PLAZACORP ANNOUNCES CONTINUED PROFITABLE FIRST QUARTER RESULTS
June 14 2011 - 9:53AM
PR Newswire (Canada)
FREDERICTON, June 14, 2011 /CNW/ -- FREDERICTON, June 14, 2011
/CNW/ - Plazacorp Retail Properties Ltd. (TSXV: PLZ) today
announced its results for the quarter ended March 31, 2011.
These are the first transitional statements issued in accordance
with International Financial Reporting Standards ("IFRS").
Plazacorp reported funds from operations ("FFO") of $3.2 million
for the quarter ended March 31, 2011, an increase of 3.8% over the
same quarter for the prior year. FFO per share was $0.064 for the
quarter ended March 31, 2011 ($0.064 per share diluted) compared to
$0.063 per share for the quarter ended March 31, 2010 ($0.063 per
share diluted). The principal factors influencing FFO were:
-- Incremental net property operating income ("NOI") growth of $284
thousand earned by properties which were transferred from
properties under development to income producing status during 2010
and 2011. -- Same asset NOI growth of $149 thousand. -- An increase
in share of profit of associates and investment income (net of fair
value changes) of $172 thousand. -- An increase in financing costs
of $209 thousand mainly affected by the replacement of
floating-rate debt with long-term debt on new properties and new
debenture interest. -- An increase in administrative expenses of
$181 thousand mainly due to additional tax consulting and
professional fees relating to the potential conversion to a REIT
structure and IFRS-related work. If IFRS implementation costs and
costs incurred for the potential conversion to a REIT structure had
not occurred, FFO would have increased by 7.8% over the same period
in the prior year. Profit for the period was $6.9 million compared
to $1.8 million recorded for the same period in the prior
year. Profit was impacted by the same factors affecting FFO
as indicated above as well as: a fair value gain of investment
properties of $6.4 million compared to $0.9 million for the same
period in the prior year, as a result of a 48 basis point drop in
the weighted average capitalization rate; an increase in fair value
gain of investments of $584 thousand also resulting from the drop
in capitalization rates; and transaction costs incurred in the
prior year for the issuance of convertible debentures of $541
thousand. These were partly offset by an increase in deferred
taxes of $1.7 million mainly due to the increase in fair value gain
of investment properties mentioned above. Michael Zakuta,
Plazacorp's President and CEO said, "We are pleased with the
results for the quarter ended March 31, 2011. Currently we have 7
projects under development and 4 land assemblies in progress, which
upon completion will deliver stronger FFO going forward and
strengthen the quality of our portfolio." Plazacorp's summary of
FFO for the three months ended March 31, 2011, compared to the
three months ended March 31, 2010 is presented below: 3 Months 3
Months Ended Ended (000's - except per share amounts and debt March
31, March 31, coverage ratios) (unaudited) 2011 2010 Profit for the
period $ 6,382 $ 1,498 Add (deduct): Loss on disposal of investment
properties - 129 Deferred income tax expense 2,511 834 Fair value
adjustment to investment properties (6,406) (928) Fair value
adjustment to investments (982) (398) Fair value adjustment to
convertible debentures 1,446 1,312 Net revaluation of interest rate
swaps (62) - Non-controlling interest adjustment 320 103 Basic FFO
3,209 2,550 Adjustment for debenture issuance costs - 541 Basic FFO
- adjusted 3,209 3,091 Interest on dilutive convertible debentures
- - before income tax Diluted FFO - adjusted $ 3,209 $ 3,091 Basic
Weighted Average Shares Outstanding 50,428 49,242 Diluted Weighted
Average Shares Outstanding 50,428 49,255 Basic FFO - adjusted per
share $ 0.064 $ 0.063 Diluted FFO - adjusted per share $ 0.064 $
0.063 Debt coverage ratios Interest coverage ratios 1.8 times 1.8
times Debt service coverage ratio 1.5 times 1.5 times A copy of
Plazacorp's quarterly report can be found on the Corporation's web
site at www.plaza.ca or on SEDAR at www.sedar.com. Plazacorp Retail
Properties Ltd. is an owner of shopping malls and strip plazas
throughout Atlantic Canada, Quebec and Ontario. Plazacorp
owns interests in 112 properties comprising 5.1 million square feet
of retail real estate. CAUTIONARY STATEMENTS REGARDING FORWARD
LOOKING INFORMATION This news release contains forward looking
statements relating to our operations and the environment in which
we operate, which are based on our expectations, estimates,
forecasts and projections. These statements are not future
guarantees of future performance and involve risks and
uncertainties that are difficult to control or predict.
Therefore, actual outcomes and results may differ materially from
those expressed in these forward looking statements. Readers,
therefore, should not place undue reliance on any such forward
looking statements. Further, a forward looking statement
speaks only as of the date on which such statement is made.
We undertake no obligation to publicly update any such statement,
to reflect new information or the occurrence of future events or
circumstances, except for forward-looking information disclosed in
prior disclosures which, in light of intervening events, requires
further explanation to avoid being misleading. Neither the TSX
Venture Exchange nor its Regulation Services Provider (as that term
is defined in policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
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Plazacorp, visit our website atbr/ a
href="http://www.plaza.ca/"www.plaza.ca/abr/ Or contact:br/
Floriana Cipollone, Chief Financial Officer (416) 848-4583 or Kim
Sharpe, Director of Business Development at (506) 451-1826 /p
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