Plaza Retail REIT has announced its financial results for the quarter and year ended December 31, 2025.
“2025 marked an important transition year for Plaza with a strong focus on our optimization and intensification strategies, coupled with steady operating fundamentals and a portfolio positioned around non-discretionary retail,” said Jason Parravano, President and Chief Executive Officer in a news release. “Total FFO increased to $44.0 million or $0.395 per unit compared to $40.5 million or $0.363 per unit in 2024, 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 our 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 and $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.”
“From an operations standpoint, the portfolio continued to demonstrate resilience. Demand for our space remained healthy, with committed occupancy of 97.6% and leasing spreads 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. Our exposure is limited to one location, and we 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%. This outcome speaks to both the quality of our locations and the strength of our leasing execution.
“In addition to our strong operating fundamentals, over the course of 2025, our intensification, development, and consolidation initiatives added approximately $3.0 million of incremental NOI, reinforcing our strategy of extracting embedded value from the existing portfolio while maintaining financial discipline. Total NOI for the year was $77.0 million, representing growth of 2.7% compared to 2024.”
“We also made meaningful progress advancing projects that will increasingly benefit results in 2026 and beyond. During the year, we 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, we expect the impact to become more visible through 2026. At the same time, our optimization work continues to support FFO growth and long-term value creation, even if it can create timing-related noise in AFFO comparisons.”
Plaza is an open-ended real estate investment trust and is a leading retail property owner and developer, focused on Ontario, Quebec and Atlantic Canada. 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.
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