Slate Grocery REIT (SGR-UN) Q2 2025 earnings summary

Executive summary

• Achieved strong Q2 2025 results with robust leasing volumes, double-digit rental spreads, and stable 94% occupancy, driving healthy net operating income (NOI) growth.

• Portfolio valued at $2.4B with 116 properties across 23 states and 15.2M SF as of June 30, 2025, 95% of which are grocery-anchored.

• Tenant base includes six of the top seven U.S. grocers, ensuring stable, essential demand.

• Portfolio is concentrated in the U.S. Sunbelt, with 57% of assets in high-growth regions.

• In-place rents are significantly below market, providing runway for long-term revenue growth.

Financial highlights

• Same property NOI increased by $5.7 million or 3.6% on a trailing 12-month basis, with rental revenue up 1.1% year-over-year to $52.4 million for Q2 2025.

• In-place rent per square foot is $12.77, well below the national shopping center average of $24.00.

• Net income declined 6.6% year-over-year to $13.1 million for the quarter.

• FFO per unit was $0.26 (down 10.3% year-over-year); AFFO per unit was $0.21 (down 8.7% year-over-year).

• Total assets at June 30, 2025 were $2.24 billion, up 0.3% from December 31, 2024.

Outlook and guidance

• Forecasts continued strong rental spreads and NOI growth, expecting annual NOI growth of 3%-4% based on leasing pipeline and market conditions.

• Organic growth for 2025 anticipated to be in the historic range or slightly above, supported by strong leasing activity.

• Limited new retail supply and strong tenant demand are expected to support positive fundamentals.

• Management expects continued stable growth and long-term value, supported by below-market rents and favorable supply-demand dynamics in the grocery-anchored sector.

• Online grocery sales are forecasted to grow from 11.4% to 12.4% of total sales by 2027, reinforcing the need for physical stores.