FREDERICTON, May 7, 2015 /CNW/ – Plaza Retail REIT (TSX:PLZ.UN) (“Plaza”) today announced its results for the quarter ended March 31, 2015.
Plaza reported funds from operations (“FFO”) of $7.5 million for the quarter ended March 31, 2015, an increase of 36.2% over the prior year. FFO per unit was $0.08 for the quarter ended March 31, 2015 ($0.08 per unit diluted), an increase of 29.0% over the prior year. FFO was positively impacted by growth in net property operating income, a decrease in administrative expenses, and a decrease in finance costs.
During the quarter, Plaza completed the purchase of interests of certain equity partners in eight properties located in New Brunswick and Prince Edward Island. The net purchase price (after assumption of debt) of $6.1 million was satisfied by the issuance of 1,319,000 Class B exchangeable limited partnership (“LP”) units of a subsidiary LP at a price of $4.60 per unit, which are exchangeable at any time into units of Plaza on a one-for-one basis. Plaza owned interests in each of the eight properties of between 43% and 85%, and now owns between 86% and 100% of each. Based on the purchase price and the unit price used to issue the exchangeable units, this transaction is accretive to Plaza.
Michael Zakuta, President and CEO said, “We are very pleased with the financial results for the first quarter of 2015. They are up significantly over the prior year and they reflect the impact of the growth in our business and the substantial refinancing program undertaken in 2014. Our results continue to confirm our business strategy that is based on creating value for our unitholders by being opportunistic and by developing and redeveloping high quality retail projects leased to national retailers and financing those projects with long term fixed rate financing.”
Plaza is an open-ended real estate investment trust and is a leading retail property owner and developer, particularly in Eastern Canada. Plaza’s current portfolio includes interests in 306 properties totaling approximately 6.7 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 90% national tenants.
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SOURCE Plaza Retail REIT