Plaza Retail REIT (PLZ.UN) investor relations material

Executive summary

• Achieved strong progress on portfolio optimization, intensification, and consolidation strategies at mid-year 2025, with a focus on grocery-anchored optimizations and increased ownership in key properties.

• Major projects include conversions to No Frills stores in Newfoundland, Ontario, and PEI, and increased ownership in three Ontario Shoppers Drug Mart properties.

• Leasing fundamentals remain robust, with high occupancy and strong leasing spreads.

• Capital recycling program executed with property sales above IFRS values and reinvestment in higher quality assets.

Financial highlights

• Q2 2025 revenues rose 3.6% year-over-year to $31.8 million; NOI increased 3.8% to $19.1 million.

• FFO for Q2 increased 5.3% year-over-year to $11.2 million ($0.100 per unit); AFFO decreased 15.8% to $7.5 million ($0.067 per unit), temporarily impacted by optimization leasing costs.

• Profit and total comprehensive income for Q2 was $12.7 million, up 419.2% from $2.4 million in Q2 2024, mainly due to fair value gains on investment properties.

• Same asset NOI rose 1.5% year-over-year, despite bad debt from two tenant closures.

• Year-to-date, revenues grew 4.5% to $62.9 million, NOI up 2.7% to $37.4 million, and profit rose 84.7% to $22.0 million.

Outlook and guidance

• Ongoing intensification and optimization projects expected to deliver attractive returns and incremental NOI.

• Renewals and project completions anticipated to further boost same property NOI through the year.

• Management expects continued progress on optimizations, intensifications, and leasing, with ongoing tenant demand and ability to lease at anticipated rents.

• Liquidity of $62M positions the company to capitalize on future opportunities.