TORONTO--(BUSINESS WIRE)--Slate Grocery REIT (TSX: SGR.U) (TSX: SGR.UN) (the “REIT”), an owner and operator of U.S. grocery-anchored real estate, announced today that it has entered into an agreement to acquire a portfolio of five grocery-anchored assets for US$54.3 million (US$137 per square foot).
“We are excited to begin the new year with this opportunistic, off-market acquisition that promptly deploys capital from our most recent equity offering and further improves our ownership of essential grocery assets, a key component in last mile logistics,” said David Dunn, Chief Executive Officer of Slate Grocery REIT. “These properties are located in the REIT’s existing markets and increase our concentration of grocery and essential tenants, which has been critical in our strong performance throughout the pandemic.”
Acquisition Highlights
- Five properties comprising 396,471 square feet of gross leasable area.
- Existing occupancy of 95% with a grocer weighted average lease term of 5.6 years.
- Accretive to funds from operations per unit and adjusted funds from operations per unit.
- Resilient tenancies with 66% of revenue derived from essential tenants and 44% from grocers.
- Anchored by market leading, credit grocers including Kroger, Harris Teeter (Kroger), Food Lion (Ahold Delhaize) and Winn-Dixie.
- Markets offer attractive demographics, including strong population growth and household incomes as well as large and well-educated work forces.
- The transaction deploys a significant portion of the capital raised from the REIT’s most recent equity offering, completed on December 10, 2020.
The acquisition is expected to be completed in the first quarter of 2021 and remains subject to customary closing conditions.
The following is a summary of the acquisition properties:
Property |
Metropolitan Statistical Area |
Anchor |
Square Feet |
Bells Fork |
Greenville, NC |
Harris Teeter (Kroger) |
71,666 |
Mission Hills |
Naples, FL |
Winn-Dixie |
85,078 |
Parkway Station |
Atlanta, GA |
Kroger |
94,317 |
Tanglewood Commons |
Winston-Salem, NC |
Harris Teeter (Kroger) |
78,520 |
Westin Center |
Fayetteville, NC |
Food Lion (Ahold Delhaize) |
66,890 |
Total |
|
|
396,471 |
About Slate Grocery REIT (TSX: SGR.U / SGR.UN)
Slate 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 daily 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. Visit slategroceryreit.com to learn more about the REIT.
About Slate Asset Management
Slate Asset Management is a leading real estate focused alternative investment platform with approximately $6.5 billion in assets under management. Slate is a value-oriented manager and a significant sponsor of all of its private and publicly traded investment vehicles, which are tailored to the unique goals and objectives of its investors. The firm's careful and selective investment approach creates long-term value with an emphasis on capital preservation and outsized returns. Slate is supported by exceptional people, flexible capital and a demonstrated ability to originate and execute on a wide range of compelling investment opportunities. Visit slateam.com to learn more.
Forward-Looking Statements
Certain information herein constitutes “forward-looking information” as defined under Canadian securities laws which reflect management’s expectations regarding objectives, plans, goals, strategies, future growth, results of operations, performance, business prospects and opportunities of the REIT. The words “plans”, “expects”, “does not expect”, “scheduled”, “estimates”, “intends”, “anticipates”, “does not anticipate”, “projects”, “believes”, or variations of such words and phrases or statements to the effect that certain actions, events or results “may”, “will”, “could”, “would”, “might”, “occur”, “be achieved”, or “continue” and similar expressions identify forward-looking statements. Such forward-looking statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations.
Forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable by management as of the date hereof, are inherently subject to significant business, economic and competitive uncertainties and contingencies. When relying on forward-looking statements to make decisions, the REIT cautions readers not to place undue reliance on these statements, as forward-looking statements involve significant risks and uncertainties and should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not the times at or by which such performance or results will be achieved. A number of factors could cause actual results to differ, possibly materially, from the results discussed in the forward-looking statements. Additional information about risks and uncertainties is contained in the filings of the REIT with securities regulators.
SGR-AD
