TORONTO, Nov. 26, 2024 (GLOBE NEWSWIRE) -- Mitchell Cohen, Chief Executive Officer and President of Urbanfund Corp. (TSX-V: UFC) ("Urbanfund” or the "Company”), confirmed today that the Company has filed its financial statements for the three and nine months ended September 30, 2024 (the "Consolidated Financial Statements”) and corresponding Management's Discussion and Analysis ("MD&A”).
BUSINESS OVERVIEW AND STRATEGY
Business Overview
Urbanfund Corp. is an incorporated entity listed on the TSX Venture Exchange ("TSX-V”) under the symbol UFC. The Company is a reporting issuer in Alberta, British Columbia and Ontario. Urbanfund's focus is to invest in Canadian real estate and real estate related projects with a focus on a mix of both residential and commercial properties. The Company's assets are located in Toronto, Brampton, Belleville, Kitchener and London, Ontario, Quebec City and Montreal, Quebec and Dartmouth, Nova Scotia.
Operational Highlights
Part of Urbanfund's strength is its ability to attract partners with proven track records with both residential and commercial development expertise. Urbanfund continues to build alliances with its strategic partners:
- 67-69 Westmore - During the nine months ended September 30, 2024, Urbanfund, together with Kolt Investment Inc. and two private real estate investors, sold twenty-one commercial units on 67-69 Westmore Drive, Etobicoke, Ontario for total proceeds of $12,265,024. Total cash distributions received as of the date of this press release were $2,909,769.
- One Bloor Project - During the nine months ended September 30, 2024, Urbanfund received distributions relating to profit on sales of One Bloor Street totaling $106,000. Total profits received as of the date of this press release were $4,910,667.
- 1040 Martin Grove Road, Toronto - During the nine months ended September 30, 2024, Urbanfund received a return of capital of $885,223 from its investment in TREI (1040) LP. In April 2023, Urbanfund invested $1,870,000 into TREI (1040) LP which holds a 50% interest in 1040 Martin Grove LP ("1040 LP”) that owns an industrial complex located at 1040 Martin Grove Road, Toronto, Ontario. Urbanfund owns 56.7% of TREI (1040) LP, effecting an indirect 28.4% ownership in 1040 LP. The complex is approximately 75,727 sq ft with 25 industrial units. The purpose of 1040 LP is to convert the property to condominium title and sell individual units into market. As of the date of this press release, 1040 LP has sold five commercial units, for total proceeds of $7,912,500.
- 270-330 Esna Park Drive, Markham - In June 2023, Urbanfund invested $1,660,000 into TREI (270-330 Esna Park) LP which holds a 20% interest in 270-330 Esna Park LP ("Esna Park LP”) that owns an industrial complex located at 270-330 Esna Park Drive, Markham, Ontario. Urbanfund owns 76.9% of TREI (270-330 Esna Park) LP, effecting an indirect 15.4% ownership in Esna Park LP. The complex is approximately 100,524 sq ft with 37 industrial units. The purpose of Esna Park LP is to convert property to condominium and sell individual units into market. As of the date of this press release, Esna Park LP has sold three commercial units, for total proceeds of $4,406,410.
Presentation of Financial Information
Unless otherwise specified herein, financial results, including historical comparatives, contained in this press release are based on Urbanfund's 2023 Annual Consolidated Financial Statements, which have been prepared in accordance with International Financial Reporting Standards ("IFRS”) as issued by the International Accounting Standards Board ("IASB”) and interpretations of the IFRS Interpretations Committee ("IFRIC”). Unless otherwise specified, amounts are in Canadian dollars and percentage changes are calculated using whole numbers.
RESULTS FROM OPERATIONS
In addition to reported IFRS measures, industry practice is to evaluate real estate entities giving consideration to certain non-IFRS performance measures such as funds from operations, adjusted cash flows from operations and net operating income, as reported below. For further details, please refer to Non-IFRS Measures.
