Plazacorp announces strong second quarter results
August 22 2011 - 12:35PM
PR Newswire (Canada)
FREDERICTON, NB, Aug. 22, 2011 /CNW/ -- FREDERICTON, NB, Aug. 22,
2011 /CNW/ - Plazacorp Retail Properties Ltd. (TSXV: PLZ) today
announced its results for the quarter ended June 30, 2011. For the
quarter ended June 30, 2011, Plazacorp reported FFO of $3.5
million, an increase of 11.3% over the same period in the prior
year. FFO per share was $0.068 for the three months ended June
30, 2011 ($0.068 per share diluted) compared to $0.063 per share
for the three months ended June 30, 2010 ($0.063 per share
diluted). Plazacorp reported funds from operations ("FFO") of $6.7
million for the six months ended June 30, 2011, an increase of 4.8%
over the same period for the prior year. FFO per share was $0.132
for the six months ended June 30, 2011 ($0.132 per share diluted)
compared to $0.129 per share for the six months ended June 30, 2010
($0.129 per share diluted). If one-time IFRS implementation costs
and costs incurred for the potential conversion to a REIT structure
had not occurred, FFO would have increased by 8.3% for the six
months ended June 30, 2011 and 14.3% for the three months ended
June 30, 2011, over the same periods respectively in the prior
year. Subsequent to quarter end, Plazacorp completed the
internalization of its property management and corporate management
through the purchase of the shares of Plaza Group Management
Limited at book value of approximately $120 thousand. Michael
Zakuta, Plazacorp's President and CEO said, "We are pleased with
the strong financial results for the quarter ended June 30,
2011. Currently we have 9 projects under development and 4
land assemblies in progress, which upon completion will deliver
growth in our FFO. We are pleased to report that we completed
the internalization of our property and corporate management which
will increase cash flows and which led to a mid-year increase in
our annual dividend per share from 20.25¢ to 21.00¢." Profit for
the six months ended June 30, 2011 was $15.2 million compared to
$16.2 million recorded for the same period in the prior
year. Profit was impacted by: the increase in FFO; a fair
value gain on investment properties of $15.6 million compared to
$14.8 million for the same period in the prior year; and
transaction costs incurred in the prior year for the issuance of
convertible debentures of $565 thousand. These were more than
offset by: an increase in deferred taxes of $2.0 million mainly due
to the increase in fair value gain on investment properties
mentioned above; and an increase in net loss from fair value
adjustments to convertible debentures of $1.3 million. For the
quarter ended June 30, 2011, Plazacorp reported profit of $8.3
million compared to $14.4 million for the same period in the prior
year. Profit was mainly impacted by the fair value gain on
investment properties of $9.2 million compared to $13.9 million for
the same period in the prior year, and an increase in the net loss
from fair value adjustments to convertible debentures of $1.1
million. Plazacorp's summary of FFO is presented below: (000's -
except per share 3 Months 3 Months 6 Months 6 Months amounts and
Ended Ended Ended Ended debt coverage ratios) June 30, June 30,
June 30, June 30, (unaudited) 2011 2010 2011 2010 Profit for the
period $ 8,168 $ 13,306 $ 14,550 $ 14,804 attributable to
shareholders Add (deduct): Loss (gain) on disposal of - (4) - 125
investment properties Deferred income tax expense 4,009 3,679 6,520
4,513 Fair value adjustment to (9,162) (13,859) (15,568) (14,787)
investment properties Fair value adjustment to (1,345) (1,511)
(2,327) (1,746) investments Fair value adjustment to 1,766 644
3,212 1,956 convertible debentures Net revaluation of interest 71 -
9 - rate swaps Non-controlling interest (23) 851 297 954 adjustment
Basic FFO 3,484 3,106 6,693 5,819 Adjustment for debenture - 24 -
565 issuance costs Basic and diluted FFO - 3,484 3,130 6,693 6,384
adjusted Basic Weighted Average Shares 51,013 49,463 50,722 49,353
Outstanding Diluted Weighted Average Shares 51,014 49,475 50,723
49,364 Outstanding Basic and diluted FFO - $ 0.068 $ 0.063 $ 0.132
$ 0.129 adjusted per share Debt coverage ratios Interest coverage
ratio 1.9 times 1.8 times 1.8 times 1.8 times Debt service coverage
ratio 1.5 times 1.5 times 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. To view this news
release in HTML formatting, please use the following URL:
http://www.cnw.ca/en/releases/archive/August2011/22/c5313.html p
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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