Earnings release
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SLATE August 6 , 2026 Grocery REIT Slate Grocery REIT Reports Second Quarter 2026 Results TORONTO , ON - Slate Grocery REIT ( TSX : SGR.U ) ( TSX : SGR.UN ) ( the " REIT " ) , an owner and operator of U.S. grocery- anchored real estate , today announced its financial results and highlights for the three and six months ended June 30 , 2026 . " We continue to have strong conviction in the outlook for our portfolio of high - quality grocery - anchored real estate , " said Blair Welch , Chief Executive Officer of Slate Grocery REIT . " In the second quarter , our team completed over 569,000 square feet of leasing at consistently high rental spreads . With our in - place portfolio rents still meaningfully below market , we believe the REIT is well positioned for continued long - term growth . " For the CEO's letter to unitholders for the quarter , please follow the link here . Highlights¹ • The REIT completed over 569,000 square feet of total leasing throughout the quarter at consistently high rental spreads that continue to drive strong performance о ° Renewals were completed at 16.7 % above expiring rents , and new deals were completed at 41.0 % above comparable average in - place rent Adjusting for completed redevelopments , same - property Net Operating Income ( " NOI " ) increased by $ 3.8 million or 2.3 % in the second quarter on a trailing twelve - month basis ° As at June 30 , 2026 , portfolio occupancy was 93.6 % ° The REIT's average in - place rent of $ 13.10 per square foot remains well below the market average of $ 24.792 , providing meaningful runway for continued rent increases The REIT has a weighted average interest rate of 5.0 % , with 90.2 % of its debt having a fixed interest rate , providing a stable outlook for the REIT's near - term financing costs O The REIT's weighted average capitalization rate remains well above its weighted average interest rate for outstanding debt , allowing the REIT to maintain positive leverage ; this attractive valuation , combined with continued NOI growth , is expected to increase portfolio valuation over time ' Includes the REIT's share of joint venture investments . Refer to " Non - IFRS Measures " section below . 2CBRE Econometric Advisors , Q2 2026 .
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Summary of Q2 2026 Results Three months ended June 30, (thousands of U.S. dollars, except per unit amounts) 2026 2025 Change % Rental revenue $ 57,932 $ 52,385 10.6 % NOI 1 2 $ 42,477 $ 41,660 2.0 % Net income 2 $ 14,334 $ 13,081 9.6 % Same-property NOI (3 month period, 113 properties) 1 2 $ 41,885 $ 41,118 1.9 % Same-property NOI (12 month period, 113 properties) 1 2 $ 167,569 $ 164,161 2.1 % New leasing (square feet) 2 134,738 33,516 302.0 % New leasing spread 2 41.0 % 28.8 % 42.4% Total leasing (square feet) 2 569,458 423,894 34.3 % Total leasing spread 2 16.0 % 11.6 % 37.9% New leasing – anchor / junior anchor 2 95,984 — 100.0 % Weighted average number of units outstanding ("WA units") 60,465 60,403 0.1 % FFO 1 2 $ 14,802 $ 15,883 (6.8) % FFO per WA units 1 2 $ 0.24 $ 0.26 (7.7) % FFO payout ratio 1 2 87.6% 81.6 % 7.4% AFFO 1 2 $ 11,460 $ 12,624 (9.2) % AFFO per WA units 1 2 $ 0.19 $ 0.21 (9.5) % AFFO payout ratio 1 2 113.1% 102.7 % 10.1 % Fixed charge coverage ratio 1 1.9x 1.9x — % (thousands of U.S. dollars, except per unit amounts) June 30, 2026 December 31, 2025 Change % Total assets $ 2,374,390 $ 2,357,080 0.7 % Total assets, proportionate interest 1 2 $ 2,468,321 $ 2,449,256 0.8 % Debt $ 1,302,714 $ 1,303,456 (0.1) % Debt, proportionate interest 1 2 $ 1,393,098 $ 1,392,100 0.1 % Net asset value per unit $ 13.82 $ 13.65 1.2% Number of properties 2 115 115 — % Portfolio occupancy 2 93.6% 94.4% (0.8) % Debt / GBV ratio 54.9% 55.3 % (0.7) % 1 Refer to “Non-IFRS Measures” section below. 2 Includes the REIT's share of joint venture investments. Conference Call and Webcast Senior management will host a live conference call at 9:00 am ET on August 7, 2026 to discuss the results and ongoing business initiatives of the REIT. The conference call can be accessed by dialing (289) 514-5100 or 1 (800) 717-1738. Additionally, the conference call will be available via simultaneous audio found at https://onlinexperiences.com/scripts/Server.nxp?LASCmd=AI:4;F:QS!10100&ShowUUID=C3B07928-00E0-49E7-9E5C- 38EFD7A8E4D6&LangLocaleID=1033. A replay will be accessible until August 21, 2026, via the REIT’s website or by dialing (289) 819-1325 or 1 (888) 660-6264 (access code 84668#) approximately two hours after the live event.
