TORONTO, ONTARIO--(Marketwire - April 30, 2012) - 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, 2011 (the "Consolidated Financial Statements").
For the year ended December 31, 2011, the Company reported earnings before income taxes of $4,400,968 on revenue of $3,642,924 compared to earnings before income taxes of $1,521,306 on revenue of $3,391,054 for the corresponding year in 2010. The majority of this increase is attributable to a fair value gain on the Company's real estate of $3,195,680 (see Note 6 of the Consolidated Financial Statements). Revenue was higher for the period ended December 31, 2011 due to better than expected rentals at the Company's residential properties in comparison to the same period in 2010.
The Company's Consolidated Financial Statements for the year ended December 31, 2011 are its first annual financial statements that comply with International Financial Reporting Standards ("IFRS"). As of December 31, 2011, total assets were $37,195,521 compared to $33,070,138 as of December 31, 2010 and $32,011,848 as of January 1, 2010.
The increase of $4,125,383 in total assets as at December 31, 2011 is primarily due to the fair value gain on its real estate of $3,195,680 (see Note 6 of the Consolidated Financial Statements).
Rental expenses for the year ended December 31, 2011 increased to $1,333,962 compared to $1,272,310 for the corresponding period in 2010. The slight increase is a result of a general repairs and maintenance expenditures at all properties.
The following table highlights selected financial information for the Company's past two years:
December 31, 2011
December 31, 2010
|Net Income (Loss)||$||3,711,974||$||1,162,244|
|Net Income (Loss) per Share|
|Cash Dividends Declared per Share||Nil||Nil|
1Basic earnings per share is computed using the weighted average number of common shares outstanding during the year. Diluted earnings per share are computed using the weighted average number of common and potential common shares outstanding during the year. Potential common shares consist of the incremental common shares issuable upon the exercise of stock options using the treasury stock method.
Results from Funds from Operations ("FFO") for the period ended December 31, 2011 are as follows:
December 31, 2011
December 31, 2010
|Net Earnings (Loss) Before Income Taxes||$||4,400,968||$||1,521,306|
|Unrealized Gain on Marketable Securities||$||(18,071||)||$||(103,759||)|
|Realized Gain on Marketable Securities||$||(131,169||)||-|
|Fair Value Adjustment on Investment Property||$||(3,195,680||)||$||(628,870||)|
|Funds From Operations (FFO)||$||956,765||$||746,156|
For the year ended December 31, 2011, the Company reported an increase in FFO to $956,765 compared with $746,156 for the year ended December 31, 2010. This increase was caused primarily by an increase in dividend income and a realized gain on marketable securities as compared with the corresponding period ended 2010.
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.
For comprehensive disclosure of the Company's performance for the period ended December 31, 2011 and its financial position as at such date, reference should be made to: (i) the Consolidated Financial Statements 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, 2011, 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 dated April 30, 2012.
President & CEO
(416) 703-1877 x1025