Accessibility Statement Skip Navigation
  • Resources
  • Blog
  • Journalists
  • Webcasts
  • Data Privacy
  • Français
  • my CNW 
    • Login
    • Register
  • Client Login 
    • Online Member Centre
    • Next Gen Communications Cloud
    • Cision Communications Cloud®
  • Sign Up
  • Send a Release
Return to PR Newswire homepage
  • News
  • Products
  • Contact
When typing in this field, a list of search results will appear and be automatically updated as you type.

Searching for your content...

No results found. Please change your search terms and try again.
Advanced Search
  • News in Focus
      • Browse News Releases

      • All News Releases
      • All Public Company
      • News Releases Overview

      • Multimedia Gallery

      • All Multimedia
      • All Photos
      • All Videos
      • Multimedia Gallery Overview

      • Trending Topics

      • All Trending Topics
  • Business
      • Auto & Transportation

      • All Automotive & Transportation
      • Aerospace, Defense
      • Air Freight
      • Airlines & Aviation
      • Automotive
      • Maritime & Shipbuilding
      • Railroads and Intermodal Transportation
      • Supply Chain/Logistics
      • Transportation, Trucking & Railroad
      • Travel
      • Trucking and Road Transportation
      • Auto & Transportation Overview

      • View All Auto & Transportation

      • Business Technology

      • All Business Technology
      • Blockchain
      • Broadcast Tech
      • Computer & Electronics
      • Computer Hardware
      • Computer Software
      • Data Analytics
      • Electronic Commerce
      • Electronic Components
      • Electronic Design Automation
      • Financial Technology
      • High Tech Security
      • Internet Technology
      • Nanotechnology
      • Networks
      • Peripherals
      • Semiconductors
      • Business Technology Overview

      • View All Business Technology

      • Entertain­ment & Media

      • All Entertain­ment & Media
      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • Entertain­ment & Media Overview

      • View All Entertain­ment & Media

      • Financial Services & Investing

      • All Financial Services & Investing
      • Accounting News & Issues
      • Acquisitions, Mergers and Takeovers
      • Banking & Financial Services
      • Bankruptcy
      • Bond & Stock Ratings
      • Conference Call Announcements
      • Contracts
      • Cryptocurrency
      • Dividends
      • Earnings
      • Earnings Forecasts & Projections
      • Financing Agreements
      • Insurance
      • Investments Opinions
      • Joint Ventures
      • Mutual Funds
      • Private Placement
      • Real Estate
      • Restructuring & Recapitalization
      • Sales Reports
      • Shareholder Activism
      • Shareholder Meetings
      • Stock Offering
      • Stock Split
      • Venture Capital
      • Financial Services & Investing Overview

      • View All Financial Services & Investing

      • General Business

      • All General Business
      • Awards
      • Commercial Real Estate
      • Corporate Expansion
      • Earnings
      • Environmental, Social and Governance (ESG)
      • Human Resource & Workforce Management
      • Licensing
      • New Products & Services
      • Obituaries
      • Outsourcing Businesses
      • Personnel Announcements
      • Real Estate Transactions
      • Residential Real Estate
      • Small Business Services
      • Socially Responsible Investing
      • Surveys, Polls and Research
      • Trade Show News
      • General Business Overview

      • View All General Business

  • Science & Tech
      • Consumer Technology

      • All Consumer Technology
      • Artificial Intelligence
      • Blockchain
      • Cloud Computing/Internet of Things
      • Computer Electronics
      • Computer Hardware
      • Computer Software
      • Consumer Electronics
      • Cryptocurrency
      • Data Analytics
      • Electronic Commerce
      • Electronic Gaming
      • Financial Technology
      • Mobile Entertainment
      • Multimedia & Internet
      • Peripherals
      • Social Media
      • STEM (Science, Tech, Engineering, Math)
      • Supply Chain/Logistics
      • Wireless Communications
      • Consumer Technology Overview

      • View All Consumer Technology

      • Energy & Natural Resources

      • All Energy
      • Alternative Energies
      • Chemical
      • Electrical Utilities
      • Gas
      • General Manufacturing
      • Mining
      • Mining & Metals
      • Oil & Energy
      • Oil and Gas Discoveries
      • Utilities
      • Water Utilities
      • Energy & Natural Resources Overview

