Plazacorp announces Q3 financial results

    FREDERICTON, Nov. 24 /CNW/ - Plazacorp Retail Properties Ltd. (PLZ:TSX
Venture) today announced its results for the nine months ended September 30,
2008.
    Michael Zakuta, Plazacorp's President and CEO, said, "We are pleased with
the results for the period ended September 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 nine month period ended September 30, 2008, 8 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."
    The Corporation reported funds from operations ("FFO") of $3.3 million
for the three months ended September 30, 2008, representing a 32.8% increase
over $2.5 million for the three months ended September 30, 2007. FFO per share
was $0.071 ($0.070 diluted) for the three months ended September 30, 2008,
representing a 24.6 % increase over $0.057 ($0.055 diluted) for the three
months ended September 30, 2007.
    The Corporation reported funds from operations ("FFO") of $9.1 million
for the nine months ended September 30, 2008, representing an 18.3% increase
over $7.7 million for the nine months ended September 30, 2007. FFO per share
was $0.194 ($0.192 diluted) for the nine months ended September 30, 2008,
representing a 10.2 % increase over $0.176 ($0.172 diluted) for the nine
months ended September 30, 2007.
    Plazacorp's Summary of FFO for the three and nine months ended September
30, 2008, compared to the three and nine months ended September 30, 2007,
including the results of discontinued operations are presented below:-------------------------------------------------------------------------
                             3 Months     3 Months     9 Months     9 Months
    (000's - except per         Ended        Ended        Ended        Ended
     share amounts)         September    September    September    September
    For the Periods Ended    30, 2008     30, 2007     30, 2008     30, 2007
    -------------------------------------------------------------------------
    Total revenues           $ 12,144     $ 10,321     $ 35,436     $ 29,993
    Basic earnings per      -------------------------------------------------
                            -------------------------------------------------
     share                   $  0.085     $  0.016     $  0.097     $  0.090
                            -------------------------------------------------
                            -------------------------------------------------
    Diluted earnings
     per share               $  0.082     $  0.016     $  0.095     $  0.089
                            -------------------------------------------------
                            -------------------------------------------------

    Net income and
     comprehensive income    $  3,971     $    704     $  4,515     $  3,935
    Gain on disposals of
     income producing
     properties and sale
     of surplus lands          (4,176)        (831)      (4,096)      (3,619)
    Income tax expense          1,077          504        1,437          886
    Income tax expense
     (recovery) included
     in income from
     discontinued operations        -           (2)           -           10
    Amortization                2,498        2,142        7,297        6,325
    Amortization included in
     income from discontinued
     operations                     -            -            -           85
    Non-controlling interests     129           90          345          260
    Interest costs              3,862        3,389       10,932        9,112
    Interest costs included
     in income from
     discontinued operations        -            -            -          115
    Earnings before interest,
     taxes, depreciation    -------------------------------------------------
     and amortization
     (EBITDA)                   7,361        5,996       20,430       17,109
    Less:
    Interest costs             (3,862)      (3,389)     (10,932)      (9,227)
    Current income tax expense    (15)         (10)         (45)         (15)
    Non-cash debenture interest    10           12           30           52
    Non-controlling interest
     adjustment to FFO           (290)        (217)        (821)        (628)
    Equity accounting
     adjustment to FFO            141          129          420          398
    Corporate amortization         (6)          (8)         (17)         (23)
                            -------------------------------------------------
    Basic FFO                   3,339        2,513        9,065        7,666
    Interest on dilutive
     convertible debentures
     before income tax             21           39           62          116
                            -------------------------------------------------
    Diluted FFO              $  3,360     $  2,552     $  9,127     $  7,782
                            -------------------------------------------------
                            -------------------------------------------------
    Basic Weighted Average
     Shares Outstanding        46,867       44,287       46,626       43,570
    Basic FFO per share      $  0.071     $  0.057     $  0.194     $  0.176
                            -------------------------------------------------
                            -------------------------------------------------
    Diluted FFO per share    $  0.070     $  0.055     $  0.192     $  0.172
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------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
November 24, 2008, owns interests in 92 properties comprising 4.3 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.

    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.
    %SEDAR: 00012014E