Urbanfund Corp.
TSX VENTURE : UFC

November 29, 2011 16:07 ET

Urbanfund Corp. Reports Financial Results for the Three Month and Nine Month Periods Ended September 30, 2011

TORONTO, ONTARIO--(Marketwire - Nov. 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 three and nine month periods ended September 30, 2011 under International Financial Reporting Standards ("IFRS"), as summarized below.

For the three month period ended September 30, 2011, the Company reported earnings before other items and income taxes of $190,994 on revenues of $869,769 compared to Earnings before other items and income taxes of $313,456 on revenues of $924,990 for the corresponding period in 2010. Revenues were down during the three month period ended September 30, 2011 due to a one-time payment made by a commercial tenant for real estate taxes and common area costs in the comparative period in 2010.

Rental expenses for the three month period ended September 30, 2011 increased to $333,506 compared to $299,402 for the corresponding period in 2010. The increase is a result of a boiler replacement at the Company's Richmond Property, pylon sign damage at its Belleville property and general increased repairs and maintenance expenditures.

Net income increased to $3,620,987 during the nine month period ended September 30, 2011 from $1,061,780 during the corresponding period in 2010. This increase is attributable to a fair value gain of $3,484,794 less related Deferred Income Taxes of $538,852.

Funds From Operations for the three and six month periods ended June 30, 2011 are as follows:

9 Months
Ended
September
30, 2011
9 Months
Ended
September
30, 2010
3 Months
Ended
September
30, 2011
3 Months
Ended
September
30, 2010
Earnings (Loss) before income tax $4,159,839 $1,368,067 $180,262 $348,190
Adjust for:
Interest income ($23,433 ) ($35,855 ) ($9,018 ) ($6,666 )
Dividend income ($36,471 ) - ($20,250 ) -
Gain on sale of securities ($2,716 ) - - -
Unrealized gain on securities 4,625 (28,068 ) $40,000 (28,068 )
Fair value gain ($3,484,794 ) ($634,222 ) - -
Funds from Operations (FFO) $617,050 $669,922 $190,994 $313,456

FFO decreased during the nine month period ended September 30, 2011 to $617,050 from $669,922 for the corresponding nine month period ended September 30, 2010. During the three month period ended September 30, 2011, FFO decreased to $190,994 from $313,456 for the corresponding period ended September 30, 2010.

Funds from Operations ("FFO") is a non-IFRS measure and should not be construed as an alternative to net income determined in accordance with IFRS. However, FFO is an operating performance measure which is widely used by the real estate industry and the Company has calculated FFO in accordance with the recommendations of the Real Property Association of Canada ("REALpac").

Financing costs were stable during the three month period ended September 30, 2011 at $264,922 from $265,260 for the corresponding period ended September 30, 2010. Administrative costs increased to $80,347 during the three month period ended September 30, 2011 from $46,872 for the corresponding period ended September 30, 2010. This increase in Administrative costs is a result of the on-going implementation of IFRS and a "catch-up" payment in property management fees.

SUMMARY OF QUARTERLY RESULTS

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

Year 2011 2011 2011 2010 2010 2010 2010 2009
Quarter
Ended 30-Sep 30-Jun 31-Mar 31-Dec 30-Sep 30-Jun 31-Mar 31-Dec
$ $ $ $ $ $ $ $
Revenue 869,769 924,632 900,106 808,427 924,990 846,179 982,423 632,680
Net Income 197,470 152,283 3,271,235 (125,640 ) 188,024 (17,474 ) 173,625 (504,207 )
(Loss)
Net Income
Per Share 0.004 0.003 0.075 (0.003 ) 0.004 (0.001 ) 0.005 (0.012 )
(Basic)
Net Income
Per Share 0.003 0.003 0.064 (0.003 ) 0.004 (0.001 ) 0.003 (0.012 )
(Diluted)

For comprehensive disclosure of the Company's performance for the period ended September 30, 2011 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 September 30, 2011 and the notes thereto; and (ii) management's discussion and analysis of financial condition at, and results of operations for the period ended September 30, 2011, 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. 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 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) 703-1877x1025