      • View All Energy & Natural Resources

      • Environ­ment

      • All Environ­ment
      • Conservation & Recycling
      • Environmental Issues
      • Environmental Policy
      • Environmental Products & Services
      • Green Technology
      • Natural Disasters
      • Environ­ment Overview

      • View All Environ­ment

      • Heavy Industry & Manufacturing

      • All Heavy Industry & Manufacturing
      • Aerospace & Defense
      • Agriculture
      • Chemical
      • Construction & Building
      • General Manufacturing
      • HVAC (Heating, Ventilation and Air-Conditioning)
      • Machinery
      • Machine Tools, Metalworking and Metallurgy
      • Mining
      • Mining & Metals
      • Paper, Forest Products & Containers
      • Precious Metals
      • Textiles
      • Tobacco
      • Heavy Industry & Manufacturing Overview

      • View All Heavy Industry & Manufacturing

      • Telecomm­unications

      • All Telecomm­unications
      • Carriers and Services
      • Mobile Entertainment
      • Networks
      • Peripherals
      • Telecommunications Equipment
      • Telecommunications Industry
      • VoIP (Voice over Internet Protocol)
      • Wireless Communications
      • Telecomm­unications Overview

      • View All Telecomm­unications

  • Lifestyle & Health
      • Consumer Products & Retail

      • All Consumer Products & Retail
      • Animals & Pets
      • Beers, Wines and Spirits
      • Beverages
      • Bridal Services
      • Cannabis
      • Cosmetics and Personal Care
      • Fashion
      • Food & Beverages
      • Furniture and Furnishings
      • Home Improvement
      • Household, Consumer & Cosmetics
      • Household Products
      • Jewelry
      • Non-Alcoholic Beverages
      • Office Products
      • Organic Food
      • Product Recalls
      • Restaurants
      • Retail
      • Supermarkets
      • Toys
      • Consumer Products & Retail Overview

      • View All Consumer Products & Retail

      • Entertain­ment & Media

      • All Entertain­ment & Media
      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • Entertain­ment & Media Overview

      • View All Entertain­ment & Media

      • Health

      • All Health
      • Biometrics
      • Biotechnology
      • Clinical Trials & Medical Discoveries
      • Dentistry
      • FDA Approval
      • Fitness/Wellness
      • Health Care & Hospitals
      • Health Insurance
      • Infection Control
      • International Medical Approval
      • Medical Equipment
      • Medical Pharmaceuticals
      • Mental Health
      • Pharmaceuticals
      • Supplementary Medicine
      • Health Overview

      • View All Health

      • Sports

      • All Sports
      • General Sports
      • Outdoors, Camping & Hiking
      • Sporting Events
      • Sports Equipment & Accessories
      • Sports Overview

      • View All Sports

      • Travel

      • All Travel
      • Amusement Parks and Tourist Attractions
      • Gambling & Casinos
      • Hotels and Resorts
      • Leisure & Tourism
      • Outdoors, Camping & Hiking
      • Passenger Aviation
      • Travel Industry
      • Travel Overview

      • View All Travel

  • Policy & Public Interest
      • Policy & Public Interest

      • All Policy & Public Interest
      • Advocacy Group Opinion
      • Animal Welfare
      • Canadian Federal Government
      • Canadian Municipal Government
      • Canadian Provincial Government
      • Corporate Social Responsibility
      • Domestic Policy
      • Economic News, Trends, Analysis
      • Education
      • Environmental
      • European Government
      • FDA Approval
      • Federal and State Legislation
      • Federal Executive Branch & Agency
      • Foreign Policy & International Affairs
      • Homeland Security
      • Labor & Union
      • Legal Issues
      • Natural Disasters
      • Not For Profit
      • Patent Law
      • Public Safety
      • Trade Policy
      • Policy & Public Interest Overview

