Plazacorp announces continued positive results

FREDERICTON, May 26 /CNW/ - Plazacorp Retail Properties Ltd. (PLZ:TSX Venture) today announced its results for the quarter ended March 31, 2010.

Michael Zakuta, Plazacorp's President and CEO, said, "We are pleased with the results for the quarter ended March 31, 2010. Currently we have 6 projects under development and 7 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 $3.2 million for the three months ended March 31, 2010, representing a 2.8% increase over $3.1 million for the three months ended March 31, 2009. FFO per share was $0.066 ($0.066 diluted) for the three months ended March 31, 2010 and 2009.

Plazacorp's Summary of FFO for the three months ended March 31, 2010, compared to the three months ended March 31, 2009 are presented below:

    
    -------------------------------------------------------------------------
                                                        3 Months    3 Months
    (000's - except per share amounts)                     Ended       Ended
    For the Periods Ended                               March 31,   March 31,
    (Unaudited)                                             2010        2009
    -------------------------------------------------------------------------
    Total revenues                                     $  13,244   $  11,926
                                                      -----------------------
                                                      -----------------------
    Basic earnings per share                           $   0.007   $   0.023
                                                      -----------------------
                                                      -----------------------
    Diluted earnings per share                         $   0.007   $   0.022
                                                      -----------------------
                                                      -----------------------

    Income and other comprehensive income              $     356   $   1,073
    Add (deduct):
    Gain on disposal of income producing properties
     and surplus lands                                       (13)       (722)
    Income tax expense                                       236         407
    Amortization                                           2,651       2,393
    Non-controlling interests                                203          88
    Interest costs                                         4,212       3,334
                                                      -----------------------

    Earnings before interest, taxes, depreciation and
     amortization (EBITDA)                                 7,645       6,573
    Add (deduct):
    Interest costs                                        (4,212)     (3,334)
    Current income tax expense                               (11)        (15)
    Non-cash debenture interest                               60           8
    Non-controlling interest adjustment to FFO              (364)       (210)
    Equity accounting adjustment to FFO                      126         133
    Corporate amortization                                    (4)         (4)
                                                      -----------------------
    Basic FFO                                              3,240       3,151
    Interest on dilutive convertible debentures
     before income tax                                         -           1
                                                      -----------------------
    Diluted FFO                                        $   3,240   $   3,152
                                                      -----------------------
                                                      -----------------------
    Basic Weighted Average Shares Outstanding             49,242      47,628
                                                      -----------------------
                                                      -----------------------
    Diluted Shares Outstanding                            49,255      47,845
                                                      -----------------------
                                                      -----------------------
    Basic FFO per share                                $   0.066   $   0.066
                                                      -----------------------
                                                      -----------------------
    Diluted FFO per share                              $   0.066   $   0.066
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    -------------------------------------------------------------------------
    

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 101 properties comprising 4.6 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.

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: on Plazacorp, visit our website at www.plaza.ca or contact: Earl Brewer, Chairman; Kim Sharpe, Director of Business Development, [phone]