Slate Grocery REIT : Announces US$54.3 Million Acquisition of 5 Grocery-Anchored Properties in the Southeastern United States
January 12, 2021 at 10:01 am EST
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Slate Grocery REIT (TSX: SGR.U) (TSX: SGR.UN) (the 'REIT'), an owner and operator of U.S. groceryanchored real estate, announced today that it has entered into an agreement to acquire a portfolio of five groceryanchored 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.
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 forwardlooking statements. Additional information about risks and uncertainties is contained in the filings of the REIT with securities regulators.
Slate Grocery REIT (the REIT) is a Canada-based open-ended mutual fund trust. The REIT focuses on acquiring, owning, and leasing a portfolio of grocery-anchored real estate properties (the properties) in the United States of America (the U.S.). Its objectives are to provide unitholders with stable cash distributions from a portfolio of grocery-anchored real estate properties in the United States. The REIT owns and operates real estate infrastructure across U.S. metro markets. The Company's properties include Centerplace of Greeley, River Run, Sheridan Square, Flamingo Falls, Northlake Commons, Countryside Shoppes, Creekwood Crossing, Skyview Plaza, Riverstone Plaza, Fayetteville Pavilion, Clayton Corners, Apple Blossom Corners, Hillard Rome Commons and Riverdale Shops, among others. The REIT's investment manager is Slate Asset Management (Canada) L.P.
SLATE GROCERY REIT 
