TORONTO, ONTARIO -- (Marketwired) -- 11/28/14 -- Mitchell Cohen, President and Chief Executive Officer of Urbanfund Corp. (TSX VENTURE: UFC) (the "Company"), confirmed today that the Company has filed financial statements for the three and six month period ended September 30, 2014 (the "Consolidated Financial Statements").
For the three month period ended September 30, 2014, the Company reported earnings before income taxes of $330,672 on operating revenues of $1,203,021 compared to earnings before income taxes of $815,391 on operating revenues of $1,167,602 for the corresponding period in 2013 mainly due to a realized gain on marketable securities of $422,688 in 2013. Revenues increased during the three month period ended September 30, 2014 as a result of increases in residential and commercial rents. Rental expenses for the three month period ended September 30, 2014 increased to $553,172 compared to $402,545 for the corresponding period in 2013. The increase is a result of adjustments to comparative figures in the preceding comparative period in respect of the Company's interest in 10 residential projects consisting of 1,870 residential suites located in Quebec City and Montreal (the "Quebec Properties").
Net income during the nine month period ended September 30, 2014 decreased to $600,310 from $966,917 during the corresponding period in 2013. This decrease is attributable to the realized gain on marketable securities in 2013 of $460,656.
Financing costs decreased during the three month period ended September 30, 2014 to $239,878 from $328,335 for the corresponding period ended September 30, 2013. Administrative costs also decreased to $37,011 during the three month period ended September 30, 2014 from a $34,022 recovery for the corresponding period ended September 30, 2013. These changes are a result of the Quebec Properties comparative figures adjustment disclosed in the Consolidated Financial Statements.
The following selected financial data is derived from the unaudited Consolidated Financial Statements:
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Net Income Net Income Net Income
Quarter ended Revenue (Loss) Per Share Per Share
(Basic)(1) (Diluted)(1)
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September 30, 2014 $1,203,021 $315,922 0.007 0.006
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June 30, 2014 $1,185,504 $119,301 0.003 0.002
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March 31, 2014 $1,158,263 $165,087 0.004 0.003
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December 31, 2013 $1,330,217 $1,418,536 0.030 0.027
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September 30, 2013 $1,167,602 $621,243 0.014 0.012
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June 30, 2013 $1,684,854 $342,741 0.010 0.009
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March 31, 2013 $704,020 $182,202 0.004 0.004
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December 31, 2012 $779,940 $1,384,925 0.027 0.023
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Note 1:
Basic Net Income earnings per share are computed using the weighted average number of common shares outstanding during the year. Diluted Net Income per share is computed using the weighted average number of common and potential common shares outstanding during the year. Potential common shares consist of the incremental common shares issuable upon the conversion of preferred shares and the exercise of stock options using the treasury stock method.
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.
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.
FFO for the nine and three month periods ended September 30, 2014 are as follows:
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9 Months 9 Months 3 Months 3 Months
Ended Ended Ended Ended
September 30, September 30, September 30, September 30,
2014 2013 2014 2013
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Earnings (Loss)
before income tax $678,195 $1,147,314 $330,672 $815,391
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Adjust for:
Interest income ($24,426) ($26,542) ($7,462) ($8,044)
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Dividend income ($1,308) ($9,769) - ($2,592)
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Gain on sale of
securities - ($460,656) - ($422,688)
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Unrealized (gain)
loss on securities ($84,201) $398,365 ($27,679) $352,547
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Fair value (gain) $324,823 ($263,870) $77,429 ($263,870)
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Funds from
Operations (FFO) $893,083 $784,842 $372,960 $470,744
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FFO increased during the nine month period ended September 30, 2014 to $893,083 from $784,842 for the corresponding nine month period ended September 30, 2013. During the three month period ended September 30, 2014, FFO decreased to $372,960 from $470,744 for the corresponding period ended September 30, 2013 as a result of the adjustment to the comparative figures for the Quebec Properties, as discussed above.
As of September 30, 2014, total assets were $45,149,744 compared to $45,091,043 as of December 31, 2013.
For comprehensive disclosure of the Company's performance for the period ended September 30, 2014 and its financial position as at such date, reference should be made to: (i) the Consolidated Financial Statements as at the period ended September 30, 2014 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, 2014, which have been filed with applicable securities regulators on SEDAR at www.sedar.com.
ABOUT URBANFUND CORP.
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 dated September 30, 2014.
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.
Contacts:
Urbanfund Corp.
Mitchell Cohen
President & CEO
(416) 703-1877
