Plaza Centers N.V. Interim Management Statement (9546F)
May 31 2013 - 3:00AM
UK Regulatory
TIDMPLAZ
RNS Number : 9546F
Plaza Centers N.V.
31 May 2013
31 May 2013
PLAZA CENTERS N.V.
FIRST QUARTER INTERIM MANAGEMENT STATEMENT
- ONGOING PROGRESS IN 2013 -
Plaza Centers N.V. ("Plaza" / "Company" / "Group"), a leading
emerging markets property developer, today announces its interim
management statement relating to the period from 1 January 2013 to
31 March 2013, and includes an update to the date of the
publication of this report ("the Period").
Material events which occurred during the first quarter of 2013
were outlined in the Company's 2012 annual report which was
published on 30 April 2013. This can be found at:
http://edg1.precisionir.com/IR/EU016839-5/HTML2/default.htm
(primarily on pages 32-41 (President and Chief Executive Officer's
statement) and on page 125 (Events after the reporting period -
note 38)).
-- Centre Occupancy: Continuing the ongoing successful trend,
the occupancy level of the Group's operating CEE shopping centres
increased to circa 90% in the first quarter of 2013
o The highest increase in occupancy was achieved at Zgorzelec
Plaza (Poland), where the recent additions of the cinema complex
(Multikino) and an electronics anchor tenant (Mediaexpert) has
increased occupancy by 20% to 90% when compared to the
corresponding period of last year.
o A circa 10% increase in occupancy levels compared to the same
period last year was also achieved at both Riga Plaza (Latvia) and
Kragujevac Plaza (Serbia).
-- Centre Footfall: Since the beginning of 2013, all of the
Group's operating shopping centres have shown a sustained increase
in footfall compared to the same period last year. The most notable
increases were seen at Zgorzelec Plaza and Torun Plaza (Poland) in
April 2013, with an improvement in centre footfall of 21% (at both
centres) compared to April 2012.
-- Centre Turnover: This period has demonstrated stable growth both on a cumulative basis and month-on-month basis compared to the same period last year. The highest increase in sales on cumulative basis was achieved at Riga Plaza, with 18% growth in January - April 2013 compared to the same period of 2012, followed by Torun Plaza with 16%, Zgorzelec Plaza with 15%, and Liberec (Czech Republic) with 11%.
-- Transactions: As stated in the Company's announcement on 29
May 2013, Plaza has successfully completed the sale of its 50%
interest in a vehicle which mainly holds interests in an office
complex project located in Pune, India. The transaction valued the
assets collectively at EUR33.4 million and, as a result, Plaza
received gross cash proceeds of circa EUR16.7 million in line with
its holding. The transaction represents the Company's first exit in
India.
-- Finance: A wholly owned subsidiary of Plaza previously
entered into a loan facility with a commercial bank, secured by
Plaza bonds which the facility was used to repurchase, with a
scheduled loan repayment of July and September 2013. Due to a
rating event, Plaza negotiated and concluded an early repayment of
the loan during the period. The loan balance, including accrued
interest, was circa NIS 77.5 million (circa EUR16.3 million). The
early repayment is expected to reduce Plaza's interest expenses for
2013 by circa US$300,000 (approximately EUR 230,000). The early
repayment was financed mainly by NIS 45.5 million of proceeds
resulting from the sale of some of the loan's collateral (reselling
the previously repurchased bonds) and by Plaza's liquid balances.
As of today, Plaza, through its wholly owned subsidiary holds in
treasury circa 25 million and 99 millions par value of series A and
B bonds, respectively.
Ran Shtarkman, President and Chief Executive Officer of Plaza
Centers N.V., said:
"Despite the challenging economic and consumer environment we
currently find ourselves in, we have continued the improvements at
the operational level of the business that we reported in our full
year 2012 results by improving occupancy, footfall and turnover at
our operating assets. We have been able to improve these three
vital metrics of centre performance as a result of our relentless
focus on creating "destination and experience-led" shopping. For
us, this means securing the optimal blend between a vibrant tenant
mix of quality retailers and attractive entertainment options for
shoppers coupled with creating and hosting dynamic events at our
centres to drive footfall.
"We also secured our first exit in India, in line with our
disposal programme to secure realisations for the Company as we
look to recycle capital from stabilized completed projects and
non-core assets both in CEE and India, allowing us to reduce
leverage."
For further details please contact:
Plaza
Ran Shtarkman, President and CEO +36 1 462 7221
Roy Linden, CFO +36 1 462 7222
FTI Consulting
Stephanie Highett/Daniel O'Donnell +44 20 7831 3113
Forward-looking statements
This press release may contain forward-looking statements with
respect to Plaza Centers N.V. future (financial) performance and
position. Such statements are based on current expectations,
estimates and projections of Plaza Centers N.V. and information
currently available to the company. Plaza Centers N.V. cautions
readers that such statements involve certain risks and
uncertainties that are difficult to predict and therefore it should
be understood that many factors can cause actual performance and
position to differ materially from these statements. Plaza Centers
N.V. has no obligation to update the statements contained in this
press release, unless required by law.
About Plaza Centers
Plaza Centers N.V. (www.plazacenters.com) is a leading emerging
markets developer of shopping and entertainment centres. It focuses
on constructing new centres and, where there is significant
redevelopment potential, redeveloping existing centres in both
capital cities and important regional centres. The Company is dual
listed on the Main Board of the London Stock Exchange and, as of 19
October 2007, on the Warsaw Stock Exchange (LSE:"PLAZ", WSE:
"PLZ/PLAZACNTR"). Plaza Centers N.V. is an indirect subsidiary of
Elbit Imaging Ltd. ("EI"), an Israeli public company whose shares
are traded on both the Tel Aviv Stock Exchange in Israel and on the
NASDAQ Global Market in the United States.
Plaza Centers is a member of the Europe Israel Group of
companies which is controlled by its founder, Mr Mordechay Zisser.
It has been active in real estate development in emerging markets
for over 17 years.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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