Slate Grocery REIT

Good morning ladies and gentlemen and welcome to the Slate Grocery REIT third quarter 2025 financial results conference call. At this time all lines are in listen only mode. Following the presentation we will conduct a question and answer session. If at any time during this call you require immediate assistance please press star zero for the operator. This call is being recorded on Thursday November 6, 2025. I would now like to turn the conference over to Shivi Agarwal, Manager with Finance, Slate Grocery REIT. Please go ahead.

Thank you, Operator, and good morning, everyone. Welcome to the Q3 2025 conference call for Slate Grocery REIT. I'm joined this morning by Blair Welch, Chief Executive Officer, Joe Placatus, Chief Financial Officer, Connor O'Brien, Managing Director, Alan Gordon, Senior Vice President, Brayden Lyons, Vice President. Before getting started, I would like to remind purchase of hints that our discussion today may contain forward-looking statements. And therefore, we ask you to review the disclaimers regarding forward-looking statements as well as non-IFRS measures, both of which can be found in management's discussion and analysis. You can visit Slate Grocery REIT's website to access all of the REIT's financial disclosure, including our Q3 2025 investor update, which is available now. I will now hand over the call to Blair Welch for opening remarks.

Thank you, Shivi, and hello, everyone. We are pleased to report another quarter of strong financial and operating results for Slate Grocery Reef. Our team continues to convert resilient demand for grocery anchor retail spaces into robust leasing at attractive rental spreads, 417,000 square feet of total leasing throughout the quarter. Renewal spreads were completed at 15% above expiring rents and new deals were completed at 35% above comparable average in-place rent. Adjusting for completed redevelopments, same property net operating income increased by $4.3 million, or 2.7%, on a trailing 12-month basis. Portfolio occupancy remained stable at 94%. And our portfolio's average in-place rent of $12.82 per square foot remains well below the market average of $24.09 per square foot, providing significant runway for continued rent increases. The REIT has a weighted average interest rate of 5%, with over 90% of its debt having a fixed interest rate on a proportionate basis. This provides a stable outlet for the REIT's near-term financing costs. The REIT's weighted average capitalization rate remains well above the REIT's weighted average interest rate for outstanding debt, allowing the REIT to maintain positive leverage. The REIT's attractive valuation, combined with continued net operating income growth, is expected to continue increasing the value of our portfolio over time. We continue to have strong conviction in the outlook for grocery-anchored real estate and the ability of this asset class to perform in today's economic environment. Recent consumer spending data shows that the essential goods are expected to remain a top priority for shoppers over the next three months, underscoring the stability and resilience of the grocery sector and grocery-anchored real estate. At the same time, fundamentals remain favorable, with elevated construction costs and tight lending conditions continuing to constrain new retail development and overall availability. This dynamic creates a favorable environment for landlords to retain existing tenants and achieve meaningful increases in rents as leases expire. Against this backdrop, we are staying focused on operational execution, prudent management of our balance sheet, and strong relationships with our tenants to position the REIT to deliver sustained growth and lasting value for all unit holders. On behalf of the Slate Grocery team and the board, I would like to thank the investor community for all their continued confidence and support.