LHR.UN Lakeview Hotel Invest Corp

/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 March 31 2012 2011 $ $ Hospitality Revenue Room 9,073,290 8,371,140 Food & Beverage 1,025,674 796,837 Other 477,717 461,861 Total Revenue 10,576,681 9,629,838 Expenses 11,653,520 10,724,190 Net Income (Loss) (1,076,839) (1,094,352) Basic and diluted income (loss) before income (0.055) (0.056) tax per unit Reconciliation to funds from Operations Add (deduct) 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 199,430 258,720 General Partnership Distributions from Lakeview Flag Management 215,250 103,250 General Partnership Income from Lakeview Flag Licensing General (159,987) (147,846) Partnership Income from Lakeview Flag Management General (121,986) (112,518) Partnership Loss on restructuring of convertible debentures 928,590 - Funds from Operations 1,200,829 456,907 Basic and diluted funds from Operations per 0.061 0.023 unit Contributions to reserve account (197,404) (181,846) Adjusted funds from Operations 1,003,425 275,061 Basic and diluted adjusted funds from 0.051 0.014 Operations per unit Reconciliation to distributable income Accretion on debt component of convertible 273,312 319,841 debentures Accretion of debentures 30,988 54,516 Accretion of mortgages payable 110,886 63,850 Loss on disposal of income properties - 17,293 Distributable income 1,418,611 730,561 Basic and diluted distributable income per unit 0.073 0.037 Distributions 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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