Good morning. I would like to welcome everyone to the Plaza REIT Third Quarter 2024 Earnings Conference Call. At this time, all participants are in listen-only mode. Following the presentation, we will conduct a question-and-answer session. Instruction will be provided at that time for you to queue up for questions. If anyone has any difficulties hearing the conference, please press star zero for operator assistance at any time. I would like to advise everyone that this conference is being recorded. I will now turn the conference over to Kim Strange, Plaza's General Counsel and Secretary. Please go ahead, Ms. Strange.
Thank you, Operator. Good morning, everyone, and thank you for joining us on our Q3 2024 Results Conference Call. Before we begin, we are obliged to advise you that in talking about our financial and operating performance and in responding to questions today, we may make forward-looking statements, including statements concerning Plaza's objectives and strategies to achieve them, as well as statements with respect to our future plans, estimates, and intentions, or concerning anticipated future events, results, circumstances, or performance that are not historical facts. These statements are based on our current expectations and assumptions and are subject to risks and uncertainties that could cause our actual results to differ materially from the conclusions in these forward-looking statements.
Additional information on the risks that could impact our actual results and the expectations and assumptions we applied in making these forward-looking statements can be found in Plaza's most recent Annual Information Form for the year ended December 31st, 2023, and Management's Discussion and Analysis for the quarter ended September 30th, 2024, which are available on our website at www.plaza.ca and on SEDAR+ at www.sedarplus.ca. We will also refer to non-GAAP financial measures widely used in the Canadian real estate industry, including FFO, AFFO, NOI, and Same Asset NOI. Plaza believes these financial measures provide useful information to both management and investors in measuring the financial performance and financial condition of the trust. These financial measures do not have any standardized definitions prescribed by IFRS and may not be comparable to similar titled measures reported by other real estate investment trusts or entities.
They should be considered as supplemental in nature and not as a substitute for related financial information prepared in accordance with IFRS. For definitions of these financial measures and where to find reconciliations thereof, please refer to Part 7 of our MD&A for the third quarter ended September 30th, 2024, under the heading Explanation of Non-GAAP Measures. With that, I will turn the call over to Michael Zakuta, Plaza's President and CEO. Michael.
Thank you, Kim. Good morning. We appreciate you joining today as we review our financial performance and some other key metrics and achievements for the third quarter of 2024. Over the last few months, we have witnessed continued drops in bank prime rate. Inherently, this helps our business and will help make the overall REIT market a more attractive investment. Our portfolio is resilient and comprised of high-quality essential needs retailers who target non-discretionary spending. Fundamentals remain strong in the space in which we operate. I will now turn the call over to Jason, who will talk about our future prospects.
Thank you, Michael, and good morning. As we near the end of the year, I'm pleased to mention that the overall portfolio continues to demonstrate great operating metrics. Our occupancy rate remains stable, and leasing spreads continue to move in the right direction, averaging 9.2% for the average rate over the renewal term. Tenant demand continues to be a key driver in our success, and the geographic positioning of our asset mix is an advantage. So far this year, we diligently worked to renew roughly 700,000 sq ft and have secured approximately 200,000 sq ft of new leasing. This is a clear demonstration that the retail fundamentals in Canada remain a strong testament to our great properties and our team's hard work. In addition, barriers to entry for retail real estate remain high.
As such, we have been able to continually capitalize on this lack of supply through very healthy leasing spreads. Our open-air centers continue to demonstrate our strongest renewal spreads, which remain north of 10%. In addition, intensification opportunities have begun to materialize as retailers are coming face-to-face with supply issues. We are in the early days of assessing the benefit from said intensification, but nonetheless, the demand remains promising. These intensification opportunities include additional development square footage on excess land for which we never attributed any value. Additional opportunities include converting certain mop-up space to GLA, as well as other repositioning opportunities within the portfolio. For the quarter and year- to- date, our Same Asset NOI was 1.9% and 2.8%, respectively, which is a direct result of certain asset repositioning and strong leasing spreads.
Our capital recycling program for 2024 has essentially come to an end, with a handful of closings remaining between now and the end of the year. The overall goal and net effect of our capital recycling program is to increase the average size of our properties, reduce the average age of our assets, and improve the overall quality of the portfolio. Non-discretionary retailers are aggressive in seeking new opportunities, whether opening net new locations or expanding into bigger space when available. As mentioned last quarter, we are looking forward to launching the construction of a new development in the city of Welland, Ontario, anchored by a 35,000 sq ft grocery tenant, along with many other of our usual customers. This project is a great example of our team being able to identify a market which is undersupplied, assemble and entitle land, and deliver space to our tenants.
When finished, the project will have approximately 100,000 sq ft of retail space. Construction is set to begin shortly, and Plaza will retain a 50% interest in the project. Our teams are actively in the market searching for similar style developments where we can create value. As Plaza's focus has always been retail, we know it very well. We remain focused on being a best-in-class owner and operator of retail properties. We are the only publicly traded REIT offering investors access to pure play, essential needs, value, and convenience retail. I will now turn the call over to Jim Drake, our CFO.
Thank you, Jason. Good morning, everyone. I will expand on a few of Jason's comments and highlight our results. First, on operating results, total NOI for the quarter was up 6.5% over last year, driven by recently completed developments and strong Same Asset NOI growth. FFO for the quarter was consistent with last year, which is notable given the higher interest rate environment we have experienced. AFFO for the quarter was up 2% on a dollar basis and 1% on a per-unit basis on lower leasing costs this quarter. On the leasing front, we continue to maintain occupancy levels near record highs, with overall committed occupancy at 97.5%. Jason mentioned our lease renewal spreads at 8% overall for the first year of the renewal term, or 9.2% using the average rent over the renewal term.
