Page 1

Plaza Retail REIT Announces Second Quarter 2021 Results FREDERICTON , NB , Aug. 5 , 2021 / 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 , 2021 . " We are very pleased with our performance . Our geographically diverse portfolio of open - air centres focused on essential needs retail continues to perform well . Our focus has clearly shifted from managing the effects of the pandemic to pursuing growth opportunities . We are progressing with a number of development projects , and are continuing to pursue additional development and redevelopment opportunities across our geography , " said Michael Zakuta , President and CEO . Summary of Selected IFRS Financial Results Three Three Six Months Months Months Ended Ended Ended Six Months Ended June 30 , June 30 , ( CAD $ 000s , except percentages ) 2021 2020 $ Change % Change June 30 , June 30 , 2021 2020 $ Change % Change Property rental revenue $ 29,944 $ 26,781 $ 3,163 11.8 % $ 56,652 $ 54,103 $ 2,549 4.7 % Net operating income ( NOI ) $ 20,204 $ 16,094 $ 4,110 25.5 % $ 36,512 $ 32,982 $ 3,530 10.7 % Net change in fair value of investment properties $ 9,283 ( $ 28,639 ) $ 37,922 $ 12,381 ( $ 48,511 ) $ 60,892 Profit ( loss ) and total comprehensive income ( loss ) $ 19,622 ( $ 31,299 ) $ 50,921 $ 31,846 ( $ 33,397 ) $ 65,243 1 Quarterly Highlights • NOI was $ 20.2 million , up $ 4.1 million ( 25.5 % ) from the same period in 2020 , primarily as a result of growth in NOI from acquisitions and developments , lower operating expenses including lower bad debt expense , and lease buyout revenues . • Profit and total comprehensive income for the current quarter was $ 19.6 million compared to a loss of $ 31.3 million in the prior year . The increase was mainly due to an increase in the fair value of investment properties recorded in Q2 2021 as a result of a decrease in the weighted average capitalization rate in the current quarter and appraisals obtained , compared to a decrease in fair value of investment properties recorded in Q2 2020 . Year - To - Date Highlights • NOI was $ 36.5 million , up $ 3.5 million ( 10.7 % ) from the same period in 2020 , primarily as a result of growth in NOI from acquisitions and developments , lower operating expenses including lower bad debt expense , and lease buyout revenues . • Profit and total comprehensive income for the current year was $ 31.8 million compared to a loss of $ 33.4 million in the prior year . The increase was mainly due to an increase in the fair value of investment properties recorded in the current year as a result of a decrease in the weighted average capitalization rate and appraisals obtained , compared to a decrease in fair value of investment properties recorded in the prior year . Summary of Selected Non - IFRS Financial Results ( 1 ) Three Months Three Months Ended Ended June 30 , ( CAD $ 000s , except percentages , units repurchased and per unit amounts ) 2021 June 30 , 2020 $ Change % Change Six Months Ended June 30 , 2021 Six Months Ended June 30 , 2020 $ % Change Change FFO $ 13,054 $ 7,919 $ 5,135 FFO per unit $ 0.127 $ 0.077 $ 0.050 FFO payout ratio 55.2 % 91.0 % n / a 64.8 % $ 22,608 64.9 % $ 0.220 ( 39.3 % ) 63.8 % $ 17,055 $ 5,553 $ 0.165 $ 0.055 84.6 % n / a 32.6 % 33.3 % ( 24.6 % ) AFFO AFFO per unit $ 11,158 $ 7,046 $ 0.108 $ 0.068 $ 4,112 $ 0.040 58.4 % $ 19,834 58.8 % $ 0.193 $ 14,780 $ 5,054 34.2 % $ 0.143 $ 0.050 35.0 %