WINNIPEG, Aug. 9, 2017 /CNW/ - Lanesborough Real Estate
Investment Trust ("LREIT") (TSX: LRT.UN) today reported its
operating results for the quarter ended June
30, 2017. The following comments in regard to the financial
position and operating results of LREIT should be read in
conjunction with Management's Discussion & Analysis and the
financial statements for the quarter ended June 30, 2017, which may be obtained from the
LREIT website at www.lreit.com or the SEDAR website at
www.sedar.com.
Operating results during Q2-2017 continued to reflect the
stabilized rental market conditions in Fort McMurray, Alberta, LREIT's primary
market, as the process of re‑establishing the community
progresses.
According to a recent report by Canada Mortgage and Housing
Corporation ("CMHC"), one‑third of the previously destroyed houses
are now under reconstruction, with the vast majority breaking
ground during the first six months of 2017. CMHC is
forecasting further reductions in the average vacancy rates,
primarily due to demand from construction workers taking part in
the rebuilding efforts.
Operating Results
LREIT completed the three and six months periods ended
June 30, 2017 with negative funds
from operations ("FFO") of $1.6
million and $3.3 million,
respectively, compared to negative FFO of $4.3 million and $8.6
million, respectively, during the same periods in 2016. The
favourable FFO variance mainly reflects a decrease in interest
expense and an increase in net operating income ("NOI").
The decrease in interest expense is mainly due to the
divestiture and debt restructuring initiatives undertaken during
2016 which resulted in reduced amortization of transaction costs,
reduced mortgage loan debt and reductions in the rate of interest
applicable to the revolving loan and Series G debenture debt.
The increase in NOI is mainly due to an increase in the net
rental revenue of the Fort
McMurray property portfolio, as a result of an increase in
the average occupancy rate to 71% during the second quarter of
2017, compared to 58% during the second quarter of 2016. The
increase in net rental revenues was partially offset by the loss of
revenue associated with sales of Beck Court and Willowdale Gardens
in May 2016.
Overall, LREIT completed Q2-2017 with a loss and comprehensive
loss of $8.9 million, compared to
income and comprehensive income of $20.5
million during Q2-2016. The decrease in income mainly
reflects an unfavourable variance in fair value adjustments of the
investment properties, partially offset by the above noted decrease
in interest expense and increase in NOI.
Liquidity and Capital Resources
During the first six months of fiscal 2017, cash used in
operating activities, before working capital adjustments, amounted
to $0.7 million, compared to
$1.6 million during the same period
in 2016, and the cash shortfall, after accounting for working
capital adjustments, regular mortgage principal repayments, capital
expenditures, and transaction costs, was $4.5 million, compared to $3.3 million during the first six months of 2016.
The increase in the cash shortfall is mainly due to an increase in
cash used in operations after working capital adjustments. The cash
shortfall was funded by additional advances under the revolving
loan facility from 2668921 Manitoba Ltd.
As of June 30, 2017, LREIT is
current with respect to all debt service payments, with the
exception of one matured mortgage loan with an expired forbearance
agreement. As previously reported, the mortgage loan matured in
December 2015 and subsequently
operated under a forbearance agreement which matured on
February 28, 2017, after which it was
being over-held, pending the completion of a review of an extension
request.
During Q2-2017, the extension request was denied and the lender
of the matured mortgage loan applied to have a receiver appointed
in respect of the underlying mortgaged property. Due to a defect in
the security held by the lender, the lender was not able to place
the property into receivership; however, the Alberta Court of Queen's Bench did inform the
lender that the guarantee provided by LREIT with respect to the
original mortgage loan was enforceable and granted summary judgment
against LREIT in respect of the guarantee obligation. As a result,
the lender may pursue the enforcement options available to an
unsecured creditor, including a new application for receivership
that would encompass LREIT's beneficial ownership of the property.
LREIT is unable to satisfy the full repayment of the matured
mortgage loan with its current resources and continues to seek a
settlement with the lender in the form of extended financing or by
the divestiture of the property.
As previously reported, five mortgage loans on eight properties
with an aggregate principal balance of $64.3
million, which were previously in default of debt service
payments, are still presented as being in default, as the lender
indicated that there are service fees outstanding with respect to
the loans and no payment of such fees has been made.
