Slate Grocery REIT Reports Third Quarter 2026 Results

TORONTO--(BUSINESS WIRE)--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 nine months ended September 30, 2026.

“We continued to see healthy leasing momentum in the third quarter, driven by tenant demand across the grocery-anchored and retail sector,” said Blair Welch, Chief Executive Officer of Slate Grocery REIT. “Our team completed over 410,000 square feet of leasing at spreads of 8.4% above expiring rents. With occupancy of 93.5% and average in-place rents of $13.09 per square foot, portfolio fundamentals remain strong, and we continue to execute on our leasing and asset management priorities.”

Q3 2026 Highlights¹

• The REIT executed 80 leases totaling 410,673 square feet during the quarter.
• As at September 30, 2026, portfolio occupancy was 93.5%.
• 42 lease renewals were completed at 13.4% above expiring rents, and 10 new deals were completed at 18.2% above comparable average in-place rent.
• Adjusting for completed redevelopments, same property Net Operating Income ("NOI") increased by $2.7 million, or 1.6%, in the third quarter on a trailing twelve month basis.
• The REIT has a weighted average interest rate of 5.1%, with 90.2% of its debt having a fixed interest rate, providing a stable outlook for the REIT's near-term financing costs.
• On August 10, 2026, the REIT sold Heritage Heights, a Club 4 Fitness-anchored property in Grapevine, Texas, for gross proceeds of $17.2 million.

The Arrangement

• On September 27, 2026, the REIT entered into an arrangement agreement with a joint venture between an affiliate of Brixmor Property Group Inc. and affiliates of Everview Partners, L.P. (the “Purchaser”), pursuant to which the Purchaser will acquire all issued and outstanding units of the REIT for US$13.00 per unit in cash plus additional consideration of US$0.002482 per unit per day if closing occurs after January 20, 2027 (the "Transaction").
• The REIT mailed its management information circular (“Circular”) on November 2, 2026, in connection with a special meeting of unitholders to be held on November 25, 2026, at which unitholders will be asked to consider and, if thought advisable, approve the Transaction. Assuming the satisfaction or waiver of all conditions to closing, closing is expected to occur in Q1 2027, following which the REIT will be privately held and delisted from the TSX.

^1Includes the REIT's share of joint venture investments. Refer to “Non-IFRS Measures” section below.

Summary of Q3 2026 Results

	Three months ended September 30,
(thousands of U.S. dollars, except per unit amounts)		2026		2025	Change %
Rental revenue	$	59,199	$	53,313	11.0%
NOI^1 2	$	43,262	$	42,992	0.6%
Net income ^2	$	13,446	$	11,238	19.6%
Same-property NOI (3 month period, 112 properties) ^1 2	$	42,618	$	42,267	0.8%
Same-property NOI (12 month period, 112 properties) ^1 2	$	167,127	$	164,708	1.5%
New leasing (square feet) ^2		21,450		74,104	(71.1)%
New leasing spread ^2		18.2%		34.8%	(47.7)%
Total leasing (square feet) ^2		410,673		417,145	(1.6)%
Total leasing spread ^2		8.4%		14.4%	(41.7)%
New leasing – anchor / junior anchor ^2		—		24,554	100.0%
Weighted average number of units outstanding ("WA units")		60,441		60,419	—%
FFO^1 2	$	15,358	$	16,474	(6.8)%
FFO per WA units^1 2	$	0.25	$	0.27	(7.4)%
FFO payout ratio^1 2		56.3%		78.7%	(28.5)%
AFFO ^1 2	$	11,668	$	12,984	(10.1)%
AFFO per WA units^1 2	$	0.19	$	0.21	(9.5)%
AFFO payout ratio^1 2		74.1%		99.9%	(25.8)%
Fixed charge coverage ratio^1	1.9x		1.9x		—%
(thousands of U.S. dollars, except per unit amounts)	September 30, 2026		December 31, 2025		Change %
Total assets	$	2,390,234	$	2,357,080	1.4%
Total assets, proportionate interest ^1 2	$	2,484,163	$	2,449,256	1.4%
Debt	$	1,304,818	$	1,303,456	0.1%
Debt, proportionate interest ^1 2	$	1,395,098	$	1,392,100	0.2%
Net asset value per unit	$	13.95	$	13.65	2.2%
Number of properties ^2		114		115	(0.9)%
Portfolio occupancy^2		93.5%		94.4%	(1.0)%
Debt / GBV ratio		54.6%		55.3%	(1.3)%
^1 Refer to “Non-IFRS Measures” section below.
^2 Includes the REIT's share of joint venture investments.

