Lakeview Hotel REIT Reports Year End Financial Results
28 April 2012 - 9:46PM
PR Newswire (Canada)
/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTIBUTION TO
U.S. NEWS WIRE SERVICES/ 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
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