Management expects that an agreement with respect to the servicing
fees will be negotiated and that any default will be remedied. In
the interim, LREIT continues to meet the debt service obligations
of these mortgages and the lender has taken no action to enforce
the loans. In the event that full repayment is demanded LREIT would
not be able to satisfy the full repayment of the loan with its
current resources.
Outlook
LREIT continues to benefit from the debt restructuring and
divestiture activities that took place during 2016, as they have
allowed for the deferral of interest payments, a decrease in
mortgage loan debt, and decreases in the interest rates charged.
Such factors, when combined with the improved operating performance
being experienced in fiscal 2017, are beginning to reduce the
extent of the operating cash deficiencies.
Notwithstanding the progress made, LREIT continues to face
financing challenges and the ability to continue operations in the
near‑term is contingent on the continued financial support of
Shelter and its parent company, 2668921 Manitoba Ltd., as well as
LREIT's ability to renew and/or refinance its mortgage loan debts
as they become due.
Looking beyond the post‑fire rebuilding process in Fort McMurray, which may take several years,
the long term prospects of the Fort
McMurray rental market will remain closely correlated with
the price of oil and oil sands development activity.
As previously announced on March 31,
2017, LREIT no longer satisfies the continued listing
requirements of the Toronto Stock Exchange and it is not
anticipated that such requirements will be satisfied in the
foreseeable future. As a result, LREIT intends to transition the
listings of its trust units and Series G debentures to the TSX
Venture Exchange later this year.
STATEMENT OF FINANCIAL POSITION
|
|
June 30
|
|
December
31
|
|
|
2017
|
|
2016
|
|
2015
|
Total
assets
|
|
$
|
236,253,617
|
|
$
|
245,402,329
|
|
$
|
278,524,804
|
Total long‑term
financial liabilities (1)
|
|
$
|
247,863,222
|
|
$
|
243,501,308
|
|
$
|
279,529,237
|
Weighted average
interest rate
|
|
|
|
|
|
|
|
|
|
|
‑ Mortgage loan
debt
|
|
|
5.7%
|
|
|
5.8%
|
|
|
6.0%
|
|
‑ Total
debt
|
|
|
5.6%
|
|
|
5.6%
|
|
|
6.4%
|
|
|
(1)
|
Long‑term financial
liabilities consist of mortgage loans, debentures, defeased
liability (December 2015) and the
revolving loan from 2668921 Manitoba Ltd.
|
KEY FINANCIAL PERFORMANCE INDICATORS
|
Three Months
Ended June 30
|
|
Six Months
Ended June 30
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Operating
Results
|
|
|
|
|
|
|
|
|
Rentals from
investment properties
|
$
|
4,880,593
|
|
$
|
3,979,652
|
|
$
|
9,525,108
|
|
$
|
8,431,114
|
|
Net operating
income
|
$
|
2,474,144
|
|
$
|
1,824,148
|
|
$
|
4,706,257
|
|
$
|
3,483,505
|
|
Income (loss) before
discontinued operations
|
$
|
(8,899,395)
|
|
$
|
20,514,463
|
|
$
|
(13,591,204)
|
|
$
|
12,874,234
|
|
Income (loss) &
comprehensive income (loss)
|
$
|
(8,909,938)
|
|
$
|
20,488,721
|
|
$
|
(13,555,657)
|
|
$
|
12,889,424
|
|
Funds from Operations
(FFO)
|
$
|
(1,563,031)
|
|
$
|
(4,343,306)
|
|
$
|
(3,340,948)
|
|
$
|
(8,623,880)
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
Flows
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash provided by
(used in) operating activities
|
$
|
(851,127)
|
|
$
|
265,838
|
|
$
|
(2,069,944)
|
|
$
|
(1,146,534)
|
|
Adjusted Funds from
Operations (AFFO)
|
$
|
(1,713,565)
|
|
$
|
(4,464,442)
|
|
$
|
(3,598,744)
|
|
$
|
(9,067,860)
|
ANALYSIS OF OPERATING RESULTS
Analysis of Income
(Loss)
|
|
Three Months Ended
June 30
|
|
Increase
(Decrease) in Income
|
|
2017
|
|
2016
|
|
Amount
|
|
%
|
Rentals from
investment properties
|
$
|
4,880,593
|
|
$
|
3,979,652
|
|
$
|
900,941
|
|
23%
|
Property operating
costs
|
(2,406,449)
|
|
