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