Slate Grocery and Killam Apartment REIT report Q2 earnings

Slate Grocery REIT and Killam Apartment REIT have reported their second-quarter results, highlighting growth in net operating income (NOI) and occupancy levels across their respective sectors.

Slate Grocery REIT reported more than 569,000 square feet of leasing activity. CEO Blair Welch noted that renewal leases were completed at rents 16.7% above expiring rates, while new leases reached rates 41% above the average in-place rent. The REIT's portfolio occupancy stands at 93.6%. Management cited elevated construction costs and limited new retail development as factors strengthening landlord pricing power. The company also reported a weighted-average interest rate of 5%, with over 90% of debt at fixed rates.

Killam Apartment REIT reported 3.0% same-property NOI growth across its portfolio, driven largely by strength in Atlantic Canada. Apartment occupancy reached 97.6% at the end of the quarter. CEO Philip Fraser noted that increased federal defense spending is contributing to economic activity in the company's operating markets. While revenue grew, the company noted higher interest expenses and an office vacancy at 50 Westmount Place reduced funds from operations (FFO) by approximately C$900,000.