Slate Retail REIT Provides Update on 2019 Capital Recycling Program

Slate Retail REIT (TSX: SRT.U) (TSX: SRT.UN) (the “REIT”), an owner and operator of U.S. grocery-anchored real estate, announced today the completion of two property dispositions that will generate gross proceeds of $24.9 million for the REIT. The properties sold include Wausau Pick n Save in Wausau, Wisconsin and Wellington Park in Cary, North Carolina. The REIT will use net proceeds to reduce outstanding debt and create liquidity for accretive new investment opportunities in the future.

Both dispositions reaffirm the REITs commitment to the capital recycling program, as outlined in our 2019 business plan, said Greg Stevenson, the REITs Chief Executive Officer. The disposal of these properties supports that there is continued interest in defensive grocery anchored properties, boding well for future net asset value growth in 2019.

Disposition Highlights

  • The disposition values reflect an implied cap rate of 7.0% on actual trailing twelve-month net operating income, as of January 31, 2019
  • The sale of Wausau Pick n Save and Wellington Park will occur at a 1.2% premium to their aggregate IFRS value at December 31, 2018
  • The properties were anchored by Lowes Foods and Pick n Save, and their disposal represents a continued strategy to strengthen the quality of the REITs portfolio by focusing on market dominant, national grocers with scale, in high-growth U.S. cities.

About Slate Retail REIT (TSX: SRT.U / SRT.UN)

Slate Retail REIT is a real estate investment trust focused on U.S. grocery-anchored real estate. The REIT owns and operates approximately U.S. $1.4 billion of assets located across the top 50 U.S. metro markets that are visited regularly by consumers for their everyday needs. The REITs conservative payout ratio, together with its diversified portfolio and quality tenant covenants, provides a strong basis to continue to grow unitholder distributions and the flexibility to capitalize on opportunities that drive value appreciation. Visit slateretailreit.com to learn more about the REIT.

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About Slate Asset Management L.P.

Slate Asset Management L.P. is a leading real estate investment platform with over $6 billion in assets under management. Slate is a value-oriented manager and a significant sponsor of all of its private and publicly-traded investment vehicles, which are tailored to the unique goals and objectives of its investors. The firm’s careful and selective investment approach creates long-term value with an emphasis on capital preservation and outsized returns. Slate is supported by exceptional people, flexible capital and a proven ability to originate and execute on a wide range of compelling investment opportunities. Visit slateam.com to learn more.

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