Plaza Retail REIT reported higher earnings and operating income in the third quarter of 2026, with growth in funds from operations (FFO), adjusted funds from operations (AFFO) and net operating income (NOI), as the company continued to reposition its retail property portfolio.
The Fredericton-based real estate investment trust reported FFO per unit of 11.5 cents for the three months ended Sept. 30, up 3.6 per cent from the same quarter last year. AFFO per unit increased 6.5 per cent to 8.2 cents, while committed occupancy reached 98.3 per cent at the end of the reporting period.
The results reflect continued leasing activity, rent increases and improved cost recoveries, alongside contributions from acquisitions, developments and intensification projects.
Higher operating income and occupancy
Plaza reported third-quarter revenue of $32.2 million, up 1.4 per cent from $31.7 million a year earlier. NOI increased 1.5 per cent to $20.8 million, while same-asset NOI rose 3.5 per cent to $20.2 million.
For the first nine months of 2026, revenue increased 2.3 per cent to $96.8 million, while NOI climbed 2.7 per cent to $59.5 million. Same-asset NOI increased 2.2 per cent to $58.1 million.
“We delivered solid growth through the first nine months of 2026, supported by continued execution of our strategy across our portfolio,” said Jason Parravano, President and Chief Executive Officer.
“Operating fundamentals remained resilient. Total NOI increased by 1.5% for the quarter and 2.7% year-to-date, while same-asset NOI increased by 3.5% for the quarter and 2.2% year-to-date. Committed occupancy remained strong at 98.3%, supported by continued tenant demand, contractual rent growth and leasing activity across our essential retail portfolio.”
Portfolio repositioning and capital allocation
Plaza reported quarterly profit and total comprehensive income of $15.6 million, compared with $8.8 million in the same period last year. The increase included a $5.5-million contribution from changes in the fair value of investment properties.
For the nine-month period, profit and total comprehensive income reached $45 million, compared with $30.8 million a year earlier.
“Our results reflect continued progress in strengthening the quality of our portfolio and translating that progress into per-unit earnings growth,” said Parravano.
“During the quarter, we completed the disposition of Village Shopping Centre, allowing us to concentrate our time, resources and capital on our core portfolio of stand-alone properties and open-air strip centres. Our approach to capital allocation remains deliberate: we are recycling capital from mature or non-core assets into opportunities that improve portfolio quality and support sustainable cash flow growth. While dispositions can affect earnings in the near term as proceeds are redeployed, we measure our progress by the quality of the real estate we own, the cash flow it generates and the value we create on a per-unit basis.
“With growing FFO and AFFO, improved payout ratios and our strongest liquidity position in years, we have the financial flexibility to advance our development and intensification pipeline and capitalize on opportunities as they arise. We are prepared to act where those opportunities align with our strategy and offer attractive returns for unitholders, while maintaining discipline in how we deploy capital.”
Plaza’s portfolio included interests in 188 properties totalling approximately 8.4 million square feet across Canada as of Sept. 30, with a focus on Ontario, Quebec and Atlantic Canada.
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