OTCPK:PAZR.F

Stock Analysis Report

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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

Undervalued established dividend payer.

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: PAZR.F's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0.9%

PAZR.F

3.9%

US REITs

2.4%

US Market


1 Year Return

n/a

PAZR.F

-7.4%

US REITs

9.2%

US Market

Return vs Industry: Insufficient data to determine how PAZR.F performed against the US REITs industry.

Return vs Market: Insufficient data to determine how PAZR.F performed against the US Market.


Shareholder returns

PAZR.FIndustryMarket
7 Day0.9%3.9%2.4%
30 Day-4.4%9.7%10.2%
90 Day-36.7%-11.9%3.4%
1 Yearn/a-3.6%-7.4%11.6%9.2%
3 Yearn/a16.0%1.8%33.7%24.9%
5 Year-19.2%-38.2%47.1%17.0%59.7%41.8%

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

No news available

Valuation

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

49.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PAZR.F ($2.12) is trading below our estimate of fair value ($4.23)

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


Price To Earnings Ratio

PE vs Industry: PAZR.F is good value based on its PE Ratio (9.5x) compared to the REITs industry average (27.7x).

PE vs Market: PAZR.F is good value based on its PE Ratio (9.5x) compared to the US market (15.7x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: PAZR.F is good value based on its PB Ratio (0.7x) compared to the US REITs industry average (1.3x).


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?

2.6%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if PAZR.F's forecast earnings growth is above the savings rate (2.2%).

Earnings vs Market: Insufficient data to determine if PAZR.F's earnings are forecast to grow faster than the US market

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

Revenue vs Market: PAZR.F's revenue (2.6% per year) is forecast to grow slower than the US market (8.8% per year).

High Growth Revenue: PAZR.F's revenue (2.6% 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 PAZR.F'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?

-2.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PAZR.F has high quality earnings.

Growing Profit Margin: PAZR.F's current net profit margins (30.1%) are higher than last year (28%).


Past Earnings Growth Analysis

Earnings Trend: PAZR.F's earnings have declined by -2.6% per year over the past 5 years.

Accelerating Growth: PAZR.F's earnings growth over the past year (4.8%) exceeds its 5-year average (-2.6% per year).

Earnings vs Industry: PAZR.F earnings growth over the past year (4.8%) underperformed the REITs industry 5.3%.


Return on Equity

High ROE: PAZR.F's Return on Equity (7.1%) is considered low.


Next Steps

Financial Health

How is Plaza Retail REIT's financial position?


Financial Position Analysis

Short Term Liabilities: PAZR.F's short term assets (CA$26.7M) do not cover its short term liabilities (CA$153.6M).

Long Term Liabilities: PAZR.F's short term assets (CA$26.7M) do not cover its long term liabilities (CA$534.4M).


Debt to Equity History and Analysis

Debt Level: PAZR.F's debt to equity ratio (129.8%) is considered high.

Reducing Debt: PAZR.F's debt to equity ratio has increased from 129.8% to 129.8% over the past 5 years.

Debt Coverage: PAZR.F's debt is not well covered by operating cash flow (6.7%).

Interest Coverage: PAZR.F's interest payments on its debt are not well covered by EBIT (1.9x coverage).


Balance Sheet


Next Steps

Dividend

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

9.27%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PAZR.F's dividend (9.27%) is higher than the bottom 25% of dividend payers in the US market (1.69%).

High Dividend: PAZR.F's dividend (9.27%) is in the top 25% of dividend payers in the US market (4.55%)


Stability and Growth of Payments

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

Growing Dividend: PAZR.F's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (77.6%), PAZR.F's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

4.3yrs

Average management tenure


CEO

Michael Zakuta (59yo)

15.42yrs

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 ($USD293.56K) is below average for companies of similar size in the US market ($USD1.37M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Michael Zakuta
President15.42yrsCA$400.00k4.62% CA$10.5m
Jim Drake
Chief Financial Officer0.75yrCA$254.79k0.067% CA$153.8k
James Petrie
Executive VP & COO5.08yrsCA$450.91k0.062% CA$141.5k
Peter Mackenzie
Executive VP & Chief Investment Officer3.42yrsCA$361.64k0.17% CA$377.8k
Stephen Penney
Executive Vice President0.42yrno data0.023% CA$52.1k
Myles Martin
Senior Vice Presidentno dataCA$429.00kno data
Kimberly Strange
Company Secretary10yrsno data0.0034% CA$7.8k
Kim Sharpe
Director of Business Developmentno datano datano data

4.3yrs

Average Tenure

Experienced Management: PAZR.F's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Zakuta
President15.42yrsCA$400.00k4.62% CA$10.5m
Stephen Johnson
Independent Trustee21.33yrsCA$40.00k0.58% CA$1.3m
Denis Losier
Lead Independent Trusteeno dataCA$59.75k0.15% CA$331.7k
Earl Brewer
Chairman of the Boardno dataCA$200.00k2.52% CA$5.7m
Barbara Trenholm
Independent Trustee15.25yrsCA$60.75k0.20% CA$464.5k
Jane Marshall
Independent Trustee0.58yrCA$5.88k0.020% CA$44.6k

18.3yrs

Average Tenure

66yo

Average Age

Experienced Board: PAZR.F's board of directors are seasoned and experienced ( 18.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: PAZR.F 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: PAZR.F
  • Exchange: OTCPK
  • Founded: 1999
  • Industry: Retail REITs
  • Sector: Real Estate
  • Implied Market Cap: CA$311.024m
  • Market Cap: CA$225.623m
  • Listing Market Cap: CA$228.263m
  • Shares outstanding: 102.99m
  • 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 March 31, 2020 includes interests in 272 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 Analysis2020/06/02 05:27
End of Day Share Price2020/05/27 00:00
Earnings2020/03/31
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.