Plaza Retail REIT provides financing update
Sep 23, 2014
FREDERICTON, NB, Sept. 23, 2014 /CNW/ - Plaza Retail REIT (PLZ.UN: TSX) ("Plaza") announced today an update on its recent financing initiatives. Plaza expects to secure or refinance over $170 million in mortgage loans and convertible debentures (at Plaza's ownership percentage), generating approximately $1.4 million in annual cash flow savings or approximately $0.015 per unit.
This year Plaza has undertaken a significant refinancing program, including refinancing almost half of its assumed KEYreit loans. To date Plaza has: (i) secured approximately $98 million in mortgage loans, approximately $46 million of which have been via refinancing or early refinancing of existing debt; and (ii) redeemed its high coupon Series A convertible debentures. These are generating approximately $900 thousand in annual cash flow savings. Plaza is currently in the process of refinancing an additional $57 million in mortgage loans over the next 3 to 6 months, which are anticipated to result in further annual cash flow savings of approximately $500 thousand.
"This is a very significant year for Plaza from a financing perspective and we expect to achieve three important goals: (i) we will generate very meaningful annual cash flow savings of approximately $1.4 million per year; (ii) we will have smoothed out our mortgage maturity profile; and (iii) we are creating smaller, more manageable sized loans, all of which serve to reduce interest rate and financing related risk and create value for our unitholders." said Plaza's President and CEO Michael Zakuta.
Plaza is an open-ended real estate investment trust and is a leading retail property owner and developer, particularly in Eastern Canada. Plaza's current portfolio includes interests in 320 properties totaling approximately 6.7 million square feet across Canada and additional lands held for development. Plaza's properties include a mix of strip plazas, stand-alone small box retail outlets and enclosed shopping centres, anchored by approximately 90% national tenants.
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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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SOURCE Plaza Retail REIT
For further information: For further information: visit our website at www.plaza.ca or contact: Michael Zakuta, President and Chief Executive Officer, at (514) 457-0997 or Floriana Cipollone, Chief Financial Officer, at (416) 848-4583.