Plaza Retail REIT (PLZ.UN) AI Stock Analysis

• Market Cap: C$421.83M
• Dividend Yield: 7.33%
• Average Volume (3M): 51.11K
• Price to Earnings (P/E): 17.1
• Beta (1Y): 0.44
• Revenue Growth: 6.36%
• EPS Growth: 13.91%
• Country: CA
• Employees: 98
• Sector: Real Estate
• Sector Strength: 64
• Industry: REIT - Retail
• EPS (TTM): 0.08
• Shares Outstanding: 110,425,780
• 10 Day Avg. Volume: 74,484
• 30 Day Avg. Volume: 51,111
• PEG Ratio: N/A
• Price to Book (P/B): 0.78
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.80
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$4.19
• Price Target Upside: 10.85% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 75 Outperform
• Price Target: C$4.50 ▲( 19.05% Upside)

Plaza Retail REIT earns a score of 75, driven by stable financial performance and positive earnings call insights. Strong technical indicators and attractive valuation support its position as a solid investment. The high dividend yield enhances its appeal, though investors should monitor operational challenges like seasonal costs.

Positive Factors

Leasing and Occupancy

Plaza renewed a significant amount of leases at favorable leasing spreads and improved portfolio occupancy to 97.6%.

Redevelopment Projects

Completing redevelopment projects should boost cash flow significantly, with significant developments underway.

Valuation

Plaza Retail REIT trades at a significant discount to its net asset value (NAV) compared to its Canadian retail REIT peers, suggesting potential investment value.

Negative Factors

Interest Rates

Greater interest expense due to the rise in interest rates negatively impacts Plaza Retail REIT's financial performance.

Operating Costs

FFO per unit drops 1% due to higher operating costs from a tougher winter and temporary dilution from asset sales.

Plaza Retail REIT Business Overview & Revenue Model

Company Description

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 September 30, 2020 includes interests in 272 properties totaling approximately 8.6 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.

How the Company Makes Money

Plaza Retail REIT generates revenue primarily through leasing retail space to tenants, which include a mix of national, regional, and local retailers. The company collects rent from these tenants based on long-term lease agreements, which often include base rent and additional charges for common area maintenance and property taxes. Plaza Retail REIT's revenue is further supported by strategic property acquisitions, developments, and redevelopments that enhance the value of its portfolio. The REIT's earnings are also influenced by its ability to maintain high occupancy rates, negotiate favorable lease terms, and manage operational costs efficiently. By focusing on properties in well-located markets with strong demographics, Plaza Retail REIT aims to provide consistent returns to its investors.

Plaza Retail REIT Financial Statement Overview

Summary

Plaza Retail REIT demonstrates stable financial health with consistent revenue growth and improved net income. The balance sheet shows moderate leverage typical of REITs, and cash flow management is effective despite a decline in operating cash flow. Overall, financials reflect a balanced growth and risk approach suitable for its industry.

Income Statement

The income statement shows a moderate growth trend in revenue from 2023 to 2024 (6.34%). Gross profit margin is stable at around 61.3%. However, the absence of EBIT in 2024 is a concern, potentially impacting profitability analysis. The net profit margin improved slightly to 20.65% from 17.69% in 2023, indicating better cost management or revenue growth.

Balance Sheet

The balance sheet shows a stable equity position with a debt-to-equity ratio of approximately 1.22, indicating moderate leverage for a REIT. The equity ratio is 43.61%, reflecting a balanced asset structure. Return on equity increased to 4.63% in 2024, showing improved profitability relative to shareholder's equity.

Cash Flow

Cash flow analysis reveals a decline in operating cash flow from 2023 to 2024 by 5.74%, which may indicate operational challenges. However, free cash flow remains stable, showing effective capital expenditure management. The operating cash flow to net income ratio is 1.59, suggesting efficient cash generation relative to earnings.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
123.72M	121.28M	114.06M	111.25M	110.63M	106.90M
	Gross Profit
75.68M	74.36M	70.35M	70.58M	71.78M	68.75M
	EBIT
66.74M	65.60M	65.35M	55.07M	35.64M	35.51M
	EBITDA
47.60M	57.32M	64.63M	81.34M	70.51M	64.48M
	Net Income Common Stockholders
24.94M	25.05M	20.19M	53.89M	99.61M	-14.94M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.54M	8.87M	10.87M	7.26M	8.06M	8.27M
	Total Assets
1.06B	1.24B	1.26B	1.27B	1.21B	1.14B
	Total Debt
578.82M	657.22M	672.47M	708.14M	679.24M	681.13M
	Net Debt
570.29M	648.35M	661.60M	700.88M	671.18M	672.85M
	Total Liabilities
609.02M	696.37M	714.49M	747.71M	716.94M	712.23M
	Stockholders Equity
450.07M	540.82M	546.49M	518.90M	493.52M	422.41M
Cash Flow		Free Cash Flow
39.27M	39.86M	42.29M	80.69M	69.39M	60.87M
	Operating Cash Flow
39.27M	39.86M	42.29M	38.47M	48.21M	31.72M
	Investing Cash Flow
10.39M	5.34M	-10.00M	-44.90M	-21.95M	-27.77M
	Financing Cash Flow
-27.84M	-23.29M	-40.23M	1.15M	-26.33M	-20.64M

