Slate Grocery REIT: A Discounted and High Yielding Grocery-Anchored REIT

Slate Grocery REIT is a pure-play US grocery-anchored REIT with a market cap of ~$600 million. The company has a high monthly yield and has been discounted. Since May 2023, the total return has been strong, making it a potential investment opportunity for those looking for a high-yielding REIT.

Slate Grocery REIT (OTC:SRRTF) is a pure-play U.S. grocery-anchored real estate investment trust (REIT) with a market capitalization of approximately $600 million. The company has been making headlines with its high monthly yield and strong total return since May 2023. This makes Slate Grocery REIT an attractive investment opportunity for those seeking high-yielding REITs.

Slate Grocery REIT is focused on owning and operating grocery-anchored retail properties. Its portfolio includes 117 properties totaling 15.4 million square feet, valued at about $2.4 billion. The REIT's tenant base includes major players such as Kroger (NYSE:KR), Walmart (NYSE:WMT), and Ahold Delhaize, contributing to a high occupancy rate of 98.6%. [2]

The company reported its Q2 results for the period ending June 30, 2025, with total revenue growing 2.1% year-over-year to $53.4 million. This growth was driven by rental rate increases, strong leasing spreads, and contractual rent escalations. Despite the revenue uplift, profitability was modestly pressured by higher general and administrative expenses and interest and finance costs. Funds from Operations (FFO) totaled $15.0 million, or $0.25 per unit, unchanged from a year ago. [2]

Slate Grocery REIT's high monthly yield of 8.4% is a significant draw for income investors seeking predictable monthly cash flow. The REIT's balance sheet carries a fair degree of leverage, with a debt maturity profile that is staggered and manageable, ensuring no near-term liquidity concerns. The company has continued to cover its distributions with FFO, providing investors with a stable income stream. [2]

Investors should consider Slate Grocery REIT as a potential investment opportunity, given its strong total return since May 2023 and its high monthly yield. However, it is essential to conduct thorough due diligence and consider the company's specific risks and opportunities before making any investment decisions.

References:

[1] https://seekingalpha.com/article/4816200-slate-grocery-discounted-and-high-monthly-yielding-reit-to-buy?source=affiliate_program:stockanalysis.com&utm_medium=affiliate&utm_source=stockanalysis.com&affid=858&oid=16&transaction=0ff7639049104b0fa85fdb8706ecce1f
[2] https://www.investing.com/analysis/3-highyield-monthly-dividend-stocks-flying-under-the-radar-200665626