Toronto-based Slate Grocery REIT, an owner and operator of U.S. grocery-anchored real estate, announced on Wednesday its financial results and highlights for the three months ended March 31, 2026.
“Our first quarter results reflect the enduring strength and resilience of grocery-anchored real estate,” said Blair Welch, Chief Executive Officer of Slate Grocery REIT. “We completed over 725,000 square feet of leasing at double-digit rental spreads, highlighting the embedded growth and pricing power within our portfolio. With rents that remain meaningfully below market, a stable balance sheet, and sustained demand for high-quality grocery spaces, we believe we are well-positioned for continued strong performance.”
Rental revenue grew to $59.322 million US in the quarter, an increase of 11.8% from a year ago.
In a letter to unitholders, Welch described the quarter as strong with sustained high leasing volumes at double-digit rental spreads driving continued Net Operating Income growth.
“The REIT completed over 725,000 square feet of total leasing throughout the quarter, achieving strong rent growth on new and renewed leases. Renewal spreads were completed at 18.9% above expiring rents, and new deals were completed at 49.0% above comparable average in-place rent,” he noted.
“Portfolio occupancy at quarter-end remained stable at 94.4%, and we expect our robust pipeline of new leasing opportunities to support continued steady occupancy over the coming quarters.
“High leasing volumes at double-digit rental spreads over the last several quarters are continuing to translate into healthy NOI growth for the REIT. Adjusting for completed redevelopments, same-property NOI increased by 2.1% or $3.5 million on a trailing twelve-month basis.
“The REIT’s average in-place rent of $12.98 per square foot remains well below the market average of $24.591, providing meaningful runway for continued rent increases.”
Welch said the REIT continues to have a strong conviction in the enduring strength and resilience of grocery-anchored real estate.
“Fundamentals in the grocery sector remain favorable, with elevated construction costs and tight lending conditions continuing to limit new retail development and overall retail availability. Today, the vacancy rate for grocery-anchored properties sits at just 4.0% , underscoring the structural undersupply that continues to define the sector. This dynamic translates directly into pricing power for landlords, creating an
environment that supports tenant retention and meaningful increases in rent as leases expire,” he said.
“Grocery-anchored retail remains well-positioned, and we believe these fundamentals, combined with the resilience of consumer spending on food and essential goods, underscore the longterm stability of our portfolio.”
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