EL7.AI
StocksMedium•13 November 2026•
3 min read

Slate Grocery REIT Revenue Rises 11% to $59.199 Million in Third Quarter

Key Facts

1Rental revenue was $59.199 million in the third quarter of 2026, up 11% year over year.
2Funds from operations totaled $15.358 million, down 6.8% from a year earlier.
3Portfolio occupancy was 93.5% on September 30, 2026, versus 94.4% at the end of 2025.
4New leasing covered 21,450 square feet, down 71.1% year over year.
5Unitholders are scheduled to vote on the acquisition on November 25, 2026.

Slate Grocery REIT reported rental revenue of $59.199 million for the three months ended September 30, 2026, up 11% from $53.313 million in the same period a year earlier. Funds from operations (FFO), a non-IFRS measure, totaled $15.358 million, or $0.25 per weighted-average unit. The company reported $16.474 million, or $0.27 per unit, in the third quarter of 2025. Revenue rose while funds from operations fell 6.8% year over year. Net income also increased to $13.446 million from $11.238 million a year earlier, a rise of 19.6%.

Net operating income totaled $43.262 million, up 0.6% from $42.992 million in the year-earlier quarter. On a same-property basis, net operating income rose 0.8% to $42.618 million from $42.267 million across a portfolio of 112 properties. For the twelve months ended September 30, the measure increased 1.5% to $167.127 million, compared with $164.708 million in the prior period. These comparisons show limited growth in income from existing properties during the quarter, with a larger improvement when performance is measured over a full year. In the second quarter of 2026, the company reported year-over-year same-property net operating income growth of 1.9% for the quarter and 2.1% for the twelve months ended in June.

The company completed 42 lease renewals at rates 13.4% above expiring rents and signed 10 new leases at rates 18.2% above the average in-place rents at comparable properties. Leasing activity covered a total of 410,673 square feet, with a rent spread of 8.4%. In the third quarter of 2025, activity covered 417,145 square feet, and the spread was 14.4%. New leasing specifically fell to 21,450 square feet from 74,104 square feet a year earlier, a decline of 71.1%. The rent spread for new leases also narrowed to 18.2% from 34.8% in the comparable period.

Portfolio occupancy was 93.5% on September 30, 2026, compared with 94.4% on December 31, 2025, while the number of properties fell to 114 from 115. Chief Executive Blair Welch said leasing activity was driven by tenant demand in grocery-anchored and retail properties. He added that average in-place rent was $13.09 per square foot and that the company completed leasing more than 410,000 square feet at a spread of 8.4% above expiring rents. These indicators keep renewal and new-lease spreads above prior rent levels, alongside declines in occupancy and new leasing area. The company did not hold a conference call after announcing its results.

The results come as the company prepares for unitholders to vote on a $13-per-unit cash acquisition offer from a joint venture between Brixmor and Everview. The special meeting is scheduled for November 25, 2026, at 11 a.m. Eastern Time to consider the transaction. The offer announced in September represented a premium of about 20% to the closing price on September 23, the last trading day before the company announced a distribution suspension. According to the announcement, the transaction includes 23 grocery-anchored shopping centers for $636 million, plus 92 centers for $1.71 billion, for a stated total value of $2.34 billion. The company expects to close the transaction in the first quarter of 2027, subject to the conditions being met, and will not declare or pay distributions for periods beginning in October 2026 through closing.