LHR.UN Lakeview Hotel Invest Corp

WINNIPEG, April 29 /CNW/ -- /NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES/ WINNIPEG, April 29 /CNW/ - Lakeview Hotel Real Estate Investment Trust ("Lakeview REIT") reported its financial results for the year ended December 31, 2010.  The following comments in regard to the financial results should be read in conjunction with the December 31, 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. The bottom of the market for Lakeview REIT took place in February, 2010.  Since that time, operating results have been in a clear uptrend.  Starting in March, 2010, year-over-year monthly revenues for Lakeview REIT have increased in every month in 2010 but May. The improvement in operating results is expected to continue.  The overall outlook in the hotel sector has been improving as the economy in North America has been strengthening.  Resource drilling activity in northern Alberta and British Columbia is also expected to show continued improvements from the very low levels of activity that began in 2008.  This is very important for many of the hotels in Lakeview REIT located in smaller resource driven markets in that region. It is important to note that as a result of the improvement in operating results Lakeview REIT is no longer in a negative distributable income position on an annual basis.  If operating results continue to improve and distributable income becomes more positive, available cash flow will be used to reduce liabilities of the REIT, for capital improvements to the properties owned by the REIT, and to replenish the capital reserve which was reduced in 2010.  It is unknown when Lakeview REIT will be in a position to resume distributions to its Unitholders. Lakeview REIT has faced significant cash flow challenges over the past three years.  The support of related parties that own over 1/3 of the units of the REIT and the agreement of the related parties to defer fees has allowed Lakeview REIT to remain current on all payments to all unrelated parties.  Lakeview REIT has remained current on all debt service payments to all mortgage holders, on all payments to all debenture holders, and on all property tax and tax payments to all government agencies.  While the need for further deferrals of fees is expected to be reduced significantly as operating results continue to improve, the related parties remain committed to the welfare of the REIT and will continue to do what is deemed necessary to benefit the REIT and its Unitholders. Following is a comparison of the operating results for the three months and the year ended December 31, 2010 and the comparable periods in 2009: Three months ended Year ended December 31 December 31 2010 2009 2010 2009 Hospitality Revenue Room 7,706,385 6,594,497 30,863,747 29,916,503 Food & 852,082 698,987 2,932,247 2,911,317 Beverage Other 341,756 308,761 1,466,078 1,673,716 Total Revenue 8,900,223 7,602,245 35,262,072 34,501,536 Expenses 12,797,437 10,420,526 45,491,476 42,569,646 Net Loss (3,897,214) (2,818,281) (10,229,404) (8,068,110) Basic and (0.199) (0.144) (0.523) (0.414) Diluted Income (Loss) per Unit Reconciliation to funds from Operations Add (deduct) Amortization 1,639,171 1,680,893 6,632,795 6,694,496 of income properties Amortization 8,214 8,734 34,416 57,141 of franchise fees Provision for 1,396,062 Impairment of Note Receivable Provision for 2,000,000 2,000,000 impairment of income properties Distributions 122,500 19,600 534,100 439,530 from Lakeview Flag Licensing General Partnership Income from (134,437) (105,614) (532,124) (584,552) Lakeview Flag Licensing General Partnership Funds from (261,766) (1,214,668) (164,155) (1,461,495) Operations Basic and (0.013) (0.062) (0.008) (0.075) diluted funds from Operations per unit Contributions (199,177) (172,255) (770,056) (774,515) to reserve account Adjusted funds (460,943) (1,386,923) (934,211) (2,236,010) from Operations Basic and (0.024) (0.071) (0.048) (0.115) diluted adjusted funds from Operations per unit Reconciliation to distributable income Accretion on 302,182 267,423 1,170,714 1,038,698 debt component of convertible debentures Accretion of 53,098 47,786 204,248 183,814 debentures Accretion of 64,550 62,913 254,688 222,905 mortgages payable Decretion of 56,877 mortgages receivable Compensation 124,000 costs of unit options Loss on 98,244 settlement of mortgage receivable Loss on 46,483 46,483 disposal of income properties Distributable 5,370 (1,008,801) 865,922 (635,472) income Basic and 0 (0.052) 0.044 (0.033) diluted 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. 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/April2011/29/c8253.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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