What is your opinion of PLZ.UN?
Thank you
PLZ.UN is an open-end Canadian REIT whose portfolio largely consists of open-air centres and stand-alone small box retail outlets and is predominantly occupied by national tenants. Due to the retail strategy of the REIT there are is the potential secular headwind of increased online shopping and recession risk. FFO per unit and AFFO per unit did decline by 5.7% and 9.3% respectively for the full year 2023 primarily due to increased costs. Same-asset NOI did increase 1.1% for the full year 2023. Debt is high at $502.5M net debt. We think it is a slightly risky REIT play due to size and debt but the movement of rates will be a big factor in improved performance. It is priced well at 9X cash flow. We would consider it 'OK' as part of a basket of higher risk income names, but not overly attractive as a single holding.