Urbanfund Corp.
TSX VENTURE : UFC

August 30, 2010 16:01 ET

Urbanfund Corp. Reports Financial Results for the Three Month Period Ended June 30, 2010

TORONTO, ONTARIO--(Marketwire - Aug. 30, 2010) - 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 month period ended June 30, 2010.

For the three month period ended June 30, 2010, the Company reported net loss of $17,474 on revenues of $846,179 compared with net loss of $53,015 on revenue of $808,288 for the corresponding period in 2009. Revenue was up slightly at the Company's residential properties as improved leasing and tenant retention programs have been put into place.

For the six month period ended June 30, 2010, the Company reported net earnings of $11,915 on revenues of $1,657,637 compared with net earnings of $120,608 on revenue of $1,790,711 for the corresponding period in 2009. Revenue was down during slightly compared to the six month period ended June 30, 2009 due to a one-time payment made by a commercial tenant for real estate taxes and common area costs. Over the six month period, rental expenses continue to decrease due to new management policies that have been put into place.

Amortization costs increased during the three month period ended June 30, 2010, to $169,336 from $137,169 for the corresponding period ended June 30, 2009. Administrative costs decreased to $87,871 during the three month period ended June 30, 2010, from $123,272 for the corresponding period ended June 30, 2009. For the six month period ended June 30, 2010, amortization costs increased to $339,493 from $300,534 for the corresponding period ended 2009. Administrative costs also decreased during the six month period ended June 30, 2010 to $168,334 from $191,403 for the corresponding period ended 2009.

Rental expenses in the three month period ended June 30, 2010, decreased to $345,326 compared to $381,391 for the corresponding period in 2009. This decrease was a result of cost savings activities in place at all properties. For the six month period ended June 30, 2010, rental expenses were $618,540 as compared with $693,108 for the corresponding six month period ended June 30, 2009. Again, this is a result of cost savings activities that have been put into place in all properties.

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

  Quarter ended Revenue   Net Income (Loss)   Net Income Per Share (Basic)   Net Income Per Share (Diluted)1  
  June 30, 2010 $846,179   ($17,474 ) (0.001 ) -  
  March 31, 2010 $811,458   $29,389   .0012   0.001  
  December 31, 2009 $632,680   ($504,207 ) (0.01 ) 0.0017  
  September 30, 2009 $992,444   $88,766   0.0021   -  
  June 30, 2009 $808,288   ($53,015 ) (0.001 ) -  
  March 31, 2009 $982,423   $173,623   0.005   0.003  
  December 31, 2008 $988,053   $1,090,667   0.02   0.017  
  September 30, 2008 $781,872   ($6,851 ) (0.0002 ) -  

Notes:

1 Fully-diluted Net Income per Share figures have not been presented as certain of the results would have been anti-dilutive for certain Quarters.

Results from operations for the three month period ended June 30, 2010 are as follows:

    3 Months Ended
June 30, 2010
  3 Months ended
June 30, 2009
 
           
  Net Earnings (Loss) Before Income Taxes
Adjust for:
($5,933 ) ($27,866 )
  Interest Income ($16,973 ) ($77,101 )
  Amortization, income producing properties $150,336   $80,484  
  Amortization value of in-place leases $9,091   $37,893  
  Amortization of tenant relationships $5,565   $8,874  
  Amortization of above market leases $16,174   $27,184  
  Amortization of below market leases ($11,830 )  ($17,266 )
           
  Funds From Operations (FFO) $146,430   $32,202  

For the three month period ended June 30, 2010, the Company reported Funds from Operations (FFO) of $146,430 on Net Loss before Income Taxes of $5,933 as compared with FFO of $32,202 on Net Loss before Income Taxes of $27,866 for the three month period ended June 30, 2009.

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 three and six month periods ended June 30, 2010 and its financial position as at such date, reference should be made to: (i) the Company's consolidated financial statements as at for the six month period ended March 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, June 30, 2010, 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.

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) 703-1877x1025