WINNIPEG, MB, Nov. 23,
2023 /CNW/ - Lanesborough Real Estate Investment
Trust ("LREIT") (TSXV: LRT.UN) today reported its operating results
for the quarter ended September 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 September 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 September 30
|
|
Nine
Months Ended September 30
|
|
|
|
|
Increase
(Decrease)
in
Income
|
|
|
|
|
2023
|
|
2022
|
|
Amount
|
|
%
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rentals
from investment properties
|
$
3,249,696
|
|
$
4,417,868
|
|
$ (1,168,172)
|
|
(26) %
|
|
$
9,948,127
|
|
$ 13,438,795
|
|
|
Rental
loss insurance proceeds (reversal of proceeds)
|
1,071
|
|
-
|
|
1,071
|
|
- %
|
|
(105,745)
|
|
-
|
|
|
Property
operating costs
|
(2,154,903)
|
|
(3,110,373)
|
|
955,470
|
|
31 %
|
|
(7,065,663)
|
|
(9,609,990)
|
|
|
Net operating
income (NOI)
|
1,095,864
|
|
1,307,495
|
|
(211,631)
|
|
(16) %
|
|
2,776,719
|
|
3,828,805
|
|
|
Interest
income
|
22,846
|
|
19,464
|
|
3,382
|
|
17 %
|
|
65,979
|
|
73,145
|
|
|
Interest
expense
|
(2,511,932)
|
|
(2,713,225)
|
|
201,293
|
|
7 %
|
|
(7,605,778)
|
|
(8,212,072)
|
|
|
Trust
expense
|
(216,294)
|
|
(291,396)
|
|
75,102
|
|
26 %
|
|
(882,918)
|
|
(1,170,877)
|
|
|
Loss before the
following
|
(1,609,516)
|
|
(1,677,662)
|
|
68,146
|
|
4 %
|
|
(5,645,998)
|
|
(5,480,999)
|
|
|
Loss on
sale of investments and investment property
|
-
|
|
-
|
|
-
|
|
‑
%
|
|
(41,835)
|
|
-
|
|
|
Fair value
adjustments
|
359,825
|
|
11,162,152
|
|
(10,802,327)
|
|
(97) %
|
|
5,607,079
|
|
9,707,894
|
|
|
Gain on
extinguishment of Series G Debentures
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
19,797,489
|
|
|
Income (loss) before
discontinued operations
|
(1,249,691)
|
|
9,484,490
|
|
(10,734,181)
|
|
(113) %
|
|
(80,754)
|
|
24,024,384
|
|
|
Loss from
discontinued operations
|
(632,016)
|
|
(525,089)
|
|
(106,927)
|
|
(20) %
|
|
(1,747,184)
|
|
(1,674,720)
|
|
|
Income (loss) and
comprehensive income (loss)
|
$
(1,881,707)
|
|
$
8,959,401
|
|
$
(10,841,108)
|
|
(121) %
|
|
$
(1,827,938)
|
|
$ 22,349,664
|
|
Overall Results
LREIT completed Q3-2023 with a loss and comprehensive loss of
$1.9 million, compared to an income
and comprehensive income of $9.0
million during Q3-2022, representing a decrease in income
and comprehensive income of $10.8
million. The decrease in income and comprehensive income
mainly reflects a decrease from fair value adjustments of
$10.8 million and a $1.2 million decrease in rental revenues,
partially offset by a $1.0 million
decrease in property operating costs.
The decrease from fair value adjustments reflects a $0.4 million gain from fair value adjustments
during Q3-2023, compared to a $11.2
million gain from fair value adjustments during Q3-2022. The
gain from fair value adjustments during Q3-2023 reflects an
increase in the carrying value of the Fort McMurray properties segment, which is
mainly due to an increase in the normalized revenue considered to
be achievable in the Fort McMurray
rental market as a result of the favourable occupancy and rental
rate trends; partially offset by an unfavourable variance from fair
value adjustments of the Other investment properties segment, which
is mainly due to an increase in normalized property operating
costs. The gain from fair value adjustments recognized during
Q3-2022 mainly reflected an increase in the carrying value of the
Fort McMurray properties segment,
primarily as a result of changes made to key valuation assumptions
to incorporate information obtained from external appraisals
received during the quarter and in recognition of the favourable
occupancy trend.
The decreases in both rental revenues and property operating
costs 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.
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