Plazacorp announces 18.7% increase in FFO with its quarter end results
May 07 2012 - 4:27PM
PR Newswire (Canada)
FREDERICTON, May 10, 2012 /CNW/ - Plazacorp Retail Properties Ltd.
today announced its results for the quarter ended March 31, 2012.
For the quarter ended March 31, 2012, Plazacorp reported funds from
operations ("FFO") of $3.8 million, an increase of 18.7% over the
same period in the prior year. FFO per share was $0.064 for
the three months ended March 31, 2012 ($0.064 per share diluted),
consistent with the same period in the prior year. FFO was
positively impacted by growth in net property operating income,
savings in one-time administrative costs incurred in 2011 and a
decrease in financing costs, partly offset by the net effects of
the internalization of property and corporate management. FFO
per share was impacted by an 18.9% increase in the weighted average
shares outstanding. Michael Zakuta, Plazacorp's President and CEO
said, "We are very pleased with the financial results for the
quarter. Plazacorp has strengthened its balance sheet as our
ratio of debt to asset value has decreased to 44.6%. The strong
growth in FFO is a confirmation of our business strategy that is
based on creating value for our shareholders by developing high
quality retail projects leased to national retailers and financing
these projects with long term fixed rate financing for terms of ten
years or more." Profit for the quarter ended March 31, 2012 was
$14.7 million compared to $6.9 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, net of deferred taxes on those amounts, as well as the
same factors described above affecting FFO. Plazacorp's summary of
FFO is presented below: 3 Months 3 Months Ended Ended (000s -
except per share amounts and debt March 31, March 31, coverage 2012
2011 ratios) (unaudited) (unaudited) Profit for the period
attributable to shareholders $ 14,192 $ 6,382 Add (deduct): Gain on
disposal of land (8) - Deferred income tax expense 4,444 2,511 Fair
value adjustment to investment properties (13,361) (6,406) Fair
value adjustment to investments (1,610) (982) Fair value adjustment
to convertible debentures (79) 1,446 Net revaluation of interest
rate swaps (110) (62) Non-controlling interest adjustment 340 320
Basic FFO $ 3,808 $ 3,209 Interest on dilutive convertible
debentures - - Diluted FFO $ 3,808 $ 3,209 Basic Weighted Average
Shares Outstanding 59,942 50,428 Diluted Weighted Average Shares
Outstanding 59,942 50,428 Basic FFO per share $ 0.064 $ 0.064
Diluted FFO per share $ 0.064 $ 0.064 Debt coverage ratios Interest
coverage ratio(1) 2.0 times 1.8 times Debt service coverage
ratio(2) 1.6 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 116
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: For more information 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) 460-8261
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