By The Canadian Press

VICTORIA, B.C. - PRT Forest Regeneration Income Fund (TSX:PRT.UN) has reported a net loss of $1.4 million in the third quarter, down significantly from a loss of $20 million a year earlier.

The loss amounted to 14 cents per unit, compared with $2.11 per unit a year earlier, the company said in a news release Wednesday.

It did not disclose quarterly revenues.

Revenues in the nine-month period ended Sept. 30 decreased by $6.3 million or 21.7 per cent due to lower contract volumes and prices.

The company said the third quarter typically has the lowest seasonal revenue in its business cycle.

"We are encouraged by recent indications that the housing market bottomed in 2009 and has been stabilizing, and expect that seedling markets will gradually improve as house construction recovers and returns to more typical levels," stated PRT president and CEO Rob Miller.

"While seedling demand may lag the housing markets slightly, due to the timing of reforestation relative to logging, we are also cognizant of the large and growing reforestation backlog in British Columbia caused by the mountain pine beetle and forest fire damage."

PRT is the largest producer of container grown forest seedlings in North America, with 14 nursery locations producing approximately 124 million seedlings in 2009.

Units in the fund gained 16 cents or 10.7 per cent to $1.66 in Wednesday trading on the Toronto Stock Exchange.