Temple REIT reports 2007 third quarter results and announces a 33% increase in cash distributions



    WINNIPEG, Nov. 28 /CNW/ - Temple Real Estate Investment Trust ("TREIT")
(TSX Venture: TR.UN) is pleased to report the financial results for the
quarter ended September 30, 2007. The following comments in regard to the
financial position and operating results of TREIT should be read in
conjunction with the 2007 Third Quarter Report and the financial statements
for the quarter ended September 30, 2007, which may be obtained from the TREIT
website at www.treit.ca or the SEDAR website at www.sedar.com.

    
    2007 THIRD QUARTER HIGHLIGHTS

    Acquisition and Development

    -   Quarter ending portfolio consisting of seven hotel properties,
        comprised of 742 rooms/suites

    -   Subsequent to September 30, 2007, TREIT agreed to purchase the 83-
        room Advantage Inn & Suites in Fort McMurray, AB with a January 31,
        2008 closing date

    Financial

    Third quarter of 2007, compared to second quarter of 2007:

    -   Operating income of $5.8 Million, representing an increase of
        $1.1 Million ($0.12 per unit)

    -   Excluding non-recurring financing expenses of approximately
        $1.4 Million: ($0.16 per unit), net income increased by $0.52 Million
        ($0.06 per unit)

    -   Average occupancy level decreased to 75.73%, compared to 79.08%,
        reflecting a reduction in demand at the Merit/Nomad properties from
        the business sector during the holiday summer months

    -   Average daily room rate (ADR) increased to $175.84, compared to
        $171.11

    -   Revenue per available room (RevPar) maintained at a favourable level
        of $131.59, compared to $135.19

    -   Operating profit margin increased to 53.66%, compared to 50.01%

    Capital Structure

    -   Financed $49.6 Million of mortgage debt at a 5-year average fixed
        interest rate of 6.23%

    -   Mortgage loan debt to estimated current property value ratio of under
        60% at September 30, 2007.


    Financial and Operating Statistics
    -------------------------------------------------------------------------
                                     Nine Months  Three Months  Three Months
                                         Ended        Ended         Ended
                                       Sept. 30,     Sept. 30,     June 30,
                                         2007          2007          2007
                                     ----------------------------------------
    CASH DISTRIBUTIONS

    Amount - total                    $3,717,635    $1,423,975    $1,326,984
           - per Unit                      $0.46         $0.16         $0.15

    KEY PERFORMANCE INDICATORS
    Operations
      Occupancy                           78.12%        75.73%        79.08%
      ADR                                $172.57       $175.87       $171.11
      RevPar                             $134.06       $131.59       $135.19
      Operating profit margin             49.27%        53.66%        50.01%

    Operating Results
      Total revenue                  $23,686,560   $10,885,385    $9,522,466
      Operating income               $11,668,514    $5,840,247    $4,761,400
      Net income                      $2,171,603      $543,818    $1,421,241

    Cash flow from operating
     activities/Distributable
     income                           $3,819,863      $645,393    $3,015,620
    Financing
      Weighted average interest rate
       of long-term debt                   6.43%         6.43%         6.97%


    Per Unit Amounts          Basic  Diluted  Basic  Diluted  Basic  Diluted
                              -----  -------  -----  -------  -----  -------
    Net income                $0.282  $0.281  $0.061  $0.061  $0.161  $0.157
    Distributable income      $0.497  $0.494  $0.073  $0.073  $0.341  $0.260


    Analysis of Net Earnings

                              Nine Months
                                Ended       Three Months Ended
                               Sept. 30,   Sept. 30,   June 30,    Increase
                                 2007        2007        2007     (Decrease)
                              ----------- ----------- ----------- -----------
    Hotel revenue
      Room                   $18,831,081  $9,282,517  $7,698,841  $1,583,676
      Other                    3,644,019   1,222,716   1,324,070    (101,354)
                              ----------- ----------- ----------- -----------
        Total hotel revenue   22,475,100  10,505,233   9,022,911   1,482,322
    Interest and other
     income                    1,211,460     380,152     499,555    (119,403)
                              ----------- ----------- ----------- -----------
      Total revenue           23,686,560  10,885,385   9,522,466   1,362,919
    Operating expenses        12,018,046   5,045,138   4,761,066     284,072
                              ----------- ----------- ----------- -----------
    Operating income          11,668,514   5,840,247   4,761,400   1,078,847

