Plaza Retail REIT (PLZ.UN) Q2 2025 earnings summary

Executive summary

• Achieved strong operational performance in Q2 2025, with robust leasing activity, disciplined expense management, and focus on grocery-anchored optimizations and intensifications.

• Consolidated ownership in key properties, including increased stakes in Ontario Shoppers Drug Mart locations.

• Major projects included conversions to No Frills stores in Newfoundland, Ontario, and PEI.

• Committed occupancy rate reached an all-time high of 98%, and nearly 99% excluding enclosed malls.

Financial highlights

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

• Same property NOI increased 1.5% year-over-year, supported by leasing spreads of 14.8% and nearly 20% on negotiated renewals.

• FFO per unit grew 5.3% year-over-year to $0.100; AFFO per unit was temporarily impacted by optimization-related leasing costs, decreasing 15.8% to $0.067.

• 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.

• Debt-to-assets ratio decreased to 50.9% (excluding land leases), and net debt to EBITDA was 8.5x.

Outlook and guidance

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

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

• Capital recycling program to further enhance portfolio quality and support strategic initiatives.