Good morning, ladies and gentlemen, and welcome to the Slate Grocery REIT Q2 2024 Financial Results Conference Call. At this time, all lines are in listen-only mode. Following the presentation, we'll conduct a question-and-answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Thursday, August 8th, 2024, and I would now like to turn the conference over to Shivi Agarwal, Manager of Finance. Please go ahead.
Thank you, operator, and good morning, everyone. Welcome to the Q2 2024 Conference Call for Slate Grocery REIT. I am joined this morning by Blair Welch, Chief Executive Officer, Joe Pleckaitis, Chief Financial Officer, Connor O'Brien, Managing Director, Allen Gordon, Senior Vice President, and Braden Lyons, Vice President.
Before I get started, I would like to remind participants that our discussion today may contain forward-looking statements, and therefore, we ask you to review the disclaimers regarding forward-looking statements as well as non-IFRS measures, both of which can be found in Management's Discussion and Analysis. You can visit Slate Grocery REIT's website to access all of the REIT's financial disclosure, including our Q2 2024 investor update, which is now available. I will now hand over the call to Blair Welch for opening remarks.
Thank you, Shivi, and hello, everyone. We are pleased to report a strong second quarter of growth for Slate Grocery REIT. Our team completed over 700,000 sq ft of total leasing in the quarter at attractive rental rate increases that drove healthy net operating income growth.
Over 80,000 sq ft of new deals were completed at 28% above comparable average in-place rent, and non-option renewals were completed at 12.8% above expiring rents. The impact of several consecutive quarters of strong leasing at high spreads is now materializing in net operating income growth. Same property net operating income increased by $1.4 million or 3.5% year-over-year this quarter.
Our average in-place rent of $12.56 per sq ft remains well below market average of $23.38, providing runway for continued rent increases to drive net operating income growth. We continue to prudently manage our balance sheet to ensure the REIT remains protected in the current interest rate environment.
Over 94% of the REIT's total debt remains fixed, with a weighted average interest rate of 4.5%, and we are actively managing near term debt maturities with productive lender conversations ongoing. Despite our strong position, the REIT's unit continued to trade at a discount to net asset value, which we believe presents a compelling investment opportunity. In June, the REIT closed the sale of a stabilized non-grocery-anchored property at a premium to IFRS book value, further validating our net asset value.
At the end of June 30, the REIT's unit price represents a 42.8% discount to net asset value. Even so, the REIT remains a top quartile performer compared to U.S. and Canadian retail REIT peers. We believe fundamentals in the grocery-anchored real estate sector point to continued stable performance. Over the past 5 years, retail has experienced the lowest amount of new supply among other property types, including office, apartment, and industrial.
Today, high construction costs and elevated interest rates are continuing to keep new retail supply near record lows. Availability in the neighborhood, community, and strip center segment also remains at a 15-year low, giving landlords pricing power to increase rental rates. Grocery sales remain healthy, growing nearly 2% year-over-year at June 2024, the highest rate in the last 3 months.
This backdrop, coupled with our well below-market rents, positions Slate Grocery REIT to continue growing revenue and increasing value for all unitholders. On behalf of the Slate Grocery REIT team and the board, I'd like to thank the investor community for their continued confidence and support. I will now hand it over for questions.
Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. Should you have a question, please press star, followed by one on your touchtone phone. You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press star followed by two. If you're using a speakerphone, please lift the handset before pressing any keys. And one moment, please, for your first question. And your first question comes from Sairam Srinivas with Cormark Securities. Please go ahead.
Thank you, operator. Good morning, everybody. Just looking at the organic growth numbers, SPNOI growth this quarter seems pretty strong, and if you look at a couple of quarters ago, it surely seems like it's ramping up now. Would you say this would probably be the sign of, you know, the historical investments you've been doing in the leases, and should we see this as a run rate going forward?
Yeah, you know, good question. As we've been discussing on the previous several quarters, all the strong leasing we've done and, and how we report is we do the leasing, and the lease will come on in future quarters. And what we're seeing now is the leasing that, for example, we did six months ago, now that's all there is f or example, we'd be paying rent now and online. So we would continue to see for the next several quarters, this sort of Net Operating Income growth because of the leasing we've done in the past s o, that's really what's going on.
That's awesome. And just jumping onto financing, I know there's a bunch of maturities coming up this year and then next year. Can you give us some color in terms of how the REIT is actually looking at these maturities and your strategy around refinancing those?
Yeah, you know, we've been actively contacting all of our lenders. We're quite pleased to report there's activity on the bank side, on the LifeCo side, on the CMBS side, for grocery-anchored real estate. You know, we hope to be announcing here in the next quarter some of our finalized plans for refinancing, but, you know, we've been working on it a nd unlike other types of real estate.
T here is active demand from lenders to lend to grocery-anchored s o, we do not foresee significant changes or issues with our capital stock, and we're pretty pleased about it b ut, we've been working on it for a while because, you know, you know how the market is, but I think we're gonna be pleasantly surprised with how we can execute it.
That's amazing. Good to hear, Blair. Maybe on the refinancing, is it too early, or are you able to kind of give a hint around what the rates look like on refinancing?
Sorry, so what it looks like? I'm sorry, Sai, what were you saying?
The rates on refinancing. I mean, if you can probably give a hint of where the rates are coming in at.
Yeah, I mean, I would say just in general, what we're seeing for grocery-anchored, spreads haven't changed significantly, say, from if you were gonna do this five years ago. What has changed is obviously the base rate. So, you know, the cost of financing is up, but not because of the risk premium that lenders apply i t's just the underlying base rate.
But, you know, the REIT does have derivatives in place for just under the next three years to keep our interest rate low. So, you know, I think that, you know, that coupled with, you know, not the increase in spreads and, in theory, perhaps some reduction in the base rates, we feel in our models we're being conservative, and I think we hope to outperform b ut, the risk spreads for grocery-anchored real estate financing have not changed, which we're pleased about.
That is amazing. Thanks for color, Blair. I turn back.
Okay.
Thank you. As a reminder, if you wish to ask a question, please press star one on your telephone keypad. There are no further questions at this time. I would now like to turn the call back over to Shivi Agarwal.
Thank you, everyone, for joining the Q2 2024 Conference Call for Slate Grocery REIT. Have a great day.
Thank you, ladies and gentlemen. This call has now concluded. You may now disconnect.