Plaza Retail REIT Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.78
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 3.78 is above the 20-day moving average (MA) of 3.76, above the 50-day MA of 3.72, and above the 200-day MA of 3.61, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 53.85 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PLZ.UN	75 Outperform	C$421.83M	17.08	4.57%	7.33%	6.36%	13.91%
Sector *	60 Neutral	$2.76B	10.33	0.49%	8508.28%	5.95%	-17.56%
RIOCF		$3.67B	19.41	3.61%	6.51%	―	―
SGR.UN	84 Outperform	C$869.96M	15.48	5.85%	8.31%	3.90%	8.72%
CRT.UN	82 Outperform	C$3.68B	8.30	11.23%	5.98%	4.54%	68.32%
SRU.UN	78 Outperform	C$4.31B	18.32	4.75%	7.31%	10.06%	-19.26%
FCR.UN	76 Outperform	C$3.64B	16.96	5.40%	5.08%	3.11%	―

Plaza Retail REIT Corporate Events

Plaza Retail REIT Declares May 2025 Distribution

Plaza Retail REIT announced its May 2025 monthly distribution of $0.02333 per unit, payable on June 16, 2025, to unitholders of record as of May 30, 2025. This announcement reflects Plaza’s ongoing commitment to providing consistent returns to its investors, reinforcing its stable position in the retail property market across Canada.

The most recent analyst rating on ($TSE:PLZ.UN) stock is a Hold with a C$4.00 price target. To see the full list of analyst forecasts on Plaza Retail REIT stock, see the TSE:PLZ.UN Stock Forecast page.

Plaza Retail REIT Reports Strategic Growth in Q1 2025

Plaza Retail REIT reported its first quarter 2025 financial results, highlighting a strategic increase in ownership of Tacoma Plaza and ongoing conversion of space into grocery retail, which is expected to significantly boost net operating income. Despite a slight decrease in profit compared to the previous year, the company experienced a positive shift in the fair value of investment properties and an increase in adjusted funds from operations, indicating a strong operational performance and strategic growth initiatives.

Plaza Retail REIT Strengthens Portfolio with Tacoma Plaza Acquisition

Plaza Retail REIT reported its first-quarter 2025 financial results, highlighting a strategic move to fully acquire Tacoma Plaza, a grocery and pharmacy-anchored strip, and the conversion of 40,000 square feet into grocery retail, expected to generate significant incremental NOI. The company’s financial performance showed a slight increase in net operating income due to higher revenues from leasing and rent escalations, despite increased operating expenses. The REIT’s profit was slightly down compared to the previous year, impacted by non-cash fair value adjustments and higher operating expenses. However, the AFFO saw a notable increase, reflecting lower leasing costs and maintenance capital expenditures.

Plaza Retail REIT to Discuss Q1 2025 Financial Results in Upcoming Conference Call

Plaza Retail REIT has announced a conference call scheduled for May 8, 2025, to discuss its first quarter financial results for 2025. The financial statements and management’s discussion and analysis will be available prior to the call on Plaza’s website and SEDAR+. This announcement is significant for stakeholders as it provides an opportunity to gain insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and investor confidence.

Plaza Retail REIT Declares April 2025 Distribution

Plaza Retail REIT announced its April 2025 monthly distribution of $0.02333 per unit, which annualizes to $0.28. This distribution will be payable on May 15, 2025, to unitholders recorded by April 30, 2025. This announcement reflects Plaza’s ongoing commitment to providing consistent returns to its investors, reinforcing its stable position within the retail real estate market. The focus on essential needs and value-oriented retail properties positions Plaza favorably in the current economic climate, potentially benefiting stakeholders through sustained occupancy and rental income.

Plaza Retail REIT Declares March 2025 Distribution

Plaza Retail REIT announced its March 2025 monthly distribution of $0.02333 per unit, payable on April 15, 2025, to unitholders of record as of March 31, 2025. This announcement reflects Plaza’s ongoing commitment to providing consistent returns to its investors, reinforcing its strong position in the retail property sector across Canada.

Plaza Retail REIT Reports Robust 2024 Financial Results

Plaza Retail REIT reported strong financial results for 2024, showcasing record growth in same-asset net operating income (NOI) and lease renewal spreads, alongside high occupancy rates. The company’s strategic portfolio improvements, including development projects and the sale of non-core assets, have enhanced its resilience against macroeconomic challenges. The financial performance was bolstered by increased leasing revenue and rent escalations, although impacted by administrative costs related to reorganization and development project write-offs. Overall, Plaza’s robust results reflect its well-positioned portfolio in the retail real estate market.