Slate Grocery REIT Reports Second Quarter 2025 Results

Executive Summary

• Slate Grocery REIT reported financial results for the three and six months ended June 30, 2025, highlighting continued same-property NOI growth and strong leasing spreads.
• The REIT achieved a 3.6% increase in trailing twelve-month same-property NOI, driven by sustained demand and double-digit renewal spreads, while maintaining stable portfolio occupancy at 94.0%.
• The company successfully refinanced a four-property portfolio for $39.3 million and entered a new $17.4 million credit facility, while subsequently amending interest rate swaps to extend maturities and achieve a blended weighted average interest rate of 5.0%.

Key Details

• Same-Property NOI Growth: 3.6% growth ($5.7 million increase) on a trailing twelve-month basis, adjusting for completed redevelopments.
• Leasing Activity:
  • Total leasing completed: 423,894 square feet.
  • Renewal spreads: 13.8% above expiring rents.
  • New deal spreads: 28.8% above comparable average in-place rent.
• Occupancy: Portfolio occupancy remained stable at 94.0% as of June 30, 2025.
• Rent Metrics: Average in-place rent is $12.77 per square foot, significantly below the market average of $24.00 per square foot.
• Debt Maturities: Only $171.4 million of debt matures through the end of 2026 (proportionate interest), representing 12.3% of total debt outstanding.
• Refinancing & Credit Facilities:
  • Refinanced a four-property portfolio for $39.3 million during Q2.
  • Entered into a credit facility totaling $17.4 million.
  • Amended two existing interest rate swaps post-quarter end, extending total maturity to 2.8 years with a blended weighted average interest rate of 5.0%.
• Financial Performance (Three Months Ended June 30, 2025):
  • Rental Revenue: $52,385,000 (up 1.1% YoY).
  • NOI: $41,660,000 (up 0.5% YoY).
  • Net Income: $13,081,000 (down 6.6% YoY).
  • Same-Property NOI (3-month): $41,390,000 (up 1.1% YoY).
  • Same-Property NOI (12-month): $159,856,000 (up 3.2% YoY).
  • FFO: $15,883,000 (down 9.1% YoY); FFO per unit: $0.26.
  • AFFO: $12,624,000 (down 10.4% YoY); AFFO per unit: $0.21.
  • AFFO Payout Ratio: 102.7%.
  • Fixed Charge Coverage Ratio: 1.9x.
• Balance Sheet Highlights (June 30, 2025):
  • Total Assets: $2,241,469,000.
  • Total Debt: $1,177,515,000.
  • Net Asset Value per Unit: $13.78.
  • Debt / Gross Book Value Ratio: 52.5%.
  • Number of Properties: 116.

Notable Quotes

• "The strength of our portfolio is reflected in another quarter of healthy same-property NOI growth, supported by sustained demand for our high-quality spaces and consistent double-digit renewal spreads," said Blair Welch, Chief Executive Officer of Slate Grocery REIT. "At the same time, we remain focused on prudently managing the REIT’s balance sheet and upcoming debt maturities. Against a backdrop of favorable fundamentals and attractive supply-demand dynamics in the grocery-anchored sector, we believe our portfolio – anchored by below-market rents – is well positioned to drive stable growth and long-term value."