Plaza Retail REIT (PLZ.UN) Q4 2025 earnings summary

Executive summary

• Achieved strong growth in 2025 with a focus on essential needs and non-discretionary retail, driven by disciplined execution, optimization, and intensification strategies.

• Total FFO rose to CAD 44 million (CAD 0.395/unit), up 8.8% year-over-year, supported by same-asset performance, acquisitions, lower administrative expenses, and value-creation initiatives.

• Portfolio spans 191 properties (8.8 million sq ft), with high occupancy and concentration in open-air centers leased to national tenants.

• Committed occupancy remained strong at 97.6%, with leasing spreads at 13.4% and same-asset NOI up 1.7% despite tenant disruptions, notably the Toys R Us insolvency.

• Intensification, development, and consolidation initiatives contributed up to CAD 5.5 million in incremental NOI, supporting long-term value creation.

Financial highlights

• Revenues for 2025 were CAD 126.4 million, up 4.3% year-over-year; Q4 revenues were CAD 31.8 million, up 3.8%.

• Total NOI reached CAD 77 million, up 2.7% from 2024; Q4 NOI was CAD 19.1 million, up 1.0%.

• Same-asset NOI increased 1.1% for Q4 and 1.7% for the year; excluding Toys R Us bad debt, growth was 2.2% for Q4 and 2.5% for the year.

• AFFO per unit grew 4.9% year-over-year, despite CAD 2.1 million in leasing costs tied to optimization.

• Profit and total comprehensive income for 2025 was CAD 55.9 million, more than double the prior year, mainly due to a CAD 14.5 million increase in fair value of investment properties.

Outlook and guidance

• Management targets 2%-2.5% same-asset NOI growth for the foreseeable future, barring unforeseen events.

• Projects advanced in 2025, including new tenant fit-ups and construction, are expected to increasingly benefit results in 2026 and beyond.

• Toys R Us vacancy (~CAD 1 million NOI impact) expected to be backfilled by end of 2026.

• Optimization and intensification activities are anticipated to continue supporting FFO growth and long-term value creation, though timing may affect AFFO comparisons.