Slate Grocery REIT reported second-quarter results Thursday, saying it completed more than 569,000 square feet of leasing activity during the period as it continued to see rental growth across its U.S. grocery-anchored real estate portfolio.
The real estate investment trust said leasing activity during the three months ended June 30, 2026 included renewals completed at higher rents and new agreements above existing in-place rental rates, while maintaining occupancy across its portfolio.
“We continue to have strong conviction in the outlook for our portfolio of high-quality grocery-anchored real estate,” said Blair Welch, Chief Executive Officer of Slate Grocery REIT. “In the second quarter, our team completed over 569,000 square feet of leasing at consistently high rental spreads. With our in-place portfolio rents still meaningfully below market, we believe the REIT is well positioned for continued long-term growth.”
Rent growth and occupancy
The REIT said renewals during the quarter were completed at 16.7 per cent above expiring rents, while new leasing deals were completed at 41.0 per cent above comparable average in-place rent.
Slate Grocery REIT reported that same-property net operating income, adjusted for completed redevelopments, increased by $3.8 million, or 2.3 per cent, in the second quarter on a trailing 12-month basis.
As of June 30, 2026, portfolio occupancy was 93.6 per cent. The REIT said average in-place rent across its properties was $13.10 per square foot, compared with a market average of $24.79 per square foot, leaving room for potential future rent increases.
Debt profile and valuation
The REIT reported that its weighted average interest rate was 5.0 per cent, with 90.2 per cent of its debt carrying fixed interest rates. It said the debt profile provides stability for near-term financing costs.
Slate Grocery REIT said its weighted average capitalization rate remains above its weighted average interest rate on outstanding debt, allowing it to maintain positive leverage. The REIT said the combination of valuation levels and continued growth in net operating income is expected to support portfolio valuation over time.
Portfolio strategy
The REIT owns and operates grocery-anchored real estate in major U.S. metropolitan markets. It said its portfolio includes properties anchored by grocery tenants and that it expects the assets to provide cash flow and potential capital appreciation over the longer term.
Slate Grocery REIT is managed by Slate Asset Management, a global alternative investor and manager focused on essential real estate and infrastructure assets.
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