Slate Grocery REIT Reports Second Quarter 2026 Results

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Postmedia has not reviewed the content. by Business Wire Slate Grocery REIT Reports Second Quarter 2026 ResultsAuthor of the article: You can save this article by registering for free here. Or sign-in if you have an account.TORONTO — 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 and six months ended June 30, 2026.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an Account“We continue to have strong conviction in the outlook for our portfolio of high-quality grocery-anchored real estate,” said Blair Welch, Chief Executive Officer of Slate Grocery REIT. “In the second quarter, our team completed over 569,000 square feet of leasing at consistently high rental spreads. With our in-place portfolio rents still meaningfully below market, we believe the REIT is well positioned for continued long-term growth.”For the CEO’s letter to unitholders for the quarter, please follow the link here.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againThe REIT completed over 569,000 square feet of total leasing throughout the quarter at consistently high rental spreads that continue to drive strong performance Renewals were completed at 16.7% above expiring rents, and new deals were completed at 41.0% above comparable average in-place rentAdjusting for completed redevelopments, same-property Net Operating Income (“NOI”) increased by $3.8 million or 2.3% in the second quarter on a trailing twelve-month basisAs at June 30, 2026, portfolio occupancy was 93.6%The REIT’s average in-place rent of $13.10 per square foot remains well below the market average of $24.792, providing meaningful runway for continued rent increasesThe REIT has a weighted average interest rate of 5.0%, with 90.2% 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 time1 Includes the REIT’s share of joint venture investments. Refer to “Non-IFRS Measures” section below.2 CBRE Econometric Advisors, Q2 2026.Summary of Q2 2026 ResultsThree months ended June 30,(thousands of U.S. dollars, except per unit amounts)20262025Change %Rental revenue$57,932$52,38510.6%NOI 1 2$42,477$41,6602.0%Net income 2$14,334$13,0819.6%Same-property NOI (3 month period, 113 properties) 1 2$41,885$41,1181.9%Same-property NOI (12 month period, 113 properties) 1 2$167,569$164,1612.1%New leasing (square feet) 2134,73833,516302.0%New leasing spread 241.0%28.8%42.4%Total leasing (square feet) 2569,458423,89434.3%Total leasing spread 216.0%11.6%37.9%New leasing – anchor / junior anchor 295,984—100.0%Weighted average number of units outstanding (“WA units”)60,46560,4030.1%FFO 1 2$14,802$15,883(6.8)%FFO per WA units 1 2$0.24$0.26(7.7)%FFO payout ratio 1 287.6%81.6%7.4%AFFO 1 2$11,460$12,624(9.2)%AFFO per WA units 1 2$0.19$0.21(9.5)%AFFO payout ratio 1 2113.1%102.7%10.1%Fixed charge coverage ratio 11.9x1.9x—%(thousands of U.S. dollars, except per unit amounts)June 30, 2026December 31, 2025Change %Total assets$2,374,390$2,357,0800.7%Total assets, proportionate interest 1 2$2,468,321$2,449,2560.8%Debt$1,302,714$1,303,456(0.1)%Debt, proportionate interest 1 2$1,393,098$1,392,1000.1%Net asset value per unit$13.82$13.651.2%Number of properties 2115115—%Portfolio occupancy 293.6%94.4%(0.8)%Debt / GBV ratio54.9%55.3%(0.7)%1 Refer to “Non-IFRS Measures” section below.2 Includes the REIT’s share of joint venture investments.Conference Call and WebcastSenior management will host a live conference call at 9:00 am ET on August 7, 2026 to discuss the results and ongoing business initiatives of the REIT.The conference call can be accessed by dialing (289) 514-5100 or 1 (800) 717-1738. Additionally, the conference call will be available via simultaneous audio found at https://onlinexperiences.com/scripts/Server.nxp?LASCmd=AI:4;F:QS!10100&ShowUUID=C3B07928-00E0-49E7-9E5C-38EFD7A8E4D6&LangLocaleID=1033. A replay will be accessible until August 21, 2026, via the REIT’s website or by dialing (289) 819-1325 or 1 (888) 660-6264 (access code 84668#) approximately two hours after the live event.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 ManagementSlate 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.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 StatementsCertain 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.This advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below.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.This news release and accompanying financial statements are based on IFRS® 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.Calculation and Reconciliation of Non-IFRS MeasuresThe table below summarizes a calculation of non-IFRS measures based on financial information in accordance with IFRS Accounting Standards.Three months ended June 30,(in thousands of U.S. dollars, except per unit amounts)20262025Rental revenue$57,932$52,385Straight-line rent revenue(28)(111)Property operating expenses(10,470)(9,071)IFRIC 21 property tax adjustment(7,492)(6,983)Contribution from joint venture investments2,5355,440NOI 1 2$42,477$41,660Cash flow from operations$20,912$21,187Changes in non-cash working capital items(8,907)(3,761)Other expenses6,328—Finance charge and mark-to-market adjustments(1,336)(1,120)Interest income and TIF note adjustments103141Adjustments for joint venture investments1,0712,748Non-controlling interest(2,871)(3,276)Capital expenditures(1,567)(1,798)Leasing costs(1,076)(803)Tenant improvements(1,197)(694)AFFO 1 2$11,460$12,624Net income 2$14,334$13,081Change in fair value of financial instruments(436)608Other expenses6,328—Change in fair value of properties4,4368,454Deferred income tax expense1,1982,174Unit expense1,7691,122Adjustments for joint venture investments(1,692)1,432Non-controlling interest(3,643)(4,005)IFRIC 21 property tax adjustment(7,492)(6,983)FFO 1 2$14,802$15,883Straight-line rental revenue(28)(111)Capital expenditures(1,567)(1,798)Leasing costs(1,076)(803)Tenant improvements(1,197)(694)Adjustments for joint venture investments(246)(582)Non-controlling interest772729AFFO 1 2$11,460$12,6241 Refer to “Non-IFRS Measures” section above. 