LHR.UN Lakeview Hotel Invest Corp

WINNIPEG, Nov. 29 /CNW/ -- /NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTIBUTION TO U.S. NEWS WIRE SERVICES/ WINNIPEG, Nov. 29 /CNW/ - Lakeview Hotel Real Estate Investment Trust ("Lakeview REIT") is pleased to report its financial results for the quarter ended September 30, 2010.  The following comments in regard to the financial results should be read in conjunction with the September 30, 2010 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. Lakeview REIT experienced its strongest quarterly results since 2008.  Revenue Per Available Room increased from $64.43 in the third quarter of 2009 to $71.13 in the third quarter of 2010.  As a result, Lakeview REIT enjoyed an 8.99% increase in total revenues in the third quarter when compared to the third quarter of 2009. Other performance measures also showed significant improvement.  Adjusted Funds From Operations for the quarter were $793,029 versus -$94,481 in third quarter 2009.  Distributable Income increased from $273,932 in the third quarter of 2009 to $1,208,354 in the third quarter of 2010. Lakeview REIT has seen a slow and steady improvement in operating results since early in 2010.  Revenues remain below the levels they were at when the market had peaked, but the reversal of the downward trend is encouraging and is expected to continue.  An expected strong winter drilling season bodes well for continued improvements in year-over-year operating results for the fourth quarter of 2010 and into the first quarter of 2011. Following is a comparison of the operating results for the three and nine months ended September 30, 2010 and the three and six months ended September 30, 2009: Three months ended Nine months ended September 30 September 30 2010 2009 2010 2009 Hospitality Revenue Room 8,814,503 7,971,535 23,157,362 23,322,006 Food & Beverage 667,594 707,895 2,080,165 2,212,330 Other 362,568 353,354 1,124,322 1,364,955 Total Revenue 9,844,665 9,032,784 26,361,849 26,899,291 Expenses 12,192,071 10,562,138 32,694,039 32,149,120 Net Income (Loss) (2,347,406) (1,529,354) (6,332,190) (5,249,829) before future income tax expense Basic and diluted (0.120) (0.078) (0.324) (0.270) income (loss) before income tax per unit Future (Income Tax - - - - Expense) Recovery (1) Net Income (Loss) (2,347,406) (1,529,354) (6,332,190) (5,249,829) Basic and Diluted (0.120) (0.078) (0.324) (0.270) Income (Loss) per Unit Reconciliation to funds from Operations Add (deduct) Amortization of 1,636,127 1,670,341 4,993,624 5,013,603 income properties Amortization of 8,734 8,733 26,202 48,407 franchise fees and licenses Provision for 1,396,062 - 1,396,062 - impairment of note receivable Compensation Costs of 124,000 - 124,000 - Unit Options Distributions from 362,600 122,500 411,600 419,930 Lakeview Flag Licensing General Partnership Income from Lakeview (154,583) (147,640) (397,687) (478,938) Flag Licensing General Partnership Future income tax - - - - expense (recovery) Funds from Operations 1,025,534 124,580 221,611 (246,827) (FFO) Basic and diluted 0.052 0.006 0.011 (0.013) funds from Operations per unit Contributions to (232,505) (219,061) (570,879) (602,260) reserve account Adjusted funds from 793,029 (94,481) (349,268) (849,087) Operations (AFFO) Basic and diluted 0.041 (0.005) (0.018) (0.044) adjusted funds from Operations per unit Reconciliation to distributable income Accretion on debt 300,465 266,540 868,532 771,275 component of convertible debentures Accretion of 51,717 46,543 151,150 136,028 debentures Accretion of 63,143 55,330 190,138 159,992 mortgages payable Decretion of - - - 56,877 mortgages receivable Loss on settlement of - - - 98,244 mortgages receivable Distributable income 1,208,354 273,932 860,552 373,329 Basic and diluted 0.062 0.014 0.044 0.019 distributable income per units Distributions 0 0 0 192,748 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. %SEDAR: 00020441E p align="justify"Keith Levit, President, or Avrum Senensky, Executive Vice Presidentbr/ Tel: (204) 947-1161, Fax: (204) 957-1697, Email a href="mailto:asenensky@lakeviewhotels.com"asenensky@lakeviewhotels.com/a/p

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