WINNIPEG, March 13, 2014 /CNW/ - Lanesborough Real Estate Investment
Trust ("LREIT") (TSX: LRT.UN) today reported its operating results for
the year ended December 31, 2013. 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 year ended December 31, 2013, which may be obtained
from the LREIT website at www.lreit.com or the SEDAR website at www.sedar.com.
HIGHLIGHTS
During 2013, LREIT made significant progress toward improving its
overall financial and liquidity position as a result of a number of key
accomplishments.
-
Elimination of debt covenant breaches: During 2013, LREIT resolved debt covenant breaches on three mortgage
loans with a combined principal balance of approximately $80.8 million.
The resolution of the debt covenant breaches has eliminated a major
risk factor and will enable LREIT to move forward with additional debt
restructuring initiatives. As of December 31, 2013, all debt covenant
breaches have been eliminated with the exception of one swap mortgage
loan which is in breach of net operating income achievement
requirements.
-
Property divestitures: During 2013, LREIT sold two additional properties under its divestiture
program, including the sale of Nova Court on December 31, 2013. The two
sales resulted in net proceeds of $14.5 million after accounting for
selling costs and the discharge/assumption of the existing mortgage
loan debt. Subsequent to December 31, 2013, LREIT redeemed $10 million
of the 9% mortgage bonds (TSX: LRT.NT.A) which were, in part, secured
against the Nova Court property.
-
NOI gains for Fort McMurray properties: During 2013, the net operating income of the Fort McMurray property
portfolio, excluding Parsons Landing, increased by $1.5 million or 11%,
compared to 2012. The increase in operating income reflects the
continued strengthening of economic conditions in Fort McMurray and the
completion of income-enhancing capital expenditures for the six
apartment properties which are located in the downtown area of the
City.
-
Debt reduction: After accounting for regular and lump-sum mortgage loan principal
payments and debt discharged/assumed on the sale of properties, the
total long-term debt decreased by $21.0 million during 2013. As at
December 31, 2013, the weighted average interest rate of the total debt
including the revolving loan was 5.9%, compared to 7.4% as at December
31, 2012. As at December 31, 2013, the total debt, including the
revolving loan, was equal to 76% of the carrying value of the total
property portfolio, excluding Parsons Landing
-
Parsons Landing - Reconstruction and completion of acquisition: On June 1, 2013, approximately 16 months after the property was
destroyed by a fire, 84 of the 160 units at Parsons Landing returned to
active rental operations. On October 3, 2013, the reconstruction of the
remaining 76 units was completed and the entire project became fully
operational. On March 6, 2014, the purchase of Parsons Landing was
completed. The acquisition was funded by $39.29 million of net
proceeds from a 7.95%, $40 million first mortgage loan maturing on
April 30, 2015, an advance under the revolving loan and the balance in
cash.
INCOME RESULTS
During 2013, LREIT achieved an increase in income from investment
properties of $14.1 million, mainly due to the following factors:
-
Despite a reduction in the number of income-producing properties, net
operating income, combined with income recoveries on Parsons Landing,
increased by $1.1 million or 4% during 2013, mainly due to the NOI
increase for the Fort McMurray property portfolio. During 2013, the
average monthly rental rate of the Fort McMurray property portfolio
increased by 5% and the overall occupancy level improved from 90% in
2012 to 91% in 2013.
-
Total interest expense decreased by $6.0 million or 18% during 2013, due
to the reduction in mortgage loan debt, the decrease in the weighted
average interest rate of debt and the elimination of mortgage
prepayment charges.
-
As a result of the continued appreciation of property values and the
return of Parsons Landing to rental operations, fair value
gains/adjustments contributed $15.9 million to income.
During 2013, income from discontinued operations decreased by $18.7
million, compared to 2012. The decrease in income from discontinued
operations is attributable to the sale of two of the seniors' housing
complexes in 2012 and the associated gain of $15 million which was
recorded on the sale of the two properties.
Overall, LREIT completed 2013 with comprehensive income of $15.5
million, compared to comprehensive income of $20.1 million in 2012.
CASH FLOW RESULTS
During 2013, cash inflow from operating activities, excluding working
capital adjustments, amounted to $2.0 million, compared to a cash
outflow of $2.1 million during 2012. Including working capital
adjustments, LREIT completed 2013 with a cash inflow from operating
activities of $1.6 million, compared to a cash outflow of $4.5 million
during 2012.
