Slate Grocery REIT (TSX:SGR.UN)Real Estate
Slate Grocery REIT is an unincorporated, open-ended trust established in January 2012 pursuant to the laws of the Province of Ontario. Slate Asset Management (Canada) LP, an alternative real estate investment platform, operates and manages the real estate properties in the REIT’s portfolio.
Slate Grocery REIT is a publicly listed real estate investment trust. The units of the trust are traded on the Toronto Stock Exchange (TSX) under the ticker symbol SGR.UN. The U units of the REIT also trades on the TSX under the ticker SGR.U.
Slate Grocery REIT owns and operates major real estate properties hosting grocery businesses in the metropolitan markets across the United States. Slate Grocery is involved in acquiring, managing and leasing a portfolio of commercial real estate properties for grocery retail businesses.
Currently, the Toronto based REIT holds nearly 80 grocery based properties accounting for 10.0 million square feet of gross leasable area in more than twenty states in the USA.
With a total asset value of approximately USD $1.4 billion, Slate Grocery REIT has a presence in Colorado, Connecticut, Florida, Georgia, Illinois, Kentucky, Maryland, Michigan, Ohio, North Carolina, Minnesota, New Hampshire, North Dakota, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, West Virginia and Wisconsin.
Salerno Village Square Bloomingdale Plaza, Meres Town Center, Oak Hill Village and Errol Plaza are some of the properties that are operated by the grocery-anchored REIT.
The top five tenants on the basis of annual base rent includes- Kroger (8.9 percent, Walmart (8.2 percent), Ahold Delhaize (4.8 percent), Publix (3.9 percent) and Southeastern Grocers (2 percent).
The remaining 72.2 percent annual base rent comes from necessity-based tenants across 1,217 leases- Supermarket and grocery (39 percent), other necessity-based and daily needs (14 percent), medical and personal services (13 percent), restaurants (13 percent), discount & off price (5 percent), fitness facilities (5 percent), sporting & footwear (2 percent), liquor stores (2 percent), dollar stores (2 percent) and pharmacy (1 percent).
On March 25, 2021, Slate Grocery REIT declared to acquire a grocery based portfolio that includes 25 properties covering a total area of 3.1 million square feet in key metro markets throughout the United States. The portfolio was valued at USD 390 million, and acquisition transaction amounted to equity buy value of USD $90 million, assuming current debt with 7.8 percent capitalization rate (which is USD $127 per square foot).
Since the outbreak of the COVID-19 pandemic, Slate Grocery REIT has enhanced the sanitation, health and safety measures at the properties to protect its employees and tenants.
121 King St W, Suite 200 Toronto, ON M5H 3T9
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