that at all. Um, and the fact that, you know, the coverage, um, is a 1.6, like Jeff said, is an EBIT DAR. Um, and I would have thought it was, it was, um, it would have been a little bit lower. But actually, I'm happy that's 1.6. 2.07 is the number we're actually, you know, looking at. But the point is, is that, you know, we don't have any of those risks in our portfolio. And because of the master leases, you know, individual facilities that might be marginal, you know, the overall portfolio of every one of our tenants are doing well. So, you know, a lot of these things, you know, are just they, they, they happen one year and the next year they'll, they'll raise the number, um, for the increase, um, you know, to make up for, for the year before. So I'm not, I'm not too worried about it. Um, you know, some of the other REITs that are out there, you know, they, they, they're more, they're more connected to the operator as far as operator results. Um, and they all, they'll probably suffer a little bit, but in the grand scheme of things, it'll bounce back. You know, this has been, this has been the way it's gone, you know, uh, not even administration to administration, year to year is the same administration that's gone, because then they realize, you know, the operators can't live. They rely on Medicare to help supplement the shortfall that Medicaid has, and, you know, as time has gone on, they've squeezed that the operator makes, you know, less, and the operators are okay with that, I guess, today where it is, but it's still, you know, it's, they work in tandem. And when the nursing homes get squeezed too much from the government, you know, where it's short, right, they go back and then the government fixes it. And so I'm not too worried in the grand scheme of things. Again, you know, we're in an industry, you know, we've talked about the silver tsunami. We're in an industry where we're a necessary business that, you know, the nursing homes need to take care of people and people need to be taken care of. The nursing homes are the least expensive model, you know, to be able to take care of people. And we provide the role as the REIT to be the landlord and provide the capital so somebody that's an operator doesn't have to put the money in and buy the real estate. And we have a very simple model that's been working so effectively for so many years, and that should hopefully continue.

Okay, great. Thanks very much.

Thank you.

Thank you.

Our next question coming from the line of Gaurav Mehta with Alliance Global Partners. Your line is now open.

Yeah, thank you. Good morning. I wanted to ask a balance sheet for the 2026 debt maturing. Where do you expect the new rates to be compared to the maturing debt?

So we modeled out that the... line of credit debt is going to come back in at SOFR 270 about, SOFR 265, 275, right around there, and that the bond debt's going to come in around six and a quarter. So assuming we pay off the conventional that today is sitting at three, SOFR three, three and a quarter, let's say, as a blended, so that'll go from SOFR three and a quarter to you know, we'll say probably 50 basis points about that on that. It was like 160 million or so or whatever the number is. And then for the bond debt, we'll see a savings of a drop. It's not going to be a big, not a big savings, but it'll extend the maturity out, you know, four or five years and nice and clean. And it also, at this point, it'll be helpful for refinancing that because then I don't have to deal with the currency. Right now the dollar is weak and the shekel is strong. And so I need to kick that can down the road so that I'm not stuck using dollars to pay off shekel debt. And so because in the grand scheme of things, the shekel will drop at some point and the dollar will strengthen. It's inevitable. And when that happens, we'll make a bunch of money on the currency exchange too.

All right, that's great color. Second question on the 4Q financials in the GNA, was it any one-time items that you guys reported? And then going forward, the run rate for ASFO per share is 4Q the right number?

Greg, you want to answer that?

Sure. So yeah, in the GNA there, we did have, let's just say, a one-time item. We had some some additional payroll that came through in Q4 due to additional executive compensation. So that was a little bit higher than what we were expecting to come in, I guess, from earlier on in the year. However, looking, I guess, look at the payroll going forward, we think that it's not going to be, we don't expect any further increases going into 2026.

So- So basically, Gaurav, what- the one time event is I finally got a raise. I've been paid, uh, $300,000 a year for the last 15 years or something like that. And they finally gave me a competition committee decided to give me a raise to 700,000, which I think I'm still way underpaid. It doesn't make a difference to me, but the reality is, is I think in those in fourth quarter, they recorded, they recorded, uh, somewhere between, and it went back. They did retroactively to like 18 months. So I think, uh, So they recorded about $1 million or $1.1 million in a one-time thing. Our go-forward, you know, we ended up the year with an AFFO of $1.30. We should beat that easily in 26.

