Toronto-based Slate Grocery REIT, an owner and operator of U.S. grocery-anchored real estate, has announced its financial results and highlights for the three and twelve months ended December 31, 2025, noting it completed 1.7 million square feet of total leasing throughout the year.
“Our fourth quarter and year-end results underscore the resilience of grocery-anchored real estate, even amid an evolving macroeconomic environment,” said Blair Welch, Chief Executive Officer of Slate Grocery REIT.
“Throughout 2025, our team maintained exceptional momentum, delivering high leasing volumes and double-digit rental spreads that exceed our 2024 benchmarks. At the same time, by proactively managing our balance sheet, we believe we have secured near-term financing stability that will help position the portfolio for continued long-term performance.”
For the CEO’s letter to unitholders for the quarter, please follow the link here.
Slate noted these highlights:
- The REIT completed 1.7 million square feet of total leasing throughout the year at consistently high rental spreads that continue to drive strong performance
- Renewals were completed at 14.9% above expiring rents, and new deals were completed at 34.9% above comparable average in-place rent
- Adjusting for completed redevelopments, same-property Net Operating Income increased by $3.3 million or 2.0% in the fourth quarter on a trailing twelve-month basis
- Portfolio occupancy remained stable at 94.4% as at December 31, 2025
- The REIT’s average in-place rent of $12.86 per square foot remains well below the market average of $24.34, providing meaningful runway for continued rent increases
- The REIT has a weighted average interest rate of 5.0%, with 87.8% of its debt having a fixed interest rate, providing a stable outlook for the REIT’s near term financing costs
- Subsequent to quarter end, the REIT refinanced an eight-property portfolio for $90.0 million to consolidate a portfolio of existing property-level mortgage loans, highlighting the continued demand for high-quality grocery-anchored real estate assets among lenders
- The REIT’s weighted average capitalization rate remains well above the REIT’s weighted average interest rate for outstanding debt, allowing the REIT to maintain positive leverage; this attractive valuation, combined with continued NOI growth, is expected to increase portfolio valuation over time
- During the fourth quarter, the REIT completed two strategic transactions to strengthen tenant mix and further de-lever the portfolio
- On December 1, 2025, the REIT acquired the remaining minority interest in a 10-asset joint venture portfolio for cash consideration of $5.7 million, bringing its ownership to 100% of the portfolio and providing the REIT with enhanced refinancing flexibility and the ability to fully capture further mark-to-market opportunities
- On December 9, 2025, the REIT strategically disposed of a non-grocery anchored property located in Flower Mound, Texas, using proceeds from the sale to de-lever the REIT’s portfolio
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