Urbanfund Corp.
TSX VENTURE : UFC

November 29, 2013 17:00 ET

Urbanfund Corp. Reports Financial Results for the Three and Nine Month Periods Ended September 30, 2013

TORONTO, ONTARIO--(Marketwired - Nov. 29, 2013) - 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, 2013 (the "Consolidated Financial Statements").

For the three month period ended September 30, 2013, the Company reported earnings before income taxes of $636,122 on Revenues of $686,670 compared to a loss on earnings before income taxes of $319,100 on operating revenues of $864,745 for the corresponding period in 2012. Rental Revenue, Rental Expenses and Administrative Costs for the three months ended September 30, 2013, include adjustments of various estimates in accounts related to a 10% interest in a portfolio of 10 residential projects consisting of 1,870 residential suites located in Quebec City and Montreal (the "Quebec Properties") for the three months ended June 30, 2013.

For the three month period ended September 30, 2013, the Company reported a Realized gain on the sale of marketable securities of $422,688 compared to a gain of $58,496 for the corresponding period in 2012. Management believes that the extent of the gain in the three month period ended September 30, 2013 is a non-recurring event.

Net income decreased to $966,917 during the nine month period ended September 30, 2013 from $1,497,618 during the corresponding period in 2012. This decrease is attributable to a fair value gain of $476,148 in 2012 from the sale of the Company's 10% undivided interest in a 556 unit residential complex at 798 - 800 Richmond Street West, Toronto, Ontario (the "Richmond Property") in the 3rd quarter of 2012.

Financing costs decreased during the three month period ended September 30, 2013 to $197,525 from $253,740 for the corresponding period ended September 30, 2012. This decrease is due to adjustments of various estimates in accounts related to the acquisition and operations of the Quebec Properties for the three months ended June 30, 2013.

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


Quarter ended
Revenue Net Income
(Loss)

Net Income
Per Share
(Basic)
1
September 30, 2013 $686,670 $441,947 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
December 31, 2011 $948,417 $90,986 0.002
September, 30, 2011 $869,769 $197,470 0.005
Note 1:
Basic earnings per share is computed using the weighted average number of common shares outstanding during the year.

Funds from operations ("FFO") for the nine and three month periods ended September 30, 2013 are as follows:

9 Months Ended
September 30,
2013
9 Months Ended
September 30,
2012
3 Months Ended
September 30,
2013
3 Months Ended
September 30,
2012
Earnings (Loss) before income tax $1,147,314 $1,446,465 $441,974 ($319,000)
Adjust for:
Interest income ($26,542) ($16,369) ($8,044) ($11,747)
Dividend income ($9,769) ($31,128) ($2,592) ($4,837)
Realized Gain on securities ($460,656) ($122,584) ($422,688) ($58,496)
Unrealized (gain) loss on securities $409,859 ($301,213) $327,798 ($89,851)
Realized (gain) on sale of IPP - ($476,148) - $420,879
Unrealized (gain) on sale of IPP ($263,870) $10,159 ($263,870) $1,932
Funds from Operations (FFO) $796,336 $508,912 $72,578 ($61,220)

FFO increased during the nine month period ended September 30, 2013 to $796,336 from $508,912 for the corresponding nine month period ended September 30, 2012. During the three month period ended September 30, 2013, FFO increased to $72,578 from ($61,220) for the corresponding period ended September 30, 2012.

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 of September 30, 2013, total assets were $43,071,143 compared to $35,880,153 as of December 31, 2012 and primarily a result of the acquisition of the Quebec Properties. Liabilities for the corresponding periods increased from $9,285,898 to $20,904,293 and again, due primarily to the acquisition of the Quebec Properties.

For comprehensive disclosure of the Company's performance for the three and nine month periods ended September 30, 2013 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, 2013 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, 2013, which have been filed with applicable securities regulators on SEDAR at www.sedar.com.

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.

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) 703-1877