Slate Grocery REIT

Good morning ladies and gentlemen and welcome to the Slate Grocery REIT second quarter 2026 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 0 for the operator. This call is being recorded on Friday, August 7, 2026. And I would now like to turn the conference over to Senator Gisrael. Thank you. Please go ahead.

Thank you, Operator. And good morning, everyone. Welcome to the Q2 2026 conference call for Slate Grocery REIT. I am joined this morning by Blair Welch, Chief Executive Officer, Joe Pleckaitis, Chief Financial Officer, and Alan Gordon, Senior Vice President. Before getting started, I would like to remind participants 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 Discussion and Analysis. You can visit Slate Grocery REIT's website to access all of the REIT's financial disclosure, including our Q2 2026 Investor Update, which is available now. I will now hand over the call to Blair Welch for opening remarks.

Thank you Sena, and hello everyone. We are pleased to report Slate Grocery REIT's second quarter financial and operating results. The REIT completed over 569,000 square feet of total leasing throughout the quarter, achieving strong rent growth on new and renewed leases. Renewal spreads were completed at 16.7% above expiring rents, and new deals were completed at 41% above comparable average in-place rent. Adjusting for completed redevelopments, same property net operating income increased by $3.8 million, or 2.3% on a trailing 12-month basis. Portfolio occupancy was 93.6%, and our portfolio's average in-place rent of $13.10 per square foot remains well below the market average. The REIT has a weighted average interest rate of 5%, with over 90% of its debt having fixed interest rates. This provides a stable outlook for the REIT's near-term financing costs, and 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. We continue to believe in the resilience of grocery-anchored real estate. Fundamentals in the grocery sector remain favorable, with elevated construction costs and tight lending conditions continuing to limit new retail development and overall retail availability. This dynamic continues to give landlords meaningful pricing power, supporting tenant retention and driving continued rent increases as leases expire. On behalf of the Slate Grocery REIT team and the board, I'd like to thank the investor community for their continued confidence and support. I will now hand it over for questions.