Slate Grocery REIT (SGR.UN) AI Stock Analysis

• Market Cap: C$908.91M
• Dividend Yield: 7.95%
• Average Volume (3M): 122.41K
• Price to Earnings (P/E): 15.1
• Beta (1Y): 0.84
• Revenue Growth: 1.80%
• EPS Growth: 46.83%
• Country: CA
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Retail
• EPS (TTM): 0.19
• Shares Outstanding: 59,009,000
• 10 Day Avg. Volume: 118,235
• 30 Day Avg. Volume: 122,413
• PEG Ratio: 0.09
• Price to Book (P/B): 0.84
• Price to Sales (P/S): 2.72
• P/FCF Ratio: 8.48
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$14.36
• Price Target Upside: -5.77% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: C$17.00 ▲(11.55% Upside)

Slate Grocery REIT's strong financial performance and positive earnings call outlook are the most significant factors driving the score. The stock's attractive valuation and stable technical indicators further support its potential. However, careful management of liabilities and strategic cash flow management are essential for sustained growth.

Positive Factors

Strong Leasing Activity

The robust leasing activity indicates strong demand for Slate Grocery REIT's properties, supporting revenue growth and enhancing long-term occupancy stability.

Stable Portfolio Occupancy

High occupancy rates reflect the essential nature of grocery-anchored properties, ensuring steady rental income and reducing vacancy risks.

Positive Leverage and Financing Stability

Fixed-rate debt reduces exposure to interest rate fluctuations, ensuring predictable financing costs and supporting financial stability.

Negative Factors

Substantial Liabilities

High liabilities can strain financial resources and limit flexibility, potentially impacting the REIT's ability to invest in growth opportunities.

Vacancies from Earlier in the Year

Past vacancies highlight challenges in maintaining full occupancy, which can affect rental income and necessitate increased leasing efforts.

Fluctuating Cash Management Strategies

Inconsistent cash management can lead to unpredictability in financial planning, impacting the REIT's ability to fund operations and growth consistently.

Slate Grocery REIT Business Overview & Revenue Model

Company Description

Slate Grocery REIT is an owner and operator of U.S. grocery-anchored real estate. The REIT owns and operates approximately U.S. $1.3 billion of 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 provide unitholders with durable cash flows and the potential for capital appreciation over the longer term.

How the Company Makes Money

Slate Grocery REIT generates revenue primarily through rental income from its portfolio of grocery-anchored retail properties. The REIT enters into long-term leases with tenants, which typically include major grocery chains and other essential retail businesses, ensuring a steady stream of cash flow. Additionally, the company benefits from annual rent escalations and potential revenue from property management fees. Strategic partnerships with leading grocery retailers enhance tenant quality, contributing to lower vacancy rates and increased rental income. The diversified nature of its tenant base, along with the essential nature of grocery retail, provides resilience against economic downturns, further stabilizing its revenue streams.

Slate Grocery REIT Financial Statement Overview

Summary

Slate Grocery REIT demonstrates strong revenue growth and effective cost management, resulting in healthy margins. The balance sheet shows a balanced use of leverage, though liabilities require careful monitoring. Cash flow generation is robust, but strategic cash management remains crucial.

Income Statement

Slate Grocery REIT has shown consistent revenue growth over the years, with a noticeable increase from 2021 to 2024. The gross profit margin is strong, indicating effective management of costs relative to revenue. However, the net profit margin, while positive, reflects a moderate level of profitability, suggesting room for improvement in controlling other operational expenses. The EBITDA margin is robust, highlighting the company's ability to generate earnings before accounting for interest, taxes, depreciation, and amortization.

Balance Sheet

The balance sheet of Slate Grocery REIT presents a moderate debt-to-equity ratio, indicative of a balanced leverage strategy. However, the return on equity has shown variability, suggesting fluctuating efficiency in generating profits from shareholders' equity. The equity ratio is relatively stable, signifying a solid capital structure. Nevertheless, the company’s total liabilities are substantial, which could pose risks if not managed properly.

Cash Flow

The cash flow statements reveal a positive trend in free cash flow, reflecting the company's capacity to generate cash after capital expenditures. The operating cash flow to net income ratio indicates solid cash conversion, enhancing financial flexibility. However, fluctuations in financing and investing cash flows suggest potential volatility in cash management strategies.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	211.84M	209.13M	203.28M	177.49M	138.28M	126.13M
Gross Profit	137.28M	135.40M	130.47M	127.41M	100.86M	91.50M
EBITDA	162.24M	128.47M	86.77M	140.66M	104.87M	77.40M
Net Income	46.26M	39.67M	13.60M	128.80M	90.87M	41.26M
Balance Sheet
Total Assets	2.26B	2.23B	2.24B	2.27B	1.74B	1.32B
Cash, Cash Equivalents and Short-Term Investments	26.44M	22.67M	23.59M	20.39M	14.04M	2.36M
Total Debt	1.20B	1.17B	1.16B	1.13B	937.74M	726.37M
Total Liabilities	1.42B	1.38B	1.37B	1.34B	1.11B	870.84M
Stockholders Equity	920.54M	673.47M	687.44M	740.51M	619.02M	452.72M
Cash Flow
Free Cash Flow	64.05M	67.04M	71.78M	51.95M	46.12M	36.61M
Operating Cash Flow	71.38M	70.97M	76.30M	58.99M	50.80M	39.35M
Investing Cash Flow	-44.83M	-10.43M	-20.55M	-381.74M	-190.85M	5.79M
Financing Cash Flow	-29.87M	-61.46M	-52.55M	329.11M	151.72M	-45.19M

Slate Grocery REIT Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15.24
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SGR.UN, the sentiment is Positive. The current price of 15.24 is above the 20-day moving average (MA) of 15.00, above the 50-day MA of 14.85, and above the 200-day MA of 14.04, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 58.89 is Neutral, neither overbought nor oversold. The STOCH value of 84.31 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:SGR.UN.

Slate Grocery REIT Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SGR.UN	78 Outperform	C$908.91M	15.14	6.49%	7.95%	1.80%	46.83%
MRG.UN	76 Outperform	C$899.04M	7.41	6.37%	4.41%	3.83%	63.32%
PLZ.UN	76 Outperform	C$467.14M	12.15	7.14%	6.56%	4.53%	197.86%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
AX.UN	63 Neutral	C$801.32M	-9.39	-4.93%	7.28%	-20.06%	19.27%
DRM	58 Neutral	C$785.82M	9.60	5.70%	3.50%	-17.89%	―
HOM.UN	54 Neutral	C$658.63M	-25.58	-3.64%	4.57%	-6.91%	82.31%

Slate Grocery REIT Corporate Events

Slate Grocery REIT Reports Strong Leasing and Income Growth

The recent earnings call for Slate Grocery REIT painted a picture of robust performance and strategic foresight. Despite challenges posed by higher financing costs and a muted transaction volume, the sentiment was overwhelmingly positive. This optimism was driven by impressive leasing volumes, net operating income growth, and effective debt management strategies.