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 year ended December 31, 2013 (the "Consolidated
Financial Statements").
For the year ended December 31, 2013, the Company reported earnings before
income taxes of $2,991,739 on revenue of $4,405,761 compared to earnings before
income taxes of $3,287,926 on revenue of $3,414,495 for the corresponding year
in 2012. The decrease in earnings is primarily related to fair value
adjustments.
Rental income increased to $4,405,761 for the period ended December 31, 2013
from $3,414,495 for the corresponding period ended 2012. The increase in rental
income is principally attributable to an increase in rental income resulting
from the Company's acquisition of a 10% interest in 10 residential projects
consisting of 1,870 residential suites located in Quebec City and Montreal (the
"Quebec Properties") during 2013 together with increased rental income in the
other properties owned by the Company. Although financing Costs increased,
administrative costs for the year ended December 31, 2013 were $529,385 as
compared to $623,519 for the corresponding period ended 2012. This decrease is
directly related to payment of Company's share of on-site maintenance salaries
at the Richmond Street joint venture, which accumulated over a 2 year period and
were paid on Closing of the sale of the Richmond Street joint venture in 2012.
Rental expenses for the year ended December 31, 2013 increased to $1,729,671
compared with $1,218,799 for the corresponding period in 2012. The increase is
attributed to the Quebec Properties coming online.
Funds from operations ("FFO") for the years ended December 31, 2013 and 2012 are
as follows:
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Year Ended Year Ended
December 31, December 31,
2013 2012
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Net Earnings Before Income Taxes $ 2,991,739 $ 3,287,926
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Adjust for:
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Interest Income $ (34,587) $ (28,038)
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Dividend Income $ (9,769) $ (34,611)
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Realized Gain on Marketable of Securities $ (110,533) $ (122,584)
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Unrealized Gain on Marketable Securities $ 72,424 $ (240,925)
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Loss on Sale of Property - $ 426,524
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Fair Value Adjustment on Investment
Property $ (1,746,366) $ (2,687,485)
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Funds From Operations (FFO) $ 1,162,908 $ 600,807
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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 at December 31, 2013, the Company had cash on hand in the amount of
$1,838,261 ($3,763,406 during the corresponding period ended 2012), marketable
securities of $314,908 ($1,053,111 during the corresponding period ended
December 31, 2012) and short term investments in the amount of $2,659,648
($3,617,951 during the corresponding period ended 2012).
As at December 31, 2013, the Company had mortgages payable in the amount of
$20,377,807 which was comprised of: (i) $8,031,017 representing a mortgage
payable for the Company's Don Mills property; (ii) $5,727,693 representing a
mortgage payable for the Company's Belleville property and London property; and
(iii) $6,619,097 representing mortgages payable on the Quebec Properties. With
continuing increases in the Company's rental income from its properties, cash
flow is expected to remain consistent and the Company is projected to continue
to satisfy its debt obligations.
As of December 31, 2013, total assets were $45,091,043 as compared to
$35,880,153 as of December 31, 2012. The increase of $9,210,890 in total assets
as at December 31, 2013 is mainly due to the acquisition of the Quebec
Properties. (See Note 10 of the Consolidated Financial Statements)
The following selected financial data is derived from the Company's unaudited
quarterly financial statements:
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Net Income
Net Income Per Share
Quarter ended Revenue (Loss) (Basic)(1)
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December 31, 2013 $ 1,330,217 $ 1,418,536 0.030
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September 31, 2013 $ 686,670 $ 441,974 0.010
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June 30, 2013 $ 1,684,854 $ 342,741 0.010
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March 31, 2013 $ 704,020 $ 182,202 0.004
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December 31, 2012 $ 779,940 $ 1,384,925 0.027
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September, 30, 2012 $ 864,745 $ (104,131) (0.002)
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June 30, 2012 $ 949,591 $ 1,124,373 0.030
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March 31, 2012 $ 820,219 $ 477,376 0.011
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The following table highlights selected financial information for the Company's
past two years:
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Year ended Year ended
December 31, 2013 December 31, 2012
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Revenue $ 4,405,761 $ 3,414,495
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Net Income (Loss) $ 2,385,453 $ 2,882,543
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Net Income (Loss) per Share
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- Basic(1) $ 0.05 $ 0.07
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- Diluted $ 0.05 $ 0.06
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Total Assets $ 45,091,043 $ 35,880,153
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Mortgages Payable $ 20,377,807 $ 14,133,905
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Cash Dividends Declared per Share Nil Nil
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Notes:
(1) Basic earnings per share is computed using the weighted average number of
common shares outstanding during the year. Diluted earnings per share are
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 exercise of stock options and preferred shares
using the treasury stock method.
For the quarter ended December 31, 2013, the Company reported net income of
$1,418,536 ($0.033 per common share) compared with a net income of $1,384,925
($0.027 per common share) for the corresponding quarter in 2012. The Company's
revenues increased in the quarter ended December 31, 2013 to $1,330,217 compared
with revenues of $779,940 for the corresponding period in 2012. Revenues
increased due to the Quebec Properties coming online. The decrease in net income
for the three month period ended December 31, 2013 compared with the
corresponding period ended December 31, 2012 is principally due to the fair
value adjustment to the investment properties.
For comprehensive disclosure of the Company's performance for the period ended
December 31, 2013 and its financial position as at such date, reference should
be made to: (i) the Consolidated Financial Statements as at the period ended
December 31, 2013 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, 2013, 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 April 28, 2013.
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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Urbanfund Corp.
Mitchell Cohen
President & CEO
(416) 703-1877x1025
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