TORONTO--(BUSINESS WIRE)--May 12, 2026--
Slate Grocery REIT (TSX: SGR.U) (TSX: SGR.UN) (the "REIT"), an owner and operator of U.S. grocery-anchored real estate, today announced its financial results and highlights for the three months ended March 31, 2026.
"Our first quarter results reflect the enduring strength and resilience of grocery-anchored real estate," said Blair Welch, Chief Executive Officer of Slate Grocery REIT. "We completed over 725,000 square feet of leasing at double-digit rental spreads, highlighting the embedded growth and pricing power within our portfolio. With rents that remain meaningfully below market, a stable balance sheet, and sustained demand for high-quality grocery spaces, we believe we are well-positioned for continued strong performance."
For the CEO's letter to unitholders for the quarter, please follow the link here.
Highlights(1)
-- The REIT completed over 725,000 square feet of total leasing throughout
the quarter at consistently high rental spreads that continue to drive
strong performance
-- Renewals were completed at 18.9% above expiring rents, and new
deals were completed at 49.0% above comparable average in-place
rent
-- Adjusting for completed redevelopments, same-property Net
Operating Income ("NOI") increased by 3.5 million or 2.1% in the
first quarter on a trailing twelve-month basis
-- Portfolio occupancy remained stable at 94.4% as at March 31,
2026
-- The REIT's average in-place rent of $12.98 per square foot
remains well below the market average of $24.592, providing
meaningful runway for continued rent increases
-- The REIT has a weighted average interest rate of 5.0%1, with 90.2%1 of
its debt having a fixed interest rate, providing a stable outlook for the
REIT's near term financing costs
-- The REIT's weighted average capitalization rate remains well
above its weighted average interest rate for outstanding debt,
allowing the REIT to maintain positive leverage; this attractive
valuation, combined with continued NOI growth, is expected to
increase portfolio valuation over time
(1) Includes the REIT's share of joint venture investments. Refer to "Non-IFRS
Measures" section below.
(2) CBRE Econometric Advisors, Q1 2026.
Summary of Q1 2026 Results
Three months ended March 31,
------------------------------------------------
(thousands of U.S.
dollars, except per
unit amounts) 2026 2025 Change %
---------------------- --- ------------ --------------- --------
Rental revenue $ 59,322 $ 53,067 11.8%
NOI (1 2) $ 42,478 $ 41,239 3.0%
Net income (2) $ 18,897 $ 16,082 17.5%
Same-property NOI (3
month period, 113
properties) (1 2) $ 41,892 $ 40,647 3.1%
Same-property NOI (12
month period, 113
properties) (1 2) $ 166,802 $ 163,575 2.0%
New leasing (square
feet) (2) 113,272 43,098 162.8%
New leasing spread (2) 49.0% 22.2% 120.7%
Total leasing (square
feet) (2) 725,657 222,886 225.6%
Total leasing spread
(2) 15.3% 15.6% (1.9)%
New leasing -- anchor /
junior anchor (2) 59,480 11,000 440.7%
Weighted average number
of units outstanding
("WA units") 60,448 60,385 0.1%
FFO (1 2) $ 15,043 $ 15,757 (4.5)%
FFO per WA units (1 2) $ 0.25 $ 0.26 (3.9)%
FFO payout ratio (1 2) 86.2% 82.3% 4.7%
AFFO (1 2) $ 11,593 $ 12,388 (6.4)%
AFFO per WA units (1 2) $ 0.19 $ 0.21 (9.5)%
AFFO payout ratio (1 2) 111.9% 104.7% 6.9%
Fixed charge coverage
ratio (1) 1.9x 1.9x -- %
---------------------- ---------------- ------------------- --------
(thousands of U.S.
dollars, except per
unit amounts) March 31, 2026 December 31, 2025 Change %
---------------------- ----------------- ------------------- --------
Total assets $ 2,367,702 $ 2,357,080 0.5%
Total assets,
proportionate interest
(1 2) $ 2,462,409 $ 2,449,256 0.5%
Debt $ 1,303,096 $ 1,303,453 -- %
Debt, proportionate
interest (1 2) $ 1,393,814 $ 1,392,097 0.1%
Net asset value per
unit $ 13.79 $ 13.65 1.0%
Number of properties
(2) 115 115 -- %
Portfolio occupancy (2) 94.4% 94.4% -- %
Debt / GBV ratio 55.0% 55.3 % (0.5)%
----------------------- ------------ --------------- --------
(1) Refer to "Non-IFRS Measures" section below.
