FREDERICTON,
March 5, 2013 /CNW/ - Plazacorp
Retail Properties Ltd. (TSXV: PLZ) today announced its results for
the year ended December 31, 2012.
Plazacorp reported funds from operations ("FFO")
of $16.2 million for the year ended
December 31, 2012, an increase of
15.6% over the same period in the prior year. FFO per share was
$0.264 for the year ended
December 31, 2012 ($0.264 per share diluted) compared to
$0.263 per share for the year ended
December 31, 2011 ($0.263 per share diluted). FFO was
positively impacted by growth in net property operating income 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.
For the quarter ended December 31, 2012, Plazacorp reported FFO of
$4.1 million, an increase of 12.7%
over the same period in the prior year. FFO per share was
$0.064 for the quarter ended
December 31, 2012 ($0.064 per share diluted) compared to
$0.061 per share for the quarter
ended December 31, 2011 ($0.061 per share diluted). Again, FFO was
positively impacted by growth in net property operating income and
a decrease in financing costs. These were partly offset by an
increase in current income taxes mainly from subsidiary
entities.
Michael Zakuta,
Plazacorp's President and CEO said, "We are pleased with the
financial results for the year. The company has continued to
execute on its strategy of creating value for our shareholders by
developing or acquiring high quality retail real estate in our
geographies, leased to national tenants. The growth in FFO
and our ability to continue increasing dividends to shareholders is
a reflection of the success of our strategy."
Profit for the year ended December 31, 2012 was $47.1 million compared to $28.9 million recorded for the prior year.
Profit was mainly impacted by non-cash fair value adjustments on
investment properties and investments 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
December 31,
2012
(unaudited) |
3 Months
Ended
December 31,
2011
(unaudited) |
12 Months
Ended
December 31,
2012 |
12 Months
Ended
December 31,
2011 |
|
Profit for the period
attributable to shareholders |
$ |
1,058 |
$ |
7,911 |
$ |
43,598 |
$ |
28,114 |
Add (deduct): |
|
|
|
|
|
|
|
|
Loss on disposal of surplus
land |
|
51 |
|
3 |
|
43 |
|
3 |
Deferred income tax expense |
|
(72) |
|
2,829 |
|
13,176 |
|
10,349 |
Fair value adjustment to
investment properties |
|
3,633 |
|
(8,385) |
|
(37,091) |
|
(23,864) |
Fair value adjustment to
investments |
|
(2,701) |
|
(1,762) |
|
(7,485) |
|
(3,759) |
Fair value adjustment to
convertible debentures |
|
547 |
|
3,088 |
|
673 |
|
2,744 |
|
|
|
|
|
|
|
|
|
Tax on disposals of investment
properties and investment properties included in investments |
|
835 |
|
- |
|
835 |
|
- |
Net revaluation of interest rate
swaps |
|
(27) |
|
165 |
|
(48) |
|
363 |
Non-controlling interest
adjustment |
|
789 |
|
(198) |
|
2,542 |
|
103 |
Basic FFO |
$ |
4,113 |
$ |
3,651 |
$ |
16,243 |
$ |
14,053 |
Interest on dilutive convertible
debentures |
|
- |
|
- |
|
- |
|
- |
Diluted FFO |
$ |
4,113 |
$ |
3,651 |
$ |
16,243 |
$ |
14,053 |
Basic Weighted Average Shares
Outstanding |
|
63,833 |
|
59,716 |
|
61,447 |
|
53,394 |
Diluted Weighted Average Shares
Outstanding |
|
63,833 |
|
59,716 |
|
61,447 |
|
53,394 |
Basic and diluted FFO per
share |
$ |
0.064 |
$ |
0.061 |
$ |
0.264 |
$ |
0.263 |
|
Debt coverage ratios |
|
|
|
|
|
|
|
|
Interest coverage ratio |
|
2.1 times |
|
1.9 times |
|
2.1 times |
|
1.9 times |
Debt service coverage ratio |
|
1.7 times |
|
1.5 times |
|
1.7 times |
|
1.5 times |
A copy of Plazacorp's annual report can be found
on the Company'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 5.2 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.