All right. Thank you. That's all I have.

Thank you. Have a good weekend.

Our next question coming from the lineup, Mark Smith with Lake Street. Your line is now open.

Hi, guys. I wanted to ask first about the acquisition pipeline. You know, have you seen any changes in this pipeline, either in volume or valuations? And, you know, is the only real potential impediment to continued growth through acquisitions really just access to capital or You know, any thoughts on kind of continued growth through acquisitions in your pipeline? It'd be great.

So I'll answer that and then Jeff will add to it. Give him a little time to think because he's not as fast and as speed as I am. So the starting point is we've never had an impediment as far as cash. We are confident and we know that, you know, debt markets and, you know, I don't want to sell equity at such a cheap price, but reality is, is, you know, we have, we keep track of what our, what nav is and worst case scenario, if we had to sell equity, you know, above nav, it's still, it's still accretive. It's just not, it doesn't feel right doing it. But, but point is we could always do that. We, we've, we've over the years, you know, we've stayed very disciplined as you guys know. And lately the deals that I'm seeing are, personally, our sale-leaseback deals. Seems to be a ton of that. And so this year, most likely, which will be a little bit different. It's the same math, but a little bit different of an operator where it's going to be the same operator in a spot that we could tell somebody historically, this is what they're doing and this is how they're operating and this is how much money they're making. And then we're going to rebalance them to, you know, a one and a quarter, which is how we underwrite to. And then, you know, As opposed to what we typically had done, not that we were adverse to sadly specs, we typically were just buying and then re-tenanting. In this case, it's going to be a little bit easier on one side. And the fact that you'll have people that have been the operators there for many years, that's what I'm seeing. Jeff, you want to add to that?

I mean, I think most... is dead on with his view on it. I mean, it's not an issue with access to capital. I mean, the deals are coming in day in, day out. I mean, they're coming in from across the country, but as we said in the past, we're in our 10 states. I mean, to add to our existing 10 states, it's very easy to grow the master lease, but finding a new state to go into, I mean, we need a sizable acquisition and valuation right now. It's prices have gone up significantly. I mean, especially, I mean, I'd say last year was on the East Coast. This year we're seeing in the heartland of the country. I mean, you're seeing prices per bed go to their highest levels that they may have ever been. And for us, with our disciplined approach, I mean, we were sticking to our guns. And if the deal makes sense, the deal makes sense. I mean, Moish has always said, if a deal pencils out, we're going to close it. So that's been the approach that we've been going at. I mean, since I've been with Moish for about five years now. And there hasn't been a deal we haven't closed. So we're always looking and we're always looking at different ways we can grow. But it all goes back to the basics. 10 cap acquisition, 125 coverage on day one. So, I mean, as we enter 2026, we're excited to see what's going to come our way. The sale leasebacks have been very front and center for us. And we look forward to seeing everyone next quarter and we'll hopefully have some deals to report that as well.

Perfect. The other question that I had was really around occupancy, you know, sitting here, like, I think you guys said like 76%, just kind of curious your comfort level at that rate and where you maybe see that moving and impact to the model as, as occupancy maybe moves up or down.

Yeah. So I'll, I'll answer that. I mean, we've talked about this before. You know, we, we, I know that there's, there's you know, read analysts and folks that, you know, look at a bunch of different, you know, multifamily and other things across the board. In the healthcare space, you know, the occupancy is not a great gauge of how a portfolio is doing. You know, we're in states, and I've talked about this before, like we're in Oklahoma. In Oklahoma, the average occupancy for the whole state is like 50%. And, you know, and rightfully or wrongfully, they wanted in Oklahoma that they should have a nursing home local for you know like every county as an example similar indiana same way uh but indiana the average occupancy is like 70 percent uh compared to 50 in oklahoma but they did it because you know they didn't want people that wanted to visit their mother nursing on that they should be driving an hour every day you know to go visit mom and so so you have certain states um so we're in states where in the midwest that are that are known as low occupancy places now illinois occupancy you know, averages like in the 90% and, you know, or high 80s. Same thing with Kentucky, 85%. But Arkansas is a low number, and our operators are doing great there. They're weight-beating the trend and the state average. Indiana is right around how Indiana runs is how our, maybe a little bit lower, actually, in our tenants' operations. So that being said... And again, our revenue is not based on, because in our case, we're showing 100% occupied because every building that we have has been leased out and we get paid a rent no matter how full they are. But that's just a color I just want to provide you. I don't know if that helps you or hurts you, but we expect our portfolio is now probably right around the same or higher than it was before COVID-19. So it's taken a bunch of years to recover and we're okay with it. I mean, we're really looking more at rent coverage more than the occupancy of the tenant.

