Urbanfund Corp.
TSX VENTURE : UFC

April 28, 2014 16:16 ET

Urbanfund Corp. Reports Financial Results for the Year Ended December 31, 2013

TORONTO, ONTARIO--(Marketwired - April 28, 2014) - 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, 2013 (the "Consolidated Financial Statements").

For the year ended December 31, 2013, the Company reported earnings before income taxes of $2,991,739 on revenue of $4,405,761 compared to earnings before income taxes of $3,287,926 on revenue of $3,414,495 for the corresponding year in 2012. The decrease in earnings is primarily related to fair value adjustments.

Rental income increased to $4,405,761 for the period ended December 31, 2013 from $3,414,495 for the corresponding period ended 2012. The increase in rental income is principally attributable to an increase in rental income resulting from the Company's acquisition of a 10% interest in 10 residential projects consisting of 1,870 residential suites located in Quebec City and Montreal (the "Quebec Properties") during 2013 together with increased rental income in the other properties owned by the Company. Although financing Costs increased, administrative costs for the year ended December 31, 2013 were $529,385 as compared to $623,519 for the corresponding period ended 2012. This decrease is directly related to payment of Company's share of on-site maintenance salaries at the Richmond Street joint venture, which accumulated over a 2 year period and were paid on Closing of the sale of the Richmond Street joint venture in 2012.

Rental expenses for the year ended December 31, 2013 increased to $1,729,671 compared with $1,218,799 for the corresponding period in 2012. The increase is attributed to the Quebec Properties coming online.

Funds from operations ("FFO") for the years ended December 31, 2013 and 2012 are as follows:

Year Ended
December 31, 2013
Year Ended
December 31, 2012
Net Earnings Before Income Taxes $ 2,991,739 $ 3,287,926
Adjust for:
Interest Income $ (34,587 ) $ (28,038 )
Dividend Income $ (9,769 ) $ (34,611 )
Realized Gain on Marketable of Securities $ (110,533 ) $ (122,584 )
Unrealized Gain on Marketable Securities $ 72,424 $ (240,925 )
Loss on Sale of Property - $ 426,524
Fair Value Adjustment on Investment Property $ (1,746,366 ) $ (2,687,485 )
Funds From Operations (FFO) $ 1,162,908 $ 600,807

FFO, or any other non-IFRS 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 IFRS.

FFO is a widely accepted supplemental measure of financial performance for real estate entities; however, it does not represent amounts available for capital programs, debt service obligations, commitments or uncertainties. FFO should not be interpreted as an indicator of cash generated from operating activities and is not indicative of cash available to fund operating expenditures, or for the payment of cash distributions. FFO is simply one measure of operating performance.

As at December 31, 2013, the Company had cash on hand in the amount of $1,838,261 ($3,763,406 during the corresponding period ended 2012), marketable securities of $314,908 ($1,053,111 during the corresponding period ended December 31, 2012) and short term investments in the amount of $2,659,648 ($3,617,951 during the corresponding period ended 2012).

As at December 31, 2013, the Company had mortgages payable in the amount of $20,377,807 which was comprised of: (i) $8,031,017 representing a mortgage payable for the Company's Don Mills property; (ii) $5,727,693 representing a mortgage payable for the Company's Belleville property and London property; and (iii) $6,619,097 representing mortgages payable on the Quebec Properties. With continuing increases in the Company's rental income from its properties, cash flow is expected to remain consistent and the Company is projected to continue to satisfy its debt obligations.

As of December 31, 2013, total assets were $45,091,043 as compared to $35,880,153 as of December 31, 2012. The increase of $9,210,890 in total assets as at December 31, 2013 is mainly due to the acquisition of the Quebec Properties. (See Note 10 of the Consolidated Financial Statements)

The following selected financial data is derived from the Company's unaudited quarterly financial statements:

Quarter ended Revenue Net Income
(Loss)
Net Income
Per Share
(Basic)
1
December 31, 2013 $ 1,330,217 $ 1,418,536 0.030
September 31, 2013 $ 686,670 $ 441,974 0.010
June 30, 2013 $ 1,684,854 $ 342,741 0.010
March 31, 2013 $ 704,020 $ 182,202 0.004
December 31, 2012 $ 779,940 $ 1,384,925 0.027
September, 30, 2012 $ 864,745 $ (104,131 ) (0.002 )
June 30, 2012 $ 949,591 $ 1,124,373 0.030
March 31, 2012 $ 820,219 $ 477,376 0.011

The following table highlights selected financial information for the Company's past two years:

Year ended
December 31, 2013
Year ended
December 31, 2012
Revenue $ 4,405,761 $ 3,414,495
Net Income (Loss) $ 2,385,453 $ 2,882,543
Net Income (Loss) per Share
- Basic1 $ 0.05 $ 0.07
- Diluted $ 0.05 $ 0.06
Total Assets $ 45,091,043 $ 35,880,153
Mortgages Payable $ 20,377,807 $ 14,133,905
Cash Dividends Declared per Share 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 are 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 and preferred shares using the treasury stock method.

For the quarter ended December 31, 2013, the Company reported net income of $1,418,536 ($0.033 per common share) compared with a net income of $1,384,925 ($0.027 per common share) for the corresponding quarter in 2012. The Company's revenues increased in the quarter ended December 31, 2013 to $1,330,217 compared with revenues of $779,940 for the corresponding period in 2012. Revenues increased due to the Quebec Properties coming online. The decrease in net income for the three month period ended December 31, 2013 compared with the corresponding period ended December 31, 2012 is principally due to the fair value adjustment to the investment properties.

For comprehensive disclosure of the Company's performance for the period ended December 31, 2013 and its financial position as at such date, reference should be made to: (i) the Consolidated Financial Statements as at the period ended December 31, 2013 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, 2013, which have been filed with applicable securities regulators on SEDAR at www.sedar.com.

ABOUT URBANFUND CORP.

Urbanfund Corp. (TSX VENTURE:UFC) is a Toronto-based real estate development and operating company. 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, Quebec City and Montreal, Quebec. 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 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 April 28, 2013.

Neither the 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 the accuracy of this release.

Contact Information

  • Urbanfund Corp.
    Mitchell Cohen
    President & CEO
    (416) 703-1877x1025