Plazacorp announces continued growth and another strong year

FREDERICTON, NB, April 6 /CNW/ - Plazacorp Retail Properties Ltd. (PLZ:TSX Venture) today announced its results for the year ended December 31, 2009.

Michael Zakuta, Plazacorp's President and CEO, said, "We are pleased with the results for the year ended December 31, 2009. The increase in FFO and our financial results are a confirmation of Plazacorp's strategy and our ability to successfully operate our business in a year that was very challenging for our industry. These financial results led to a seventh consecutive annual dividend increase for Plazacorp shareholders. For the year ended December 31, 2009, 8 new properties became income producing. Currently we have 6 projects under development and 7 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 $13.4 million for the year ended December 31, 2009, representing a 9.7% increase over $12.2 million for the year ended December 31, 2008. FFO per share was $0.279 ($0.263 diluted) for the year ended December 31, 2009, representing a 6.5% increase over $0.262 ($0.259 diluted) for the year ended December 31, 2008.

The Corporation reported funds from operations ("FFO") of $3.3 million for the three months ended December 31, 2009, representing a 3.7% increase over $3.2 million for the three months ended December 31, 2008. FFO per share was $0.068 ($0.067 diluted) for the three months ended December 31, 2009 and 2008.

Plazacorp's Summary of FFO for the three and twelve months ended December 31, 2009, compared to the three and twelve months ended December 31, 2008 are presented below:

    
    -------------------------------------------------------------------------
    (000's - except per         3 Months    3 Months   12 Months   12 Months
     share amounts)                Ended       Ended       Ended       Ended
     For the Periods Ended      December    December    December    December
     (Unaudited)                31, 2009    31, 2008    31, 2009    31, 2008
    -------------------------------------------------------------------------
    Total revenues              $ 13,274    $ 11,903    $ 49,951    $ 47,338
                               ----------------------------------------------
                               ----------------------------------------------
    Basic earnings per share    $  0.027    $  0.031    $  0.080    $  0.127
                               ----------------------------------------------
                               ----------------------------------------------
    Diluted earnings per share  $  0.027    $  0.031    $  0.077    $  0.126
                               ----------------------------------------------
                               ----------------------------------------------

    Income and other
     comprehensive income       $  1,304    $  1,454    $  3,840    $  5,951
    Add (deduct):
    Loss (gain) on disposal
     of income producing
     properties and surplus
     lands                             8         (17)       (665)     (4,114)
    Income tax expense              (746)       (765)        112         661
    Amortization                   2,838       2,510      10,288       9,807
    Non-controlling interests        202          79         651         424
    Interest costs                 4,182       3,559      14,600      14,490
                               ----------------------------------------------

    Earnings before interest,
     taxes, depreciation and
     amortization (EBITDA)         7,788       6,820      28,826      27,219
    Add (deduct):
    Interest costs                (4,182)     (3,559)    (14,600)    (14,490)
    Current income tax expense         -           3         (44)        (42)
    Non-cash debenture interest       48          10          72          40
    Non-controlling interest
     adjustment to FFO              (459)       (200)     (1,319)     (1,021)
    Equity accounting
     adjustment to FFO               139         142         515         563
    Corporate amortization            (4)         (6)        (18)        (23)
                               ----------------------------------------------
    Basic FFO                      3,330       3,210      13,432      12,246
    Interest on dilutive
     convertible debentures
     before income tax               211          16         211          64
                               ----------------------------------------------
    Diluted FFO                 $  3,541    $  3,226    $ 13,643    $ 12,310
                               ----------------------------------------------
                               ----------------------------------------------
    Basic Weighted Average
     Shares Outstanding           48,651      47,102      48,132      46,746
                               ----------------------------------------------
                               ----------------------------------------------
    Diluted Shares
     Outstanding                  52,488      47,771      51,935      47,534
                               ----------------------------------------------
                               ----------------------------------------------
    Basic FFO per share         $  0.068    $  0.068    $  0.279    $  0.262
                               ----------------------------------------------
                               ----------------------------------------------
    Diluted FFO per share       $  0.067    $  0.067    $  0.263    $  0.259
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

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 Retail Properties Ltd. is an owner of shopping malls and strip plazas throughout Atlantic Canada, Quebec and Ontario. Plazacorp owns interests in 100 properties comprising 4.5 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

SOURCE Plaza Retail REIT

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


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