Slate Grocery REIT (SGR-UN) Q4 2025 earnings summary

Executive summary

• Portfolio valued at $2.4B with 115 properties totaling 15.2M SF across 23 states as of December 31, 2025, with 96% grocery-anchored and 94.4% occupancy.

• Achieved 1.7 million sq ft of total leasing in 2025, with renewal spreads at 14.9% above expiring rents and new leases at 34.9% above average in-place rent.

• In-place rent per square foot is $12.86, significantly below the national shopping center average, providing upside potential.

• Portfolio is concentrated in high-growth U.S. Sunbelt markets, with 57% of GLA in these regions.

• Proactive balance sheet management and strategic transactions have strengthened tenant mix and supported deleveraging.

Financial highlights

• Q4 2025 rental revenue rose 2.9% year-over-year to $54.6M; NOI up 1.7% to $42.2M; same property NOI increased by $3.3M or 2% on a trailing 12-month basis.

• Net income for Q4 was $13.1M, down 17% year-over-year; FFO per unit flat at $0.25; AFFO per unit declined 5% to $0.19.

• Total assets increased 5.5% year-over-year to $2.36B; debt rose 11.7% to $1.3B.

• Portfolio in-place rent PSF is $12.86, compared to the national shopping center average of $24.34.

• Trading at a 15.6% discount to NAV, with historical total returns outperforming US and Canadian REIT averages over 1, 3, and 5-year periods.

Outlook and guidance

• Anticipates continued single-digit NOI growth (2%-5%) over the coming years, driven by strong leasing spreads and market demand.

• In-place rents below market and low vacancy rates provide a runway for long-term revenue growth.

• Less than 10% of gross leasable area is expiring in 2026, supporting a stable leasing outlook.

• Expects more acquisition activity in 2026 as market participants adjust to current financing and cap rate conditions.

• Online grocery sales are forecasted to grow to 12.4% of total sales by 2027, supporting omnichannel distribution.