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Lanesborough REIT reports 2009 third quarter results

^{Published on 2009-11-12 14:02:35 - Market Wire}
 

 Three Months Ended Nine Months Ended September 30 September 30 -------------------------------------------------------- 2009 2008 2009 2008 ------------- ------------- ------------- ------------- DISTRIBUTIONS Total, including distributions on LP units $ - $ 2,509,938 $ 1,668,364 $ 7,513,793 Per unit $ - $ 0.14 $ 0.09 $ 0.42 KEY PERFORMANCE INDICATORS (1) Operations Average income property occupancy rate 76% 96% 84% 95% Income property operating cost ratio 40% 31% 38% 35% Operating Results Total revenue $ 11,961,723 $ 14,166,763 $ 40,296,761 $ 35,396,037 Net operating income $ 7,141,364 $ 9,827,827 $ 25,163,024 $ 23,265,126 Income (loss) from continuing operations for the period before future income tax $ (3,630,897) $ 871,410 $(12,411,955) $ (1,337,854) Loss for the period $ (3,146,599) $ (2,433,198) $(15,634,045) $ (7,421,708) Cash Flows Cash flow from operating activities, including discontinued operations $ 380,597 $ 2,283,931 $ 4,159,969 $ 6,653,863 Funds from Operations (FFO) $ (265,623) $ 3,504,721 $ (3,062,019) $ 5,560,608 Adjusted Funds from Operations (AFFO) $ 179,666 $ 1,991,940 $ 1,423,025 $ 5,214,954 Distributable income $ 638,868 $ 3,383,754 $ 3,204,333 $ 7,439,154 Financing Total mortgage loans to total estimated current value ratio 74% 63% Weighted average interest rate of mortgage loans 5.3% 6.0% PER UNIT AMOUNTS Net operating income - basic $ 0.405 $ 0.561 $ 1.440 $ 1.329 - diluted $ 0.280 $ 0.385 $ 0.997 $ 0.911 Income (loss) from continuing operations for the period, before future income tax - basic $ (0.206) $ 0.050 $ (0.710) $ (0.076) - diluted $ (0.206) $ 0.048 $ (0.710) $ (0.076) Income (loss) for the period - basic $ (0.179) $ (0.139) $ (0.895) $ (0.424) - diluted $ (0.179) $ (0.139) $ (0.895) $ (0.424) Distributable income - basic $ 0.036 $ 0.193 $ 0.183 $ 0.425 - diluted $ 0.032 $ 0.170 $ 0.171 $ 0.395 FFO - basic $ (0.015) $ 0.200 $ (0.175) $ 0.318 - diluted $ (0.015) $ 0.194 $ (0.175) $ 0.308 AFFO - basic $ 0.010 $ 0.114 $ 0.081 $ 0.298 - diluted $ 0.006 $ 0.110 $ 0.071 $ 0.284 THIRD QUARTER 2009 COMPARED TO THIRD QUARTER 2008 - NOI decreased by $2.69 million or 27%, mainly due to an increase in the vacancy loss of the Fort McMurray properties. - Loss before taxes increased by approximately $4.5 million, mainly due to the decrease in NOI and an increase in financing expense related to mortgage loans payable, including the non-cash component which pertains to a change in the value of the interest rate swap agreements. - Cash provided by operating activities, excluding changes in non-cash operating items, decreased by $3.2 million. - FFO decreased by $3.77 million, while AFFO decreased by $1.81 million. On a basic per unit basis, FFO decreased by $0.215 per unit, while AFFO decreased by $0.104 per unit. COMPARISON TO PRECEDING QUARTER Analysis of Loss - Third Quarter 2009 vs. Second Quarter 2009 ------------------------------------------------------------------------- Three Months Ended Increase (decrease) ------------------------------------------------------- September 30, June 30, 2009 2009 Amount % ------------------------------------------------------- Rental revenue $ 11,882,501 $ 13,470,114 $ (1,587,613) (11.8)% Interest and other income 79,222 98,019 (18,797) (19.2)% Property operating costs 4,820,359 4,819,033 1,326 - % ------------- ------------- ------------- ------------- NOI 7,141,364 8,749,100 (1,607,736) (18.4)% Trust expense 710,801 662,087 48,714 7.4% ------------- ------------- ------------- ------------- Income before financing expense, amortization, and taxes 6,430,563 8,087,013 (1,656,450) (20.5)% Financing expense 7,441,292 9,387,906 (1,946,614) (20.7)% ------------- ------------- ------------- ------------- Loss before amortization, and taxes (1,010,729) (1,300,893) 290,164 (22.3)% Amortization 2,620,168 2,663,511 (43,343) (1.6)% ------------- ------------- ------------- ------------- Loss before future income tax expense (recovery) (3,630,897) (3,964,404) 333,507 (8.4)% Future income tax expense - 258,521 (258,521) (100.0)% ------------- ------------- ------------- ------------- Loss from continuing operations for the period (3,630,897) (4,222,925) 592,028 (14.0)% Income from discontinued operations for the period 484,298 266,198 218,100 82% ------------- ------------- ------------- ------------- Loss for the period $ (3,146,599) $ (3,956,727) $ 810,128 (20.5)% ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- - NOI decreased by $1.61 million or 18.4%, mainly due mainly due to the vacancy loss of the Fort McMurray properties. - Loss before taxes increased by approximately $0.33 million. The increased loss mainly reflects a decrease in financing expense largely offset by the decline in NOI. The decrease in financing expense is mainly due to the credit of $1.61 million that was recorded in the third quarter in regard to the forgiveness of interest. 

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