TORONTO, ONTARIO–(Marketwired – May 29, 2015) – Mitchell Cohen, President and Chief Executive Officer of Urbanfund Corp. (TSX VENTURE:UFC) (the “Company”), confirmed today that the Company has filed unaudited interim financial statements for the three month period ended March 31, 2015 (the “Financial Statements”).
For the three month period ended March 31, 2015, the Company reported earnings before income taxes of $430,380 on revenue of $1,183,528 compared to earnings before income taxes of $209,776 on revenue of $1,158,263 for the corresponding period in 2014. This increase is principally attributable to the unrealized gain on marketable securities.
Rental expenses for the three month period ended March 31, 2015 increased to $650,571 compared to $569,547 for the corresponding period in 2014. The increase is primarily the result of higher repairs and maintenance expense in respect of the Company’s interest in 10 residential projects consisting of 1,870 residential suites located in Quebec and Montreal (the “Quebec Properties”).
FUNDS FROM OPERATIONS
Funds from operations for the period ended March 31, 2015 and the comparative prior period in 2014 were as follows:
|Three month period ended
March 31, 2015
|Three month period ended
March 31, 2014
|Earnings Before Income Taxes||$||430,380||$||209,776|
|Unrealized (Gain)/Loss on Marketable Securities||$||(161,370||)||$||(75,553||)|
|Realized Gain on Marketable Securities||–||–|
|Loss on Sale of Property||–||–|
|Fair Value Adjustment on Investment Property||–||$||200,171|
|Funds From Operations (FFO)||$||260,964||$||324,299|
|See “Non-IFRS Measures” below.|
Financing costs decreased during the three month period ended March 31, 2015 to $230,273 from $241,392 for the corresponding period in 2014. Administrative costs during the period ended March 31, 2015 increased to $41,720 from $23,025 for the corresponding period in 2014.
As of March 31, 2015, the Company had cash on hand in the amount of $1,927,474, (December 31, 2014 – $2,049,967), marketable securities of $618,016 (December 31, 2014 – $320,518) and short term investments in the amount of $2,691,563 (December 31, 2014 – $2,691,563).
As at March 31, 2015, the Company had mortgages payable in the amount of $19,444,062 (December 31, 2014 – $19,637,737) which was comprised of: (i) $7,778,138 (December 31, 2014 – $7,830,136), representing a mortgage payable for the Company’s Don Mills Property; (ii) $5,479,767 (December 31, 2014 – $5,526,442) representing a mortgage payable for the Company’s Belleville Property and London Property; and (iii) $6,191,731 (December 31, 2014 – $6,281,159) representing mortgages payable on the Quebec Properties.
As of March 31, 2015, total assets were $47,552,586 compared to $47,211,558 at December 31, 2014.
SUMMARY OF QUARTERLY RESULTS
The following selected financial data is derived from the unaudited quarterly financial statements of the Company:
|Quarter ended||Revenue||Net Income||Net Income
|March 31, 2015||$||1,183,528||$||416,970||0.010||0.008|
|December 31, 2014||$||1,192,556||$||2,462,190||0.057||0.048|
|September 30, 2014||$||1,203,021||$||315,922||0.007||0.006|
|June 30, 2014||$||1,185,504||$||119,301||0.003||0.002|
|March 31, 2014||$||1,158,263||$||165,087||0.004||0.003|
|December 31, 2013||$||1,330,217||$||1,418,536||0.030||0.027|
|September 30, 2013||$||1,167,602||$||621,243||0.014||0.012|
|June 30, 2013||$||1,684,854||$||342,741||0.010||0.009|
|1 Basic Net Income per share is computed using the weighted average number of common shares outstanding during the year. Diluted Net Income per share are computed using the weighted average number of common and potential common shares outstanding during the year.|
For comprehensive disclosure of the Company’s performance for the three month period ended March 31, 2015 and its financial position as at such date, reference should be made to: (i) the Company’s consolidated financial statements as at and for the period ended March 30, 2015 and the notes thereto; and (ii) management’s discussion and analysis of financial condition at, and results of operations for the period ended March 31, 2015 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.
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.
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 May 29, 2015.
Neither 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 accuracy of this release.
President & CEO