LHR.UN Lakeview Hotel Invest Corp

WINNIPEG, June 29, 2011 /CNW/ -- /NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTIBUTION TO U.S. NEWS WIRE SERVICES/ WINNIPEG, June 29, 2011 /CNW/ - Lakeview Hotel Real Estate Investment Trust ("Lakeview REIT") is pleased to report its financial results for the quarter ended March 31, 2011.  The following comments in regard to the financial results should be read in conjunction with the March 31, 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, as gauged by its hotel revenues, is now in a strong upward trend.  The first quarter of 2011 saw a 22% increase in RevPar over the first quarter of 2010.  Occupancy was up by 22.6%.  In 14 of the last 16 months the REIT has seen increases in year-over-year monthly room revenues.  The only months where year-over-year revenues have not increased have been during the spring break up period where weather related road restrictions have huge impacts on drilling activity.  Forecasts for drilling activity are looking very positive and the REIT is expecting improved operating results to continue into the second half of 2011. Markets experiencing exceptional results include Fort Nelson, BC, where the deep shale gas in the Horn River basin continues to be developed; Drayton Valley, AB, where new technology has resulted in a resurgence of activity in the Pembina Cardium formation; and Slave Lake, AB, which will undergo a massive redevelopment as a result of the destruction caused by the forest fire.  The overall outlook in Alberta is much improved.  Many of Lakeview REIT's properties will benefit from wind energy, pipeline, and carbon capture projects in the region. With the improvements in operations, the REIT is now becoming cash flow positive. As cash flow continues to improve, the REIT will have two priorities.  These are to reduce its indebtedness; and to reinvest in its properties in order to remain competitive in the markets in which it operates. Following is a comparison of the operating results for the three months ended March 31, 2011 and the three months ended March 31, 2010: Three months ended March 31 2011 2010 Hospitality Revenue Room 8,371,140 6,830,877 Food & Beverage 796,837 678,116 Other 461,861 527,427 Total Revenue 9,629,838 8,036,420 Expenses 10,724,190 10,163,798 Net Loss before future income tax expense (1,094,352) (2,127,378) Basic and diluted Loss before income tax per unit (0.056) (0.109) Net Loss (1,094,352) (2,127,378) Basic and diluted Loss per Unit (0.056) (0.109) Reconciliation to Funds from Operations Add (deduct) Amortization of income properties 1,441,544 1,612,940 Amortization of franchise fees 8,109 8,734 Distributions from Lakeview Flag Licensing General Partnership 258,720 29,400 Distributions from Lakeview Flag Management General Partnership 103,250 - Income from Lakeview Flag Licensing General Partnership (147,846) (115,379) Income from Lakeview Flag Management General Partnership (112,518) (92,339) Funds from Operations 456,907 (684,022) Basic and diluted Funds from Operations per unit 0.023 (0.035) Contributions to reserve account (181,846) (157,620) Adjusted Funds from Operations 275,061 (841,642) Basic and diluted adjusted Funds from Operations per unit 0.014 (0.043) Reconciliation to distributable income Accretion on debt component of convertible debentures 319,841 283,420 Accretion of debentures 54,516 49,061 Accretion of mortgages payable 63,850 63,264 Loss on disposal of income properties 17,293 - Distributable Income 730,561 (445,897) Basic and diluted distributable income per unit 0.037 (0.023) 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/June2011/29/c2453.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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