LHR.UN Lakeview Hotel Invest Corp

WINNIPEG, Aug. 29, 2011 /CNW/ -- /NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTIBUTION TO U.S. NEWS WIRE SERVICES/ WINNIPEG, Aug. 29, 2011 /CNW/ - Lakeview Hotel Real Estate Investment Trust ("Lakeview REIT") is pleased to report its financial results for the quarter ended June 30, 2011.  The following comments in regard to the financial results should be read in conjunction with the June 30, 2011 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 saw increases in year-over-year revenues during the quarter and the strong upward trend that Lakeview REIT has enjoyed since March 2010 remains intact.  Occupancy increased by 6.6% in the second quarter of 2011 vs. the second quarter of 2010.  RevPar was up by 4.8%.  Year-to-date through June 30(th), occupancy is up 14.2% and RevPar is up by 12.8%.  For the second consecutive quarter, Lakeview REIT generated positive distributable income.  Through the first six months of 2011, distributable income totalled $880,623.  This represents an increase of $1,423,029 from the same period in 2010. Improvements in operating revenues have continued into the third quarter of 2011 and forecasts for drilling activity remain very positive going into the fourth quarter and beyond.  Recent turmoil in world equity markets could potentially lead to lower commodity prices and result in revisions to drilling plans, but at this point the outlook looks positive and the strong upward trend is expected to continue. Following is a comparison of the operating results for the three and six months ended June 30, 2011 and the three and six months ended June 30, 2010: Three months ended Six months ended June 30 June 30 2011 2010 2011 2010 Hospitality Revenue Room 7,929,387 7,511,982 16,300,527 14,342,859 Food & 782,130 Beverage 734,455 1,578,967 1,412,571 Other 707,103 428,931 1,168,964 956,358 Total Revenue 9,418,620 8,675,368 19,048,458 16,711,788 Expenses (10,550,813) (10,393,419) (21,275,003) (20,557,217) Net Income (1,132,193) (Loss) (1,718,051) (2,226,545) (3,845,429) Basic and (0.058) diluted income (loss) before income tax per unit (0.088) (0.114) (0.197) Reconciliation to funds from Operations Add (deduct) Amortization 1,415,694 of income properties 1,605,202 2,857,238 3,218,142 Amortization 7,099 of franchise fees and licenses 8,734 15,208 17,468 Distributions from Lakeview Flag Licensing General Partnership 37,485 19,600 296,205 49,000 Distributions from Lakeview Flag Management General Partnership - - 103,250 - Income from (136,443) Lakeview Flag Licensing General Partnership (127,725) (284,289) (243,104) Income from (106,504) Lakeview Flag Management General Partnership (102,265) (219,022) (194,604) Recovery of (177,726) expense on amount previously written off - (177,726) - Funds from (92,588) Operations (314,505) 364,319 (998,527) Basic and (0.005) diluted funds from Operations per unit (0.016) 0.019 (0.051) Contributions (186,413) to reserve account (180,754) (368,259) (338,374) Adjusted funds (279,001) from Operations (495,259) (3,940) (1,336,901) Basic and (0.014) diluted adjusted funds from Operations per unit (0.025) (0.000) (0.068) Reconciliation to distributable income Accretion on 321,671 debt component of convertible debentures 284,647 641,512 568,067 Accretion of 55,972 debentures 50,372 110,488 99,433 Accretion of 51,420 mortgages payable 63,731 115,270 126,995 Loss on - disposal of income properties - 17,293 - Distributable 150,062 income (96,509) 880,623 (542,406) Basic and 0.008 diluted distributable income per unit (0.005) 0.045 (0.028) Distributions - - - - 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.    To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/August2011/29/c6940.html p 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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