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

Executive summary

• Achieved strong Q4 and year-end results with 1.7 million sq ft leased in 2025, high rental spreads, and stable 94.4% occupancy.

• Portfolio valued at $2.4B with 115 properties totaling 15.2M SF across 23 states, 96% grocery-anchored.

• 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 strengthened tenant mix and de-levered the portfolio.

Financial highlights

• Same property net operating income increased by $3.3 million, or 2%, on a trailing 12-month basis.

• Q4 2025 rental revenue rose 2.9% year-over-year to $54.6M; NOI up 1.7% to $42.2M.

• Weighted average interest rate at 5%, with over 87% of debt fixed.

• Refinanced an eight-property portfolio for $90 million post-quarter-end, consolidating property-level loans.

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

Outlook and guidance

• Expect continued single-digit NOI growth (2%-5%) in 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 expiring in 2026, supporting stable operations.

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

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