(2,155,504)
|
|
250,945
|
|
(12)%
|
Net operating
income
|
2,474,144
|
|
1,824,148
|
|
649,996
|
|
36%
|
Interest
income
|
44,612
|
|
39,735
|
|
4,877
|
|
12%
|
Interest
expense
|
(3,713,754)
|
|
(5,764,385)
|
|
2,050,631
|
|
36%
|
Trust
expense
|
(357,490)
|
|
(558,510)
|
|
201,020
|
|
36%
|
Loss before the
following
|
(1,552,488)
|
|
(4,459,012)
|
|
2,906,524
|
|
65%
|
Gain on sale of
investment property
|
-
|
|
20,986
|
|
(20,986)
|
|
n/a
|
Fair value
adjustments ‑ Investment properties
|
(7,346,907)
|
|
24,952,489
|
|
(32,299,396)
|
|
(129)%
|
Income (loss)
before discontinued operations
|
(8,899,395)
|
|
20,514,463
|
|
(29,413,858)
|
|
(143)%
|
Loss from
discontinued operations
|
(10,543)
|
|
(25,742)
|
|
15,199
|
|
59%
|
Income (loss) and
comprehensive income (loss)
|
$
|
(8,909,938)
|
|
$
|
20,488,721
|
|
$
|
(29,398,659)
|
|
(143)%
|
|
|
|
|
|
|
|
|
|
Six Months Ended June
30
|
|
Increase
(Decrease) in Income
|
|
2017
|
|
2016
|
|
Amount
|
|
%
|
Rentals from
investment properties
|
$
|
9,525,108
|
|
$
|
8,431,114
|
|
$
|
1,093,994
|
|
13%
|
Property operating
costs
|
(4,818,851)
|
|
(4,947,609)
|
|
128,758
|
|
3%
|
Net operating
income
|
4,706,257
|
|
3,483,505
|
|
1,222,752
|
|
35%
|
Interest
income
|
90,224
|
|
56,988
|
|
33,236
|
|
58%
|
Interest
expense
|
(7,400,008)
|
|
(11,420,565)
|
|
4,020,557
|
|
35%
|
Trust
expense
|
(772,968)
|
|
(1,114,940)
|
|
341,972
|
|
31%
|
Loss before the
following
|
(3,376,495)
|
|
(8,995,012)
|
|
5,618,517
|
|
62%
|
Gain on sale of
investment property
|
58,377
|
|
20,986
|
|
37,391
|
|
178%
|
Fair value
adjustments ‑ Investment properties
|
(10,273,086)
|
|
21,848,260
|
|
(32,121,346)
|
|
(147)%
|
Income (loss)
before discontinued operations
|
(13,591,204)
|
|
12,874,234
|
|
(26,465,438)
|
|
(206)%
|
Income from
discontinued operations
|
35,547
|
|
15,190
|
|
20,357
|
|
134%
|
Income (loss) and
comprehensive income (loss)
|
$
|
(13,555,657)
|
|
$
|
12,889,424
|
|
$
|
(26,445,081)
|
|
(205)%
|
LREIT completed the three and six month periods ended
June 30, 2017 with a loss and
comprehensive loss of $8.9 million
and $13.6 million, respectively,
compared to income and comprehensive income of $20.4 million and $12.9
million, respectively, during the three and six month
periods ended June 30, 2016. The
decrease in the income during the three and six month periods ended
June 30, 2017 mainly reflects an
unfavorable variance in the fair value adjustments of the
investment properties, partially offset by a decrease in interest
expense and an increase in net operating income.
The decrease in interest expense mainly reflects a decrease in
the amortization of transaction costs, a reduced level of mortgage
loan debt, and a decrease in the interest rates on the revolving
loan facility from 2668921 Manitoba Ltd. and the Series G
debentures, all of which are covered in more detail in the
"Interest Expense" section of this report.
The increase in net operating income mainly reflects an increase
in rental revenue, due to an increase in the occupancy level of the
Fort McMurray properties,
partially offset by a decrease in net operating income as a result
of the sales of Beck Court and Willowdale Gardens.
The increase in the occupancy level of the Fort McMurray portfolio is primarily the
result of the entry of homeowners displaced by the May 2016 wildfire into the rental market and the
commencement of the post‑fire rebuild. The average occupancy
level increased from 55% during the first six months of 2016 to 70%
during the first six months of 2017. The extent and duration
of the impact of the rebuilding effort on future operating results
is uncertain and the long term prospects of the Fort McMurray rental market remain dependent
on the price of oil and the level of future oil sands development
activity.
