Plazacorp announces 2008 financial results



    FREDERICTON, April 7 /CNW/ - Plazacorp Retail Properties Ltd. (PLZ:TSX
Venture) today announced its results for the year ended December 31, 2008.
    Michael Zakuta, Plazacorp's President and CEO, said, "We are pleased with
the results for the year ended December 31, 2008. The increase in FFO and our
financial results are a confirmation of Plazacorp's strategy and our ability
to successfully operate our business in today's economic environment. For the
year ended December 31, 2008, 9 new properties became income producing.
Currently we have 7 projects under development and two land assemblies in
progress, which upon completion will deliver stronger FFO going forward and
strengthen the quality of our portfolio."
    The Corporation reported funds from operations ("FFO") of $12.3 million
for the year ended December 31, 2008, representing an 18.0% increase over
$10.4 million for the year ended December 31, 2007. FFO per share was $0.263
($0.260 diluted) for the year ended December 31, 2008, representing an 11.3%
increase over $0.236 ($0.231 diluted) for the year ended December 31, 2007.
    The Corporation reported funds from operations ("FFO") of $3.2 million
for the three months ended December 31, 2008, representing a 17.1% increase
over $2.8 million for the three months ended December 31, 2007. FFO per share
was $0.069 ($0.068 diluted) for the three months ended December 31, 2008,
representing a 13.7 % increase over $0.060 ($0.059 diluted) for the three
months ended December 31, 2007.
    Plazacorp's Summary of FFO for the three and twelve months ended December
31, 2008, compared to the three and twelve months ended December 31, 2007,
including the results of discontinued operations are presented below:

    
    -------------------------------------------------------------------------
                               3 Months    3 Months    12 Months   12 Months
    (000's - except per           Ended       Ended        Ended       Ended
     share amounts)            December    December     December    December
    For the Periods Ended      31, 2008    31, 2007     31, 2008    31, 2007
    -------------------------------------------------------------------------
    Total revenues            $  11,903   $  10,927    $  47,338   $  40,920
                             ------------------------------------------------
                             ------------------------------------------------
    Basic earnings (loss)
     per share                $   0.031   $  (0.007)   $   0.128   $   0.082
                             ------------------------------------------------
                             ------------------------------------------------
    Diluted earnings
     (loss) per share         $   0.031   $  (0.007)   $   0.126   $   0.081
                             ------------------------------------------------
                             ------------------------------------------------

    Income (loss) and
     other comprehensive
     income                   $   1,468   $    (330)   $   5,982   $   3,605
    Add:
    (Gain) loss on disposal
     of income producing
     properties and surplus
     lands                          (17)        549       (4,114)     (3,072)
    Income tax expense
     (recovery)                    (756)        277          683       1,165
    Income tax recovery
     included in income
     from discontinued
     operations                       -         (40)           -         (30)
    Amortization                  2,510       2,308        9,807       8,633
    Amortization included
     in income from
     discontinued operations          -          13            -          98
    Non-controlling interests        79          67          424         327
    Interest costs                3,559       3,357       14,490      12,469
    Interest costs included
     in income from
     discontinued operations          -           -            -         115
                             ------------------------------------------------
    Earnings before interest,
     taxes, depreciation and
     amortization (EBITDA)        6,843       6,201       27,272      23,310
    Less:
    Interest costs               (3,559)     (3,357)     (14,490)    (12,584)
    Current income tax
     (expense) recovery               3         (28)         (42)        (44)
    Non-cash debenture interest      10          12           40          64
    Non-controlling interest
     adjustment to FFO             (199)       (199)      (1,020)       (828)
    Equity accounting
     adjustment to FFO              143         140          563         538
    Corporate amortization           (6)         (8)         (23)        (31)
                             ------------------------------------------------
    Basic FFO                     3,235       2,761       12,300      10,425
    Interest on dilutive
     convertible debentures
     before income tax               16          38           64         151
                             ------------------------------------------------
    Diluted FFO               $   3,251   $   2,799    $  12,364   $  10,576
                             ------------------------------------------------
                             ------------------------------------------------
    Basic Weighted
    Average Shares
     Outstanding                 47,102      45,707       46,746      44,109
                             ------------------------------------------------
                             ------------------------------------------------
    Diluted Shares
     Outstanding                 47,771      47,347       47,534      45,792
                             ------------------------------------------------
                             ------------------------------------------------
    Basic FFO per share       $   0.069   $   0.060    $   0.263   $   0.236
                             ------------------------------------------------
                             ------------------------------------------------
    Diluted FFO per share     $   0.068   $   0.059    $   0.260   $   0.231
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    A copy of Plazacorp's quarterly report can be found on the Corporation's
web site at www.plaza.ca and can be found on www.sedar.com
    Plazacorp also announced that the Board of Directors has extended, until
further notice, the previously announced partial waiver of its blackout
policy. As a result, insiders, directors, officers and employees will be
permitted to purchase securities of Plazacorp provided that they are not in
possession of material undisclosed information relating to Plazacorp Retail
Properties and during certain periods such as when quarterly or annual
financial statements are being prepared.

    Plazacorp Retail Properties Ltd. is an owner of shopping malls and strip
plazas throughout Atlantic Canada, Quebec and Ontario. Plazacorp, as at April
7, 2009, owns interests in 97 properties comprising 4.3 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.

    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.
    %SEDAR: 00012014E




For further information:

For further information: on Plazacorp, visit our website at www.plaza.ca
or: Earl Brewer, Chairman; Kim Sharpe, Director of Business Development, (506)
451-1826


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