Urbanfund Corp.
TSX VENTURE : UFC

November 30, 2009 11:32 ET

Urbanfund Corp. Reports Financial Results For The Three Month Period Ended June 30, 2009

TORONTO, ONTARIO--(Marketwire - Nov. 30, 2009) – Mitchell Cohen, President and Chief Executive Officer of Urbanfund Corp. (TSX VENTURE:UFC) (the "Company"), confirmed today that the Company has filed interim financial results for the three and nine-month periods ended September 30, 2009.

For the three month period ended September 30, 2009, the Company reported Earnings Before Income Taxes of $79,680 on revenues of $992,444 compared with a Loss Before Income Taxes of $6,851 on revenues of $781,872 for the corresponding period in 2008. The increase in revenue for the three month period ended September 30, 2009 as compared to the corresponding period in 2008 is the result of the positive impact of retail lease escalations, new residential leases and reimbursements from certain retail tenants for expenses such as Common Area Maintenance and real estate taxes.

For the nine month period ended September 30, 2009, the Company reported Earnings Before Income Taxes of $282,478 on revenues of $2,783,155 compared with Loss Before Income Taxes of $347,551 on revenues of $2,125,931 for the corresponding period in 2008. The increase in earnings for the nine month period ended September 30, 2009 as compared to the corresponding period in 2008 is the result of increased full year revenues from the acquisition of the Belleville Property and the London Property in February 2008.

Amortization costs increased during the three month period ended September 30, 2009, to $221,874 from $176,008 for the corresponding period ended September 30, 2008. Administrative costs decreased to $67,963 during the three month period ended September 30, 2009, from $127,381 for the corresponding period ended September 30, 2008.

Rental expenses in the three month period ended September 30, 2009, increased to $357,716 compared to $290,902 for the corresponding period in 2008. This increase is the result of the costs associated with lease turnovers.

Assets decreased by $85,222 to $30,877,411 for the nine month period ended September 30, 2009, compared to an increase of $14,652,947 to $29,804,884 for the corresponding period ended September 30, 2008. The increase during the corresponding period in September 2008 is a result of the Company's acquisitions in Belleville and London and improvements to its Richmond Street Property.

The following table highlights selected financial information for the Company's past eight quarters:


Quarter ended
RevenueNet Income
(Loss)

Net Income
Per Share
(Basic)

Net Income
Per Share
(Diluted)
1
September 30, 2009$992,444$88,7660.0020.002
June 30, 2009$808,288($53,015)(0.001)-
March 31, 2009$982,423$173,6230.0050.003
December 31, 2008$988,053$1,090,6670.020.017
September 30, 2008$781,872($6,851)(0.0002)-
June 30, 2008$819,012($157,212)(0.004)-
March 31, 2008$525,046($183,488)(0.005)-
December 31, 2007$315,045($42,758)(0.004)-

Notes:

1 Fully-diluted Net Income per Share figures have not been presented as certain of the results would have been anti-dilutive for certain Quarters.

Results from operations for the three month period ended June 30, 2008 are as follows:

 3 Months Ended
September 30, 2009
3 Months ended
September 30, 2008
   
Net Earnings (Loss) Before Income Taxes
Adjusted for:
$79,680($6,851)
Interest Income$5,018$51,668
Amortization, income producing properties$176,973$131,106
Amortization value of in-place leases$28,752$28,752
Amortization of tenant relationships$5,706$5,706
Amortization of above market leases$17,505$17,505
Amortization of below market leases ($7,062)($7,062)
   
Funds From Operations (FFO)$306,572$220,824

For the three month period ended September 30, 2009, the Company reported Funds from Operations (FFO) of $306,572 on a Earnings from Operations of $79,680 as compared with a FFO of $220,824 on a Loss from Operations of ($6,851). The increase in FFO over the corresponding three month period ended September 30, 2008 is a result of increased rental income and increased interest income.

Funds from Operations ("FFO") is a non-GAAP performance measure used by the Company to improve the understanding of operating results for the investing public. FFO is not a measure recognized under Canadian generally accepted accounting principles ("GAAP") and does not have a standardized meaning prescribed by GAAP. Therefore, FFO may not be comparable to similar measures presented by other issuers. However, the Company presents its FFO in accordance with the Real Property Association of Canada (REALpac) White Paper on Funds from Operations published on November 30, 2004 and revised in February, 2007.

FFO, or any other non-GAAP performance measure, is not intended to represent operating profits for the period or from a property. Furthermore, it should not be viewed as an alternative to net income, cash flow from operating activities or similar measures of financial performance calculated in accordance with GAAP

For comprehensive disclosure of the Company's performance during the quarter ended June 30, 2009 and its financial position as at such date, reference should be made to the Company's interim consolidated financial statements for the three and six month periods ended June 30, 2009 and the notes thereto, which have been filed with applicable securities regulators on SEDAR at www.sedar.com.

Urbanfund Corp. is a Toronto-based real estate development and operating company. The Company's common shares trade under the symbol UFC on the TSX Venture Exchange. Urbanfund's focus is to identify, evaluate and invest in real estate and real estate related projects. The Company's assets are located in Toronto, Belleville and London, Ontario. The Company's strategy going forward remains committed to seek accretive real estate or real estate-related opportunities.

FORWARD LOOKING STATEMENTS

This press release contains certain forward-looking statements, which reflect Management's expectations regarding the Company's growth, results of operations, performance and business prospects and opportunities.

Statements about the Company's future plans and intentions, results, levels of activity, performance, goals or achievements or other future events constitute forward-looking statements. Wherever possible, words such as "may," "will," "should," "could," "expect," "plan," "intend," "anticipate," "believe," "estimate," "predict," or "potential" or the negative or other variations of these words, or similar words or phrases, have been used to identify these forward-looking statements. These statements reflect Management's current beliefs and are based on information currently available to management as at the date hereof.

Forward-looking statements involve significant risk, uncertainties and assumptions. Many factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking statements. These factors should be considered carefully and readers should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in this press release are based upon what management believes to be reasonable assumptions, the Company cannot assure readers that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this press release, and the Company assumes no obligation to update or revise them to reflect new events or circumstances, except as required by law. Many factors could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including: general economic and market segment conditions, interest rates, costs outside of the Company's control such as Real Estate Taxes and utilities, the ability of tenants to satisfy their contractual rent obligations and any unforeseen repair, maintenance or replacement of the Company's assets. More detailed assessment of the risks that could cause actual results to materially differ than current expectations is contained in the "Risks and Uncertainties" section of the Company's most recent Management's Discussion and Analysis.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Urbanfund Corp.
    Mitchell Cohen
    President & CEO
    (416) 703-1877x225