Plazacorp announces first quarter financial results

    HALIFAX, May 22 /CNW/ - Plazacorp Retail Properties Ltd.
(PLZ:TSX Venture) today announced its results for the first quarter ended
March 31, 2007.
    Michael Zakuta, Plazacorp's President and CEO, said, "We are very pleased
with our financial results for the first quarter ended March 31, 2007. The
addition of sixteen (16) new properties over the last twelve (12) months and
the resulting financial performance is a strong confirmation of our business
strategy and our ability to source, lease, develop, finance and operate retail
real estate in Atlantic Canada, Quebec and Ontario."
    The Corporation reported funds from operations ("FFO") of $0.065 per
share ($0.062 per share diluted) for the three months ended March 31, 2007,
representing an increase of 35% over the $0.048 per share ($0.045 per share
diluted) for the three months ended April 30, 2006.
    During the three months ended March 31, 2007, the Corporation grew its
portfolio by 4 properties from an interest in 74 properties with total assets
of $230 million to 78 properties with total assets of $233 million. Subsequent
to March 31, 2007 two additional properties were added to the Company's
portfolio for a total of 80 properties.
    Earnings before interest, income taxes, depreciation and amortization
(EBITDA) was $5.7 million for the three months ended March 31, 2007, an
increase of $1.2 million (27%) as compared to $4.5 million for the quarter
ended April 30, 2006.
    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 then for the
current period being reported upon.
    Plazacorp's Summary of FFO for the 3 months ended March 31, 2007,
compared to the 3 months ended April 30, 2006 including the results of
discontinued operations are presented below:-------------------------------------------------------------------------
    (000's - except per share amounts)                  March 31,   April 30,
    For the Three Months Ended                              2007        2006
    -------------------------------------------------------------------------
    Total revenues                                      $  9,734    $  8,080
                                                      -----------------------
                                                      -----------------------
    Basic earnings (loss) per share                     $  0.072    $ (0.001)
                                                      -----------------------
                                                      -----------------------
    Diluted earnings (loss) per share                   $  0.066    $ (0.001)
                                                      -----------------------
                                                      -----------------------

    Net income (loss)                                   $  3,064    $    (58)
    Gain on disposal of income producing properties       (2,786)          -
    Income tax expense (recovery)                            259         (70)
    Income tax expense included in income from
     discontinued operations                                  28          41
    Amortization                                           2,095       1,955
    Amortization included in income from discontinued
     operations                                               85         124
    Non-controlling interests                                 80          17
    Financing costs                                        2,769       2,382
    Financing costs included in income from
     discontinued operations                                 115         159
                                                      -----------------------
    Earnings before interest, taxes, depreciation and
     amortization (EBITDA)                                 5,709       4,550
    Less:
    Financing costs                                       (2,884)     (2,541)
    Current income tax expense (recovery)                      2         (35)
    Non-cash debenture interest                               21          20
    Equity accounting and non-controlling interests
     adjustments to FFO                                      (66)        (75)
    Corporate amortization                                    (8)        (11)
                                                      -----------------------
    Basic FFO                                              2,774       1,908

    Interest on dilutive convertible debentures              109         191
                                                      -----------------------

    Diluted FFO                                         $  2,883    $  2,099
                                                      -----------------------
                                                      -----------------------

    Basic weighted average shares outstanding             42,766      39,703
                                                      -----------------------
                                                      -----------------------
    Basic FFO per share                                 $  0.065    $  0.048
                                                      -----------------------
                                                      -----------------------
    Diluted shares outstanding per consolidated
     financial statements                                 48,052      40,144
    Diluted (antidilutive) effect of convertible
     debentures                                           (1,250)      6,074
                                                      -----------------------
    Total diluted weighted average shares outstanding     46,802      46,218
                                                      -----------------------
                                                      -----------------------
    Diluted FFO per share                               $  0.062    $  0.045
    -------------------------------------------------------------------------
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    Diluted FFO exclude the impact of convertible debentures not dilutive to
    earnings (see note 16c of the consolidated financial statements March 31,
    2007)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 80 properties comprising 4.0 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.

    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.
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