"We started 2026 with solid financial and operating performance driven by continued execution across our portfolio," said Jason Parravano, President and Chief Executive Officer. FFO increased by 11.7% year over year to $10.9 million, or $0.098 per unit, reflecting higher NOI from our same asset portfolio, contributions from optimization initiatives, acquisitions, intensifications and developments transferred to income producing properties, and the disciplined redeployment of capital from asset sales. Excluding the impact of the accrued bonuses in the current year and reorganization costs in the prior year, FFO per unit would have increased by 15.6% to $0.102. We have made many structural changes to the way we run the business in the last year which has contributed to some noise in our earnings; however, we are satisfied with the results.
Operating fundamentals remained resilient, with same asset NOI increasing by 1.9%, total NOI increasing by 2.5% in the quarter and committed occupancy holding at 97.5%, supported by rent escalations, renewals, and continued tenant demand across our essential retail portfolio. Excluding enclosed malls, our occupancy remains near perfect at 99%. As a result, leasing spreads remain strong. Our negotiated spreads reached 13.4% based on the average rate over the term. In addition, our new leasing spreads were 76.1% which further highlights demand for our space.
"While AFFO was flat year over year due to higher leasing activity and maintenance capital investments, these expenditures are consistent with our strategy to enhance asset quality, support stronger rental spreads, and unlock long term value," continued Mr. Parravano. As we progress through 2026, we expect the benefit of recently completed and advancing projects to become increasingly evident, reinforcing our ability to drive sustainable cash flow growth and position Plaza for long term value creation."
Summary of Selected IFRS Financial Results
(CAD$000s, except percentages)
Three Months
Ended
March 31, 2026
Three Months
Ended
March 31, 2025
$ Change
% Change
Revenues
$32,510
$31,137
$1,373
4.4 %
Net operating income (NOI)(1)
$18,795
$18,344
$451
2.5 %
Net change in fair value of investment properties
$2,118
$2,136
($18)
-
Profit and total comprehensive income
$12,820
$9,319
$3,501
-
(1)
This is a non-GAAP financial measure. Refer to the Non-GAAP Financial Measures defined here and in Part I and VII of the Management's Discussion and Analysis ("MD&A") ending March 31, 2026 for more information on each non-GAAP financial measure.
Quarterly Highlights
NOI was $18.8 million, up $451 thousand or 2.5% from the same period in 2025. The increase is due to increased revenue from leasing and rent escalations over the same period in the prior year, partially offset by higher operating expenses.
Profit and total comprehensive income for the current quarter was $12.8 million compared to $9.3 million in the same period in the prior year. Profit and total comprehensive income was impacted by the change in share of profit of associates, which increased by $1.7 million over the same period in the prior year. This was mainly due to the non-cash fair value adjustment to the underlying investment properties, as well as increased income at various properties. Profit and total comprehensive income also increased this quarter as a result of changes in non-cash fair value adjustments relating to derivative assets and liabilities, which accounted for $1.2 million of the increase, as well as the change in fair value of Class B exchangeable LP units.
Summary of Selected Non-IFRS Financial Results
(CAD$000s, except percentages, units repurchased and per unit amounts)
Three Months
Ended
March 31, 2026
Three Months
Ended
March 31, 2025
$ Change
% Change
FFO(1)
$10,908
$9,763
$1,145
11.7 %
FFO per unit(1)
$0.098
$0.088
$0.010
11.4 %
FFO payout ratio(1)
71.6 %
80.0 %
n/a
(10.5 %)
AFFO(1)
$8,281
$8,289
($8)
(0.1 %)
AFFO per unit(1)
$0.074
$0.074
-
-
AFFO payout ratio(1)
94.3 %
94.2 %
n/a
0.1 %
Same-asset NOI(1)
$19,068
$18,707
$361
1.9 %
Committed occupancy, including non-consolidated investments(2)
97.5 %
97.6 %
n/a
(0.1 %)
Same-asset committed occupancy(3)
97.1 %
97.1 %
n/a
-
