Lakeview Hotel REIT Reports 1st Quarter Financial Results

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

WINNIPEG, May 25, 2012 /CNW/ - Lakeview Hotel Real Estate Investment Trust ("Lakeview REIT") is pleased to report its financial results for the quarter ended March 31, 2012.  The following comments in regard to the financial results should be read in conjunction with the March 31, 2012 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 firmly entrenched uptrend in operating results that began in 2010 continued through the first quarter of 2012.  Room revenues were up by 8.4% over the first quarter of 2011.  Food and beverage revenues increased by 28.7%, benefiting from the rebranding of restaurants to Roustabouts Restaurants and Bars in Fort Saint John, Fort Saskatchewan and Drayton Valley.

Operating efficiencies produced sharp increases in Funds from Operations (up $743,922 to $1,200,829) and in Adjusted Funds from Operations (up $728,364 to $1,003,425).

Lakeview REIT generated $1,418,611 of Distributable Income during the quarter.  It is anticipated that surplus cash flow generated by the REIT will be used to reduce liabilities of the REIT and for capital improvements to its properties.

Following is a comparison of the operating results for the three months ended March 31, 2012 and the comparable period in 2011:

			Three months ended March 31
		2012		2011
		$		$
Hospitality Revenue
	Room	9,073,290		8,371,140
	Food & Beverage	1,025,674		796,837
	Other	477,717		461,861
Total Revenue		10,576,681		9,629,838
Expenses		11,653,520		10,724,190
Net Income (Loss)		(1,076,839)		(1,094,352)
Basic and diluted income (loss) before income tax per unit		(0.055)		(0.056)
Reconciliation to funds from Operations
Add (deduct)
Amortization of income properties		1,211,294		1,441,544
Amortization of franchise fees and licenses		5,077		8,109
Distributions from Lakeview Flag Licensing General Partnership		199,430		258,720
Distributions from Lakeview Flag Management General  Partnership		215,250		103,250
Income from Lakeview Flag Licensing General Partnership		(159,987)		(147,846)
Income from Lakeview Flag Management General Partnership		(121,986)		(112,518)
Loss on restructuring of convertible debentures		928,590		-
Funds from Operations		1,200,829		456,907
Basic and diluted funds from Operations per unit		0.061		0.023
Contributions to reserve account		(197,404)		(181,846)
Adjusted funds from Operations		1,003,425		275,061
Basic and diluted adjusted funds from Operations per unit		0.051		0.014
Reconciliation to distributable income
Accretion on debt component of convertible debentures		273,312		319,841
Accretion of debentures		30,988		54,516
Accretion of mortgages payable		110,886		63,850
Loss on disposal of income properties		-		17,293
Distributable income		1,418,611		730,561
Basic and diluted distributable income per unit		0.073		0.037
Distributions		0		0

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. 

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