Parkbridge income from property operations up 17%



    
    -------------------------------------------------------------------------
                                      Three months ended    Six months ended
                                                March 31            March 31
    Unaudited                          ------------------ -------------------
    ($000's, except per share amounts)    2009      2008      2009      2008
    ---------------------------------- -------- --------- --------- ---------

    Total revenues                      21,400    22,705    44,100    48,571
    Income from property operations      9,545     8,151    19,362    16,228
    Income from operations              10,010     9,221    20,178    18,338
    Funds from operations (FFO)(1)       4,756     4,580     9,864     9,579
    FFO per share - basic/diluted         0.08      0.07      0.16      0.15
    Net income                           1,562     4,257     3,966     6,757
    Net income per share -
     basic/diluted                        0.03      0.07      0.06      0.11
    -------------------------------------------------------------------------
    (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, May 6 /CNW/ - Parkbridge Lifestyle Communities Inc.
("Parkbridge" or the "Corporation"), (TSX: PRK) today announced the results
for the second quarter of its 2009 fiscal year ended March 31, 2009.
    Income from property operations rose 17% to $9.5 million for the three
months ended March 31, 2009 as compared to $8.2 million for the comparable
period in 2008 (a 19% increase for the six months ended March 31, 2009 to
$19.4 million when compared to the $16.2 million for the six months ended
March 31, 2008). Approximately half of this growth was generated from internal
sources consisting of rent increases, the lease-up of developed sites and
operational improvements and the remainder from income contributed by
properties acquired in 2009 and 2008.
    Income from home sales operations amounted to $0.5 million during the
three months ended March 31, 2009 as compared to the $1.1 million generated in
the same quarter last year ($0.8 million for the six months ended March 31,
2009 as compared to $2.1 million for the six months ended March 31, 2008).
Sales volumes and margins are lower when compared to similar periods in fiscal
2009 due to the change in the mix and timing of expansion projects and reduced
sales resulting from the challenging economic conditions.
    Funds from operations for the three months ended March 31, 2009 rose
slightly to $4.8 million ($0.08 per share) as compared to the $4.6 million
($0.07 per share) achieved during the same three month period a year earlier
($9.9 million ($0.16 per share) for the six months ended March 31, 2009 as
compared to $9.6 million ($0.15 per share) for the six months ended March 31,
2008).
    Net income for the three months ended March 31, 2009 amounted to $1.6
million ($0.03 per share) as compared to the $4.3 million ($0.07 per share)
achieved during the same three month period a year earlier ($4.0 million
($0.06 per share) for the six months ended March 31, 2009 as compared to $6.8
million ($0.11 per share for the six months ended March 31, 2008). The $2.7
million reduction in net income for the quarter ($2.8 million decrease for the
six months ended March 31, 2009) is primarily due to the absence of a one-time
future income tax recovery ($2.1 million) resulting from changes in enacted
rates and a $0.5 million increase in stock-based compensation. The increase in
the future income tax provision did not give rise to a current tax liability,
and neither of the foregoing impacted Parkbridge's cash flows from operations.

    
    Highlights

    -   Operations

        Communities continue to enjoy high occupancy levels (99% of
        Operational Sites) and tenant delinquency and default rates remain
        negligible and consistent with prior years. Lease renewals at
        Seasonal Resorts and Marinas remain at historical levels with
        approximately 94% of last year's tenants having already renewed their
        leases for the 2009 season. Rental rate increases, averaging
        approximately 5%, have been implemented across the portfolio.

    -   Lease-up and New Home Sales

        In the three months ended March 31, 2009, 29 Developed Sites were
        leased and 28 new homes were sold which compares to 47 sites leased
        and 48 homes sold in the comparable quarter in 2008 (for the six
        month period in 2009, 62 sites leased and 60 homes sold as compared
        to 117 sites leased and 121 homes sold in the same period of 2008).
        Apart from the factors previously mentioned that contributed to the
        lower sales volumes, the second quarter of the fiscal year is
        typically the Corporation's weakest period in terms of Home sales
        activity.

        The backlog of lease and Home sales commitments remains encouraging
        given the difficult economic environment. As at April 30, 2009 and
        subsequent to March 31, 2009, the Corporation closed the sale of
        16 additional new Homes and leased up a like number of Developed
        Sites. 122 lease and homes sales contracts were in hand as of
        April 30, 2009 (60 firm and 62 conditional contracts) versus
        192 contracts at this time last year (129 firm and 63 conditional
        contracts).

        Demand for Parkbridge's housing products continues to be seen in all
        of its 19 expansion projects. However, in Alberta, first time home
        buyers in Family/Seniors Communities are being more cautious in light
        of the uncertain economy and in Ontario, the time period to firm up
        conditional sales in Lifestyle Communities has been hampered by the
        customer's restricted ability to sell their current residence in a
        timely manner or at all.

        Barring any further deterioration in economic conditions, Parkbridge
        expects sales of Homes and Resort Units to improve over the coming
        months but the Corporation will not be able to make-up for the lower
        sales volumes completed year-to-date. Accordingly, sales of new Homes
        and Resort Units completed for the 2009 fiscal year are expected to
        be in the range of 250 to 325 units. This range is at or below the
        low end of previous guidance of 300 to 400 units.

    -   Expansion Projects

        During the second quarter of fiscal 2009, $5.8 million was invested
        in the 19 projects under active development. The phased build out of
        development projects resulted in the completion of 65 new Developed
        Sites during the quarter. The inventory of Developed Sites on hand
        and available for lease-up at March 31, 2009 stands at 934 Sites. For
        the remainder of the 2009 fiscal year, the Corporation anticipates
        investing a further $9.1 million in development projects.

