Good day, ladies and gentlemen, and welcome to the Slate Grocery REIT Fourth Quarter 2022 financial results conference call. At this time, all lines are in a listen-only mode. Following the presentation, we will conduct a question-and-answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Wednesday, February 15th, 2023. I would now like to turn the conference over to Paul Wolanski, SVP, National Sales and Investor Relations with Slate Grocery REIT. Please go ahead. Thank you, operator, and good morning, everyone. Welcome to the Q4 2022 conference call for Slate Grocery REIT. I'm joined this morning by Blair Welch, Chief Executive Officer; Andrew Agatep, Chief Financial Officer; Connor O'Brien, Managing Director; Allen Gordon, Senior Vice President; Braden Lyons, Vice President. Before getting started, I would like to remind participants that our discussion today may contain forward-looking statements, and therefore we ask you to review the disclaimers regarding forward-looking statements as well as non-IFRS measures, both of which can be found in management's discussion and analysis. You can visit Slate Grocery REIT's website to access all of the REIT's financial disclosures, including our Q4 2022 investor update, which is now available. I will now hand over the call to Blair Welch for opening remarks. Thank you, Paul. Our Q4 results show that in a year defined by widespread market volatility, Slate Grocery REIT has maintained steady growth and strong performance, highlighting yet again the defensiveness of our grocery-anchored portfolio. Heading into 2023, market fundamentals in the grocery-anchored sector are favorable. High construction costs and retail conversions and redevelopments are keeping inventory levels low. This dynamic is creating tailwinds for our portfolio, accelerating leasing demand and rental growth. Importantly, our average in-place rent in the portfolio is $12.22 per sq ft, which is significantly below market rents and the per sq ft rent required for new construction. This means that we have significant rental growth embedded in our portfolio. By steadily increasing our rents, we believe that we can unlock this growth and significantly increase our revenue and the overall value of our real estate. Our team's operational performance this past year underscores this growth potential embedded in the portfolio. We completed a record 1.8 million sq ft of total leasing in 2022. New leasing was completed at a 20.7% above average in-place rent, and total leasing was completed at a 9% spread to in-place. We have a further $2.7 million of contractual base rent coming online, two-thirds of which we expect to occur in the first half of 2023. Our grocery anchored retention rate in the year was 100%, and our 93.2% portfolio occupancy presents runway for continued growth. We completed over $424 million of acquisitions in 2022 at a defensive basis with upside on our rents and occupancy, providing runway for organic growth and value creation. We also sold four non-strategic properties and one out parcel with plans to recycle these proceeds into new accretive opportunities. Lastly, the REIT completed $25 million in redevelopment projects, adding $3.4 million to our NOI, which represents a 13% return on investment. The REIT share price finished the year on a strong note, gaining 17% in the fourth quarter and providing a total all-in return of 12.5% in 2022. Heading into 2023, the REIT is well capitalized with a strong balance sheet, meaning we can be flexible and act quickly to capture attractive opportunities. Our partnership with Slate North American Essential Fund validates the REIT's net asset value and provides the REIT with access to nimble capital. We also refinanced $608 million of the REIT's credit facility in 2022 at improved terms. At year-end, 92.9% of the REIT's debt portfolio is fixed, with no debt maturing in 2023. We have strong conviction in grocery anchored real estate, and we continue to evaluate new investment opportunities to acquire well-located real estate anchored by high-performing grocers. We are well positioned for growth, and we will continue to allocate capital strategically in ways that are accretive to the REIT. On behalf of the Slate Grocery REIT team and the board, I would like to thank the investor community for their continued confidence and support. I will now hand it over for questions. Thank you. Ladies and gentlemen, if you would. We will now begin the question-and-answer session. Should you have a question, please press the star followed by the one on your touch tone phone. You will hear a three-tone prompt acknowledging your request. Should you wish to decline from the polling process, please press the star followed by the two. If you are using a speakerphone, please lift the handset before pressing any keys. One moment please for your first question. The first question comes from Sairam Srinivas of Cormark. Please go ahead. Thank you, operator. Good morning, Blair. Good morning, Paul. Thank you for the comments earlier. My first question is primarily