This includes renewal spreads for open-air centers, the most significant portion of our portfolio, at 10.5% for the first year of the renewal, or 11.9% using the average rent over the renewal. On the balance sheet, our debt-to-assets ratio is consistent with last quarter at 51% excluding land leases. We have only $12 million of mortgages rolling for the remainder of this year and $39 million rolling in 2025, with weighted average rates of approximately 4%. Overall loan-to-values for these mortgages is 50%. Government of Canada bond yields have come off their highs, and we are seeing strong interest and attractive pricing on our debt offerings. For our fixed-rate mortgages, current market rates are about 5%. As Jason mentioned, we have been active under our capital recycling program.
Year- to- date, net sales prices for non-core assets have exceeded IFRS values by 9% at a weighted average cap rate of 5.8%. That capital recycling and our mortgage refinancing program have enhanced liquidity. We now have CAD 53 million of liquidity available from cash, operating line, and interim facilities, as well as CAD 10 million of unencumbered assets. Finally, for the fair value of our investment properties, we took a CAD 3.6 million write-down during the quarter on minor cap rate movement and a few updated appraisals. Our weighted average cap rate is now 6.86%. We continue to believe this is a very realistic valuation given the quality of our portfolio, especially in a lower interest rate environment. Those are the key points relating to the quarter. We will now open the lines for any questions. Operator.
Thank you. Ladies and gentlemen, we will now conduct a question-and-answer session. If you have a question, please press the star key followed by one on your touch-tone phone. You will hear a one-tone prompt acknowledging your request. Your question will be polled in the order they are received. If you would like to decline from the polling process, please press the pound key. Please ensure you lift the headset if you are using a speakerphone before pressing any keys. Our first question comes from the line of Mark Rothschild from Canaccord. Line is open.
Thanks, Sam. Good morning. Jason, you mentioned more opportunity in regards to intensification. Maybe a two-part question. One, is that maybe moving a little bit of shift away from new developments? There's such a big opportunity in intensification. And then development is often in areas where there's more residential development, home buildings, things like that. Do you see a slower pace of immigration leading to maybe less development over the next few years from you guys, or is that something that is not really a connection?
So I'll answer your second question first. So I think that housing shortages has far outpaced the amount of new homes that have been built. So I don't think that a drop in immigration will stall demand for retail properties, just given also the fact that retail properties take years to actually come to fruition and develop. And on your first question for the intensification, so these are opportunities within the portfolio where tenant demand has arisen as a result of, obviously, higher population and an increase in consumer demand. So it's approximately north of 100,000 sq ft at 100%, not multiplied by our share. So these are great opportunities within the portfolio where we've attributed essentially no value to the land, and these future intensifications can be funded with debt and be extremely accretive to the overall portfolio.
And maybe just one small follow-up on that from me. What type of returns? What's the range of what you think is achievable on that and over what time frame?
These are probably within the next one to three years, and the return would probably be at around an unlevered return of around 8%.
Perfect. Thanks so much. I'll turn it back.
Ladies and gentlemen, if there are any additional questions at this time, please press star followed by one. As a reminder, if you are using a speakerphone, please lift the handset before pressing the keys. Our next question comes from the line of Sumayya Syed from CIBC.
Thanks. Good morning. Just looking at your properties under development, that balance has been at the lowest. It's been in a while. What will it take for you to get back to a higher level of activity, or do you foresee it staying here at these levels in the near term?
I believe. Thanks for the question. So I believe as an opportunity-driven business, we chase opportunities which provide best returns for our unit holders. So at this moment in time, I think that the greenfield developments are providing less accretive investment opportunities for the business. And the fact that intensification within our capacity has been created within the portfolio, that is where the focus is going forward.
Okay. And then just on your same property growth, it's tracking pretty strong year- to- date, and I think it's above historical. Where do you see that trending into 2025?
Probably around the same levels, ± 25-50 basis points.
Thank you. And just lastly, a bit of a follow-up on this general leasing environment. How do you see the new leasing interest and tenant demand versus the recent path, and how do you think that translates into leasing spreads, and escalators and maybe even tenant turnover?
I suspect tenant turnover to be quite low, especially in the business that we operate in. Again, the push towards non-discretionary spend has been a great benefit to our business. In terms of tenant demand, we're seeing a lot of discount retailers searching to open net new stores. Dollarama announced last week they just opened their 1,600th store with a rigorous plan forward, and we see No Frills and Loblaw in the news every day pushing their discount banners, so that demand definitely exists, and with a lack of supply, it just helps our fundamentals.
Thank you. I'll turn it back.
Mr. Zakuta, there are no further questions at this time.
Thank you, Operator. As I conclude my final earnings call as President and CEO, I want to express my gratitude to our employees, unit holders, partners, and tenants who've supported Plaza and continue to do so to this day. It has truly been a privilege to lead this incredible team, and I am proud of all that we've accomplished together. While this marks the end of one chapter, I'm confident that the foundation we've built and the leadership team in place will continue to drive the company's success in the years to come. Thank you for your trust and for the opportunity to serve as your CEO. I look forward to watching the next phase of the company's journey unfold and remain excited for what lies ahead. I wish you all the best, and I'm optimistic about the future. Operator.