Canada's Slate Grocery REIT Q1 rental revenue rises

Overview

• Canada's grocery-anchored REIT Q1 rental revenue rose 11.8% yr/yr, net income up 17.5%

• Same-property NOI for Q1 grew 3.1%, reflecting modest portfolio growth

• Company completed over 725,000 sq ft of leasing at double-digit rental spreads

Outlook

• Company says in-place rents remain below market, supporting potential for continued rent increases

• Company expects stable near-term financing costs with 90.2% of debt at fixed rates

• Slate Grocery REIT says demand for high-quality grocery spaces remains sustained

Result Drivers

• LEASING ACTIVITY - Over 725,000 sq ft of leasing completed at double-digit rental spreads drove performance

• RENTAL SPREADS - Renewals completed at 18.9% above expiring rents, new deals at 49.0% above comparable in-place rent

• RENT GROWTH POTENTIAL - Average in-place rent remains well below market, providing runway for continued rent increases

Company press release: ID:nBw860Ms0a

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the commercial reits peer group is "buy."

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago

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