(2) Includes the REIT's share of joint venture investments.
Conference Call and Webcast
Due to scheduling considerations, senior management will be foregoing the previously announced live conference call scheduled for 9:00 am ET on Wednesday, May 13, 2026. The REIT's financial results and supplemental materials have been filed on SEDAR+ and are also available on the REIT's website in the Investors section. For any questions related to the REIT's financial results or ongoing business initiatives, please contact the REIT's investor relations ream at ir@slateam.com or (416) 644-4264.
About Slate Grocery REIT (TSX: SGR.U / SGR.UN)
Slate Grocery REIT is an owner and operator of U.S. grocery-anchored real estate. The REIT owns and operates critical real estate infrastructure across major U.S. metro markets that communities rely upon for their everyday needs. The REIT's resilient grocery-anchored portfolio and strong credit tenants are expected to provide unitholders with durable cash flows and the potential for capital appreciation over the longer term. Visit slategroceryreit.com to learn more about the REIT.
About Slate Asset Management
Slate Asset Management is a global alternative investor and manager focused on essential real estate and infrastructure assets. We focus on fundamentals with the objective of creating long-term value for our investors and partners across the real estate space. We are supported by exceptional people and flexible capital, which enable us to originate and execute on a wide range of compelling investment opportunities. Visit slateam.com to learn more, and follow Slate Asset Management on LinkedIn, X (Twitter), and Instagram.
Supplemental Information
All interested parties can access Slate Grocery's Supplemental Information online at slategroceryreit.com in the Investors section. These materials are also available on SEDAR+ or upon request to the REIT at info@slateam.com or (416) 644-4264.
Forward Looking Statements
Certain information herein constitutes "forward-looking information" as defined under Canadian securities laws which reflect management's expectations regarding objectives, plans, goals, strategies, future growth, results of operations, performance, business prospects and opportunities of the REIT. The words "plans", "expects", "does not expect", "forecasts", "scheduled", "estimates", "intends", "anticipates", "does not anticipate", "projects", "believes", or variations of such words and phrases or statements to the effect that certain actions, events or results "may", "will", "could", "would", "might", "occur", "be achieved", or "continue" and similar expressions identify forward-looking statements. Management believes that the expectations reflected in its forward-looking statements are based upon reasonable assumptions, however, management can give no assurance that actual results, performance or achievements will be consistent with these forward-looking statements. Such forward-looking statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations.
Forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable by management as of the date hereof, are inherently subject to significant business, economic and competitive uncertainties and contingencies. When relying on forward-looking statements to make decisions, the REIT cautions readers not to place undue reliance on these statements, as forward-looking statements involve significant risks and uncertainties, and should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not the times at or by which such performance or results will be achieved. A number of factors could cause actual results to differ, possibly materially, from the results discussed in the forward-looking statements. Additional information about risks and uncertainties is contained in the filings of the REIT with securities regulators.
Non-IFRS Measures
This news release and accompanying financial statements are based on IFRS$(R)$ Accounting Standards ("IFRS Accounting Standards"), as issued by the International Accounting Standards Board ("IASB").
We disclose a number of financial measures in this news release that are not measures used under IFRS Accounting Standards, including NOI, same-property NOI, FFO, FFO payout ratio, AFFO, AFFO payout ratio, adjusted EBITDA, fixed charges and the fixed charge coverage ratio, in addition to certain measures on a per unit basis.
-- NOI is defined as rental revenue less operating expenses, prior to
straight-line rent, International Financial Reporting Interpretations
Committee ("IFRIC") 21, Levies ("IFRIC 21") property tax adjustments and
adjustments for equity investments. Same-property NOI includes those
properties owned by the REIT for each of the current period and the
relevant comparative period, excluding those properties under
development.
-- FFO is defined as net income adjusted for certain items including
transaction/disposition costs, change in fair value of properties, change
in fair value of financial instruments, deferred income taxes, unit
income (expense), adjustments for equity investments, IFRIC 21 property
tax adjustments and other expenses.
