Lakeview Hotel REIT Reports 1st quarter Financial Results



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

    WINNIPEG, May 29 /CNW/ - Lakeview Hotel Real Estate Investment Trust
("Lakeview REIT") is pleased to report its financial results for the quarter
ended March 31, 2009. The following comments in regard to the financial
results should be read in conjunction with the March 31, 2009 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 first quarter of 2009 was a difficult period for most hotel
operators. Lakeview REIT's exposure to markets dependent on gas drilling
activity to generate occupancy made this period especially challenging for
Lakeview REIT. Through this challenging period Lakeview REIT was able to
generate positive funds from operations, adjusted funds from operations, and
distributable cash. While occupancy came under pressure and, as a result,
declined in the first quarter of 2009 to 52.88% versus 62.46% in the first
quarter of 2008, Lakeview REIT achieved an average room rate of $120.95, an
increase of $4.97 from the average room rate in the first quarter of 2008.
    In spite of the challenges, Lakeview REIT believes it remains in a
position where it can fund all mortgage payments, all payments due to its
debenture holders, all REIT operating expenses and all of its capital
expenditures from funds from operations on an annual basis. While there is
currently a lack of visibility as to when improvements in gas markets may
occur, improvements in these markets would result in significantly improved
operating results for Lakeview REIT.
    Following is a comparison of the operating results for the three months
ended March 31, 2009 and the three months ended March 31, 2008:

    
                                                       Three months ended

                                                     March 31
                                                       2009          2008

    Hospitality Revenue
      Room                                           7,758,443     7,962,210
      Food & Beverage                                  767,056     1,104,736
      Other                                            518,328       388,166
                                                   --------------------------
    Total Revenue                                    9,043,827     9,455,112
    Expenses                                        10,514,997     9,716,726
                                                   --------------------------
    Net Loss before future income tax expense       (1,471,170)     (261,614)
                                                   --------------------------
    Basic and diluted Loss before income tax per
     unit                                               (0.076)       (0.014)
    Future Income Tax Recovery                               0         4,000
    Net Loss                                        (1,471,170)     (257,614)
    Basic and diluted Loss per Unit                     (0.076)       (0.013)
                                                   --------------------------
    Reconciliation to Funds from Operations
    Add (deduct)
    Amortization of income properties                1,673,051     1,417,810
    Amortization of franchise fees                      12,436        12,321
    Distributions from Lakeview Flag Licensing
     General Partnership                               172,970       144,550
    Income from Lakeview Flag Licensing General
     Partnership                                      (181,389)     (161,385)
    Future income tax expense (recovery)                     0        (4,000)
                                                   --------------------------
    Funds from Operations                              205,898     1,151,682
    Basic and diluted Funds from Operations per
     unit                                                0.011         0.060
    Contributions to reserve account                  (178,184)     (287,641)
                                                   --------------------------
    Adjusted Funds from Operations                      27,714       864,041
    Basic and diluted adjusted Funds from
     Operations per unit                                 0.001         0.045
    Reconciliation to distributable income
    Accretion on debt component of convertible
     debentures                                        252,784       165,609
    Accretion of debentures                             44,153         1,019
    Accretion of mortgages payable                      52,143        50,038
    Decretion of mortgages receivable                    5,660
                                                   --------------------------
    Distributable Income                               382,454     1,080,707
    Basic and diluted distributable income per
     unit                                                0.020         0.056
    Distributions                                      192,748     2,121,563


    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:

For further information: Keith Levit, President, or Avrum Senensky, Vice
President Finance, Tel: (204) 947-1161, Fax: (204) 957-1697, Email:
asenensky@lakeviewhotels.com

Organization Profile

Lakeview Hotel Real Estate Investment Trust

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