Mr. Gino Romagnoli reports

LANESBOROUGH REIT REPORTS 2023 THIRD QUARTER RESULTS

Lanesborough Real Estate Investment Trust today released its operating results for the quarter ended Sept. 30, 2023. The comments herein 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 Sept. 30, 2023, which may be obtained from the SEDAR+ website.

Overall results

Lanesborough completed Q3 2023 with a loss and comprehensive loss of $1.9-million, compared with an income and comprehensive income of $9.0-million during Q3 2022, representing a decrease in income and comprehensive income of $10.8-million. The decrease in income and comprehensive income mainly reflects a decrease from fair value adjustments of $10.8-million and a $1.2-million decrease in rental revenues, partially offset by a $1.0-million decrease in property operating costs.

The decrease from fair value adjustments reflects a $400,000 gain from fair value adjustments during Q3 2023, compared with a $11.2-million gain from fair value adjustments during Q3 2022. The gain from fair value adjustments during Q3 2023 reflects an increase in the carrying value of the Fort McMurray properties segment, which is mainly due to an increase in the normalized revenue considered to be achievable in the Fort McMurray rental market as a result of the favourable occupancy and rental rate trends; partially offset by an unfavourable variance from fair value adjustments of the other investment properties segment, which is mainly due to an increase in normalized property operating costs. The gain from fair value adjustments recognized during Q3 2022 mainly reflected an increase in the carrying value of the Fort McMurray properties segment, primarily as a result of changes made to key valuation assumptions to incorporate information obtained from external appraisals received during the quarter and in recognition of the favourable occupancy trend.

The decreases in both rental revenues and property operating costs 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, which is listed on the TSX Venture Exchange under the symbol LRT.UN (trust units).