Canada NewsWire
FREDERICTON, Aug. 9, 2018
FREDERICTON, Aug. 9, 2018 /CNW/ - Plaza Retail REIT (TSX: PLZ.UN) ("Plaza" or the "REIT") today announced its results for the three and six months ended June 30, 2018.
Michael Zakuta, President and CEO said, "We continue to deliver solid and sustainable results. We are unafraid of doing the right thing for our portfolio and our business even if it involves non-recurring revenues or charges. Setting aside non-recurring events, this period shows progress in the growth of our business, and our pipeline of new development and redevelopment projects remains strong."
Financial Results Summary | ||||||
(CAD$000s, except percentages, per unit amounts and coverage ratios) |
Three Months Ended June 30, 2018 |
Three Months Ended June 30, 2017 |
Change |
Six Months Ended June 30, 2018 |
Six Months Ended June 30, 2017 |
Change |
FFO 1 |
$8,518 |
$9,736 |
-12.5% |
$16,700 |
$17,989 |
-7.2% |
FFO per unit |
$0.082 |
$0.095 |
-13.7% |
$0.162 |
$0.176 |
-8.0% |
FFO payout ratio |
85.0% |
71.0% |
+19.7% |
86.5% |
76.8% |
+12.6% |
AFFO 1 |
$7,279 |
$8,952 |
-18.7% |
$14,713 |
$16,724 |
-12.0% |
AFFO per unit |
$0.070 |
$0.087 |
-19.5% |
$0.143 |
$0.164 |
-12.8% |
AFFO payout ratio |
99.5% |
77.2% |
+28.9% |
98.2% |
82.6% |
+18.9% |
Profit and total comprehensive income |
$7,327 |
$6,027 |
+21.6% |
$4,161 |
$6,306 |
-34.0% |
Total property rental revenue |
$26,260 |
$26,755 |
-1.9% |
$52,226 |
$52,095 |
+0.3% |
Total property operating expenses |
$10,135 |
$9,507 |
+6.6% |
$20,741 |
$19,534 |
+6.2% |
Total NOI |
$16,125 |
$17,248 |
-6.5% |
$31,485 |
$32,561 |
-3.3% |
Same-asset rental revenue |
$22,434 |
$22,571 |
-0.6% |
$44,898 |
$45,025 |
-0.3% |
Same-asset operating expenses |
$7,644 |
$7,718 |
-1.0% |
$15,755 |
$15,619 |
+0.9% |
Same-asset NOI 1 |
$14,790 |
$14,853 |
-0.4% |
$29,143 |
$29,406 |
-0.9% |
Committed occupancy |
95.4% |
95.9% |
-0.5% | |||
Same-asset committed occupancy |
95.2% |
96.3% |
-1.1% | |||
Distributions per unit |
$0.070 |
$0.0675 |
+3.7% |
$0.140 |
$0.135 |
+3.7% |
Total distributions to unitholders |
$7,242 |
$6,912 |
+4.8% |
$14,452 |
$13,818 |
+4.6% |
Interest coverage ratio |
2.20x |
2.46x |
-10.6% |
2.21x |
2.37x |
-6.8% |
Debt coverage ratio |
1.58x |
1.75x |
-9.7% |
1.58 x |
1.68 x |
-6.0% |
Debt to gross assets (excluding converts) |
48.8% |
48.8% |
n/c | |||
Debt to gross assets (including converts) |
53.8% |
52.7% |
+2.1% | |||
IFRS capitalization rate (for valuing investment properties) |
7.03% |
7.01% |
+0.3% |
1 Refer to "Non-IFRS Financial Measures" below for further explanations. |
Three Months Ended June 30, 2018 Financial Highlights
Six Months Ended June 30, 2018 Financial Highlights
Leasing and Occupancy
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 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, August 10, 2018 at 10:00 a.m. ET. The call-in numbers for participants are 647-427-7450 or 888-231-8191.
A replay of the call will be available until Friday, August 17, 2018. To access the replay, dial 416-849-0833 or 855-859-2056 (Passcode: 6815689). 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, focused on Ontario, Quebec and Atlantic Canada. Plaza's portfolio at June 30, 2018 includes interests in 286 properties totaling approximately 8.1 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 and same-asset NOI. 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. An example of a forward looking statement in this press release is that Plaza's deal pipeline will contribute to growth as anticipated. 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 or implied by these forward looking statements. Although the forward looking statements contained in this press release are based upon information currently available to management and what management believes are reasonable expectations and assumptions, there can be no assurances that forward looking statements will prove to be accurate. Readers, therefore, should not place undue reliance on any such forward looking statements. Forward looking statements are based on a number of expectations and assumptions made in light of management's experience and perceptions of historical trends and current conditions including that projects will come on-line within timeframes anticipated. 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, 2017 and Management's Discussion and Analysis for the period ended June 30, 2018 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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