FREDERICTON, NB, Feb. 27, 2014 /CNW/ - Plaza Retail REIT (successor to
Plazacorp Retail Properties Ltd.) (TSX: PLZ.UN) ("Plaza") today
announced its results for the year ended December 31, 2013.
Plaza had four significant events that contributed to our success during
2013. Plaza (1) converted to a REIT structure; (2) acquired KEYreit
for $348,000,000; (3) graduated to the TSX; and (4) announced the 11th annual increase in distributions to 24¢ per unit for 2014. These
activities created significant one-time costs. Excluding these costs,
our funds from operations per share would have been $0.278 for the
year, compared to $0.264 for the prior year, an increase of 5.3%.
Including these one-time costs, Plaza reported funds from operations
("FFO") of $19.3 million, an increase of 19.0% over the same period in
the prior year. FFO per share was $0.260 for the year ended December
31, 2013 ($0.260 per share diluted) compared to $0.264 per share for
the year ended December 31, 2012 ($0.264 per share diluted). FFO was
positively impacted by growth in total net property operating income
and same-asset net property operating income as well as net property
operating income from the acquisition of KEYreit. These were partly
offset by: (i) an increase in administrative expenses, some of which
are one-time in nature (relating to the integration of KEYreit, the
move to the TSX and the conversion to a REIT structure); and (ii) an
increase in finance costs mainly related to the acquisition of KEYreit.
For the quarter ended December 31, 2013, Plaza reported FFO of $4.9
million, an increase of 18.1% over the same period in the prior year.
FFO per share was $0.057 for the quarter ended December 31, 2013
($0.057 per share diluted) compared to $0.064 per share for the quarter
ended December 31, 2012 ($0.064 per share diluted). Excluding the
one-time administrative expenses, FFO per share would have been $0.067,
compared to $0.064 per share for the prior year, or a 4.7% increase.
Overall, Plaza recorded a loss for the year ended December 31, 2013 of
$13.1 million compared to a profit of $47.1 million for the prior
year. Included in this loss are a non-cash negative fair value
adjustment to investment properties of $24.0 million, the one-time
administrative costs mentioned previously of $1.4 million and $1.6
million of debenture issuance costs required to be expensed under
accounting standards.
Michael Zakuta, President and CEO said, "2013 was a transformative
year. We are very pleased with our accomplishments. Plaza's success
is a confirmation of our value-added and opportunity-driven strategy."
Plaza's summary of FFO is presented below:
|
|
3 Months
Ended
December 31,
2013
|
3 Months
Ended
December 31,
2012
|
12 Months
Ended
December 31,
2013
|
12 Months
Ended
December 31,
2012
|
(000s - except per share amounts)
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
|
|
|
|
|
|
Profit (loss) for the period attributable to shareholders
|
$
|
(9,204)
|
$
|
1,058
|
$
|
(11,591)
|
$
|
43,598
|
Add (deduct):
|
|
|
|
|
|
|
|
|
Loss (gain) on disposal of investment properties and land
|
|
(15)
|
|
51
|
|
90
|
|
43
|
Transaction-related costs on acquisition of KEYreit
|
|
-
|
|
-
|
|
9,061
|
|
-
|
Deferred income taxes
|
|
(3,553)
|
|
(72)
|
|
668
|
|
13,176
|
Tax (refundable tax ) on disposals
|
|
(256)
|
|
835
|
|
(882)
|
|
835
|
Fair value adjustment to investment properties
|
|
18,082
|
|
4,168
|
|
23,989
|
|
(34,603)
|
Fair value adjustment to investments
|
|
839
|
|
(3,236)
|
|
(98)
|
|
(9,973)
|
Fair value adjustment to convertible debentures
|
|
(266)
|
|
547
|
|
(1,628)
|
|
673
|
Equity accounting adjustment
|
|
(16)
|
|
(27)
|
|
558
|
|
(48)
|
Non-controlling interest adjustment
|
|
(2,388)
|
|
789
|
|
(2,479)
|
|
2,542
|
Basic FFO
|
$
|
3,223
|
$
|
4,113
|
$
|
17,688
|
$
|
16,243
|
Adjustment for debenture issuance costs
|
|
1,634
|
|
-
|
|
1,634
|
|
-
|
Basic FFO - adjusted
|
$
|
4,857
|
$
|
4,113
|
$
|
19,322
|
$
|
16,243
|
Interest on dilutive convertible debentures
|
|
-
|
|
-
|
|
-
|
|
-
|
Diluted FFO - adjusted
|
$
|
4,857
|
$
|
4,113
|
$
|
19,322
|
$
|
16,243
|
Basic Weighted Average Shares Outstanding
|
|
85,359
|
|
63,833
|
|
74,426
|
|
61,447
|
Diluted Weighted Average Shares Outstanding
|
|
85,359
|
|
63,833
|
|
74,426
|
|
61,447
|
Basic and diluted FFO per share - adjusted
|
$
|
0.057
|
$
|
0.064
|
$
|
0.260
|
$
|
0.264
|
A copy of Plaza's annual report can be found on the Company's web site
at www.plaza.ca or on SEDAR at www.sedar.com.
Plaza Retail REIT is a leading retail property owner and developer,
particularly in Eastern Canada. Plaza has an entrepreneurial focus with
strong "value-add" capabilities. Plaza's current portfolio includes
interests in 334 properties totaling approximately 6.6 million square
feet across Canada and additional lands held for development. Plaza's
properties include a mix of strip plazas, stand-alone small box retail
outlets and enclosed shopping centres, anchored by approximately 89%
national tenants. Total assets have reached almost $1 billion. Plaza is
fully internalized, therefore providing unitholders directly with the
synergies that come with an internalized management structure. Plaza
has proven its strong "value-add" capabilities to develop, redevelop
and acquire retail real estate throughout Canada. Plaza has a strong
track record of generating growth in distributions, having increased
its distributions at least once every year in the last 11 years.
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 nor its Regulation Services Provider (as that term is
defined in policies of the TSX) accepts responsibility for the adequacy
or accuracy of this release.
SOURCE Plaza Retail REIT