Plaza Retail REIT Announces Third Quarter 2024 Results
FREDERICTON, NB, Nov. 7, 2024 /CNW/ - Plaza Retail REIT (TSX:PLZ) ("Plaza" or the "REIT") today announced its financial results for the three and nine months ended September 30, 2024.
"We are pleased with our Q3 results as we continue to achieve strong lease renewal spreads and same-asset NOI growth" said Michael Zakuta, President and CEO. "Our portfolio, dominated by open-air essential needs and value retail properties, continues to perform, and demand for our retail space remains strong. As interest rates decline, we also benefit from lower borrowing costs, which we anticipate will positively contribute to our results through the remainder of the year and into 2025."
Summary of Selected IFRS Financial Results
(CAD$000s, except percentages)
Three
Months
Ended
September 30, 2024
Three
Months
Ended
September 30, 2023
$
Change
%
Change
Nine Months
Ended
September 30, 2024
Nine Months Ended
September 30, 2023
$ Change
% Change
Revenues
$30,414
$28,294
$2,120
7.5 %
$90,657
$85,102
$5,555
6.5 %
Net operating income (NOI)(1)
$19,651
$18,460
$1,191
6.5 %
$56,093
$52,918
$3,175
6.0 %
Net change in fair value of investment properties
($3,596)
($10,919)
$7,323
-
($12,224)
($10,472)
($1,752)
-
Profit and total comprehensive income
$5,119
$3,355
$1,764
-
$17,012
$24,091
($7,079)
-
(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, 2024 for more information on each non-GAAP financial measure.
Quarterly Highlights
NOI was $19.7 million, up $1.2 million or 6.5% from the same period in 2023. The increase in NOI is from rent escalations and lease-up in same-asset properties, developments and properties transferred to income-producing in 2023 and 2024, partially offset by a decrease in NOI from properties sold.
Profit and total comprehensive income for the current quarter was $5.1 million compared to $3.4 million in the same period in the prior year. The increase was mainly due to the change in fair value of investment properties, with a $3.6 million decrease in the current quarter compared to a $10.9 million decrease recorded in the same quarter in the prior year. Profit and total comprehensive income was also impacted by an increase in finance costs and administrative expenses, offset by the NOI increase noted above. Profit was also impacted by changes in non-cash fair value adjustments relating to share of profit from associates, interest rate swaps, the Class B exchangeable LP units, and convertible debentures.
Year-To-Date Highlights
NOI was $56.1 million, up $3.2 million or 6.0% from the same period in 2023. NOI was impacted by rent escalations and lease-up in same-asset properties, an increase in NOI from developments and properties transferred to income producing in 2023 and 2024, offset by a decrease in NOI from properties sold.
Profit and total comprehensive income for the current year to date was $17.0 million compared to $24.1 million in the same period in the prior year. The decrease was mainly due to the change in fair value of investment properties, with a $12.2 million decrease recorded in the current year compared to a $10.5 million decrease recorded in the same period in the prior year. Profit and total comprehensive income was also impacted by an increase in finance costs and administrative expenses, offset by the NOI increase noted above Profit was also impacted by an increase in the share of profit of associates relating to the non-cash fair value adjustment of the underlying properties in the current year, a decrease in investment and other income, along with changes in non-cash fair value adjustments relating to interest rate swaps, 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, 2024
Three
Months
Ended
September 30, 2023
$ Change
% Change
Nine Months
Ended
September 30, 2024
Nine Months Ended
September 30, 2023
$ Change
% Change
FFO(1)
$11,405
$11,392
$13
0.1 %
$31,948
$31,458
$490
1.6 %
FFO per unit(1)
$0.102
$0.102
-
-
$0.286
$0.289
($0.003)
(1.0 %)
FFO payout ratio(1)
68.4 %
68.5 %
n/a
(0.1 %)
73.3 %
73.2 %
n/a
0.1 %
AFFO(1)
$9,640
$9,424
$216
2.3 %
$25,873
$25,360
$513
2.0 %
AFFO per unit(1)
$0.086
$0.085
$0.001
1.2 %
$0.232
$0.233
($0.001)
(0.4 %)
AFFO payout ratio(1)
81.0 %
82.8 %
n/a
(2.2 %)
90.5 %
90.8 %
n/a
(0.3 %)
Same-asset NOI(1)
$18,618
$18,266
$352
1.9 %
$53,984
$52,491
$1,493
2.8 %
Normal course issuer bid, units repurchased
-
8,054
n/a
n/a
4,920
19,627
n/a
n/a
Committed occupancy, including non-consolidated investments(2)
97.5 %
97.2 %
n/a
0.3 %
Same-asset committed occupancy(3)