I would add that as we're underwriting the portfolio. So they aren't, I mean, their occupancy may have been in the 60s and now four or five years later, their occupancy has gone up, which is ultimately, I mean, it's helping their bottom line giving higher rent coverage. But as much as you're saying, I mean, the likelihood of it Them being in other, I'd say, verticals of real estate, net lease, multifamily, 100% is very important. In this particular case, it's a little less important. It's more just it goes down to the operations.

It sounds like the big thing to look at is really the rent collected at 100%. And you can continue to do that even at occupancy. In some states, it's as low as 50%.

Yeah, because when we buy it, we're not buying it off of what could be. We're buying it off of today, where does the deal play out as far as coverage. And I guess that's the difference between us and maybe multifamily, where multifamily, they want to charge market rents, and they're assuming something, and they're giving a vacancy rate of 5% or something, and then they're buying off of that. And then they have to build into that. We're not buying into that. We're charging the rent that's a mathematical formula off of what we're paying. And we're praying every day that our tenants do great and raise occupancy because the more coverage they have, the more certainty we have we'll get our rent, the more certainty we have that we're gonna get our rent, the more certain we are that we can pay a dividend and buy more assets. And the more we do that, the more we know that we're gonna make more money And, you know, wash, rinse, repeat, wash, rinse, repeat, and keep doing it. And that's been what we've done, and that's been effective and successful, and we want to keep doing that.

Excellent. And I know from your presentation, it seems like the demographic trends that you guys call out gives us a long runway before we need to really worry about occupancy dropping off because of just demographic trends and aging out.

Yeah, the transcript's not going to catch the fact that all three of us started bobbing ahead. Yeah, exactly, exactly what you just said. I was thinking of Silver Tsunami. You know, reality is if you're really a prognosticator, our tenants should, as long as the government doesn't decide to start being anti-geriatric folks, there is absolutely no reason why our tenants won't have coverages way in excess of you know, two, three, four times because 10 years from now, you know, we're still making our 10 cap return with, you know, annual inflationary increases. And they're going to be making, you know, outside of what, you know, the cost of the work is, you know, but their cost of occupancy to be able to have the space to be able to run the nursing home, right? That's going to stay relatively flat other than, you know, small inflationary increases, but they should have their occupancy go up you know, through the roof, certainly in bigger cities, you know, I don't know if, I don't know if Bardstown, you know, Kentucky is going to now, now happens to be that building is like relatively, well, you know, that's maybe a bad example, like Elkhorn County, you know, like places full, but the other places where they're running 60, 70, 80% or 50 in Oklahoma, you know, that number ratchets up to 70, 80, 90%, you know, our coverage is going to be through the roof. And that's really what we want. We want everyone to, We want the country to have nursing homes that take care of the residents and they're able to take care of the residents when they make money. And for them to make money, they need a landlord that's not too onerous and buys properties effectively at the right pricing and gives them a rent that they could live with. And that's the model we have.

Excellent. That's helpful. Thank you, guys.

You're welcome.

Thank you. And I'm showing up for the questions in the Q&A queue at this time. I will now turn the call back over to Jeff for any closing comments.

I'd like to thank everyone for joining us on this call. We appreciate you joining us. We appreciate your support. If anybody has any questions or would like to reach out, send us an email, ir.sfreight.com. And we look forward to seeing you again next quarter. Have a great weekend. Thank you.

Thank you.

This concludes today's conference call. Thank you for your participation. You may now disconnect.