TORONTO, ONTARIO–(Marketwired – April 28, 2017) – 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 year ended December 31, 2016 (the “Consolidated Financial Statements“).

For the year ended December 31, 2016, the Company reported earnings before income taxes of $4,657,163 on revenue of $4,955,571 compared to earnings before income taxes of $4,032,941 on revenue of $4,674,131 for the corresponding year in 2015.

Rental revenue increased to $4,955,571 for the period ended December 31, 2016 from $4,674,131 for the corresponding period ended 2015 principally resulting from the lease up of 48 Weber Street, Kitchener, Ontario (the “Kitchener Property“). Rental expenses for the year ended December 31, 2016 increased to $2,663,519 compared with $2,504,380 for the corresponding period in 2015 primarily due to the Kitchener Property coming on line.

FUNDS FROM OPERATIONS

Funds from Operations (“FFO“) for the years ended December 31, 2016 and 2015 are as follows:

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.

LIQUIDITY AND CAPITAL STRUCTURE

As of December 31, 2016, the Company had cash and cash equivalents in the amount of $7,962,632 (2015 – $7,675,268) and marketable securities of $336,344 (2015 – $323,884).

As at December 31, 2016, the Company had mortgages payable in the amount of $29,404,127 which was comprised of: (i) $11,421,755 representing a mortgage payable for the townhouse complex located at the corner of Don Mills Road and Van Horne Avenue, in Toronto, Ontario; (ii) $5,100,108 representing a mortgage payable for the commercial shopping centre located at 305 North Front Street, Belleville, Ontario (the “Belleville Property“) and the commercial shopping centre located 476-480 Wonderland Road South, London, Ontario; (iii) $5,711,661 representing mortgages payable on the Company’s multi-residential portfolio located in Quebec City and Montreal; (iv) $4,764,751 representing a mortgage payable on the units located at the Kitchener Property; (v) $624,219 representing a mortgage payable on the Company’s 65% interest in a proposed multi-residential rental development site located at 59-65 Weber Street East, Kitchener, Ontario; and (vi) $1,781,633 representing a mortgage payable on the industrial redevelopment project located at 11-13 Edvac Drive, Brampton, Ontario (the “Brampton Property“).

ASSETS / LIABILITIES

As of December 31, 2016, total assets were $$66,752,087 as compared to $56,472,836 as of December 31, 2015. The increase of $10,279,251 in total assets as at December 31, 2016 is due to: (i) the acquisition of a controlling interest in multi-residential rental complex redevelopment projects, being the Kitchener Property and the redevelopment project located at 61 Roy Street West, Kitchener, Ontario (the “Adjacent Property“) and a 50% interest in a joint venture acquired industrial redevelopment complex, being the Brampton Property, (ii) fair value adjustments on the Kitchener Property in connection with its transfer as a property under development to an investment property; (iii) fair value adjustments on the Belleville Property related to additional rentable square footage of 3,895 built at the Belleville Property in 2014; and (iv) the proceeds raised from mortgage refinancing.

As at December 31, 2016, the Company had mortgages payable in the amount of $29,404,127 as compared to $24,366,768 as at December 31, 2015.

DIVIDENDS AND DIVIDEND REINVESTMENT PLAN

The Company confirmed on June 17, 2015 that it adopted a dividend policy (the “Dividend Policy“), a dividend reinvestment plan for holders of common shares in the capital of the Company (the “Common Shares“) and a dividend reinvestment plan for the holder of Series A, first preferred shares (the “Preferred Shares“) in the capital of the Company (collectively, the “DRIPs“) as part of the Company’s long-term strategy to maximize shareholder value.

Pursuant to the Dividend Policy, the Company intends to pay an annual aggregate dividend of $0.005 per Common Share and $0.005 per Preferred Share, payable quarterly in the amount of $0.00125 per Common Share and Preferred Share. The record date for dividends is anticipated to be set as the last business day of March, June, September and December in each year and the payment date in each case is anticipated to be approximately two weeks from the applicable record date.

