Slate Grocery REIT T.SGR.UN

Slate Grocery earns $59.38-million (U.S.) in Q2

[midard]

 

Slate Grocery earns $59.38-million (U.S.) in Q2

 

2022-08-02 19:47 ET - News Release

 

Mr. Blair Welch reports

SLATE GROCERY REIT REPORTS SECOND QUARTER 2022 RESULTS

Slate Grocery REIT has released its financial results and highlights for the three and six months ended June 30, 2022.

"The last three months have underscored our team's unique ability to unlock creative solutions for capital and execute high-quality, accretive deals that create value for our unitholders," said Blair Welch, Chief Executive Officer of Slate Grocery REIT. "We are very pleased to have completed the largest acquisition in Slate Grocery REIT's history and established an efficient structure for growth that will enable us to continue scaling our platform, particularly as emerging macroeconomic pressures create attractive new opportunities for well-capitalized buyers."

Highlights

 

• -- Achieved significant growth through $425 million grocery-anchored real estate portfolio acquisition at attractive valuation
  • == On July 15, 2022, the REIT completed the acquisition of 14 properties (the "Portfolio") for $425 million, which represents a low acquisition basis of $174 per square foot ("PSF") with below market rents
  • == The Portfolio increases the REIT's exposure to the rapidly growing Sunbelt Region of the U.S. and includes a wide range of high-performing grocers, including Publix, Ahold Delhaize, Albertsons, and Walmart
• -- Subsequent to period end, the REIT established a strategic joint venture with the North American Essential Real Estate Income Fund L.P. (the "NA Essential Fund") and upsized its credit facility at an attractive cost to ensure financial stability and flexibility
  • == The REIT's partnership with the NA Essential Fund, which includes a leading global sovereign wealth fund, provides institutional validation of the REIT's strategy, valuation, and management team
  • == The NA Essential Fund's $180 million cash investment into the REIT's assets was made at a valuation in line with the REIT's first quarter 2022 IFRS value, further validating the REIT's real estate value
  • == On July 15, 2022, the REIT amended its existing revolving credit facility and term loans to reduce pricing and improve terms, enhancing its liquidity position and mitigating near-term rising interest rate risk
• -- Maintained leasing momentum, occupancy growth, and financial stability despite macroeconomic pressures
  • == Completed 439,569 square feet of leasing in the quarter, including 43,923 square feet of new leasing at a 26.6% rental spread and renewals totaling 395,646 square feet at a 5.9% spread. On a year-to-date basis the REIT's total leasing spread is 12.4%, providing protection in an inflationary environment.
  • == Occupancy has increased by 20 basis points since the most recent quarter to 93.4%
  • == Adjusting for completed redevelopments, same-property Net Operating Income ("NOI") increased by $0.4 million or 1.5% year-over-year
  • == Adjusted funds from operations ("AFFO") per unit for the second quarter of 2022 was $0.22, which represents a $0.01 increase from the comparative period in the prior year

 

Conference Call and Webcast

Senior management will host a live conference call at 9:00 am ET on August 3, 2022 to discuss the results and ongoing business initiatives of the REIT.

The conference call can be accessed by dialing [phone] or 1 [phone]. Additionally, the conference call will be available via simultaneous audio found at https://app.webinar.net/Ra605X92BEg. A replay will be accessible until August 17, 2022 via the REIT's website or by dialing [phone] or 1 [phone] (access code 494245#) approximately two hours after the live event.

About Slate Grocery REIT (TSX: SGR.U / SGR.UN)

Slate Grocery REIT is an owner and operator of U.S. grocery-anchored real estate. The REIT owns and operates approximately $2.4 billion of 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 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.