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WINNIPEG, Aug. 28, 2014 /CNW/ - Lakeview Hotel Investment Corp ("LHIC") is pleased to report its financial results for the Quarter ended June 30, 2014. The following comments in regard to the financial results should be read in conjunction with the June 30, 2014 financial statements and Management Discussion and Analysis which are available on the SEDAR website www.sedar.com.
Lakeview Hotel Investment Corp. continued to produce very solid operating results in the second quarter of 2014. Comparing operating results from the second quarter of 2013, Funds from Operations (FFO) more than doubled from $518,663 to $1,138,525 as did Adjusted Funds from Operations (AFFO) which increased from $337,014 to $949,961. Distributable income (DI) for the quarter increased from $456,076 to $1,008,491. The outlook for the third quarter of 2014 remains positive with revenues anticipated to be ahead of the revenues achieved on a comparable hotel bases in the third quarter of 2013. Overall expectations are that the second half of 2014 will be flat to better than the second half of 2013.
Based on the very important metrics of FFO, AFFO and DI; Lakeview Hotel Investment Corp. has almost fully recovered from the bottom of the market in 2009 when the economy was in recession and when drilling activity in Alberta and British Columbia collapsed. Results are now comparable to those experienced in the peak of the market in 2006 and 2007.
From the time of the collapse of the market, the company has been struggling with financing issues. Since 2009 the financial statements of Lakeview Hotel Investment Corp. have classified almost all debt as current liabilities and have included Going Concern notes questioning Lakeview's ability to meet its obligations as they came due.
On August 25th, 2014, Lakeview Hotel Investment Corp. completed a financing on 13 of its hotels in Alberta and British Columbia. The $48 million facility was provided by a syndicate of lenders led by Alberta Treasury Branches and included Business Development Bank of Canada (BDC) and Roynat Capital. The financing was for a 5 year term and at an interest rate of 6.08%. Management is of the opinion that the financing will allow these loans to be reclassified as long term debt and removes the requirement for the Going Concern classification. With financial stability in place, management will once again be able to focus its efforts on growing the business of Lakeview Hotel Investment Corp. instead of dealing with financing matters.
Following is a comparison of the operating results for the three and six months ended June 30, 2014 and the comparable period in 2013:
Lakeview Hotel Investment Corp
Three months ended
Six months ended
Food & Beverage
Gain on sale of income properties
Net income (Loss)
Basic and diluted income (loss) before income tax per share
Reconciliation to funds from Operations
Amortization of income properties
Amortization of franchise fees and licenses
Gain on sale of income properties
Distributions from Lakeview Flag Licensing General Partnership
Distributions from Lakeview Flag Management General Partnership
Income from Lakeview Flag Licensing General Partnership
Income from Lakeview Flag Management General Partnership
Funds from Operations
Basic and diluted funds from Operations per share
Contributions to reserve account
Adjusted funds from Operations
Basic and diluted adjusted funds from Operations per share
Reconciliation to distributable income
Accretion of debentures
Accretion of mortgages payable
Loss on derecognition of income properties
Basic and diluted distributable income per share
is listed on the TSX Venture Exchange
under the symbol "LHR". Lakeview Hotel Investment Corp
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.
SOURCE Lakeview Hotel Investment Corp