Parkbridge announces fiscal 2007 year end results



    
    -------------------------------------------------------------------------
    Audited                                          Year ended September 30
                                                   --------------------------
    ($000's, except per share amounts)                2007     2006     2005
    ----------------------------------             -------- -------- --------
    Total revenues                                 117,465   76,614   46,974
    Income from property operations                 30,162   20,597   14,218
    Income from operations                          36,429   24,088   16,677
    Funds from operations(FFO)(1)                   22,712   13,819   10,430
    FFO per share - diluted                           0.36     0.26     0.20
    Net income                                      16,557    4,343    3,401
    Net income per share - diluted                    0.26     0.08     0.07
    -------------------------------------------------------------------------

    (1) Management utilizes a measure called Funds From Operations ("FFO") to
        assess and evaluate its return on each of its projects as well as the
        performance of the enterprise as a whole. FFO does not have a
        standardized meaning prescribed by Canadian generally accepted
        accounting principles ("GAAP"), and therefore may not be comparable
        to similar measures presented by other issuers. Parkbridge defines
        FFO as being net income for the period before depreciation and
        amortization on capital assets, certain defeasance costs, stock-based
        compensation expense, internalization costs, future income tax
        expense and deferred credits in income tax expense.
    

    CALGARY, Dec. 5 /CNW/ - Parkbridge Lifestyle Communities Inc.
("Parkbridge" or the "Corporation"), (TSX: PRK and PRK.A) today announced the
results for its fiscal year ended September 30, 2007.

    Parkbridge is pleased to report that the fiscal year ending September 30,
2007 was another year of strong performance for the Corporation. All areas of
our operations performed exceptionally well, benefiting from the building
blocks which were put in place in years past.
    Income from operations rose 51% to $36.4 million for the year ended
September 30, 2007 as compared to $24.1 million for 2006. Strong growth was
generated internally, from operations and the lease up of Developed Sites, as
well as from properties acquired over the last two years. Funds from
operations increased 64% to $22.7 million ($0.36 per share) for the year ended
September 30, 2007 as compared to $13.8 million ($0.26 per share) in 2006. Net
income for the 2007 fiscal year rose to $16.6 million ($0.26 per share) from
$4.3 million ($0.08 per share) in 2006.

    
    Highlights for Parkbridge's 2007 fiscal year include:

    Acquisitions

    -   $71.1 million was invested through the acquisition of 11 properties
        containing approximately 2,474 Sites.

        -  Acquisitions were focused in our core markets in British Columbia,
           Alberta, Ontario and Quebec.

        -  Additions by way of acquisition were made to all property
           classifications in our portfolio, 822 Sites in Lifestyle
           Communities, 295 Sites in Family and Seniors oriented communities,
           1,057 Sites in Seasonal Resorts and 300 Marina Slips.

        -  Expansion capacity was increased by 825 Expansion Sites through
           acquisitions.

        -  Another three properties containing 695 Sites have been acquired
           since our 2007 year end. As of December 5, 2007, a transaction
           involving one additional property containing 242 Sites is under a
           binding purchase and sale agreement, and is scheduled to close in
           January 2008. Approximately $21.8 million is expected to be
           invested in these properties.

    Developments

    -   Parkbridge's expansion program continued to grow in scale and
        momentum as 19 projects were under active development. $18.6 million
        was invested in development projects during the year and 325 newly
        Developed Sites were completed. The Corporation's newer projects
        introduce a whole new generation of land lease communities and
        resorts suited to the requirements of today's consumer. These
        projects are master planned incorporating updated modern design
        techniques, and offering a large array of style, quality and
        amenities creating unique lifestyle opportunities.

    -   Future expansion capacity continues to hold approximately 4,000
        Expansion Sites as acquisitions of properties containing expansion
        and development lands are added to replace those sites brought on
        stream through the development process.

    Leasing and Home Sales

    -   393 Developed Sites were leased in fiscal 2007 as compared to 212
        Developed Sites leased in 2006. Parkbridge sells new Homes and
        Seasonal Resort Units onto the majority of the Developed Sites being
        leased. In 2007, 374 sales were completed contributing $6.3 million
        to income as compared to 212 sales generating $3.5 million of income
        in 2006.

    -   The backlog of lease and sales commitments is at historically high
        levels. As of November 30, 2007, and subsequent to September 30,
        2007, 30 additional Sites were leased and a further 187 lease and
        home sales contracts were in hand (128 firm and 59 conditional
        contracts).

    Operations

    -   The year over year increase in income from property operations of 46%
        ($9.6 million) was driven by a mix of internal growth and
        acquisitions. 34% of the increase came from properties the
        Corporation owned throughout 2007 and 2006 - through the lease-up of
        new sites, operating improvements and rent increases. The balance of
        growth came from properties acquired in 2006 and 2007.

    -   All properties continued to enjoy high occupancy rates, averaging 97%
        over the entire portfolio. Turnover rates remained very low,
        particularly in Alberta, where affordable housing is in high demand.

    Finance

    -   In fiscal 2007 $78.2 million was raised through secured debt
        financing with an average term of 9.6 years and an average interest
        rate of 5.76%. Overall, the average term on Parkbridge's secured debt
        is 7.4 years and the average interest rate at September 30, 2007 was
        5.82%.

    -   Accounting and financial systems have been significantly enhanced to
        facilitate the management and financial reporting of this growing
        enterprise.
    

