Interest Costs Weigh on Q1; Retail Demand Remains Robust

研报英文原文证据摘录

Interest Costs Weigh on Q1; Retail Demand Remains Robust

May 20, 2026 | 16:38 ET~

Slate Grocery REIT

SGR.U-TSX Rating Price: May-20 Target Total Rtn Canadian Real Estate

SGR.UN Market Perform $11.25 $11.00 5%

Tom Callaghan, CPA, CA Analyst

tom.callaghan@bmo.com (416) 234-4680

Nensi Shkurti Associate

Interest Costs Weigh on Q1; Retail Demand Remains nensi.shkurti@bmo.com (416) 848-4759

John R Schady AssociateRobust

john.schady@bmo.com (416) 505-9670

Bottom Line: Legal Entity: BMO Nesbitt Burns Inc.

Post Q1/26 results, there is no change in our neutral stance on units of Slate Grocery REIT.

2YR Price Volume Chart

Strong U.S. grocery-anchored retail fundamentals and a meaningful MTM opportunity on 13

rents should continue to underpin steady organic growth across a portfolio with strong 12

defensive attributes. We balance these positive attributes against elevated leverage and 11

payout ratios. Amid a valuation which has re-rated relative to our retail peer group over 10 0.50.4

the past 24 months, we believe the opportunity is appropriately priced at current levels. 9 0.3

8 0.2

Maintain Market Perform rating and our US$11.00 target price. 0.1

7 0

Nov May Nov May

Key Points LHS: Price ($) / RHS: Volume (mm) Source: FactSet

Company Data in $

For a fulsome review of Slate Grocery, please see our recent initiation.

Distribution $0.86 Units O/S (mm) 60.0

Q1/26 Results. FFOPU of US$0.25 (-4.6% y/y) was below both our outlook and consensus

Yield 7.7% Market Cap. (mm) $675at US$0.26, respectively. The miss relative to our forecast was primarily driven by higher

interest expense (-$0.02/unit), partly offset by lower G&A (+$0.007/unit). NAV US$11.10 Prem/(Disc) to NAV 2.3%

Operating fundamentals. SP-NOI increased +3.1% y/y, primarily reflecting higher BMO Estimates in $