CA - Slate Grocery REIT: Attractive Enough To Monitor But Too Risky To Enter Now

2024-05-01 22:03:16 ET

Summary

• My initial bull case of Slate Grocery REIT was based on the embedded average rents that are 30% below market level, depressed P/FFO, and positive leasing momentum.
• So far and including Q1, 2024, Slate has managed to keep the momentum on the leasing front, slowly but surely closing the gap between the in-place and market-level rents.
• Yet, risks for a dividend cut have increased.
• In this article I elaborate on the main aspects why I suggest to not allocate in Slate now, but rather keep it under the radar until the dividend cut occurs.

My initial bull case on Slate Grocery REIT ( OTC:SRRTF ) was circulated on May, 2023 and since then I have issued several follow-up articles covering the quarterly financial dynamics of Company. While the focus and motivation behind going long was to capture the double digit dividends, the Stock has quite consistently ticked lower and lower rendering the total returns negative (at ca. negative 10%)....

For further details see: