Plazacorp announces 17.8% increase in FFO with its quarter end results
12 August 2012 - 6:13PM
PR Newswire (Canada)
FREDERICTON, NB, Aug. 13, 2012 /CNW/ - Plazacorp Retail Properties
Ltd. today announced its results for the quarter ended June 30,
2012. For the six months ended June 30, 2012, Plazacorp reported
funds from operations ("FFO") of $7.9 million, an increase of 17.8%
over the same period in the prior year. FFO per share was
$0.131 for the six months ended June 30, 2012 ($0.131 per share
diluted), compared to $0.132 per share for the same period in the
prior year ($0.132 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. FFO per
share was impacted in the short term by an 18.7% increase in the
weighted average shares outstanding mainly due to the issuance of
shares through the equity raise in the third quarter of 2011, where
not all of the funds raised have been fully deployed yet on
accretive developments. Plazacorp reported FFO of $4.1 million for
the three months ended June 30, 2012, an increase of 17.0% over the
same period in the prior year. FFO per share was $0.067 for
the quarter ended June 30, 2012 ($0.067 per share diluted) compared
to $0.068 per share for the quarter ended June 30, 2011 ($0.068 per
share diluted). Michael Zakuta, Plazacorp's President and CEO said,
"We are very pleased with the financial results for the
quarter. Plazacorp continues to strengthen its balance sheet
as our debt to asset value is now at 43.6%. The strong 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 six months ended June 30, 2012 was $31.7
million compared to $15.2 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 6 Months 6 Months (000s -
except per Ended Ended Ended Ended share amounts and June 30, June
30, June 30, June 30, debt coverage 2012 2011 2012 2011 ratios)
(unaudited) (unaudited) (unaudited) (unaudited) Profit for the
period attributable to shareholders $ 15,855 $ 8,168 $ 30,047 $
14,550 Add (deduct): Gain on disposal of land - - (8) - Deferred
income tax expense 4,846 4,009 9,290 6,520 Fair value adjustment to
investment properties (15,066) (9,162) (28,427) (15,568) Fair value
adjustment to investments (2,825) (1,345) (4,435) (2,327) Fair
value adjustment to convertible debentures 258 1,766 179 3,212 Net
revaluation of interest rate swaps 99 71 (11) 9 Non-controlling
interest adjustment 910 (23) 1,250 297 Basic and diluted FFO $
4,077 $ 3,484 $ 7,885 $ 6,693 Basic Weighted Average Shares
Outstanding 60,449 51,013 60,196 50,722 Diluted Weighted Average
Shares Outstanding 60,449 51,014 60,196 50,723 Basic and diluted
FFO per share $ 0.067 $ 0.068 $ 0.131 $ 0.132 Debt coverage ratios
Interest coverage ratio 2.1 times 1.9 times 2.0 times 1.8 times
Debt service coverage ratio 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. 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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