Earnings release
Page 1
Plaza Retail REIT Announces Third Quarter 2025 Results FREDERICTON, NB , Nov. 12, 2025 /CNW/ - Plaza Retail REIT (TSX: PLZ.UN) ("Plaza" or the "REIT") today announced its financial results for the three and nine months ended September 30, 2025 . "Q3 2025 was a milestone quarter for Plaza, delivering our highest quarterly FFO per unit in recent years at $0.111 , an 8.8% increase over the same period last year. This performance reflects the strength of our portfolio and the disciplined execution of our strategy, which we have been pursuing for the last year. Our total FFO rose to $12.4 million , up 8.6% year-over-year, driven by higher NOI from same-asset growth, acquisitions, and intensification projects," said Jason Parravano , President & Chief Executive Officer of the REIT. Same-asset NOI grew by 1.7%, and would have reached 2.3%, for the 9-month period, had it not been for bad debt adjustments related to unforeseen tenant closures. Despite these headwinds, our committed occupancy remained high at 97.9%, underscoring the resilience and demand for our essential-needs retail assets. Leasing spreads remain at all-time highs, 14% using the average rate over the term. Not included in our same asset figures is the impact of our intensifications/development/consolidation projects. So far this year, those efforts added roughly $4 million to our NOI, or $5.8 million annualized. Total NOI for the 9-month period was 3.2% higher than the prior period." "We handed over roughly 70,000 square feet of space to No Frills (Loblaw) during the quarter for them to complete their fit up and construction at various properties in the portfolio. Benefits from these projects will have a greater impact at the start of 2026. We continue to work through other leasing and property enhancement projects which will contribute to our efforts. AFFO figures are skewed as a result of our optimization initiatives, which are delivering significant FFO growth and value creation." "We are proud of these results, which demonstrate Plaza's ability to consistently generate value and navigate market challenges with agility and focus. These figures demonstrate demand for our space and the value of our portfolio, extracted through execution by our talented team." Summary of Selected IFRS Financial Results (CAD$000s, except percentages) Three Months Ended September 30, 2025 Three Months Ended September 30, 2024 $ Change % Change Nine Months Ended September 30, 2025 Nine Months Ended September 30, 2024 $ Change % Change Revenues $31,706 $30,414 $1,292 4.2 % $94,634 $90,657 $3,977 4.4 % Net operating income (NOI) (1) $20,472 $19,651 $821 4.2 % $57,914 $56,093 $1,821 3.2 % Net change in fair value of investment properties ($2,922) ($3,596) $674 - $493 ($12,224) $12,717 - Profit and total comprehensive income $8,826 $5,119 $3,707 72.4 % $30,798 $17,012 $13,786 81.0 % (1) This is a non-GAAP financial measure. Refer to the Non-GAAP Financial Measures defined here and in Part I and VII of the Management's Discussion and Analysis ("MD&A") ending September 30, 2025 for more information on each non-GAAP financial measure. Quarterly Highlights NOI was $20.5 million , up $821 thousand or 4.2% from the same period in 2024. The increase is due to increased revenue from leasing and rent escalations over the same period in the prior year, partially offset by higher operating expenses, particularly roof and asphalt repairs and maintenance during the current period. Profit and total comprehensive income for the current quarter was $8.8 million compared to $5.1 million in the same period in the prior year. Profit and total comprehensive income was
Page 2
primarily impacted by the change in fair value of investment properties, with a $2.9 million decrease recorded in the current quarter compared to a $3.6 million decrease recorded in the same quarter in the prior year. The fair value change year over year was mainly due to a change in the development strategy for a property, as well as updated appraisals. Profit and comprehensive income was also impacted by changes in non-cash fair value adjustments relating to derivative assets and liabilities, which accounted for $1.9 million of the increase compared to the same quarter in the prior year, the non-cash fair value adjustments for Class B exchangeable LP units, and convertible debentures. Year-To-Date Highlights NOI was $57.9 million , up $1.8 million