Slate Grocery REIT Declares Distribution for June 2025, Payout of $0.072 per Class U Unit.

Slate Grocery REIT has declared a distribution of $0.072 per Class U Unit for June 2025. Holders of Class A and Class I Units will receive a distribution in Canadian dollars based on the exchange rate at the time of payment. Distributions will be payable on July 15, 2025, to unitholders of record as of June 30, 2025.

Slate Grocery REIT (TSX: SGR.U / SGR.UN) has announced a monthly distribution of $0.072 per Class U Unit for June 2025. This distribution represents an annualized amount of $0.864 per Class U Unit. Holders of Class A and Class I Units will receive their distributions in Canadian dollars, based on the U.S./Canadian exchange rate at the time of payment. Distributions will be paid on July 15, 2025, to unitholders of record as of June 30, 2025 [1].

The REIT, which focuses on U.S. grocery-anchored real estate, owns and operates approximately $2.4 billion of critical real estate infrastructure across major U.S. metro markets. The resilient portfolio and strong credit tenants are expected to provide unitholders with durable cash flows and potential capital appreciation over the longer term [1].

Slate Grocery REIT's strong financial performance supports its ability to maintain consistent distributions. In its most recent earnings report for Q1 2025, the REIT reported rental revenue of $53.1 million and net operating income up 4.3% year-over-year on a same-property basis. Net income came in at $16.1 million, or about $0.14 per unit [2].

The REIT's high dividend yield, currently over 8%, makes it an attractive option for income-focused investors. The monthly cash flow can simplify budgeting for those relying on income investment, such as retirees. However, investors should consider the payout ratio and the U.S. dollar exposure when evaluating the REIT. The AFFO payout ratio in the most recent quarter came in slightly above 100%, indicating that the REIT prioritizes consistent distributions over reinvestment. The U.S. dollar exposure can work in favor of Canadian investors if the Canadian dollar weakens, as distributions are declared in U.S. dollars [2].

Investors should also consider the dividend safety scores and the length of time the dividends have been rising continuously. Slate Grocery REIT has shown strong operating performance and a history of maintaining its dividend, but as with any investment, there are risks and uncertainties to consider [3].

References:
[1] https://markets.ft.com/data/announce/detail?dockey=600-202506160800BIZWIRE_USPRX____20250616_BW148823-1
[2] https://ca.finance.yahoo.com/news/8-1-dividend-stock-paying-013000485.html
[3] https://beatmarket.com/blog/monthly-dividend-stocks/