2 Includes the REIT’s share of joint venture investments.Three months ended June 30,(in thousands of U.S. dollars, except per unit amounts)20262025NOI 1 2$42,477$41,660General and administrative expenses(4,283)(3,996)Cash interest, net(16,816)(14,419)Finance charge and mark-to-market adjustments(1,336)(1,120)Current income tax expense(407)(238)Adjustments for joint venture investments(1,464)(2,692)Non-controlling interest(2,871)(3,276)Capital expenditures(1,567)(1,798)Leasing costs(1,076)(803)Tenant improvements(1,197)(694)AFFO 1 2$11,460$12,6241 Refer to “Non-IFRS Measures” section above.2 Includes the REIT’s share of joint venture investments.Three months ended June 30,(in thousands of U.S. dollars, except per unit amounts)20262025Net income 1$14,334$13,081Interest and finance costs18,15215,539Change in fair value of financial instruments(436)608Other expenses6,328—Change in fair value of properties4,4368,454Deferred income tax expense1,1982,174Current income tax expense407238Unit expense1,7691,122Adjustments for joint venture investments(541)3,331Straight-line rent revenue(28)(111)IFRIC 21 property tax adjustment(7,492)(6,983)Adjusted EBITDA 1 2$38,127$37,453NOI 1 242,47741,660General and administrative expenses 1 2(4,350)(4,207)Adjusted EBITDA 1 2$38,127$37,453Cash interest paid(17,900)(16,656)Principal payments(2,327)(2,913)Total fixed charges 1$(20,227)$(19,569)Fixed charge coverage ratio 1 21.9x1.9x1 Includes the REIT’s share of joint venture investments. 2 Refer to “Non-IFRS Measures” section above.June 30, 2026December 31, 2025(in thousands of U.S. dollars, except per unit amounts)Statement of Financial PositionJoint Venture InvestmentsProportionate Share (Non-IFRS)Statement of Financial PositionJoint Venture InvestmentsProportionate Share (Non-IFRS)ASSETSNon-current assetsProperties$2,233,133$149,500$2,382,633$2,231,184$147,000$2,378,184Joint venture investments62,274(62,274)—63,138(63,138)—Interest rate swaps5,2382755,513———Other assets3,206—3,2063,379—3,379$2,303,851$87,501$2,391,352$2,297,701$83,862$2,381,563Current assetsCash24,8212,49627,31721,8192,79824,617Accounts receivable22,1891,29623,48524,7741,11725,891Property held for sale16,600—16,600———Other assets4,3092,2596,5686,9803,90410,884Prepaids2,4693792,8485,8064956,301Interest rate swaps151—151———$70,539$6,430$76,969$59,379$8,314$67,693Total assets$2,374,390$93,931$2,468,321$2,357,080$92,176$2,449,256LIABILITIESNon-current liabilitiesDebt$1,277,962$54,249$1,332,211$1,225,490$37,042$1,262,532Interest rate swaps———2,655—2,655Deferred income taxes164,835—164,835157,211—157,211Other liabilities4,8914935,3844,7934885,281$1,447,688$54,742$1,502,430$1,390,149$37,530$1,427,679Current liabilitiesDebt24,75236,13560,88777,96651,602129,568Accounts payable and accrued liabilities47,3373,05450,39139,8803,04442,924Exchangeable units of subsidiaries9,216—9,2168,612—8,612Distributions payable4,321—4,3214,323—4,323$85,626$39,189$124,815$130,781$54,646$185,427Total liabilities$1,533,314$93,931$1,627,245$1,520,930$92,176$1,613,106EQUITYUnitholders’ equity$661,317$—$661,317$659,124$—$659,124Non-controlling interest179,759—179,759177,026—177,026Total equity$841,076$—$841,076$836,150$— $836,150Total liabilities and equity$2,374,390$93,931$2,468,321$2,357,080$92,176$2,449,256Three months ended June 30, 2026Three months ended June 30, 2025Statement of IncomeJoint Venture InvestmentsProportionate Share (Non-IFRS)Statement of IncomeJoint Venture InvestmentsProportionate Share (Non-IFRS)Rental revenue$57,932$4,114$62,046$52,385$8,320$60,705Property operating expenses(10,470)(751)(11,221)(9,071)(1,484)(10,555)General and administrative expenses(4,283)(67)(4,350)(3,996)(211)(4,207)Interest and finance costs(18,152)(1,161)(19,313)(15,539)(1,899)(17,438)Share of income in joint venture investments3,009(3,009)—1,898(1,898)—Other expenses(6,328)—(6,328)———Change in fair value of financial instruments436245681(608)(78)(686)Change in fair value of properties(4,436)629(3,807)(8,454)(2,750)(11,204)Net income before income taxes and unit expense$17,708$—$17,708$16,615$—$16,615Deferred income tax expense(1,198)—(1,198)(2,174)—(2,174)Current income tax expense(407)—(407)(238)—(238)Unit expense(1,769)—(1,769)(1,122)—(1,122)Net income$14,334$—$14,334$13,081$—$13,081Net income attributable toUnitholders$9,764$—$9,764$9,763$—$9,763Non-controlling interest4,570—4,5703,318—3,318Net Income$14,334$—$14,334$13,081$—$13,081View source version on businesswire.com: Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. 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