FINANCIAL AND OPERATING SUMMARY
|
December 31
|
|
|
2013
|
|
2012
|
|
2011
|
STATEMENT OF FINANCIAL POSITION
|
|
|
|
|
|
|
Total assets
|
$
|
468,072,319
|
$
|
481,552,578
|
$
|
555,220,070
|
Total long-term financial liabilities (1)
|
$
|
301,147,731
|
$
|
323,026,417
|
$
|
399,176,274
|
Weighted average interest rate
|
|
|
|
|
|
|
|
- Mortgage loan debt
|
|
5.4%
|
|
7.2%
|
|
6.9%
|
|
- Total debt
|
|
5.9%
|
|
7.4%
|
|
7.2%
|
|
Year Ended December 31
|
|
|
2013
|
|
2012
|
|
2011
|
KEY FINANCIAL PERFORMANCE INDICATORS
|
|
|
|
|
|
|
Operating Results
|
|
|
|
|
|
|
Rentals from investment properties
|
$
|
40,328,764
|
$
|
38,410,992
|
$
|
41,852,726
|
Net operating income
|
$
|
24,208,769
|
$
|
22,429,229
|
$
|
25,729,391
|
Income before taxes and discontinued operations
|
$
|
14,689,374
|
$
|
601,545
|
$
|
2,382,662
|
Income and comprehensive income
|
$
|
15,519,586
|
$
|
20,098,308
|
$
|
5,035,231
|
|
|
|
|
|
|
Cash Flows
|
|
|
|
|
|
|
Cash provided by (used in) operating activities
|
$
|
1,625,477
|
$
|
(4,538,612)
|
$
|
(1,566,188)
|
Funds from Operations (FFO)
|
$
|
(887,528)
|
$
|
(7,138,217)
|
$
|
(6,993,506)
|
Adjusted Funds from Operations (AFFO)
|
$
|
(3,863,140)
|
$
|
(10,207,994)
|
$
|
(8,483,052)
|
Distributable loss
|
$
|
(1,501,299)
|
$
|
(5,091,215)
|
$
|
(5,002,715)
|
(1) Long-term financial liabilities consist of mortgage loans, a swap
mortgage loan, debentures, defeased liability and mortgage bonds. The
swap mortgage loan and mortgage bonds are included at face value.
2013 COMPARED TO 2012
Analysis of Income (Loss)
|
|
Year Ended December 31
|
|
Increase (Decrease)
in income
|
|
|
2013
|
|
2012
|
|
Amount
|
|
%
|
Rentals from investment properties
|
|
$
|
40,328,764
|
|
$
|
38,410,992
|
|
$
|
1,917,772
|
|
5.0%
|
Property operating costs
|
|
|
16,119,995
|
|
|
15,981,763
|
|
|
(138,232)
|
|
(0.9)%
|
Net operating income
|
|
|
24,208,769
|
|
|
22,429,229
|
|
|
1,779,540
|
|
7.9%
|
Interest income
|
|
|
1,272,740
|
|
|
969,607
|
|
|
303,133
|
|
31.3%
|
Forgiveness of debt
|
|
|
-
|
|
|
859,561
|
|
|
(859,561)
|
|
(100.0)%
|
Interest expense
|
|
|
(27,223,579)
|
|
|
(33,261,469)
|
|
|
6,037,890
|
|
18.2%
|
Trust expense
|
|
|
(2,312,565)
|
|
|
(2,323,979)
|
|
|
11,414
|
|
0.5%
|
Income recovery on Parsons Landing
|
|
|
2,622,629
|
|
|
3,278,987
|
|
|
(656,358)
|
|
(20.0)%
|
Insurance proceeds
|
|
|
-
|
|
|
925,355
|
|
|
(925,355)
|
|
(100.0)%
|
Income (loss) before the following
|
|
|
(1,432,006)
|
|
|
(7,122,709)
|
|
|
5,690,703
|
|
79.9%
|
Profit on sale of investment properties
|
|
|
221,642
|
|
|
915,531
|
|
|
(693,889)
|
