Lakeview Hotel REIT Reports 2nd quarter Financial Results

WINNIPEG, Aug. 29, 2011 /CNW/ -- 
/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTIBUTION TO U.S.
 NEWS WIRE SERVICES/


WINNIPEG, Aug. 29, 2011 /CNW/ - Lakeview Hotel Real Estate Investment
 Trust ("Lakeview REIT") is pleased to report its financial results for
 the quarter ended June 30, 2011.  The following comments in regard to
 the financial results should be read in conjunction with the June 30,
 2011 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.


Lakeview REIT saw increases in year-over-year revenues during the
 quarter and the strong upward trend that Lakeview REIT has enjoyed
 since March 2010 remains intact.  Occupancy increased by 6.6% in the
 second quarter of 2011 vs. the second quarter of 2010.  RevPar was up
 by 4.8%.  Year-to-date through June 30(th), occupancy is up 14.2% and RevPar is up by 12.8%.  For the second
 consecutive quarter, Lakeview REIT generated positive distributable
 income.  Through the first six months of 2011, distributable income
 totalled $880,623.  This represents an increase of $1,423,029 from the
 same period in 2010.


Improvements in operating revenues have continued into the third quarter
 of 2011 and forecasts for drilling activity remain very positive going
 into the fourth quarter and beyond.  Recent turmoil in world equity
 markets could potentially lead to lower commodity prices and result in
 revisions to drilling plans, but at this point the outlook looks
 positive and the strong upward trend is expected to continue.


Following is a comparison of the operating results for the three and six
 months ended June 30, 2011 and the three and six months ended June 30,
 2010:



                           Three months ended              Six months ended

                                    June 30                       June 30

                           2011           2010           2011           2010

Hospitality                        
Revenue                                                                    

  Room                 7,929,387      7,511,982     16,300,527     14,342,859

  Food &                782,130
  Beverage                             734,455       1,578,967      1,412,571

  Other                 707,103        428,931       1,168,964       956,358

Total Revenue          9,418,620      8,675,368     19,048,458     16,711,788

Expenses             (10,550,813)   (10,393,419)   (21,275,003)   (20,557,217)

Net Income           (1,132,193)   
(Loss)                              (1,718,051)    (2,226,545)    (3,845,429)

Basic and               (0.058)    
diluted income
(loss) before
income tax per
unit                                   (0.088)        (0.114)        (0.197)

Reconciliation                     
to funds from
Operations                                                                 

Add (deduct)                                                               

Amortization           1,415,694   
of income
properties                            1,605,202      2,857,238      3,218,142

Amortization              7,099    
of franchise
fees and
licenses                                 8,734         15,208         17,468

Distributions                      
from Lakeview
Flag Licensing
General
Partnership              37,485         19,600        296,205         49,000

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

Income from            (136,443)   
Lakeview Flag
Licensing
General
Partnership                           (127,725)      (284,289)      (243,104)

Income from            (106,504)   
Lakeview Flag
Management
General
Partnership                           (102,265)      (219,022)      (194,604)

Recovery of            (177,726)   
expense on
amount
previously
written off                                 -        (177,726)            -

Funds from              (92,588)   
Operations                            (314,505)       364,319       (998,527)

Basic and               (0.005)    
diluted funds
from
Operations per
unit                                   (0.016)          0.019        (0.051)

Contributions          (186,413)   
to reserve
account                               (180,754)      (368,259)      (338,374)

Adjusted funds         (279,001)   
from
Operations                            (495,259)       (3,940)     (1,336,901)

Basic and               (0.014)    
diluted
adjusted funds
from
Operations per
unit                                   (0.025)        (0.000)        (0.068)

Reconciliation                     
to
distributable
income                                                                     

Accretion on            321,671    
debt component
of convertible
debentures                             284,647        641,512        568,067

Accretion of             55,972    
debentures                              50,372        110,488         99,433

Accretion of             51,420    
mortgages
payable                                 63,731        115,270        126,995

Loss on                      -     
disposal of
income
properties                                  -          17,293             -

Distributable           150,062    
income                                 (96,509)       880,623       (542,406)

Basic and                 0.008    
diluted
distributable
income per
unit                                   (0.005)          0.045        (0.028)

Distributions                -              -              -              -





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. 


 


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p Keith Levit, President, or Avrum Senensky, Executive Vice Presidentbr/ Tel: [phone], Fax: [phone], Email a href="mailto:[e-mail]"[e-mail]/a /p 

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