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 ------------------------------------------------------------------------- Total revenues $ 10,321 $ 8,678 $ 29,993 $ 24,987 ------------------------------------------------------ ------------------------------------------------------ Basic earnings per share $ 0.016 $ 0.009 $ 0.090 $ 0.041 ------------------------------------------------------ ------------------------------------------------------ Diluted earnings per share $ 0.016 $ 0.009 $ 0.089 $ 0.041 ------------------------------------------------------ ------------------------------------------------------ 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 ------------------------------------------------------ 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) ------------------------------------------------------ Basic FFO 2,513 2,591 7,666 6,567 Interest on dilutive convertible debentures 39 157 116 466 ------------------------------------------------------ Diluted FFO $ 2,552 $ 2,748 $ 7,782 $ 7,033 ------------------------------------------------------ ------------------------------------------------------ Basic weighted average shares outstanding 44,287 41,557 43,570 40,792 ------------------------------------------------------ ------------------------------------------------------ Basic FFO per share $ 0.057 $ 0.062 $ 0.176 $ 0.161 ------------------------------------------------------ ------------------------------------------------------ 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 ------------------------------------------------------ ------------------------------------------------------ Total diluted weighted average shares outstanding 46,059 46,937 45,369 45,965 ------------------------------------------------------ ------------------------------------------------------ Diluted FFO per share $ 0.055 $ 0.059 $ 0.172 $ 0.153 ------------------------------------------------------------------------- -------------------------------------------------------------------------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
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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