-- AFFO is defined as FFO adjusted for straight-line rental revenue and
revenue sustaining capital, leasing costs and tenant improvements.
-- FFO payout ratio and AFFO payout ratio are defined as distributions
declared divided by FFO and AFFO, respectively.
-- FFO per WA unit and AFFO per WA unit are defined as FFO and AFFO
divided by the weighted average class U equivalent units outstanding,
respectively.
-- Adjusted EBITDA is defined as NOI less general and administrative
expenses at the REIT's proportionate interest.
-- Fixed charges include principal payments and cash interest paid, net at
the REIT's proportionate interest.
-- Fixed charge coverage ratio is defined as adjusted EBITDA divided by
fixed charges at the REIT's proportionate interest.
-- Net asset value is defined as the aggregate of the carrying value of
the REIT's equity, deferred income taxes and exchangeable units of
subsidiaries.
-- Proportionate interest represents financial information adjusted to
reflect the REIT's equity accounted joint ventures and financial real
estate assets and its share of net income (losses) from equity accounted
joint ventures and financial real estate assets on a proportionately
consolidated basis at the REIT's ownership percentage of the related
investment.
We utilize these measures for a variety of reasons, including measuring performance, managing the business, capital allocation and the assessment of risk. Descriptions of why these non-IFRS measures are useful to investors and how management uses each measure are included in Management's Discussion and Analysis. We believe that providing these performance measures on a supplemental basis to our IFRS Accounting Standards results is helpful to investors in assessing the overall performance of our businesses in a manner similar to management. These financial measures should not be considered as a substitute for similar financial measures calculated in accordance with IFRS Accounting Standards. We caution readers that these non-IFRS financial measures may differ from the calculations disclosed by other businesses, and as a result, may not be comparable to similar measures presented by others.
SGR-FR
Calculation and Reconciliation of Non-IFRS Measures
The table below summarizes a calculation of non-IFRS measures based on financial information in accordance with IFRS Accounting Standards.
Three months ended March 31,
---------------------------------
(in thousands of U.S. dollars, except
per unit amounts) 2026 2025
------------------------------------- ------------- ------------
Rental revenue $ 59,322 $ 53,067
Straight-line rent revenue (302) (201)
Property operating expenses (41,690) (38,071)
IFRIC 21 property tax adjustment 22,773 20,867
Contribution from joint venture
investments 2,375 5,577
-------------------------------------- ------------- ------------
NOI (1 2) $ 42,478 $ 41,239
-------------------------------------- ------------- ------------
Cash flow from operations $ 24,095 $ 19,559
Changes in non-cash working capital
items (6,356) (2,543)
Other expenses 1,080 --
Finance charge and mark-to-market
adjustments (1,327) (1,014)
Interest income and TIF note
adjustments 109 155
Adjustments for joint venture
investments 829 2,763
Non-controlling interest (3,062) (3,232)
Capital expenditures (1,481) (1,169)
Leasing costs (1,158) (633)
Tenant improvements (1,136) (1,498)
-------------------------------------- ------------- ------------
AFFO (1 2) $ 11,593 $ 12,388
-------------------------------------- ------------- ------------
Net income (2) $ 18,897 $ 16,082
Change in fair value of financial
instruments (707) 1,214
Other expenses 1,080 --
Change in fair value of properties (27,297) (20,299)
Deferred income tax expense 4,759 3,035
Unit (income) expense (94) 452
Adjustments for joint venture
investments (490) (1,605)
Non-controlling interest (3,878) (3,989)
IFRIC 21 property tax adjustment 22,773 20,867
-------------------------------------- ------------- ------------
FFO (1 2) $ 15,043 $ 15,757
Straight-line rental revenue (302) (201)
Capital expenditures (1,481) (1,169)
Leasing costs (1,158) (633)
Tenant improvements (1,136) (1,498)
Adjustments for joint venture
investments (189) (625)
Non-controlling interest 816 757
-------------------------------------- ------------- ------------
AFFO (1 2) $ 11,593 $ 12,388
-------------------------------------- ------------- ------------
(1) Refer to "Non-IFRS Measures"
section above. (2) Includes the
REIT's share of joint venture
investments.
