Slate Grocery REIT Q2 2026 Earnings Report

Slate Grocery REIT EPS Results

• Actual EPS: C$0.23
• Consensus EPS: N/A
• Beat/Miss: N/A
• One Year Ago EPS: N/A

Slate Grocery REIT Revenue Results

• Actual Revenue: $82.31 million
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

Slate Grocery REIT Announcement Details

• Quarter: Q2 2026
• Date: 8/6/2026
• Time: After Market Closes
• Conference Call Date: Friday, August 7, 2026
• Conference Call Time: 9:00AM ET

Slate Grocery REIT (TSE:SGR.UN) is an owner and operator of U.S. grocery-anchored real estate. The REIT owns and operates critical real estate infrastructure across major U.S. metro markets that communities rely upon for their daily needs. The REIT's resilient grocery-anchored portfolio and strong credit tenants are expected to provide unitholders with durable cash flows and the potential for capital appreciation over the longer term.

Slate Grocery REIT Q2 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Leasing momentum remained strong: The REIT completed more than 569,000 square feet of leasing, with renewal spreads of 16.7% and new leases 41% above comparable in-place rents.
• Positive Sentiment: Adjusted same-property NOI increased 2.3% year over year, while management said grocery-anchored retail fundamentals remain supported by limited new development and constrained retail availability.
• Neutral Sentiment: Portfolio occupancy was 93.6%, following approximately 260,000 square feet of vacancies during the quarter; management said four of the 10 largest vacancies have already been leased or are progressing through active negotiations.
• Positive Sentiment: The REIT reported a 5% weighted-average interest rate, with more than 90% of debt fixed, supporting near-term financing-cost stability and continued positive leverage.
• Neutral Sentiment: The strategic review remains ongoing with no update provided. One property, Heritage Heights, was held for sale at quarter-end and is expected to close in the next few weeks and be reported in the third quarter.

Presentation

[Operator]

Good morning, ladies and gentlemen, welcome to the Slate Grocery REIT second quarter 2026 financial results conference call. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Friday, August 7, 2026, and I would now like to turn the conference over to Senna Gujral. Thank you. Please go ahead.

[Senna Gujral, Finance Analyst at Slate Grocery REIT]

Thank you, operator, good morning, everyone. Welcome to the Q2 2026 conference call for Slate Grocery REIT. I am joined this morning by Blair Welch, Chief Executive Officer, Joe Pleckaitis, Chief Financial Officer, and Allen Gordon, Senior Vice President. Before getting started, I would like to remind participants that our discussion today may contain forward-looking statements, therefore we ask you to review the disclaimers regarding forward-looking statements as well as non-IFRS measures, both of which can be found in Management Discussion and Analysis. You can visit Slate Grocery REIT's website to access all of the REIT's financial disclosure, including our Q2 2026 investor update, which is available now. I will now hand over the call to Blair Welch for opening remarks.

[Blair Welch, CEO at Slate Grocery REIT]

Thank you, Senna, hello, everyone. We are pleased to report Slate Grocery REIT's second quarter financial and operating results. The REIT completed over 569,000 sq ft of total leasing throughout the quarter, achieving strong rent growth on new and renewed leases. Renewal spreads were completed at 16.7% above expiring rents, new deals were completed at 41% above comparable average in-place rent. Adjusting for completed redevelopments, same-property net operating income increased by $3.8 million, or 2.3% on a trailing 12-month basis. Portfolio occupancy was 93.6%, and our portfolio's average in-place rent of $13.10 per sq ft remains well below the market average. The REIT has a weighted average interest rate of 5%, with over 90% of its debt having fixed interest rate.

[Blair Welch, CEO at Slate Grocery REIT]

This provides a stable outlook for the REIT's near-term financing costs, 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. We continue to believe in the 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. This dynamic continues to give landlords meaningful pricing power, supporting tenant retention and driving continued rent increases as leases expire. On behalf of the Slate Grocery team and the board, I'd like to thank the investor community for their continued confidence and support. I will now hand it over for questions.

[Operator]

Thank you. Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press star followed by the one on your telephone keypad. You will hear a prompt that your hand has been raised, should you wish to cancel your request, please press star followed by the two. If you are using a speakerphone, please lift the handset before pressing any keys. One moment please for your first question. Thank you. Your first question comes from the line of Sam Damiani from TD Cowen. Please go ahead.

[Sam Damiani, Analyst at TD Cowen]

Thank you. Good morning, everyone.

[Blair Welch, CEO at Slate Grocery REIT]

Morning.

[Sam Damiani, Analyst at TD Cowen]

Hey, morning. I didn't see, was there an update on the strategic review at this point? I think it's been a couple of months now.

[Blair Welch, CEO at Slate Grocery REIT]

Yeah, there's no update at this time. When there is, we will come out quickly. The special committee is still continuing their process.

[Sam Damiani, Analyst at TD Cowen]

Just to be clear, it looked like some costs were incurred but added back to FFO. Was there any net costs that actually flowed through to FFO this quarter related to the review?

[Joe Pleckaitis, CFO at Slate Grocery REIT]

No, that would've all been flushed out. Nothing that went through FFO.

[Sam Damiani, Analyst at TD Cowen]

Okay. Thanks. Just on the vacancy, I guess a couple of tenants vacated in some sort of smaller market properties. You can talk about who the prior tenants were and the prospects to backfill those two vacancies at this point.

[Allen Gordon, SVP at Slate Grocery REIT]

Yeah, this is Allen Gordon. We had roughly 260,000 sq ft of vacates this quarter. Most of those vacates we were aware of and have begun already leasing up. We have already leased four of the 10 of the largest vacates that we have. We already have prospects for several of those and letters of intent ongoing for some larger notable vacates as well.

[Sam Damiani, Analyst at TD Cowen]

Okay. Just on dispositions, any sort of continued focus on that? I didn't see any new ones announced this quarter.

[Joe Pleckaitis, CFO at Slate Grocery REIT]

Yeah, there's one property that's held for sale right now at the end of Q2, which is Heritage Heights. We're looking to close that in the next couple weeks, looking to report that in Q3. Just going through normal due diligence and looking to close that shortly.

[Sam Damiani, Analyst at TD Cowen]

Okay. That's it for me. Thank you, I'll turn it back.

[Blair Welch, CEO at Slate Grocery REIT]

Thanks, Sam.

[Operator]

Thank you once again. Should you have a question, please press star followed by the one on your telephone keypad. Once again, that is star and one to ask a question. No further questions at this time. I want to hand the call back to Senna Gujral for any closing remarks.

[Senna Gujral, Finance Analyst at Slate Grocery REIT]

Thank you everyone for joining the Q2 2026 conference call for Slate Grocery REIT. Have a great day.

[Operator]

This concludes today's call. Thank you for participating. You may all disconnect.

Participants

Executives

• Senna Gujral, Finance Analyst
• Blair Welch, CEO
• Joe Pleckaitis, CFO
• Allen Gordon, SVP

Analysts

• Sam Damiani, Analyst at TD Cowen