Slate Grocery REIT

The call did not include reported revenue, EPS, or gross margin figures. Management said the REIT completed over 569,000 square feet of leasing in Q2 2026, with renewal spreads of 16.7% above expiring rents and new deals 41% above comparable average in-place rent. Same-property NOI increased by $3.8 million, or 2.3% on a trailing 12-month basis, and portfolio occupancy was 93.6%. Average in-place rent was $13.10 per square foot, and the weighted average interest rate on debt was 5% with over 90% of debt fixed-rate. No formal next-quarter or full-year guidance was provided, though management said one property, Heritage Heights, is held for sale and expected to close in the next couple of weeks, to be reported in Q3.

Blair Welch emphasized the resilience of grocery-anchored real estate and pointed to favorable sector fundamentals, including elevated construction costs and tight lending conditions that limit new development and support landlord pricing power. He framed the quarter as one of strong leasing execution and positive rent growth, while highlighting that the REIT’s debt structure provides a stable financing outlook. His tone was constructive and confident, but he also noted that the strategic review is still ongoing with no set date for an announcement.

Joseph Pleckaitis clarified that any costs related to the strategic review were fully adjusted out and that nothing flowed through FFO this quarter. The financial commentary centered on the REIT’s balance sheet stability, with over 90% of debt fixed at a 5% weighted average interest rate, reducing exposure to near-term rate volatility. He did not provide additional cash, liquidity, or capital allocation figures beyond confirming the review costs were excluded from FFO.

Analysts asked for an update on the strategic review, and management said there is still no date, though the special committee continues its process. On vacancies, Allen Gordon said the REIT had roughly 260,000 square feet of vacates in the quarter, most of which were anticipated, and that 4 of the 10 largest vacates have already been leased with prospects and letters of intent on several others. On dispositions, Blair Welch said Heritage Heights is currently held for sale and the REIT expects to close it in the next couple of weeks.