Real Estate — November 29, 2012Urbanfund Corp. Reports Financial Results for the Three and Nine Month Periods Ended September 30, 2012
TORONTO, ONTARIO--(Marketwire - Nov. 29, 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 three and nine month periods ended September 30, 2012.
For the three month period ended September 30, 2012, the Company reported loss before income taxes of $319,100 on revenues of $864,745 compared to earnings before income taxes of $180,262 on revenues of $869,769 for the corresponding period in 2011. Rental expenses for the three month period ended September 30, 2012 increased to $611,844 compared to $333,506 for the corresponding period in 2011. The increase is related to a one-time settlement of expenses related to on-site employee services that were provided over the past two years.
Net income decreased to $1,497,618 during the nine month period ended September 30, 2012 from $3,620,987 during the corresponding period in 2011. This decrease is attributable to a fair value loss of $10,159 at September 30, 2012 compared to a fair value gain of $3,484,794 in same period 2011 (see Note 5 of the Consolidated Financial Statements).
Financing costs decreased slightly during the three month period ended September 30, 2012 to $253,740 from $264,922 for the corresponding period ended September 30, 2011. Administrative costs decreased to $60,381 during the three month period ended September 30, 2012 from $80,347 for the corresponding period ended September 30, 2011. This decrease in Administrative costs is a result of a reduction in professional fees and insurance expenses.
The following selected financial data is derived from the unaudited quarterly financial statements of the Company:
|Net Income (Loss)
|Net Income (Loss)
|September 30, 2012||$||864,745||$||(104,131||)||(0.010||)||(0.010||)|
|June 30, 2012||$||949,591||$||1,124,373||0.030||0.020|
|March 31, 2012||$||820,219||$||477,376||0.011||0.009|
|December 31, 2011||$||948,417||$||90,986||0.002||0.002|
|June 30, 2011||$||924,632||$||152,283||0.004||0.003|
|March 31, 2011||$||900,106||$||3,271,235||0.075||0.064|
|December 31, 2010||$||808,428||$||100,464||0.002||0.002|
Funds from Operations ("FFO") for the three and nine month period ended September 30, 2012 are as follows:
|9 Months Ended
September 30, 2012
|9 Months Ended September 30, 2011||3 Months Ended September 30, 2012||3 Months Ended September 30, 2011|
|Earnings (Loss) before income tax||$||1,446,465||$||4,159,839||$||(319,100||)||$||180,262|
|Realized Gain on sale of securities||$||(122,584||)||$||(2,716||)||$||(58,496||)||-|
|Unrealized gain/(loss) on securities||$||(301,213||)||$||4,625||$||(89,851||)||$||40,000|
|Realized gain/(loss) on sale of IPP||$||(476,148||)||-||$||420,879||-|
|Fair value gain||$||10,159||$||(3,484,794||)||$||1,932||-|
|Funds from Operations (FFO)||$||508,912||$||617,050||$||(61,220||)||$||190,994|
FFO decreased during the nine month period ended September 30, 2012 to $508,912 from $617,050 for the corresponding nine month period ended September 30, 2011. During the three month period ended September 30, 2012, FFO decreased to ($61,220) from $190,994 for the corresponding period ended September 30, 2011. This is mainly attributable to a one-time settlement of expenses related to on-site employee services that were provided over the past 2 years.
FFO is a performance measure used by the Company to improve the understanding of operating results for the investing public. FFO is not a measure recognized under Canadian generally accepted accounting principles ("GAAP") and does not have a standardized meaning prescribed by GAAP. Therefore, FFO may not be comparable to similar measures presented by other issuers. However, the Company presents its FFO in accordance with the Real Property Association of Canada (REALpac) White Paper on Funds from Operations published on November 30, 2004 and revised in February, 2007.
FFO, or any other non-GAAP 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 GAAP.
For comprehensive disclosure of the Company's performance for the three and nine month periods ended September 30, 2012 and its financial position as at such date, reference should be made to: (i) the Company's unaudited condensed consolidated financial statements as at and for the period ended September 30, 2012 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, 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.
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.
President & CEO
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