    Finance expense            6,538,959   3,884,210   2,153,294   1,730,916
    Trust expense                379,303      70,537     187,331    (116,794)
    Amortization               2,152,895   1,069,481     908,668     160,813
    Provision for taxes          425,754     272,201      90,866     181,335
                              ----------- ----------- ----------- -----------
    Net income                $2,171,603    $543,818  $1,421,241   $(877,423)
                              ----------- ----------- ----------- -----------
                              ----------- ----------- ----------- -----------
    


    The operating results for the third quarter of 2007 reflect a full
quarter of operating income for all seven hotels in the TREIT portfolio. TREIT
experienced a decrease in net income during the third quarter of 2007,
compared to the second quarter of the year, as a result of the previously
reported non-recurring financing expenses of approximately $1.4 Million, which
were incurred in regard to the completion of financing arrangements for the
Merit/Nomad hotel acquisition. After excluding the non-recurring financing
expense, net income for the third quarter of 2007 increased by approximately
$523,000 or 36.8%, compared to the second quarter of the year. For the nine
months ended September 30, 2007, net income was approximately $2.2 Million,
while distributable income was approximately $4 Million, or approximately
$0.3 Million in excess of the total distributions declared for the period of
$3.7 Million. The ratio of distributions declared to distributable income for
the nine months ended September 30, 2007 was 97%. Excluding the non-recurring
financing expenses, distributable income for the nine months ended
September 30, 2007 would have been approximately $5.2 Million, which reflects
a distributable income ratio of 71%.
    During the third quarter of 2007, the capital appreciation potential of
the hotel portfolio was also identified as a result of the upward refinancing
of the Temple Gardens Mineral Spa Resort Hotel in Moose Jaw, Saskatchewan.
During the upward refinancing process, the Temple Gardens Hotel was appraised
at a value of $33 Million, representing an increase of $7 Million or 27%, in
comparison to the October 2006 acquisition cost. Due to a number of factors,
including the favourable economic conditions in Fort McMurray and the unique
amenities offered by the Temple Gardens Hotel in Moose Jaw, the potential for
ongoing growth in the value of all of the properties in the Temple REIT
portfolio remains favourable.
    Given the favourable operating results, TREIT also announced today that
the Board of Trustees has approved an increase in its monthly distributions to
unitholders from $0.06 per month, or $0.72 annually, to $0.08 per month, or
$0.96 annually, representing a 33% increase. The increased distribution will
commence with the January 2008 distribution, which is payable on February 15,
2008 to unitholders of record as of January 31, 2008. Since its inception in
October 2006, TREIT has increased its distributions three times, resulting in
a total increase in its distributions of $0.40 annually.

    TREIT is a real estate investment trust, which is listed on the TSX
Venture Exchange under the symbol TR.UN. The objective of TREIT is to provide
Unitholders with stable cash distributions from investment in a geographically
diversified Canadian portfolio of hotel properties and related assets. There
are currently 8,991,378 trust units outstanding. For further information on
TREIT, please visit our website at www.treit.ca.

    This press release contains certain statements that could be considered
as forward-looking information. The forward-looking information is subject to
certain risks and uncertainties, which could result in actual results
differing materially from the forward-looking statements.

    The TSX Venture Exchange has not reviewed or approved the contents of
    this press release and does not accept responsibility for the adequacy or
    accuracy of this press release.





For further information:

For further information: Arni Thorsteinson, Chief Executive Officer, or
Gino Romagnoli, Investor Relations, Tel: (204) 475-9090, Fax: (204) 452-5505,
Email: info@treit.ca


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