Slate Grocery REIT (TSE:SGR.UN)
TSX:SGR.UN
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Slate Grocery REIT
(TSX:SGR.UN)
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Rating:71Outperform
Price Target:
C$17.00
â–²(7.73% Upside)
Action:ReiteratedDate:02/18/26
The score is driven primarily by solid underlying financial performance (steady revenue and positive free cash flow) tempered by high and recently rising leverage. Support comes from constructive earnings-call fundamentals (strong leasing spreads, stable occupancy, refinancing progress, and low near-term lease expiries) and an attractive income profile via a high dividend yield, while technical indicators are mixed and limit near-term confidence.
Positive Factors
Leasing Momentum & Spreads
Sustained, multi-quarter leasing outperformance across renewals and new deals is a durable driver of NOI and cash flow. Strong spreads indicate the portfolio can capture mark-to-market rents over time, reducing vacancy risk and supporting income stability across 2–6 months and beyond.
Negative Factors
Elevated Leverage
A materially levered capital structure reduces balance-sheet flexibility and magnifies exposure to interest rates or asset-value declines. Even with recent partial fixes, higher debt limits the REIT’s capacity to opportunistically acquire or absorb shocks, affecting stability over the coming months.
Read all positive and negative factors
Positive Factors
Negative Factors
Leasing Momentum & Spreads
Sustained, multi-quarter leasing outperformance across renewals and new deals is a durable driver of NOI and cash flow. Strong spreads indicate the portfolio can capture mark-to-market rents over time, reducing vacancy risk and supporting income stability across 2–6 months and beyond.
Read all positive factors
Slate Grocery REIT (SGR.UN) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$949.48M
Dividend Yield7.95%
Average Volume (3M)122.41K
Price to Earnings (P/E)14.3
Beta (1Y)0.82
Revenue Growth1.80%
EPS Growth46.83%
CountryCA
Employees5
SectorReal Estate
Sector Strength53
IndustryREIT - Retail
Share Statistics
EPS (TTM)0.25
Shares Outstanding59,147,583
10 Day Avg. Volume118,235
30 Day Avg. Volume122,413
Financial Highlights & Ratios
PEG Ratio2.46
Price to Book (P/B)1.00
Price to Sales (P/S)3.08
P/FCF Ratio10.84
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$13.11Price Target Upside-16.92% Downside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)0.99
Revenue Forecast (FY)C$241.84M
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 thei...
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 ret...
Slate Grocery REIT Earnings Call Summary
Earnings Call Date:Feb 10, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 12, 2026
Earnings Call Sentiment Positive
The call emphasized multiple operational and strategic positives: sustained strong leasing performance (14.9% renewal spreads; 34.9% new-lease spreads), stable 94.4% occupancy, a pipeline of redevelopments contributing to NOI, successful JV consolidation and a $90M portfolio refinance at favorable pricing (SOFR+180, ~5.3% all-in), and a balance sheet with ~87% fixed-rate debt. Lowlights were largely timing and transitional — modest trailing NOI growth (+2%), some lingering vacancies from earlier 2025, and a temporary uptick in reported leverage due to consolidation and refinancing timing. Overall, the highlights and strategic actions to delever and simplify structure outweigh the challenges, and management expressed confidence in continued rent growth and transaction opportunities in 2026.Positive Updates
Robust Leasing Activity and Strong Spreads
Completed over 1.7 million square feet of leasing during the year; renewal spreads averaged 14.9% above expiring rents and new deals were completed at 34.9% above comparable average in-place rent, marking 11 straight quarters of strong leasing performance.
Negative Updates
Modest Same-Property NOI Increase
Same-property NOI rose by only 2% (or $3.3 million) on a trailing 12-month basis, indicating modest near-term earnings growth despite strong leasing spreads.
