Education
About Us
Working with TipRanks
Follow Us
Slate Grocery REIT (TSE:SGR.UN)
TSX:SGR.UN
Top Page
Slate Grocery REIT
(TSX:SGR.UN)
Rating:75Outperform
Price Target:
C$16.00
▲(13.39% Upside)
Slate Grocery REIT (SGR.UN) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$840.54M
Dividend Yield8.56%
Average Volume (3M)77.61K
Price to Earnings (P/E)15.3
Beta (1Y)0.97
Revenue Growth2.96%
EPS Growth17.08%
CountryCA
EmployeesN/A
SectorReal Estate
Sector Strength54
IndustryREIT - Retail
Share Statistics
EPS (TTM)0.23
Shares Outstanding59,009,000
10 Day Avg. Volume86,901
30 Day Avg. Volume77,609
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$16.00Price Target Upside13.39% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Slate Grocery REIT Business Overview & Revenue Model
Company DescriptionSlate 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 MoneySlate Grocery REIT generates revenue primarily through leasing space in its grocery-anchored retail properties to tenants. The company collects rental income from long-term lease agreements with a diverse mix of necessity-based tenants, including grocery stores, pharmacies, and other essential service providers. This ensures consistent cash flow, as these types of tenants tend to have stable demand regardless of economic cycles. Additionally, Slate Grocery REIT may engage in strategic property acquisitions and dispositions to enhance its portfolio value and optimize returns. The trust's earnings are further supported by its focus on maintaining high occupancy rates and leveraging its strong relationships with major grocery chains and retailers, which can lead to favorable lease agreements and tenant retention.
Slate Grocery REIT Earnings Call Summary
Earnings Call Date:Aug 06, 2025
(Q2-2025)
| % Change Since: -1.19%|
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong performance in leasing volumes and net operating income growth, with effective debt management and refinancing strategies in place. However, higher financing costs have been a challenge, and the transaction volume remains muted. Despite these challenges, the overall sentiment is positive due to the significant achievements and strategic measures taken.Q2-2025 Updates
Positive Updates
Strong Leasing Volumes
Completed over 423,000 square feet of total leasing in Q2 2025 with renewal spreads at 13.8% above expiring rents and new deals at 28.8% above comparable average in-place rent.
Positive Net Operating Income Growth
Same-property net operating income increased by $5.7 million or 3.6% on a trailing 12-month basis.
Stable Portfolio Occupancy
Portfolio occupancy remained stable at 94%, with average in-place rent significantly below market average, providing room for rent increases.
Debt Management and Refinancing
Only $172 million of debt maturing through 2026, representing 12% of total debt. Successfully refinanced a 4-property portfolio for $39 million and entered into a $17 million credit facility.
Interest Rate Management
Amended interest rate swaps extending maturity, achieving a blended weighted average interest rate of 5%.
Negative Updates
Impact of Higher Financing Costs
Same-property NOI growth is being offset by higher financing costs, though measures have been taken to address this issue.
Limited Transaction Volume
Muted transaction volume in the real estate market due to current economic conditions, though interest remains strong for stable U.S. dollar cash flow assets.
