Fredericton Retail Property Company Building New Chain Restaurants, Superstore In N.S.
FREDERICTON – Plaza Retail REIT’s quarterly earnings report showed continued, steady recovery from their financial hit due to the Covid-19 pandemic, even with new lockdowns down because of Covid-19.
The publicly traded company (TSX: PLZ.UN) based in Fredericton says 93 percent of their businesses are now open, a three percent decrease from last quarter. This can be attributed to further lockdowns across the country, particularly in Ontario, during the third wave of Covid across the country.
“Our outlook continues to be very positive. Our portfolio of essential needs and value retail open-air centers located in primary and strong secondary markets across a wide geography are performing well,” said Michael Zakuta, President and CEO of Plaza in a conference call to investors last Friday.
The company’s stock was trading at $3.97 with a market cap of $400.32-million at the end of last week, an increase of more than a dollar compared to the same date in 2020.
On the call, the company again credited their expansive portfolio in Atlantic Canada and their portfolio consisting of essential retailers for their ability to navigate the pandemic.
The company reports they collected 98.6% of rent in Q1 of 2021 with $28.49-million in total revenue. They currently have close to 6.9-million square feet of leasable area with 95.8% occupancy.
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Discussing future developments, Zakuta touched on the rising cost of construction supplies such as lumber and steel, but said they’re managing more new projects than they were at this time in 2019, pre-pandemic.
“Rising construction costs remain a factor and we’re looking to offset their effect with higher rents and lower financing costs,” said Zakuta. “It’s not always possible to move rents higher, but we are benefiting from lower interest rates and cap rates that help us to maintain our net development margins.”
Some construction projects include a new Esso, IHOP, Popeyes Louisiana Kitchen, and A&W at Hogan Court Plaza in Bedford, Nova Scotia, as well as a new Pet Valu at Queen’s Place in Liverpool, Nova Scotia. New openings over the quarter include a Domino’s Pizza in Tacoma Plaza in Dartmouth and an Atlantic Superstore at Hogan Court Plaza in Bedford.
Liam Floyd is a reporter with Huddle. Send him story suggestions: [email protected].