Urbanfund Corp.
TSX VENTURE : UFC

June 29, 2011 21:09 ET

Urbanfund Corp. Reports Financial Results for the Three Month Period Ended March 31, 2011

TORONTO, ONTARIO--(Marketwire - June 29, 2011) - Mitchell Cohen, President and Chief Executive Officer of Urbanfund Corp. (TSX VENTURE:UFC) (the "Company"), confirmed today that the Company has filed its unaudited interim consolidated financial statements for the three month period ended March 31, 2011 under International Financial Reporting Standards ("IFRS"), as summarized below.

For the three month period ended March 31, 2011, the Company reported earnings before other items and income taxes of $261,172 on revenues of $900,106 compared to earnings before other items and income taxes of $210,037 on revenues of $811,458 for the corresponding period in 2010. Revenues increased during the three month period ended March 31, 2011 as a result of continued improvement in leasing at the Company's Richmond and Van Horne properties. Rental expenses for the three month period ended March 31, 2011 increased to $307,193 compared to $273,214 for the corresponding period in 2010. The increase was a result of common element improvements to the Belleville Property and a one-time insurance charge.

Net income increased to $3,271,235 during the period ended March 31, 2011 from $637,684 during the corresponding period in 2010. This increase was attributable to a fair value gain of $3,484,794.

Funds from operations for the three month period ended March 31, 2011 are as follows:

3 Months Ended
March 31, 2011
3 Months Ended
March 31, 2010
Earnings before income taxes
Adjust for:
$ 3,764,819 $ 856,475
Interest Income $ (6,666 ) $ (12,216 )
Dividend Income $ (9,471 ) -
Gain on sale of marketable securities $ (2,716 ) -
Fair value gain $ (3,484,794 ) $ (634,222 )
Funds From Operations (FFO) $ 261,172 $ 210,037

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 and does not have a standardized meaning prescribed by IFRS. Therefore, FFO may not be comparable to similar measures presented by other issuers. However, FFO is an operating performance measure which is widely used by the real estate industry. The Company has calculated FFO in accordance with the recommendations of the Real Property Association of Canada ("REALpac").

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.

Financing costs increased slightly during the three month period ended March 31, 2011 to $262,065 from $247,744 for the corresponding period ended March 31, 2010. The increase was a result of a one-time interest expense accrual from March 2010. Administrative costs decreased to $69,676 during the three month period ended March 31, 2011 from $80,463 for the corresponding period ended March 31, 2010. This decrease in administrative costs is a result of cost savings associated with professional fees, mortgage fees and property management fees.

As at March 31, 2011, total assets were $34,576,754 compared to $31,366,395 as at December 31, 2010 as reported under IFRS. The total assets reported under Canadian generally accepted accounting principles ("GAAP") as at December 31, 2010 was $29,943,457.

The increase of $1,422,938 in total assets as at December 31, 2010 when reporting under IFRS versus Canadian GAAP was primarily due to the presentation of the Company's investment assets at fair value. The increase between December 31, 2010 under IFRS and March 31, 2011 under IFRS of $3,210,359 represents an increase in the Company's investment assets at fair value.

For comprehensive disclosure of the Company's performance for the period ended March 31, 2011 and its financial position as at such date, reference should be made to: (i) the Company's unaudited interim consolidated financial statements as at the period ended March 31, 2011 and the notes thereto; and (ii) management's discussion and analysis of financial condition at, and results of operations for the period ended March 31, 2011, which have been filed with applicable securities regulators on SEDAR at www.sedar.com.

The Company also announces that Donato Caprara resigned as the Company's Chief Financial Officer to pursue other interests. The resignation will be effective as of June 30, 2011. The Company has begun a recruitment process to identify and hire a replacement Chief Financial Officer.

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 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

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