PLAZACORP ANNOUNCES SOLID SECOND QUARTER

FREDERICTON, Aug. 25 /CNW/ - Plazacorp Retail Properties Ltd. (PLZ:TSX Venture) today announced its results for the quarter ended June 30, 2010.

Michael Zakuta, Plazacorp's President and CEO, said, "We are pleased with the results for the quarter ended June 30, 2010. Currently we have 6 projects under development and 8 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 $6.3 million for the six months ended June 30, 2010, compared to $6.4 million for the six months ended June 30, 2009. FFO per share was $0.128 ($0.128 diluted) for the six months ended June 30, 2010 compared to $0.134 ($0.134 diluted) for the six months ended June 30, 2009.

The Corporation reported funds from operations ("FFO") of $3.1 million for the three months ended June 30, 2010, representing a 5.5% decrease over $3.3 million for the three months ended June 30, 2009. FFO per share was $0.063 ($0.063 diluted) for the three months ended June 30, 2010 compared to $0.068 ($0.068 diluted) for the three months ended June 30, 2009.

Plazacorp's Summary of FFO for the three and six months ended June 30, 2010, compared to the three and six months ended June 30, 2009 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,
    (Unaudited)                     2010        2009        2010        2009
    -------------------------------------------------------------------------
    Total revenues              $ 12,895    $ 12,219    $ 26,140    $ 24,145
                                ---------------------------------------------
                                ---------------------------------------------
    Basic earnings per share    $  0.006    $  0.015    $  0.013    $  0.037
                                ---------------------------------------------
                                ---------------------------------------------
    Diluted earnings per share  $  0.006    $  0.015    $  0.013    $  0.037
                                ---------------------------------------------
                                ---------------------------------------------

    Income and other
     comprehensive income       $    281    $    708    $    637    $  1,781
    Add (deduct):
    Loss (gain) on disposal
     of income producing
     properties and surplus
     lands                            (4)         19         (16)       (703)
    Income tax expense               167          76         404         483
    Amortization                   2,615       2,499       5,266       4,892
    Non-controlling interests         58          81         260         169
    Interest costs                 4,277       3,453       8,489       6,786
                                ---------------------------------------------

    Earnings before interest,
     taxes, depreciation and
     amortization (EBITDA)         7,394       6,836      15,040      13,408
    Add (deduct):
    Interest costs                (4,277)     (3,453)     (8,489)     (6,786)
    Current income tax expense       (11)        (15)        (22)        (30)
    Non-cash debenture interest       60           8         119          16
    Non-controlling interest
     adjustment to FFO              (198)       (217)       (562)       (427)
    Equity accounting
     adjustment to FFO               134         117         261         249
    Corporate amortization            (4)         (4)         (9)         (8)
                                ---------------------------------------------
    Basic FFO                      3,098       3,272       6,338       6,422
    Interest on dilutive
     convertible debentures
     before income tax                 -           -           -           -
                                ---------------------------------------------
    Diluted FFO                 $  3,098    $  3,272    $  6,338    $  6,422
                                ---------------------------------------------
                                ---------------------------------------------
    Basic Weighted Average
     Shares Outstanding           49,463      47,983      49,353      47,807
                                ---------------------------------------------
                                ---------------------------------------------
    Diluted Shares
     Outstanding                  49,475      48,125      49,364      47,971
                                ---------------------------------------------
                                ---------------------------------------------
    Basic FFO per share         $  0.063    $  0.068    $  0.128    $  0.134
                                ---------------------------------------------
                                ---------------------------------------------
    Diluted FFO per share       $  0.063    $  0.068    $  0.128    $  0.134
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

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 103 properties comprising 4.7 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.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts 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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