Slate Grocery REIT (SGR-UN) Q1 2025 earnings summary

Executive summary

• Portfolio valued at $2.4B with 116 properties across 23 states, totaling 15.2M SF and 95% grocery-anchored occupancy as of March 31, 2025.

• Achieved strong Q1 2025 results with robust leasing volumes, double-digit rental spreads, and stable occupancy at 94.4%.

• Record renewal spreads of 17.1% above expiring rents and new deals at 22.2% above average in-place rent.

• Average in-place rent of $12.72 per sq ft is significantly below the market average, providing upside potential.

• Portfolio is concentrated in the U.S. Sunbelt, with 57% of assets in high-growth regions and a tenant base including six of the top seven U.S. grocers.

Financial highlights

• Same property net operating income increased by $6.8 million, or 4.3%, on a trailing 12-month basis, with rental revenue up 2.2% to $53.1 million and net income up 18.1% to $16.1 million for Q1 2025.

• FFO per unit was $0.26, down 3.2% year-over-year; AFFO per unit was $0.21, down 2.9%.

• FFO payout ratio increased to 82.3% from 80.1% year-over-year; AFFO payout ratio increased to 104.7% from 99.4%.

• Total assets stood at $2.24 billion as of March 31, 2025.

• 94.4% occupancy rate and 4.8-year weighted average lease term as of Q1 2025.

Outlook and guidance

• Expect continued strong demand for space, supported by low in-place rents, high construction costs limiting new retail supply, and necessity-based demand.

• In-place rents below market provide runway for long-term revenue and NOI growth.

• Management expects constrained new supply in the grocery-anchored sector, supporting stable growth and long-term value.