Slate Grocery REIT (SGR-UN) Q1 2026 earnings summary

Executive summary

• Portfolio valued at $2.4B across 115 properties and 15.2M square feet in 23 states, with 95% grocery-anchored assets and a 94.4% occupancy rate as of March 31, 2026.

• Completed over 725,000 sq. ft. of leasing in Q1 2026, with double-digit rental spreads, demonstrating strong portfolio pricing power and embedded growth.

• Focus on necessity-based, defensive grocery real estate with strong tenant demand and limited new supply, supporting resilient performance.

• Top tenants include six of the top seven US grocers by market share, with 95% of properties grocery-anchored and 100% of grocers employing omnichannel distribution.

• Portfolio concentrated in high-growth US Sunbelt markets, with 57% of assets in these regions.

Financial highlights

• Rental revenue rose 11.8% year-over-year to $59.3 million for Q1 2026.

• Net income increased 17.5% year-over-year to $18.9 million.

• In-place rent per square foot is $12.98, significantly below the national shopping center average of $24.59, indicating potential for rent growth.

• Same-property NOI grew 3.1% year-over-year for the quarter and 2.0% on a trailing twelve-month basis.

• FFO per unit declined 3.9% year-over-year to $0.25; AFFO per unit decreased 9.5% to $0.19.

Outlook and guidance

• Management expects continued strong performance, citing below-market rents, stable balance sheet, and sustained demand for grocery-anchored spaces.

• Grocery-anchored real estate expected to benefit from limited new retail supply and strong tenant demand, supporting long-term revenue growth.

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