Plazacorp announces second quarter financial results



    FREDERICTON, NB, Aug. 28 /CNW/ - Plazacorp Retail Properties Ltd.
(PLZ:TSX Venture) today announced its results for the second quarter ended
June 30, 2007.
    Michael Zakuta, Plazacorp's President and CEO, said, "We are very pleased
with our financial results for the period ended June 30, 2007. The addition of
sixteen (16) new properties over the last twelve (12) months and the resulting
financial performance is a strong confirmation of our business strategy and
our ability to source, lease, develop, finance and operate retail real estate
in Atlantic Canada, Quebec and Ontario."
    During the three months ended June 30, 2007, the Corporation grew its
portfolio by 5 properties from an interest in 78 properties with total assets
of $233 million to 83 properties with total assets of $248 million. Subsequent
to June 30, 2007 one additional property was added to the Company's portfolio
for a total of 84 properties.
    The Corporation reported funds from operations ("FFO") of $0.054 per
share ($0.052 per share diluted) for the three months ended June 30, 2007,
representing an increase of 8% over the $0.050 per share ($0.048 per share
diluted) for the three months ended July 31, 2006.
    The Corporation reported funds from operations ("FFO") of $0.119 per
share ($0.115 per share diluted) for the six months ended June 30, 2007,
representing an increase of 21% over the $0.098 per share ($0.094 per share
diluted) for the six months ended July 31, 2006.
    Plazacorp's Summary of FFO for the three and six months ended June 30,
2007, compared to the three and six months ended July 31, 2006 including the
results of discontinued operations are presented below:

    
    -------------------------------------------------------------------------
    (000's - except per            Three       Three         Six         Six
    share amounts)                Months      Months      Months      Months
    For the Periods                Ended       Ended       Ended       Ended
    then Ended                   June 30,    July 31,    June 30,    July 31,
                                    2007        2006        2007        2006
    -------------------------------------------------------------------------
    Total revenues             $   9,937   $   8,230  $   19,670  $   16,309
                              -----------------------------------------------
                              -----------------------------------------------
    Basic earnings per share   $   0.004   $   0.033  $    0.075  $    0.033
                              -----------------------------------------------
                              -----------------------------------------------
    Diluted earnings per
     share                     $   0.004   $   0.032  $    0.072  $    0.032
                              -----------------------------------------------
                              -----------------------------------------------

    Net income                 $     165   $   1,366  $    3,231  $    1,308
    Gain on disposals of
     income producing
     properties and surplus
     lands                            (3)     (1,169)     (2,790)     (1,168)
    Income tax expense               124         100         383          30
    Income tax expense
     (recovery) included in
     income from
     discontinued operations         (16)         43          12          84
    Amortization                   2,087       1,617       4,183       3,572
    Amortization included
     in income from
     discontinued operations           -         127          85         251
    Non-controlling interests         90          85         170         102
    Financing costs                2,954       2,486       5,723       4,869
    Financing costs included
     in income from
     discontinued operations           -         159         115         319
                              -----------------------------------------------
    Earnings before interest,
     taxes, depreciation and
     amortization (EBITDA)         5,401       4,814      11,112       9,367
    Less:
    Financing costs               (2,954)     (2,645)     (5,838)     (5,188)
    Current income tax expense        (8)        (14)         (6)        (49)
    Non-cash debenture interest       19          22          40          42
    Equity accounting and
     non-controlling interests
     adjustments to FFO              (76)        (98)       (142)       (174)
    Corporate amortization            (8)        (11)        (15)        (23)
                              -----------------------------------------------
    Basic FFO                      2,374       2,068       5,151       3,975

    Interest on dilutive
     convertible debentures           90         161         178         320
                              -----------------------------------------------

    Diluted FFO                $   2,464   $   2,229  $    5,329  $    4,295
                              -----------------------------------------------
                              -----------------------------------------------

    Basic weighted average
     shares outstanding           43,640      41,013      43,206      40,400
                              -----------------------------------------------
                              -----------------------------------------------
    Basic FFO per share        $   0.054   $   0.050  $    0.119  $    0.098
                              -----------------------------------------------
                              -----------------------------------------------
    Diluted shares
     outstanding per
     consolidated financial
     statements                   44,324      46,374      46,539      41,004
    Dilutive effect of
     convertible debentures        2,647           -           -       4,692
                              -----------------------------------------------
    Total diluted weighted
     average shares
     outstanding                  46,971      46,374      46,539      45,696
                              -----------------------------------------------
                              -----------------------------------------------
    Diluted FFO per share      $   0.052   $   0.048  $    0.115  $    0.094
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    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 then for the
current period being reported upon.
    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 84 properties comprising 4.0 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


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890