Read all updates
Q4-2025 Updates
Positive
Negative
Robust Leasing Activity and Strong Spreads
Completed over 1.7 million square feet of leasing during the year; renewal spreads averaged 14.9% above expiring rents and new deals were completed at 34.9% above comparable average in-place rent, marking 11 straight quarters of strong leasing performance.
Read all positive updates
Company Guidance
Management guided that strong leasing momentum and disciplined capital allocation should drive continued rent and NOI growth, noting the REIT completed ~1.7 million sq ft of leasing in 2025 with 11 straight quarters of positive spreads (renewals +14.9%, new deals +34.9%), portfolio occupancy at 94.4% and average in-place rent of $12.86/sf versus a $24.34 market average (providing upside runway); same‑property NOI was up $3.3 million (+2% TTM, adj. for redevelopments) and management expects continued single‑digit NOI growth (low‑single digits, 2–5%), with less than 10% of GLA expiring in 2026; balance sheet actions include acquiring the remaining JV interest for $5.7 million, a post‑quarter $90 million 8‑property refinance (SOFR+180, all‑in ~5.3% with a 12‑month swap), repayment of revolver, over 87% of debt fixed and a weighted average interest rate of 5%, while the REIT’s weighted average cap rate remains above its borrowing cost (positive leverage); management reiterated a focus on deleveraging and opportunistic acquisitions given a healthy lending market (spreads ~170–185 bps) and recent disposals at about a mid‑7% cap.Slate Grocery REIT Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
62
Positive
Cash Flow
71
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 213.37M | 209.13M | 203.28M | 177.49M | 138.28M |
| Gross Profit | 138.34M | 135.40M | 130.47M | 127.41M | 100.86M |
| EBITDA | 129.86M | 128.47M | 86.77M | 140.66M | 104.87M |
| Net Income | 43.39M | 39.67M | 13.60M | 128.80M | 90.87M |
Balance Sheet | |||||
| Total Assets | 2.36B | 2.23B | 2.24B | 2.27B | 1.74B |
| Cash, Cash Equivalents and Short-Term Investments | 21.82M | 22.67M | 23.59M | 20.39M | 14.04M |
| Total Debt | 1.30B | 1.17B | 1.16B | 1.13B | 937.74M |
| Total Liabilities | 1.52B | 1.38B | 1.37B | 1.34B | 1.11B |
| Stockholders Equity | 659.12M | 673.47M | 687.44M | 740.51M | 619.02M |
Cash Flow | |||||
| Free Cash Flow | 60.71M | 67.04M | 71.78M | 51.95M | 46.12M |
| Operating Cash Flow | 66.96M | 70.97M | 76.30M | 58.99M | 50.80M |
| Investing Cash Flow | -51.94M | -10.43M | -20.55M | -381.74M | -190.85M |
| Financing Cash Flow | -15.87M | -61.46M | -52.55M | 329.11M | 151.72M |
Slate Grocery REIT Technical Analysis
Positive
15.78
Price Trends
15.45
Positive
15.19
Positive
14.50
Positive
Market Momentum
0.07
Negative
61.75
Neutral
84.93
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 15.78 is above the 20-day moving average (MA) of 15.26, above the 50-day MA of 15.45, and above the 200-day MA of 14.50, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 61.75 is Neutral, neither overbought nor oversold. The STOCH value of 84.93 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | C$473.77M | 8.66 | 10.04% | 6.56% | 4.53% | 197.86% | |
73 Outperform | C$4.13B | 7.47 | 18.40% | 5.74% | 4.11% | 35.99% | |
73 Outperform | C$4.57B | 3.77 | 25.30% | 4.71% | -0.83% | -28.93% | |
71 Outperform | C$949.48M | 14.29 | 6.49% | 7.95% | 1.80% | 46.83% | |
71 Outperform | C$4.71B | 18.23 | 4.85% | 7.22% | 0.48% | 96.32% | |
69 Neutral | C$3.75B | 21.64 | 3.54% | 5.56% | 7.31% | 74.70% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% |
* Real Estate Sector Average
TSE:SGR.UN
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.