Plazacorp announces 10th consecutive annual dividend increase and
its quarter end results
FREDERICTON, NB, Nov. 12, 2012 /CNW/ - Plazacorp Retail Properties
Ltd. (TSXV:PLZ) today announced that its Board of Directors has
approved the 2013 annual dividend increase to $0.225 per share, representing a 4.7% increase
from the prior year. In addition, the Company announced its
results for the quarter ended September 30,
2012.
The increased dividend will be effective for the
regularly scheduled dividend payment dates for 2013 that are
expected to be February 15,
May 15, August
15, and November 15 in the
amount of 5.625 cents per common
share at each payment date, subject to Board approval at that
time.
For the nine months ended September 30, 2012, Plazacorp reported funds from
operations ("FFO") of $12.1 million
compared to $10.4 million for the
prior year. FFO per share was $0.200 for the nine months ended September 30, 2012 ($0.200 per share diluted), compared to
$0.203 per share for the same period
in the prior year ($0.203 per share
diluted). 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 that occurred effective July 1,
2011. FFO per share was impacted in the short term by
an 18.3% increase in the weighted average shares outstanding mainly
due to the issuance of shares through the equity raise in the third
quarter of 2011, the funds of which have been deployed on active
developments which have yet to move to income producing
status. Many of the Company's current developments are
larger-scale projects which take longer to become income
producing.
Plazacorp reported FFO of $4.2 million for the three months ended
September 30, 2012 compared to
$3.7 million for the prior
year. FFO per share was $0.069
for the quarter ended September 30,
2012 ($0.069 per share
diluted) compared to $0.071 per share
for the quarter ended September 30,
2011 ($0.071 per share
diluted). FFO was positively impacted by a decrease in
financing costs, partly offset by a decrease in net property
operating income. FFO per share was impacted by the same
factors affecting the year-to-date per share numbers.
Michael Zakuta, Plazacorp's
President and CEO said, "The dividend increase represents the
eleventh increase over a ten year period. Our track record of
dividend increases confirms our ability to grow the business and
deliver results to our shareholders. We are also very pleased
with the financial results for the quarter. The growth in FFO
continues to confirm 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 nine months ended September 30, 2012 was $44.9 million compared to $21.0 million recorded for the same period in the
prior year. Profit was mainly impacted by non-cash fair value
adjustments on investment properties as a result of decreases in
capitalization rates, 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:
|
(000s - except per share
amounts and debt coverage ratios)
|
3 Months
Ended
September 30,
2012
(unaudited) |
3 Months
Ended
September 30,
2011
(unaudited) |
9 Months
Ended
September 30,
2012
(unaudited) |
9 Months
Ended
September 30,
2011
(unaudited) |
|
|
|
|
|
Profit for the period
attributable to shareholders |
$ 12,493 |
$ 5,653 |
$ 42,540 |
$ 20,203 |
Add (deduct): |
|
|
|
|
Gain on disposal of surplus
land |
- |
- |
(8) |
- |
Deferred income tax expense |
3,958 |
1,000 |
13,248 |
7,520 |
Fair value adjustment to
investment properties |
(12,297) |
89 |
(40,724) |
(15,479) |
Fair value adjustment to
investments |
(349) |
330 |
(4,784) |
(1,997) |
Fair value adjustment to
convertible debentures |
(53) |
(3,556) |
126 |
(344) |
Net revaluation of interest rate
swaps |
(10) |
189 |
(21) |
198 |
Non-controlling interest
adjustment |
503 |
4 |
1,753 |
301 |
Basic FFO |
$ 4,245 |
$
3,709 |
$ 12,130 |
$ 10,402 |
Interest on dilutive convertible
debentures |
7 |
229 |
- |
- |
Diluted FFO |
$ 4,252 |
$
3,938 |
$ 12,130 |
$ 10,402 |
Basic Weighted Average Shares
Outstanding |
61,538 |
52,341 |
60,646 |
51,253 |
Diluted Weighted Average Shares
Outstanding |
61,639 |
55,718 |
60,646 |
51,253 |
Basic and diluted FFO per
share |
$ 0.069 |
$ 0.071 |
$
0.200 |
$ 0.203 |
|
|
|
|
|
Debt coverage ratios |
|
|
|
|
Interest coverage
ratio(1) |
2.1 times |
1.8 times |
2.1 times |
1.8 times |
Debt service coverage
ratio(2) |
1.7 times |
1.5 times |
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 118
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.
SOURCE PLAZACORP RETAIL PROPERTIES LTD.