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Plaza Retail REIT
(TSX:PLZ.UN)
Select Model
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Rating:74Outperform
Price Target:
C$6.00
â–²(14.07% Upside)
Action:Reiterated
Date:08/10/26
The score is driven primarily by solid operating performance and a positive earnings call (strong occupancy, NOI and FFO/AFFO growth, and improving leverage), supported by attractive valuation (low P/E and high yield) and constructive technicals. Offsetting factors are elevated leverage and weaker/volatile cash conversion relative to reported earnings, plus near-term uncertainty tied to the strategic review.
Positive Factors
High Occupancy & Defensive Tenant Mix
Sustained 97.6% committed occupancy tied to necessity- and discount-oriented anchors reduces vacancy risk and steadies rental cash flows. Over 2–6 months this provides predictable NOI, supports lease-up economics on redevelopments, and underpins distribution stability versus discretionary retail peers.
Negative Factors
Meaningful Leverage Remains
Although leverage has improved, debt still modestly exceeds equity (debt-to-equity ~1.13) and net-debt/adjusted-EBITDA remains elevated. This structural leverage exposes the REIT to higher refinancing and valuation sensitivity, limiting flexibility for opportunistic transactions and raising stress in adverse market moves.
Read all positive and negative factors
Positive Factors
Negative Factors
High Occupancy & Defensive Tenant Mix
Sustained 97.6% committed occupancy tied to necessity- and discount-oriented anchors reduces vacancy risk and steadies rental cash flows. Over 2–6 months this provides predictable NOI, supports lease-up economics on redevelopments, and underpins distribution stability versus discretionary retail peers.
Read all positive factors
Plaza Retail REIT (PLZ.UN) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$582.17M
Dividend Yield5.31%
Average Volume (3M)155.56K
Price to Earnings (P/E)9.4
Beta (1Y)0.46
Revenue Growth2.84%
EPS Growth78.07%
CountryCA
Employees82
SectorReal Estate
Sector Strength53
IndustryREIT - Retail
Share Statistics
EPS (TTM)0.56
Shares Outstanding110,469,000
10 Day Avg. Volume313,617
30 Day Avg. Volume155,556
Financial Highlights & Ratios
PEG Ratio0.07
Price to Book (P/B)0.85
Price to Sales (P/S)3.66
P/FCF Ratio11.94
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$5.50Price Target Upside4.56% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)0.4
Revenue Forecast (FY)C$128.00M
Plaza Retail REIT Business Overview & Revenue Model
Company Description
Plaza, an open-ended real estate investment trust, stands as a prominent owner and developer of retail properties, concentrating its efforts primarily in Ontario, Quebec, and Atlantic Canada. As of September 30, 2020, its substantial portfolio enc...
How the Company Makes Money
Plaza Retail REIT primarily makes money by owning income-producing retail real estate and leasing space to commercial tenants under contractual lease agreements.
Key revenue streams include:
1) Rental income from tenants: The REIT earns base rent...
Plaza Retail REIT Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call emphasized multiple operational and financial positives — strong occupancy (97.6%), NOI growth (+3.4%), same-asset NOI growth (+2.3%), solid FFO/AFFO increases (+7.8% and +7.3%), robust leasing spreads (~12% renewals, ~51% new leasing), debt reduction and lower interest costs, a $5M appraisal write-up, and $3.3M of annualized NOI from recent projects. Offsetting these positives are strategic uncertainty from a formal review of alternatives, macroeconomic caution and elevated construction costs, timing-related impacts on reported FFO/AFFO, and the natural timing lag on development contributions. Overall, the highlights substantially outweigh the lowlights, pointing to continued operational resilience and improving financial metrics, albeit with some near-term strategic and timing uncertainties.Positive Updates
Strong Occupancy
Committed occupancy of 97.6% at June 30, 2026, reflecting healthy tenant demand and limited availability of well-located space.
Negative Updates
Strategic Review Announcement Creates Uncertainty
A special committee of the Board has commenced a formal review of strategic alternatives; management declined to comment further on the process during the call, which may create near-term uncertainty for stakeholders.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Occupancy
Committed occupancy of 97.6% at June 30, 2026, reflecting healthy tenant demand and limited availability of well-located space.
