Sterling Centrecorp Announces Fourth Quarter and Annual Results for 2006

    Listed TSX: SCF (Sterling Centrecorp Inc.)

    TORONTO, March 5 /CNW/ - Sterling Centrecorp Inc. (the "Company") today
announced financial results for the fourth quarter and year ended December 31,


                              Three months ended             Year ended
                                 December 31,                December 31,
     OPERATIONS               2006          2005          2006          2005

     revenues         $ 13,305,374  $ 23,168,724  $ 61,012,258  $ 74,067,042
    Net operating
     income           $  1,762,790  $ 12,325,972  $ 16,015,281  $ 29,477,774
    Income (loss)
     from equity-
     investments      $     (6,589) $    284,035  $    (42,973) $  2,069,896
    Gain (loss) on
     sale of real
     estate           $    (38,836) $          -  $ 16,888,954  $          -
    Gain on sale
     of investment    $          -  $          -  $  1,870,626  $          -
    Provision for
     impairment in
     value of real
     estate           $  2,846,000  $          -  $  2,846,000  $          -
     interests        $ (1,250,280) $  6,297,124  $ 12,409,447  $ 15,182,369
    Net income
     (loss) from
     operations       $ (3,367,211) $  1,961,382  $  4,917,401  $   (638,354)
    Net income from
     operations       $    470,509  $  3,973,397  $ 10,905,010  $  4,827,961
    Net income
     (loss) for
     the period       $ (2,896,702) $  5,934,779  $ 15,822,411  $  4,189,607
    Basic net
     income (loss)
     per share        $      (0.08) $       0.18  $       0.45  $       0.12

                                                           As At December 31,
    BALANCE SHEETS SUMMARY                                2006          2005
    Total assets excluding restricted cash and
     cash equivalents                             $279,942,365  $281,754,332
    Restricted cash and cash equivalents          $  1,568,479  $    581,352
    Total debt on real estate, loans and
     debentures payable                           $165,106,680  $187,642,241

    For the year ended December 31, 2006, the Company reported an increase in
net income of $11.6 million to $15.8 million, or $0.45 per share, compared
with $4.2 million, or $0.12 per share, for fiscal year 2005. This increase is
primarily attributable to the $20.2 million of gain on sale of real estate
property and disposition of investments, net of the non-controlling interests'
share, and was partially offset by a $2.8 million impairment loss recorded in
the fourth quarter of 2006, of which $1.5 million (US$ 1.4 million) was
allocated to non-controlling interests. In 2005, the Company recorded a gain
on sale of a real estate property of $4.4 million and income from
equity-accounted investments of $2.1 million.

    In addition to the above dispositions of real estate property and
investments, during 2006, the Company completed the following significant

    -   Acquired Gainesville Town Center, a 142,288 square-foot shopping
        center, located in Gainesville, Georgia;
    -   Participated in a joint venture to acquire and develop the Faubourg
        Boisbriand Shopping Centre project to comprise approximately
        1.2 million square feet of gross leaseable area; and
    -   Acquired an effective ownership interest in approximately 103 acres
        of development property in the US.

    The Company reported a net loss for the three months ended December 31,
2006 of $2.9 million, or $0.08 per share, compared with net income
$5.9 million, or $0.18 per share, for the same period last year. During the
fourth quarter of 2006, the Company provided an impairment loss on two
development properties of $2.8 million (US$2.5 million), of which $1.5 million
(US$ 1.4 million) was allocated to non-controlling interests. In the fourth
quarter of 2005, the Memphis Hotel, located in Memphis, Tennessee, was
disposed of. On the disposition of this property, a provision of $3.7 million
(US$3.0 million) that was recorded, as a result of an accounting change, in
the nine months ended September 30, 2005, was reversed.
    On February 8, 2007, the Company announced that it has entered into an
agreement with SCI Acquisition Inc., a company controlled by certain officers
and directors of the Company, to effect a going-private transaction whereby
SCI Acquisition Inc. will purchase, at a price of $1.26 per common share in
cash, all of the outstanding common shares not already controlled by it and
its shareholders. Further details regarding the foregoing transaction can be
found in the Company's February 8, 2007 and February 23, 2007 press releases.
    The consolidated financial statements and management's discussion and
analysis of the Company for the year ended December 31, 2006, are posted on
the Company's website and on the System for
Electronic Document Analysis and Retrieval ("SEDAR") which can be accessed
electronically at

    Except for historical information, this press release contains
forward-looking statements, which reflect the Company's current expectation
regarding future events. These forward-looking statements involve risks and
uncertainties, which may cause actual results to differ materially from those
statements. Those risks and uncertainties include, but are not limited to,
changing market conditions, and other risks detailed from time-to-time in the
Company's ongoing quarterly filings, annual information form, and annual
reports. We undertake no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise. In light of these risks, uncertainties and assumptions,
the forward-looking events in this press release might not occur.

    About Sterling Centrecorp Inc.

    Sterling Centrecorp Inc. is a North American real estate investment and
management services company specializing in the retail property sector, which
is traded on the Toronto Stock Exchange. The Company, through its North
American platform uncovers and secures real estate opportunities and then
aligns itself with strategic financial partners to maximize returns for all
    The Company has offices located in Toronto, Edmonton, and Montreal, and
its U.S. subsidiary has offices located in West Palm Beach, Charlotte, Dallas,
San Antonio, and Scottsdale.

    %SEDAR: 00001115E

For further information:

For further information: Sterling Centrecorp Inc. - Media contact:
Mansfield Communications Inc., Kate Langan, Telephone (416) 599-0024,; Sterling Centrecorp Inc. - Company contacts: A. David
Kosoy, Co-Chairman & Co-Chief Executive Officer, John W. S. Preston,
Co-Chairman & Co-Chief Executive Officer, Robert S. Green, President & Chief
Operating Officer, Carol Taccone, Executive Vice President, Chief Financial
Officer, Executive Office: Sterling Centrecorp Inc., 2851 John Street, Suite
One, Markham, Ontario, Canada L3R 5R7, Tel: (905) 477-9200, Fax: (905)
477-7390; U.S. Operations: Sterling USA, Inc., One North Clematis Street,
Suite 305, West Palm Beach, Florida 33401, Tel: (561) 835-1810, Fax: (561)
833-4118; Registered Office: Sterling Centrecorp Inc., 123 Edward Street,
Suite 703, Toronto, Ontario, Canada M5G 1E2, Tel: (416) 593-4093, Fax: (416)

Organization Profile


More on this organization

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