High Dividend Yield Remains Anchored by Stability in Grocery (TSX:SGR.U:CA)

Ken Wiedemann

Investment work

Slate Grocery (SGR.UN:CAD and USD ADR SRRTF) is a REIT specializing in retail spaces anchored by grocery stores. Slate owns 117 properties in 24 states with an average rent of $12.37/sqft for 15.3 million square feet.

Food retail is anchored

E2024

E2025

E2026

Price-to-sell

2.2

2.2

2.2

Price to FFO

5.8

5.6

5.3

Type

% of the total rentable area

Weighted average lease term (years)

Food (anchor)

43.8%

5.2

Retail (not anchored)

48.3%

4.2

Free

5.9%

Type

square feet

Average base rent

Spread (difference between old and new rent)

Recovery

<10,000

$23.18

10.1%

Recovery

>10,000

$9.63

8.3%

New lease

<10,000

$21.40

24.3%

New lease

>10,000

$13.00

1.0%

Quarter ending September

Number of tenants

Weighted Average Rent ($/sqft)

Change

Renewal

68

$12.95

9.1%

New leases

31

$18.76

Total / Weighted average

99

$13.82

16.4%