Slate Grocery Reit Class U · TSX:SGR.U
Slate Grocery Reit Class U — Q1 2024 Earnings Presentation
23 slides from Slate Grocery Reit Class U's earnings presentation, May 2024
Slide 1: Slate Grocery REIT Investor Update
Slate Grocery REIT Investor Update SLATE
Slide 2: Slate Grocery REIT - Overview
Slate Grocery REIT - Overview Pure-play grocery- 1 O Ox anchored focused SGRUN =< ° S2 4p Asset value '? ° Properties All U.S. locations ' Square feet’ 15.3Mm 24 States ' S12 49 PSF in-place rent ! e Note: Amounts are in USS. As at March 31, 2024. . 2amount is shown at proportionate interest, which
Slide 3: Outlook on Grocery
Outlook on Grocery SLATE Wedgewood Commons, Port St. Lucie, FL
Slide 4: Why Grocery Real Estate?
Why Grocery Real Estate? Necessity Based Critical to day-to-day life I Defensive Asset Class fl Proven to outperform in periods of economic volatility Oo —_ Facilitates Omni-Channel Distribution thb All purchase methods require brick-and-mortar stores Supply Chain Efficiencies Stores near end-consum
Slide 5: Consumers Require Essential Goods in Good and Bad Times
Consumers Require Essential Goods in Good and Bad Times Food retailers comprise 18 of the 25 largest consumer good distributors globally! Top 25 Global Retailers, Ranked by Revenue Walmart Inc Amazon Costco Schwarz Group Home Depot Kroger JD.com Walgreens Aldi Target Cvs Lowe's Ahold Delhaize Tesco
Slide 6: 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00%
14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00%
Slide 7: Grocery Stores Facilitate the Last Mile
Grocery Stores Facilitate the Last Mile Grocery stores play a critical role in distributing food and other essential goods to end consumers by facilitating the last mile of food logistics i } 1 1 89% | Over 94% ofgrocer | == == 1 Sales are fulfilled using | of Grocer Sales { I 1 q physical stores 1
Slide 8: Shopping Center Fundamentals Remain Strong
Shopping Center Fundamentals Remain Strong Demand for grocery-anchored centers and limited new construction has resulted in record-low new supply and accretive rent mark-to-market opportunities Shopping Centers - Rent Comparison’ SPSF per annum (68%) $30.00 (46%) $23.21 $12.49 Portfolio Average New
Slide 9: Operations and Strategy Update
Operations and Strategy Update SLATE
Slide 10: World Class Grocery and Essential Based Tenants
World Class Grocery and Essential Based Tenants Top five tenants SGR’s portfolio is comprised of the world’s largest, most sophisticated, credit-worthy grocers, including six of the top seven US grocers by market share tenants Grocery Market Share Rank* % of Portfolio! Kroger O4% Essential tenancies
Slide 11: Strong Presence in Growing Markets
Strong Presence in Growing Markets —— New York @O) BB 1% of cua %of GLA 1% || 5% - 10% of GLA #of Properties 12 <5% of GLA ro North Carolina ‘ Top 5 MSAs % of GLA % of GLA 13% Dallas 6% #ofProperties 16 Atlanta 6% Charlotte 5% Greenville 4% (14) Rochester 4% - Georgia % of GLA Th # of Properties 9 T
Slide 12: Upside Through Under Market Rents
Upside Through Under Market Rents Historically low vacancy rates combined with under market rents provide significant opportunity to grow NOI across the portfolio 6 5% Shopping Center . ° Vacancy Rate! 6020 $2270 $23.21 $2082 $2114 216 32 2% GLA Expiring in the In-Place Rents are . (e) next 3 years
Slide 13: Near-Term Loan Maturities
Near-Term Loan Maturities SGR is engaged in positive discussions with lenders to extend its upcoming corporate revolver and term loan facilities that expire in 2024 & 2025 a 4.4%! L------ I leighted Avg. 9, Interest Rate 22% 23% 12% 5% 4% = ie = 7 2024 2025 2026 2027 2028 2029 2030 2031 2032+ Credit
Slide 14: Operational Excellence
Operational Excellence Strong Leasing Fixed-Rate Debt ESG Integration 770K +10.8% 94.2% 283 1.3m Total SF Total Spread As of Q12024 Signed Green Leases Total Square Footage Robust leasing volumes Fixed majority of the REIT’s | Advanced key ESG initiatives at strong rental rate total debt and address
Slide 15: The Investment Opportunity
The Investment Opportunity j “y | ; Sheridan Square, Miami-Fort Lauderdale, FL SLATE
Slide 16: Trading Discount to Net Asset Value
Trading Discount to Net Asset Value Significant discount toNAV “2 $3199 H + 8.3% despite having the ° . 5 8.0% ’ lowest in-place , 79% A , 78% wa 18% ON 213 f . e ied 4 rents and highest S24. 4e oa : . rss ’ $2308, ¢ grocery-anchored percentage. 4 4 $20.32 $20.35 arom -7 66% ; 63% 7 86% $1249 y T..
Slide 17: Environmental, Social & Governance
Environmental, Social & Governance ESG Priorities Current ESG Initiatives a * Energy, carbon, water and waste data collection will support Managing climate change risks and opportunities IFRS/ISSB ' sustainability and climate reporting requirements. * Energy audits are being considered to support th
Slide 18: Closing Thoughts
Closing Thoughts (Cr IO Grocery-anchored real estate facilitates the last mile of food logistics and has proven its resiliency and ability to perform in all market conditions The REIT’s in-place rents are significantly below market, providing runway for long-term revenue growth and value creation Wi
Slide 19: Additional Information
Additional Information SLATE
Slide 20: Strong Corporate Governance
Strong Corporate Governance Compensation, Governance Independent Audit Committee Investment Committee and Nominating Committee Andrea Stephen 4 (Chair of the Board) Yes Member Chair Member an Colum Bastable Yes Chair Member Member 9 Christopher Chee Yes Member ri Patrick Flatley Yes Member ? Marc Ro
Slide 21: Analyst Coverage
Analyst Coverage CIBC©® CIBC Capital Markets Sumayya Syed sumayya.syed@cibc.com RAYMOND JAMES Raymond James Brad Sturges brad.sturges@raymondjames.ca Cormark Securities RBC Capital Markets C) CORMARK Sairam Srinivas Pammi Bir SECURITIES INC ssrinivas@cormark.com RBC pammi.bir@rbccm.com ® Laurentian
Slide 22: 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 23: Slate Asset Management
Slate Asset Management S ATE 121 King Street W, Suite 200 Toronto, ON M5H 3T9 slateam.com