During 2016, the Company made dividend payments on its Common Shares and Preferred Shares on January 15, 2016 for the quarterly period ended December 31, 2015, on April 15, 2016 for the quarterly period ended March 31, 2016, on July 15, 2016 for the quarterly period ended June 30, 2016 and on October 17, 2016 for the quarterly period ended September 30, 2016. The Company declared a dividend on its Common Shares and Preferred Shares on December 30, 2016, which was subsequently paid on January 16, 2017.

The DRIPs are voluntary programs permitting holders of Common Shares and Preferred Shares to automatically, and without charge, reinvest dividends to acquire additional Common Shares at a specified discount to the volume-weighted average market price calculated as of the date of the dividend payment. The Company has reserved an aggregate of 2,000,000 Common Shares for the issuance to participants enrolled in the DRIPs. During 2016, the Company issued 709,038 common shares for an aggregate issue price of $202,991 to shareholders participating in the DRIPs.

The declaration and payment of future dividends and the quantum of any such dividends will be subject to the Company’s board of directors’ determination, in its discretion, taking into account, among other things, business performance, financial condition, growth plans and expected capital requirements, statutory solvency tests, as well as any contractual restrictions on such dividends, including any agreements entered into with lenders to the Corporation or its subsidiaries. There can be no assurance that dividends will be paid at the intended rate or at any rate in the future.

SUMMARY OF QUARTERLY RESULTS

The following selected financial data is derived from the unaudited quarterly financial statements of the Company:

Notes:

1. Basic net income or loss per common share is calculated by dividing the net income or loss by the weighted average number of common shares outstanding during the period.
2. Diluted net income or loss per common share is calculated by dividing the applicable net income or loss by the sum of the weighted average number of common shares outstanding and all additional shares that would have been outstanding if potentially dilutive common shares had been issued during the period. The dilutive effect of outstanding stock options on net income per share is calculated by determining the proceeds for the exercise of such securities which are then assumed to be used to purchase common shares of the Company.

SELECTED CONSOLIDATED FINANCIAL INFORMATION

The following table highlights selected financial information for the Company’s past three years:

Notes:

1. Basic net income or loss per common share is calculated by dividing the net income or loss by the weighted average number of common shares outstanding during the period.
2. Diluted net income or loss per common share is calculated by dividing the applicable net income or loss by the sum of the weighted average number of common shares outstanding and all additional shares that would have been outstanding if potentially dilutive common shares had been issued during the period. The dilutive effect of outstanding stock options on net income per share is calculated by determining the proceeds for the exercise of such securities which are then assumed to be used to purchase common shares of the Company.

FOURTH QUARTER RESULTS

For the quarter ended December 31, 2016, the Company reported net income of $1,720,102 ($0.039 per common share) compared with a net income of $1,994,193 ($0.046 per common share) for the corresponding quarter in 2015. The Company’s revenues increased in the quarter ended December 31, 2016 to $1,280,138 compared with revenues of $1,152,900 for the corresponding period in 2015. Revenues increased primarily due to the lease up of the Kitchener Property. The decrease in net income for the three month period ended December 31, 2016 compared with the corresponding period ended December 31, 2015 is due to the realized foreign exchange loss on the translation of foreign cash previously held in the Company’s marketable security account. This cash was subsequently drawn to partially fund the acquisition of investment properties.

For comprehensive disclosure of the Company’s performance for the year ended December 31, 2016 and its financial position as at such date, reference should be made to: (i) the Financial Statements and the notes thereto; and (ii) management’s discussion and analysis of financial condition at, and results of operations for the year ended December 31, 2016, which have been filed with applicable securities regulators on SEDAR at www.sedar.com.

ABOUT URBANFUND

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 Toronto, Kitchener, Belleville and London, Ontario and in Montreal and Quebec City, 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 and future dividend payments. Statements about the Company’s future plans and intentions, results, levels of activity, cash flow from operations, performance, goals or achievements, proposed dividends 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 the date hereof.

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.