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Plaza Retail REIT Announces 2020 Results FREDERICTON , NB , Feb. 25 , 2021 / CNW / - Plaza Retail REIT ( TSX : PLZ.UN ) ( " Plaza " or the " REIT " ) today announced its financial results for the three months and year ended December 31 , 2020 . " Although 2020 was a challenging year for all , we are experiencing a solid improvement in our business as we collected 98.9 % of rents in Q4 . Our portfolio , which is dominated by essential needs and value retailers in open - air centres , continues to perform well . " said Michael Zakuta , President and CEO . " Our business outlook is very positive as leasing activity continues to improve , with term debt financing available at historically low rates . We look forward to rebounding strongly in 2021 and beyond . " Summary of Selected GAAP Financial Results Three Three Twelve Twelve Months Months Months Months Ended Ended Ended Ended ( CAD $ 000s , except percentages and per units repurchased ) December December December 31 , 2020 31 , 2019 Change 31 , 2020 December 31 , 2019 Change Property rental revenue $ 26,835 $ 27,473 ( $ 638 ) $ 106,898 $ 112,461 ( $ 5,563 ) Net operating income ( NOI ) $ 18,137 $ 16,785 $ 1,352 $ 68,750 $ 72,727 ( $ 3,977 ) Net change in fair value of investment properties $ 2,169 ( $ 1,010 ) $ 3,179 ( $ 46,891 ) $ 18,748 ( $ 65,639 ) Profit ( loss ) and total comprehensive income ( loss ) $ 9,275 $ 8,017 $ 1,258 ( $ 14,937 ) $ 51,337 ( $ 66,274 ) Quarterly Highlights • NOI was $ 18.1 million , up $ 1.4 million ( 8.1 % ) from the same period in 2019 , primarily as a result of lower operating expenses and growth in NOI from acquisitions , developments , and new leasing in same - asset properties , offset by lost revenue due to lease buyouts . • Profit and total comprehensive income for the current quarter was $ 9.3 million compared to $ 8.0 million in the prior year . The increase was mainly due to an increase in the fair value of investment properties of $ 3.2 million over the prior year as a result of a decrease in the weighted average capitalization rate , offset by a decrease in the share of profit of associates mainly relating to the non - cash fair value adjustment of the underlying properties . Year - To - Date Highlights • NOI was $ 68.8 million , down $ 4.0 million ( 5.5 % ) from the same period in 2019 , primarily as a result of lease buyouts in 2019 and the lost revenue due to same , CECRA impacts , rent abatements and an increase in bad debt expense in the current year , offset by lower operating expenses and growth in NOI from acquisitions , developments , and new leasing in same - asset properties in the current year . • Loss and total comprehensive loss for the year ended December 31 , 2020 was $ 14.9 million compared to a profit and total comprehensive income of $ 51.3 million for the same period in the prior year . The decline was mainly due to a $ 46.9 million unfavourable change in the fair value of investment properties in 2020 , as a result of an increase in the weighted average capitalization rate and more conservative assumptions for underwritten NOI and re - leasing costs , compared to an $ 18.7 million increase in the fair value of investment properties in 2019 . ( CAD $ 000s , except percentages and per unit amounts ) FFO Summary of Selected Non - GAAP Financial Results Three Three Twelve Twelve Months Months Ended December 31 , 2020 Ended December 31 , 2019 Change Months Ended December 31 , 2020 Months Ended December 31 , 2019 Change $ 10,554 $ 9,204 $ 1,350 $ 36,995 $ 41,006 ( $ 4,011 )