Q1/26: Leasing Strength Continues, But AFFO Growth Pushed Out To 2027

Research evidence excerpt

Q1/26: Leasing Strength Continues, But AFFO Growth Pushed Out To 2027

Real Estate/REITs

Slate Grocery REIT

TD SECURITIES INC. - CANADA EARNINGS UPDATE

May 13, 2026

Price: $11.81 (05/12/2026) Q1/26: Leasing Strength Continues, But AFFO

Price Target: $11.50 Growth Pushed Out To 2027

HOLD (2)

ESG SCORE: 65/100

Sam Damiani, CFA^ THE TD COWEN INSIGHT

416 983 9640

SGR continues to see healthy demand across its portfolio, supporting strong operating metrics

sam.damiani@tdsecurities.com

and SPNOI growth trending towards mgmt's long-term range. That said, our revised estimates

Golden Nguyen-Halfyard^ have pushed our outlook for resuming AFFO growth to 2027. SGR's unit price is up +13% since

416 308 3842 Oct 31, broadly in line with both U.S. and Canadian peers, and we view current valuation as

golden.nguyenhalfyard@tdsecurities.com

fair.

Key Data

Symbol TSX: SGR/U-T Impact: NEUTRAL

Beta: 1.15 ■SPNOI growth rises closer to management's longer-term target range. Q1 rebounded to

52-Week Range: $12.09-$10.11 +3.1% (+1.7% excluding lease termination fees) versus the +1.4% print in Q4 and the longer-

Market Cap: $698.5MM term +2% to +5% outlook. The quarter included ~$0.5mm of lease termination income tied to

Current Dist per Unit: $0.86 the planned move-out by Tom Thumb at a property in Texas (14th Street Market), which is

Current Dist Yield: 7.3% being backfilled by a Club4 Fitness.

Units O/S (f.d.) (mm): 60.4

■Leasing spreads remain strong on healthy volume with occupancy holding near peak

Float Units (mm): 55.8

levels. This reflects the market that is enjoying steady demand and a lack of new supply.

Enterprise Value

$2,172.1 SGR is off to a strong start to the year, achieving +19% and +49% spreads on renewals at(MM):

BV/Share: $11.20 market and new leases, respectively.