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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 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 are expected to 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. About Slate Asset Management Slate Asset Management is a global alternative investor and manager focused on essential real estate and infrastructure assets. We focus on fundamentals with the objective of creating long -term value for our investors and partners across the real estate sp ace. We are supported by exceptional people and flexible capital, which enable us to originate and execute on a wide range of compelling investment opportunities. Visit slateam.com to learn more, and follow Slate Asset Management on LinkedIn, X (Twitter), and Instagram. Supplemental Information All interested parties can access Slate Grocery’s Supplemental Information online at slategroceryreit.com in the Investors section. These materials are also available on SEDAR+ or upon request to the REIT at info@slateam.com or (416) 644-4264. Forward Looking Statements Certain information herein constitutes “forward-looking information” as defined under Canadian securities laws which reflect management’s expectations regarding objectives, plans, goals, strategies, future growth, results of operations, performance, business prospects and opportunities of the REIT. The words “plans”, “expects”, “does not expect”, "forecasts", “scheduled”, “estimates”, “intends”, “anticipates”, “does not anticipate”, “projects”, “believes”, or variations of such words and phrases or statements to the effect that certain actions, events or results “may”, “will”, “could”, “would”, “might”, “occur”, “be achieved”, or “continue” and similar expressions identify forward-looking statements. Management believes that the expectations reflected in its forward-looking statements are based upon reasonable assumptions, however, management can give no assurance that actual results, performance or achievements will be consistent with these forward-looking statements. Such forward-looking statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable by management as of the date hereof, are inherently subject to significant business, economic and competitive uncertainties and contingencies. When relying on forward-looking statements to make decisions, the REIT cautions readers not to place undue reliance on these statements, as forward-looking statements involve significant risks and uncertainties, and should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not the times at or by which such performance or results will be achieved. A number of factors could cause actual results to differ, possibly materially, from the results discussed in the forward- looking statements. Additional information about risks and uncertainties is contained in the filings of the REIT with securities regulators. Non-IFRS Measures This news release and accompanying financial statements are based on IFRS® Accounting Standards (“IFRS Accounting Standards”), as issued by the International Accounting Standards Board (“IASB”). We disclose a number of financial measures in this news release that are not measures used under IFRS Accounting Standards, including NOI, same-property NOI, FFO, FFO payout ratio, AFFO, AFFO payout ratio, adjusted EBITDA, fixed charges and the fixed charge coverage ratio, in addition to certain measures on a per unit basis. • NOI is defined as rental revenue less operating expenses, prior to straight-line rent, International Financial Reporting Interpretations Committee ("IFRIC") 21, Levies ("IFRIC 21") property tax adjustments and adjustments for equity investments. Same-property NOI includes those properties owned by the REIT for each of the current period and the relevant comparative period, excluding those properties under development.
