Press release from CNW Group
Lakeview Hotel REIT Reports 1st Quarter Financial Results
Friday, May 25, 2012
/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
|Food & Beverage||1,025,674||796,837|
|Net Income (Loss)||(1,076,839)||(1,094,352)|
|Basic and diluted income (loss) before income tax per unit||(0.055)||(0.056)|
|Reconciliation to funds from Operations|
|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 General Partnership||199,430||258,720|
|Distributions from Lakeview Flag Management General Partnership||215,250||103,250|
|Income from Lakeview Flag Licensing General Partnership||(159,987)||(147,846)|
|Income from Lakeview Flag Management General Partnership||(121,986)||(112,518)|
|Loss on restructuring of convertible debentures||928,590||-|
|Funds from Operations||1,200,829||456,907|
|Basic and diluted funds from Operations per unit||0.061||0.023|
|Contributions to reserve account||(197,404)||(181,846)|
|Adjusted funds from Operations||1,003,425||275,061|
|Basic and diluted adjusted funds from Operations per unit||0.051||0.014|
|Reconciliation to distributable income|
|Accretion on debt component of convertible debentures||273,312||319,841|
|Accretion of debentures||30,988||54,516|
|Accretion of mortgages payable||110,886||63,850|
|Loss on disposal of income properties||-||17,293|
|Basic and diluted distributable income per unit||0.073||0.037|
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.
For further information:
Keith Levit, President, or Avrum Senensky, Executive Vice President
Tel: (204) 947-1161, Fax: (204) 957-1697, Email firstname.lastname@example.org