Lanesborough's comeback
Lanesborough R.E.I.T is an old r.e.i.t.;it has been around for awhile.It used to be trading at around $2.50 to $2.75 a share.Three months ago it was trading around $.60 a share.It has residential buildings in the Fort Mcmurray area.This summer it lost a residential building with about 160 units at Parsons Landing(near Fort Mcmurray).In effect,it was taken back by the finance company.But it has made some recent gains.It sold a small commercial building in Burlington and a medium -sized residential building in Yellowknife(NWT).Both turned a profit.Lanesborough got it's residential unit back in Parsons Landing on June 1 and has commenced renovations and leasing out units.
Mortgage troubles
This summer it was in breach of two mortgage loans.Both breaches have recently been eliminated through refinancing.In addition, it must have $44 million in place to complete the acquisition of Parsons Landing.Also it is in breach of a $17 million loan because of a covenant relating to total debt requirement.However taking back Parsons Landing was quite a bonus to Lanesborough as was the refinancing.Also it will sell two senior housing complexes for a profit probably in the spring.Lastly it lowered the weighted average interest rate from 7.2%to 5.4%.All positive factors for Lanesborough.
Financial position
It completed Q3 with comprehensive operating income of $13.5 million compared to Q3 last year's operating income of $2.3million.It also has distribuable income of $714,000 for this quarter. Also net operating income increased by $1.1 million for the quarter and for nine months.
Out of the woods
Lanesborough still has some mortgage problems including it's total debt ratio but it is getting closer to a sustainable positive cash flow.The return of 84 suites at Parsons Landing was a milestone and the rental of 100 out of 160 suites is another one.Is Lanesborough out of the woods?The next quarter will likely give the answer.An increase in distribuable income again will make it worth looking at.
Mortgage troubles
This summer it was in breach of two mortgage loans.Both breaches have recently been eliminated through refinancing.In addition, it must have $44 million in place to complete the acquisition of Parsons Landing.Also it is in breach of a $17 million loan because of a covenant relating to total debt requirement.However taking back Parsons Landing was quite a bonus to Lanesborough as was the refinancing.Also it will sell two senior housing complexes for a profit probably in the spring.Lastly it lowered the weighted average interest rate from 7.2%to 5.4%.All positive factors for Lanesborough.
Financial position
It completed Q3 with comprehensive operating income of $13.5 million compared to Q3 last year's operating income of $2.3million.It also has distribuable income of $714,000 for this quarter. Also net operating income increased by $1.1 million for the quarter and for nine months.
Out of the woods
Lanesborough still has some mortgage problems including it's total debt ratio but it is getting closer to a sustainable positive cash flow.The return of 84 suites at Parsons Landing was a milestone and the rental of 100 out of 160 suites is another one.Is Lanesborough out of the woods?The next quarter will likely give the answer.An increase in distribuable income again will make it worth looking at.
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