Plaza Retail REIT

Good morning. I would like to welcome everyone to the Plaza Retail Meet 4th Quarter 2024 Earnings Conference Call. At this time, all participants are in listen-only mode. Following the presentation, we will conduct a question and answer session. Instruction 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 operator assistance at any time. 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 Q4 2024 Results Conference Call. Before we begin today, we are obliged to advise you that in talking about our financial and operating performance, and in responding to questions, 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 uncertainty 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 31, 2023, and management's discussion and analysis for the fourth quarter and the December 31, 2024, which are available on our website at www.plaza.ca and on CDAR Plus at www.cdarplus.ca. We will also refer to non-GAAP financial measures widely used in the Canadian real estate industry, including FFO, AFFO, EBITDA, adjusted EBITDA, 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 the trust. 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 fourth quarter ended December 31, 2024 under the heading Explanation of Non-GAP Measures. With this, I will now turn the call over to Jason Paravano, Plaza's President and CEO. Jason?

Thank you, Kim. Good morning. We appreciate you joining today as we review our financial performance and some other key metrics and achievements for the fourth quarter of 2024. Our 2024 results reflect record same asset NOI growth, lease renewal spreads, and excellent occupancy rates. As we reflect on the past year, I'm proud to share the significant strides we have made at Plaza during 2024. Despite the challenges presented by the evolving economic landscape, our commitment to excellence and strategic growth has positioned us for continued success. Our portfolio, which is comprised of 8.8 million square feet of retail space, has demonstrated its resilience and attractiveness this past year. In 2024, we focused on positioning the business for operational excellence, enhancing our portfolio through the completion of a few development projects and the sale of non-core properties. Our efforts have not only increased our per unit FFO net of one-time impacts, but also improve the quality and resilience of our properties. We have successfully expanded our footprint in markets we know very well, ensuring that we remain at the forefront of the retail real estate sector in Eastern Canada. As mentioned, our occupancy rate has achieved record levels and leasing spreads continue to move in the right direction, averaging 7.4% for the average rate over the real term. Excluding the renewal of a theater tenant at a lower base rent, but with the addition of percentage rents, the renewal spread for open air centers would have been 11.8% using the average rent in the renewal term. Tenant demand continues to be a driver in our success and the geographic positioning of our asset mix is an advantage. Over the course of the year, our team worked diligently towards the renewal and new leasing of over 1 million square feet of space. This is a clear demonstration that retail fundamentals in Canada remain strong. It is a testament to our great properties and our team's hard work. In addition, Barriers to entry for retail real estate remain high. As such, we've been able to continually capitalize on this lack of supply through very healthy leasing spreads. Intensification opportunities have begun to materialize as retailers are coming face to face with supply issues. We are in the early days of assessing the benefit from said intensification, but nonetheless, the demand remains promising. These intensification opportunities include additional development square footage on excess land for which we never attributed any value. Additional opportunities, including converting certain mothball space to GLA, as well as other repositioning opportunities within the portfolio, also exist. For the quarter and year to date, our same asset NOI was 4.8% and 3.4% respectively, which is a direct result of certain asset repositioning and strong leasing spreads. Our 2024 capital recycling program was successful, and it achieved its overall goal to increase the average size of our properties, reduce the average age of our assets, and improve the overall quality of the portfolio. Non-discretionary retailers are aggressive in seeking new opportunities, whether opening net new locations or expanding into bigger spaces when available. We launched prior to the end of the year the construction of a new development in the city of Welland, Ontario, anchored by a 35,000 square foot grocery tenant, along with many other of our usual customers. This project is a great example of our team being able to identify a market which is undersupplied, assemble entitled land, and deliver space to our tenants. When finished, the project will have approximately 100,000 square feet of retail space and Plaza will retain a 50% interest in the project. As Plaza's focus has always been retail, we know it very well. We remain focused on being a best in class owner and operator of retail properties. We are the only read on the TSX offering investors with access to a pure plate, essential needs, value and convenience retail. I'll now turn the call over to Jim Drake, RCFO.