Slate Grocery REIT, an owner and operator of U.S. grocery-anchored real estate, announced Thursday its financial results and highlights for the three months ended June 30, indicating a continued demand for retail space.
“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. 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,” said Blair Welch, Chief Executive Officer of Slate Grocery REIT.
Highlights
- Several consecutive quarters of strong leasing volumes at attractive spreads continued to drive same-property Net Operating Income growth of 3.6% or $5.7 million on a trailing twelve-month basis, adjusting for completed redevelopments
- The REIT completed 423,894 square feet of total leasing in the quarter; renewals were completed at 13.8% above expiring rents, and new deals were completed at 28.8% above comparable average in-place rent
- Portfolio occupancy remained stable at 94.0% as at June 30, 2025
- The REIT’s average in-place rent of $12.77 per square foot remains well below the market average of $24.00, providing significant runway for continued rent increases
- The REIT has only $171.4 million of debt maturing through the end of 2026, at the REIT’s proportionate interest, which represents just 12.3% of the total debt outstanding and provides a stable outlook for the REIT’s near-term financing costs
- During the second quarter, the REIT refinanced a four-property portfolio for $39.3 million and entered into a credit facility totaling $17.4 million at attractive spreads, highlighting continued demand for high-quality grocery-anchored real estate assets in the lending space
- Subsequent to quarter end, the REIT amended two of its existing interest rate swaps, extending the total maturity to 2.8 years and achieving a blended weighted average interest rate of 5.0% on a proportionate interest basis
- The REIT’s current portfolio valuation continues to provide significant positive leverage; this attractive valuation, combined with continued NOI growth, is expected to increase portfolio valuation over time
- 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 that communities rely upon for their everyday needs.
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