Real Estate
Plaza Retail REIT Announces Second Quarter 2026 Results
Plaza Retail REIT (TSX: PLZ.UN) ("Plaza" or the "REIT") today announced its financial results for the three and six months ended June 30, 2026.
About this update from Plaza Retail Reit
FREDERICTON, NB, Aug. 5, 2026 /CNW/ -- Plaza Retail REIT (TSX: PLZ.UN) ("Plaza" or the "REIT") today announced its financial results for the three and six months ended June 30, 2026. "We delivered solid growth through the first half of 2026, supported by continued execution across our portfolio," said Jason Parravano, President and Chief Executive Officer. FFO per unit increased to $0.105 for the quarter, $0.202 year-to-date, up 5.0% and 7.4% respectively, compared with the same periods in the prior year (or 8.3% year-to-date after adjusting for certain timing and severance impacts). AFFO per unit increased to $0.078 for the quarter, $0.152 year-to-date, up 16.4% and 7.0% respectively, compared with the same periods in the prior year (or 8.0% year-to-date after adjusting for certain timing and severance impacts). Our FFO and AFFO payout ratios also improved to 69.2% and 92.2% year-to-date, respectively, strengthening our financial flexibility and demonstrating that the structural changes made to the business over the past year are producing sustainable results and predictable growth. Operating fundamentals remained resilient. Total NOI increased by 4.3% for the quarter, 3.4% year-to-date, and same asset NOI increased by 2.7% for the quarter, 2.3% year-to-date. Committed occupancy remained strong at 97.6%, supported by continued tenant demand, contractual rent growth and leasing activity across our essential retail portfolio. "We remain focused on improving the quality, scale and earnings capacity of our portfolio," continued Mr. Parravano. "While we have selectively sold certain properties this year, we will continue to add square footage through developments, intensifications and other strategic initiatives. This reflects a deliberate approach to capital allocation. We are recycling capital from mature or non-core assets into opportunities that can generate stronger returns, improve portfolio quality and contribute to sustainable cash flow growth." "Our progress is measured not simply by the number of properties we own, but by the quality and scale of our real estate, the cash flow it generates, and the value created on a per unit basis. With growing FFO and AFFO, improved payout ratios and a pipeline of projects advancing across the portfolio, we believe Plaza is well positioned to continue creating long term value for unitholders." Quarterly Highlights Year-To-Date Highlights Quarterly Highlights Year-To-Date Highlights Non-GAAP Financial Measures This press release contains certain non-GAAP financial measures including FFO, AFFO and same-asset NOI. These measures are commonly used by entities in the real estate industry as useful metrics for measuring performance. However, they do not have a standardized meaning prescribed by IFRS Accounting Standards and are not necessarily comparable to similar measures presented by other publicly traded entities. These measures should be considered as supplemental in nature and not as a substitute for related financial information prepared in accordance with IFRS Accounting Standards. For further explanation of non-GAAP measures and their usefulness in assessing Plaza's performance, please refer to the section "Basis of Presentation" in Part I and the section "Explanation of Non-GAAP Measures" in Part VII of the REIT's Management's Discussion and Analysis as at June 30, 2026 which can be found on Plaza's website at www.plaza.ca and on SEDAR+ at www.sedarplus.ca. The following tables reconcile the non-GAAP measures FFO, AFFO, and NOI to the most comparable IFRS measures. Funds from Operations (FFO) and Adjusted Funds from Operations (AFFO) Plaza's summary of FFO and AFFO for three and six months ended June 30, 2026, compared to the three and six months ended June 30, 2025, is presented below: Net Property Operating Income (NOI) and Same-Asset Net Property Operating Income (Same-Asset NOI) Cautionary Statements Regarding Forward-looking Information This press release contains forward-looking statements relating to Plaza's operations, outlook, financial condition and the environment in which it operates, including expectations regarding current and future operating performance optimization and intensification activities and other projects, and the anticipated impact thereof on future results. Forward-looking statements are not future guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Plaza to be materially different from any future results, performance or achievements expressed, implied or projected by forward-looking statements contained in this press release, including but not limited to changes in economic, retail, capital market, or debt market conditions, including recessions and changes in, or the extent of changes in, interest rates and the rate of inflation; changes to applicable duties, tariffs and trade laws; supply chain constraints; competitive real estate conditions; and others described in Plaza's Annual Information Form for the year ended December 31, 2025 and Management's Discussion and Analysis for the six months ended June 30, 2026 which can be obtained on the REIT's website at www.plaza.ca or on SEDAR+ at www.sedarplus.ca. Forward-looking statements are based on a number of expectations and assumptions made in light of management's experience and perceptions of historical trends and current conditions, including that progress continues on Plaza's optimizations, intensifications and other projects, that tenant demand for space continues, and that Plaza is able to lease or re-lease space at anticipated rents. Although based upon information currently available to management and what management believes are reasonable expectations and assumptions, there can be no assurances that forward-looking statements will prove to be accurate. Readers, therefore, should not place undue reliance on any forward-looking statements. Plaza undertakes no obligation to publicly update any such statements, except as required by law. These cautionary statements qualify all forward-looking statements contained in this press release. Further Information Information appearing in this press release is a select summary of results. A more detailed analysis of the REIT's financial and operating results is included in the REIT's Management's Discussion and Analysis and Consolidated Financial Statements, which can be found on the REIT's website at www.plaza.ca or on SEDAR+ at www.sedarplus.ca . Conference Call Jason Parravano, President and CEO and Jim Drake, CFO, will host a conference call for the investment community on August 6, at 10:00 a.m. EDT. The call-in numbers for participants are 1-416-945-7677 (local Toronto) or 1-888-699-1199 (toll free, within North America). A replay of the call will be available until August 13, 2026. To access the replay, dial 1-289-819-1450 (local Toronto) or 1-888-660-6345 (Passcode: 66924#). The audio replay will also be available for download on the REIT's website for 90 days following the conference call. About Plaza Plaza is an open-ended real estate investment trust and is a leading retail property owner and developer, focused on Ontario, Quebec and Atlantic Canada. Plaza's portfolio at June 30, 2026 includes interests in 189 properties totaling approximately 8.8 million square feet across Canada and additional lands held for development. Plaza's portfolio largely consists of open-air centres and stand-alone small box retail outlets and is predominantly occupied by national tenants with a focus on the essential needs, value and convenience market segments. For more information, please visit www.plaza.ca . View original content: http://www.newswire.ca/en/releases/archive/August2026/05/c7669.html