Market Overview

Plaza Retail REIT Announces its First Quarter 2018 Results

Share:

Plaza Retail REIT Announces its First Quarter 2018 Results

Canada NewsWire

FREDERICTON, May 10, 2018 /CNW/ - Plaza Retail REIT (TSX:PLZ) ("Plaza" or the "REIT") today announced its results for the three months ended March 31, 2018.

Michael Zakuta, President and CEO said, "Plaza continues to be opportunistic and add value through development. Our pipeline of deals is solid and will contribute to our growth as projects come on-line in late 2018 and 2019. Our tenant base of value and necessity retailers continues to perform well."

 


Financial Results Summary

(CAD$000s, except percentages, per unit amounts

and coverage ratios)

Three Months Ended

Mar 31, 2018

Three Months Ended

Mar 31, 2017

Change

FFO 1

$8,182

$8,253

-0.9%

FFO per unit

$0.079

$0.081

-2.5%

FFO payout ratio

88.1%

83.7%

+5.3%





AFFO 1

$7,434

$7,772

-4.3%

AFFO per unit

$0.072

$0.076

-5.3%

AFFO payout ratio

97.0%

88.9%

+9.1%





Profit (loss) and total comprehensive income (loss)

$(3,166)

$279

-1,234.8%





Total property rental revenue

$25,966

$25,340

+2.5%

Total property operating expenses

$10,606

$10,027

+5.8%

Total NOI

$15,360

$15,313

+0.3%





Same-asset rental revenue

$22,731

$22,764

-0.1%

Same-asset operating expenses

$8,224

$8,053

+2.1%

Same-asset NOI 1

$14,507

$14,711

-1.4%





Committed occupancy

95.1%

96.2%

-1.1%

Same-asset committed occupancy

95.0%

96.3%

-1.3%





Distributions per unit

$0.07

$0.0675

+3.7%

Total distributions to unitholders

$7,210

$6,906

+4.4%





Interest coverage ratio

2.22 x

2.28 x

-2.6%

Debt coverage ratio

1.58 x

1.61 x

-1.9%

Debt to gross assets (excluding converts)

49.4%

48.4%

+2.1%

Debt to gross assets (including converts)

54.3%

52.2%

+4.0%





IFRS capitalization rate (for valuing investment properties)

7.03%

7.03%

- %




1 Refer to "Non-IFRS Financial Measures" below for further explanations.

 

Quarter over Quarter Financial Highlights

  • For the three months ended March 31, 2018, funds from operations ("FFO") per unit decreased to $0.079, down 2.5% from $0.081 for the same period in 2017 and adjusted funds from operations ("AFFO") per unit was $0.072, down 5.3% for the same period in 2017. Positively impacting FFO and AFFO per unit were (i) growth in net property operating income from developments/redevelopments/acquisitions (net of property dispositions), and (ii) higher other income due to an increase in development and leasing fees earned from co-owned properties. These were more than offset by (i) a decrease in same-asset net property operating income partly due to vacancies from two lease buyouts completed in 2017, and (ii) higher interest expense mainly due to timing of the issue of the Series E convertible debentures versus the redemption of the Series D convertible debentures, as well as early mortgage discharge fees paid. AFFO per unit was further impacted by higher maintenance capital expenditures and leasing costs relating to new tenancies. Excluding the non-recurring one month overlap of interest on the convertible debentures, the impact of the 2017 lease buyouts and the early mortgage discharge fees paid, FFO per unit would have been $0.084, up 3.7% from the prior year and AFFO per unit would have been $0.077, up 1.3% from the prior year;
  • Profit (loss) and total comprehensive income (loss) for the current quarter was a loss of $3.2 million compared to a profit of $279 thousand in the prior year. Profits were largely impacted by: (i) debenture issuance costs of $2.1 million for the Series E convertible debentures, which are fully expensed for accounting purposes; and (ii) a decrease in share of profit of associates from equity accounted investments of $2.1 million mainly relating to the non-cash fair value adjustment to the underlying investment properties and a fair value loss on the disposal of land at an underlying investment property;
  • Net property operating income ("NOI") was $15.4 million, up 0.3% from $15.3 million in the same period in 2017. Growth from developments/redevelopments and acquisitions were partly offset by sales of properties and a decrease in same-asset NOI; and
  • Same-asset NOI was $14.5 million compared to $14.7 million for the same period in 2017, down 1.4%, mainly due to $150 thousand bad debt expense recorded in the quarter due to a tenant going into creditor protection, as well as vacancies from two lease buyouts concluded in 2017 which negatively impact same-asset NOI by $180 thousand and vacancies at the enclosed malls. These were partly offset by new lease up and contractual rent increases in the portfolio.

View Comments and Join the Discussion!
 
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com