Selected Quarterly Information
| Three months ended September 30, | Nine months ended September 30, | |||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||
| Operating results | ||||||||||||
| Rental Revenue | $ | 2,090,060 | $ | 2,162,878 | $ | 6,540,334 | $ | 6,439,747 | ||||
| Income before taxes | 2,101,886 | 1,177,349 | 6,551,109 | 4,080,794 | ||||||||
| Net income and comprehensive income | 1,522,886 | 936,268 | 4,668,109 | 3,292,236 | ||||||||
| Per share basis, attributable to shareholders | ||||||||||||
| Basic income per share | $ | 0.028 | $ | 0.017 | $ | 0.090 | $ | 0.061 | ||||
| Diluted income per share | $ | 0.025 | $ | 0.015 | $ | 0.079 | $ | 0.053 | ||||
| Non-IFRS measures (i) | ||||||||||||
| FFO | $ | 1,934,384 | $ | 1,065,878 | $ | 6,760,667 | $ | 2,969,424 | ||||
| ACFO | 3,032,313 | 292,467 | 9,468,825 | 131,713 | ||||||||
| As at, | September 30, 2024 | December 31,
2023 | September 30, 2023 | |||||||||
| Financial position | ||||||||||||
| Total assets | $ | 150,714,219 | $ | 155,407,220 | $ | 152,052,890 | ||||||
| Total investment properties | 106,069,000 | 107,252,000 | 105,120,000 | |||||||||
| Total mortgages payable | 55,928,358 | 65,103,388 | 65,381,442 | |||||||||
| Non-IFRS measures (i) | ||||||||||||
| Debt to total assets | 37 | % | 42 | % | 43 | % | ||||||
| Debt to Adjusted EBITDA (ii) | 4.04 | 10.78 | 5.05 | |||||||||
| Interest coverage ratio (ii) | 5.05 | 2.36 | 4.58 | |||||||||
| Debt service ratio (ii) | 2.96 | 1.42 | 2.79 | |||||||||
(ii) Calculated on a trailing 12-month basis
Summary of Quarterly Results
| For the three months ended, | Revenue | Net income attributable to shareholders | Basic income per share | Diluted income per share | ||||||||
| September 30, 2024 | $ | 2,090,060 | $ | 1,516,042 | $ | 0.028 | $ | 0.025 | ||||
| June 30, 2024 | 2,274,375 | 1,477,909 | 0.028 | 0.024 | ||||||||
| March 31, 2024 | 2,175,899 | 1,818,304 | 0.034 | 0.030 | ||||||||
| December 31, 2023 | 2,198,679 | 3,200,591 | 0.061 | 0.053 | ||||||||
| September 30, 2023 | 2,162,878 | 904,469 | 0.017 | 0.015 | ||||||||
| June 30, 2023 | 2,206,479 | 1,056,505 | 0.020 | 0.018 | ||||||||
| March 31, 2023 | 2,070,390 | 1,219,047 | 0.023 | 0.021 | ||||||||
| December 31, 2022 | 2,167,779 | 5,097,851 | 0.098 | 0.086 | ||||||||
| Three months ended September 30, | Nine months ended September 30, | |||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||
| Net income attributable to shareholders | $ | 1,516,042 | $ | 904,469 | $ | 4,812,255 | $ | 3,180,021 | ||||
| Add back / (deduct): | ||||||||||||
| Deferred income tax expense | 237,000 | 196,000 | 505,000 | 638,000 | ||||||||
| Fair value adjustment on equity accounted investments | (58,600 | ) | (10,000 | ) | (336,000 | ) | (646,400 | ) | ||||
| Fair value adjustment on investment properties | 259,310 | (26,101 | ) | 2,019,281 | (216,762 | ) | ||||||
| Fair value adjustment on non-controlling interest | (20,368 | ) | 510 | (233,369 | ) | 21,065 | ||||||
| Straight-line of rental revenue | 1,000 | 1,000 | (6,500 | ) | (6,500 | ) | ||||||
| FFO | $ | 1,934,384 | $ | 1,065,878 | $ | 6,760,667 | $ | 2,969,424 | ||||
| Weighted average number of shares - basic | 53,509,927 | 52,529,574 | 53,243,697 | ()[\]\\.,;:\s@\"]+)*)|(\".+\"))@((\[[0-9]{1,3}\.[0-9]{1,3}\.[0-9]{1,3}\.[0-9]{1,3}\])|(([a-zA-Z\-0-9]+\.)+[a-zA-Z]{2,}))$/;return b.test(a)}$(document).ready(function(){if(performance.navigation.type==2){location.reload(true)}$("iframe[data-lazy-src]").each(function(b){$(this).attr("src",$(this).attr("data-lazy-src"))});if($(".owl-article-body-images").length){$(".owl-article-body-images").owlCarousel({items:1,loop:true,center:false,dots:false,autoPlay:true,mouseDrag:false,touchDrag:false,pullDrag:false,nav:true})}var a=$("#display_full_text").val();if(a==0){$.ajax({url:"/ajax/set-article-cookie",type:"POST",data:{cmsArticleId:$("#cms_article_id").val()},dataType:"json",success:function(b){},error:function(b,d,c){}})}$(".read-full-article").on("click",function(d){d.preventDefault();var b=$(this).attr("data-cmsArticleId");var c=$(this).attr("data-productId");var f=$(this).attr("data-href");dataLayer.push({event:"paywall_click",paywall_name:"the_manila_times_premium",paywall_id:"paywall_article_"+b});$.ajax({url:"/ajax/set-article-cookie",type:"POST",data:{cmsArticleId:b,productId:c},dataType:"json",success:function(e){window.location.href=$("#BASE_URL").val()+f},error:function(e,h,g){}})});$(".article-embedded-newsletter-form .close-btn").on("click",function(){$(".article-embedded-newsletter-form").fadeOut(1000)})});$(document).on("click",".article-embedded-newsletter-form .newsletter-button",function(){var b=$(".article-embedded-newsletter-form .newsletter_email").val();var d=$("#ga_user_id").val();var c=$("#ga_user_yob").val();var a=$("#ga_user_gender").val();var e=$("#ga_user_country").val();if(validateEmail(b)){$.ajax({url:"/ajax/sendynewsletter",type:"POST",data:{email:b},success:function(f){$(".article-embedded-newsletter-form .nf-message").html(f);$(".article-embedded-newsletter-form .nf-message").addClass("show");setTimeout(function(){$(".article-embedded-newsletter-form .nf-message").removeClass("show");$(".article-embedded-newsletter-form .nf-message").html("")},6000);dataLayer.push({event:"newsletter_sub",user_id:d,product_name:"newsletter",gender:a,yob:c,country:e})},error:function(f,h,g){}})}else{$(".article-embedded-newsletter-form .nf-message").html("Please enter a valid email address.");$(".article-embedded-newsletter-form .nf-message").addClass("show");setTimeout(function(){$(".article-embedded-newsletter-form .nf-message").removeClass("show");$(".article-embedded-newsletter-form .nf-message").html("")},6000)}});$(document).on("click",".article-embedded-newsletter-form .nf-message",function(){$(this).removeClass("show");$(this).html("")});
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