Slate Grocery REIT (SGR-UN) Q2 2026 earnings summary

Executive summary

• Completed over 569,000 sq ft of leasing in Q2 2026 at high rental spreads, supporting strong portfolio performance.

• Renewal spreads achieved 16.7% above expiring rents; new deals completed at 41% above comparable average in-place rent.

• Portfolio valued at $2.4B with 115 properties totaling 15.2M SF across 23 states as of June 30, 2026.

• 94% of the portfolio is grocery-anchored, with a 93.6% occupancy rate and a weighted average lease term of 4.4 years.

• In-place rents averaged $13.10 per sq ft, significantly below the market average of $24.79, indicating potential for future rent growth.

Financial highlights

• Rental revenue increased 10.6% year-over-year to $57.9 million for Q2 2026.

• Net income rose 9.6% year-over-year to $14.3 million.

• Same-property NOI for the quarter was $41.9 million, up 1.9% year-over-year; trailing twelve-month same-property NOI grew 2.3%.

• Weighted average interest rate on debt is 5.0%, with over 90% of debt at fixed rates.

• FFO for the quarter was $14.8 million (down 6.8% year-over-year); AFFO was $11.5 million (down 9.2% year-over-year).

Outlook and guidance

• Management maintains strong conviction in long-term growth potential due to below-market in-place rents and stable financing.

• Stable near-term financing costs expected due to high proportion of fixed-rate debt.

• Limited new retail supply and strong tenant demand are expected to support continued rent growth and low vacancy.

• In-place rents below market provide runway for long-term revenue and NOI growth.

• Grocery-anchored real estate fundamentals remain favorable, with limited new retail development supporting pricing power and rent growth.