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Gold/Mining/Energy : Canadian REITS, Trusts & Dividend Stocks -- Ignore unavailable to you. Want to Upgrade?

To: David Culver who wrote (106)	5/4/1998 5:08:00 PM
From: Scott Mc	Read Replies (1) \| Respond to of 11633

Im looking at the Coal IR's look cheap, guess you saw this on HOT. Scott First quarter results Canadian Hotel Income Properties Real Es HOT.IR Shares issued 17,250,001 May 1 close $8.70 Mon 4 May 98 News Release Mr. Rob O'Neill reports Canadian Hotel Income Properties Real Estate Investment Trust (CHIP REIT) had strong results for the first quarter ended Mar. 31, 1998, as the REIT continues to lead the consolidation of Canada's fragmented hotel industry. Distributable cash for the period was $3.6-million, or 13 cents per unit. This was ahead of the REIT's most recent forecast of $2.4-million or 9 cents per unit. Revenue for the period, which represents the industry's weakest quarter, was $40-million. Revenue per available room night was $41.95, 14.7 per cent higher than the same period one year prior. Occupancy rates were 56.4 per cent up 2.1 percentage points, and average daily room rates (ADR) were up 10.4 per cent to $74.41. These results exceed industry growth reflecting the internal improvements CHIP REIT's management team has made in a relatively short period of time. The REIT expects internal growth to accelerate as it implements its branding, renovation and repositioning initiatives slated for the months ahead. In 1998, CHIP REIT has continued to build on the momentum of its first year with a number of activities including: Financings generating over $175-million in the form of a debenture issue, a special warrant financing and the sale of instalment receipts receivable; The acquisition of its 24th hotel, the 183-room Festival Inn in Stratford, Ontario - a city attracting over 500,000 visitors each year to its theatre festival; The purchase of the 411-room Citadel Hotel in Ottawa for $20-million - a convention hotel CHIP REIT was previously leasing; A $19-million agreement to acquire The Greenwood Inn in Canmore, Alberta - a 236-room resort hotel near the world renowned Banff National Park. The acquisition is set to close in early June; Agreements to acquire the 272-room Delta Winnipeg and the 157-room Mackenzie Park Inn in Fort McMurray, Alberta for a total purchase price of $20-million. These acquisitions are scheduled to close in late May; Letters of agreement have been executed, and due diligence is under way, for the acquisition of five additional hotel properties totalling $75-million; and A franchise agreement with Holiday Hospitality for The Citadel Hotel in Ottawa to become an upscale Crowne Plaza and the Regina Inn, Saskatchewan to be branded as a Holiday Inn Select. As a result of these initiatives, CHIP REIT has agreements to acquire eight hotels at a total cost of $114-million. OPERATING STATISTICS Occupancy 56.4% Average daily rate $74.41 Revenue per available room night $41.95 STATEMENT OF EARNINGS Three months ended March 31 (thousands of dollars) 1998 Revenue $39,991 Cost of sales 20,194 ------- Gross profit 19,797 ------- Operating expenses 13,298 Gross operating income from hotel properties 6,499 Other expenses 6,032 Income before income taxes 467 Income taxes 105 ------- Net income before the following 362 Depreciation & amortization 3,428 Amortization of deferred financing fees 237 Imputed interest expense 366 Less instalment receipt interest income (744) ------- Net income $ 3,649 ======= Distributable cash per unit (cents) 13 Net income per unit (cents) 1 (c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch