Lakeview Hotel Investment Corp Announces 1st Quarter Results

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WINNIPEG, May 29, 2014 /CNW/ - Lakeview Hotel Investment Corp ("LHIC") is pleased to report its financial results for the Quarter ended March 31, 2014.  The following comments in regard to the financial results should be read in conjunction with the March 31, 2014 financial statements and Management Discussion and Analysis which are available on the SEDAR website www.sedar.com.

Lakeview Hotel Investment Corp. produced solid operating results in the first quarter of 2014.  Comparing operating results from the first quarter of 2013, Funds from Operations increased from $696,701 to $1,327,682 and Adjusted Funds from Operations more than doubled, from $508,233 to $1,164,669.  Distributable income for the quarter was also up sharply, to $1,225,095.

Second quarter operating results are typically more difficult to predict based on uncertainty related to the timing and duration of road closures in Alberta and British Columbia and the impact of these closures on hotel operations.  While subject to this uncertainty, at the time of writing expectations are that on a comparable hotel basis second quarter revenues will be well ahead of the revenues achieved in the second quarter of 2013.  The outlook beyond the second quarter continues to remain very positive.

Following is a comparison of the operating results for the three months ended March 31, 2014 and the comparable period in 2013:

	Three months ended March 31
	2014 ^(1)	2013^(1)
	$	$
Hospitality Revenue
Room	8,046,418	8,385,662
Food & Beverage	1,162,083	1,121,391
Other	480,162	439,652
Total Revenue	9,688,663	9,946,705
Expenses	9,159,367	10,262,020
Gain on sale of income properties	671,291	-
Net Income (Loss)	1,200,587	(315,315)
Basic and diluted income (loss) before income tax per share/unit	0.061	(0.016)
Reconciliation to funds from Operations
Add (deduct)
Amortization of income properties	756,442	1,029,357
Amortization of franchise fees and licenses	1,192	1,192
Distributions from Lakeview Flag Licensing General Partnership	142,100	128,380
Distributions from Lakeview Flag Management General  Partnership	177,500	107,000
Income from Lakeview Flag Licensing General Partnership	(170,515)	(143,435)
Income from Lakeview Flag Management General Partnership	(109,652)	(113,730)
Gain on sale of income properties	(671,291)	-
Loss on derecognition of income properties	1,319	3,252
Funds from Operations	1,327,682	696,701
Basic and diluted funds from Operations per share/unit	0.068	0.036
Contributions to reserve account	(163,013)	(188,468)
Adjusted funds from Operations	1,164,669	508,233
Basic and diluted adjusted funds from Operations per share/unit	0.060	0.026
Reconciliation to distributable income
Accretion of debentures	36,443	75,990
Accretion of mortgages payable	23,983	23,214
Distributable income	1,225,095	607,437
Basic and diluted distributable income per share/unit	0.063	0.031
Distributions	0	0

Lakeview Hotel Investment Corp is listed on the TSX Venture Exchange under the symbol "LHR".  Lakeview Hotel Investment Corp receives income from ownership, management and licensing of hotel properties. 

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.

SOURCE: Lakeview Hotel Investment Corp

Keith Levit, President, or Avrum Senensky, Executive Vice President, Tel: [phone], Fax: [phone], Email [email protected]