Canada NewsWire
FREDERICTON, Nov. 9, 2017
Continued strategy of growth allows for 15th annual distribution increase
FREDERICTON, Nov. 9, 2017 /CNW/ - Plaza Retail REIT (TSX: PLZ.UN) ("Plaza" or the "REIT") today announced that its Board of Trustees has approved an increase in its annual distribution to unitholders to $0.28 per unit, representing a 3.7% increase. Plaza also announced its financial results for the three and nine months ended September 30, 2017.
The increased distribution will be effective for the regularly scheduled monthly distribution payment dates for 2018 beginning with the January distribution, payable February 15, 2018, in the amount of 2.33 cents per unit at each payment date, subject to Board approval at that time.
Michael Zakuta, President and CEO said, "The distribution increase represents the fifteenth consecutive annual increase since we began paying distributions in 2003. We have more than tripled our distribution over the last 15 years, as our initial 8 cents per unit distribution has grown to 28 cents per unit. This confirms our value-add business model and our ability to consistently grow our business and deliver results to our unitholders."
Financial Results Summary | ||||||
(CAD$000s, except percentages, per unit amounts and coverage ratios) |
Three Months Ended Sept 30, 2017 |
Three Months Ended Sept 30, 2016 |
Change |
Nine Months Ended Sept 30, 2017 |
Nine Months Ended Sept 30, 2016 |
Change |
Total property rental revenue |
$25,113 |
$25,585 |
- 1.8% |
$77,208 |
$74,974 |
+ 3.0% |
Total property operating expenses |
$8,805 |
$9,152 |
- 3.8% |
$28,339 |
$27,958 |
+ 1.4% |
Total NOI |
$16,308 |
$16,433 |
- 0.8% |
$48,869 |
$47,016 |
+ 3.9% |
Same-asset rental revenue |
$21,764 |
$21,925 |
- 0.7% |
$66,135 |
$66,284 |
- 0.2% |
Same-asset operating expenses |
$6,914 |
$7,163 |
- 3.5% |
$22,187 |
$22,510 |
- 1.4% |
Same-asset NOI |
$14,850 |
$14,762 |
+ 0.6% |
$43,948 |
$43,774 |
+ 0.4% |
FFO |
$9,245 |
$9,119 |
+ 1.4% |
$27,380 |
$24,031 |
+13.9% |
FFO per unit |
$0.090 |
$0.092 |
- 2.2% |
$0.268 |
$0.246 |
+ 8.9% |
FFO payout ratio |
74.8% |
70.8% |
+ 5.6% |
75.7% |
79.7% |
- 5.0% |
AFFO |
$8,556 |
$7,870 |
+ 8.7% |
$25,426 |
$21,601 |
+17.7% |
AFFO per unit |
$0.084 |
$0.079 |
+ 6.3% |
$0.249 |
$0.221 |
+12.7% |
AFFO payout ratio |
80.9% |
82.1% |
- 1.5% |
81.6% |
88.6% |
- 7.9% |
Profit and total comprehensive income |
$7,611 |
$7,389 |
+ 3.0% |
$13,917 |
$23,184 |
- 40.0% |
EBITDA |
$15,449 |
$15,753 |
- 1.9% |
$45,396 |
$43,692 |
+ 3.9% |
Total distributions to unitholders |
$6,919 |
$6,460 |
+ 7.1% |
$20,737 |
$19,149 |
+ 8.3% |
Interest coverage ratio |
2.41 x |
2.32 x |
+ 3.9% |
2.38 x |
2.15 x |
+10.7% |
Debt coverage ratio |
1.71 x |
1.69 x |
+ 1.2% |
1.69 x |
1.56 x |
+ 8.3% |
Refer to "Non-IFRS Financial Measures" below for further explanations. |
Three Months Ended September 30, 2017 Financial Highlights
Nine Months Ended September 30, 2017 Financial Highlights
Leasing and Occupancy
Acquisitions/Dispositions
Balance Sheet, Liquidity and Capital Structure
Further Information
A more detailed analysis of the REIT's financial and operating results is included in the REIT's Management's Discussion and Analysis and Condensed Interim Consolidated Financial Statements, which have been filed on SEDAR and can be viewed at www.sedar.com or on the REIT's website at www.plaza.ca.
Conference Call
Michael Zakuta, President and CEO, and Floriana Cipollone, CFO, will host a conference call for the investment community on Friday, November 10, 2017 at 10:00 a.m. ET (11:00 a.m. AT). The call-in numbers for participants are 647-427-7450 or 888-231-8191.
A replay of the call will be available until Friday, November 17, 2017. To access the replay, dial 416-849-0833 or 855-859-2056 (Passcode: 97987403). The audio replay will also be available for download on the REIT's website for 90 days following the conference call.
About Plaza
Plaza is an open-ended real estate investment trust and is a leading retail property owner and developer, particularly in Eastern Canada. Plaza's portfolio at September 30, 2017 includes interests in 295 properties totaling approximately 7.7 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. For more information, please visit www.plaza.ca.
Non-IFRS Financial Measures
This press release contains certain non-IFRS financial measures including FFO, AFFO, same-asset NOI and EBITDA. These measures are commonly used by entities in the real estate industry as useful metrics for measuring performance. However, they do not have any standardized meaning prescribed by IFRS and are not necessarily comparable to similar measures presented by other publicly traded entities. These measures should be considered as supplemental in nature and not as a substitute for related financial information prepared in accordance with IFRS. Please refer to the REIT's Management's Discussion and Analysis for a reconciliation of these non-IFRS measures to standardized IFRS measures.
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. An example of a forward looking statement in this press release is that payment of distributions at each payment date in 2018 is subject to Board approval at that time. Forward looking 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. More detailed information about risks and uncertainties that could affect Plaza is described in Plaza's Annual Information Form for the year ended December 31, 2016 and Management's Discussion and Analysis for the period ended September 30, 2017 which can be obtained on SEDAR at www.sedar.com.
The TSX does not accept responsibility for the adequacy or accuracy of this release.
SOURCE Plaza Retail REIT
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