Plazacorp announces third quarter financial results



    FREDERICTON, NB, Nov. 28 /CNW/ - Plazacorp Retail Properties Ltd.
(PLZ:TSX Venture) today announced its results for the third quarter ended
September 30, 2007.
    Michael Zakuta, Plazacorp's President and CEO, said, "We are pleased with
our financial results for the period ended September 30, 2007. Year to date
FFO is up 16.7%, but there was a decrease in the third quarter FFO for two
reasons: one time defeasance costs of $220 thousand for a property
refinancing; and the effect of first quarter property sales which decreased
FFO $180 thousand for the quarter. The refinancing and the sales were
strategic moves which generated additional capital of $6.4 million for
investment in new developments. Currently we have 18 projects under
development, which upon completion, will deliver stronger FFO going forward,
and strengthen the quality of our portfolio."
    During the three months ended September 30, 2007, the Corporation grew
its portfolio by 2 properties from an interest in 83 properties with total
assets of $248 million to 85 properties with total assets of $262 million.
Subsequent to September 30, 2007 two additional properties were added to the
Company's portfolio for a total of 87 properties.
    The Corporation reported funds from operations ("FFO") of
$0.176 per share ($0.172 per share diluted) for the nine months ended
September 30, 2007, representing an increase of 9% over the $0.161 per share
($0.153 per share diluted) for the nine months ended October 31, 2006.
    The Corporation reported funds from operations ("FFO") of
$0.057 per share ($0.055 per share diluted) for the three months ended
September 30, 2007, representing a decrease of 8% from the $0.062 per share
($0.059 per share diluted) for the three months ended October 31, 2006.
    Plazacorp's Summary of FFO for the three and nine months ended
September 30, 2007, compared to the three and nine months ended October 31,
2006 including the results of discontinued operations are presented below:

    
    -------------------------------------------------------------------------
    (000's - except    3 Months       3 Months       9 Months       9 Months
    per  share            Ended          Ended          Ended          Ended
    amounts)       September 30,    October 31,  September 30,    October 31,
                           2007           2006           2007           2006

    For the Periods Ended
    -------------------------------------------------------------------------
    Total revenues     $ 10,321       $  8,678       $ 29,993       $ 24,987
                       ------------------------------------------------------
                       ------------------------------------------------------
    Basic earnings
     per share         $  0.016       $  0.009       $  0.090       $  0.041
                       ------------------------------------------------------
                       ------------------------------------------------------
    Diluted earnings
     per share         $  0.016       $  0.009       $  0.089       $  0.041
                       ------------------------------------------------------
                       ------------------------------------------------------
    Net income         $    704       $    378       $  3,935       $  1,688
    Gain on disposals
     of income
     producing
     properties and
     surplus lands         (831)           (27)        (3,619)        (1,195)
    Income tax expense      504            273            886            303
    Income tax expense
     (recovery) included
     in income from
     discontinued
     operations              (2)            55             10            139
    Amortization          2,142          1,699          6,325          5,271
    Amortization
     included in income
     from discontinued
     operations               -            118             85            368
    Non-controlling
     interests               90             78            260            180
    Financing costs       3,389          2,578          9,112          7,446
    Financing costs
     included in income
     from discontinued
     operations               -            158            115            477
                       ------------------------------------------------------
    Earnings before
     interest, taxes,
     depreciation and
     amortization
     (EBITDA)             5,996          5,310         17,109         14,677
    Less:
    Financing costs      (3,389)        (2,736)        (9,227)        (7,923)
    Current income tax
     expense                (10)            (6)           (15)           (55)
    Non-cash debenture
     interest                12             24             52             66
    Equity accounting
     and non-controlling
     interest
     adjustments to FFO     (88)            10           (230)          (164)
    Corporate
     amortization            (8)           (11)           (23)           (34)
                       ------------------------------------------------------
    Basic FFO             2,513          2,591          7,666          6,567
    Interest on
     dilutive
     convertible
     debentures              39            157            116            466
                       ------------------------------------------------------
    Diluted FFO        $  2,552       $  2,748       $  7,782       $  7,033
                       ------------------------------------------------------
                       ------------------------------------------------------
    Basic weighted
     average shares
     outstanding         44,287         41,557         43,570         40,792
                       ------------------------------------------------------
                       ------------------------------------------------------
    Basic FFO per
     share             $  0.057       $  0.062       $  0.176       $  0.161
                       ------------------------------------------------------
                       ------------------------------------------------------
    Diluted shares
     outstanding per
     consolidated
     financial
     statements          44,912         42,307         45,369         41,332
    Dilutive effect
     on FFO of
     convertible
     debentures           1,147          4,630              -          4,633
                       ------------------------------------------------------
                       ------------------------------------------------------
    Total diluted
     weighted average
     shares outstanding  46,059         46,937         45,369         45,965
                       ------------------------------------------------------
                       ------------------------------------------------------
    Diluted FFO
     per share         $  0.055       $  0.059       $  0.172       $  0.153
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    The Company has changed the prior year's fiscal year end for financial
reporting purpose from October 31 to December 31, 2006. As a result, the
interim consolidated financial statements comparative figures and related
financial summaries will be for period ends that are different than from the
current period.
    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 87 properties comprising 4.1 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 or Kim Sharpe, Director of Business
Development, (506) 451-1826


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