"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 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
September30, 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
