− 5% average increase in lease rates drives enhanced cash flow for the REIT −
FREDERICTON, Feb. 8, 2018 /CNW/ - Plaza Retail REIT (TSX: PLZ.UN) ("Plaza" or the "REIT") today announced it has finalized lease renewals on 150,000 square feet or 62 sites with its two primary KFC operators.
Stand-alone KFC restaurants are the REIT's second largest tenancy by rent, and make up approximately 218,000 square feet. These two KFC operators have 81 sites and represent 90% of Plaza's total KFC square footage. The renewals have an average rental increase in the first year of approximately 5% and an average lease term of approximately 7 years.
"We are very pleased to continue our relationships with these two KFC operators, whose stores contribute significantly to our portfolio," said Michael Zakuta, President and CEO.
In addition to these renewals, Plaza is planning (i) the immediate redevelopment of seven sites representing approximately 17,000 square feet, one for another national restaurant chain and the rest as new KFC stores for the two primary KFC operators; (ii) the immediate sale of three sites representing approximately 6,000 square feet, all of which are firm and awaiting closing; and (iii) the future redevelopment of nine sites representing approximately 22,000 square feet.
Plaza is an open-ended real estate investment trust and is a leading retail property owner and developer, particularly in Eastern Canada. Plaza's portfolio at September 30, 2017 includes interests in 295 properties totaling approximately 7.7 million square feet across Canada and additional lands held for development. Plaza's properties include a mix of strip plazas, stand-alone small box retail outlets and enclosed shopping centres, anchored by approximately 90% national tenants. For more information please visit www.plaza.ca.
This press release contains forward-looking statements, which can generally be identified by terms such as "planning", "awaiting" and other similar expressions or phrases that do not relate to historical facts. Forward looking statements in this press release include those which relate to Plaza's plan to redevelop the sites as described and the closing of the sale of the sites described. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Plaza to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements contained in this press release, including but not limited to those described in Plaza's Annual Information Form for the year ended December 31, 2016 and Management's Discussion and Analysis for the period ended September 30, 2017, which can both be obtained on SEDAR at www.sedar.com. Forward-looking statements are based on a number of expectations and assumptions made in light of management's experience and perceptions of historical trends and current conditions including that the redevelopments and sales will be completed. Although the forward-looking statements contained in this press release are based upon information currently available to management and what management believes are reasonable expectations and assumptions, there can be no assurances that forward-looking statements will prove to be accurate. Therefore, readers should not place undue reliance on forward-looking statements. All forward-looking statements speak only as of the date of this press release and Plaza undertakes no obligation to update such statements, except as required by law. These cautionary statements qualify all forward-looking statements contained in this press release.
SOURCE Plaza Retail REIT
For further information: Michael Zakuta, President and CEO, Tel: 514-457-0997; Floriana Cipollone, Chief Financial Officer, Tel: 416-848-4583