SGR.U Slate Grocery REIT

Slate Grocery REIT (TSX: SGR.U) (TSX: SGR.UN) (“Slate Grocery” or the “REIT”), an owner and operator of U.S. grocery-anchored real estate, announced today that it has entered into an agreement with a syndicate of underwriters led by BMO Capital Markets and CIBC Capital Markets (collectively, the "Underwriters") to sell, on a bought deal basis, 6,360,000 class U units of the REIT (the “Units”) at a price of C$11.80 per Unit for gross proceeds to Slate Grocery of approximately C$75 million (the "Offering"). In addition, Slate Grocery has granted the Underwriters an over-allotment option to purchase up to an additional 954,000 Units on the same terms and conditions, exercisable at any time, in whole or in part, up to 30 days after the closing of the Offering. The Offering is expected to close on or about December 10, 2020 and is subject to customary conditions, including approval of the Toronto Stock Exchange. The Units will be offered by way of a prospectus supplement to the REIT’s short form base shelf prospectus dated March 2, 2020, which prospectus supplement is expected to be filed with the securities commissions and other similar regulatory authorities in each of the provinces and territories of Canada on or about December 7, 2020. The REIT intends to use the net proceeds from the Offering to repay existing indebtedness, to fund future acquisitions, and for general trust purposes. Since the beginning of 2020, the REIT has purchased approximately U.S. $90.1 million of grocery-anchored properties. The REIT continues to have a robust pipeline of grocery-anchored property acquisition opportunities that it is actively evaluating.

The Units have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, (the “1933 Act”) and may not be offered, sold or delivered, directly or indirectly, in the United States, or to, or for the account or benefit of, “U.S. persons” (as defined in Regulation S under the 1933 Act), except pursuant to an exemption from the registration requirements of the 1933 Act. This press release does not constitute an offer to sell or a solicitation of an offer to buy any Units in the United States or to, or for the account or benefit of, U.S. persons.

About Slate Grocery REIT (TSX: SGR.U / SGR.UN)Slate Grocery REIT is an owner and operator of U.S. grocery-anchored real estate. The REIT owns and operates approximately U.S. $1.3 billion of critical real estate infrastructure across major U.S. metro markets that communities rely upon for their daily needs. The REIT’s resilient grocery-anchored portfolio and strong credit tenants provide unitholders with durable cash flows and the potential for capital appreciation over the longer term. Visit slategroceryreit.com to learn more about the REIT.

About Slate Asset ManagementSlate Asset Management is a leading real estate focused alternative investment platform with approximately $6.5 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 demonstrated ability to originate and execute on a wide range of compelling investment opportunities. Visit slateam.com to learn more.

Caution Regarding Forward Looking InformationCertain information herein constitutes “forward-looking information” as defined under Canadian securities laws which reflect management’s expectations regarding objectives, plans, goals, strategies, future growth, results of operations, performance, business prospects and opportunities of the REIT. The words “plans”, “expects”, “does not expect”, “scheduled”, “estimates”, “intends”, “anticipates”, “does not anticipate”, “projects”, “believes”, or variations of such words and phrases or statements to the effect that certain actions, events or results “may”, “will”, “could”, “would”, “might”, “occur”, “be achieved”, or “continue” and similar expressions identify forward-looking statements. Some of the specific forward looking statements contained herein include, but are not limited to, statements with respect to the following: the use of the net proceeds of the Offering; the timing for the filing of the prospectus supplement; the intention of the REIT to complete the Offering on the terms and conditions described herein; and the date on which the closing of the Offering is expected to occur. Such forward-looking statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations.

Forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable by management as of the date hereof, are inherently subject to significant business, economic and competitive uncertainties and contingencies. When relying on forward-looking statements to make decisions, the REIT cautions readers not to place undue reliance on these statements, as forward-looking statements involve significant risks and uncertainties and should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not the times at or by which such performance or results will be achieved. A number of factors could cause actual results to differ, possibly materially, from the results discussed in the forward-looking statements. Additional information about risks and uncertainties is contained in the filings of the REIT with securities regulators.

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For Further InformationInvestor Relations+1 416 644 4264ir@slateam.com