Monthly Dividend Stock In Focus: Plaza Retail REIT

Published on February 19th, 2026 by Bob Ciura

Monthly dividend stocks have instant appeal for many income investors. Stocks that pay their dividends each month offer more frequent payouts than traditional quarterly or semi-annual dividend payers.

For this reason, we created a full list of over 100 monthly dividend stocks.

You can download our full Excel spreadsheet of all monthly dividend stocks (along with metrics that matter like dividend yields and payout ratios) by clicking on the link below:

Monthly Dividend Stock In Focus: Plaza Retail REIT

Plaza Retail REIT (PAZRF) is a monthly dividend stock with a high yield. This potentially makes the stock more attractive for income investors looking for more frequent dividend payouts.

This article will analyze Plaza Retail REIT in greater detail.

Business Overview

Plaza Retail REIT is a Canadian open-ended retail real estate investment trust focused on the ownership, development, redevelopment, and management of essential-needs, convenience, and value-oriented retail properties across Canada, with a core concentration in Ontario, Quebec, and Atlantic Canada.

As of September 30th, 2025, the Trust had interests in 197 properties totaling 8.8 million square feet of gross leasable area, predominantly open-air centers and single-use retail assets leased primarily to national tenants.

The portfolio has very high occupancy (97.5% same-asset committed), long average lease terms, and strong exposure to grocery, pharmacy, and every day-needs retailers. Plaza Retail posted $86.6 million in revenues last year.

On November 12th, 2025, Plaza Retail REIT reported its Q3 results for the quarter ended September 30th, 2025. Rental revenue was $22.8 million, up about 4% year over year, driven by rent escalations, leasing activity, and contributions from developments and properties transferred to income-producing status.

Net property operating income increased to $14.7 million, supported by 1.7% same-asset NOI growth and same-asset committed occupancy of 97.5%, up 60 basis points year over year. Below the operating line, higher leasing and maintenance capital expenditures related to asset optimization weighed on cash flow.

As a result, AFFO declined 10% year over year, with AFFO per share of about $0.055, despite continued strength in underlying property operations. For FY2025, we see AFFO per share of $0.20.

Growth Prospects

Plaza Retail REIT has posted relatively stable AFFO per share over the past decade. Plaza supported modest AFFO growth through same-asset NOI increases from leasing rent escalations, high occupancy, and contributions from developments and redevelopments transferred to income-producing status.

But this was tempered by periodic equity issuances to fund growth, which expanded the unit count and exerted dilution pressure on per-unit metrics.

The pandemic period (2020) saw softness in cash flow related to transitional leasing and market conditions, with operating performance resilient but AFFO per unit still pressured by ongoing expenses and capital requirements.

Post pandemic, Plaza again delivered same-asset NOI growth and stabilized occupancy, supported by rent escalations and developments reaching stabilized NOI, but these gains were frequently offset by higher maintenance and leasing costs, and a weaker CAD against USD.

More recently, from 2022–2024, AFFO per share trends remained subdued as incremental NOI gains from leasing and development absorption were largely offset by higher operating expenses, expanded administrative costs, and interest costs, as well as the impact of unit issuances in prior periods.

While property performance and occupancy remained strong, the ongoing capital intensity of optimizing retail assets limited growth on a per-unit basis.

Moving forward, we see no growth in AFFO per share because incremental NOI from rent escalations and development completions is likely to be offset by elevated maintenance and leasing capital requirements, high payout levels.

We also forecast no growth in the dividend, which the company has maintained at C$0.0233 per month since 2018, when the most recent hike took place.

Dividend & Valuation Analysis

Plaza Retail REIT has a somewhat short history trading in its OTC listing. During this period, its P/AFFO has hovered in the high-single digits to low-teens.

Today, the multiple has expanded to a richer 15.3x AFFO. We believe this multiple likely overvalues the stock given the lack of meaningful growth. We have set our fair multiple at a more reasonable 13.0x.

A declining P/FFO ratio could reduce annual returns by 3.2% per year over the next five years.

In the meantime, the stock offers a dividend yield of 6.5%, below the average of its more recent years. However, with a 2025 expected dividend payout ratio of 100%, the dividend is not sufficiently covered and could be at risk of a future cut, particularly in a recession.

Including no expected FFO growth, total returns are estimated at 3.3% per year going forward.

Final Thoughts

Plaza Retail REIT offers resilient, necessity-based retail assets and a proven record of maintaining its distribution, but high payout ratios and capital intensity should constrain long-term AFFO per unit growth.

Moving forward, we forecast annualized returns of just 3.3%, as returns from the dividend could be offset by a valuation headwind.

Because of that and the lack of dividend growth, we rate the stock a sell.