Plazacorp announces Q2 financial results



    FREDERICTON, Aug. 25 /CNW/ - Plazacorp Retail Properties Ltd. (PLZ:TSX
Venture) today announced its results for the six months ended June 30, 2008.
    Michael Zakuta, Plazacorp's President and CEO, said, "We are pleased with
the results for the period ended June 30, 2008. The increase in FFO is a
confirmation of our business strategy and our ability to successfully develop
and complete new development projects in a more challenging financing
environment. For the six month period ended June 30, 2008, 7 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."
    During the three months ended June 30, 2008, the Corporation grew its
portfolio to 91 properties with total assets of $298 million.
    The Corporation reported funds from operations ("FFO") of $2.98 million
for the three months ended June 30, 2008, representing a 25.5% increase over
$2.37 million for the three months ended June 30, 2007. FFO per share was
$0.064 ($0.063 diluted) for the three months ended June 30, 2008, representing
an 18.5 % increase over $0.054 ($0.052 diluted) for the three months ended
June 30, 2007.
    The Corporation reported funds from operations ("FFO") of $5.72 million
for the six months ended June 30, 2008, representing an 11.2% increase over
$5.15 million for the six months ended June 30, 2007. FFO per share was $0.123
($0.121 diluted) for the six months ended June 30, 2008, representing a 3.4 %
increase over $0.119 ($0.115 diluted) for the six months ended June 30, 2007.
    Plazacorp's Summary of FFO for the three and six months ended June 30,
2008, compared to the three and six months ended June 30, 2007, including the
results of discontinued operations are presented below:

    
    -------------------------------------------------------------------------
    (000's - except per      3 Months     3 Months     6 Months     6 Months
    share amounts)              Ended        Ended        Ended        Ended
    For the Periods Ended     June 30,     June 30,     June 30,     June 30,
                                 2008         2007         2008         2007
    -------------------------------------------------------------------------
    Total revenues           $ 11,849     $  9,937     $ 23,292     $ 19,670
                           --------------------------------------------------
                           --------------------------------------------------
    Basic earnings per
     share                   $  0.007     $  0.004     $  0.012     $  0.075
                           --------------------------------------------------
                           --------------------------------------------------
    Diluted earnings per
     share                   $  0.007     $  0.004     $  0.012     $  0.072
                           --------------------------------------------------
                           --------------------------------------------------

    Net income and
     comprehensive
     income                  $    343     $    165     $    542     $  3,231

    Loss (gain) on
     disposals of
     income producing
     properties and
     sale of surplus land          80           (3)          80       (2,790)
    Income tax expense            233          124          362          383

    Income tax expense
     included in income
     from discontinued
     operations                     -          (16)           -           12
    Amortization                2,404        2,087        4,800        4,183
    Amortization included
     in income from
     discontinued
     operations                     -            -            -           85
    Non-controlling
     interests                    115           90          215          170
    Interest costs              3,514        2,954        7,069        5,723
    Interest costs included
     in income from
     discontinued
     operations                     -            -            -          115
                           --------------------------------------------------

    Earnings before
     interest, taxes,
     depreciation and
     amortization (EBITDA)      6,689        5,401       13,068       11,112
    Less:
    Interest costs             (3,514)      (2,954)      (7,069)      (5,838)
    Current income tax
     (expense) recovery           (15)          (8)         (30)          (6)
    Non-cash debenture
     interest                      10           19           20           40
    Non-controlling interest
     adjustment to FFO           (331)        (209)        (531)        (410)
    Equity accounting
     adjustment to FFO            148          133          279          268
    Corporate amortization         (6)          (8)         (11)         (15)
                           --------------------------------------------------
    Basic FFO                    2,981       2,374        5,726        5,151
    Interest on dilutive
     convertible debentures
     before income tax              21          90           41          178
                           --------------------------------------------------
    Diluted FFO               $  3,002    $  2,464     $  5,767     $  5,329
                           --------------------------------------------------
                           --------------------------------------------------
    Basic Weighted Average
     Shares Outstanding         46,697      43,640       46,504       43,206
    Basic FFO per share       $  0.064    $  0.054     $  0.123     $  0.119
                           --------------------------------------------------
                           --------------------------------------------------
    Diluted FFO per share     $  0.063    $  0.052     $  0.121     $  0.115
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    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, as at
August 25, 2008, owns interests in 91 properties comprising 4.2 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.

    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 contact: Earl Brewer, Chairman; Kim Sharpe, Director of Business
Development, (506) 451-1826


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890