or 3.2% from the same period in 2024. The increase is due to increased revenue from leasing and rent escalations over the same period in the prior year, partially offset by higher operating expenses, particularly snow removal costs in the first quarter of 2025 given heavier snowfall compared to the prior year, and roof and asphalt repairs and maintenance during the second and third quarter of 2025. Profit and total comprehensive income for the current period was $30.8 million compared to $17.0 million in the same period in the prior year. Profit and total comprehensive income was primarily impacted by the change in fair value of investment properties, with a $493 thousand increase recorded in the current period compared to a $12.2 million decrease recorded in the prior year. The fair value change year over year was mainly due to a change in the development strategy for a property, updated appraisals, and the acquisition of the remaining interest in three Ontario assets. Profit and total comprehensive income was also impacted by an increase in the share of profit of associates of $591 thousand over the prior year, mainly relating to the non- cash fair value adjustment of the underlying properties in the current year, as well as the changes in non-cash fair value adjustments relating to derivative assets and liabilities, the Class B exchangeable LP units, and convertible debentures. Summary of Selected Non-IFRS Financial Results (CAD$000s, except percentages, units repurchased and per unit amounts) Three Months Ended September 30, 2025 Three Months Ended September 30, 2024 $ Change % Change Nine Months Ended September 30, 2025 Nine Months Ended September 30, 2024 $ Change % Change FFO (1) $12,381 $11,405 $976 8.6 % $33,331 $31,948 $1,383 4.3 % FFO per unit (1) $0.111 $0.102 $0.009 8.8 % $0.299 $0.286 $0.013 4.5 % FFO payout ratio (1) 63.1 % 68.4 % n/a (7.7 %) 70.3 % 73.3 % n/a (4.1 %) AFFO (1) $8,578 $9,640 ($1,062) (11.0 %) $24,378 $25,873 ($1,495) (5.8 %) AFFO per unit (1) $0.077 $0.086 ($0.009) (10.5 %) $0.219 $0.232 ($0.013) (5.6 %) AFFO payout ratio (1) 91.0 % 81.0 % n/a 12.3 % 96.1 % 90.5 % n/a 6.2 % Same-asset NOI (1) $19,353 $19,024 $329 1.7 % $55,971 $55,060 $911 1.7 % Normal course issuer bid – units repurchased - - n/a n/a - 4,920 n/a n/a Committed occupancy – including non-consolidated investments (2) 97.9 % 97.5 % n/a 0.4 % Same-asset committed occupancy (3) 97.5 % 96.9 % n/a 0.6 % (1) This is a non-GAAP financial measure. Refer to the Non-GAAP Financial Measures defined here and in Part I and VII of the MD&A ending September 30, 2025 for more information on each non-GAAP financial measure. (2) Excludes properties under development. (3) Same-asset committed occupancy excludes properties under development and non-consolidated investments. Quarterly Highlights FFO & AFFO : For the three months ended September 30, 2025 , FFO increased $976 thousand or 8.6% on a dollar basis and 8.8% on a per unit basis, compared with the same quarter in the prior year. FFO increased due to higher NOI from same-asset, acquisitions, intensifications, developments and properties transferred to income producing. FFO was also impacted by properties sold in 2024, from which the capital generated was recently deployed. AFFO decreased $1.1 million or 11.0% on a dollar basis and 10.5% on a per unit basis, compared to
Page 3
the same quarter in the prior year. AFFO was impacted by the changes in FFO noted above, higher leasing costs related to optimization of existing assets, and higher maintenance capital expenditures in the current period. Same-asset NOI increased by $329 thousand or 1.7% due to an increase in revenue from rent escalations and renewals, partially offset by higher operating expenses, particularly roof and asphalt repairs and maintenance during the current period. Same asset NOI was also impacted by $256 thousand of bad debt in the current quarter related to three tenant closures. Year-To-Date Highlights FFO & AFFO : For the nine months ended September 30, 2025 , FFO increased $1.4 million or 4.3% on a dollar basis and 4.5% on a per unit basis, compared with the same period in the prior year. FFO increased due to higher NOI from same-asset, acquisitions, intensifications, developments and properties transferred to income producing. FFO was also impacted by properties sold in 2024, with the capital generated from those sales having been recently deployed. In