TORONTO, ONTARIO--(Marketwire - April 29, 2011) - Mitchell Cohen, President and Chief Executive Officer of Urbanfund Corp. (TSX VENTURE:UFC) (the "Company"), confirmed today that the Company has filed financial results for the year ended December 31, 2010.
For the year ended December 31, 2010, the Company reported net earnings of $74,299 on revenues of $3,391,054 compared with a net loss of $294,833 on revenues of $3,415,835 for the corresponding period in 2009. The slight decrease in revenue is attributed to a decrease in realty taxes for the Belleville Property which resulted in less Common Area and Maintenance being collected from the tenants. The revenue decrease was offset by the corresponding reduction in rental expenses referred to below.
Amortization costs decreased slightly during the year ended December 31, 2010 to $616,580 from $618,052 for the corresponding period ended December 31, 2009. Administrative costs decreased to $315,343 during the year ended December 31, 2010 from $440,763 for the corresponding period ended December 31, 2009. This decrease in Administrative costs is a result of cost savings associated with professional fees, mortgage fees, Capital Tax and property management fees.
Assets decreased by $236,303 to $29,943,457 for the period ended December 31, 2010 compared to a decrease of $728,873 to $30,179,760 for the corresponding period ended December 31, 2009. The decrease in assets for the period ended December 31, 2010 is related to the depreciation of income-related properties and a reduction in future income tax, other assets and intangible assets.
Rental expenses for the year ended December 31, 2010 decreased to $1,272,310 compared to $1,570,131 for the corresponding period in 2009. The decrease is a result of lower realty taxes and a continuing effort to decrease costs in all phases of managing the Company's properties.
The following table highlights selected financial information for the Company's past three years:
| Year ended December 31, 2010 | Year ended December 31, 2009 | Year ended December 31, 2008 | |||||
| Revenue | $ | 3,391,054 | $ | 3,415,835 | $ | 3,236,404 | |
| Net Income (Loss) | $ | 74,299 | ($294,833 | ) | $ | 743,116 | |
| Net Income (Loss) per Share | |||||||
| - Basic(1) | 0.003 | (0.007 | ) | 0.020 | |||
| - Diluted | 0.003 | (0.007 | ) | 0.017 | |||
| Total Assets | $ | 29,943,457 | $ | 30,179,760 | $ | 30,962,633 | |
| Long Term Debt | $ | 18,680,701 | $ | 19,041,091 | $ | 19,380,920 | |
| Cash Dividends Declared per Share | Nil | Nil | Nil | ||||
| Notes: |
| (1) Basic earnings per share is computed using the weighted average number of common shares outstanding during the year. Diluted earnings per share is computed using the weighted average number of common and potential common shares outstanding during the year. Potential common shares consist of the incremental common shares issuable upon the exercise of stock options using the treasury stock method. |
Results from Funds from Operations (FFO) for the period ended December 31, 2010 are as follows:
| 12 Months Ended December 31, 2010 | 12 Months ended December 31, 2009 | |||||
| Net Earnings (Loss) Before Income Taxes Adjust for: | $ | 199,856 | ($260,694 | ) | ||
| Interest Income | ($42,521 | ) | ($110,820 | ) | ||
| Amortization, income producing properties | $ | 616,580 | $ | 618,052 | ||
| Amortization value of in-place leases | $ | 64,661 | $ | 64,661 | ||
| Amortization of tenant relationships | $ | 22,833 | $ | 22,833 | ||
| Amortization of above market leases | $ | 67,418 | $ | 65,101 | ||
| Amortization of below market leases | ($78,912 | ) | ($78,912 | ) | ||
| Funds From Operations (FFO) | $ | 849,915 | $ | 320,221 | ||
For the year ended December 31, 2010, the Company reported an increase in Funds from Operations to $849,915 compared with $320,221 for the period ended December 31, 2009. This increase was caused primarily by Net Earnings Before Income Taxes of $199,856 for the current period as compared with a Net Loss Before Income Taxes of $260,694 for the corresponding period in 2009. The increase in net earnings was attributable to a decrease in rental expenses, administrative costs and amortization.
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 for the period ended December 31, 2010 and its financial position as at such date, reference should be made to: (i) the Company's consolidated financial statements as at the period ended December 31, 2010 and the notes thereto; and (ii) management's discussion and analysis of financial condition at, and results of operations for the period ended December 31, 2010, which have been filed with applicable securities regulators on SEDAR at www.sedar.com.
The Company also announces that it has accepted the resignation of Mr. Reuben Klein as a director of the Company. The board of directors and management would like to thank Mr. Klein for his contributions to the Company since its inception, and wish him success in his future endeavours.
ABOUT URBANFUND
Urbanfund Corp. is a Toronto-based real estate development and operating company. Urbanfund Corp. is a TSX Venture exchange listed real estate company based in Toronto. 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 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 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, cash flow from operations, 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 assumptions 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 dated as of April 29, 2011 and filed on SEDAR at www.sedar.com.
Neither TSX Venture Exchange nor its Regulation Service Provider (as such term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or the accuracy of this release.
Contact Information:
Mitchell Cohen
President & CEO
(416) 703-1877 x1025