Three months ended March 31,
---------------------------------
(in thousands of U.S. dollars, except
per unit amounts) 2026 2025
------------------------------------- ------------- ------------
NOI (1 2) $ 42,478 $ 41,239
General and administrative expenses (4,038) (4,198)
Cash interest, net (16,643) (14,226)
Finance charge and mark-to-market
adjustments (1,327) (1,014)
Current income tax expense (494) (67)
Adjustments for joint venture
investments (1,546) (2,814)
Non-controlling interest (3,062) (3,232)
Capital expenditures (1,481) (1,169)
Leasing costs (1,158) (633)
Tenant improvements (1,136) (1,498)
-------------------------------------- ------------- ------------
AFFO (1 2) $ 11,593 $ 12,388
-------------------------------------- ------------- ------------
(1) Refer to "Non-IFRS Measures"
section above.
(2) (Includes the REIT's share of
joint venture investments.)
Three months ended March 31,
---------------------------------
(in thousands of U.S. dollars, except
per unit amounts) 2026 2025
------------------------------------- ------------- ------------
Net income (1) $ 18,897 $ 16,082
Interest and finance costs 17,970 15,240
Change in fair value of financial
instruments (707) 1,214
Other expenses 1,080 --
Change in fair value of properties (27,297) (20,299)
Deferred income tax expense 4,759 3,035
Current income tax expense 494 67
Unit (income) expense (94) 452
Adjustments for joint venture
investments 767 286
Straight-line rent revenue (302) (201)
IFRIC 21 property tax adjustment 22,773 20,867
-------------------------------------- ------------- ------------
Adjusted EBITDA (1 2) $ 38,340 $ 36,743
-------------------------------------- ------------- ------------
NOI (1 2) 42,478 41,239
General and administrative expenses (1
2) (4,138) (4,496)
-------------------------------------- ------------- ------------
Adjusted EBITDA (1 2) $ 38,340 $ 36,743
Cash interest paid (17,819) (16,452)
Principal payments (2,305) (2,854)
-------------------------------------- ------------- ------------
Total fixed charges (1) $ (20,124) $ (19,306)
-------------------------------------- ------------- ------------
Fixed charge coverage ratio (1 2) 1.9x 1.9x
-------------------------------------- ----------------- -------------
(1) Includes the REIT's share of joint
venture investments.
(2) Refer to "Non-IFRS Measures"
section above.
March 31, 2026 December 31, 2025
------------------------------------------ -----------------------------------------
(in thousands of Statement Statement
U.S. dollars, of Joint Proportionate of Joint Proportionate
except per unit Financial Venture Share Financial Venture Share
amounts) Position Investments (Non-IFRS) Position Investments (Non-IFRS)
---------------- ----------- ------------ --------------- ---------- ------------ ---------------
ASSETS
Non-current
assets
Properties $2,226,138 $ 147,800 $ 2,373,938 $2,231,184 $ 147,000 $ 2,378,184
Joint venture
investments 62,368 (62,368) -- 63,138 (63,138) --
Interest rate
swaps 1,624 31 1,655 -- -- --
Other assets 3,203 -- 3,203 3,379 -- 3,379
----------------- --------- ----------- ----------- --------- ----------- -----------
$2,293,333 $ 85,463 $ 2,378,796 $2,297,701 $ 83,862 $ 2,381,563
Current assets
Cash 25,153 2,481 27,634 21,819 2,798 24,617
Accounts
receivable 24,492 1,407 25,899 24,774 1,117 25,891
Property held for
sale 16,200 -- 16,200 -- -- --
Other assets 3,400 4,345 7,745 6,980 3,904 10,884
Prepaids 5,021 1,011 6,032 5,806 495 6,301
Interest rate
swaps 103 -- 103 -- -- --
----------------- --------- ----------- ----------- --------- ----------- -----------
$ 74,369 $ 9,244 $ 83,613 $ 59,379 $ 8,314 $ 67,693
---------------- --------- ----------- ----------- --------- ----------- -----------
Total assets $2,367,702 $ 94,707 $ 2,462,409 $2,357,080 $ 92,176 $ 2,449,256
----------------- --------- ----------- ----------- --------- ----------- -----------
