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."

 
Summary of Selected IFRS Financial Results 
(CAD$000s,      ThreeMonthsEndedJune  ThreeMonthsEndedJune  $ Change  % Change  SixMonthsEndedJune  SixMonthsEndedJune  $ Change  % Change 
except          30, 2026              30, 2025                                  30, 2026            30, 2025 
percentages) 
 
Revenues                     $32,185               $31,791      $394     1.2 %             $64,695             $62,928    $1,767     2.8 % 
 
Net operating 
 income 
 (NOI)(1)                    $19,926               $19,098      $828     4.3 %             $38,721             $37,442    $1,279     3.4 % 
 
Net change in 
 fair value of 
 investment 
 properties                   $5,100                $1,279    $3,821       n/a              $7,218              $3,415    $3,803       n/a 
 
Profit and 
 total 
 comprehensive 
 income                      $16,601               $12,653    $3,948    31.2 %             $29,421             $21,972    $7,449    33.9 % 
 
 
(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 June 30, 2026 for more information 
      on each non-GAAP financial measure. 
 

Quarterly Highlights

   -- NOI was $19.9 million, up $828 thousand or 4.3% from the same period in 
      2025.  The increase is due to increased revenue from leasing and rent 
      escalations, in addition to improved cost recoveries over the same period 
      in the prior year. 
 
   -- Profit and total comprehensive income for the current quarter was $16.6 
      million compared to $12.7 million in the same period in the prior year. 
      Profit and total comprehensive income was impacted by changes in fair 
      value of investment properties, which accounted for $3.8 million of the 
      increase over the same period in the prior year. 

Year-To-Date Highlights

   -- NOI was $38.7 million, up $1.3 million or 3.4% from the same period in 
      2025.  The increase is due to increased revenue from leasing and rent 
      escalations, in addition to improved cost recoveries over the same period 
      in the prior year, partially offset by higher operating expenses. 
   -- Profit and total comprehensive income for the current year was $29.4 
      million compared to $22.0 million in the same period in the prior year. 
      Profit and total comprehensive income was impacted by the change in share 
      of profit of associates, which increased by $2.0 million over the same 
      period in the prior year.  This was mainly due to the non-cash fair value 
      adjustment to the underlying investment properties, as well as 5400 
      Laurier Ouest Limited Partnership due to the sale of 5400 Laurier Ouest, 
      Ste Hyacinthe, and acquisition of Plazacorp Ontario-1 Limited 
      Partnership.  Profit and total comprehensive income was also impacted by 
      changes in fair value of investment properties, which accounted for $3.8 
      million of the increase. 
 
Summary of Selected Non-IFRS Financial Results 
(CAD$000s, except  ThreeMonthsEndedJune  ThreeMonthsEndedJune  $ Change  % Change  SixMonthsEndedJune  SixMonthsEndedJune  $ Change  % Change 
percentages,       30, 2026              30, 2025                                  30, 2026            30, 2025 
units repurchased 
and 
per unit amounts) 
 
FFO(1)                          $11,670               $11,187      $483     4.3 %             $22,578             $20,950    $1,628     7.8 % 
FFO per unit(1)                  $0.105                $0.100    $0.005     5.0 %              $0.202              $0.188    $0.014     7.4 % 
FFO payout 
 ratio(1)                        66.9 %                69.8 %       n/a   (4.1 %)              69.2 %              74.6 %       n/a   (7.2 %) 
 
AFFO(1)                          $8,668                $7,511    $1,157    15.4 %             $16,949             $15,800    $1,149     7.3 % 
AFFO per unit(1)                 $0.078                $0.067    $0.011    16.4 %              $0.152              $0.142    $0.010     7.0 % 
AFFO payout 
 ratio(1)                        90.1 %               104.0 %       n/a  (13.4 %)              92.2 %              98.9 %       n/a   (6.8 %) 
 
Same-asset NOI(1)               $19,606               $19,099      $507     2.7 %             $38,540             $37,660      $880     2.3 % 
 
Committed 
 occupancy -- 
 including 
 non-consolidated 
 investments(2)                                                                                97.6 %              98.0 %       n/a   (0.4 %) 
Same-asset 
 committed 
 occupancy(3)                                                                                  97.1 %              97.6 %       n/a   (0.5 %) 
 
 
 
 
(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 June 30, 2026 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 June 30, 2026 FFO increased $483 
      thousand or 4.3% on a dollar basis and 5.0% 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, from which the capital generated was recently deployed. 
        In addition, FFO was impacted by a decrease in administrative costs, 
      primarily due to accrued bonuses in the prior year. AFFO of $8.7 million 
      increased $1.2 million or $15.4% on a dollar and 16.4% on a per unit 
      basis compared to the same quarter in the prior year.  AFFO was impacted 
      by the changes in FFO noted above, as well as lower leasing costs and 
      lower maintenance capital expenditures in the current period. 
 
   -- Same-asset NOI increased by $507 thousand or 2.7% due to an increase in 
      revenue from rent escalations and renewals, improved cost recoveries and 
      operating expense timing. 

Year-To-Date Highlights

   -- FFO & AFFO: For the six months ended June 30, 2026 FFO increased $1.6 
      million or 7.8% on a dollar basis and 7.4% on a per unit basis, when 
      compared with the prior year-to-date.  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, from which the capital generated was recently 
      deployed.   In addition, FFO was impacted by an increase in 
      administrative costs, partially due to accrued bonuses as well as higher 
      technology costs and professional fees in the current year, partially 
      offset by reorganization costs in the prior year. AFFO increased by $1.1 
      million or 7.3% on a dollar basis and 7.0% on a per unit basis, when 
      compared with the prior year-to-date.  AFFO was impacted by the changes 
      in FFO noted above, as well as higher leasing costs in the current 
      year-to-date reflecting initiatives to attract higher-quality tenants and 
      drive optimizations at existing properties to achieve improved rental 
      spreads. 
 
   -- Same-asset NOI increased by $880 thousand or 2.3% due to an increase in 
      revenue from rent escalations and renewals, in addition to improved cost