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• FFO is defined as net income adjusted for certain items including transaction/disposition costs, change in fair value of properties, change in fair value of financial instruments, deferred income taxes, unit income (expense), adjustments for equity investments, IFRIC 21 property tax adjustments and other expenses. • AFFO is defined as FFO adjusted for straight-line rental revenue and revenue sustaining capital, leasing costs and tenant improvements. • FFO payout ratio and AFFO payout ratio are defined as distributions declared divided by FFO and AFFO, respectively. • FFO per WA unit and AFFO per WA unit are defined as FFO and AFFO divided by the weighted average class U equivalent units outstanding, respectively. • Adjusted EBITDA is defined as NOI less general and administrative expenses at the REIT's proportionate interest. • Fixed charges include principal payments and cash interest paid, net at the REIT's proportionate interest. • Fixed charge coverage ratio is defined as adjusted EBITDA divided by fixed charges at the REIT's proportionate interest. • Net asset value is defined as the aggregate of the carrying value of the REIT's equity, deferred income taxes and exchangeable units of subsidiaries. • Proportionate interest represents financial information adjusted to reflect the REIT's equity accounted joint ventures and financial real estate assets and its share of net income (losses) from equity accounted joint ventures and financial real estate assets on a proportionately consolidated basis at the REIT's ownership percentage of the related investment. We utilize these measures for a variety of reasons, including measuring performance, managing the business, capital allocation and the assessment of risk. Descriptions of why these non-IFRS measures are useful to investors and how management uses each measure are included in Management’s Discussion and Analysis. We believe that providing these performance measures on a supplemental basis to our IFRS Accounting Standards results is helpful to investors in assessing the overall performance of our businesses in a manner similar to management. These financial measures should not be considered as a substitute for similar financial measures calculated in accordance with IFRS Accounting Standards. We caution readers that these non-IFRS financial measures may differ from the calculations disclosed by other businesses, and as a result, may not be comparable to similar measures presented by others. SGR-FR For Further Information Investor Relations Tel: +1 416 644 4264 E-mail: ir@slateam.com
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Calculation and Reconciliation of Non-IFRS Measures The table below summarizes a calculation of non-IFRS measures based on financial information in accordance with IFRS Accounting Standards. Three months ended June 30, (in thousands of U.S. dollars, except per unit amounts) 2026 2025 Rental revenue $ 57,932 $ 52,385 Straight-line rent revenue (28) (111) Property operating expenses (10,470) (9,071) IFRIC 21 property tax adjustment (7,492) (6,983) Contribution from joint venture investments 2,535 5,440 NOI 1 2 $ 42,477 $ 41,660 Cash flow from operations $ 20,912 $ 21,187 Changes in non-cash working capital items (8,907) (3,761) Other expenses 6,328 — Finance charge and mark-to-market adjustments (1,336) (1,120) Interest income and TIF note adjustments 103 141 Adjustments for joint venture investments 1,071 2,748 Non-controlling interest (2,871) (3,276) Capital expenditures (1,567) (1,798) Leasing costs (1,076) (803) Tenant improvements (1,197) (694) AFFO 1 2 $ 11,460 $ 12,624 Net income 2 $ 14,334 $ 13,081 Change in fair value of financial instruments (436) 608 Other expenses 6,328 — Change in fair value of properties 4,436 8,454 Deferred income tax expense 1,198 2,174 Unit expense 1,769 1,122 Adjustments for joint venture investments (1,692) 1,432 Non-controlling interest (3,643) (4,005) IFRIC 21 property tax adjustment (7,492) (6,983) FFO 1 2 $ 14,802 $ 15,883 Straight-line rental revenue (28) (111) Capital expenditures (1,567) (1,798) Leasing costs (1,076) (803) Tenant improvements (1,197) (694) Adjustments for joint venture investments (246) (582) Non-controlling interest 772 729 AFFO 1 2 $ 11,460 $ 12,624 1 Refer to “Non-IFRS Measures” section above. 2 Includes the REIT's share of joint venture investments.
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Three months ended June 30, (in thousands of U.S. dollars, except per unit amounts) 2026 2025 NOI 1 2 $ 42,477 $ 41,660 General and administrative expenses (4,283) (3,996) Cash interest, net (16,816) (14,419) Finance charge and mark-to-market adjustments (1,336) (1,120) Current income tax expense (407) (238) Adjustments for joint venture investments (1,464) (2,692) Non-controlling interest (2,871) (3,276) Capital expenditures (1,567) (1,798) Leasing costs (1,076) (803) Tenant improvements (1,197) (694) AFFO 1 2 $ 11,460 $ 12,624 1 Refer to “Non-IFRS Measures” section above. 2 Includes the REIT's share of joint venture investments. Three months ended June 30, (in thousands of U.S. dollars, except per unit amounts) 2026 2025 Net income 1 $ 14,334 $ 13,081 Interest and finance costs 18,152 15,539 Change in fair value of financial instruments (436) 608 Other expenses 6,328 — Change in fair value of properties 4,436 8,454 Deferred income tax expense 1,198 2,174 Current income tax expense 407 238 Unit expense 1,769 1,122 Adjustments for joint venture investments (541) 3,331 Straight-line rent revenue (28) (111) IFRIC 21 property tax adjustment (7,492) (6,983) Adjusted EBITDA 1 2 $ 38,127 $ 37,453 NOI 1 2 42,477 41,660 General and administrative expenses 1 2 (4,350) (4,207) Adjusted EBITDA 1 2 $ 38,127 $ 37,453 Cash interest paid (17,900) (16,656) Principal payments (2,327) (2,913) Total fixed charges 1 $ (20,227) $ (19,569) Fixed charge coverage ratio 1 2 1.9x 1.9x 1 Includes the REIT's share of joint venture investments. 2 Refer to “Non-IFRS Measures” section above.
