Plaza Retail REIT (PLZ.UN) Q3 2025 earnings summary

Executive summary

• Achieved record quarterly FFO per unit of $0.111, up 8.8% year-over-year, and total FFO of $12.4 million, up 8.6%, driven by higher NOI from same-asset growth, acquisitions, and intensification projects.

• Same-property NOI increased 1.7% year-over-year, with committed occupancy at an all-time high of 98% and near-perfect 99% excluding enclosed malls.

• Leasing spreads on renewals averaged 18%, with all-time highs at 14% over the term, reflecting strong tenant demand.

• Profit and total comprehensive income for the quarter was $8.8 million, up 72.4% year-over-year, primarily due to changes in fair value of investment properties and non-cash adjustments.

• Intensification and development projects added $4 million to NOI year-to-date, or $5.8 million annualized.

Financial highlights

• Revenues for the quarter were $31.7 million, up 4.2% year-over-year; quarterly NOI was $20.5 million, up 4.2%.

• FFO per unit for the quarter was $0.111, up 8.8% year-over-year; AFFO per unit was $0.077, down 10.5% due to higher leasing and maintenance costs.

• FFO payout ratio improved to 63.1% from 68.4% year-over-year; AFFO payout ratio increased to 91.0% from 81.0%.

• Debt-to-assets ratio at 53.4%, down 10 basis points year-over-year; net debt-to-adjusted EBITDA at 9.2x.

• Liquidity at quarter end was $57 million, including cash, operating line, and available debt facilities.

Outlook and guidance

• Benefits from recent leasing and development projects, including 70,000 sq. ft. handed over to No Frills, are expected to have a greater impact starting in 2026.

• Ongoing optimization and intensification initiatives are expected to continue driving FFO growth and value creation.

• Same property NOI growth of 2% is considered achievable and safe for the next year, with renewal spreads filtering through future results.