Plaza Retail REIT (PLZ.UN) Q4 2024 earnings summary

Executive summary

• Achieved record Same Asset NOI growth, strong lease renewal spreads, and excellent occupancy rates in 2024, reflecting operational excellence and strategic growth in retail real estate.

• Improved portfolio quality and resilience through development completions, sale of non-core assets, and expansion in core markets.

• Portfolio is dominated by open-air, essential needs, and value retail properties, well-positioned for macroeconomic uncertainty.

• Renewed and leased over 1 million sq ft, demonstrating robust tenant demand and high barriers to entry in Canadian retail real estate.

Financial highlights

• Q4 2024 NOI was $18.9M, up 8.5% year-over-year; full-year NOI was $75.0M, up 6.6%.

• Same Asset NOI grew 4.8% for the quarter and 3.4% for the year.

• Excluding CAD 2.6 million in reorganization costs, Q4 FFO per unit was nearly 11% higher and AFFO per unit 31% higher year-over-year; annual FFO per unit up 2%, AFFO per unit up 6%.

• Q4 profit and total comprehensive income was $8.5M, reversing a $3.8M loss in Q4 2023; full-year profit was $25.5M, up $5.2M year-over-year.

• Q4 FFO was $8.5M ($0.076/unit), down 15.4% year-over-year; AFFO was $6.0M ($0.054/unit), down 8.8%.

Outlook and guidance

• Expecting to maintain similar Same Asset NOI growth in 2025, with potential for incremental growth from intensification projects.

• Management expects continued strong retailer demand and positive impact from lower interest rates through 2025.

• Restructuring expected to yield CAD 1.2 million in annual G&A cost savings, realized evenly over 2025.

• Strategic focus shifted from greenfield development to optimizing and intensifying the existing portfolio.

• Forward-looking statements are subject to risks including economic, retail, and capital market conditions, interest rates, inflation, and competitive real estate dynamics.