Plazacorp announces third quarter financial results
Nov 28, 2007
FREDERICTON, NB, Nov. 28 /CNW/ - Plazacorp Retail Properties Ltd.
(PLZ:TSX Venture) today announced its results for the third quarter ended
September 30, 2007.
Michael Zakuta, Plazacorp's President and CEO, said, "We are pleased with
our financial results for the period ended September 30, 2007. Year to date
FFO is up 16.7%, but there was a decrease in the third quarter FFO for two
reasons: one time defeasance costs of $220 thousand for a property
refinancing; and the effect of first quarter property sales which decreased
FFO $180 thousand for the quarter. The refinancing and the sales were
strategic moves which generated additional capital of $6.4 million for
investment in new developments. Currently we have 18 projects under
development, which upon completion, will deliver stronger FFO going forward,
and strengthen the quality of our portfolio."
During the three months ended September 30, 2007, the Corporation grew
its portfolio by 2 properties from an interest in 83 properties with total
assets of $248 million to 85 properties with total assets of $262 million.
Subsequent to September 30, 2007 two additional properties were added to the
Company's portfolio for a total of 87 properties.
The Corporation reported funds from operations ("FFO") of
$0.176 per share ($0.172 per share diluted) for the nine months ended
September 30, 2007, representing an increase of 9% over the $0.161 per share
($0.153 per share diluted) for the nine months ended October 31, 2006.
The Corporation reported funds from operations ("FFO") of
$0.057 per share ($0.055 per share diluted) for the three months ended
September 30, 2007, representing a decrease of 8% from the $0.062 per share
($0.059 per share diluted) for the three months ended October 31, 2006.
Plazacorp's Summary of FFO for the three and nine months ended
September 30, 2007, compared to the three and nine months ended October 31,
2006 including the results of discontinued operations are presented below:-------------------------------------------------------------------------
(000's - except 3 Months 3 Months 9 Months 9 Months
per share Ended Ended Ended Ended
amounts) September 30, October 31, September 30, October 31,
2007 2006 2007 2006
For the Periods Ended
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Total revenues $ 10,321 $ 8,678 $ 29,993 $ 24,987
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Basic earnings
per share $ 0.016 $ 0.009 $ 0.090 $ 0.041
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Diluted earnings
per share $ 0.016 $ 0.009 $ 0.089 $ 0.041
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Net income $ 704 $ 378 $ 3,935 $ 1,688
Gain on disposals
of income
producing
properties and
surplus lands (831) (27) (3,619) (1,195)
Income tax expense 504 273 886 303
Income tax expense
(recovery) included
in income from
discontinued
operations (2) 55 10 139
Amortization 2,142 1,699 6,325 5,271
Amortization
included in income
from discontinued
operations - 118 85 368
Non-controlling
interests 90 78 260 180
Financing costs 3,389 2,578 9,112 7,446
Financing costs
included in income
from discontinued
operations - 158 115 477
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Earnings before
interest, taxes,
depreciation and
amortization
(EBITDA) 5,996 5,310 17,109 14,677
Less:
Financing costs (3,389) (2,736) (9,227) (7,923)
Current income tax
expense (10) (6) (15) (55)
Non-cash debenture
interest 12 24 52 66
Equity accounting
and non-controlling
interest
adjustments to FFO (88) 10 (230) (164)
Corporate
amortization (8) (11) (23) (34)
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Basic FFO 2,513 2,591 7,666 6,567
Interest on
dilutive
convertible
debentures 39 157 116 466
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Diluted FFO $ 2,552 $ 2,748 $ 7,782 $ 7,033
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Basic weighted
average shares
outstanding 44,287 41,557 43,570 40,792
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Basic FFO per
share $ 0.057 $ 0.062 $ 0.176 $ 0.161
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Diluted shares
outstanding per
consolidated
financial
statements 44,912 42,307 45,369 41,332
Dilutive effect
on FFO of
convertible
debentures 1,147 4,630 - 4,633
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Total diluted
weighted average
shares outstanding 46,059 46,937 45,369 45,965
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Diluted FFO
per share $ 0.055 $ 0.059 $ 0.172 $ 0.153
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-------------------------------------------------------------------------The Company has changed the prior year's fiscal year end for financial
reporting purpose from October 31 to December 31, 2006. As a result, the
interim consolidated financial statements comparative figures and related
financial summaries will be for period ends that are different than from the
current period.
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 87 properties comprising 4.1 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.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
%SEDAR: 00012014E
For further information:
For further information: on Plazacorp, visit our website at www.plaza.ca or contact: Earl Brewer, Chairman or Kim Sharpe, Director of Business Development, (506) 451-1826