Mark Rothschild, an analyst from Canaccord Genuity, maintained the Buy rating on Plaza Retail REIT (PLZ.UN – Research Report). The associated price target remains the same with C$4.25.
Mark Rothschild has given his Buy rating due to a combination of factors including Plaza Retail REIT’s strong leasing performance and strategic asset management. The REIT demonstrated robust same-property net operating income growth of 4.8% in the fourth quarter of 2024, driven by healthy leasing spreads of 6.4% and a high occupancy rate of 97.0%. This indicates effective management in maintaining and enhancing property value.
Additionally, Plaza’s strategic divestment of $29 million in properties to fund new developments aligns with a forward-looking growth strategy. The REIT’s current development pipeline, which includes 429,000 square feet of gross leasable area, is a testament to its commitment to growth. Furthermore, Plaza trades at an implied cap rate of 8.1%, presenting a significant discount to its net asset value estimate, which makes it an attractive investment compared to its peers. These elements collectively support the Buy rating as they highlight Plaza’s potential for future value appreciation and income generation.
According to TipRanks, Rothschild is a 5-star analyst with an average return of 7.5% and a 61.12% success rate. Rothschild covers the Real Estate sector, focusing on stocks such as RioCan Real Estate Investment, Dream Office Real Estate Investment, and Choice Properties Real Estate Investment.