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 ($0.076 diluted) for the three months ended September 30, 2009.
Plazacorp's Summary of FFO for the three and nine months ended September 30, 2010, compared to the three and nine months ended September 30, 2009 is presented below:
(000's - except per share amounts)
|Total revenues||$ 13,410||$ 12,530||$ 39,550||$ 36,676|
|Income before other comprehensive loss||$ 599||$ 755||$ 1,236||$ 2,536|
|Loss (gain) on disposal of income producing properties and surplus lands||-||30||(16)||(673)|
|Income tax expense||369||375||773||858|
|Earnings before interest, taxes, depreciation and amortization (EBITDA)||8,054||7,630||23,094||21,038|
|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|
|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|
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.
For further information:
on Plazacorp, visit our website at
Floriana Cipollone, Chief Financial Officer (416) 848-4583 or Kim Sharpe, Director of Business Development at (506) 451-1826