Plazacorp announces increased FFO with its year end results
Mar 1, 2012
FREDERICTON, NB, March 1, 2012 /CNW/ - Plazacorp Retail Properties Ltd. (TSXV: PLZ) today announced its results for the year ended December 31, 2011.
For the quarter ended December 31, 2011, Plazacorp reported funds from operations ("FFO") of $3.7 million, an increase of 7.3% over the same period in the prior year. FFO per share was $0.061 for the three months ended December 31, 2011 ($0.061 per share diluted) compared to $0.068 per share for the three months ended December 31, 2010 ($0.068 per share diluted). FFO was positively impacted by growth in net property operating income (net of financing costs), partly offset by the net effects of the internalization of property and corporate management as well as one-time administrative costs incurred. The per share numbers were also impacted by the equity raise completed at the end of September.
Plazacorp reported FFO of $14.1 million for the year ended December 31, 2011, an increase of 4.2% over the same period in the prior year. FFO per share was $0.263 for the year ended December 31, 2011 ($0.263 per share diluted) compared to $0.272 per share for the year ended December 31, 2010 ($0.268 per share diluted).
Michael Zakuta, Plazacorp's President and CEO said, "We are pleased with the financial results for the year. The company has continued to grow and improve the quality of its portfolio, as reflected in its ability to continue increasing dividends to shareholders. We are also pleased with our other major accomplishments during the year: 1) internalizing property and corporate management; and 2) significantly improving our balance sheet with the completion of our first public equity raise. Plazacorp`s debt to gross book value ratio has now decreased from 52% to 46%."
Profit for the year ended December 31, 2011 was $28.9 million compared to $24.1 million recorded for the prior year. For the quarter ended December 31, 2011, Plazacorp reported profit of $7.9 million compared to a loss of $195 thousand for the same period in the prior year. Profit was mainly impacted by the increase in FFO as well as non-cash fair value adjustments on investment properties and convertible debentures, net of deferred taxes on those amounts.
Plazacorp's summary of FFO is presented below:
(000's - except per share amounts and debt coverage
|Profit (loss) for the period attributable to shareholders||$||7,911||$||(163)||$||28,114||$||22,593|
|(Gain) loss on disposal of investment properties||3||(38)||3||87|
|Deferred income tax expense||2,829||1,840||10,349||8,526|
|Fair value adjustment to investment properties||(8,385)||(2,199)||(23,864)||(23,238)|
|Fair value adjustment to investments||(1,762)||(1,280)||(3,759)||(3,683)|
|Fair value adjustment to convertible debentures||3,088||5,671||2,744||7,875|
|Net revaluation of interest rate swaps||165||(180)||363||43|
|Non-controlling interest adjustment||(198)||(249)||103||720|
|Adjustment for debenture issuance costs||-||-||-||565|
|Basic FFO - adjusted||$||3,651||$||3,402||$||14,053||$||13,488|
|Interest on dilutive convertible debentures||-||-||-||2,114|
|Basic Weighted Average Shares Outstanding||59,716||49,835||53,394||49,540|
|Diluted Weighted Average Shares Outstanding||59,716||49,841||53,394||58,298|
|Basic FFO - adjusted per share||$||0.061||$||0.068||$||0.263||$||0.272|
|Diluted FFO - adjusted per share||$||0.061||$||0.068||$||0.263||$||0.268|
|Debt coverage ratios|
|Interest coverage ratio||1.9 times||1.9 times||1.9 times||1.9 times|
|Debt service coverage ratio||1.5 times||1.5 times||1.5 times||1.5 times|
Plazacorp Retail Properties Ltd. is an owner of shopping malls and strip plazas throughout Atlantic Canada, Quebec and Ontario. Plazacorp owns interests in 114 properties comprising 5.0 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, except for forward-looking information disclosed in prior disclosures which, in light of intervening events, requires further explanation to avoid being misleading.
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For further information:
on Plazacorp, visit our website at
Floriana Cipollone, Chief Financial Officer (416) 848-4583 or Kim Sharpe, Director of Business Development at (506) 451-1826