Analysis of Rental
Revenue
|
|
Three Months Ended
June 30
|
Six Months Ended June
30
|
|
2017
|
|
2016
|
|
Increase
(Decrease)
|
|
2017
|
|
2016
|
|
Increase
(Decrease)
|
|
|
|
|
|
|
|
|
|
|
|
|
Fort McMurray
properties
|
$
|
3,800,949
|
|
$
|
2,838,555
|
|
$
|
962,394
|
|
$
|
7,371,036
|
|
$
|
5,582,872
|
|
$
|
1,788,164
|
Other investment
properties
|
391,025
|
|
432,116
|
|
(41,091)
|
|
774,218
|
|
851,118
|
|
(76,900)
|
Sub‑total
|
4,191,974
|
|
3,270,671
|
|
921,303
|
|
8,145,254
|
|
6,433,990
|
|
1,711,264
|
Held for sale and/or
sold properties
|
688,619
|
|
708,981
|
|
(20,362)
|
|
1,379,854
|
|
1,997,124
|
|
(617,270)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
$
|
4,880,593
|
|
$
|
3,979,652
|
|
$
|
900,941
|
|
$
|
9,525,108
|
|
$
|
8,431,114
|
|
$
|
1,093,994
|
Occupancy Level,
by Quarter
|
|
2017
|
|
Q1
|
Q2
|
6
Month Average
|
Fort McMurray
properties
|
68%
|
71%
|
70%
|
Other investment
properties
|
71%
|
73%
|
72%
|
Total
|
68%
|
72%
|
70%
|
|
|
|
|
Held for sale and/or
sold properties
|
79%
|
79%
|
79%
|
|
2016
|
|
Q1
|
Q2
|
6 Month
Average
|
Q3
|
Q4
|
12
Month Average
|
Fort McMurray
properties
|
52%
|
58%
|
55%
|
76%
|
72%
|
65%
|
Other investment
properties
|
72%
|
74%
|
73%
|
69%
|
69%
|
71%
|
Total
|
54%
|
60%
|
57%
|
75%
|
72%
|
65%
|
|
|
|
|
|
|
|
Held for sale and/or
sold properties
|
75%
|
64%
|
70%
|
86%
|
82%
|
75%
|
Average Monthly
Rents, by Quarter
|
|
2017
|
|
Q1
|
Q2
|
6
Month Average
|
Fort McMurray
properties
|
$1,684
|
$1,707
|
$1,696
|
Other investment
properties
|
$909
|
$909
|
$909
|
Total
|
$1,554
|
$1,573
|
$1,563
|
|
|
|
|
Held for sale and/or
sold properties
|
$2,593
|
$2,611
|
$2,602
|
|
2016
|
|
Q1
|
Q2
|
6
Month Average
|
Q3
|
Q4
|
12
Month Average
|
Fort McMurray
properties
|
$1,699
|
$1,599
|
$1,649
|
$1,700
|
$1,669
|
$1,667
|
Other investment
properties
|
$969
|
$960
|
$964
|
$945
|
$919
|
$948
|
Total
|
$1,576
|
$1,491
|
$1,534
|
$1,573
|
$1,543
|
$1,546
|
|
|
|
|
|
|
|
Held for sale and/or
sold properties
|
$1,783
|
$2,036
|
$1,873
|
$2,546
|
$2,581
|
$2,088
|
During the three and six months ended June 30, 2017, total revenue from LREIT's
investment properties, excluding held for sale and/or sold
properties, increased by $0.9 million
or 28% and $1.7 million or 27%,
respectively, compared to the same periods in the prior year. The
increase mainly reflects an increase in the average occupancy level
of the Fort McMurray properties,
as well as an increase in the average monthly rental rate.
The average occupancy level for the Fort McMurray portfolio increased from 58%
during Q2-2016 to 71% during Q2-2017 and increased from 55% during
the first six months of 2016 to 70% during the first six months of
2017 driving the increase in revenue. The average monthly rental
rate increased by $108 per suite or
7% and $47 per suite or 3% during the
three and six months ended June 30,
2017, respectively, compared to the same periods in the
prior year.
