Leases

6 Months Ended

Jun. 30, 2022

Leases

Leases

NOTE 6. Leases

As of June 30, 2022 and December 31, 2021, the Company had leased 79 properties to tenant/operators in the States of Illinois, Indiana, Michigan, Ohio, Texas, Kentucky, Tennessee, Oklahoma and Arkansas. As of June 30, 2022 and December 31, 2021, except for two formerly long-term acute care hospitals (“LTACH”) facilities, all of the Company’s facilities were leased. Most of these facilities are leased on a triple net basis, meaning that the lessee (i.e., operator of the facility) is obligated under the lease for all expenses of the property in respect to insurance, taxes and property maintenance, as well as the lease payments.

The following table provides additional information regarding the properties owned/leased by the for the periods indicated:

	June 30,		December 31,
	2022		2021
Cumulative number of properties		79		79
Cumulative number of operational beds		10,426		10,426

The following table provides additional information regarding the properties/facilities leased by the Company as of June 30, 2022:

State	Number of Operational Beds/Units		Owned by Company		Leased by Company		Total
Illinois		4,327		21		-		21
Indiana		1,388		14		1		15
Michigan		100		1		-		1
Ohio		238		4		-		4
Tennessee		1,056		12		-		12
Kentucky		1,045		9		-		9
Arkansas		1,572		13		-		13
Oklahoma (*)		137		1		-		1
Texas (*)		563		3		-		3
Total properties		10,426		78		1		79
Facility Type
Skilled Nursing Facilities		10,174		71		1		72
Long-Term Acute Care Hospitals		153		4		-		4
Assisted Living Facility		99		3		-		3
Total facilities		10,426		78		1		79

(*) Each property is comprised of a skilled nursing facility and long-term acute care hospital.

As of June 30, 2022, total future minimum rental revenues for the Company’s tenants are as follows:

Year	Amount
(Amounts in $000s)
2022 (six-month period)	$	40,289
2023		80,987
2024		82,395
2025		72,171
2026		52,976
Thereafter		160,193
Total	$	489,011

STRAWBERRY FIELDS REIT, Inc. and Subsidiaries and Predecessor

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 6. Leases (cont.)

The following table provides summary information regarding the number of operational beds associated with a property leased by the Company and subleased to third-party operators:

	June 30,		December 31,
	2022		2021
Number of facilities leased and subleased to third-parties		1		1
Number of operational beds		68		68

Future minimum operating lease payments under non-cancellable leases as of June 30, 2022, reconciled to the Company’s operating lease liability presented on the consolidated balance sheets:

	(Amounts in $000s)
2022 (six-month period)	$	187
2023		375
2024		375
2025		375
2026		375
Thereafter		468
Total	$	2,155
Less Interest		(238	)
Total operating lease liability	$	1,917

Other Properties leased by the Company

The Company, through one of its subsidiaries, leases its office spaces from related parties. Rental expense under the leases for the six-month periods ended June 30, 2022 and 2021, was $97,000 and $99,000, respectively. Rental expense under the leases for the three-month periods ended June 30, 2022 and 2021, was $46,000 and $49,500, respectively.