Slate Grocery REIT Class U Units T.SGR.UN

RE:No deal accretion or AFFO per share growth for several qtrs

[theinvestor22]

logicandinertia:  I can't disagree with your commentary in general, but there is one factoid which should influence things going forward.  I've been following the difference between in-place and market rents.  During most of covid, there was about a 1-4% difference.  Over the last couple of quarters, that difference has shot up to over 12% so, if those figures are accurate, there should be room to adjust rents upward over time.  That might bring the PR back down into the 80s, which should give the REIT (and its investors) a bit of a cushion.

There have been so little dividend increases amongst the REIT community of late that it's got me thinking about the nature of REITs themselves.  Since they pay out their depreciation, and since depreciation over time is a real expense - in other words, since buildings get older and command lesser rents over time - it's necessary for REITS to develop properties, sell off fully developed properties and recycle capital with some regularity, so as to keep the long term asset quality in place.  This counteracts the headwinds which are always there when an entity pays out its depreciation (and therefore leaves itself cash short in the face of declining assets).  So, my conclusion is that if a REIT can withstand the headwinds and even grow its AFFO over the years by reasonably modest amounts, that's success for them.  Time will tell...