Slate Grocery REIT Reports Third Quarter 2025 Results
Executive Summary
- Slate Grocery REIT reported Q3 2025 net income of $11.2 M, a 55% increase versus the same quarter last year, driven by higher rental revenue and NOI growth.
- Total leasing activity in the quarter was 417,145 sq ft at double‑digit spreads; renewals were 15.1% above expiring rents and new deals 34.8% above comparable in‑place rent.
- Same‑property NOI rose $4.3 M (2.7%) on a trailing‑twelve‑month basis, while occupancy held steady at 94.3%.
Key Details
- Rental Revenue: $53.3 M (+1.9% YoY)
- Net Operating Income (NOI): $43.0 M (+2.6% YoY)
- Same‑Property NOI (12‑mo): $164.8 M (+2.8% YoY)
- Net Income: $11.2 M vs. $7.25 M last year (+55%)
- FFO: $16.5 M (−6.1% YoY); AFFO: $13.0 M (−9.2% YoY)
- Weighted‑Average Units Outstanding: 60,419 (↑0.1%)
- FFO Payout Ratio: 78.7% (up from 73.9%)
- AFFO Payout Ratio: 99.9% (up from 90.7%)
- Fixed Charge Coverage Ratio: 1.9× (down from 2.0×)
Leasing Activity
* New leasing: 74,104 sq ft (‑40.2% YoY) at a spread of 34.8% above comparable in‑place rent (↑40.3%).
Total leasing (new + renewals): 417,145 sq ft (‑51.0% YoY) with an overall spread of 14.4%* (↑69.4%).
Balance Sheet Highlights
* Total assets: $2.258 B (+1.1%)
Debt: $1.197 B (+2.6%); 90.4% fixed‑rate, weighted average interest rate 5.0%.
Net asset value per unit: $13.73 (−0.8% YoY)
Capital Structure
* Two interest‑rate swap contracts amended – total notional $312.5 M, extending weighted‑average maturity to 2.6 years and pay‑fixed rate to 3.5%.
* Debt/GBV ratio: 53.0% (up from 52.2%).
Operational Metrics
* Portfolio occupancy: 94.3% (down 0.5 pts YoY).
* Average in‑place rent: $12.82 psf vs. market average $24.09 psf, indicating upside potential for future rent escalations.
Conference Call * Live call scheduled Nov 6 2025 at 9:00 am ET; replay available until Nov 20 2025.
Notable Quotes
“We are pleased to share another quarter of strong results…over 417,000 square feet of deals completed in the third quarter at double‑digit rental spreads,” – Blair Welch, CEO.
All forward‑looking statements are subject to risks and uncertainties detailed in the full release.