Q2 2024 Plaza Retail REIT Earnings Call Transcript
Key Points
- Total NOI increased by 4% over the previous year, driven by recently completed developments and strong same-asset NOI growth.
- AFFO for the quarter rose by 14% due to lower leasing and maintenance capital expenditures.
- Committed occupancy rate improved by 50 basis points from the previous quarter, reaching 97.6%, aligning with the best performance in recent history.
- Lease renewal spreads remained robust at 7.9% for the first year of the renewal term and 9.7% using the average rent over the renewal term.
- Capital recycling program saw non-core asset sales exceed IFRS values by 11%, with a weighted average cap rate of 5.9%.
- Debt to assets ratio remained high at 51%, excluding land leases.
- A $7.3 million write-down was taken on investment properties due to revised stabilized NOI at an enclosed mall and cost overruns on a development property.
- Higher interest rate environment posed challenges, although FFO remained consistent with the previous year.
- Leasing costs year-to-date totaled approximately $2.9 million, impacting overall financials.
- Despite strong performance metrics, the company faces ongoing risks and uncertainties that could affect future results.
Good morning. I would like to welcome everyone to the Plaza Retail REIT second-quarter-2024 earnings conference call. (Operator Instructions) I would like to advise everyone that this conference call 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. Good morning, everyone, and thank you for joining us on our Q2-2024 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 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
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