LANESBOROUGH REIT REPORTS 2023 SECOND QUARTER RESULTS

WINNIPEG, MB, Aug. 24, 2023 /CNW/ - Lanesborough Real Estate Investment Trust ("LREIT") (TSXV: LRT.UN) today reported its operating results for the quarter ended June 30, 2023. The following comments in regard to the financial position and operating results of LREIT should be read in conjunction with the interim management's discussion & analysis – quarterly highlights and the interim financial statements for the quarter ended June 30, 2023, which may be obtained from the SEDAR+ website at www.sedarplus.ca.

ANALYSIS OF OPERATING RESULTS

Analysis of Income (Loss) and Comprehensive Income (Loss)
	Three Months Ended June 30								Six Months Ended June 30
					Increase (Decrease) in Income
	2023		2022		Amount		%		2023		2022
Rentals from investment properties	$         3,216,678		$       4,340,395		$     (1,123,717)		(26) %		$            6,698,431		$             9,020,927
Rental loss insurance proceeds (reversal of proceeds)	(41,804)		-		(41,804)		- %		(106,816)		-
Property operating costs	(2,111,431)		(3,070,111)		958,680		31 %		(4,910,760)		(6,499,617)
Net operating income (NOI)	1,063,443		1,270,284		(206,841)		(16) %		1,680,855		2,521,310
Interest income	21,479		9,280		12,199		131 %		43,133		53,681
Interest expense	(2,450,463)		(2,541,631)		91,168		4 %		(5,093,846)		(5,498,847)
Trust expense	(401,550)		(304,755)		(96,795)		(32) %		(666,624)		(879,481)
Loss before the following	(1,767,091)		(1,566,822)		(200,269)		(13) %		(4,036,482)		(3,803,337)
Loss on sale of investments and investment property	-		-		-		‑ %		(41,835)		-
Fair value adjustments	1,191,615		(604,866)		1,796,481		297 %		5,247,254		(1,454,258)
Gain on extinguishment of Series G Debentures	-		-		-		-		-		19,797,489
Income (loss) before    discontinued operations	(575,476)		(2,171,688)		1,596,212		74 %		1,168,937		14,539,894
Loss from discontinued operations	(526,201)		(656,615)		130,414		20 %		(1,115,168)		(1,149,631)
Income (loss) and    comprehensive income (loss)	$      (1,101,677)		$    (2,828,303)		$        1,726,626		61 %		$                 53,769		$           13,390,263

Overall Results

LREIT completed Q2-2023 with a loss and comprehensive loss of $1.1 million, compared to a loss and comprehensive loss of $2.8 million during Q2-2022, representing a decrease in loss and comprehensive loss of $1.7 million. The decrease in loss and comprehensive loss mainly reflects a favourable variance from fair value adjustments of $1.8 million and a $1.0 million decrease in property operating costs, partially offset by a $1.1 million decrease in rental revenues from investment properties.

The favourable variance from fair value adjustments reflects a $1.2 million gain from fair value adjustments during Q2-2023, compared to a $0.6 million loss from fair value adjustments during Q2-2022.  The gain in Q2-2023 was primarily due to an increase in the carrying value of the properties located in Fort McMurray, Alberta reflecting an increase in the normalized revenue considered to be achievable as a result of the favourable occupancy and rental rate trends. Losses from fair value adjustments recognized during Q2-2022 mainly reflected an increase in normalized operating cost primarily due to the impact of higher than expected property insurance costs for certain properties within the Fort McMurray properties segment.

The decreases in both property operating costs and rental revenues are primarily attributable to the sales of Laird's Landing, Lakewood Apartments and Westhaven Manor during Q1-2023.

ABOUT LREITLREIT is a real estate investment trust, which is listed on the TSX Venture Exchange under the symbol LRT.UN (Trust Units). For further information on LREIT, please visit our website at www.lreit.com.

FOR FURTHER INFORMATION PLEASE CONTACT:
Gino Romagnoli, Chief Executive Officer, or Arni Thorsteinson, Vice-Chair
Tel: [phone], Fax: [phone], Email: [email protected]

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. 

Neither the TSX Venture Exchange nor its Regulation Services 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 Lanesborough Real Estate Investment Trust