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. 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 space. 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 & Earnings Call

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 [e-mail] or [phone].

The REIT will not conduct a conference call following the issuance of the release.

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.
• 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

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 September 30,
(in thousands of U.S. dollars, except per unit amounts)		2026		2025
Rental revenue	$	59,199	$	53,313
Straight-line rent revenue		(257)		(54)
Property operating expenses		(10,371)		(9,098)
IFRIC 21 property tax adjustment		(7,575)		(6,701)
Contribution from joint venture investments		2,266		5,532
NOI^1 2	$	43,262	$	42,992
Cash flow from operations	$	7,609	$	10,714
Changes in non-cash working capital items		3,204		7,373
Other expenses		8,664		—
Disposition costs		(439)		—
Finance charge and mark-to-market adjustments		(1,341)		(1,144)
Interest income and TIF note adjustments		77		145
Adjustments for joint venture investments		840		3,015
Non-controlling interest		(3,048)		(3,172)
Taxes on dispositions		251		—
Capital expenditures		(2,156)		(1,860)
Leasing costs		(1,043)		(1,026)
Tenant improvements		(950)		(1,061)
AFFO^1 2	$	11,668	$	12,984
Net income^2	$	13,446	$	11,238
Change in fair value of financial instruments		(348)		(543)
Other expenses		8,664		—
Change in fair value of properties		750		12,132
Deferred income tax expense		4,464		3,345
Unit expense		298		2
Adjustments for joint venture investments		(714)		961
Non-controlling interest		(3,878)		(3,960)
Taxes on dispositions		251		—
IFRIC 21 property tax adjustment		(7,575)		(6,701)
FFO^1 2	$	15,358	$	16,474
Straight-line rental revenue		(257)		(54)
Capital expenditures		(2,156)		(1,860)
Leasing costs		(1,043)		(1,026)
Tenant improvements		(950)		(1,061)
Adjustments for joint venture investments		(115)		(277)
Non-controlling interest		831		788
AFFO^1 2	$	11,668	$	12,984
^1 Refer to “Non-IFRS Measures” section above.
^2 Includes the REIT's share of joint venture investments.
	Three months ended September 30,
(in thousands of U.S. dollars, except per unit amounts)		2026		2025
NOI^1 2	$	43,262	$	42,992
General and administrative expenses		(4,200)		(4,077)
Cash interest, net		(17,107)		(15,558)
Finance charge and mark-to-market adjustments		(1,341)		(1,144)
Current income tax (expense) recovery		(323)		407
Adjustments for joint venture investments		(1,424)		(2,517)
Non-controlling interest		(3,050)		(3,172)
Capital expenditures		(2,156)		(1,860)
Leasing costs		(1,043)		(1,026)
Tenant improvements		(950)		(1,061)
AFFO^1 2	$	11,668	$	12,984
^1 Refer to “Non-IFRS Measures” section above.
^2 Includes the REIT's share of joint venture investments.

	Three months ended September 30,
(in thousands of U.S. dollars, except per unit amounts)		2026		2025
Net income ^1	$	13,446	$	11,238
Interest and finance costs		18,449		16,702
Change in fair value of financial instruments		(348)		(543)
Other expenses		8,664		—
Change in fair value of properties		750		12,132
Deferred income tax expense		4,464		3,345
Current income tax expense (recovery)		574		(407)
Unit expense		298		2
Adjustments for joint venture investments		486		3,037
Straight-line rent revenue		(257)		(54)
IFRIC 21 property tax adjustment		(7,575)		(6,701)
Adjusted EBITDA^1 2	$	38,951	$	38,751
NOI^1 2		43,262		42,992
General and administrative expenses ^1 2		(4,311)		(4,241)
Adjusted EBITDA^1 2	$	38,951	$	38,751
Cash interest paid		(18,238)		(17,868)
Principal payments		(2,305)		(2,378)
Total fixed charges^1	$	(20,543)	$	(20,246)
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.

