FREDERICTON, NB, Aug. 13, 2012 /CNW/ - Plazacorp Retail Properties Ltd. (TSXV: PLZ) today announced its results for the quarter ended June 30, 2012.
For the six months ended June 30, 2012, Plazacorp reported funds from operations ("FFO") of $7.9 million, an increase of 17.8% over the same period in the prior year. FFO per share was $0.131 for the six months ended June 30, 2012 ($0.131 per share diluted), compared to $0.132 per share for the same period in the prior year ($0.132 per share diluted). FFO was positively impacted by growth in net property operating income, savings in one-time administrative costs incurred in 2011 and a decrease in financing costs, partly offset by the net effects of the internalization of property and corporate management. FFO per share was impacted in the short term by an 18.7% increase in the weighted average shares outstanding mainly due to the issuance of shares through the equity raise in the third quarter of 2011, where not all of the funds raised have been fully deployed yet on accretive developments.
Plazacorp reported FFO of $4.1 million for the three months ended June 30, 2012, an increase of 17.0% over the same period in the prior year. FFO per share was $0.067 for the quarter ended June 30, 2012 ($0.067 per share diluted) compared to $0.068 per share for the quarter ended June 30, 2011 ($0.068 per share diluted).
Michael Zakuta, Plazacorp's President and CEO said, "We are very pleased with the financial results for the quarter. Plazacorp continues to strengthen its balance sheet as our debt to asset value is now at 43.6%. The strong growth in FFO continues to confirm our business strategy that is based on creating value for our shareholders by developing high quality retail projects leased to national retailers and financing these projects with long term fixed rate financing for terms of ten years or more."
Profit for the six months ended June 30, 2012 was $31.7 million compared to $15.2 million recorded for the same period in the prior year. Profit was mainly impacted by non-cash fair value adjustments on investment properties and convertible debentures, net of deferred taxes on those amounts, as well as the same factors described above affecting FFO.
Plazacorp's summary of FFO is presented below:
| (000s - except per share amounts and debt coverage
| 3 Months
| 3 Months
| 6 Months
| 6 Months
|Profit for the period attributable to shareholders||$ 15,855||$ 8,168||$ 30,047||$ 14,550|
|Gain on disposal of land||-||-||(8)||-|
|Deferred income tax expense||4,846||4,009||9,290||6,520|
|Fair value adjustment to investment properties||(15,066)||(9,162)||(28,427)||(15,568)|
|Fair value adjustment to investments||(2,825)||(1,345)||(4,435)||(2,327)|
|Fair value adjustment to convertible debentures||258||1,766||179||3,212|
|Net revaluation of interest rate swaps||99||71||(11)||9|
|Non-controlling interest adjustment||910||(23)||1,250||297|
|Basic and diluted FFO||$ 4,077||$ 3,484||$ 7,885||$ 6,693|
|Basic Weighted Average Shares Outstanding||60,449||51,013||60,196||50,722|
|Diluted Weighted Average Shares Outstanding||60,449||51,014||60,196||50,723|
|Basic and diluted FFO per share||$ 0.067||$ 0.068||$ 0.131||$ 0.132|
|Debt coverage ratios|
|Interest coverage ratio||2.1 times||1.9 times||2.0 times||1.8 times|
|Debt service coverage ratio||1.7 times||1.5 times||1.6 times||1.5 times|
Plazacorp Retail Properties Ltd. is an owner of shopping malls and strip plazas throughout Atlantic Canada, Quebec and Ontario. Plazacorp owns interests in 118 properties comprising 5.1 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, 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.
SOURCE: PLAZACORP RETAIL PROPERTIES LTD.
For further information:
For more information on Plazacorp, visit our website at
Floriana Cipollone, Chief Financial Officer (416) 848-4583 or Kim Sharpe, Director of Business Development at (506) 460-8261