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 LREIT
LREIT 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: (204) 475-9090, Fax: (204) 452-5505, Email: info@lreit.com
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