− 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.
About Plaza
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.
Forward-looking Information
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