Slate Grocery Reit Class U · TSX:SGR.U
Slate Grocery Reit Class U — Merger or Acquisition (June 2022)
10 slides from Slate Grocery Reit Class U's merger presentation, June 2022
Slide 1: US$425 Million Grocery-Anchored Real Estate Portfolio Acquisition
Slate Grocery REIT US$425 Million Grocery-Anchored Real Estate Portfolio Acquisition Investment Summary June 2022
Slide 2: Investment Summary
Investment Summary • Slate Grocery REIT (“SGR”) is under contract to acquire 14 properties predominately located in the Southeastern United 14 Assets States for US$425M representing $174 psf and 6.9% cap rate (the “Acquisition”) • Concurrently, SGR has entered into a strategic joint venture with 91.
Slide 3: Pro Forma Slate Grocery REIT
Pro Forma Slate Grocery REIT TSX SGR.UN SGR.U 121 Properties All U.S. locations 15.7M Square feet 23 States $2.4B Asset value1 Existing SGR portfolio (107 assets) New acquisitions (14 assets) 1 Non-IFRS measure Slate Asset Management | 3
Slide 4: Pro Forma Portfolio Diversification
Pro Forma Portfolio Diversification Major Tenant Rankings Portfolio Income by Geography 6.6% FL 18.5% NC 12.1% 5.2% NY 11.5% GA 7.1% 4.8% PA 5.9% TX 5.5% 3.0% VA 5.2% SC 5.1% 3.0% MN 3.6% MI 3.3% SGR Portfolio New Acquisitions SGR Portfolio New Acquisitions Top-5 Tenants are all Leading National Gro
Slide 5: Strategic Joint Venture
Strategic Joint Venture Transaction Summary • The REIT has entered into Subscription Agreements with Slate’s new open-ended vehicle, the NA Essential Fund, a vehicle managed by Slate, which will result in the formation of a strategic joint venture (the “Joint Venture”) - The Joint Venture is part of
Slide 6: Transaction Structure
Transaction Structure Slate Grocery REIT $799M Common Slate Grocery Equity Investment L.P. 81.6% $180M Investment 18.4% Slate North American Essential Real Estate Income Fund L.P. Slate North American Essential Real Estate REIT Inc. Slate Grocery Investments Inc. Slate Grocery Slate Grocery I L.P. I
Slide 7: Valuation Considerations
Valuation Considerations NA Essential is NAV Per Unit investing in the Joint Venture at a valuation in line with $13.01 $11.73 SGR’s Q1 2022 IFRS $10.68 NAV and implies a 21.8% premium to the current trading price Current Trading 1 Analyst NAV Joint Venture Valuation Price PSF2 $142 $146 $150 2 Cap
Slide 8: Investment Highlights
Investment Highlights Portfolio & Management Validation Real Estate Validation The Joint Venture creates a long-term The NA Essential Fund is investing at partnership with a leading global a valuation in line with Q1 2022 IFRS sovereign wealth fund that endorses the value reflecting a pro forma 6.8%
Slide 9: Pro Forma SGR Balance Sheet
Pro Forma SGR Balance Sheet Key Takeaways In US$Ms unless otherwise noted Pro Forma SGR 01 Assets Acquiring a portfolio of properties in RE Assets $ 2,067 high growth markets, with strong JV Investments 103 performing grocers at a significant Cash 8 Other Assets 27 discount to replacement cost Total
Slide 10: Disclaimer
Disclaimer Forward-Looking Statements This presentation contains forward-looking information (which may include financial outlook) within the meaning of applicable securities laws. These statements include, but are not limited to, statements concerning the REIT’s objectives, its strategies to achiev
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