Lakeview Hotel REIT Reports 2nd quarter Financial Results



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

    WINNIPEG, Aug. 19 /CNW/ - Lakeview Hotel Real Estate Investment Trust
("Lakeview REIT") reported today its financial results for the quarter ended
June 30, 2009. The following comments in regard to the financial results
should be read in conjunction with the June 30, 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 second quarter of 2009 was an extremely challenging period for
Lakeview Hotel REIT. Operating results continued to erode under the weight of
a struggling economy, and depressed natural gas prices severely impacted
occupancies in many of the smaller markets where the REIT operates.
    During and subsequent to the second quarter, the REIT has focused on
operating efficiencies and improvements to its balance sheet to ensure it is
in a stronger position when the economy and commodity prices improve.
    In the second quarter of 2009, Lakeview REIT reduced its maintenance,
marketing, salaries and benefits, supplies and utilities expenses when
compared to the second quarter of 2008. Lakeview REIT has taken steps to
collect on its mortgage receivables advanced under its mezzanine loan program
to help bolster the REIT's working capital. Lakeview REIT has also
successfully refinanced the Days Inn Ottawa Airport hotel and as a result has
no mortgage maturities until 2011.
    Following is a comparison of the operating results for the three and six
months ended March 31, 2009 and the comparable periods in 2008:

    
                                 Three months ended       Six months ended
                                       June 30                 June 30
                                  2009        2008        2009        2008

    Hospitality Revenue
      Room                     7,592,028   8,321,629  15,350,471  16,283,839
      Food & Beverage            737,379     939,012   1,504,435   2,043,748
      Other                      493,273     433,826   1,011,601     821,992
                              -----------------------------------------------
    Total Revenue              8,822,680   9,694,467  17,866,507  19,149,579
    Expenses                  11,071,985  10,400,633  21,586,982  20,117,359
                              -----------------------------------------------
    Net Income (Loss) before
     future income tax
     expense                  (2,249,305)   (706,166) (3,720,475)   (967,780)
                              -----------------------------------------------
    Basic and diluted income
     (loss) before income
     tax per unit                 (0.115)     (0.037)     (0.192)     (0.050)
    Future (Income Tax Expense)
     Recovery                          -           -           -       4,000
    Net (Loss)                (2,249,305)   (706,166) (3,720,475)   (963,780)
    Basic and Diluted Income
     (Loss) per Unit              (0.115)     (0.037)     (0.192)     (0.050)
                              -----------------------------------------------
    Reconciliation to funds
     from Operations
    Add (deduct)
    Amortization of income
     properties                1,670,211   1,522,152   3,343,262   2,939,962
    Amortization of franchise
     fees and licenses            27,238      11,617      39,674      23,938
    Distributions from
     Lakeview Flag Licensing
     General Partnership         124,460     154,840     297,430     299,390
    Income from Lakeview Flag
     Licensing General
     Partnership                (149,909)   (156,913)   (331,298)   (318,298)
    Future income tax expense
     (recovery)                        -           -           -      (4,000)
                              -----------------------------------------------
    Funds from Operations       (577,305)    825,530    (371,407)  1,977,212
    Basic and diluted funds
     from Operations per unit     (0.030)      0.043      (0.019)      0.103
    Contributions to reserve
     account                    (205,015)   (283,131)   (383,199)   (570,772)
                              -----------------------------------------------
    Adjusted funds from
     Operations                 (782,320)    542,399    (754,606)  1,406,440
    Basic and diluted adjusted
     funds from Operations
     per unit                     (0.040)      0.028      (0.039)      0.073
    Reconciliation to
     distributable income
    Accretion on debt component
     of convertible debentures   251,951     189,198     504,735     354,807
    Accretion of debentures       45,332      38,462      89,485      39,481
    Accretion of mortgages        52,519      51,005     104,662     101,043
    Decretion of mortgages
     receivable                   51,217       2,296      56,877       2,296
    Loss on settlement of
     mortgages receivable         98,244           -      98,244           -
    Compensation costs of unit
     options                           -           -           -           -
                              -----------------------------------------------
    Distributable income        (283,057)    823,360      99,397   1,904,067
    Basic and diluted
     distributable income
     per units                    (0.015)      0.043       0.005       0.099
    Distributions                      -   2,121,760     192,748   4,243,323

    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.
    

    %SEDAR: 00020441E




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

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Lakeview Hotel Real Estate Investment Trust

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