FREDERICTON, Sept. 16, 2013 /CNW/ - Plazacorp Retail Properties Ltd. ("Plazacorp" or the "Corporation") (TSX: PLZ) is pleased to announce that it is seeing the positive impact of the acquisition of KEYreit on the Corporation. As a result, the Corporation's Board of Directors has approved an annual dividend increase to $0.24 per share, representing a 1.5 cent increase, or 6.7%. Based on the closing price of the Corporation's shares on September 13, 2013, this increased dividend represents a 5.6% yield. The dividend increase will be effective January 2014.
Michael Zakuta, Plazacorp's President and CEO said, "The timing of this dividend announcement is earlier than usual as a result of seeing the positive impact of the KEYreit acquisition. We are very pleased with the acquisition on all fronts, and it has allowed us to announce this dividend increase based on the immediate accretion. Over the longer term, we believe that we will be able to extract further value from that portfolio, including redevelopment opportunities. Refinancing opportunities over the longer term will contribute to additional accretion as well. Our track record of dividend increases confirms our ability to grow the business and deliver results to our shareholders."
Plazacorp is a mutual fund corporation that is a leading retail property owner and developer, particularly in Eastern Canada. Plazacorp's current portfolio includes interests in 347 properties totaling approximately 6.4 million square feet across Canada and additional lands held for development. Plazacorp's properties include a mix of strip plazas, stand-alone small box retail outlets and enclosed shopping centres, anchored by approximately 90% national tenants.
This press release contains forward-looking statements with respect to the Corporation and its operations, strategy, financial performance and financial condition. These statements generally can be identified by the use of forward-looking words such as "may", "will", "would", "expect", "anticipate", "intend", or "continue" or the negative thereof or similar variations. Some of the specific forward-looking statements in this press release include, but are not limited to, statements with respect to the expected continuing impact of the KEYreit acquisition on the Corporation, the opportunity to extract further value from the KEYreit properties including the possibility for future redevelopment opportunities and the refinancing opportunities that may contribute to accretion over the longer term. 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. In particular, dividend declarations and the payment of dividends are at the discretion of the Corporation's board of directors, and plans for future dividends may be revised by the board. The Corporation's dividend policy could be affected by changes in the Corporation's operating results, its capital spending programs, changes in its cash flows and changes in the tax laws, as well as by the level and timing of acquisition and investment activity. 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.
SOURCE: Plazacorp Retail Properties Ltd.
For further information:
on Plazacorp, visit our website at
or contact: Michael Zakuta, President and Chief Executive Officer, at (514) 457- 0997 or Floriana Cipollone, Chief Financial Officer, at (416) 848-4583