Lakeview Hotel REIT Reports 1st Quarter Financial Results

    




 /NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTIBUTION TO U.S.  NEWS WIRE SERVICES/ 

 WINNIPEG, May 25, 2012 /CNW/ - Lakeview Hotel Real Estate Investment  Trust ("Lakeview REIT") is pleased to report its financial results for  the quarter ended March 31, 2012.  The following comments in regard to  the financial results should be read in conjunction with the March 31,  2012 financial statements and Management Discussion and Analysis which  are available on the SEDAR website www.sedar.com and the Lakeview REIT website www.lakeviewreit.com. 

 The firmly entrenched uptrend in operating results that began in 2010  continued through the first quarter of 2012.  Room revenues were up by  8.4% over the first quarter of 2011.  Food and beverage revenues  increased by 28.7%, benefiting from the rebranding of restaurants to  Roustabouts Restaurants and Bars in Fort Saint John, Fort Saskatchewan  and Drayton Valley. 

 Operating efficiencies produced sharp increases in Funds from Operations  (up $743,922 to $1,200,829) and in Adjusted Funds from Operations (up  $728,364 to $1,003,425). 

 Lakeview REIT generated $1,418,611 of Distributable Income during the  quarter.  It is anticipated that surplus cash flow generated by the  REIT will be used to reduce liabilities of the REIT and for capital  improvements to its properties. 

 Following is a comparison of the operating results for the three months  ended March 31, 2012 and the comparable period in 2011: 

  





                                                        Three months ended
                                                             March 31

                                                         2012        2011

                                                           $           $

    Hospitality Revenue                                                 

      Room                                           9,073,290   8,371,140

      Food & Beverage                                1,025,674     796,837

      Other                                            477,717     461,861

    Total Revenue                                   10,576,681   9,629,838

    Expenses                                        11,653,520  10,724,190

    Net Income (Loss)                               (1,076,839) (1,094,352)

    Basic and diluted income (loss) before income      (0.055)     (0.056)
    tax per unit

    Reconciliation to funds from Operations                             

    Add (deduct)                                                        

    Amortization of income properties                1,211,294   1,441,544

    Amortization of franchise fees and licenses         5,077       8,109

    Distributions from Lakeview Flag Licensing         199,430     258,720
    General Partnership

    Distributions from Lakeview Flag Management        215,250     103,250
    General  Partnership

    Income from Lakeview Flag Licensing General      (159,987)   (147,846)
    Partnership

    Income from Lakeview Flag Management General     (121,986)   (112,518)
    Partnership

    Loss on restructuring of convertible debentures    928,590         -

    Funds from Operations                            1,200,829     456,907

    Basic and diluted funds from Operations per         0.061       0.023
    unit

    Contributions to reserve account                 (197,404)   (181,846)

    Adjusted funds from Operations                   1,003,425     275,061

    Basic and diluted adjusted funds from               0.051       0.014
    Operations per unit

    Reconciliation to distributable income                              

    Accretion on debt component of convertible         273,312     319,841
    debentures

    Accretion of debentures                            30,988      54,516

    Accretion of mortgages payable                     110,886     63,850

    Loss on disposal of income properties                  -       17,293

    Distributable income                             1,418,611     730,561

    Basic and diluted distributable income per unit     0.073       0.037

    Distributions                                          0           0

                                                                        

                                                                        

                                                                        






  

 Lakeview REIT is a real estate investment trust, which is listed on the  TSX Venture Exchange under the symbol "LHR.UN".  Lakeview REIT receives  income from ownership, management and licensing of hotel properties.   For further information on Lakeview REIT please visit our website www.lakeviewreit.com. 

 The TSX Venture Exchange nor its Regulation Service Provider (as the  term is defined in the policies of the TSX Venture Exchange) accepts  responsibility for the adequacy or accuracy of this release.  

Lakeview Hotel Real Estate Investment Trust


CONTACT:  Keith Levit, President, or Avrum Senensky, Executive VicePresidentTel: [phone], Fax: [phone],Email [e-mail] 


    

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