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June 30, 2026 December 31, 2025 (in thousands of U.S. dollars, except per unit amounts) Statement of Financial Position Joint Venture Investments Proportionate Share (Non-IFRS) Statement of Financial Position Joint Venture Investments Proportionate Share (Non-IFRS) ASSETS Non-current assets Properties $ 2,233,133 $ 149,500 $ 2,382,633 $ 2,231,184 $ 147,000 $ 2,378,184 Joint venture investments 62,274 (62,274) — 63,138 (63,138) — Interest rate swaps 5,238 275 5,513 — — — Other assets 3,206 — 3,206 3,379 — 3,379 $ 2,303,851 $ 87,501 $ 2,391,352 $ 2,297,701 $ 83,862 $ 2,381,563 Current assets Cash 24,821 2,496 27,317 21,819 2,798 24,617 Accounts receivable 22,189 1,296 23,485 24,774 1,117 25,891 Property held for sale 16,600 — 16,600 — — — Other assets 4,309 2,259 6,568 6,980 3,904 10,884 Prepaids 2,469 379 2,848 5,806 495 6,301 Interest rate swaps 151 — 151 — — — $ 70,539 $ 6,430 $ 76,969 $ 59,379 $ 8,314 $ 67,693 Total assets $ 2,374,390 $ 93,931 $ 2,468,321 $ 2,357,080 $ 92,176 $ 2,449,256 LIABILITIES Non-current liabilities Debt $ 1,277,962 $ 54,249 $ 1,332,211 $ 1,225,490 $ 37,042 $ 1,262,532 Interest rate swaps — — — 2,655 — 2,655 Deferred income taxes 164,835 — 164,835 157,211 — 157,211 Other liabilities 4,891 493 5,384 4,793 488 5,281 $ 1,447,688 $ 54,742 $ 1,502,430 $ 1,390,149 $ 37,530 $ 1,427,679 Current liabilities Debt 24,752 36,135 60,887 77,966 51,602 129,568 Accounts payable and accrued liabilities 47,337 3,054 50,391 39,880 3,044 42,924 Exchangeable units of subsidiaries 9,216 — 9,216 8,612 — 8,612 Distributions payable 4,321 — 4,321 4,323 — 4,323 $ 85,626 $ 39,189 $ 124,815 $ 130,781 $ 54,646 $ 185,427 Total liabilities $ 1,533,314 $ 93,931 $ 1,627,245 $ 1,520,930 $ 92,176 $ 1,613,106 EQUITY Unitholders' equity $ 661,317 $ — $ 661,317 $ 659,124 $ — $ 659,124 Non-controlling interest 179,759 — 179,759 177,026 — 177,026 Total equity $ 841,076 $ — $ 841,076 $ 836,150 $ — $ 836,150 Total liabilities and equity $ 2,374,390 $ 93,931 $ 2,468,321 $ 2,357,080 $ 92,176 $ 2,449,256
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Three months ended June 30, 2026 Three months ended June 30, 2025 Statement of Income Joint Venture Investments Proportionate Share (Non-IFRS) Statement of Income Joint Venture Investments Proportionate Share (Non-IFRS) Rental revenue $ 57,932 $ 4,114 $ 62,046 $ 52,385 $ 8,320 $ 60,705 Property operating expenses (10,470) (751) (11,221) (9,071) (1,484) (10,555) General and administrative expenses (4,283) (67) (4,350) (3,996) (211) (4,207) Interest and finance costs (18,152) (1,161) (19,313) (15,539) (1,899) (17,438) Share of income in joint venture investments 3,009 (3,009) — 1,898 (1,898) — Other expenses (6,328) — (6,328) — — — Change in fair value of financial instruments 436 245 681 (608) (78) (686) Change in fair value of properties (4,436) 629 (3,807) (8,454) (2,750) (11,204) Net income before income taxes and unit expense $ 17,708 $ — $ 17,708 $ 16,615 $ — $ 16,615 Deferred income tax expense (1,198) — (1,198) (2,174) — (2,174) Current income tax expense (407) — (407) (238) — (238) Unit expense (1,769) — (1,769) (1,122) — (1,122) Net income $ 14,334 $ — $ 14,334 $ 13,081 $ — $ 13,081 Net income attributable to Unitholders $ 9,764 $ — $ 9,764 $ 9,763 $ — $ 9,763 Non-controlling interest 4,570 — 4,570 3,318 — 3,318 Net Income $ 14,334 $ — $ 14,334 $ 13,081 $ — $ 13,081