addition, FFO was impacted from an increase in finance costs-operations, and reorganization costs. AFFO decreased $1.5 million or 5.8% on a dollar basis and 5.6% on a per unit basis, compared to the same period in the prior year. AFFO was impacted by the changes in FFO noted above, as well as higher leasing costs in the current year related to optimizations at existing properties, supporting increased revenues. AFFO was also impacted by higher maintenance capital expenditures. Same-asset NOI increased by $911 thousand or 1.7% due to an increase in revenue from rent escalations and renewals, partially offset by higher operating expenses in the current period as noted above, as well as higher snow removal costs in the first quarter of 2025. Same asset NOI was also impacted by $433 thousand of bad debt related to three tenant closures. 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 September 30, 2025, 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 the three and nine months ended September 30, 2025, compared to the three and nine months ended September 30, 2024 is presented below: (000s – except per unit amounts and percentage data, unaudited) 3 Months Ended September 30, 2025 3 Months Ended September 30, 2024 Change over Prior Period 9 Months Ended September 30, 2025 9 Months Ended September 30, 2024 Change over Prior Period Profit and total comprehensive income for the period attributable to unitholders $ 8,771 $ 5,073 $ 30,668 $ 16,862 Incremental leasing costs included in administrative expenses (7) 581 383 1,411 1,248 Amortization of debenture issuance costs (8) (19) (18) (55) (54) Distributions on Class B exchangeable LP units included in finance costs – operations 81 81 243 243 Deferred income taxes 148 (99) 73 97 Right-of-use land lease principal repayments (215) (205) (647) (611)
Page 4
Fair value adjustment to restricted and deferred units 160 280 383 134 Fair value adjustment to investment properties 2,922 3,596 (493) 12,224 Fair value adjustment to investments (9) (1,140) (1,460) (1,199) (1,400) Fair value adjustment to Class B exchangeable LP units 300 544 728 243 Fair value adjustment to convertible debentures 104 426 329 279 Fair value adjustment to derivative assets and liabilities 489 2,366 1,276 1,737 Fair value adjustment to right-of-use land lease assets 215 205 647 611 Equity accounting adjustment (10) (11) 264 5 370 Non-controlling interest adjustment (6) (5) (31) (38) (35) FFO (1) $ 12,381 $ 11,405 $ 976 $ 33,331 $ 31,948 $ 1,383 FFO change over prior period - % 8.6 % 4.3 % FFO (1) $ 12,381 $ 11,405 $ 33,331 $ 31,948 Non-cash revenue – straight-line rent (5) (48) (169) (207) (387) Leasing costs – existing properties (2) (5) (11) (2,099) (1,022) (5,835) (3,952) Maintenance capital expenditures – existing properties (12) (1,670) (603) (2,997) (1,778) Non-controlling interest adjustment (6) 14 29 86 42 AFFO (1) $ 8,578 $ 9,640 $ (1,062) $ 24,378 $ 25,873 $ (1,495) AFFO change over prior period - % (11.0 %) (5.8 %) Weighted average units outstanding – basic (1)(3) 111,589 111,537 111,581 111,528 FFO per unit – basic (1) $ 0.111 $ 0.102 8.8 % $ 0.299 $ 0.286 4.5 % AFFO per unit – basic (1) $ 0.077 $ 0.086 (10.5 %) $ 0.219 $ 0.232 (5.6 %) Gross distribution to unitholders (1)(4) $ 7,810 $ 7,806 $ 23,429 $ 23,417 FFO payout ratio – basic (1) 63.1 % 68.4 % 70.3 % 73.3 % AFFO payout ratio – basic (1) 91.0 % 81.0 % 96.1 % 90.5 % FFO (1) $ 12,381 $ 11,405 $ 33,331 $ 31,948 Interest on dilutive convertible debentures 180 180 535 537 FFO – diluted (1) $ 12,561 $ 11,585 $ 976 $ 33,866 $ 32,485 $ 1,381 Diluted weighted average units outstanding (1)(3) 114,119 114,067 114,111 114,058 AFFO (1) $ 8,578 $ 9,640 $ 24,378 $ 25,873 Interest on dilutive convertible debentures 180 180 535 537 AFFO – diluted (1) $ 8,758 $ 9,820 $ (1,062) $ 24,913 $ 26,410 $ (1,497) Diluted weighted average units outstanding (1)(3) 114,119 114,067 114,111 114,058 FFO per unit – diluted (1) $ 0.110 $ 0.102 7.8 % $ 0.297 $ 0.285 4.2 % AFFO per unit – diluted (1) $ 0.077 $ 0.086 (10.5 %) $ 0.218 $ 0.231 (5.6 %) (1) This is a non-GAAP financial measure. Refer to "Non-GAAP Financial Measures" in Part I and "Explanation of Non-GAAP Financial Measures" in Part VII of the MD&A for more information. (2) Based on actuals. (3) Includes Class B exchangeable LP units. (4) Includes distributions on Class B exchangeable LP units. (5) Includes proportionate share of revenue and