2011 First Q teleconference:Rather short, but a fairly respectable earnings report. Mood was very upbeat by Management and balance sheet seems solid and ready to take on possible acquisition(s) although Management stated that there was very little available right now but that likely later in the year, there would be some targets for Innvest to look at and possibly acquire. Trend going into the 2nd Q already showing improvements in bookings and increased RevPar potential. Upcoming refinancings said to be already under serious (re)negotiation with lenders and that there should be no problems at all in completing this refinancing leaving a relatively clean slate for Innvest going forward. Foreign travel is picking up and Ontario showed the strongest improvements overall. I think that the worst is over for Innvest now, given how deep and prolonged this recession has/is been. I look forward to a possible hike to the dividend next year so long as this summer and fall prove profitable for the Trust, and the recent major renovations to several hotels draw more guests. Management stated that guests were very impressed by these upgrades and that should bode well for the future. I note that the taxable portion of the payout seems favourable to us, which is a plus, in my opinion.
I was surprised by the lack of unitholder participation in the Q/A and the small number of analysts who also participated. It had to be one of the smallest number in recent memory. Those that did question Management had little to challenge them with given the overall positive improvement over the last comparative periods. Hopefully, we have seen the last of any major future losses for the REIT, other than the usual slow period due to the seasonality
of the lodging business. Any comments?