      • View All Policy & Public Interest

  • People & Culture
      • People & Culture

      • All People & Culture
      • Aboriginal, First Nations & Native American
      • African American
      • Asian American
      • Children
      • Diversity, Equity & Inclusion
      • Hispanic
      • Lesbian, Gay & Bisexual
      • Men's Interest
      • People with Disabilities
      • Religion
      • Senior Citizens
      • Veterans
      • Women
      • People & Culture Overview

      • View All People & Culture

  • Advanced Search
  • Overview
  • Multichannel Amplification
  • Monitoring
  • Distribution
  • Multimedia
  • Guaranteed Paid Placement
  • AI Tools
  • IR
  • Become a Client
  • Request a Demo
  • Editorial Bureaus
  • Partnerships
  • General Enquiries
  • Media
  • Worldwide Offices
  • Hamburger menu
  • Cision Canada
  • Send a Release
  • FR
    • Phone

    • 877-269-7890 from 8 AM - 10 PM ET

    • ALL CONTACT INFO
    • Contact Cision

      877-269-7890
      from 8 AM - 10 PM ET

  • Send a Release
  • Sign Up
  • Resources
  • Blog
  • Journalists
  • Webcasts
  • GDPR
  • News in Focus
    • Browse All News
    • Multimedia Gallery
    • Trending Topics
  • Business
    • Auto & Transportation
    • Business Technology
    • Entertain­ment & Media
    • Financial Services & Investing
    • General Business
  • Science & Tech
    • Consumer Technology
    • Energy & Natural Resources
    • Environ­ment
    • Heavy Industry & Manufacturing
    • Telecomm­unications
  • Lifestyle & Health
    • Consumer Products & Retail
    • Entertain­ment & Media
    • Health
    • Sports
    • Travel
  • Policy & Public Interest
    • Policy & Public Interest
  • People & Culture
    • People & Culture
  • Send a Release
  • Sign Up
  • Resources
  • Blog
  • Journalists
  • Webcasts
  • GDPR
  • Overview
  • Multichannel Amplification
  • Monitoring
  • Distribution
  • Multimedia
  • Guaranteed Paid Placement
  • AI Tools
  • IR
  • Send a Release
  • Sign Up
  • Resources
  • Blog
  • Journalists
  • Webcasts
  • GDPR
  • Become a Client
  • Request a Demo
  • Editorial Bureaus
  • Partnerships
  • General Enquiries
  • Media
  • Worldwide Offices
  • Send a Release
  • Sign Up
  • Resources
  • Blog
  • Journalists
  • Webcasts
  • GDPR

Lanesborough REIT reports 2015 second quarter results


News provided by

Lanesborough Real Estate Investment Trust

Aug 14, 2015, 17:11 ET

Share this article

Share toX

Share this article

Share toX

WINNIPEG, Aug. 14, 2015 /CNW/ - Lanesborough Real Estate Investment Trust ("LREIT") (TSX: LRT.UN) today reported its operating results for the quarter ended June 30, 2015. The following comments in regard to the financial position and operating results of LREIT should be read in conjunction with Management's Discussion & Analysis and the financial statements for the quarter ended June 30, 2015, which may be obtained from the LREIT website at www.lreit.com or the SEDAR website at www.sedar.com.

Results of Operation

Overview

Overall, LREIT completed Q2-2015 with a comprehensive loss of $34.8 million, compared to a comprehensive loss of $0.74 million during Q2- 2014.

Net Operating Income

During Q2-2015, net operating income decreased by $1.37 million compared to Q2-2014. Excluding properties held for sale and/or sold, NOI decreased by $1.23 million. The decrease in NOI is entirely attributable to the Fort McMurray property portfolio and is comprised of a $1.9 million decrease in rental revenues, partially offset by a $0.6 million decrease in operating costs.

The sustained slowdown in oil sands development activity, which began during Q4-2014 in conjunction with a significant decline in the price of oil, has resulted in increasingly competitive rental market conditions in Fort McMurray and has countered the increased level of demand that LREIT has typically experienced during the second and third quarters of the year.

The occupancy level of the Fort McMurray portfolio was 72% during Q2-2015, representing an 18% decrease, compared to an occupancy level of 90% during Q2-2014. During Q2-2015, the average monthly rental rate experienced an 8% decrease in comparison to Q2-2014.

