Plazacorp announces 2012 dividend increase and 2011 third quarter results
November 07 2011 - 10:41PM
PR Newswire (Canada)
FREDERICTON, Nov. 8, 2011 /CNW/ - Plazacorp Retail Properties Ltd.
today announced that its Board of Directors has approved the 2012
annual dividend increase to $0.215 per share, representing a 6.2%
increase from a year earlier. This is the second increase in
the last six months. The Board previously approved an
increase to $0.21 per share effective August 2011. In
addition, the Company announced its results for the quarter ended
September 30, 2011. The increased dividend will be effective for
the regularly scheduled dividend payment dates for 2012 that are
expected to be February 15, May 15, August 15, and November 15 in
the amount of 5.375 cents per common share at each payment date,
subject to Board approval at that time. For the quarter ended
September 30, 2011, Plazacorp reported funds from operations
("FFO") of $3.7 million, consistent with the same period in the
prior year. FFO per share was $0.071 for the three months
ended September 30, 2011 ($0.071 per share diluted) compared to
$0.075 per share for the three months ended September 30, 2010
($0.074 per share diluted). FFO was buoyed by growth in net
property operating income (net of financing expense), offset by the
effects of the internalization on FFO, as well as one-time
administrative costs and one-time costs on mortgages
defeased. The per share numbers were also impacted by the
$27.7 million equity raise completed at the end of September.
Plazacorp reported FFO of $10.4 million for the nine months ended
September 30, 2011, an increase of 3.1% over the same period for
the prior year. FFO per share was $0.203 for the nine months ended
September 30, 2011 ($0.203 per share diluted) compared to $0.204
per share for the nine months ended September 30, 2010 ($0.204 per
share diluted). Plazacorp completed a bought deal public equity
offering of 6.6 million common shares at a price of $4.20 per
common share to a syndicate of underwriters, for gross proceeds of
$27.7 million (net proceeds of $26.2 million). The offering
closed on September 27, 2011. Proceeds were used to repay
debt and will be used for developments and redevelopments over the
next 12 to 18 months. Subsequent to quarter end, the underwriters
exercised in full their over-allotment option of 990 thousand
common shares at a price of $4.20 per common share, for gross
proceeds to the Company of $4.2 million (net proceeds of $4.0
million). During the quarter, Plazacorp also completed the
internalization of its property management and corporate management
functions through the purchase of the shares of Plaza Group
Management Limited at book value of $113 thousand. Michael Zakuta,
Plazacorp's President and CEO said, "The dividend increase
represents the tenth increase over a nine year period. Our
track record of dividend increases confirms our ability to grow the
business and deliver results to our shareholders. We are also
pleased with the financial results for the quarter ended September
30, 2011 and our other accomplishments of completing our first
public equity raise and internalizing." Profit for the nine months
ended September 30, 2011 was $21.0 million compared to $24.3
million recorded for the same period in the prior year.
Profit was mainly impacted by non-cash fair value adjustments on
investment properties and convertible debentures. For the
quarter ended September 30, 2011, Plazacorp reported profit of $5.8
million compared to $8.2 million for the same period in the prior
year. Plazacorp's summary of FFO is presented below: (000's -
except per shareamounts and 3 Months 3 Months 9Months 9 Months debt
coverage Ended Ended Ended Ended ratios) September30, September 30,
September 30, September 30, (unaudited) 2011 2010 2011 2010 Profit
for the period attributable to shareholders $ 5,653 $ 7,952 $
20,203 $ 22,756 Add (deduct): Loss on disposal of investment
properties - - - 125 Deferred income tax expense 1,000 2,173 7,520
6,686 Fair value adjustment to investment properties 89 (6,252)
(15,479) (21,039) Fair value adjustment to investments 330 (657)
(1,997) (2,403) Fair value adjustment to convertible debentures
(3,556) 248 (344) 2,204 Net revaluation of interest rate swaps 189
223 198 223 Non-controlling interest adjustment 4 15 301 969 Basic
FFO 3,709 3,702 10,402 9,521 Adjustment for debenture issuance
costs - - - 565 Basic FFO - adjusted $ 3,709 $ 3,702 $10,402 $
10,086 Interest on dilutive convertible debentures 229 718 - -
Diluted FFO $ 3,938 $ 4,420 $ 10,402 $ 10,086 Basic Weighted
Average Shares Outstanding 52,341 49,611 51,253 49,440 Diluted
Weighted Average Shares Outstanding 55,718 59,882 51,253 49,444
Basic FFO - adjusted per share $ 0.071 $ 0.075 $ 0.203 $ 0.204
Diluted FFO - adjusted per share $ 0.071 $ 0.074 $ 0.203 $ 0.204
Debt coverage ratios Interest coverage ratio (1) 1.8 times 1.9
times 1.8 times 1.8 times Debt service coverage ratio (2) 1.5 times
1.6 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. PLAZACORP RETAIL
PROPERTIES LTD. CONTACT: visit our website atwww.plaza.caOr
contact:Floriana Cipollone, Chief Financial Officer (416) 848-4583
or KimSharpe, Director of Business Development at (506) 451-1826
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