|
(75.8)%
|
Fair value gains
|
|
|
6,970,031
|
|
|
10,308,723
|
|
|
(3,338,692)
|
|
(32.4)%
|
Fair value adjustment of Parsons Landing
|
|
|
8,929,707
|
|
|
(3,500,000)
|
|
|
12,429,707
|
|
355.1%
|
Income (loss) before taxes and discontinued
operations
|
|
|
14,689,374
|
|
|
601,545
|
|
|
14,087,829
|
|
-
|
Current income tax expense
|
|
|
-
|
|
|
49,763
|
|
|
49,763
|
|
100.0%
|
Income (loss) before discontinued operations
|
|
|
14,689,374
|
|
|
551,782
|
|
|
14,137,592
|
|
-
|
Income from discontinued operations
|
|
|
830,212
|
|
|
19,546,526
|
|
|
(18,716,314)
|
|
(95.8)%
|
Income (loss) and comprehensive income (loss)
|
|
$
|
15,519,586
|
|
$
|
20,098,308
|
|
$
|
(4,578,722)
|
|
(22.8)%
|
Analysis of Rental Revenue
|
|
Year Ended December 31
|
|
|
|
|
|
|
|
|
Increase (Decrease)
|
|
|
% of Total
|
|
|
|
2013
|
|
|
2012
|
|
|
Amount
|
|
|
%
|
|
|
2013
|
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fort McMurray
|
|
$
|
24,422,889
|
|
$
|
22,965,656
|
|
$
|
1,457,233
|
|
|
6%
|
|
|
61%
|
|
|
60%
|
Other investment properties
|
|
|
10,892,024
|
|
|
10,939,943
|
|
|
(47,919)
|
|
|
- %
|
|
|
27%
|
|
|
28%
|
Sub-total
|
|
|
35,314,913
|
|
|
33,905,599
|
|
|
1,409,314
|
|
|
4%
|
|
|
88%
|
|
|
88%
|
Properties sold
|
|
|
3,425,499
|
|
|
4,110,966
|
|
|
(685,467)
|
|
|
(17)%
|
|
|
8%
|
|
|
11%
|
Parsons Landing
|
|
|
1,588,352
|
|
|
394,427
|
|
|
1,193,925
|
|
|
303%
|
|
|
4%
|
|
|
1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
40,328,764
|
|
$
|
38,410,992
|
|
$
|
1,917,772
|
|
|
5%
|
|
|
100%
|
|
|
100%
|
As disclosed in the chart above, total revenue from the investment
properties, excluding properties sold and Parsons Landing, increased by
$1.41 million in 2013, compared to 2012. The increase is comprised of
an increase in revenue from investment properties in Fort McMurray of
$1.46 million, partially offset by a decrease in revenue from the Other
investment properties of $47,919.
The increase in revenue from the Fort McMurray property portfolio
reflects an increase in the average occupancy level, as well as an
increase in the average rental rate. As disclosed in the charts below,
the average occupancy level for the Fort McMurray portfolio increased
from 90% during 2012 to 91% in 2013, while the average monthly rental
rate increased by $111 or 5.0%. The decrease in the occupancy rate of
the Fort McMurray property portfolio during Q4-2013 is largely
attributable to the tightening of market conditions in certain areas of
Fort McMurray, as well as seasonal factors that tend to reduce demand
for suites during the winter months.
