Derek Warren Slate Grocery REIT SGR.UN-T HOLD Feb 14, 2025

SGR's small size adds some risk, but it is priced well enough and cash flow is stable. 
3% to 5% growth is expected. 
We would prefer DIR.UN but if industrial sector exposure is not needed we would be fine with SGR. 
Our January 23 comments still apply, but the valuation is better today.  
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Listed in Canada, owns properties across the US. Likes the sector of grocery-anchored shopping centres. Low growth, but steady. Only 1% growth expected this year, so no distribution increase anticipated. Above-average leverage.

Stable distribution. Canadian REIT that invests in US grocery assets. Decent portfolio, even if it is in secondary markets (which may not be bad for grocery markets). Attractive valuation. Pretty steady earnings grower. 

Issue is overpayment of distribution, not sure it's sustainable, interest costs really cutting into bottom line. Top line muted, only 0.5% growth this past quarter. Buying stock rather than paying down debt. Look elsewhere, try FCR.

Trades on the TSX, but owns retail exclusively in the US. Grocery-anchored is quite defensive. In southern US and secondary markets. Not seeing the same growth as peers. Occupancy down. Look elsewhere.

Grocery-anchored retail centres across the US in good-sized (though not the biggest) cities. Doesn't own because of liquidity. Debt levels are high, but making good progress on that. Environment for average American is starting to look up. Nice source of income.