Urbanfund Corp.
TSX VENTURE : UFC

November 28, 2008 10:42 ET

Urbanfund Corp. Reports Financial Results for the Three Month Period Ended September 30, 2008

TORONTO, ONTARIO--(Marketwire - Nov. 28, 2008) - 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, 2008.

For the three month period ended September 30, 2008, the Company reported a net loss of $6,852 on revenues of $781,872 compared with net loss of $142,839 on revenues of $320,654 for the corresponding three month period ended September 30, 2007. Rental income and expenses increased as a result of the previously announced acquisition of the Belleville Property and the London Property and the fact that the Richmond Property is now being reflected as an income producing property. The net loss also reflects interest income of $51,668.

Amortization costs increased to $176,008 for the three month period ended September 30, 2008 from $50,000 for the corresponding three month period ended September 30, 2007. Administrative costs increased to $127,381 during the three month period ended September 30, 2008 as compared to $74,342 for the corresponding three month period ended September 30, 2007. Included in administrative costs is the property management fee of approximately $23,000 and $25,000 for professional fees.

The Company's net assets decreased by $193,971 to $29,804,884 for the three month period ended September 30, 2008 as compared to a decrease of $80,057 to $15,854,696 for the corresponding three month period ended September 30, 2007. Net assets decreased due to the increase in amortization as a result of the Company's purchase of the Belleville Property and the London Property in March 2008 and that effective January 1, 2008, the Richmond Property was no longer characterized as a property under re-development but, rather, an income producing property. A decrease in the Company's cash-on-hand also contributed to the decrease in Net assets.

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



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Net Income
Quarter ended Revenue Net Income Per Share
(Loss) (common)
($/share)
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September 30, 2008 $ 781,872 ($6,851) (0.0002)
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June 30, 2008 $ 819,012 ($157,212) (0.004)
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March 31, 2008 $ 525,046 ($183,488) (0.005)
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December 31, 2007 $ 315,045 ($42,758) (0.004)
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September 30, 2007 $ 320,654 ($126,429) (0.012)
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June 30, 2007 $ 307,574 $447,085 0.044
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March 31, 2007 $ 316,909 ($88,864) (0.009)
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December 31, 2006 $ 331,851 ($343,548) (0.024)
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Results from operations for the three month period ended September 30, 2008 are as follows:



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3 Months Ended 3 Months ended
September 30, 2008 September 30, 2007
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Net Earning (Loss) ($6,851) ($126,429)
Adjusted for:
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Interest Income ($50,900)
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Amortization, income producing
properties $ 131,107 $50,000
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Amortization value of in-place leases $ 28,752
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Amortization of tenant relationships $5,706
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Amortization of above market leases $ 17,505
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Amortization of below market leases ($7,062)
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Funds From Operations (FFO) $ 118,257 ($76,429)
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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 GAAP and does not have a standardized meaning proscribed 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 September 30, 2008 and its financial position as at such date, reference should be made to the Company's interim consolidated financial statements for the three and nine month period ended September 30, 2008 and the notes thereto, which have been filed with applicable securities regulators on SEDAR at www.sedar.com.

Urbanfund Corp. is a TSX Venture exchange listed real estate company based in Toronto. The Company's common shares trade under the symbol UFC. Urbanfund Corp. is a Toronto-based real estate development and operating company. The Company's focus is to identify, evaluate and invest in real estate or real estate related projects. The Company's assets are located in Belleville, London and Toronto, Ontario.

The Company's strategy going forward remains committed to seek accretive real estate or real estate-related opportunities.

FORWARD LOOKING STATEMENTS

This news release contains forward-looking statements within the meaning of applicable securities laws. These statements include, but are not limited to statements concerning Urbanfund's objectives, its strategies to achieve those objectives, as well as general statements with respect to management's beliefs, plans, estimates and intentions, and similar statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "objective", "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "should", "plans" or "continue", or similar expressions suggesting future outcomes or events. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management.

These statements are not guarantees of future performance and are based on management's estimates and assumptions that are subject to risks and uncertainties, including those described under "Risks and Uncertainties" in Urbanfund's Management's Discussion and Analysis ("MD&A") filed on www.sedar.com on the date hereof, which could cause actual results to differ materially from the forward-looking statements contained herein. Those risks and uncertainties include risks associated with real property ownership, acquisition financing and interest rates. Material factors or assumptions that were applied in drawing a conclusion or making an estimate set out in the forward-looking information include: interest costs to Urbanfund remaining relatively stable and equity and debt capital markets will continue to provide access to capital to fund at acceptable costs Urbanfund's future growth program and refinance Urbanfund's debt obligations as they mature. Although the forward looking information contained herein is based upon what management believes are reasonable assumptions, there can be no assurance that actual results will be consistent with these forward-looking statements. All forward-looking statements in this MD&A are qualified by these cautionary statements. Except as required by applicable law, Urbanfund undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

The TSX Venture Exchange does not accept responsibility for the adequacy or the accuracy of this release.

Contact Information

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