Slate Grocery REIT Class U · TSX:SGR.U
Slate Grocery REIT Class U — Q1 2022 Earnings Presentation
21 slides from Slate Grocery REIT Class U's earnings presentation, May 2022
Slide 1: Slate Grocery REIT Investor Update Q1 2022
Slate Grocery REIT Investor Update Q1 2022
Slide 2: Slate Grocery REIT – Overview
Slate Grocery REIT – Overview 95% Grocery-anchored TSX SGR.UN SGR.U 107 Properties All U.S. locations 13.2M Square feet 23 States Legend $1.9B Asset Asset value1 Presence in 23 of the top 50 U.S. Metropolitan Statistical Areas (“MSAs”) 1 Includes the REIT’s proportionate share of its joint ventures
Slide 3: Consumers Require Essential Goods in Good and Bad Times
Consumers Require Essential Goods in Good and Bad Times Grocery retailers comprise 20 of the top 25 largest consumer good distributors globally Retail Sales Country of Revenue Net Profit Countries of Rank Company Origin (US$M) Margin (%) Dominant Format Operation 1 Wal-Mart Stores U.S. 523,964 2.9%
Slide 4: World Class Grocery and Essential Based Tenants
World Class Grocery and Essential Based Tenants Top grocery tenants1 Essential tenancies Omnichannel distribution SGR’s portfolio is comprised of the world’s High concentration of essential and grocery SGR’s properties are key to the distribution largest, most sophisticated, credit-worthy tenants of
Slide 5: Outlook on Grocery
Outlook on Grocery
Slide 6: Strength of Grocery Real Estate
Strength of Grocery Real Estate Amid rising inflation, grocery stores are leading in share of total consumer spending… Share of total consumer spend 1, % …And consumers intend to continue spending more on groceries and other essential goods in the next 12 months, and less on discretionary expenditur
Slide 7: Omnichannel Shopping Is Becoming the Norm
Omnichannel Shopping Is Becoming the Norm Consumers are returning to in-store shopping at a health clip Retail spending growth, by channel,¹ (%) 70 2020 2021 2022 60 E-commerce 50 40 30 20 10 Brick and mortar 0 -10 -20 F M A M J J A S O N D J F M A M J J A S O N D J F M Providing a seamless omnichan
Slide 8: Stores Remain Critical for Omnichannel Fulfillment
Stores Remain Critical for Omnichannel Fulfillment Neighborhood stores are essential to Grocery omnichannel model minimizing grocers’ last mile logistics costs In-store purchasing Labor and transportation comprise largest supply chain costs1 ~1% Savings in transportation and labor Home Grocery store
Slide 9: 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 Automated Inventory Management KroGo Smart Cart Walmart Automated, Full
Slide 10: Protection in an Inflationary Environment
Protection in an Inflationary Environment Net leases act as an inflation hedge, providing protection against the rising cost of non- controllable expenses What is a Net Lease? SGR Portfolio A net lease is a type of lease agreement in which a tenant is responsible for paying their proportionate share
Slide 11: Operations and Strategy Update
Operations and Strategy Update
Slide 12: Operational Excellence
Operational Excellence 01 Strong leasing volumes and rental spreads +15.8% +38.3% with a robust pipeline going forward Rental spreads on total Rental spreads on new leasing in Q1 2022 leasing in Q1 2022 02 Stable occupancy demonstrates the continued 100% 93.2% strong demand for grocery-anchored prod
Slide 13: 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 14: 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 15: Environmental, Social & Governance
Environmental, Social & Governance ESG Priorities: Current ESG Initiatives • Slate has always been committed to creating a world class Managing climate change risks and opportunities environment for our people and being a leading corporate citizen and industry participant • Our stakeholders include
Slide 16: The Path Forward
The Path Forward SLATE
Slide 17: The Investment Opportunity
The Investment Opportunity Slate Grocery REIT is undervalued relative to US peers1 2022E AFFOx 24.5x 21.9x 21.2x 20.7x 20.0x 18.9x 18.6x 18.0x 17.1x 15.2x 12.6x Federal Realty ROIC Urban Edge Regency Kimco Realty Phillips Edison Acadia Realty SITE Centers Brixmor Kite Realty Slate Grocery Properties
Slide 18: The Investment Opportunity
The Investment Opportunity Slate Grocery REIT is undervalued relative to Canadian peers1 2022E AFFOx 29.1x 22.6x 17.5x 17.1x 16.7x 15.9x 15.7x 15.4x 12.7x 12.6x Summit Granite Dream Industrial Choice Crombie SmartCentres First Capital RioCan Plaza Retail Slate Grocery Industrial Properties REIT Indu
Slide 19: Closing Thoughts
Closing Thoughts 01 Grocery-anchored real estate facilitates the last mile of food logistics and has proven its resiliency and ability to perform in all market conditions 02 Accretive acquisitions and proactive asset management have enhanced the scale and durability of the REIT’s portfolio 03 The RE
Slide 20: 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 21: Slate Asset Management contact
Slate Asset Management 121 King Street W, Suite 200 Toronto, ON M5H 3T9 slateam.com