Lakeview Hotel Invest Corp (TSXV:LHR.UN)
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WINNIPEG, April 30, 2012 /CNW/ - Lakeview Hotel Real Estate Investment Trust ("Lakeview REIT") is pleased to report its financial results for the year ended December 31, 2011. The following comments in regard to the financial results should be read in conjunction with the December 31, 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.
The uptrend in operating results that began in 2010 continued throughout 2011. Lakeview REIT experienced a 14.7% increase in room revenues at its hotels in 2011. Rebranding of Lakeview REIT's restaurant facilities to Roustabouts Restaurants and Bars, with accompanying renovations, led to a 21.1% increase in food and beverage revenues. Operating efficiencies that have been put in place at Lakeview REIT properties allowed the revenue increases to translate into significant improvements in Distributable Income, Funds from Operations, and Adjusted Funds from Operations.
The improvements in operating results that the REIT enjoyed in 2011 are expected to continue. Economic activity in Alberta and Northern British Columbia continues to be very robust. This activity has translated into increased occupancy levels in many of the markets that Lakeview REIT operates its hotels. In some cases the improvement has been dramatic. While natural gas prices are down, crude oil prices and prices for liquid rich gases are very strong and drilling for these commodities has been increasing in many markets where Lakeview REIT has its hotels. Performance varies widely from market to market as demand in any given market may move up or down based on levels of drilling activity, pipeline construction and other drivers for hotel room demand. However, the overall trend has been and continues to be very positive.
Lakeview REIT is now clearly cash flow positive. It is anticipated that surplus cash flow 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 and year ended December 31, 2011 and the comparable periods in 2010:
Three monthsended Year ended
December31 December 31
2011 2010 2011 2010
$ $ $ $
Hospitality Revenue
Room 9,065,600 7,706,385 35,392,992 30,863,747
Food & Beverage 1,066,840 852,082 3,551,892 2,932,247
Other 444,913 446,304 2,242,262 1,881,557
Total Revenue 10,577,353 9,004,771 41,187,146 35,677,551
Expenses 11,401,670 10,785,915 43,924,831 43,581,853
Net Income (Loss) (824,317) (1,781,144) (2,737,685) (7,904,302)
Basic and diluted income (0.042) (0.091) (0.140) (0.404)
(loss) before income tax
per unit
Reconciliation to funds
from Operations
Add (deduct)
Amortization of income 1,281,333 1,569,584 5,498,366 6,354,176
properties
Amortization of 5,077 8,214 25,361 34,416
franchise fees and
licenses
Provision for impairment - - - 1,396,062
of note receivable
Compensation Costs of - - - 124,000
Unit Options
Distributions from 384,650 122,500 791,105 534,100
Lakeview Flag Licensing
General Partnership
Distributions from 107,500 105,000 370,750 235,000
Lakeview Flag Management
General Partnership
Income from Lakeview (110,757) (134,437) (576,876) (532,124)
Flag Licensing General
Partnership
Income from Lakeview (123,702) (104,548) (475,800) (415,479)
Flag Management General
Partnership
Recovery of impaired - - (283,795) -
amounts previously
written off
Funds from Operations 719,784 (214,831) 2,611,426 (174,151)
Basic and diluted funds 0.037 (0.011) 0.134 (0.009)
from Operations per unit
Contributions to reserve (291,637) (199,177) (1,048,345) (770,056)
account
Adjusted funds from 428,147 (414,008) 1,563,081 (944,207)
Operations
Basic and diluted 0.022 (0.021) 0.080 (0.048)
adjusted funds from
Operations per unit
Reconciliation to
distributable income
Accretion on debt 342,417 302,182 1,324,396 1,170,714
component of convertible
debentures
Accretion of debentures 175,922 53,098 343,876 204,248
Accretion of mortgages 71,561 64,550 249,973 254,688
payable
Gain on disposal of 4,390 - (2,593) -
income properties
Distributable income 1,022,437 5,822 3,478,733 685,443
Basic and diluted 0.052 0.000 0.178 0.035
distributable income per
unit
Distributions 0 0 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: (204) 947-1161, Fax: (204) 957-1697,Email asenensky@lakeviewhotels.com