Slate Grocery REIT Reports Fourth Quarter and Year End 2025 Results

Author of the article:You can save this article by registering for free here. Or sign-in if you have an account.TORONTO — Slate Grocery REIT (TSX: SGR.U) (TSX: SGR.UN) (the “REIT”), an owner and operator of U.S. grocery-anchored real estate, today announced its financial results and highlights for the three and twelve months ended December 31, 2025.Subscribe now to read the latest news in your city and across Canada.Subscribe now to read the latest news in your city and across Canada.Create an account or sign in to continue with your reading experience.Create an account or sign in to continue with your reading experience.“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.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Three months ended December 31,(thousands of U.S. dollars, except per unit amounts)20252024Change %Rental revenue$54,604$53,0772.9%NOI 1 2$42,166$41,4621.7%Net income 2$13,050$15,731(17.0)%Same-property NOI (3 month period, 113 properties) 1 2$41,514$40,9241.4%Same-property NOI (12 month period, 113 properties) 1 2$165,552$162,5301.9%New leasing (square feet) 271,41893,078(23.3)%New leasing spread 245.7%29.0%57.6%Total leasing (square feet) 2680,410336,548102.2%Total leasing spread 212.3%14.9%(17.4)%New leasing – anchor / junior anchor 230,02535,000(14.2)%Weighted average number of units outstanding (“WA units”)60,43660,3660.1%FFO 1 2$14,927$15,080(1.0)%FFO per WA units 1 2$0.25$0.25—%FFO payout ratio 1 286.9%86.0%1.1%AFFO 1 2$11,704$11,807(0.9)%AFFO per WA units 1 2$0.19$0.20(5.0)%AFFO payout ratio 1 2110.8%109.8%0.9%Fixed charge coverage ratio 1 31.8x1.9x(5.3)%(thousands of U.S. dollars, except per unit amounts)December 31, 2025December 31, 2024Change %Total assets$2,357,080$2,233,6995.5%Total assets, proportionate interest 1 2$2,449,256$2,444,1430.2%Debt$1,303,456$1,166,65511.7%Debt, proportionate interest 1 2$1,392,100$1,370,5301.6%Net asset value per unit$13.65$13.84(1.4)%Number of properties 2115116(0.9)%Portfolio occupancy 294.4%94.8%(0.4)%Debt / GBV ratio55.3%52.2%5.9%(1) Refer to “Non-IFRS Measures” section below.(2) Includes the REIT’s share of joint venture investments.(3) As of March 31, 2025, the REIT transitioned from disclosing interest coverage ratio to fixed charge coverage ratio. Refer to ‘Fixed Charge Coverage Ratio’ in Part IV of Management’s Discussion and Analysis for further details.Senior management will host a live conference call at 9:00 am ET on February 11, 2026 to discuss the results and ongoing business initiatives of the REIT.The conference call can be accessed by dialing (289) 514-5100 or 1 (800) 717-1738. Additionally, the conference call will be available via simultaneous audio found at https://onlinexperiences.com/Launch/QReg/ShowUUID=C6637850-5D57-4506-8B6C-2E106F0EDFE4&LangLocaleID=1033. A replay will be accessible until February 25, 2026, via the REIT’s website or by dialing (289) 819-1325 or 1 (888) 660-6264 (access code 60811#) approximately two hours after the live event.Slate Grocery REIT 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 everyday 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. Visit slategroceryreit.com to learn more about the REIT.Slate Asset Management is a global alternative investor and manager focused on essential real estate and infrastructure assets. We focus on fundamentals with the objective of creating long-term value for our investors and partners across the real estate space. We are supported by exceptional people and flexible capital, which enable us to originate and execute on a wide range of compelling investment opportunities. Visit slateam.com to learn more, and follow Slate Asset Management on LinkedIn, X (Twitter), and Instagram.All interested parties can access Slate Grocery’s Supplemental Information online at slategroceryreit.com in the Investors section. These materials are also available on SEDAR+ or upon request to the REIT at info@slateam.com or (416) 644-4264.Certain information herein constitutes “forward-looking information” as defined under Canadian securities laws which reflect management’s expectations regarding objectives, plans, goals, strategies, future