    Since becoming a public company three years ago, Parkbridge has taken a
disciplined approach to building a portfolio of high quality properties
concentrated in markets with strong long term fundamentals. The Corporation's
portfolio of over 15,000 Sites (including properties under binding purchase
agreements) consists of many of the best land lease communities and resorts to
be found anywhere in Canada. Additionally, over 4,000 more Sites will be
available on build out. This growth has been achieved with minimal dilution to
the Corporation's shareholders who have, to date and for that three year
period, benefited from an annual compound growth rate in funds from operations
per share of 24%.
    "We will continue to build on Parkbridge's solid foundation and enhance
what we believe is a one of kind portfolio in a real estate sector that is at
the early stages of seeing the long term benefits demographic trends will
bring." commented Mr. David Rozycki, President Eastern Operations & Co-CEO.
"For 2008, our goals and objectives remain much the same as in 2007." added
Mr. Iain Stewart, President, Western Operations and Co-CEO. "We will seek to
acquire quality assets in excellent real estate locations, turn our existing
land bank into income producing assets, increase leasing and sales activity,
create value within our portfolio through proactive management, maximize the
use of and return on our existing capital and continue to realign and upgrade
training and information systems as demanded by a fast growing enterprise."
    For a complete discussion of the foregoing please refer to the filings of
the Corporation's September 30, 2007 Financial Statements and Management's
Discussion and Analysis, which have been concurrently filed on SEDAR.

    Parkbridge Profile

    Parkbridge is one of Canada's leading owners, operators and developers of
land lease residential communities and seasonal recreational resorts. The
portfolio is concentrated in the provinces of British Columbia, Alberta,
Ontario and Quebec.
    Parkbridge is listed on the Toronto Stock Exchange and its head office is
in Calgary, Alberta.

    
    CONSOLIDATED BALANCE SHEET
    (Audited)                                     September 30  September 30
    ($000's)                                              2007          2006
                                                  ------------- -------------

    Assets
      Real estate assets                               359,037       265,905
      Cash and cash equivalents                          3,763         5,372
      Defeasance collateral                             11,511        12,122
      Inventory and other assets                        40,403        23,527
      Future income tax asset                                -         8,451
                                                  ------------- -------------
                                                       414,714       315,377
                                                  ------------- -------------
                                                  ------------- -------------
    Liabilities and Shareholders' Equity
      Secured debt                                     217,446       143,485
      Bank indebtedness                                  9,831             -
      Accounts payable and other liabilities            22,156        27,683
      Future income tax liability and deferred
       credit                                           12,117        15,069
                                                  ------------- -------------
                                                       261,550       186,237
      Shareholders' Equity                             153,164       129,140
                                                  ------------- -------------
                                                       414,714       315,377
                                                  ------------- -------------
                                                  ------------- -------------



    CONSOLIDATED INTERIM STATEMENT OF INCOME AND FUNDS FROM OPERATIONS

    (Audited)                                     September 30  September 30
    ($000's)                                              2007          2006
                                                  ------------- -------------

    PROPERTY OPERATIONS
      Rental and other property revenues                52,572        39,327
      Property operating expenses and taxes            (24,077)      (19,877)
      Brokerage and resale income                        1,667         1,147
                                                  ------------- -------------
        Income from property operations                 30,162        20,597
                                                  ------------- -------------

    SALES OPERATIONS
      Sales revenue                                     53,558        29,389
      Cost of sales                                    (44,840)      (24,918)
      Operating expenses                                (2,451)         (980)
                                                  ------------- -------------
        Income from home sales operations                6,267         3,491
                                                  ------------- -------------

    INCOME FROM OPERATIONS BEFORE THE UNDERNOTED        36,429        24,088
                                                  ------------- -------------

      Interest expense                                  10,536         6,878
      Depreciation and amortization                      5,880         3,948
      General and administrative expenses                3,736         3,071
      Stock-based compensation                           1,398         2,310
      Interest income                                     (497)         (409)
      Loss (gain) on derivative instruments               (100)          492
      Internalization costs                                  -         8,400
      Defeasance loss                                        -         2,097
                                                  ------------- -------------
                                                        20,953        26,787
                                                  ------------- -------------
    INCOME (LOSS) BEFORE INCOME TAXES                   15,476        (2,699)

    Income taxes, net of deferred credit                (1,081)       (7,042)
                                                  ------------- -------------
    NET INCOME                                          16,557         4,343

    Add: Defeasance loss                                     -         2,097
         Depreciation and amortization                   5,880         3,948
         Stock based compensation                        1,398         2,310
         Internalization costs                               -         8,400
         Future income taxes, net of
          deferred credit                               (1,123)       (7,279)
                                                  ------------- -------------
    FUNDS FROM OPERATIONS                               22,712        13,819
                                                  ------------- -------------
                                                  ------------- -------------
    

    The TSX has not in any way passed upon the merits of these transactions,
    has not approved or disapproved the contents of this news release, nor
    does it accept any responsibility for the adequacy of this release.

    This news release contains forward-looking statements concerning the
Corporation's business and operations. The Corporation cautions that, by their
nature, forward-looking statements involve risk and uncertainty and the
Corporation's results could differ materially from those expressed or implied
in such statements. Reference should be made to the most recent Management's
Discussion and Analysis in the fiscal year ended September 30, 2007, the
Annual Information Form dated December 5, 2007. All reports may be viewed on
our website www.parkbridge.ca or on the SEDAR website www.sedar.com.





For further information:

For further information: Mr. Iain Stewart, President, Western Operations
and Co-CEO, Telephone: (403) 215-2109, Email: istewart@telusplanet.net; Mr.
Glenn McCowan, Chief Financial Officer, Telephone: (403) 215-2175, Email:
gmccowan@telus.net; Parkbridge Lifestyle Communities Inc., Telephone: (403)
215-2100, Facsimile: (403) 215-2115, 700, 505 - 3rd Street SW, Calgary, AB,
T2P 3E6

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PARKBRIDGE LIFESTYLE COMMUNITIES INC.

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