Plazacorp announces Q2 financial results
Aug 25, 2008
FREDERICTON, Aug. 25 /CNW/ - Plazacorp Retail Properties Ltd. (PLZ:TSX Venture) today announced its results for the six months ended June 30, 2008. Michael Zakuta, Plazacorp's President and CEO, said, "We are pleased with the results for the period ended June 30, 2008. The increase in FFO is a confirmation of our business strategy and our ability to successfully develop and complete new development projects in a more challenging financing environment. For the six month period ended June 30, 2008, 7 new properties became income producing. Currently we have 7 projects under development and two land assemblies in progress, which upon completion will deliver stronger FFO going forward and strengthen the quality of our portfolio." During the three months ended June 30, 2008, the Corporation grew its portfolio to 91 properties with total assets of $298 million. The Corporation reported funds from operations ("FFO") of $2.98 million for the three months ended June 30, 2008, representing a 25.5% increase over $2.37 million for the three months ended June 30, 2007. FFO per share was $0.064 ($0.063 diluted) for the three months ended June 30, 2008, representing an 18.5 % increase over $0.054 ($0.052 diluted) for the three months ended June 30, 2007. The Corporation reported funds from operations ("FFO") of $5.72 million for the six months ended June 30, 2008, representing an 11.2% increase over $5.15 million for the six months ended June 30, 2007. FFO per share was $0.123 ($0.121 diluted) for the six months ended June 30, 2008, representing a 3.4 % increase over $0.119 ($0.115 diluted) for the six months ended June 30, 2007. Plazacorp's Summary of FFO for the three and six months ended June 30, 2008, compared to the three and six months ended June 30, 2007, including the results of discontinued operations are presented below:------------------------------------------------------------------------- (000's - except per 3 Months 3 Months 6 Months 6 Months share amounts) Ended Ended Ended Ended For the Periods Ended June 30, June 30, June 30, June 30, 2008 2007 2008 2007 ------------------------------------------------------------------------- Total revenues $ 11,849 $ 9,937 $ 23,292 $ 19,670 -------------------------------------------------- -------------------------------------------------- Basic earnings per share $ 0.007 $ 0.004 $ 0.012 $ 0.075 -------------------------------------------------- -------------------------------------------------- Diluted earnings per share $ 0.007 $ 0.004 $ 0.012 $ 0.072 -------------------------------------------------- -------------------------------------------------- Net income and comprehensive income $ 343 $ 165 $ 542 $ 3,231 Loss (gain) on disposals of income producing properties and sale of surplus land 80 (3) 80 (2,790) Income tax expense 233 124 362 383 Income tax expense included in income from discontinued operations - (16) - 12 Amortization 2,404 2,087 4,800 4,183 Amortization included in income from discontinued operations - - - 85 Non-controlling interests 115 90 215 170 Interest costs 3,514 2,954 7,069 5,723 Interest costs included in income from discontinued operations - - - 115 -------------------------------------------------- Earnings before interest, taxes, depreciation and amortization (EBITDA) 6,689 5,401 13,068 11,112 Less: Interest costs (3,514) (2,954) (7,069) (5,838) Current income tax (expense) recovery (15) (8) (30) (6) Non-cash debenture interest 10 19 20 40 Non-controlling interest adjustment to FFO (331) (209) (531) (410) Equity accounting adjustment to FFO 148 133 279 268 Corporate amortization (6) (8) (11) (15) -------------------------------------------------- Basic FFO 2,981 2,374 5,726 5,151 Interest on dilutive convertible debentures before income tax 21 90 41 178 -------------------------------------------------- Diluted FFO $ 3,002 $ 2,464 $ 5,767 $ 5,329 -------------------------------------------------- -------------------------------------------------- Basic Weighted Average Shares Outstanding 46,697 43,640 46,504 43,206 Basic FFO per share $ 0.064 $ 0.054 $ 0.123 $ 0.119 -------------------------------------------------- -------------------------------------------------- Diluted FFO per share $ 0.063 $ 0.052 $ 0.121 $ 0.115 ------------------------------------------------------------------------- -------------------------------------------------------------------------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 August 25, 2008, owns interests in 91 properties comprising 4.2 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; Kim Sharpe, Director of Business Development, (506) 451-1826