Read all positive updates
Company Guidance
Plaza’s guidance for the balance of 2026 emphasizes continued execution of optimization and intensification, capturing contractual and market rent growth, disciplined capital allocation to highest‑return pipeline projects and no need to take incremental risk (management declined to comment on the announced strategic review). Key metrics supporting that outlook include committed occupancy of 97.6%; YTD NOI up 3.4% to $38.7M and same‑asset NOI up 2.3% to $38.5M; FFO +7.8% to $22.6M and AFFO +7.3% to $16.9M (FFO per unit +8.3% and AFFO +8% excluding timing items); lease renewal spreads ~12% (13% on average) and new‑leasing spread ~51%; 189 properties (~8.8M sf); $3.3M annual stabilized NOI from recent projects; weighted average cap rate 6.78%; debt‑to‑assets 48.8% (‑210 bps), net debt/adjusted EBITDA 8.7x (‑70 bps), LTV <40%, $32M of fixed mortgages rolling at 3.8%, and current mortgage all‑in pricing mid‑4s to low‑mid‑5s.Plaza Retail REIT Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
64
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 132.26M | 130.62M | 121.28M | 114.06M | 111.25M | 110.63M |
| Gross Profit | 84.16M | 86.34M | 74.36M | 70.35M | 70.58M | 71.78M |
| EBITDA | 96.26M | 88.07M | 57.32M | 64.63M | 81.34M | 70.51M |
| Net Income | 62.61M | 55.28M | 25.05M | 20.19M | 53.89M | 99.61M |
Balance Sheet | ||||||
| Total Assets | 1.30B | 1.28B | 1.24B | 1.26B | 1.27B | 1.21B |
| Cash, Cash Equivalents and Short-Term Investments | 9.60M | 8.09M | 8.87M | 10.87M | 7.26M | 8.06M |
| Total Debt | 653.04M | 651.14M | 657.22M | 672.47M | 708.14M | 679.24M |
| Total Liabilities | 716.56M | 712.84M | 696.37M | 714.49M | 747.71M | 716.94M |
| Stockholders Equity | 579.16M | 565.25M | 540.82M | 546.49M | 518.90M | 493.52M |
Cash Flow | ||||||
| Free Cash Flow | 44.79M | 40.08M | 39.86M | 42.29M | 80.69M | 69.39M |
| Operating Cash Flow | 44.79M | 40.08M | 39.86M | 42.29M | 38.47M | 48.21M |
| Investing Cash Flow | 5.34M | -9.39M | 5.34M | -10.00M | -44.90M | -21.95M |
| Financing Cash Flow | -40.26M | -39.53M | -23.29M | -40.23M | 1.15M | -26.33M |
Plaza Retail REIT Technical Analysis
Positive
5.26
Price Trends
5.23
Positive
4.93
Positive
4.55
Positive
Market Momentum
0.02
Negative
58.47
Neutral
62.75
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:PLZ.UN, the sentiment is Positive. The current price of 5.26 is above the 20-day moving average (MA) of 5.24, above the 50-day MA of 5.23, and above the 200-day MA of 4.55, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 58.47 is Neutral, neither overbought nor oversold. The STOCH value of 62.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:PLZ.UN.
Plaza Retail REIT Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | C$582.17M | 9.42 | 11.07% | 5.31% | 2.84% | 78.07% | |
73 Outperform | C$4.13B | 7.43 | 12.79% | 5.59% | 4.77% | 24.61% | |
73 Outperform | C$1.07B | 17.41 | 5.97% | 6.70% | 2.01% | 9.35% | |
72 Outperform | C$2.87B | 21.70 | 5.23% | 3.96% | 23.06% | 66.86% | |
70 Outperform | C$4.85B | 4.71 | 22.27% | 3.97% | 0.07% | 295.34% | |
66 Neutral | C$4.52B | 28.49 | 3.03% | 6.98% | -1.11% | -31.75% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% |
* Real Estate Sector Average
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Plaza Retail REIT Corporate Events
Business Operations and StrategyFinancial Disclosures
Plaza Retail REIT Boosts Earnings and Tightens Payouts on Strong Q2
Positive
Aug 5, 2026
Plaza Retail REIT reported solid second-quarter 2026 results, with funds from operations per unit rising 5.0% in the quarter and 7.4% year-to-date, and adjusted funds from operations per unit up 16.4% and 7.0%, respectively. Improved FFO and AFFO ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.