    -   Debt Maturities

        During the quarter, all debt maturing in fiscal 2009 ($10.7 million)
        was refinanced and negotiations are in the advanced stages for the
        early renewal of the operating and acquisition facilities. As of
        March 31, 2009, $12.8 million was available under the $35 million
        operating facility (after deducting $6.3 million in letters of
        credit) and $33.4 million was available under the $40 million
        Acquisition line. Management is now focused on refinancing 2010 debt
        maturities totaling $8.6 million.
    

    "Although we have reduced our Home and Resort Unit sales projection, the
other key elements of our outlook remain unchanged as the projected rent
increases averaging 5% have been implemented and essentially full occupancy
and normal operating margins are expected to be maintained. In sum, we are
satisfied with our mid-year results and are encouraged by the apparent early
signs of economic improvement and the progress made in completing our 2009
financing plan," commented Mr. Iain Stewart, President, Western Operations and
Co-Chief Executive Officer.
    "The results of our operating properties were particularly gratifying
since they were achieved during a period that saw one of the severest economic
downturns in modern times. As we move further into the 2009 year, we believe
it will remain evident that Parkbridge's business is well suited to these
economic times, as it offers affordability and alternative choices for
community and recreational living," added Mr. David Rozycki, President,
Eastern Operations & Co-Chief Executive Officer.
    For a complete discussion of the foregoing please refer to the filings of
the Corporation's March 31, 2009 unaudited interim consolidated 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 Ontario, Alberta, Quebec and
British Columbia.
    Parkbridge now owns 76 properties containing approximately 16,800 sites
with a capacity to add more than 4,000 additional sites through expansion of
current property holdings.
    Parkbridge is listed on the Toronto Stock Exchange and its head office is
in Calgary, Alberta.


    
    CONSOLIDATED BALANCE SHEET
                                                     March 31   September 30
    ($000's)                                             2009           2008
                                                -------------- --------------
                                                                  (Unaudited)
    Assets
      Income properties                               391,943        381,057
      Development properties                           67,367         65,103
      Cash and cash equivalents                         2,127          9,243
      Accounts receivable                              13,022          5,914
      Inventory and other assets                       29,372         32,323
      Defeasance collateral                            10,646         10,931
                                                -------------- --------------
                                                      514,477        504,671
                                                -------------- --------------
                                                -------------- --------------
    Liabilities and Shareholders' Equity
      Secured debt                                    274,743        266,454
      Bank indebtedness                                22,494         26,683
      Accounts payable and other liabilities           13,783         20,773
      Deferred revenue                                 11,727          4,906
      Future income tax liability and
       deferred credit                                 15,914         14,889
                                                -------------- --------------
                                                      338,661        333,705
      Shareholders' Equity                            175,816        170,866
                                                -------------- --------------
                                                      514,477        504,571
                                                -------------- --------------
                                                -------------- --------------



    INTERIM STATEMENT OF INCOME AND FUNDS FROM OPERATIONS

                                      Three Months Ended   Six Months Ended
                                           March 31            March 31
    ($000's)                              (Unaudited)         (Unaudited)
                                      ------------------- -------------------
                                          2009      2008      2009      2008
                                      --------- --------- --------- ---------
    PROPERTY OPERATIONS
      Rental and other property
       revenues                         15,466    13,400    31,685    26,644
      Property operating expenses
       and taxes                        (5,832)   (5,409)  (12,326)  (10,764)
      Brokerage and resale income
       (loss)                              (89)      160         3       348
                                      --------- --------- --------- ---------
      Income from property operations    9,545     8,151    19,362    16,228
                                      --------- --------- --------- ---------

    HOME SALES OPERATIONS
      Home sales revenue                 4,933     7,807     9,987    18,732
      Cost of home sales                (4,139)   (6,210)   (8,413)  (15,285)
      Operating expenses                  (329)     (527)     (758)   (1,337)
                                      --------- --------- --------- ---------
      Income from home sales operations    465     1,070       816     2,110
                                      --------- --------- --------- ---------

    INCOME FROM OPERATIONS BEFORE
     THE UNDERNOTED                     10,010     9,221    20,178    18,338
                                      --------- --------- --------- ---------

      Interest expense                   3,761     3,490     7,654     6,589
      Interest income                     (140)     (112)     (253)     (272)
      General and administrative
       expenses                          1,633     1,263     2,913     2,442
      Depreciation and amortization      1,963     1,761     3,936     3,493
      Stock-based compensation             717       232       941       500
                                      --------- --------- --------- ---------
                                         7,934     6,634    15,191    12,752
                                      --------- --------- --------- ---------
    INCOME BEFORE INCOME TAXES           2,076     2,587     4,987     5,586

      Income taxes (recovery), net
       of deferred credit                  514    (1,670)    1,021    (1,171)
                                      --------- --------- --------- ---------
    NET INCOME                           1,562     4,257     3,966     6,757

      Add (Deduct):
      Depreciation on real estate
       assets                            1,963     1,761     3,936     3,493
      Stock based compensation             717       232       941       500
      Future income taxes, net of
       deferred credit                     514    (1,670)    1,021    (1,171)
                                      --------- --------- --------- ---------
    FUNDS FROM OPERATIONS                4,756     4,580     9,864     9,579
                                      --------- --------- --------- ---------
                                      --------- --------- --------- ---------

    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 Corporation's March 31,
2009 Unaudited Interim Consolidated Financial Statements, the most recent
Management's Discussion and Analysis in the interim report for the period
ended March 31, 2009, the Annual Information Form dated December 10, 2008, and
the Management's Discussion and Analysis and Audited Consolidated Financial
Statements for the year ended September 30, 2008. All reports may be viewed on
Parkbridge's 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@parkbridge.com; Mr.
Calvin Wilson, Chief Financial Officer, Telephone: (403) 215-2105, Email:
cwilson@parkbridge.com; 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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