Fair Value Adjustments

During Q2-2015, LREIT recorded a loss related to fair value adjustments on its investment property portfolio of $33.1 million, compared to a loss related to fair value adjustments of $0.7 Million, during Q2-2014. The decrease in the fair value of investment properties is primarily due to the reduction in the carrying value of the Fort McMurray properties portfolio, which has been adjusted to reflect unfavourable changes in revenue and occupancy expectations, as well as an increased level of uncertainty in regard to the extent and/or timing of future oil sands development and production activity.

Cash Flow Results

During Q2-2015, cash used in operating activities, excluding working capital adjustments, amounted to $0.8 million, compared to cash used in operating activities of $0.1 million during Q2-2014. Including working capital adjustments, LREIT completed Q2-2015 with cash provided by operating activities of $0.5 million, compared to cash used in operating activities of $0.3 million during Q2-2014.

Key Events

Second Quarter of 2015

  • Sale of property: On April 1, 2015, LREIT completed the sale of a commercial property in Airdrie, Alberta for net proceeds of $2.4 million, after sales expenses and the assumption of the mortgage loan debt by the purchaser.
  • Elimination of a debt covenant breach: On April 7, 2015, LREIT refinanced the first mortgage loan of Millennium Village, which included an associated interest rate swap liability and debt service coverage breach.

Subsequent to June 30, 2015

  • Renewal of Revolving Loan: Subsequent to June 30, 2015, the maximum amount that may be advanced by 2668921 Manitoba Ltd. on the revolving loan facility increased to $18 million at an interest rate of 12%. As of June 30, 2015, the balance of the revolving loan was $15 million.

Outlook

Although the continued depressed level of oil prices and the resulting reduction in oil sands development activity are expected to impact the operating results of LREIT in the near term, LREIT remains optimistic about the long‑term prospects for the Fort McMurray rental market. Management is continuing to pursue and expand the divesture program, both within and outside of Fort McMurray, in order to reduce the debt burden, sustain operations and position LREIT to take advantage of an eventual recovery in the Fort McMurray rental market.

FINANCIAL AND OPERATING SUMMARY




June 30


December 31




2015


2014


2013

STATEMENT OF FINANCIAL POSITION







Total assets



$ 403,437,550


$ 442,773,600


$ 468,072,319

Total long‑term financial liabilities (1)



$ 324,012,038


$ 327,980,499


$ 302,335,837

Weighted average interest rate








     ‑ Mortgage loan debt



5.7%


5.7%


5.4%

     ‑ Total debt



6.3%


6.3%


5.9%











Three Months Ended
June 30


Six Months Ended
June 30


2015


2014


2015


2014









KEY FINANCIAL PERFORMANCE
  INDICATORS








Operating Results








  Rentals from investment properties

$     7,957,771


$  9,975,172


$ 16,689,490


$ 18,883,897

  Net operating income

$     4,556,944


$  5,924,651


$ 9,309,926


$ 10,428,718

  Loss before discontinued operations

$ (34,990,639)


$  (898,369)


$ (38,910,450)


$ (3,414,317)

  Loss and comprehensive loss

$ (34,820,609)


$  (742,668)


$ (38,632,655)


$ (3,146,681)









Cash Flows








  Cash provided by (used in) operating activities

$      511,072


$  (260,667)


$     218,934


$      457,974

  Funds from Operations (FFO)

$(1,564,934)


$    (58,076)


$ (3,480,158)


$ (2,533,324)

  Adjusted Funds from Operations (AFFO)

$ (1,782,376)


$  (959,791)


$ (3,392,970)


$ (3,067,659)












(1)

Long‑term financial liabilities consist of mortgage loans, debentures, a defeased liability, an interest rate swap liability and mortgage bonds.  The mortgage bonds are included at face value.