expenditures at equity-accounted investments. (6) The non-controlling interest ("NCI") adjustment includes adjustments required to translate the profit and total comprehensive income attributable to NCI of $55 thousand and $130 thousand for the three and nine months ending September 30, 2025 (September 30, 2024 - $46 thousand and $150 thousand, respectively) to FFO and AFFO for the NCI. (7) Incremental leasing costs included in administrative expenses include leasing costs of salaried leasing staff directly attributed to signed leases that would otherwise be capitalized if incurred from external sources. These costs are excluded from FFO in accordance with REALPAC's definition of FFO. (8) Amortization of debenture issuance costs is deducted on a straight-line basis over the remaining term of the related convertible debentures, in accordance with REALPAC. (9) Fair value adjustment to investments relate to the unrealized change in fair value of equity accounted entities which are excluded from FFO in accordance with REALPAC's definition of FFO. (10) Equity accounting adjustment for derivative assets and liabilities includes the change in non-cash fair value adjustments relating derivative assets and liabilities held by equity accounted entities, which are excluded from FFO in accordance with REALPAC's definition of FFO. (11) Leasing costs – existing properties include internal and external leasing costs except to the extent that leasing costs relate to development projects, in accordance with REALPAC's definition of AFFO. See the Gross Capital Additions Including Leasing Fees note on page 27 of the MD&A. (12) Maintenance capital expenditures – existing properties include expenditures related to sustaining and maintaining existing space, in accordance with REALPAC's definition of AFFO. See the Gross Capital Additions Including Leasing Fees note on page 27 of the MD&A. Net Property Operating Income (NOI) and Same-Asset Net Property Operating Income (Same- Asset NOI) (000s) 3 Months Ended September 30, 2025 (unaudited) 3 Months Ended September 30, 2024 (unaudited) 9 Months Ended September 30, 2025 (unaudited) 9 Months Ended September 30, 2024 (unaudited) Same-asset NOI (1) $ 19,353 $ 19,024 $ 55,971 $ 55,060 Acquisitions, intensifications, developments and redevelopments transferred to IPP in 2024 & 2025 ($5.8 million annual stabilized NOI) 1,667 798 4,046 1,543 NOI from properties currently under development and redevelopment ($533 thousand annual stabilized NOI) (5) (13) - 91 Straight-line rent 48 169 207 387 Administrative expenses charged to NOI (888) (887) (3,218) (2,963) Lease termination revenue 223 168 388 201
Page 5
Properties disposed 94 438 650 1,740 Other (20) (46) (130) 34 Total NOI (1) $ 20,472 $ 19,651 $ 57,914 $ 56,093 Percentage increase over prior period 4.2 % 3.2 % (1) This is a non-GAAP financial measure. Refer to "Non-GAAP Financial Measures" in Part I and "Explanation of Non-GAAP Financial Measures" in Part VII of the MD&A for more information. Cautionary Statements Regarding Forward-looking Information This press release contains forward-looking statements relating to Plaza's operations, outlook, condition and the environment in which it operates, including with respect to Plaza's outlook or expectations regarding its ongoing and future operating performance optimization and intensification activities, and other projects. 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, 2024 and Management's Discussion and Analysis for the three and nine months ended September 30, 2025 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 November 13, 2025 , at 10:00 a.m. EST. 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 November 20 2025. To access the replay, dial 1-289-819- 1450 (local Toronto) or 1-888-660-6345 (Passcode: 89258#). 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 September 30, 2025 , includes interests in 197 properties totaling approximately 8.8 million square feet across
Page 6
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 . SOURCE Plaza Retail REIT View original content: http://www.newswire.ca/en/releases/archive/November2025/12/c2904.html %SEDAR: 00035381E For further information: For further information: Jim Drake, Chief Financial Officer, Plaza Retail REIT, Tel: 902-483-4064; Jason Parravano, President and Chief Executive Officer, Plaza Retail REIT, Tel: 514-268-8615 CO: Plaza Retail REIT CNW 18:05e 12-NOV-25