Plaza Retail REIT

Good morning. I would like to welcome everyone to the Plaza Retail REIT second quarter 2023 earnings conference call. At this time, all participants are in a lesson-only mode. Following the presentation, we will conduct a question and answer session. Instructions will be provided at that time for you to queue up for questions. If anyone has any difficulties hearing the conference, please press star zero for the operator. I would like to advise everyone that this conference is being recorded. I will now turn the conference over to Kim Strange, Plaza's General Counsel and Secretary. Please go ahead, Ms. Strange.

Thank you, Operator. Good morning, everyone, and thank you for joining us on our Q2 2023 results conference call. Before we begin this morning, we are obliged to advise you that in talking about our financial and operating performance and in responding to questions today, We may make forward-looking statements, including statements concerning Plaza's objectives and strategies to achieve them, as well as statements with respect to our plans, estimates, and intentions, or concerning anticipated future events, results, circumstances, or performance that are not historical facts. These statements are based on our current expectations and assumptions and are subject to risks and uncertainties that could cause our actual results to differ materially from the conclusions in these forward-looking statements. Additional information on the risks that could impact our actual results and the expectations and assumptions we applied in making these forward-looking statements can be found in Plaza's most recent annual information form for the year ended December 31st, 2022 and management's discussion and analysis for the six months ended June 30th, 2023 which are available on our website at www.plaza.ca and on CDAR at www.cdar.com. We will also refer to non-GAAP financial measures widely used in the Canadian real estate industry, including FFO, AFFO, NOI, and Same Asset NOI. Plaza believes these financial measures provide useful information to both management and investors, In measuring the financial performance and financial condition of PLASA, these financial measures do not have any standardized definitions prescribed by IFRS and may not be comparable to similar titled measures reported by other real estate investment trusts or entities. They should be considered as supplemental in nature and not as a substitute for related financial information prepared in accordance with IFRS. For definitions of these financial measures and where to find reconciliations thereof, please refer to Part 7 of our MD&A for the six months ended June 30, 2023, under the heading Explanation of Non-Gap Measures. I will now turn the call over to Michael Zacuta, Plaza's President and CEO. Michael?

Thank you, Kim. Good morning. Plaza's business and tenants focused on essential needs, value, and convenience retail in open air centres remain strong and resilient and continue to perform well. This second quarter served as a building block for future growth with a record committed occupancy level, healthy renewal spreads and robust development pipeline which will contribute incremental income and value over the next two years. Our development program is progressing well. In the past quarter, we substantially completed redevelopment projects in Cambridge and Sault Ste. Marie, Ontario and started construction of our Atlantic Superstore and Shoppers Drug Anchored Centre in Dieppe, New Brunswick. Furthermore, we opened new winter stores in Rue Anne-Lorraine, Quebec and Sault Ste. Marie, Ontario. Construction is underway on Winners HomeSense in Bedford, Nova Scotia and Granby, Quebec and at Princess Auto in Drummaville, Quebec, with store openings anticipated before year-end. As we focus on delivering on our most robust development pipeline ever, we expect to announce more major retailer signings and openings across our geography as our projects advance. We are experiencing fewer delivery delays for critical building components and we are seeing better construction pricing. Despite the changing nature of the retail industry, we have successfully maintained strong occupancy rates across our portfolio. This achievement is testament to our strong tenant relationships and the attractiveness of our well-located retail spaces. Renewal spreads have remained healthy, contributing to stability and growth of our rental income and highlighting the value and desirability of our properties. Interest rates remain a subject of ongoing attention. Plaza has limited exposure to floating rates, which are generally reserved for our operating line and interim debt facilities. The majority of our debt is at fixed rates with a well-balanced maturity ladder, which provides stability and insulation against interest rate fluctuations. Our conservative and prudent approach ensures that we can effectively manage impacts from higher interest rates. Despite increasing interest rates, investor demand for our non-core assets remains high. During the quarter, we sold two non-core QSR assets in Ontario, eight non-core QSR assets in Quebec, one non-core QSR asset in Nova Scotia, and one non-core strip in Prince Edward Island at above IFRS values. The sale of these assets, coupled with our ongoing development and redevelopment program, improves the overall quality of our portfolio as we sell our least attractive assets and we replace them with shiny new relevant properties. Looking ahead, we remain optimistic about the future of the retail industry and our business. While challenges persist, we believe that our strong financial position high occupancy rates, disciplined approach to financing will continue to serve us well. Our developments are poised to contribute to our growth, and we will continue to capitalize on opportunities as they arise. I will now turn the call over to Jim Drake, Plaza CFO. Jim?