Q2-2015 COMPARED TO Q2-2014


Three Months Ended June 30

Six Months Ended June 30


2015


2014


2015


2014

Net operating income








Fort McMurray properties

$   3,237,384


$  4,551,452


$   6,414,181


$  7,884,581

Other investment properties

755,363


667,580


1,405,426


1,259,396

Sub‑total

3,992,747


5,219,032


7,819,607


9,143,977

Held for sale and/or sold properties

564,197


705,619


1,490,319


1,284,741

Total net operating income

4,556,944


5,924,651


9,309,926


10,428,718

Interest income

22,271


206,779


47,163


591,997

Interest expense

(5,855,496)


(5,745,943)


(12,264,500)


(12,700,225)

Trust expense

(458,683)


(599,264)


(850,542)


(1,219,949)

Income recovery on Parsons Landing

-


-


-


98,499

Loss before the following

(1,734,964)


(213,777)


(3,757,953)


(2,800,960)

Gain (loss) on sale of investment property

(201,215)


-


(201,215)


71,235

Fair value adjustments ‑ Investment properties

(33,054,460)


(684,592)


(34,951,282)


(684,592)

Loss before discontinued operations

(34,990,639)


(898,369)


(38,910,450)


(3,414,317)

Income from discontinued operations

170,030


155,701


277,795


267,636

Loss and comprehensive loss

$ (34,820,609)


$  (742,668)


$ (38,632,655)


$ (3,146,681)

During Q2-2015, loss before gain on sale of investment property, fair value adjustments and discontinued operations increased by $1.5 million compared to Q2-2014. The increase is mainly due to a decrease in operating income of $1.4 million, a decrease in interest income of $0.2 million and an increase in interest expense of $0.1 million, partially offset by a decrease in trust expense of $0.1 million.

During Q2-2015, LREIT's comprehensive loss was $34.8 million, compared to a comprehensive loss of $0.7 million during Q2-2014, representing a variance of $34.1 million. In addition to the variables noted in the preceding paragraph, the increase in loss reflects an increase in loss from fair value adjustments of $32.4 million and an unfavourable variance on the sale of investment property of $0.2 million.

Rental Revenue

Analysis of Rental Revenue







Three Months Ended June 30


Six Months Ended June 30


2015


2014


Increase
(Decrease)


2015


2014


Increase
(Decrease)













Fort McMurray properties

$  5,337,956


$ 7,229,516


$ (1,891,560)


$ 11,103,995


$ 13,521,962


$ (2,417,967)

Other investment properties

1,336,306


1,276,175


60,131


2,625,088


2,513,179


111,909

Sub‑total

6,674,262


8,505,691


(1,831,429)


13,729,083


16,035,141


(2,306,058)

Held for sale and/or sold properties (1)

1,283,509


1,469,481


(185,972)


2,960,407


2,848,756


111,651













Total

$  7,957,771


$ 9,975,172


$ (2,017,401)


$ 16,689,490


$ 18,883,897


$(2,194,407)

1.

Represents revenue from Colony Square and 156/204 East Lake Blvd.

During Q2-2015 total revenue from investment properties, excluding held for sale and/or sold properties, decreased by $1.83 million (22%), compared to Q2-2014, which was mainly due to the unfavourable variance in revenue results for the Fort McMurray portfolio. 

The revenue results for the Fort McMurray property portfolio reflect increasingly competitive rental market conditions as a result of a slow-down in oil sands development activity due to a decline in the price of oil beginning in Q4-2014 and the continued depressed level of oil prices in Q2-2015. As a result, the occupancy level and average rental rates decreased in Q2-2015, compared to Q2-2014. As noted in the following charts, the average occupancy level for the Fort McMurray portfolio decreased from 90% during Q2-2014 to 72% during Q2-2015, while the average monthly rental rate decreased by $181 per suite or 8%.

Occupancy Level, by Quarter



2015



Q1

Q2

6 Month

Average


Fort McMurray properties

76%

72%

74%


Other investment properties

92%

94%

93%


Total

79%

75%

77%







Held for sale and/or sold properties

94%

90%

93%









2014


Q1

Q2

6 Month

Average

Q3

Q4

12 Month

Average

Fort McMurray properties

78%

90%

84%

90%

85%

86%

Other investment properties

88%

91%

90%

94%

93%

92%

Total

79%

90%

85%

91%

86%

87%








Held for sale and/or sold properties

90%

93%

91%

93%

93%

92%

The occupancy level represents the portion of potential revenue that was achieved

