Urbanfund Corp.
TSX VENTURE : UFC

April 30, 2009 16:07 ET

Urbanfund Corp. Reports Financial Results for the Year Ended December 31, 2008

TORONTO, ONTARIO--(Marketwire - April 30, 2009) - Urbanfund Corp. ("Urbanfund" or the "Company") (TSX VENTURE:UFC), Mitchell Cohen, President and Chief Executive Office confirmed today that the Company has filed financial results for the twelve (12) months ended December 31, 2008.

For the year ended December 31, 2008, the Company reported net income of $743,116 on revenues of $3,113,983 compared with net income of $189,034 on revenues of $1,260,182 for the corresponding period in 2007. The increase in revenue was attributable to the Richmond Property being characterized as an income producing property during the 2008 fiscal year and the acquisition of the Belleville Property and the London Property in March 2008.

Amortization costs increased during the year ended December 31, 2008 to $531,958 from $197,856 for the corresponding period ended December 31, 2007. This increase is a direct result of the Richmond Property being characterized as an income producing property during the 2008 fiscal year and the acquisition of the Belleville Property and the London Property in March 2008. Administrative costs increased to $557,629 during the year ended December 31, 2008 from $209,179 for the corresponding period ended December 31, 2007. This increase is a result of the acquisitions in March 2008 as there were additional charges for professional fees, mortgage fees, Capital Tax and property management fees.

Rental expenses for the year ended December 31, 2008 increased to $1,341,128 compared to $714,746 for the corresponding period in 2007. Once again the increase is a result of the Richmond Property being characterized as an income producing property during the 2008 fiscal year and the acquisition of the Belleville Property and the London Property in March 2008. Expenses for the Richmond Property and Don Mills Property also increased due to higher realty taxes.

For the year ended December 31, 2008, the increase in net earnings was principally due to a future income tax recovery of $877,222.

As of December 31, 2008, the Company had cash on hand in the amount of $183,636 and short term investments in the amount of $5,596,378.

Net income per common share was $0.02 ($0.01 on a fully diluted basis) compared with a net income per common share of $0.02 ($0.01 on a fully diluted basis) for the corresponding period in 2007.

Assets increased by $15,810,696 to $30,962,633 for the period ended December 31, 2008. The increase in assets was primarily due to the acquisition of the Belleville Property and the London Properties in March 2008 and re-financing activities.



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Year ended Year ended Year ended
December 31, December 31, December 31,
2008 2006 2006
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Revenue $3,236,404 $1,821,072 $1,356,983
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Net Income (Loss) 743,116 189,034 (601,977)
Net Income (Loss) per
Share
- Basic 0.02 0.02 (0.05)
- Diluted 0.01 0.01 (0.05)
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Total Assets $30,962,633 $15,151,937 $15,832,094
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Long Term Debt $19,382,920 $13,134,414 $13,617,239
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Results from operations for the 12 month period ended December 31, 2008
are as follows:

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12 Months Ended 12 Months ended
December 31, 2008 December 31, 2007
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Net Earnings (Loss) Before ($134,106) $189,034
Income Taxes
Adjust for:
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Interest Income ($122,421) ($46,218)
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Amortization, income producing $424,331 $197,856
properties
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Amortization value of in-place leases $84,577
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Amortization of tenant relationships $19,014
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Amortization of above market leases $58,351
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Amortization of below market leases ($54,314)
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Funds From Operations (FFO) $275,432 $340,672
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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 for the year ended December 31, 2008 and its financial position as at such date, reference should be made to: (i) the Company's consolidated financial statements for the year ended December 31, 2008 and the notes thereto and auditors' report thereon, as applicable; and (ii) management's discussion and analysis of financial conditions and results of operations for the period ended December 31, 2008, 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.

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