PLAZACORP ANNOUNCES 5.19% DIVIDEND INCREASE AND THIRD QUARTER RESULTS - Nov 19, 2010

PLAZACORP ANNOUNCES 5.19% DIVIDEND INCREASE AND THIRD QUARTER RESULTS

Nov 19, 2010

FREDERICTON, NB, Nov. 19 /CNW/ - Plazacorp Retail Properties Ltd. (PLZ:TSX Venture) today announced that its Board of Directors have approved a 5.19% increase of their annual dividend payment from 19.25 cents to 20.25 cents per common share for 2011. In addition, the Company announced its results for the quarter ended September 30, 2010.

Michael Zakuta, Plazacorp's President and CEO, said, "This represents the eighth consecutive annual increase in the Plazacorp dividend. This track record of dividend increases is a strong confirmation of Plazacorp's ability to continue to grow and build a portfolio of stable high quality retail properties. We are pleased to be able to reward our shareholders and still maintain some of the lowest pay-out ratios in our industry." 

The increased dividend will be effective for the regularly scheduled dividend payment dates for 2011 that are expected to be February 14th, May 16th, August 15th, and November 14th in the amount of 5.0625 cents per common share at each payment date, subject to board approval at that time.

The Corporation reported funds from operations ("FFO") of $10.0 million for the nine months ended September 30, 2010, compared to $10.1 million for the nine months ended September 30, 2009. FFO per share was $0.202 ($0.202 diluted) for the nine months ended September 30, 2010 compared to $0.211 ($0.210 diluted) for the nine months ended September 30, 2009.

The Corporation reported funds from operations ("FFO") of $3.6 million for the three months ended September 30, 2010, representing a 0.8% decrease over $3.7 million for the three months ended September 30, 2009. FFO per share was $0.074 ($0.073 diluted) for the three months ended September 30, 2010 compared to $0.076 ($0.076 diluted) for the three months ended September 30, 2009.

Plazacorp's Summary of FFO for the three and nine months ended September 30, 2010, compared to the three and nine months ended September 30, 2009 is presented below:

         
(000's - except per share amounts)
(unaudited)
3 Months
Ended
September 30,
2010
3 Months
Ended
September 30,
2009
9 Months
Ended
September 30,
2010
9 Months
Ended
September 30,
2009
Total revenues $  13,410 $   12,530 $  39,550 $   36,676
         
Income before other comprehensive loss $       599 $        755 $    1,236 $     2,536
Add (deduct):        
Loss (gain) on disposal of income producing properties and surplus lands -   30 (16) (673)
Income tax expense 369 375 773 858
Amortization 2,623 2,558 7,889 7,450
Non-controlling interests 102 280 362 449
Interest costs 4,361 3,632 12,850 10,418
         
Earnings before interest, taxes, depreciation and amortization (EBITDA) 8,054 7,630 23,094 21,038
Add (deduct):        
Interest costs (4,361) (3,632) (12,850) (10,418)
Current income tax expense (10) (15) (32) (45)
Non-cash debenture interest 59 8 178 24
Non-controlling interest adjustment to FFO (220) (433) (782) (860)
Equity accounting adjustment to FFO 130 126 391 376
Corporate amortization (4) (5) (13) (13)
Basic FFO 3,648 3,679 9,986 10,102
Interest on dilutive convertible debentures before income tax 724 88 - 262
Diluted FFO $    4,372 $     3,767    9,986 $   10,364
Basic Weighted Average Shares Outstanding 49,611 48,251 49,440 47,956
Diluted Shares Outstanding 59,882 49,687 49,444 49,364
Basic FFO per share $    0.074 $     0.076 $    0.202 $     0.211
Diluted FFO per share $    0.073 $     0.076 $    0.202 $     0.210
         
         
         
Earnings before interest, taxes, depreciation and amortization $    8,054 $    7,630 $   23,094 $   21,038
Interest costs $    4,361 $    3,632 $   12,850 $   10,418
Periodic mortgage principal repayments 838 741 2,466 2,202
Total debt service $    5,199 $    4,373 $   15,316 $   12,620
Debt coverage ratios        
Interest coverage ratio 1.8 times 2.1 times 1.8 times 2.0 times
Debt service coverage ratio 1.5 times 1.7 times 1.5 times 1.7 times

A copy of Plazacorp's quarterly report can be found on the Corporation's web site at www.plaza.ca and can be found on 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 106 properties comprising 4.7 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.


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For further information:

on Plazacorp, visit our website at
www.plaza.ca
Or contact:
Floriana Cipollone, Chief Financial Officer (416) 848-4583 or Kim Sharpe, Director of Business Development at (506) 451-1826