Mr. Gino Romagnoli reports

LANESBOROUGH REIT REPORTS 2023 SECOND QUARTER RESULTS

Lanesborough Real Estate Investment Trust has released its operating results for the quarter ended June 30, 2023. The following comments in regard to the financial position and operating results of Lanesborough should be read in conjunction with the interim management's discussion and analysis -- quarterly highlights and the interim financial statements for the quarter ended June 30, 2023, which may be obtained from SEDAR+.

Overall results

Lanesborough completed Q2 2023 with a loss and comprehensive loss of $1.1-million, compared with a loss and comprehensive loss of $2.8-million during Q2 2022, representing a decrease in loss and comprehensive loss of $1.7-million. The decrease in loss and comprehensive loss mainly reflects a favourable variance from fair value adjustments of $1.8-million and a $1.0-million decrease in property operating costs, partially offset by a $1.1-million decrease in rental revenues from investment properties.

The favourable variance from fair value adjustments reflects a $1.2-million gain from fair value adjustments during Q2 2023, compared with a $600,000 loss from fair value adjustments during Q2 2022. The gain in Q2 2023 was primarily due to an increase in the carrying value of the properties located in Fort McMurray, Alta., reflecting an increase in the normalized revenue considered to be achievable as a result of the favourable occupancy and rental rate trends. Losses from fair value adjustments recognized during Q2 2022 mainly reflected an increase in normalized operating cost primarily due to the impact of higher-than-expected property insurance costs for certain properties within the Fort McMurray properties segment.

The decreases in both property operating costs and rental revenues are primarily attributable to the sales of Laird's Landing, Lakewood Apartments and Westhaven Manor during Q1 2023.

About Lanesborough Real Estate Investment Trust

Lanesborough is a real estate investment trust that is listed on the TSX Venture Exchange under the symbol LRT.UN.

We seek Safe Harbor.