Slate Grocery REIT, an owner and operator of U.S. grocery-anchored real estate, announced Monday its financial results and highlights for the three months ended March 31, 2025, indicating the strength of grocery-anchored real estate.
“Grocery anchored real estate has proven its resiliency through various economic cycles, and we continue to have great conviction in the ability of this asset class to perform in today’s economic environment,” said Blair Welch, Chief Executive Officer of Slate Grocery REIT.
“Our portfolio continues to deliver healthy growth in same-property net operating income, driven by consistently strong leasing activity at double-digit spreads. Our team achieved record high renewal spreads in the first quarter, underscoring the growth embedded in our portfolio of below market rents. With new supply in the grocery-anchored sector expected to remain constrained in the near to medium term, we believe our portfolio is well positioned to drive stable growth and long-term value creation.”
The CEO’s letter to unitholders for the quarter can be found here.
Slate’s Q1 Highlights
- Same-property Net Operating Income (“NOI”) increased by 4.3% or $6.8 million on a trailing twelve-month basis, adjusting for completed redevelopments, driven by several consecutive quarters of strong leasing volumes at attractive spreads
- The REIT completed 222,886 square feet of total leasing in the quarter; renewal spreads reached a record high at 17.1% above expiring rents, and new deals were completed at 22.2% above comparable average in-place rent
- Portfolio occupancy remained stable at 94.4%, as at March 31, 2025
- The REIT’s average in-place rent of $12.72 per square foot remains well below the market average of $23.85, providing significant runway for continued rent increases
- The REIT has only $179.4 million of debt maturing in 2025, which represents 12.9% of the REIT’s total debt
- The REIT financed $17.4 million of debt subsequent to quarter end, with productive discussions underway to refinance additional upcoming maturities
- The REIT’s current portfolio valuation continues to provide significant positive leverage and embedded NOI growth
- The REIT’s units continue to trade at a discount to net asset value, presenting a compelling investment opportunity for unitholders looking for an attractive total return
Slate Grocery REIT is an owner and operator of U.S. grocery-anchored real estate. The REIT owns and operates approximately $2.4 billion of critical real estate infrastructure across major U.S. metro markets.
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