FREDERICTON, NB — March 2, 2026 — Leads & Copy — Plaza Retail REIT (TSX: PLZ.UN) today announced its financial results for the quarter and year ended December 31, 2025.
Total Funds From Operations (FFO) increased to $44.0 million, or $0.395 per unit, compared to $40.5 million, or $0.363 per unit, in 2024. This represents an 8.8% year-over-year improvement, reflecting contributions from same-asset performance, acquisitions completed over the past year, lower administrative expenses due to $2.7 million in reorganization costs in 2024, and the continued execution of Plaza’s value-creation pipeline, which included various optimization and intensification initiatives.
Excluding $123 thousand of reorganization costs, $425 thousand related to a change in bonus accrual timing, $544 thousand of bad debt related to the insolvency of Toys R Us, and excluding 2024 reorganization costs of $2.7 million, 2025 FFO would have been up 4.5% over 2024.
According to Jason Parravano, President and Chief Executive Officer, 2025 marked an important transition year for Plaza, with a strong focus on optimization and intensification strategies, coupled with steady operating fundamentals and a portfolio positioned around non-discretionary retail.
From an operations standpoint, the portfolio continued to demonstrate resilience. Committed occupancy was 97.6% and leasing spreads were at 13.4% based on the average rate over the term. Same-asset NOI grew by 1.7% for the year despite a handful of tenant disruptions that resulted in bad debt adjustments, most notably from the insolvency of Toys R Us. Plaza’s exposure is limited to one location, and they are actively working on a plan to reposition the asset. Excluding the bad debt related to Toys R Us, same asset NOI would have increased by 2.5%. Total NOI for the year was $77.0 million, representing growth of 2.7% compared to 2024.
Over the course of 2025, Plaza’s intensification, development, and consolidation initiatives added approximately $3.0 million of incremental NOI.
During the year, Plaza handed over multiple spaces to Loblaws and other key tenants for fit-ups and construction across select properties. As these openings stabilize and additional initiatives progress, the impact is expected to become more visible through 2026.
For the three months ended December 31, 2025, FFO increased $2.2 million or 25.7% on a dollar basis and 26.3% on a per unit basis, compared with the same quarter in the prior year. AFFO increased $3.1 million or 52.0% on a dollar and per unit basis, compared to the same quarter in the prior year. Same-asset NOI increased by $195 thousand or 1.1% due to an increase in revenue from rent escalations and renewals, partially offset by higher operating expenses during the current period. Same asset NOI was also impacted by $337 thousand of bad debt in the current quarter.
For the twelve months ended December 31, 2025, FFO increased $3.6 million or 8.8% on a dollar and per unit basis, compared with the same period in the prior year. AFFO increased $1.6 million or 5.1% on a dollar basis and 4.9% on a per unit basis, compared to the same period in the prior year. Same-asset NOI increased by $1.3 million or 1.7% due to an increase in revenue from rent escalations and renewals, partially offset by higher operating expenses in the current period due to higher snow removal costs in the first quarter of 2025, and roof and asphalt repairs and maintenance in 2025. Same asset NOI was also impacted by $770 thousand of bad debt.
Plaza’s portfolio at December 31, 2025, includes interests in 191 properties totaling approximately 8.8 million square feet across Canada and additional lands held for development. Plaza’s portfolio largely consists of open-air centres and stand-alone small box retail outlets and is predominantly occupied by national tenants with a focus on the essential needs, value and convenience market segments.
Source: Plaza Retail REIT