on the dispositions. I know you indicated about recycling this year. Any color on the pipeline as well as. Can you give us a little more color on the assets that were sold in November last year? Yeah, sure. I mean, I'll pass it over to Connor. Good morning. Thanks for calling in. You know, I think what we try and do is when we see an asset that's non-core to our strategy or we think we've already maximized value, we look to sell them. You know, I think it's going to be strategic and minimal. We're not out selling a bunch of assets, but we try and add value to the portfolio. I'll let Connor describe the stuff we sold. Yeah. So of the four assets, two of which were assets that were kind of non-grocery anchored, where when we acquired the property, there was a grocery anchor in place. I think those two dispositions really show the value of buying at a low per square foot basis with low in-place rents, as it gives you flexibility if tenants typically expire and move out. Both of those scenarios we acquired approximately seven years ago and were able to get a mid-teen total return. Despite the grocer leaving, we were able to replace those single digit rents with kind of mid-teen rents, with some modest capital, and execute and dispose of those assets at attractive values. The other two, one was a grocery anchored asset, a high performing grocer. There were gross leases in place, and in an inflationary environment, we didn't like the gross lease nature. We were able to do an off-market deal with a local buyer at a very attractive valuation. We took the opportunity to dispose of that, and we'll recycle that into other attractive grocery anchored assets. The final property we disposed of was part of the 13 property portfolio acquired last year. It did not have a grocery anchored component to it was viewed as non-strategic. We were actually able to dispose of that at just under $2 million higher than our internal allocation for that property at acquisition. A great result in short order, just speaking to the attractiveness of the portfolio acquisition we made in July of 2022. In terms of the pipeline, I think we have a very robust pipeline of both individual property opportunities as well as portfolios. I think the grocery-anchored space today is an attractive place to be. Cost of financing is roughly 5.5%, and you're able to use positive leverage with kind of spreads of north of 100 basis points. As we look forward into 2023, we're gonna be looking for high-performing grocers in markets with positive demographic trends and under-market rents, and think there'll be lots of opportunities to deploy capital into these strategies. Thanks for the color, Connor. Nice hearing from you. Just on that, I think it's a good segue to my next question. That's primarily on acquisitions. Are you seeing this high rate environment put any pressure on some of the markets you might wanna target? Are you seeing opportunities come up in those markets? Yeah, I'll let Connor get into the color. At a high level, we see, you know, the US grocery business is highly fractured. There's approximately 40,000 grocery stores in the U.S. And the biggest portfolio we think is probably 500 assets. A lot of them are owned by, you know, single owners, partnerships, and they might be coming under pressure because how they financed or where they financed it in the last five - 10 years. We are hearing about one-off opportunities, and we're also hearing about portfolios of grocery, like we've executed in the last couple of years, that might be in mixed or diverse portfolios that they can sell the grocery for cash. I think we will be strategic, and we are optimistic on that's the high macro level, but I'll let Connor get into some more of the specific micro detail. We're constantly evaluating opportunities in today's market, and what we're seeing is the private buyer continues to be successful in a lot of marketed processes. I think that goes back to how Slate differentiates ourselves. If you look back kind of since COVID, we've completed almost $1 billion of acquisitions. Most of those have been kind of not necessarily just a marketed one-off opportunity. Those were creative transactions. I think that speaks to kind of the Slate platform and being creative and looking to structure deals that we can buy at, say, a portfolio discount or provide a seller a creative solution and get attractive pricing. At the same time, I still think in this environment we will also be able to be successful in one-off opportunities going forward. That's great. Thanks for the color, Blair and Connor. I'll turn it back. Thanks. Thank you. Once again, ladies and gentlemen, if you do have a question, please press star one at this time. The next question comes from Gaurav Mathur of iA Capital Markets. Please go ahead. Thank you, good morning, Blair. Hey, good morning, Gaurav. just firstly, as 2023 rolls forward, you know, is there a pecking order in your capital allocation decision between acquisitions, development, and the NCIB? You know, excellent question, and we talk