Urbanfund Corp.
TSX VENTURE : UFC

November 29, 2010 16:53 ET

Urbanfund Corp. Reports Financial Results for the Three and Nine Month Period Ended September 30, 2010

TORONTO, ONTARIO--(Marketwire - Nov. 29, 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 and nine month period ended September 30, 2010.

For the three month period ended September 30, 2010, the Company reported net earnings before income taxes of $179,334 on revenues of $924,990 compared with net earnings before income taxes of $79,680 on revenue of $992,444 for the corresponding period in 2009. Revenue was down during the three month period ended September 30, 2010 due to a one-time payment made by a commercial tenant for real estate taxes and common area costs in the comparative period in 2009.

For the nine month period ended September 30, 2010, the Company reported net earnings before income taxes of $225,497 on revenues of $2,582,627 compared with net earnings before income taxes of $282,478 on revenue of $2,783,155 for the corresponding period in 2009. Again, revenue was down slightly during this comparative period due to a one-time payment made by a commercial tenant for real estate taxes and common area costs in 2009.

Amortization costs decreased during the three month period ended September 30, 2010, to $168,856 from $221,874 for the corresponding period ended September 30, 2009. For the nine month period ended September 30, 2010, amortization costs decreased to $508,349 from $522,398 for the corresponding period ended 2009. 

Administrative costs decreased to $46,872 from $67,963 during the three month period ended September 30, 2010 as a result of cost saving initiatives and improvements. During the nine month period ended September 30, 2010, administrative costs decreased to $215,206 from $259,367 for the corresponding period ended September 30, 2009.

The Company reported that during the three month period ended September 30, 2010, rental expenses decreased to $299,402 compared with $357,716 for the same period ended September 30, 2009. This is attributed to cost control measures at all of the Company's properties and a real estate tax reduction at the Company's commercial properties. Expenses are also down to $917,942 for the nine month period ended September 30, 2010 as compared to $1,050,824 for the same period in 2009 again as a result of cost control measures at all of the Company's properties and a real estate tax reduction at the Company's commercial 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
September 30, 2010 $ 924,990 $ 179,334   0.004   0.003
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
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.
 
Funds from Operations ("FFO") for the three month period ended September 30, 2010 are as follows:
 
  3 Months Ended September 30, 2010   3 Months ended September 30, 2009  
             
Net Earnings (Loss) Before Income Taxes Adjust for: $ 179,334   $ 79,680  
Interest Income $ (6,666 ) $ (5,018 )
Unrealized gain on investment $ (28,068 )   -  
Amortization, income producing properties $ 149,857   $ 176,973  
Amortization value of in-place leases $ 7,976   $ 28,752  
Amortization of tenant relationships $ 6,604   $ 5,706  
Amortization of above market leases $ 16,174   $ 17,505  
Amortization of below market leases $ (11,752 ) $ (7,062 )
             
Funds From Operations (FFO) $ 313,456   $ 296,536  

For the three month period ended September 30, 2010, the Company reported Funds from Operations (FFO) of $313,456 on Net Earnings before Income Taxes of $225,497 as compared with FFO of $296,536 on Net Earnings before Income Taxes of $79,680 for the three month period ended September 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 nine month period ended September 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 three and nine month period ended September 30, 2010 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, 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. 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) 703-1877x1025