Plazacorp announces Q1 financial results

    FREDERICTON, NB, May 26 /CNW/ - Plazacorp Retail Properties Ltd.
(PLZ:TSX Venture) today announced its results for the three months ended
March 31, 2008.
    Michael Zakuta, Plazacorp's President and CEO, said, "Plazacorp invested
$12.6 million in new development projects and transferred 3 properties to
income producing status in the period. Currently we have 10 projects under
development, which upon completion will deliver stronger FFO going forward and
strengthen the quality of our portfolio"
    During the three months ended March 31, 2008, the Corporation grew its
portfolio by 3 properties from an interest in 87 properties with total assets
of $270 million to 90 properties with total assets of $283 million."
    The Corporation reported funds from operations ("FFO") of $0.059 per
share ($0.058 per share diluted) for the three months ended March 31, 2008,
compared to $0.065 per share ($0.062 per share diluted) for the three months
ended March 31, 2007.

    Plazacorp's Summary of FFO for the three months ended March 31, 2008,
compared to the three months ended March 31, 2007, including the results of
discontinued operations are presented below:-------------------------------------------------------------------------
    (000's - except per share amounts)       3 Months              3 Months
                                                Ended                 Ended
                                             March 31,             March 31,
    For the Periods Ended                        2008                  2007
    -------------------------------------------------------------------------
    Total revenues                           $ 11,443              $  9,734
                                         ------------------------------------
                                         ------------------------------------
    Basic earnings per share                 $  0.004              $  0.072
                                         ------------------------------------
                                         ------------------------------------
    Diluted earnings per share               $  0.004              $  0.066
                                         ------------------------------------
                                         ------------------------------------

    Net income and comprehensive income      $    200              $  3,064
    Gain on disposals of income producing
     properties and sale of surplus lands           -                (2,786)
    Income tax expense                            129                   259

    Income tax expense included in income
     from discontinued operations                   -                    28
    Amortization                                2,395                 2,095
    Amortization included in income from
     discontinued operations                        -                    85
    Non-controlling interests                     101                    80
    Interest costs                              3,555                 2,769
    Interest costs included in income
     from discontinued operations                   -                   115
                                         ------------------------------------
    Earnings before interest, taxes,
     depreciation and amortization (EBITDA)     6,380                 5,709
    Less:
    Interest costs                             (3,555)               (2,884)
    Current income tax (expense) recovery         (15)                    2
    Non-cash debenture interest                    10                    21
    Non-controlling interest
     adjustment to FFO                           (200)                 (201)
    Equity accounting adjustment to FFO           131                   135
    Corporate amortization                         (6)                   (8)
                                         ------------------------------------
    Basic FFO                                   2,745                 2,774
    Interest on dilutive convertible
     debentures before income tax                  21                   109
                                         ------------------------------------
    Diluted FFO                              $  2,766              $  2,883
                                         ------------------------------------
                                         ------------------------------------
    Basic Weighted Average Shares
     Outstanding                               46,312                42,766
    Basic FFO per share                      $  0.059              $  0.065
                                         ------------------------------------
                                         ------------------------------------
    Diluted FFO per share                    $  0.058              $  0.062
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------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, as at
May 26, 2008, owns interests in 91 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