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Lanesborough REIT Reports 2010 second quarter results

^{Published on 2010-08-13 14:10:58 - Market Wire}
 

 FINANCIAL AND OPERATING SUMMARY June 30 December 31 2010 2009 ------------- ------------- BALANCE SHEET Total assets $525,402,394 $537,144,566 Total long-term financial liabilities (1) $400,194,114 $434,576,262 Three Months Ended Six Months Ended June 30 June 30 --------------------------- --------------------------- 2010 2009 2010 2009 ------------- ------------- ------------- ------------- DISTRIBUTIONS Distributions paid in cash $ - $ - $ - $ 1,530,736 Value of trust units issued under DRIP - - - 104,343 Distributions paid on LP units - - - 33,285 ------------- ------------- ------------- ------------- $ - $ - $ - $ 1,668,364 ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- Per unit $ - $ - $ - $ 0.09 KEY FINANCIAL PERFORMANCE INDICATORS Operating Results Total revenue $ 8,224,521 $ 11,023,743 $ 17,296,529 $ 23,501,066 Net operating income $ 5,045,889 $ 7,860,170 $ 10,431,604 $ 16,525,664 Loss from continuing operations, before future income tax $ (4,376,170) $ (3,646,777) $ (8,346,092) $ (7,996,089) Loss and comprehensive loss $ (3,931,234) $ (3,956,727) $ (301,214) $(12,487,446) Cash Flows Cash flow from operating activities, including discontinued operations $ (1,442,195) $ 1,278,582 $ 209,330 $ 3,766,836 Funds from Operations (FFO) $ (1,741,594) $ (702,323) $ (3,397,606) $ (2,796,395) Adjusted Funds from Operations (AFFO) $ (1,887,298) $ 331,449 $ (3,060,213) $ 1,239,094 Distributable income (loss) $ (1,247,663) $ 967,560 $ (1,947,725) $ 2,582,770 (1) Long-Term Financial Liabilities ------------------------------- Long-term financial liabilities consist of the total of the mortgage loans payable as well as convertible debentures and second mortgage bonds, at face value. PER UNIT AMOUNTS Net operating income - basic $ 0.277 $ 0.450 $ 0.573 $ 0.946 - diluted $ 0.212 $ 0.311 $ 0.439 $ 0.655 Loss from continuing operations, before future income tax - basic $ (0.240) $ (0.209) $ (0.459) $ (0.458) - diluted $ (0.240) $ (0.209) $ (0.459) $ (0.458) Income (loss) and comprehensive income (loss) - basic $ (0.216) $ (0.227) $ (0.017) $ (0.715) - diluted $ (0.216) $ (0.227) $ (0.017) $ (0.715) Distributable income (loss) - basic $ (0.068) $ 0.058 $ (0.107) $ 0.154 - diluted $ (0.068) $ 0.054 $ (0.107) $ 0.145 FFO - basic $ (0.096) $ (0.040) $ (0.187) $ (0.160) - diluted $ (0.096) $ (0.040) $ (0.187) $ (0.160) AFFO - basic $ (0.103) $ 0.019 $ (0.168) $ 0.071 - diluted $ (0.103) $ 0.016 $ (0.168) $ 0.065 2010 COMPARED TO 2009 Analysis of Income (Loss) ------------------------------------------------------------------------- Three Months Ended June 30 Six Months Ended June 30 ------------------------------------------------------- 2010 2009 2010 2009 ------------------------------------------------------- Rental revenue $ 8,065,897 $ 10,944,672 $ 16,929,277 $ 23,216,115 Interest and other income 158,624 79,071 367,252 284,951 Property operating costs 3,178,632 3,163,573 6,864,925 6,975,402 ------------- ------------- ------------- ------------- Net operating income (NOI) 5,045,889 7,860,170 10,431,604 16,525,664 Trust expense 957,472 662,087 1,654,262 1,406,277 ------------- ------------- ------------- ------------- Income before financing expense, amortization, and taxes 4,088,417 7,198,083 8,777,342 15,119,387 Financing expense 6,234,323 8,626,813 12,665,762 18,700,179 ------------- ------------- ------------- ------------- Income before amortization and taxes (2,145,906) (1,428,730) (3,888,420) (3,580,792) Amortization 2,230,264 2,218,047 4,457,672 4,415,297 ------------- ------------- ------------- ------------- Loss before future income tax (4,376,170) (3,646,777) (8,346,092) (7,996,089) Future income tax expense (recovery) - - - 3,429,431 ------------- ------------- ------------- ------------- Loss from continuing operations (4,376,170) (3,646,777) (8,346,092) (11,425,520) Income (loss) from discontinued operations 444,936 (309,950) 8,044,878 (1,061,926) ------------- ------------- ------------- ------------- Loss and comprehensive loss $ (3,931,234) $ (3,956,727) $ (301,214) $(12,487,446) ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- 