Occupancy Level, by Quarter
|
|
2013
|
|
Q1
|
Q2
|
Q3
|
Q4
|
12 Month
Average
|
Fort McMurray
|
93%
|
95%
|
92%
|
84%
|
91%
|
Other investment properties
|
95%
|
94%
|
92%
|
90%
|
93%
|
Properties sold
|
100%
|
100%
|
100%
|
99%
|
100%
|
Parsons Landing
|
n/a
|
n/a
|
n/a
|
n/a
|
n/a
|
Total
|
94%
|
95%
|
93%
|
86%
|
92%
|
|
|
|
|
|
|
|
2012
|
|
Q1
|
Q2
|
Q3
|
Q4
|
12 Month
Average
|
Fort McMurray
|
92%
|
90%
|
87%
|
88%
|
90%
|
Other investment properties
|
98%
|
96%
|
96%
|
97%
|
97%
|
Properties sold
|
100%
|
100%
|
99%
|
100%
|
100%
|
Parsons Landing
|
n/a
|
n/a
|
n/a
|
n/a
|
n/a
|
Total
|
95%
|
92%
|
91%
|
92%
|
92%
|
The occupancy level represents the portion of potential revenue that was
achieved
Average Monthly Rents, by Quarter
|
|
|
|
|
|
|
2013
|
|
Q1
|
Q2
|
Q3
|
Q4
|
12 Month
Average
|
Fort McMurray
|
$2,259
|
$2,275
|
$2,318
|
$2,387
|
$2,329
|
Other investment properties
|
$922
|
$929
|
$931
|
$934
|
$929
|
Properties sold
|
$2,550
|
$2,546
|
$2,692
|
$2,299
|
$2,521
|
Parsons Landing
|
n/a
|
n/a
|
n/a
|
n/a
|
n/a
|
Total
|
$1,739
|
$1,749
|
$1,780
|
$1,786
|
$1,773
|
|
|
|
|
|
|
2012
|
|
Q1
|
Q2
|
Q3
|
Q4
|
12 Month
Average
|
Fort McMurray
|
$2,124
|
$2,191
|
$2,251
|
$2,293
|
$2,218
|
Other investment properties
|
$891
|
$898
|
$902
|
$919
|
$903
|
Properties sold
|
$2,729
|
$2,379
|
$2,174
|
$2,295
|
$2,438
|
Parsons Landing
|
n/a
|
n/a
|
n/a
|
n/a
|
n/a
|
Total
|
$1,704
|
$1,684
|
$1,704
|
$1,739
|
$1,709
|
Analysis of Property Operating Costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31
|
|
|
Increase (Decrease)
|
|
|
|
2013
|
|
|
2012
|
|
|
Amount
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Fort McMurray
|
|
$
|
8,707,915
|
|
$
|
8,768,905
|
|
$
|
(60,990)
|
|
(1)%
|
Other investment properties
|
|
|
5,277,117
|
|
|
5,182,636
|
|
|
94,481
|
|
2%
|
Sub-total
|
|
|
13,985,032
|
|
|
13,951,541
|
|
|
33,491
|
|
- %
|
Properties sold
|
|
|
1,593,323
|
|
|
1,735,839
|
|
|
(142,516)
|
|
(8)%
|
Parsons Landing
|
|
|
541,640
|
|
|
294,383
|
|
|
247,257
|
|
84%
|
Total
|
|
$
|
16,119,995
|
|
$
|
15,981,763
|
|
$
|
138,232
|
|
1%
|
During 2013, property operating costs for the portfolio of investment
properties, excluding properties sold and Parsons Landing, increased by
$33,491, compared to 2012. The increase is comprised of an increase of
$94,481 in the operating costs of the Other investment properties
portfolio, partially offset by a decrease of $60,990 in the Fort
McMurray portfolio.
Analysis of Net Operating Income
|
|
Net Operating Income
|
|
|
|
|
Year Ended December 31
|
|
Increase (Decrease)
|
|
Percent of Total
|
|
Operating Margin
|
|
|
|
2013
|
|
|
2012
|
|
|
Amount
|
|
|
%
|
|
|
2013
|
|
|
2012
|
|
|
2013
|
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fort McMurray
|
|
$
|
15,714,974
|
|
$
|
14,196,751
|
|
$
|
1,518,223
|
|
|
11%
|
|
|
65%
|
|
|
63%
|
|
|
64%
|
|
|
62%
|
Other investment properties
|
|
|
5,614,907
|
|
|
5,757,307
|
|
|
(142,400)
|
|
|
(2)%
|
|
|
23%
|
|
|
26%
|
|
|
52%
|
|
|
53%
|
Sub-total
|
|
|
21,329,881
|
|
|
19,954,058
|
|
|
1,375,823
|
|
|
7%
|
|
|
88%
|
|
|
89%
|
|
|
60%
|
|
|
59%
|
Properties sold
|
|
|
1,832,176
|
|
|
2,375,127
|
|
|
(542,951)
|
|
|
(23)%
|
|
|
8%
|
|
|
11%
|
|
|
53%
|
|
|
58%
|
Parsons Landing
|
|
|
1,046,712
|
|
|
100,044
|
|
|
946,668
|
|
|
946%
|
|
|
4%
|
|
|
-
|
|
|
66%
|
|
|
25%
|
Total
|
|
$
|
24,208,769
|
|
$
|
22,429,229
|
|
$
|
1,779,540
|
|
|
8%
|
|
|
100%
|
|
|
100%
|
|
|
60%
|
|
|
58%
|
After considering the increase in rental revenue and property operating
costs, as analyzed in the preceding sections of this press release, net
operating income for the portfolio of investment properties, excluding
properties sold and Parsons Landing, increased by $1.38 million or 7%
during 2013, compared to 2012. As disclosed in the table above, net
operating income for the Fort McMurray portfolio increased by $1.52
million while net operating income for the Other investment properties
portfolio decreased by $0.14 million.
