Strong Leasing Activity
The REIT completed over 417,000 square feet of total leasing throughout the quarter with renewal spreads at 15% above expiring rents and new deals completed at 35% above comparable average in-place rent.
Increase in Same-Property Net Operating Income
Adjusting for completed redevelopments, same-property net operating income increased by $4.3 million or 2.7% on a trailing 12-month basis.
Stable Portfolio Occupancy
Portfolio occupancy remained stable at 94%, indicating strong demand for grocery-anchored retail spaces.
Positive Leverage and Financing Stability
The REIT has a weighted average interest rate of 5%, with over 90% of its debt having a fixed interest rate, providing a stable outlook for near-term financing costs. The REIT's weighted average capitalization rate remains well above the weighted average interest rate for outstanding debt, allowing for positive leverage.
Favorable Market Conditions
Elevated construction costs and tight lending conditions constrain new retail development, creating a favorable environment for landlords to retain tenants and achieve meaningful rent increases.
Strong Market Rent Growth
Market rent is increasing at the same or above the in-place rents, supporting strong rental growth.