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

TORONTO, ONTARIO--(Marketwired - Aug. 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 month and six month periods ended June 30, 2013. (the "Consolidated Financial Statements").

For the three month period ended June 30, 2013, the Company reported earnings before income taxes of $339,937 on operating revenues of $1,684,854 compared to earnings before income taxes of $1,228,849 on operating revenues of $949,591 for the corresponding period in 2012. Revenues increased during the three month period ended June 30, 2013 as a result of the Quebec Property coming on line along with adjusted recovery of Common Area Maintenance costs from tenants. Rental expenses for the three month period ended June 30, 2013 increased to $673,749 compared to $285,200 for the corresponding period in 2012. The increase is a result of the Quebec Property coming on line.

Net income decreased to $524,943 during the six month period ended June 30, 2013 from $1,601,749 during the corresponding period in 2012. This decrease is attributable to a fair value gain of $888,800 in 2012 from the sale of the Company's interest in the Richmond Property and marketable securities of $211,362 compared to a gain of $0 in 2013 (see Note 5 of the Consolidated Statements).

Financing costs increased during the three month period ended June 30, 2013 to $397,596 from $271,563 for the corresponding period ended June 30, 2012. Administrative costs increased to $274,223 during the three month period ended June 30, 2013 from $86,030 for the corresponding period ended June 30, 2012. This increase in Administrative costs is a result of the Quebec Property coming on line.

As of June 30, 2013, total assets were $42,600,813 compared to $35,880,153 as of December 31, 2012.

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
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
June 30, 2011		$	924,632		$	152,283			0.004

Note 1:

Basic earnings per share is computed using the weighted average number of common shares outstanding during the year.

FFO for the six and three month periods ended June 30, 2013 are as follows:

			6 Months Ended June 30, 2013				6 Months Ended June 30, 2012				3 Months Ended June 30, 2013				3 Months Ended June 30, 2012
Earnings (Loss) before income tax			$	511,192			$	1,765,565			$	339,937			$	1,228,849
Adjust for:
	Interest income		$	(18,498	)		$	(4,892	)		$	(7,657	)		$	(4,892	)
	Dividend income		$	(7,177	)		$	(26,291	)		$	(3,576	)		$	(12,130	)
	Gain on sale of securities		$	(37,968	)		$	(64,088	)		$	(37,968	)		$	(51,826	)
	Unrealized gain on securities		$	82,061			$	(211,362	)		$	48,550			$	35,597
	Fair value gain			-			$	(888,800	)			-			$	(888,800	)
	Funds from Operations (FFO)		$	529,610			$	570,132			$	339,286			$	306,798

FFO decreased during the six month period ended June 30, 2013 to $529,610 from $570,132 for the corresponding six month period ended June 30, 2012. During the three month period ended June 30, 2013, FFO increased to $339,286 from $306,798 for the corresponding period ended June 30, 2012.

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").

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.

For comprehensive disclosure of the Company's performance for the three and six month periods ended June 30, 2012 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 December 31, 2012 and the notes thereto; and (ii) management's discussion and analysis of financial condition at, and results of operations for the period ended December 31, 2012, 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 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.