Total net operating income increased by $1.78 million during 2013,
compared to 2012 after accounting for the decrease in net operating
income related to properties sold and the increase in net operating
income attributable to Parsons Landing. During 2013, net operating
income from Parsons Landing combined with the income recovery on
Parsons Landing amounted to $3.67 million, compared to $3.38 million
during 2012, representing an increase of $0.29 million. The income
recovery consisted of the amount recovered under the insurance policy
for revenue losses, less certain operating costs such as property taxes
and insurance which were deducted from the gross insurance recovery
through an "occupancy fee". In comparison, net operating income
consists of total actual revenues less total actual operating costs.
Overall, the operating margin for the property portfolio, excluding
properties sold and Parsons Landing, increased from 59% in 2012, to 60%
in 2013. The increase in the overall operating margin reflects an
increase in the operating margin for the Fort McMurray property
portfolio.
INTEREST EXPENSE
Total interest expense for investment properties decreased by $6.04
million or 18% during 2013, compared to 2012. The decrease is mainly
due to the elimination of mortgage prepayment charges of $2.75 million,
a decrease in mortgage loan and swap mortgage loan interest of $3.49
million and $0.52 million, respectively, and a decrease in amortization
of transaction costs of $0.17 million, partially offset by a reduction
in the gain related to the change in value of interest rate swaps of
$0.74 million.
Total interest expense for discontinued operations decreased by $3.78
million or 83% during 2013, compared to 2012. The decrease is comprised
of a decrease in mortgage loan interest of $1.95 million, the
elimination of mortgage prepayment charges of $1.29 million, and a
decrease in amortization of transaction costs of $0.54 million.
COMPARISON TO PREVIOUS QUARTERS
Analysis of Income (Loss)
|
|
2013
|
2012
|
|
|
|
Q4
|
|
|
Q3
|
|
|
Increase
(Decrease) in
income
|
|
|
Q4
|
|
|
Increase
(Decrease) in
income
|
Rentals from investment properties
|
|
$
|
10,115,906
|
|
$
|
10,417,760
|
|
$
|
(301,854)
|
|
$
|
9,432,387
|
|
$
|
683,519
|
Property operating costs
|
|
|
4,092,631
|
|
|
4,012,556
|
|
|
(80,075)
|
|
|
4,137,920
|
|
|
45,289
|
Net operating income
|
|
|
6,023,275
|
|
|
6,405,204
|
|
|
(381,929)
|
|
|
5,294,467
|
|
|
728,808
|
Interest income
|
|
|
340,701
|
|
|
303,792
|
|
|
36,909
|
|
|
354,645
|
|
|
(13,944)
|
Interest expense
|
|
|
(6,490,178)
|
|
|
(6,281,557)
|
|
|
(208,621)
|
|
|
(8,786,495)
|
|
|
2,296,317
|
Trust expense
|
|
|
(550,238)
|
|
|
(440,395)
|
|
|
(109,843)
|
|
|
(751,957)
|
|
|
201,719
|
Income recovery on Parsons Landing
|
|
|
350,295
|
|
|
630,704
|
|
|
(280,409)
|
|
|
885,329
|
|
|
(535,034)
|
Insurance proceeds
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
525,355
|
|
|
(525,355)
|
Income (loss) before the following
|
|
|
(326,145)
|
|
|
617,748
|
|
|
(943,893)
|
|
|
(2,478,656)
|
|
|
2,152,511
|
Profit on sale of investment properties
|
|
|
56,714
|
|
|
-
|
|
|
56,714
|
|
|
(129,776)
|
|
|
186,490
|
Fair value gains
|
|
|
(2,107,277)
|
|
|
7,652,786
|
|
|
(9,760,063)
|
|
|
1,329,884
|
|
|
(3,437,161)
|
Fair value adjustment of Parsons Landing
|
|
|
1,707,628
|
|
|
5,152,319
|
|
|
(3,444,691)
|
|
|
500,000
|
|
|
1,207,628
|
Income (loss) for the period before taxes
and discontinued operations
|
|
|
(669,080)
|
|
|
13,422,853
|
|
|
(14,091,933)
|
|
|
(778,548)
|
|
|
109,468
|
Current income tax expense
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
49,763
|
|
|
(49,763)
|
Income (loss) for the period before
discontinued operations
|
|
|
(669,080)
|
|
|
13,422,853
|
|
|
(14,091,933)
|
|
|
(828,311)
|
|
|
159,231
|
Income from discontinued operations
|
|
|
159,916
|
|
|
82,471
|
|
|
77,445
|
|
|
17,014,084
|
|
|
(16,854,168)
|
Comprehensive income (loss)
|
|
$
|
(509,164)
|
|
$
|
13,505,324
|
|
$
|
(14,014,488)
|
|
$
|
16,185,773
|
|
