Slate Grocery REIT Sees 1.7 Million Square Feet of Total Leasing in 2025

Why It Matters

The strong leasing volume and premium rent spreads signal robust cash‑flow potential, enhancing investor confidence in grocery‑anchored REITs as a defensive real‑estate segment. The financing actions improve balance‑sheet resilience, positioning Slate for continued valuation growth.

Key Takeaways

• 1.7M sq ft leased in 2025
• Renewals 14.9% above expiring rents
• New leases 34.9% above in‑place rent
• Occupancy stable at 94.4% year‑end
• Interest rate 5.0% with 87.8% fixed debt

Pulse Analysis

Grocery‑anchored real estate has emerged as a defensive pillar in a volatile market, and Slate Grocery REIT’s 2025 leasing performance illustrates that trend. By delivering 1.7 million square feet of new and renewed space, the REIT captured heightened consumer foot traffic and retailer confidence, translating into rent premiums that outpace industry averages. This leasing momentum not only boosts immediate revenue but also reinforces the asset class’s appeal to investors seeking stable, inflation‑linked returns.

Financially, Slate leveraged its strong leasing pipeline to achieve double‑digit rent spreads—renewals 14.9% and new deals 34.9% above comparable in‑place rents—while maintaining a high occupancy rate of 94.4%. The portfolio’s average in‑place rent of $12.86 per square foot remains well below the market benchmark, providing ample upside for future rent escalations. Coupled with a weighted‑average interest rate of 5.0% and 87.8% of debt locked at fixed rates, the REIT enjoys a favorable cost‑of‑capital profile that supports positive leverage and sustained NOI growth.

Strategic capital actions further solidify Slate’s positioning. The acquisition of full ownership in a 10‑asset joint venture for $5.7 million enhances refinancing flexibility and captures full mark‑to‑market gains, while the sale of a non‑grocery property frees capital to de‑leverage the balance sheet. A recent $90 million refinancing of eight properties underscores lender confidence in high‑quality grocery‑anchored assets. Together, these moves improve liquidity, reduce debt exposure, and set the stage for incremental portfolio valuation as the REIT capitalizes on its strong leasing foundation.

Slate Grocery REIT sees 1.7 million square feet of total leasing in 2025

By [Mario Toneguzzi](https://retail-insider.com/author/mariotoneguzzi/) · February 10, 2026

Toronto‑based Slate Grocery REIT, an owner and operator of U.S. grocery‑anchored real estate, has announced its financial results and highlights for the three and twelve months ended December 31, 2025, noting it completed 1.7 million square feet of total leasing throughout the year.

“Our fourth quarter and year‑end results underscore the resilience of grocery‑anchored real estate, even amid an evolving macroeconomic environment,” said Blair Welch, Chief Executive Officer of Slate Grocery REIT.

“Throughout 2025, our team maintained exceptional momentum, delivering high leasing volumes and double‑digit rental spreads that exceed our 2024 benchmarks. At the same time, by proactively managing our balance sheet, we believe we have secured near‑term financing stability that will help position the portfolio for continued long‑term performance.”

For the CEO’s letter to unitholders for the quarter, please follow the link here.

Slate noted these highlights:

• The REIT completed 1.7 million square feet of total leasing throughout the year at consistently high rental spreads that continue to drive strong performance

  • Renewals were completed at 14.9 % above expiring rents, and new deals were completed at 34.9 % above comparable average in‑place rent.

  • Adjusting for completed redevelopments, same‑property Net Operating Income increased by $3.3 million (2.0 %) in the fourth quarter on a trailing twelve‑month basis.

  • Portfolio occupancy remained stable at 94.4 % as of December 31, 2025.

  • The REIT’s average in‑place rent of $12.86 per square foot remains well below the market average of $24.34, providing meaningful runway for continued rent increases.

• The REIT has a weighted‑average interest rate of 5.0 %, with 87.8 % of its debt having a fixed interest rate, providing a stable outlook for near‑term financing costs

  • Subsequent to quarter‑end, the REIT refinanced an eight‑property portfolio for $90.0 million to consolidate existing property‑level mortgage loans, highlighting continued lender demand for high‑quality grocery‑anchored assets.

  • The REIT’s weighted‑average capitalization rate remains well above its weighted‑average interest rate, allowing the REIT to maintain positive leverage; this attractive valuation, combined with continued NOI growth, is expected to increase portfolio valuation over time.

• During the fourth quarter, the REIT completed two strategic transactions to strengthen tenant mix and further de‑lever the portfolio

  • On December 1, 2025, the REIT acquired the remaining minority interest in a 10‑asset joint‑venture portfolio for cash consideration of $5.7 million, bringing its ownership to 100 % and providing enhanced refinancing flexibility and the ability to fully capture further mark‑to‑market opportunities.

  • On December 9, 2025, the REIT strategically disposed of a non‑grocery‑anchored property located in Flower Mound, Texas, using proceeds from the sale to de‑lever the portfolio.