LIABILITIES
Non-current
liabilities
Debt $1,295,336 $ 54,400 $ 1,349,736 $1,225,490 $ 37,042 $ 1,262,532
Interest rate
swaps 322 -- 322 2,655 -- 2,655
Deferred income
taxes 162,778 -- 162,778 157,211 -- 157,211
Other liabilities 4,930 492 5,422 4,793 488 5,281
----------------- --------- ----------- ----------- --------- ----------- -----------
$1,463,366 $ 54,892 $ 1,518,258 $1,390,149 $ 37,530 $ 1,427,679
Current
liabilities
Debt 7,760 36,318 44,078 77,966 51,602 129,568
Accounts payable
and accrued
liabilities 42,517 3,497 46,014 39,880 3,044 42,924
Exchangeable
units of
subsidiaries 8,443 -- 8,443 8,612 -- 8,612
Distributions
payable 4,323 -- 4,323 4,323 -- 4,323
----------------- --------- ----------- ----------- --------- ----------- -----------
$ 63,043 $ 39,815 $ 102,858 $ 130,781 $ 54,646 $ 185,427
---------------- --------- ----------- ----------- --------- ----------- -----------
Total liabilities $1,526,409 $ 94,707 $ 1,621,116 $1,520,930 $ 92,176 $ 1,613,106
----------------- --------- ----------- ----------- --------- ----------- -----------
EQUITY
Unitholders'
equity $ 662,469 $ -- $ 662,469 $ 659,124 $ -- $ 659,124
Non-controlling
interest 178,824 -- 178,824 177,026 -- 177,026
----------------- --------- ----------- ----------- --------- ----------- -----------
Total equity $ 841,293 $ -- $ 841,293 $ 836,150 $ -- $ 836,150
----------------- --------- ----------- ----------- --------- ----------- -----------
Total liabilities
and equity $2,367,702 $ 94,707 $ 2,462,409 $2,357,080 $ 92,176 $ 2,449,256
----------------- --------- ----------- ----------- --------- ----------- -----------
Three months ended March 31, 2026 Three months ended March 31, 2025
------------------------------------------ -----------------------------------------
Joint Proportionate Joint Proportionate
Statement Venture Share Statement Venture Share
of Income Investments (Non-IFRS) of Income Investments (Non-IFRS)
---------------- ----------- ------------ --------------- ---------- ------------ ---------------
Rental revenue $ 59,322 $ 4,116 $ 63,438 $ 53,067 $ 8,527 $ 61,594
Property
operating
expenses (41,690) (4,319) (46,009) (38,071) (7,158) (45,229)
General and
administrative
expenses (4,038) (100) (4,138) (4,198) (298) (4,496)
Interest and
finance costs (17,970) (1,247) (19,217) (15,240) (1,891) (17,131)
Share of income
in joint venture
investments 1,508 (1,508) -- 4,993 (4,993) --
Other expenses (1,080) -- (1,080) -- -- --
Change in fair
value of
financial
instruments 707 31 738 (1,214) (81) (1,295)
Change in fair
value of
properties 27,297 3,027 30,324 20,299 5,894 26,193
----------------- --------- ----------- --- ---------- --------- ----------- --- ----------
Net income before
income taxes and
unit expense $ 24,056 $ -- $ 24,056 $ 19,636 $ -- $ 19,636
Deferred income
tax expense (4,759) -- (4,759) (3,035) -- (3,035)
Current income
tax expense (494) -- (494) (67) -- (67)
Unit income
(expense) 94 -- 94 (452) -- (452)
----------------- --------- ----------- --- ---------- --------- ----------- --- ----------
Net income $ 18,897 $ -- $ 18,897 $ 16,082 $ -- $ 16,082
----------------- --------- ----------- --- ---------- --------- ----------- --- ----------
Net income
attributable to
Unitholders $ 14,374 $ -- $ 14,374 $ 12,302 $ -- $ 12,302
Non-controlling
interest 4,523 -- 4,523 3,780 -- 3,780
----------------- --------- ----------- --- ---------- --------- ----------- --- ----------
Net Income $ 18,897 $ -- $ 18,897 $ 16,082 $ -- $ 16,082
----------------- --------- ----------- --- ---------- --------- ----------- --- ----------
View source version on businesswire.com: https://www.businesswire.com/news/home/20260512807996/en/
CONTACT: For Further Information
Investor Relations
Tel: +1 416 644 4264
E-mail: ir@slateam.com
(END) Dow Jones Newswires
May 12, 2026 17:28 ET (21:28 GMT)