$
|
(16,694,937)
|
Comparison to Q3-2013
During Q4-2013, LREIT incurred a loss of $0.33 million, before profit on
sale of investment properties, fair value gains, fair value adjustment
of Parsons Landing, income taxes and discontinued operations, compared
to income of $0.62 million during Q3-2013. The variance in quarterly
results mainly reflects a decrease in net operating income of $0.38
million, a decrease in income recovery on Parsons Landing of $0.28
million, an increase in interest expense of $0.21 million and an
increase in trust expense of $0.11 million. Both the decrease in
operating income and the decrease in income recovery are attributable
to the reconstruction and return of the remaining 76 suites at Parsons
Landing on October 3, 2013. As Parsons Landing is incurring a vacancy
loss during the lease-up period for reconstructed suites, the decrease
in income recovery exceeded the increase in operating income. Another
factor contributing to the decrease in operating income is the decrease
in the occupancy rate of the Fort McMurray property portfolio during
Q4-2013, which is largely attributable to the tightening of market
conditions in certain areas of Fort McMurray as well as seasonal
factors that tend to reduce demand for suites during the winter months.
After accounting for the decrease in fair value gains and fair value
adjustment of Parsons Landing in the combined amount of $13.20 million
and an increase in profit on sale of investment properties of $56,714,
income before income taxes and discontinued operations decreased by
$14.09 million during Q4-2013, compared to Q3-2013.
During Q4-2013, income from discontinued operations increased by $77,445
compared to Q3-2013. The increase in income from discontinued
operations mainly reflects a decrease in interest expense.
After accounting for discontinued operations and income tax expense,
LREIT completed Q4- 2013 with a comprehensive loss of $0.51 million,
compared to comprehensive income of $13.51 million during Q3-2013.
Comparison to Q4-2012
During Q4-2013, loss before profit on sale of investment property, fair
value gains, fair value adjustment of Parsons Landing, income taxes and
discontinued operations, amounted to $0.33 million, compared to a loss
of $2.48 million during Q4-2012, representing a decrease in the loss of
$2.15 million. The decrease in the loss mainly reflects a decrease in
interest expense and an increase in operating income, partially offset
by a decrease in income recovery on Parsons Landing and a decrease in
insurance proceeds.
The decrease in interest expense is mainly due to a decrease in the
weighted average interest rate of mortgage loan debt. The increase in
operating income is mainly due to the return of Parsons Landing to full
rental operations and an increase in operating income for the Fort
McMurray property portfolio.
During Q4-2013, income from discontinued operations decreased by $16.85
million compared to Q4-2012. The decrease in income from discontinued
operations mainly reflects the sale of Riverside Terrace in December
2012.
After accounting for the variance in fair value gains/adjustments,
profit on sale, income from discontinued operations and income tax
expense, LREIT completed Q4-2013 with a comprehensive loss of $0.51
million, compared to comprehensive income of $16.19 million during
Q4-2012.
ABOUT LREIT
LREIT is a real estate investment trust, which is listed on the Toronto
Stock Exchange under the symbols LRT.UN (Trust Units), LRT.DB.G (Series
G Debentures), LRT.NT.A (Second Mortgage Bonds due December 24, 2015),
LRT.WT (Warrants expiring March 9, 2015) and LRT.WT.A (Warrants
expiring December 23, 2015). The objective of LREIT is to provide
Unitholders with stable cash distributions from investment in a
diversified portfolio of quality real estate properties. 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
Arni Thorsteinson, Chief Executive Officer, or Gino Romagnoli, Investor Relations
Tel: (204) 475-9090, Fax: (204) 452-5505, Email: info@lreit.com