Plaza Retail REIT

morning, I would like to welcome everyone to the plaza retail REIT fourth quarter 2025 earnings conference call. At this time, all participants are in a listen 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 operator assistance at any time. I would like to advise everyone that this conference is being recorded. I'll 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 2025 results conference call. Before we begin, 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, statements with respect to our plans, estimates, and intentions, or statements 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 forward-looking statements can be found in Plaza's most recent annual information form for the year ended December 31, 2024, and management's discussion and analysis for the fourth quarter ended December 31, 2025, which are available on our website at www.plaza.ca and on CDARplus 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, 2025, under the heading Explanation of Non-Gap Financial Measures. I will now turn the call over to Jason Paravano, Plaza's President and CEO. Jason?

Thank you, Kim. Good morning, everyone. 2025 was a year that reinforced why Plaza's strategy works. In a market defined by cautious consumers, uneven economic signals, and still elevated costs of capital and construction, our portfolio continued to demonstrate the durability of essential needs retail backed by disciplined execution and a fully internalized operating platform. We remained focused on optimization and intensification while continuing to benefit from steady operating fundamentals and a portfolio concentrated in non-discretionary retail. This combination delivered another year of growth. Total FFO increased to 44 million or 39.5 cents per unit compared to 40.5 million or 36.3 cents per unit in 2024. and 8.8% improvement. There are a few one-time items that cloud those results, so I figured I would provide an explanation on how to normalize our solid performance for the year. If you exclude $123,000 of your organization costs, $425,000 related to a change in bonus accrual timing, and $544,000 of bad debt tied to Toys R Us insolvency in 2025, and exclude 2.7 million in reorganization costs for 2024. FFO per unit would have increased approximately 4.5% year over year. This performance reflects the strength of our portfolio and the disciplined execution of our strategy, which we have been pursuing for the last year. The main driver behind this growth comes from higher NOI from same asset growth, which highlights our ability to complete many optimization projects, as well as acquisitions and intensifications. Leasing fundamentals remain robust, with blended leasing spreads of 13.4% over the renewal term. Notably, our leasing spreads on negotiated renewals over the renewal term were just over 18%. This underscores our ability to drive value from the existing portfolio and demonstrates the favorable delta between our in-place and market rents. Our two-minute occupancy remains at an all-time high of 97.6%. We also have an active lease pending attending conditions which will increase document occupancy number to 98% in the coming days. Excluding enclosed malls, our occupancy rate climbs even higher and is near perfect at 99%. These metrics continue to reflect all-time high performance levels, reinforcing sustained tenant demand and the strategic positioning of our portfolio in markets characterized by limited retail supply. As renewals continue to take effect during the year, we expect continued positive impact on same property NOI, completed by contributions from intensification and optimization projects currently underway across the portfolio. On the value creation side of the business, our intensification development and consolidation initiative added approximately 5.5 million of NOI in 2025, reinforcing our strategy of extracting embedded growth from within the existing portfolio while maintaining capital discipline. Total NOI for the year was 77 million, representing growth of 2.7% compared to 2024. We also advanced and completed several projects that should contribute more visibly 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 locations open and stabilize, we expect their contribution to become more apparent through 2026. As we have noted previously, optimization work can create timing-related noise in AFFO, but this work supports FFO growth and long-term value creation. Stepping back, our portfolio today stands at 191 properties, totaling approximately 8.8 million square feet across Canada, with a strong concentration in open-air centres and small box format lease predominantly to national tenants serving the essential needs, value, and convenience segment. This focus continues to underpin stable demand and attractive reinvestment opportunities across our markets. In 2026, our priorities are clear. Continue executing on optimizations and intensifications already in motion, drive leasing spreads where we see embedded mark-to-market and prudently allocate capital to the highest return opportunities within our pipeline. We remain disciplined, we remain focused on retail, we know it well, and we remain committed to long-term value creation for our unit holders, our tenants, and the communities we serve. With that, I'll turn it over to Jim to take you through the financials in more detail.