 Analysis of Net Operating Income - Income Properties ----------------------------------------------------------- Net Operating Income ----------------------------------------- Three Months Ended June 30 ----------------------------------------- Increase 2010 2009 (Decrease) ----------------------------------------- Fort McMurray $ 3,514,323 $ 6,487,684 $ (2,973,361) Yellowknife 1,008,608 937,613 70,995 Other 408,385 432,036 (23,651) ------------- ------------- ------------- Total $ 4,931,316 $ 7,857,333 $ (2,926,017) ------------- ------------- ------------- ------------- ------------- ------------- Net Operating Income ----------------------------------------- Six Months Ended June 30 ----------------------------------------- Increase 2010 2009 (Decrease) ----------------------------------------- Fort McMurray $ 7,540,276 $ 13,830,817 $ (6,290,541) Yellowknife 1,947,748 1,840,779 106,969 Other 738,606 835,198 (96,592) ------------- ------------- ------------- Total $ 10,226,630 $ 16,506,794 $ (6,280,164) ------------- ------------- ------------- ------------- ------------- ------------- Analysis of Vacancy Loss for Income Properties ------------------------------------------------------------------------- 2010 -------------------------- 6 Month Q1 Q2 Average -------------------------- Fort McMurray 31% 30% 31% Yellowknife 2% 1% 1% Other 9% 7% 8% Total 25% 24% 25% 2009 ---------------------------------------------------- 6 Month 12 Month Q1 Q2 Average Q3 Q4 Average ---------------------------------------------------- Fort McMurray 10% 18% 14% 30% 31% 22% Yellowknife -% 1% 1% 1% 1% 1% Other 2% 5% 3% 5% 6% 4% Total 9% 15% 12% 25% 25% 18% Analysis of Average Monthly Rents for Income Properties ------------------------------------------------------------------------- 2010 -------------------------- 6 Month Q1 Q2 Average -------------------------- Fort McMurray $2,495 $2,143 $2,319 Yellowknife $1,941 $1,915 $1,928 Other $753 $761 $757 Total $2,114 $1,876 $1,995 2009 ---------------------------------------------------- 6 Month 12 Month Q1 Q2 Average Q3 Q4 Average ---------------------------------------------------- Fort McMurray $2,993 $2,904 $3,030 $2,733 $2,595 $2,806 Yellowknife $1,810 $1,828 $1,819 $1,960 $1,854 $1,863 Other $728 $739 $734 $740 $743 $738 Total $2,423 $2,368 $2,450 $2,274 $2,166 $2,308 Analysis of Operating Margin - Income Properties ------------------------------------------------------- Operating Margin ---------------------------------- Three Months Six Months Ended June 30 Ended June 30 ---------------- ----------------- 2010 2009 2010 2009 ---------------- ----------------- Fort McMurray 61% 74% 61% 73% Yellowknife 60% 61% 59% 60% Other 59% 63% 54% 60% Total 61% 71% 60% 70% ------- ------- ------- ------- ------- ------- ------- ------- Overall, the operating margin for the property portfolio decreased from 71% during the second quarter of 2009, to 61% during the second quarter of 2010. The decline in the operating margin is primarily due to a decline in the profitability of the Fort McMurray property portfolio. COMPARISON TO PRECEDING QUARTER Analysis of Loss - Second Quarter 2010 vs. First Quarter 2010 ------------------------------------------------------------------------- Three Months Ended Increase (Decrease) ------------------------------------------------------- June 30, March 31, 2010 2010 Amount % ------------- ------------- -------------- ------------ Rental revenue $ 8,065,897 $ 8,863,379 $ (797,482) (9.0)% Interest and other income 158,624 208,628 (50,004) (24.0)% Property operating costs 3,178,632 3,686,293 (507,661) (13.8)% ------------- ------------- -------------- ------------ Net Operating Income (NOI) 5,045,889 5,385,714 (339,825) (6.3)% Trust expense 957,472 696,790 260,682 37.4% ------------- ------------- -------------- ------------ Income before financing expense, amortization, and taxes 4,088,417 4,688,924 (600,507) (12.8)% Financing expense 6,234,323 6,431,439 (197,116) (3.1)% ------------- ------------- -------------- ------------ Income (loss) before amortization (2,145,906) (1,742,515) (403,391) 23.1% Amortization 2,230,264 2,227,407 2,857 0.1% ------------- ------------- -------------- ------------ Loss from continuing operations for the period (4,376,170) (3,969,922) (406,248) 10.2% Income from discontinued operations for the period 444,936 7,599,942 (7,155,006) (94)% ------------- ------------- -------------- ------------ Income (loss) and comprehensive income (loss) for the period $ (3,931,234) $ 3,630,020 $ (7,561,254) (208.3)% ------------- ------------- -------------- ------------ ------------- ------------- -------------- ------------ 

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