Average Monthly Rents, by Quarter



2015



Q1

Q2

6 Month

Average


Fort McMurray properties

$2,228

$2,192

$2,210


Other investment properties

$1,138

$1,158

$1,148


Total

$1,932

$1,910

$1,921







Held for sale and/or sold properties *

$760

$736

$748









2014


Q1

Q2

6 Month

Average

Q3

Q4

12 Month

Average

Fort McMurray properties

$2,397

$2,373

$2,386

$2,351

$2,291

$2,354

Other investment properties

$1,137

$1,126

$1,131

$1,117

$1,123

$1,126

Total

$2,055

$2,034

$2,045

$2,016

$1,976

$2,020








Held for sale and/or sold properties *

$741

$739

$740

$732

$754

$741

* Represents the residential portion of Colony Square.

Analysis of Property Operating Costs







Three Months Ended June 30


Six Months Ended June 30


2015


2014


Increase

(Decrease)


2015


2014


 Increase
(Decrease)













Fort McMurray properties

$ 2,100,572


$ 2,678,064


$ (577,492)


$ 4,689,814


$ 5,637,381


$    (947,567)













Other investment properties

580,943


608,595


(27,652)


1,219,662


1,253,783


(34,121)

Sub‑total

2,681,515


3,286,659


(605,144)


5,909,476


6,891,164


(981,688)

Held for sale and/or sold properties

719,312


763,862


(44,550)


1,470,088


1,564,015


(93,927)

Total

$ 3,400,827


$ 4,050,521


$ (649,694)


$ 7,379,564


$ 8,455,179


$ (1,075,615)

During Q2-2015, property operating costs, excluding held for sale and/or sold, decreased by $0.61 million or 18%, compared to Q2-2014.  The decrease is comprised almost entirely of the decrease of $0.58 million in Fort McMurray operating costs. The decrease in Fort McMurray operating costs is mainly due to decreases in maintenance costs, property taxes, utilities and management fees. The decrease in maintenance costs included the elimination of the Parsons Landing occupancy fee paid to the developer prior to the completion of the purchase of the property on March 6, 2014 and a decrease in repair costs related to water damage, net of insurance recoveries.

Analysis of Net Operating Income













Net Operating Income







Three Months Ended
June 30

Increase (Decrease)


Percent of Total


Operating
Margin


2015


2014


Amount


%


2015


2014


2015


2014

















Fort McMurray properties

$ 3,237,384


$  4,551,452


$ (1,314,068)


(29)%


71%


77%


61%


63%

















Other investment properties

755,363


667,580


87,783


13%


17%


11%


57%


52%

Sub‑total

3,992,747


5,219,032


(1,226,285)


(23)%


88%


88%


60%


61%

















Held for sale and/or sold properties

564,197


705,619


(141,422)


(20)%


12%


12%


44%


8%

 

Total

 

$ 4,556,944


 

$  5,924,651


 

$ (1,367,707)


 

(23)%


 

100%


 

100%


 

57%


 

59%

After considering the decrease in rental revenue and the decrease in property operating costs, net operating income, excluding held for sale and/or sold properties, decreased by $1.23 million or 23% during Q2-2015, compared to Q2-2014. The decrease is comprised of a $1.31 million decrease in net operating income from the Fort McMurray properties, partially offset by a $0.09 million increase in net operating income from the other investment properties.

Including the decrease in net operating income related to held for sale and/or sold properties, total net operating income increased by $1.37 million or 23% during Q2-2015, compared to Q2-2014.

Overall, the operating margin for the property portfolio, excluding held for sale and/or sold properties, decreased from 61% during Q2-2014, to 60% during Q2-2015.  The decrease in the operating margin is mainly due to the unfavourable variance in revenue results for Fort McMurray properties.