about this internally and with our board continuously, and it's really about what's the best return to the uniholders. You know, we have extreme confidence in our existing portfolio and the embedded growth in our rents, as we've discussed. You know, the team's done some great, I would say, redevelopment, but it's really adding on development or to existing sites, and that can get us, you know, low teens, mid-teen returns. Then we look at new buys. I think our job is to continually allocate to the opportunities that we think provide the best return. Like, you know, if we're getting mid-teens or high teens in something, maybe we should allocate that or, you know, compare it to something else. I think it's fluid, Gaurav. But I know we're well capitalized. We have liquidity, and, you know, we'll do what we think with the board is the right way to get total return to the shareholder. Okay. Okay, great. Just on the recent dispositions once more, has the depth of the buyer pool changed over, say, the last couple of quarters? Are you seeing sort of more private buyers going after the onesie-twosie assets, for lack of a better word, versus larger portfolio deals? I think from a financing standpoint, large groups will probably be able to finance these type of assets at around 5.5%, and maybe private buyers a little bit wider than that. That being said, private buyers, in some situations, will buy all cash and will be in 1031 exchange opportunities, and will be kind of very different than your typical institutional real estate investor. Yes, that's changing price. However, the private buyer is a lot harder to track as you may have an individual in a particular market that will just, for lack of a better term, overpay for a marketed asset that we view slightly different. I think to add to Connor's comment, in 2022 or the middle and back half of 2022, it wasn't a cost of financing issue for doing M&A or big deals, it was actually the availability to get the cash. Mm-hmm. In 2023, what we're seeing is there is availability, so all the lenders, the usual suspects are out lending again. It is the cost, and therefore, the cost needs to flow through your model, and it's changing the price. Lenders are being more selective on who they lend to, and they don't like taking binary risk on a onesie-twosie, unless they're with a group that can show diversification and balance sheet strength. I think Slate Grocery is in a good position. As my comments were before, a lot of grocery on the onesie-twosies were financed CMBS. You know, based on what we see last week in the U.S., the first two CMBS deals were priced 'cause it was kind of quiet for a while, as you well know. They were actually five-year deals with different types of asset classes instead of 10. We're seeing a kind of a quantum shift in the market. I guess that means is, like they're being risked off, and I think it is selective. We are well-financing. You know, the team did a great job financing some debt already. We can get the financing, but it is thinning out who else is buying for sure. Okay. Great color. Just lastly, on new and existing leases, especially across the non-anchor segment, do you guys have any concerns in the tenant mix as we head into a recession? No. You know, I don't think so because what we're seeing is. I'll let Allen and the team jump in a little bit more. I'll just highlight, like our committed occupancy is the 93 number, but our actually in-place occupancy is 91. That really was strategic 'cause we bought these portfolios that we thought were under-managed. We think we have a couple percentage points of occupancy in our back pocket, and we're excited. The demand we're seeing is from all over the place. We're seeing it from enclosed malls tenants come. We're seeing from pad users that can't afford to be in pad rent, so they're going in line. I think what's happening is almost it's almost like, wow, this is unbelievably strong for us 'cause we're seeing demand from users that we wouldn't usually see. I think we're being strategic on who we wanna deal with, how we want them in, and like what we're willing to pay. I'll let Allen talk more, give you some more color on the specific tenant demand we're seeing. Yeah. I'd say further to that, Blair, you know, you have the limited new supply coming to the market due to the high cost of construction. With our low in-place rents, we certainly see a very strong and have a very strong tenant demand right now, resulting in favorable condition to continue to drive that growth. We're very bullish on that. Okay, great. Thank you so much for the color, gentlemen. I appreciate it, and I'll turn it back to the operator. Thanks, Gaurav. Thank you. There are no further questions at this time. I will turn the call back to Paul Wolanski for closing remarks. Thank you everyone for joining the Q4 to 2022 conference call for Slate Grocery. Have a great day. Ladies and gentlemen, this does conclude the conference call for today. We thank you for your participation and ask that you please disconnect your lines.