Notwithstanding the positive revenue results during the first
six months of 2017, the revenue results of the Fort McMurray property portfolio continue to
reflect challenging rental market conditions as a result of the low
level of oil sands development activity in the region, with rental
rates that continue to be depressed relative to historical levels.
The impact of the low level of oil sands development activity
continues to be tempered by the entry of homeowners displaced by
the wildfire into the rental market and the migration of workers
involved in the rebuilding effort.
The depressed level of rental rates, together with the
uncertainty regarding the extent and/or duration of the post‑fire
rental market recovery, are key factors that continue to cast
significant doubt as to the ability of LREIT to sustain operations
into the foreseeable future. Measures being taken by management in
order to address the liquidity challenges facing LREIT and improve
operating performance are discussed in the "Liquidity and Capital
Resources" section of the 2017 second quarter MD&A.
During the three and six month periods ended June 30, 2017, revenue from the held for sale
and/or sold properties decreased by $0.02
million or 3% and $0.6 million
or 31%, respectively, compared to the same periods in the prior
year. The decrease in revenue from held for sale and/or sold
properties was primarily due to the sales of Beck Court and
Willowdale Gardens on May 1, 2016,
partially offset by an increase in the revenue of Woodland Park, a
Fort McMurray property which is
currently classified as held‑for‑sale.
Analysis of
Property Operating Costs
|
|
Three Months Ended
June 30
|
Six Months Ended June
30
|
|
2017
|
|
2016
|
|
Increase (Decrease)
|
|
2017
|
|
2016
|
|
Increase
(Decrease)
|
|
|
|
|
|
|
|
|
|
|
|
|
Fort McMurray
properties
|
$
|
1,883,781
|
|
$
|
1,598,135
|
|
$
|
285,646
|
|
$
|
3,743,618
|
|
$
|
3,505,703
|
|
$
|
237,915
|
Other investment
properties
|
300,223
|
|
249,213
|
|
51,010
|
|
604,955
|
|
529,598
|
|
75,357
|
Sub‑total
|
2,184,004
|
|
1,847,348
|
|
336,656
|
|
4,348,573
|
|
4,035,301
|
|
313,272
|
Held for sale and/or
sold properties
|
222,445
|
|
308,156
|
|
(85,711)
|
|
470,278
|
|
912,308
|
|
(442,030)
|
Total
|
$
|
2,406,449
|
|
$
|
2,155,504
|
|
$
|
250,945
|
|
$
|
4,818,851
|
|
$
|
4,947,609
|
|
$
|
(128,758)
|
During the three and six month periods ended June 30, 2017, property operating costs,
excluding the held for sale and/or sold properties, increased by
$0.3 million and $0.3 million, respectively, compared to the same
periods in the prior year. The increases in operating costs,
excluding held for sale and/or sold properties, were the result of
the operating costs for the Fort
McMurray properties being abnormally low in the comparative
periods due to the wildfire evacuation that occurred in the second
quarter of 2016. The increases are reflective of property
operating costs returning to normal levels in 2017, partially
offset by a decrease in property taxes due to reductions in the
2017 assessment values for the Fort
McMurray properties.
During the three and six month periods ended June 30, 2017, property operating costs from the
held for sale and/or sold properties decreased by $0.09 million and $0.4
million, respectively, compared to the same periods in the
prior year. The decreases were primarily due to the sales of Beck
Court and Willowdale Gardens on May 1,
2016, partially offset by an increase in the property
operating costs of Woodland Park, a Fort
McMurray property which is currently classified as
held‑for‑sale.
