Lakeview Hotel REIT Reports 3rd quarter Financial Results

    




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

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

 During the third quarter of 2011 Lakeview REIT enjoyed exceptional  year-over-year revenue growth.  Hotel occupancies increased from 61.36%  in the third quarter of 2010 to 72.39% in the third quarter of 2011.   Year-over-year the RevPar increased by 12.8%.  Overall revenues  increased by 16% or $1.6 million.  RevPar for the quarter was the  highest quarterly RevPar achieved by the REIT in five years.  Positive  net income was generated for the first time since the third quarter of  2008. 

 There has been an almost complete reversal of the conditions that led to  the earlier decline in revenues for Lakeview REIT.  Regulatory changes  and royalty changes in Western Canada combined with technological  improvements which have made previously abandoned or never drilled  fields financially viable have set off a new boom in drilling  activity.  Lakeview REIT has been a major benefactor of that activity  with hotels in many resource driven Western Canadian markets. 

 Markets experiencing exceptional improvements in operating results in  the third quarter of 2011 included Drayton Valley, Slave Lake and  Edson, Alberta and Fort Saint John, British Columbia.  In recent months  there has been a near complete reversal of fortunes in these markets. 

 Business in the fourth quarter has continued to be robust, significantly  greater than the levels achieved in the fourth quarter of 2011.  The  forecast for drilling activity remains very strong going into 2012,  boding very well for the prospects for Lakeview REIT. 

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





                                Three months ended      Nine months ended
                                   September 30           September 30

                                 2011        2010        2011        2010

    Hospitality Revenue                                                 

      Room                   10,026,865  8,814,503  26,327,392   23,157,362

      Food & Beverage          906,085     667,594   2,485,052    2,080,165

      Other                    628,385     478,895   1,797,349    1,435,253

    Total Revenue            11,561,335  9,960,992  30,609,793  26,672,780

    Expenses                 11,248,158 12,238,721  32,523,161  32,795,938

    Net Income (Loss)          313,177  (2,277,729) (1,913,368) (6,123,158)

    Basic and diluted income    0.016      (0.116)     (0.098)     (0.313)
    (loss) before income tax
    per unit

    Reconciliation to funds                    -                       -
    from Operations

    Add (deduct)                                                        

    Amortization of income   1,359,795   1,566,450   4,217,033   4,784,592
    properties

    Amortization of             5,076       8,734      20,284      26,202
    franchise fees and
    licenses

    Provision for impairment       -     1,396,062         -     1,396,062
    of note receivable

    Compensation Costs of          -       124,000         -       124,000
    Unit Options

    Distributions from         110,250     362,600     406,455     411,600
    Lakeview Flag Licensing
    General Partnership

    Distributions from         160,000     130,000     263,250     130,000
    Lakeview Flag Management
    General Partnership

    Income from Lakeview     (181,830)   (154,583)   (466,119)   (397,687)
    Flag Licensing General
    Partnership

    Income from Lakeview     (133,076)   (116,327)   (352,098)   (310,931)
    Flag Management General
    Partnership

    Recovery of impaired     (106,069)         -     (283,795)         -
    amounts previously
    written off

    Funds from Operations    1,527,323   1,039,207   1,891,642     40,680

    Basic and diluted funds     0.078       0.053       0.097       0.002
    from Operations per unit

    Contributions to reserve (538,331)   (232,505)   (906,590)   (570,879)
    account

    Adjusted funds from        988,992     806,702     985,052   (530,199)
    Operations

    Basic and diluted           0.051       0.041       0.050      (0.027)
    adjusted funds from
    Operations per unit

    Reconciliation to                                                   
    distributable income

    Accretion on debt          340,467     300,465     981,979     868,532
    component of convertible
    debentures

    Accretion of debentures     57,466     51,717      167,954     151,150

    Accretion of mortgages      63,142     63,143      178,412     190,138
    payable

    Gain on disposal of       (24,276)         -       (6,983)         -
    income properties

    Distributable income     1,425,791   1,222,027   2,306,414     679,621

    Basic and diluted           0.073       0.062       0.118       0.035
    distributable income per
    unit

    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.  

   

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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