Company Guidance
During the Slate Grocery REIT second quarter 2025 financial results call, the management highlighted several key metrics indicating a strong performance. The REIT achieved over 423,000 square feet of total leasing with renewal spreads at 13.8% above expiring rents and new deals at 28.8% above in-place rent. The portfolio occupancy remained stable at 94%, with an average in-place rent of $12.77 per square foot, significantly below the market average of $24, suggesting potential for future rent increases. The REIT reported a same-property net operating income increase of $5.7 million or 3.6% on a trailing 12-month basis. Furthermore, the REIT has only $172 million of debt maturing through the end of 2026, representing 12% of total debt, and successfully refinanced a 4-property portfolio for $39 million, securing a credit facility totaling $17 million. The management expressed confidence in maintaining strong leasing spreads and NOI growth at around 3% to 4% annually, despite the higher financing costs. They noted that the market dynamics, including limited supply and high demand for grocery-anchored real estate, create a favorable environment for continued growth.Slate Grocery REIT Financial Statement Overview
Summary
Slate Grocery REIT exhibits strong revenue growth with effective cost management, resulting in healthy margins. The balance sheet reflects a balanced leverage strategy, although high liabilities necessitate careful monitoring. Cash flow generation is robust but requires strategic management.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.85
Very Positive
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.70
Positive
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.78
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 210.29M | 209.13M | 203.28M | 177.49M | 138.28M | 126.13M |
| Gross Profit | 138.32M | 135.40M | 130.47M | 127.41M | 100.86M | 91.50M |
| EBITDA | 100.22M | 128.47M | 86.77M | 140.66M | 104.87M | 77.40M |
| Net Income | 42.17M | 39.67M | 13.60M | 128.80M | 90.87M | 41.26M |
Balance Sheet | ||||||
| Total Assets | 2.24B | 2.23B | 2.24B | 2.27B | 1.74B | 1.32B |
| Cash, Cash Equivalents and Short-Term Investments | 23.66M | 22.67M | 23.59M | 20.39M | 14.04M | 2.36M |
| Total Debt | 1.17B | 1.17B | 1.16B | 1.13B | 937.74M | 726.37M |
| Total Liabilities | 1.38B | 1.38B | 1.37B | 1.34B | 1.11B | 870.84M |
| Stockholders Equity | 670.91M | 673.47M | 687.44M | 740.51M | 619.02M | 452.72M |
Cash Flow | ||||||
| Free Cash Flow | 69.13M | 67.04M | 71.78M | 51.95M | 46.12M | 36.61M |
| Operating Cash Flow | 73.49M | 70.97M | 76.30M | 58.99M | 50.80M | 39.35M |
| Investing Cash Flow | -10.10M | -10.43M | -20.55M | -381.74M | -190.85M | 5.79M |
| Financing Cash Flow | -63.14M | -61.46M | -52.55M | 329.11M | 151.72M | -45.19M |
Slate Grocery REIT Technical Analysis
Positive
14.11
Price Trends
14.28
Negative
14.06
Positive
13.62
Positive
Market Momentum
-0.06
Positive
45.40
Neutral
16.50
Positive
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 14.11 is below the 20-day moving average (MA) of 14.27, below the 50-day MA of 14.28, and above the 200-day MA of 13.62, indicating a neutral trend. The MACD of -0.06 indicates Positive momentum. The RSI at 45.40 is Neutral, neither overbought nor oversold. The STOCH value of 16.50 is Positive, 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
Overall Rating
UnderperformOutperform
Sector (71)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | C$840.54M | 15.30 | 5.88% | 8.56% | 2.96% | 17.08% | |
75 Outperform | C$900.93M | 11.02 | 5.58% | 7.75% | -26.40% | ― | |
72 Outperform | C$460.50M | 13.23 | 6.45% | 6.67% | 5.14% | 209.83% | |
71 Outperform | ¥233.73B | 15.21 | 10.65% | 3.48% | 20.30% | 28.35% | |
68 Neutral | C$932.84M | 9.95 | 4.86% | 4.22% | 3.93% | -29.40% | |
| ― | $503.09M | ― | -3.37% | 7.98% | ― | ― | |
57 Neutral | C$665.32M | ― | -10.24% | 4.60% | -1.10% | 61.83% |
* Real Estate Sector Average
Performance Comparison
TSE:SGR.UN
Slate Grocery REIT
14.16
3.22
29.43%
TSE:DRM
DREAM Un Cl A
20.97
-3.18
-13.17%
TSE:MRG.UN
Morguard NA REIT UN
17.90
1.56
9.55%
TSE:PLZ.UN
Plaza Retail REIT
4.20
0.82
24.26%
ARESF
Artis Real Estate Investment
5.26
0.72
15.86%
TSE:HOM.UN
BSR Real Estate Investment Trust
17.01
0.05
0.29%
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.