Canaccord Genuity analyst Mark Rothschild maintained a Buy rating on Plaza Retail REIT (PLZ.UN – Research Report) today and set a price target of C$4.25.
Mark Rothschild has given his Buy rating due to a combination of factors that highlight Plaza Retail REIT’s potential for growth and value. Despite a slight dip in funds from operations per unit, attributed to increased interest expenses and temporary dilution from asset sales, the REIT’s stable operating performance and high occupancy rates suggest resilience. The REIT’s ability to renew leases at favorable spreads and maintain a high occupancy rate of 97.6% indicates strong demand for its properties, which should support organic growth through rental rate increases as leases expire.
Furthermore, Plaza Retail REIT’s development pipeline, including projects under construction, is expected to enhance cash flow, with significant contributions to net operating income upon completion. The valuation of Plaza’s portfolio, trading at a discount to its net asset value, presents an attractive investment opportunity compared to its peers. The implied cap rate and cash flow multiple suggest that the stock is undervalued, supporting the Buy recommendation with a target price aligned with the NAV estimate.
Based on the recent corporate insider activity of 18 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of PLZ.UN in relation to earlier this year.