Plazacorp announces solid 3rd quarter results driven by new developments and KEYreit acquisition
Nov 12, 2013
FREDERICTON, NB, Nov. 12, 2013 /CNW/ - Plazacorp Retail Properties Ltd. (TSX: PLZ) ("Plazacorp" or the "Company") today announced its results for the quarter ended September 30, 2013.
For the nine months ended September 30, 2013, Plazacorp reported funds from operations ("FFO") of $14.5 million, an increase of 19.3% over the same period in the prior year. FFO per share was $0.204 for the nine months ended September 30, 2013 ($0.204 per share diluted) compared to $0.200 per share for the nine months ended September 30, 2012 ($0.200 per share diluted). FFO was positively impacted by growth in total net property operating income and same-asset net property operating income as well as net property operating income from the acquisition of KEYreit. These were partly offset by: (i) an increase in administrative expenses, some of which are one-time in nature (relating to the integration of KEYreit, the move to the TSX and the Company's REIT conversion); and (ii) an increase in finance costs mainly related to the acquisition of KEYreit. Excluding the one-time administrative expenses of $544 thousand, FFO per share would have been $0.212, compared to $0.200 per share for the prior year.
Plazacorp reported FFO of $5.6 million for the three months ended September 30, 2013, an increase of 32.0% over the same period in the prior year. FFO per share was $0.072 for the quarter ended September 30, 2013 ($0.072 per share diluted) compared to $0.069 per share for the quarter ended September 30, 2012 ($0.069 per share diluted). Excluding the one-time administrative expenses, FFO per share would have been $0.075, compared to $0.069 per share for the prior year.
The Company recorded a loss for the nine months ended September 30, 2013 of $1.7 million compared to a profit of $45.0 million recorded for the same period in the prior year. Profit was mainly impacted by the same factors affecting FFO, as well as: (i) non-cash fair value adjustments on investment properties and investments (net of deferred taxes) mainly as a result of the write off of capitalized transaction costs, as well as a smaller change in capitalization rates; and (ii) one-time transaction-related costs recorded on the acquisition of KEYreit for the termination of the KEYreit asset and property management agreements as well as severance.
Michael Zakuta, Plazacorp's President and CEO said, "We are pleased with our quarterly results. The Company continues to execute on its strategy of creating value for our shareholders and KEYreit continues to be accretive to our results."
Plazacorp's summary of FFO is presented below:
|(000s - except per share amounts)||(unaudited)||(unaudited)||(unaudited)||(unaudited)|
|Profit (loss) for the period attributable to shareholders||$||1,445||$||12,493||$||(2,387)||$||42,540|
|Loss (gain) on disposal of investment properties and land||105||-||105||(8)|
|Transaction-related costs on acquisition of KEYreit||-||-||9,061||-|
|Deferred income taxes||2,203||3,958||4,221||13,248|
|Refundable tax on disposals of investment properties||(216)||-||(626)||-|
|Fair value adjustment to investment properties||1,456||(11,632)||5,907||(38,771)|
|Fair value adjustment to investments||301||(1,014)||(937)||(6,737)|
|Fair value adjustment to convertible debentures||506||(53)||(1,362)||126|
|Equity accounting adjustment||(173)||(10)||574||(21)|
|Non-controlling interest adjustment||(15)||503||(91)||1,753|
|Interest on dilutive convertible debentures||-||7||-||-|
|Basic Weighted Average Shares Outstanding||78,219||61,538||70,741||60,646|
|Diluted Weighted Average Shares Outstanding||78,219||61,639||70,741||60,646|
|Basic and diluted FFO per share||$||0.072||$||0.069||$||0.204||$||0.200|
Plazacorp is a leading retail property owner and developer, particularly in Eastern Canada. Plazacorp has an entrepreneurial focus with strong "value-add" capabilities. Plazacorp's current portfolio includes interests in 347 properties totaling approximately 6.6 million square feet across Canada and additional lands held for development. Plazacorp's properties include a mix of strip plazas, stand-alone small box retail outlets and enclosed shopping centres, anchored by approximately 90% national tenants. Total assets have reached almost $1 billion. Plazacorp is fully internalized, therefore providing shareholders directly with the synergies that come with an internalized management structure. Plazacorp has proven its strong "value-add" capabilities to develop, redevelop and acquire retail real estate throughout Canada. Plazacorp has a strong track record of generating growth in distributions, having increased its distributions at least once every year in the last 10 years.
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.
Neither the TSX nor its Regulation Services Provider (as that term is defined in policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Plazacorp Retail Properties Ltd.
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) 460-8261