Plazacorp announces increased FFO with its year end results - Mar 1, 2012

Plazacorp announces increased FFO with its year end results

Mar 1, 2012

FREDERICTON, NB, March 1, 2012 /CNW/ - Plazacorp Retail Properties Ltd. (TSXV: PLZ) 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:

 
(000's - except per share amounts and debt coverage
ratios)
3 Months
Ended
December 31,
2011
(unaudited)
3 Months
Ended
December 31,
30, 2010
(unaudited)
12 Months
Ended
December 31,
2011
 
12 Months
Ended
December 31,
2010
 
         
Profit (loss) for the period attributable to shareholders $ 7,911 $ (163) $ 28,114 $ 22,593
Add (deduct):                
(Gain) loss on disposal of investment properties   3   (38)   3   87
Deferred income tax expense   2,829   1,840   10,349   8,526
Fair value adjustment to investment properties   (8,385)   (2,199)   (23,864)   (23,238)
Fair value adjustment to investments   (1,762)   (1,280)   (3,759)   (3,683)
Fair value adjustment to convertible debentures   3,088   5,671   2,744   7,875
Net revaluation of interest rate swaps   165   (180)   363   43
Non-controlling interest adjustment   (198)   (249)   103   720
Basic FFO   3,651   3,402   14,053   12,923
Adjustment for debenture issuance costs   -   -   -   565
Basic FFO - adjusted $ 3,651 $ 3,402 $ 14,053 $ 13,488
Interest on dilutive convertible debentures   -   -   -   2,114
Diluted FFO $ 3,651 $ 3,402 $ 14,053 $ 15,602
Basic Weighted Average Shares Outstanding   59,716   49,835   53,394   49,540
Diluted Weighted Average Shares Outstanding   59,716   49,841   53,394   58,298
Basic FFO - adjusted per share $ 0.061 $ 0.068 $ 0.263 $ 0.272
Diluted FFO - adjusted per share $ 0.061 $ 0.068 $ 0.263 $ 0.268
         
Debt coverage ratios                
Interest coverage ratio 1.9 times 1.9 times 1.9 times 1.9 times
Debt service coverage ratio 1.5 times 1.5 times 1.5 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 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. 

 

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