Plaza REIT completes equity purchase
This is one of the new REITs that I am looking at;it has a short quarterly report with not much detail.However it's figures seem to jive with that in the financial brokers like Yahoo Finance.It certainly could provide more operational statistics in it's report.But the important details are there.Plaza states that they develop and redevelop high quality properties and finance with long term financing and then they show some of the details below.
The first quarter
Plaza reports that their funds from operations(FFO) increased by 36% from Q1 2014 to $7.5 million or $.08 per share.This is an increase of 30% on a per share basis.Revenues increased by 20% over 2014 and operating income increased by 30%.More importantly Plaza purchased equity interests in 8 properties in New Brunswick and Prince Edward Island.They paid for this with an issuance of 1.3 million class B limited partnership shares at $4.60 per share.This was an excellent price.
Plaza owned 43 to 85% of these properties before and now they own 86 to 100% of these properties.At their purchase price Plaza believes that these properties will be accretive immediately.Also this ensures an increase of revenues in the next quarter.This keeps Plaza growing!They now have interests in 306 properties(all in N.B. and P.E.I.)and control 6.7 million square feet with an asset value of $950 million..This is more than BTB REIT,a small REIT in Quebec.It has an asset value of $620 million and controls 5 million square feet.
The Future
Plaza is an expansion-minded REIT and will continue to grow.It's debt to equity ratio is conservative(at less than 50%) and it's last equity issue was successful.The market accepts it's debt and equity issues at prices beneficial to Plaza.This blog sees little trouble in Plaza having another equity issue in 2015 or a small convertible debenture issue.Plaza could even try a small preferred share issue with a below average reasonable dividend (4.75 to 5.45%).This blog believes that Plaza has quite a few options open for new financing.
Plaza has restricted itself to the New Brunswick and P.E.I. markets.But there is no reason why it could not move to properties in western and northern Nova Scotia.Although Plaza may not wish to enter the Halifax market yet.Plaza certainly looks like a well managed REITand another good quarter should see it's share price closer to $5.00 per share.
The first quarter
Plaza reports that their funds from operations(FFO) increased by 36% from Q1 2014 to $7.5 million or $.08 per share.This is an increase of 30% on a per share basis.Revenues increased by 20% over 2014 and operating income increased by 30%.More importantly Plaza purchased equity interests in 8 properties in New Brunswick and Prince Edward Island.They paid for this with an issuance of 1.3 million class B limited partnership shares at $4.60 per share.This was an excellent price.
Plaza owned 43 to 85% of these properties before and now they own 86 to 100% of these properties.At their purchase price Plaza believes that these properties will be accretive immediately.Also this ensures an increase of revenues in the next quarter.This keeps Plaza growing!They now have interests in 306 properties(all in N.B. and P.E.I.)and control 6.7 million square feet with an asset value of $950 million..This is more than BTB REIT,a small REIT in Quebec.It has an asset value of $620 million and controls 5 million square feet.
The Future
Plaza is an expansion-minded REIT and will continue to grow.It's debt to equity ratio is conservative(at less than 50%) and it's last equity issue was successful.The market accepts it's debt and equity issues at prices beneficial to Plaza.This blog sees little trouble in Plaza having another equity issue in 2015 or a small convertible debenture issue.Plaza could even try a small preferred share issue with a below average reasonable dividend (4.75 to 5.45%).This blog believes that Plaza has quite a few options open for new financing.
Plaza has restricted itself to the New Brunswick and P.E.I. markets.But there is no reason why it could not move to properties in western and northern Nova Scotia.Although Plaza may not wish to enter the Halifax market yet.Plaza certainly looks like a well managed REITand another good quarter should see it's share price closer to $5.00 per share.
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