TSX:PLZ.UN

Stock Analysis Report

Executive Summary

Plaza is an open-ended real estate investment trust and is a leading retail property owner and developer, focused on Ontario, Quebec and Atlantic Canada.


Snowflake Analysis

6 star dividend payer and undervalued.

Share Price & News

How has Plaza Retail REIT's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PLZ.UN's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

7.0%

PLZ.UN

9.2%

CA REITs

3.7%

CA Market


1 Year Return

-26.7%

PLZ.UN

-24.6%

CA REITs

-23.7%

CA Market

Return vs Industry: PLZ.UN underperformed the Canadian REITs industry which returned -24.6% over the past year.

Return vs Market: PLZ.UN underperformed the Canadian Market which returned -23.7% over the past year.


Shareholder returns

PLZ.UNIndustryMarket
7 Day7.0%9.2%3.7%
30 Day-31.5%-27.4%-19.7%
90 Day-31.8%-26.5%-24.3%
1 Year-21.7%-26.7%-20.7%-24.6%-21.2%-23.7%
3 Year-23.1%-36.8%-1.6%-16.7%-13.3%-21.4%
5 Year-11.0%-30.1%12.3%-15.4%-0.8%-15.5%

Price Volatility Vs. Market

How volatile is Plaza Retail REIT's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Plaza Retail REIT undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PLZ.UN (CA$3.07) is trading below our estimate of fair value (CA$6.95)

Significantly Below Fair Value: PLZ.UN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PLZ.UN is good value based on its PE Ratio (6.2x) compared to the REITs industry average (7.4x).

PE vs Market: PLZ.UN is good value based on its PE Ratio (6.2x) compared to the Canadian market (10.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate PLZ.UN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: PLZ.UN is good value based on its PB Ratio (0.7x) compared to the CA REITs industry average (0.7x).


Next Steps

Future Growth

How is Plaza Retail REIT forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

2.1%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if PLZ.UN's forecast earnings growth is above the savings rate (1.4%).

Earnings vs Market: Insufficient data to determine if PLZ.UN's earnings are forecast to grow faster than the Canadian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: PLZ.UN's revenue (2.1% per year) is forecast to grow slower than the Canadian market (3.7% per year).

High Growth Revenue: PLZ.UN's revenue (2.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if PLZ.UN's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Plaza Retail REIT performed over the past 5 years?

-10.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PLZ.UN has a large one-off gain of CA$12.8M impacting its December 31 2019 financial results.

Growing Profit Margin: PLZ.UN's current net profit margins (45.2%) are higher than last year (11.8%).


Past Earnings Growth Analysis

Earnings Trend: PLZ.UN's earnings have declined by -10.9% per year over the past 5 years.

Accelerating Growth: PLZ.UN's earnings growth over the past year (326.2%) exceeds its 5-year average (-10.9% per year).

Earnings vs Industry: PLZ.UN earnings growth over the past year (326.2%) exceeded the REITs industry 4.7%.


Return on Equity

High ROE: PLZ.UN's Return on Equity (10.9%) is considered low.


Next Steps

Financial Health

How is Plaza Retail REIT's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: PLZ.UN has a high level of physical assets or inventory.

Debt Coverage by Assets: PLZ.UN's debt is not covered by short term assets (assets are 0x debt).


Financial Institutions Analysis

Asset Level: PLZ.UN's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if PLZ.UN has a sufficient allowance for bad loans.

Low Risk Liabilities: PLZ.UN reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if PLZ.UN has an acceptable proportion of non-loan assets held.

Low Risk Deposits: PLZ.UN has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if PLZ.UN has an appropriate level of bad loans.


Next Steps

Dividend

What is Plaza Retail REIT's current dividend yield, its reliability and sustainability?

9.12%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PLZ.UN's dividend (9.12%) is higher than the bottom 25% of dividend payers in the Canadian market (2.69%).

High Dividend: PLZ.UN's dividend (9.12%) is in the top 25% of dividend payers in the Canadian market (8.66%)


Stability and Growth of Payments

Stable Dividend: PLZ.UN's dividends per share have been stable in the past 10 years.

Growing Dividend: PLZ.UN's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (70%), PLZ.UN's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PLZ.UN's dividends in 3 years are forecast to be thoroughly covered by earnings (0.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.1yrs

Average management tenure


CEO

Michael Zakuta (59yo)

15.25s

Tenure

CA$400,000

Compensation

Mr. Michael Aaron Zakuta has been the President and Chief Executive Officer at Plaza Retail REIT ( foremerly known as Les Centres commerciaux Plazacorp Ltée) since April 20, 2005. Mr. Zakuta is the Preside ...


CEO Compensation Analysis

Compensation vs Market: Michael's total compensation ($USD282.20K) is below average for companies of similar size in the Canadian market ($USD760.89K).

Compensation vs Earnings: Michael's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Michael Zakuta
President15.25yrsCA$400.00k4.33% CA$12.6m
James Petrie
Executive VP & COO4.92yrsCA$463.58k0.060% CA$173.9k
Peter Mackenzie
Executive VP & Chief Investment Officer3.25yrsCA$367.12k0.15% CA$440.9k
Jim Drake
Chief Financial Officer0.67yrno data0.062% CA$181.4k
Myles Martin
Senior Vice Presidentno dataCA$429.00kno data
Kim Sharpe
Director of Business Developmentno datano datano data
Stephen Penney
no datano data0.021% CA$62.6k

4.1yrs

Average Tenure

Experienced Management: PLZ.UN's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Zakuta
President15.25yrsCA$400.00k4.33% CA$12.6m
Stephen Johnson
Independent Trustee21.17yrsCA$35.00k0.57% CA$1.7m
Denis Losier
Independent Trustee13yrsCA$51.25k0.14% CA$422.0k
Earl Brewer
Chairman of the Boardno dataCA$200.00k2.51% CA$7.3m
Barbara Trenholm
Independent Trustee15.08yrsCA$56.75k0.20% CA$590.9k
Jane Marshall
0.42yrno data0.019% CA$56.7k

15.1yrs

Average Tenure

66yo

Average Age

Experienced Board: PLZ.UN's board of directors are seasoned and experienced ( 15.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: PLZ.UN insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Plaza Retail REIT's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Plaza Retail REIT
  • Ticker: PLZ.UN
  • Exchange: TSX
  • Founded: 1999
  • Industry: Retail REITs
  • Sector: Real Estate
  • Implied Market Cap: CA$291.318m
  • Market Cap: CA$313.487m
  • Shares outstanding: 103.30m
  • Website: https://www.plaza.ca

Number of Employees


Location

  • Plaza Retail REIT
  • 98 Main Street
  • Fredericton
  • New Brunswick
  • E3A 9N6
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PLZ.UNTSX (The Toronto Stock Exchange)YesTrust UnitsCACADJul 1999
PAZR.FOTCPK (Pink Sheets LLC)YesTrust UnitsUSUSDJul 1999

Biography

Plaza is an open-ended real estate investment trust and is a leading retail property owner and developer, focused on Ontario, Quebec and Atlantic Canada. Plaza's portfolio at December 31, 2019 includes interests in 274 properties totaling approximately 8.4 million square feet across Canada and additional lands held for development. Plaza's portfolio largely consists of open-air centres and stand-alone small box retail outlets and is predominantly occupied by national tenants. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 01:38
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.