Plaza Centres plc - Full-Year Results

Monday, March 17th, 2014

On 17 March, Plaza Centres plc published its preliminary results for the financial year ended 31 December 2013.

Performance Review

Plaza’s revenue during 2013 declined by 3.8% to €2.17 million reflecting the lower average occupancy during the year of 81% compared to 84% in 2012. The Directors noted that the average occupancy for the retail area during 2013 was 93.81% while that of the office area was 72%. However, the average occupancy of the entire complex improved to 89% in December 2013 and remained at this level during the first two months of 2014.

Administrative, maintenance and marketing costs amounted to €0.36 million in 2013, representing a decline of 3.1% over the previous year. As such, the cost to income ratio deteriorated marginally to 33.6% compared to 33% in 2012. Earnings before interest, tax, depreciation and amortisation (EBITDA) declined by 3.9% to €1.8 million.

Depreciation was marginally lower at €0.37 million and net finance costs edged minimally higher to €0.18 million. Plaza’s profit before tax during 2013 amounted to €1.26 million representing a 5.3% decrease over the previous year’s comparable period. The tax charge for 2013 of €0.47 million is 8% below the comparable 2012 figure leading to a net profit of €0.79 million which is 3.6% below the €0.82 million profit registered in 2012. This translates into an earnings of €0.0281 per share.


The slight decline in profitability was again reflected in a marginally lower net dividend of €0.0238 per share (2012: €0.0247) as the company maintained its payout ratio at 85%. Shareholders as at close of trading on Friday 25 April 2014 will be entitled to this dividend which will paid on 5 June subject to approval by shareholders at the upcoming Annual General Meeting scheduled to be held on 30 May.


The Directors of Plaza announced that during the year the company continued to explore the feasibility and attractiveness of a number of growth options. Furthermore, Plaza continued with its office floor refurbishment programme and the final phase will be completed in 2014 with the renovation of the facades on Tower Road and Bisazza Street.

The Directors also commented that although progress on office leases was slower than expected in early 2013, the momentum increased in Q3 and Q4. In fact, the average occupancy improved to 89% in December 2013 and maintained this level in the first two months of 2014. The Directors expect occupancy to increase further by Q3 2014 as a result of current negotiations with prospective office tenants. Meanwhile, occupancy of the retail area increased to 100% during Q1 2014.


Plaza Centres plc – 2013 Preliminary Profit Statement

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