growth, results of operations, performance, business prospects and opportunities of the REIT. The words “plans”, “expects”, “does not expect”, “forecasts”, “scheduled”, “estimates”, “intends”, “anticipates”, “does not anticipate”, “projects”, “believes”, or variations of such words and phrases or statements to the effect that certain actions, events or results “may”, “will”, “could”, “would”, “might”, “occur”, “be achieved”, or “continue” and similar expressions identify forward-looking statements. Management believes that the expectations reflected in its forward-looking statements are based upon reasonable assumptions, however, management can give no assurance that actual results, performance or achievements will be consistent with these forward-looking statements. Such forward-looking statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations.Forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable by management as of the date hereof, are inherently subject to significant business, economic and competitive uncertainties and contingencies. When relying on forward-looking statements to make decisions, the REIT cautions readers not to place undue reliance on these statements, as forward-looking statements involve significant risks and uncertainties, and should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not the times at or by which such performance or results will be achieved. A number of factors could cause actual results to differ, possibly materially, from the results discussed in the forward-looking statements. Additional information about risks and uncertainties is contained in the filings of the REIT with securities regulators.This news release and accompanying financial statements are based on IFRS® Accounting Standards (“IFRS Accounting Standards”), as issued by the International Accounting Standards Board (“IASB”).We disclose a number of financial measures in this news release that are not measures used under IFRS Accounting Standards, including NOI, same-property NOI, FFO, FFO payout ratio, AFFO, AFFO payout ratio, adjusted EBITDA, fixed charges and the fixed charge coverage ratio, in addition to certain measures on a per unit basis.We utilize these measures for a variety of reasons, including measuring performance, managing the business, capital allocation and the assessment of risk. Descriptions of why these non-IFRS measures are useful to investors and how management uses each measure are included in Management’s Discussion and Analysis. We believe that providing these performance measures on a supplemental basis to our IFRS Accounting Standards results is helpful to investors in assessing the overall performance of our businesses in a manner similar to management. These financial measures should not be considered as a substitute for similar financial measures calculated in accordance with IFRS Accounting Standards. We caution readers that these non-IFRS financial measures may differ from the calculations disclosed by other businesses, and as a result, may not be comparable to similar measures presented by others.The table below summarizes a calculation of non-IFRS measures based on financial information in accordance with IFRS Accounting Standards.Three months ended December 31,(in thousands of U.S. dollars, except per unit amounts)20252024Rental revenue$54,604 $53,077Straight-line rent revenue(380)(109)Property operating expenses(9,557)(9,149)IFRIC 21 property tax adjustment(7,183)(7,671)Contribution from joint venture investments4,6825,314NOI 1 2$42,166 $41,462 Cash flow from operations$15,503 $16,131Changes in non-cash working capital items583682Finance charge and mark-to-market adjustments(1,108)(1,060)Interest income and TIF note adjustments134145Adjustments for joint venture investments2,4282,422Non-controlling interest(3,073)(3,375)Taxes on dispositions3683Capital expenditures(1,429)(337)Leasing costs(855)(853)Tenant improvements(847)(1,951)AFFO 1 2$11,704 $11,807Net income 2$13,050 $15,731Change in fair value of financial instruments104(2,473)Disposition costs68090Change in fair value of properties11,78911,218Deferred income tax (recovery) expense(2,437)2,454Unit expense (recovery)981(754)Adjustments for joint venture investments1,363591Non-controlling interest(3,788)(4,109)Taxes on dispositions3683IFRIC 21 property tax adjustment(7,183)(7,671)FFO 1 2$14,927 $15,080Straight-line rental revenue(380)(109)Capital expenditures(1,429)(337)Leasing costs(855)(853)Tenant improvements(847)(1,951)Adjustments for joint venture investments(427)(757)Non-controlling interest715734AFFO 1 2$11,704 $11,807(1) Refer to “Non-IFRS Measures” section above.