Slate Grocery REIT Class U · TSX:SGR.U
Slate Grocery REIT Class U — Q3 2021 Earnings Presentation
18 slides from Slate Grocery REIT Class U's earnings presentation, November 2021
Slide 1: Slate Grocery REIT Investor Update Q3 2021
Slate Grocery REIT Investor Update Q3 2021
Slide 2: Slate Grocery REIT at a glance
Slate Grocery REIT 96% Grocery-anchored TSX SGR.UN SGR.U 107 Properties All U.S. locations 13.2M Square feet 23 States Legend Historical SGR portfolio (68 assets) $1.9B Asset value1 Acquired since June 2020 (39 assets) Note: All amounts in US$; As at September 30, 2021. 1 Non-IFRS measure. Slate Gro
Slide 3: World Class Grocery and Essential Based Tenants
World Class Grocery and Essential Based Tenants Top five tenants (% base rent) Essential tenancies Omnichannel distribution Portfolio boasting diverse roster of the High concentration of essential and grocery SGR’s properties are key to the distribution world’s largest, most sophisticated, credit- t
Slide 4: Outlook on Grocery
Outlook on Grocery
Slide 5: Strength of Grocery Real Estate
Strength of Grocery Real Estate Omnichannel grocers’ revenues remain well above pre-pandemic levels (same-store sales change1) 22.2% 19.1% 15.3% 14.5% 14.0% 5.2% 2.3% 1.5% Pu blix Ahold Delhaize Albertson s Walmart Krog er (1.5%) (0.6%) 2-Year Stack Year-over-Year Neighborhood stores are essential i
Slide 6: Stores Remain Critical for Omnichannel Fulfillment
Stores Remain Critical for Omnichannel Fulfillment Grocery omnichannel model Leading automated fulfillment solutions In-store purchasing Local fulfillment centers • Located within or adjacent to neighborhood stores • One hour fulfillment • Fast implementation with medium capital investment Grocery s
Slide 7: Grocers are Enhancing the In-Store Experience
Grocers are Enhancing the In-Store Experience In addition to online fulfillment strategies, grocers are continuing to invest in their in-store infrastructure to improve the customer experience Smart Carts Automated Self-Checkout Tech-Centric Partnerships KroGo Smart Cart Walmart Automated, Full-Serv
Slide 8: Operations and Strategy Update
Operations and Strategy Update
Slide 9: Operational Excellence
Operational Excellence 01 Record quarterly new leasing volume at strong 229K +20.5% spreads with deep pipeline going forward Square feet of new leasing in Q3/21, a Rental spreads on new leasing in Q3/21 quarterly record 02 Occupancy gains demonstrate the continued 5th 93.5% strong demand for grocery
Slide 10: Record New Leasing Performance in Q3 2021
Record New Leasing Performance in Q3 2021 Sustained grocery sales growth, including increased e-commerce penetration that is being fulfilled through local stores, is driving strong real estate fundamentals 235,000 229,290 23.0% 20.5% 196,438 185,000 16.5% 18.0% 15.1% 13.9% 13.0% 135,000 6.6% 8.0% 4.
Slide 11: SGR was Highly Opportunistic During the Pandemic
SGR was Highly Opportunistic During the Pandemic $90M Acquisition $54M Acquisition $9M Acquisition from Kroger $390M Acquisition 7 properties (8.7% cap rate) and 5 properties (7.7% cap rate) from Concurrently executed new lease Transformational 25 property ~$17M price reduction motivated vendor with
Slide 12: Track Record of Creatively Sourcing Acquisitions
Track Record of Creatively Sourcing Acquisitions SGR has executed over $550 million of opportunistic acquisitions since June 2020 2 single asset 7 property portfolio 5 property portfolio 25 property portfolio acquisitions Date June 1, 2020 February 10, 2021 July 15 & September 9, 2021 September 22,
Slide 13: The Path Forward
The Path Forward SLATE
Slide 14: The Investment Opportunity
The Investment Opportunity Slate Grocery REIT is undervalued relative to industrial and retail peers1 2022E AFFOx 34.6x 24.8x 21.2x 18.2x 17.4x 17.2x 16.2x 15.3x 13.0x 10.9x Summit Granite Dream Industrial Crombie First Capital Choice SmartCentres RioCan Plaza Retail Slate Grocery Industrial Propert
Slide 15: Grocery Exposure with Attractive Yield and Upside
Grocery Exposure with Attractive Yield and Upside SGR offers investors SGR’s units provide an attractive yield vs. leading grocer bonds plus equity upside1 exposure to 25.0% America’s largest omnichannel grocers and provides an 20.0% attractive yield with the potential for capital appreciation 15.0%
Slide 16: Closing Thoughts
Closing Thoughts 01 Grocery-anchored real estate facilitates the last mile of food logistics and has proven its resiliency and defensive nature in all market conditions 02 Continued strong operational performance in 2021 positions the business to drive further organic growth going forward 03 Continu
Slide 17: Disclaimer
Disclaimer Forward-Looking Statements This presentation contains forward-looking information within the meaning of applicable securities laws. These statements include, but are not limited to, statements concerning the REIT’s objectives, its strategies to achieve those objectives, as well as stateme
Slide 18: Slate Asset Management contact
Slate Asset Management 121 King Street W, Suite 200 Toronto, ON M5H 3T9 slateam.com