Analysis of Net
Operating Income and Operating Margin
|
|
Net Operating
Income
|
|
|
Three Months
Ended
June 30
|
|
Increase
(Decrease)
|
|
Percent of
Total
|
|
Operating
Margin
|
|
2017
|
|
2016
|
|
Amount
|
|
%
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Fort McMurray
properties
|
$
|
1,917,168
|
|
$
|
1,240,420
|
|
$
|
676,748
|
|
55%
|
|
77%
|
|
68%
|
|
50%
|
|
44%
|
Other investment
properties
|
|
90,802
|
|
182,903
|
|
(92,101)
|
|
(50)%
|
|
4%
|
|
10%
|
|
23%
|
|
42%
|
Sub‑total
|
|
2,007,970
|
|
1,423,323
|
|
584,647
|
|
41%
|
|
81%
|
|
78%
|
|
48%
|
|
44%
|
Held for sale/sold
properties
|
|
466,174
|
|
400,825
|
|
65,349
|
|
16%
|
|
19%
|
|
22%
|
|
68%
|
|
57%
|
Total
|
$
|
2,474,144
|
|
$
|
1,824,148
|
|
$
|
649,996
|
|
36%
|
|
100%
|
|
100%
|
|
51%
|
|
46%
|
|
|
Analysis of Net
Operating Income and Operating Margin
|
|
Net Operating
Income
|
|
|
Six Months
Ended
June 30
|
|
Increase
(Decrease)
|
|
Percent of
Total
|
|
Operating
Margin
|
|
2017
|
|
2016
|
|
Amount
|
|
%
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Fort McMurray
properties
|
$
|
3,627,418
|
|
$
|
2,077,169
|
|
$
|
1,550,249
|
|
75%
|
|
77%
|
|
60%
|
|
49%
|
|
37%
|
Other investment
properties
|
169,263
|
|
321,520
|
|
(152,257)
|
|
(47)%
|
|
4%
|
|
9%
|
|
22%
|
|
38%
|
Sub‑total
|
3,796,681
|
|
2,398,689
|
|
1,397,992
|
|
58%
|
|
81%
|
|
69%
|
|
47%
|
|
37%
|
Held for sale/sold
properties
|
909,576
|
|
1,084,816
|
|
(175,240)
|
|
(16)%
|
|
19%
|
|
31%
|
|
66%
|
|
54%
|
Total
|
$
|
4,706,257
|
|
$
|
3,483,505
|
|
$
|
1,222,752
|
|
35%
|
|
100%
|
|
100%
|
|
49%
|
|
41%
|
During the three and six month periods ended June 30, 2017, the net operating income for the
investment properties portfolio, excluding held for sale and/or
sold properties, increased by $0.6
million or 41% and $1.4
million or 58%, respectively, compared to the same periods
in the prior year. The operating margin, excluding held for
sale and/or sold properties, increased from 44% during Q2-2016 to
48% during Q2-2017, and from 37% during the first six months
of 2016 to 47% during the first six months of 2017. The increases
in net operating income and operating margin, excluding held for
sale and/or sold properties, were primarily due to the increase in
the revenue results of the Fort
McMurray property portfolio, partially offset by an increase
in property operating costs.
After accounting for held for sale and/or sold properties, the
total net operating income during the three and six month periods
ended June 30, 2017, increased by
$0.6 million or 36% and $1.2 million or 35%, respectively, compared to
the same periods in the prior year. The decreases in net operating
income from held for sale and/or sold properties are primarily due
to the sales of Beck Court and Willowdale Gardens on May 1, 2016, partially offset by an increase in
the revenue of Woodland Park, the Fort
McMurray property which is classified as held‑for‑sale.
Interest Expense
During the three and six months ended June 30, 2017, total interest expense decreased
by $2.2 million or 37% and
$4.4 million or 37%, respectively,
compared to the same periods in 2016. The decreases mainly reflect
a decrease in mortgage loan interest and a decrease in debenture
interest, as well as a decrease in interest expense related to
discontinued operations and a decrease in revolving loan
interest.
The decrease in mortgage loan interest is primarily due to a
decrease in the amortization of transaction costs, as well as a
decrease in the total balance of mortgage debt during 2016.
The decrease in debenture interest reflects a decrease in the
amortization of transaction costs and the reduction in the Series G
debenture interest rate from 9.5% to 5%, effective June 30, 2016, in accordance with the amended
terms of the Series G debentures.
The decrease in interest expense related to discontinued
operations is due to the sale of Elgin
Lodge on October 1, 2016.
The decrease in revolving loan interest mainly reflects the
reduction of the interest rate from 12% to 5%, effective
July 1, 2016, partially offset by an
increase in the average outstanding principal balance
ABOUT LREIT
LREIT is a real estate investment trust,
which is listed on the Toronto Stock Exchange under the symbols
LRT.UN (Trust Units) and LRT.DB.G (Series G Debentures). 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.
The Toronto Stock Exchange has not reviewed or approved the
contents of this press release and does not accept responsibility
for the adequacy or accuracy of this press release.
SOURCE Lanesborough Real Estate Investment Trust