(2) Includes the REIT’s share of joint venture investments.Three months ended December 31,(in thousands of U.S. dollars, except per unit amounts)20252024NOI 1 2$42,166 $41,462General and administrative expenses(4,360)(4,294)Cash interest, net(16,314)(14,114)Finance charge and mark-to-market adjustments(1,108)(1,060)Current income tax expense(222)(779)Adjustments for joint venture investments(2,254)(2,892)Non-controlling interest(3,073)(3,375)Capital expenditures(1,429)(337)Leasing costs(855)(853)Tenant improvements(847)(1,951)AFFO 1 2$11,704 $11,807(1) Refer to “Non-IFRS Measures” section above.(2) Includes the REIT’s share of joint venture investments.Three months ended December 31,(in thousands of U.S. dollars, except per unit amounts)20252024Net income 1$13,050 $15,731Interest and finance costs17,42215,174Change in fair value of financial instruments104(2,473)Disposition costs68090Change in fair value of properties11,78911,218Deferred income tax (recovery) expense(2,437)2,454Current income tax expense590782Unit expense (income)981(754)Adjustments for joint venture investments2,8492,509Straight-line rent revenue(380)(109)IFRIC 21 property tax adjustment(7,183)(7,671)Adjusted EBITDA 1 2$37,465 $36,951NOI 1 242,16641,462General and administrative expenses 1 2(4,701)(4,511)Adjusted EBITDA 1 2$37,465 $36,951Cash interest paid(18,107)(16,379)Principal payments(2,398)(3,062)Total fixed charges 1$(20,505)$(19,441)Fixed charge coverage ratio 1 2 31.8x1.9x(1) Includes the REIT’s share of joint venture investments.(2) Refer to “Non-IFRS Measures” section above.(3) As of March 31, 2025, the REIT transitioned from disclosing interest coverage ratio to fixed charge coverage ratio. Refer to ‘Fixed Charge Coverage Ratio’ in Part IV of Management’s Discussion and Analysis for further details.December 31, 2025December 31, 2024(in thousands of U.S. dollars, except per unit amounts)Statement of Financial PositionJoint Venture InvestmentsProportionate Share (Non-IFRS)Statement of Financial PositionJoint Venture InvestmentsProportionate Share (Non-IFRS)ASSETSNon-current assetsProperties$2,231,184$147,000$2,378,184$2,054,511$310,400$2,364,911Joint venture investments63,138(63,138)—112,429(112,429)—Interest rate swaps———4,690—4,690Other assets3,379—3,3793,624—3,624$2,297,701$83,862 $2,381,563$2,175,254$197,971 $2,373,225Current assetsCash21,8192,79824,61722,6684,85127,519Accounts receivable24,7741,11725,89123,4171,72325,140Other assets6,9803,90410,8844,3274,6298,956Prepaids5,8064956,3015,0501,0256,075Interest rate swaps———2,9832453,228 $59,379$8,314 $67,693$58,445$12,473 $70,918Total assets$2,357,080$92,176 $2,449,256$2,233,699$210,444 $2,444,143LIABILITIESNon-current liabilitiesDebt$1,225,490$37,042$1,262,532$1,120,616$59,914$1,180,530Interest rate swaps2,655—2,655———Deferred income taxes157,211—157,211153,5802153,582Other liabilities4,7934885,2814,3788375,215$1,390,149$37,530 $1,427,679$1,278,574$60,753 $1,339,327Current liabilitiesDebt77,96651,602129,56846,039143,961190,000Accounts payable and accrued liabilities39,8803,04442,92442,0715,73047,801Exchangeable units of subsidiaries8,612—8,6128,733—8,733Distributions payable4,323—4,3234,323—4,323 $130,781$54,646 $185,427$101,166$149,691 $250,857Total liabilities$1,520,930$92,176 $1,613,106$1,379,740$210,444 $1,590,184EQUITYUnitholders’ equity$659,124$—$659,124$673,474$—$673,474Non-controlling interest177,026—177,026180,485—180,485Total equity$836,150$— $836,150$853,959$— $853,959Total liabilities and equity$2,357,080$92,176 $2,449,256$2,233,699$210,444 $2,444,143 https://www.businesswire.com/news/home/20260210473639/en/ContactsInvestor RelationsTel: +1 416 644 4264E-mail:#distroPostmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information.