	September 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	$	2,244,678	$	149,700	$	2,394,378	$	2,231,184	$	147,000	$	2,378,184
Joint venture investments		62,768		(62,768)		—		63,138		(63,138)		—
Interest rate swaps		9,400		—		10,327		—		—		—
Other assets		3,255		—		3,255		3,379		—		3,379
	$	2,320,101	$	87,859	$	2,407,960	$	2,297,701	$	83,862	$	2,381,563
Current assets
Cash		27,736		2,297		30,033		21,819		2,798		24,617
Accounts receivable		28,239		1,165		29,404		24,774		1,117		25,891
Other assets		3,675		1,707		5,382		6,980		3,904		10,884
Prepaids		8,478		901		9,379		5,806		495		6,301
Interest rate swaps		2,005		—		2,005		—		—		—
	$	70,133	$	6,070	$	76,203	$	59,379	$	8,314	$	67,693
Total assets	$	2,390,234	$	93,929	$	2,484,163	$	2,357,080	$	92,176	$	2,449,256
LIABILITIES
Non-current liabilities
Debt	$	1,005,850	$	24,671	$	1,030,521	$	1,225,490	$	37,042	$	1,262,532
Interest rate swaps		—		—		—		2,655		—		2,655
Deferred income taxes		170,700		—		170,700		157,211		—		157,211
Other liabilities		4,917		468		5,385		4,793		488		5,281
	$	1,181,467	$	25,139	$	1,206,606	$	1,390,149	$	37,530	$	1,427,679
Current liabilities
Debt		298,968		65,609		364,577		77,966		51,602		129,568
Accounts payable and accrued liabilities		56,013		3,181		59,194		39,880		3,044		42,924
Exchangeable units of subsidiaries		9,061		—		9,061		8,612		—		8,612
Distributions payable		—		—		—		4,323		—		4,323
	$	364,042	$	68,790	$	432,832	$	130,781	$	54,646	$	185,427
Total liabilities	$	1,545,509	$	93,929	$	1,639,438	$	1,520,930	$	92,176	$	1,613,106
EQUITY
Unitholders' equity	$	663,707	$	—	$	663,707	$	659,124	$	—	$	659,124
Non-controlling interest		181,018		—		181,018		177,026		—		177,026
Total equity	$	844,725	$	—	$	844,725	$	836,150	$	—	$	836,150
Total liabilities and equity	$	2,390,234	$	93,929	$	2,484,163	$	2,357,080	$	92,176	$	2,449,256

	Three months ended September 30, 2026						Three months ended September 30, 2025
	Statement of Income		Joint Venture Investments		Proportionate Share (Non-IFRS)		Statement of Income		Joint Venture Investments		Proportionate Share (Non-IFRS)
Rental revenue	$	59,199	$	4,230	$	63,429	$	53,313	$	8,562	$	61,875
Property operating expenses		(10,371)		(1,227)		(11,598)		(9,098)		(1,438)		(10,536)
General and administrative expenses		(4,200)		(111)		(4,311)		(4,077)		(164)		(4,241)
Interest and finance costs		(18,449)		(1,215)		(19,664)		(16,702)		(2,076)		(18,778)
Share of income in joint venture investments		1,669		(1,669)		—		2,331		(2,331)		—
Other expenses		(8,664)		—		(8,664)		—		—		—
Change in fair value of financial instruments		348		653		1,001		543		(87)		456
Change in fair value of properties		(750)		(661)		(1,411)		(12,132)		(2,466)		(14,598)
Net income before income taxes and unit expense	$	18,782	$	—	$	18,782	$	14,178	$	—	$	14,178
Deferred income tax expense		(4,464)		—		(4,464)		(3,345)		—		(3,345)
Current income tax (expense) recovery		(574)		—		(574)		407		—		407
Unit expense		(298)		—		(298)		(2)		—		(2)
Net income	$	13,446	$	—	$	13,446	$	11,238	$	—	$	11,238
Net income attributable to
Unitholders	$	7,863	$	—	$	7,863	$	8,230	$	—	$	8,230
Non-controlling interest		5,583		—		5,583		3,008		—		3,008
Net Income	$	13,446	$	—	$	13,446	$	11,238	$	—	$	11,238