COMPARISON TO PREVIOUS QUARTER

Analysis of Loss





 

Three Months Ended

Increase (Decrease) In
Income


June 30, 2015


March 31, 2015


Amount


%

Rentals from investment properties

$      7,957,771


$        8,731,719


$    (773,948)


(9)%

Property operating costs

3,400,827


3,978,737


577,910


15%

Net operating income

4,556,944


4,752,982


(196,038)


(4)%









Interest income

22,271


24,892


(2,621)


(11)%

Interest expense

(5,855,496)


(6,409,004)


553,508


9%

Trust expense

(458,683)


(391,859)


(66,824)


(17)%

Loss before the following

(1,734,964)


(2,022,989)


288,025


14%

Gain (loss) on sale of investment property

(201,215)


-


(201,215)


n/a

Fair value adjustments

(33,054,460)


(1,896,822)


(31,157,638)


1,643%

Loss for the period before discontinued operations

(34,990,639)


(3,919,811)


(31,070,828)


(793)%

Income (loss) from discontinued operations

170,030


107,765


62,265


58%

Comprehensive loss

$  (34,820,609)


$      (3,812,046)


$ (31,008,563)


(813)%

During Q2-2015 the loss before sale of investment property, fair value adjustments, and discontinued operations decreased by $0.29 million or 14%, compared to Q1-2015. The decrease mainly reflects a decrease in interest expense of $0.55 million, partially offset by a decrease in net operating income of $0.19 million and an increase in trust expense of $0.07 million. The decrease in net operating income is mainly attributable to the Fort McMurray portfolio. The decrease in interest expense mainly reflects the repayment of the remaining mortgage bonds in the amount of $6,000,000 during Q1-2015.

Including the variance in fair value adjustments in the amount of $31.16 million, the loss before discontinued operations increased by $31.07 million during Q2-2015. Fair value losses were comparatively high during Q2-2015 as a result of the changes in the valuation assumptions for the Fort McMurray portfolio.

Including discontinued operations, LREIT completed Q2-2015 with a comprehensive loss of $34.82 million, compared to a comprehensive loss of $3.81 million during Q1-2015. 

ABOUT LREIT
LREIT is a real estate investment trust, which is listed on the Toronto Stock Exchange under the symbols LRT.UN (Trust Units), LRT.DB.G (Series G Debentures) and LRT.WT.A (Warrants expiring December 23, 2015). For further information on LREIT, please visit our website at www.lreit.com.

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 Toronto Stock 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.

SOURCE Lanesborough Real Estate Investment Trust

Arni Thorsteinson, Chief Executive Officer, or Gino Romagnoli, Investor Relations, Tel: (204) 475-9090, Fax: (204) 452-5505, Email: [email protected]

Modal title

Organization Profile

Lanesborough Real Estate Investment Trust

Contact Cision

  • 866-245-2317
    from 8 AM - 10 PM ET
  • Become a Client
  • Request a Demo
  • Editorial Bureaus
  • Partnerships
  • General Enquiries
  • Media

Products

  • Cision Communications Cloud®
  • Media Monitoring
  • Content Distribution
  • Multimedia Distribution
  • Measurement & Analytics
  • Investor Relations

About

  • About Cision Canada
  • About Cision
  • Media Partners
  • Careers
  • Accessibility Statement
  • APAC
  • APAC - Simplified Chinese
  • APAC - Traditional Chinese
  • Brazil
  • Canada
  • Czech
  • Denmark
  • Finland
  • France
  • Germany
  • India
  • Indonesia
  • Israel
  • Japan
  • Korea
  • Mexico
  • Middle East
  • Middle East - Arabic
  • Netherlands
  • Norway
  • Poland
  • Portugal
  • Russia
  • Slovakia
  • Spain
  • Sweden
  • United States
  • Vietnam

My Services

  • All News Releases
  • Online Member Centre
  • Next Gen Communications Cloud
  • Cision Communications Cloud®
  • my CNW

Do not sell or share my personal information:

  • Submit via [email protected] 
  • Call Privacy toll-free: 877-297-8921

Contact Cision

Products

About

My Services
  • All News Releases
  • Online Member Centre
  • Next Gen Communications Cloud
  • Cision Communications Cloud
  • my CNW
877-269-7890
from 8 AM - 10 PM ET
  • Terms of Use
  • Information Security Policy
  • Site Map
  • Cookie Settings
  • Accessibility Statement
Copyright © 2025 CNW Group Ltd. All Rights Reserved. A Cision company.