PLZ Plazacorp Retail Properties Ltd.

FREDERICTON, NB, March 1, 2012 /CNW/ - Plazacorp Retail Properties Ltd. today announced its results for the year ended December 31, 2011. For the quarter ended December 31, 2011, Plazacorp reported funds from operations ("FFO") of $3.7 million, an increase of 7.3% over the same period in the prior year.  FFO per share was $0.061 for the three months ended December 31, 2011 ($0.061 per share diluted) compared to $0.068 per share for the three months ended December 31, 2010 ($0.068 per share diluted).  FFO was positively impacted by growth in net property operating income (net of financing costs), partly offset by the net effects of the internalization of property and corporate management as well as one-time administrative costs incurred.  The per share numbers were also impacted by the equity raise completed at the end of September. Plazacorp reported FFO of $14.1 million for the year ended December 31, 2011, an increase of 4.2% over the same period in the prior year. FFO per share was $0.263 for the year ended December 31, 2011 ($0.263 per share diluted) compared to $0.272 per share for the year ended December 31, 2010 ($0.268 per share diluted). Michael Zakuta, Plazacorp's President and CEO said, "We are pleased with the financial results for the year. The company has continued to grow and improve the quality of its portfolio, as reflected in its ability to continue increasing dividends to shareholders. We are also pleased with our other major accomplishments during the year: 1) internalizing property and corporate management; and 2) significantly improving our balance sheet with the completion of our first public equity raise. Plazacorp`s debt to gross book value ratio has now decreased from 52% to 46%." Profit for the year ended December 31, 2011 was $28.9 million compared to $24.1 million recorded for the prior year. For the quarter ended December 31, 2011, Plazacorp reported profit of $7.9 million compared to a loss of $195 thousand for the same period in the prior year. Profit was mainly impacted by the increase in FFO as well as non-cash fair value adjustments on investment properties and convertible debentures, net of deferred taxes on those amounts. Plazacorp's summary of FFO is presented below: 3 Months 3 Months 12 Months 12 Months (000's - except per Ended Ended Ended Ended share amounts and December 31, December 31, December 31, December 31, debt coverage 2011 30, 2010 2011 2010 ratios) (unaudited) (unaudited) Profit (loss) for $ 7,911 $ (163) $ 28,114 $ 22,593 the period attributable to shareholders Add (deduct): (Gain) loss on 3 (38) 3 87 disposal of investment properties Deferred income tax 2,829 1,840 10,349 8,526 expense Fair value (8,385) (2,199) (23,864) (23,238) adjustment to investment properties Fair value (1,762) (1,280) (3,759) (3,683) adjustment to investments Fair value 3,088 5,671 2,744 7,875 adjustment to convertible debentures Net revaluation of 165 (180) 363 43 interest rate swaps Non-controlling (198) (249) 103 720 interest adjustment Basic FFO 3,651 3,402 14,053 12,923 Adjustment for - - - 565 debenture issuance costs Basic FFO - $ 3,651 $ 3,402 $ 14,053 $ 13,488 adjusted Interest on - - - 2,114 dilutive convertible debentures Diluted FFO $ 3,651 $ 3,402 $ 14,053 $ 15,602 Basic Weighted 59,716 49,835 53,394 49,540 Average Shares Outstanding Diluted Weighted 59,716 49,841 53,394 58,298 Average Shares Outstanding Basic FFO - $ 0.061 $ 0.068 $ 0.263 $ 0.272 adjusted per share Diluted FFO - $ 0.061 $ 0.068 $ 0.263 $ 0.268 adjusted per share Debt coverage ratios Interest coverage 1.9 times 1.9 times 1.9 times 1.9 times ratio Debt service 1.5 times 1.5 times 1.5 times 1.5 times coverage ratio 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 114 properties comprising 5.0 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: on Plazacorp, 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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