Monthly Dividend Stock In Focus: Slate Grocery REIT

Updated on May 13th, 2026 by Felix Martinez

Real estate investment trusts, or REITs, are often a favorite among investors seeking generous dividend yields, as these companies are required by law to distribute the vast majority of their income to shareholders.

Even better, many REITs distribute dividends monthly, providing regular cash flows. This can be a good opportunity for investors who need consistent, monthly payments.

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You can download our full Excel spreadsheet of all monthly dividend stocks (along with metrics that matter, like dividend yield and payout ratio) by clicking on the link below:

Monthly Dividend Stock In Focus: Slate Grocery REIT

Slate Grocery REIT (SRRTF) is a Canadian-based real estate investment trust that began paying a monthly dividend in 2014. The stock currently yields 7.3%, nearly six times the S&P 500 Index’s yield.

This article will evaluate the trust and its dividend to determine if Slate Grocery could be a good candidate for income-oriented investors.

Business Overview

Slate Grocery is an open-ended mutual fund trust headquartered in Toronto and listed on the Toronto Stock Exchange. U.S. investors can purchase the stock over-the-counter.

Although it is based in Canada, Slate Grocery primarily focuses on purchasing, owning, and leasing a portfolio of real estate properties in the United States.

Source: Investor Presentation

Slate Grocery’s portfolio of 115 properties is anchored almost exclusively by grocery stores. The trust has more than 15 million square feet of properties. As of the most recent quarter, the portfolio was valued at $2.4 billion.

Slate Grocery REIT reported solid first-quarter 2026 results, reflecting the resilience of its grocery-anchored shopping center portfolio. Rental revenue increased 11.8% to $59.3 million, net operating income (NOI) rose 3.0% to $42.5 million, and net income climbed 17.5% to $18.9 million. Same-property NOI grew 2.0% over the trailing twelve months, while net asset value per unit increased 1.0% to $13.79.

The REIT completed more than 725,000 square feet of leasing during the quarter, with renewals signed at rents 18.9% above prior levels and new leases at 49.0% above existing rents. Portfolio occupancy remained stable at 94.4%, and average in-place rent of $12.98 per square foot remained well below the estimated market rate of $24.59, providing substantial opportunity for future rent growth.

Financially, Slate Grocery REIT maintained a stable balance sheet with total assets of $2.37 billion and debt of $1.30 billion. Approximately 90.2% of debt carries fixed interest rates, with a weighted-average interest cost of 5.0%, helping limit refinancing risk. Although funds from operations (FFO) and adjusted funds from operations (AFFO) declined modestly, the REIT’s strong leasing activity, positive rental spreads, and conservative financing structure support continued cash flow growth and long-term value creation.

Growth Prospects

Slate Grocery counts among its tenants some of the largest grocery stores in the country.

Source: Investor Presentation

Walmart Inc. (WMT), Kroger Corporation (KR), and Walgreens (WBA) are Slate Grocery’s three largest tenants. The first two names account for more than 18% of the total portfolio, which comprises a significant number of properties with just two tenants.

Beyond Walmart and Kroger, however, no tenant accounts for more than 5% of the portfolio, providing Slate Grocery with a good amount of diversification amongst its clients. Only Walmart and Kroger contribute at least 9.0% of annualized base rents.

Additionally, Slate Grocery leases properties to six of the top seven U.S. grocery chains by market share. This means that the trust’s properties are visited by millions of people each week.

Expanding beyond just grocery stores, Slate Grocery has, among its tenants, 20 of the 25 largest consumer goods distributors in the world, including Amazon.com Inc. (AMZN), Home Depot (HD), Lowe’s Companies (LOW), and CVS Health Corp. (CVS).

The rise of e-commerce channels has changed the nature of retail. While this has impacted many types of retail companies, grocery stores have weathered these changes better than most.

The resilience of grocery stores can be attributed to their shift to online ordering, which has driven sales. The COVID-19 pandemic accelerated this transition, as grocery stores, along with many other businesses, had to adapt their operations under strict social distancing guidelines.

Slate Grocery’s tenants pivoted quickly, and 100% of the portfolio now provides omnichannel distribution, with most fulfilling e-commerce purchases from neighborhood store locations. The trust also has a presence in 23 of the country’s top 50 metropolitan areas.

Inflation has been a headwind for many industries, but most lease agreements include built-in rental escalators that have helped offset increased expenses for the trust. Moreover, while many REITs are struggling to cover their interest expense amid interest rates near a 23-year high, Slate Grocery has a strong interest coverage ratio.

With top-name tenants, multiple purchasing options for customers, and a strong property footprint, Slate Grocery should continue to see solid growth rates.

Dividend Analysis

That growth should enable Slate Grocery to continue paying its dividend, which currently yields an annualized rate of 7.3%. On the other hand, Slate Grocery has frozen its dividend over the last five years.

While investors seeking dividend growth may be disappointed, it is worth noting that the dividend has not been reduced since the second monthly distribution in 2014. Slate Grocery’s annualized dividend is $0.864.

The REIT currently has a payout ratio of 80%, which is fair for a REIT. Given the REIT’s healthy balance sheet and decent growth prospects, the dividend appears to have a meaningful margin of safety absent a severe recession.

Final Thoughts

Monthly dividend-paying stocks can provide more consistent cash flows. Additionally, Slate Grocery offers an exceptionally high yield, which appears safe for the foreseeable future. High-quality tenants also back the trust in some of the largest metropolitan areas in the U.S.

Slate Grocery’s tenants have adapted to the changing retail landscape by embracing e-commerce to drive sales. Investors might find the combination of all these characteristics an attractive investment opportunity.