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TORONTO, Could 27, 2021 (GLOBE NEWSWIRE) — Mitchell Cohen, Chief Government Officer and President of Urbanfund Corp. (TSX-V: UFC) (“Urbanfund” or the “Firm”), confirmed as we speak that the Firm has filed its monetary statements for the three months ended March 31, 2021 (the “Consolidated Monetary Statements”) and corresponding Administration’s Dialogue and Evaluation (“MD&A”).
BUSINESS OVERVIEW AND STRATEGY
Enterprise Overview
Urbanfund Corp. is an integrated entity listed on the TSX Enterprise Alternate (“TSX-V”) below the image UFC. The Firm is a reporting issuer in Alberta, British Columbia and Ontario. Urbanfund’s focus is to spend money on Canadian actual property and actual property associated tasks with a concentrate on a mixture of each residential and industrial properties. The Firm’s belongings are situated in Toronto, Brampton, Belleville, Kitchener and London, Ontario, Quebec Metropolis and Montreal, Quebec and Dartmouth, Nova Scotia.
Operational Highlights
A part of Urbanfund’s power is the power to draw companions with confirmed observe information with each residential and industrial growth experience. Urbanfund continues to construct alliances with its strategic companions, highlights of that are set forth beneath:
- 10 Mic Mac Boulevard and 27 Brookdale Crescent – On November 10, 2020, the Firm acquired a 20% curiosity in West Mic Mac Properties Inc., with the remaining 80% curiosity retained by Westdale Development Co. Restricted (“Westdale”). In flip, West Mic Mac Properties Inc. bought 10 Mic Mac Boulevard and 27 Brookdale Crescent, Dartmouth, Nova Scotia for $17,000,000 plus customary closing prices, funded by a $13,000,000 mortgage and $4,000,000 in fairness contributions. This portfolio options three rental condo buildings containing 110 suites.
- Steeles Avenue East – In Could 2020, Urbanfund, together with its three way partnership companions Takol Actual Property Inc. and 2074-2084 Steeles Avenue East Inc., bought properties situated on 2074-2080-2084 Steeles Avenue East, Brampton, Ontario. The properties have been bought for $32,000,000 plus customary closing prices, funded by a $24,000,000 mortgage and $8,000,000 in fairness contributions. The Firm holds a 25% curiosity on this three way partnership. The aim of the three way partnership is to develop and promote industrial condominium items upon its completion.
- Alfred Kuehne – In February 2020, Urbanfund bought all remaining items throughout the 4 Alfred Kuehne, Brampton, Ontario undertaking and obtained a complete distribution of $2,874,228 which included a return of capital of $1,800,000 and a distribution of earnings of $1,074,228.
PRESENTATION OF FINANCIAL INFORMATION AND NON-IFRS MEASURES
Presentation of Monetary Data
Until in any other case specified herein, monetary outcomes, together with historic comparatives, contained on this press launch are primarily based on Urbanfund’s 2020 Annual Consolidated Monetary Statements, which have been ready in accordance with Worldwide Monetary Reporting Requirements (“IFRS”) as issued by the Worldwide Accounting Requirements Board (“IASB”) and interpretations of the IFRS Interpretations Committee (“IFRIC”). Until in any other case specified, quantities are in Canadian {dollars} and share modifications are calculated utilizing complete numbers.
RESULTS FROM OPERATIONS
Along with reported IFRS measures, trade observe is to guage actual property entities giving consideration to sure non-IFRS efficiency measures reminiscent of funds from operations, adjusted money flows from operations and web working earnings, as reported beneath. For additional particulars, please seek advice from Non-IFRS Measures.
Chosen Quarterly Data
| Three months ended March 31, | 2021 | 2020 | ||||
| Working outcomes | ||||||
| Income | $ | 1,417,433 | $ | 1,354,099 | ||
| Earnings earlier than taxes | 2,210,146 | 2,285,191 | ||||
| Web earnings and complete earnings | 1,581,146 | 1,754,191 | ||||
| Per share foundation, attributable to shareholders | ||||||
| Fundamental earnings per share | $ | 0.029 | $ | 0.037 | ||
| Diluted earnings per share | $ | 0.025 | $ | 0.032 | ||
| Non-IFRS measures (i) | ||||||
| FFO | $ | 504,755 | $ | 1,510,289 | ||
| ACFO | (3,400,427 | ) | 5,763,504 | |||
| As at | March 31, 2021 |
December 31, 2020 | ||||
| Monetary place | ||||||
| Whole belongings | $ | 127,655,633 | $ | 124,091,291 | ||
| Whole funding properties | 95,154,000 | 92,108,743 | ||||
| Whole debt | 58,867,369 | 54,548,405 | ||||
| Non-IFRS measures (i) | ||||||
| Debt to whole belongings | 46 | % | 44 | % | ||
| Debt to Adjusted EBITDA (ii) | 16.05 | 10.27 | ||||
| Curiosity protection ratio (ii) | 3.11 | 4.59 | ||||
| Debt service ratio (ii) | 1.52 | 2.20 | ||||
(i) Represents non-IFRS measures. For definitions and foundation of presentation for non-IFRS measures, seek advice from Non-IFRS Measures part beneath.
(ii) Calculated on a trailing 12-month foundation
Abstract of Quarterly Outcomes
| For the three months ended, | Income | Web earnings attributable to shareholders |
Fundamental earnings per share |
Diluted earnings per share |
|||||
| March 31, 2021 | $ | 1,417,433 | $ | 1,427,467 | $ | 0.029 | $ | 0.025 | |
| December 31, 2020 | 1,345,118 | 5,098,151 | 0.105 | 0.091 | |||||
| September 30, 2020 | 1,331,319 | 584,436 | 0.012 | 0.010 | |||||
| June 30, 2020 | 1,277,095 | 566,521 | 0.012 | 0.010 | |||||
| March 31, 2020 | 1,354,099 | 1,754,191 | 0.037 | 0.032 | |||||
| December 31, 2019 | 1,238,328 | 2,439,650 | 0.053 | 0.045 | |||||
| September 30, 2019 | 1,281,917 | 1,669,097 | 0.036 | 0.031 | |||||
| June 30, 2019 | 1,368,674 | 1,548,996 | 0.033 | 0.029 | |||||
| March 31, 2019 | 1,283,886 | 848,134 | 0.018 | 0.016 | |||||
Funds from Operations (“FFO”)
| Three months ended March 31, |
||||||
| 2021 | 2020 | |||||
| Web earnings attributable to shareholders | $ | 1,427,467 | $ | 1,754,191 | ||
| Add again / (deduct): | ||||||
| Acquire on disposal of marketable securities | – | (23,498 | ) | |||
| Deferred earnings tax expense | 629,000 | 130,000 | ||||
| Honest worth adjustment on fairness accounted investments | (136,800 | ) | (248,047 | ) | ||
| Honest worth adjustment on funding properties | (1,588,870 | ) | (100,115 | ) | ||
| Honest worth adjustment on non-controlling curiosity | 176,200 | – | ||||
| Straight-line of rental income | (2,242 | ) | (2,242 | ) | ||
| FFO | $ | 504,755 | $ | 1,510,289 | ||
| Weighted common variety of shares – primary | 49,803,150 | 47,655,115 | ||||
| Weighted common variety of shares – diluted | 57,228,150 | 55,080,115 | ||||
| FFO per share – primary | $ | 0.010 | $ | 0.032 | ||
| FFO per share – diluted | $ | 0.009 | $ | 0.027 | ||
Adjusted Money Flows from Operations (“ACFO”)
| Three months ended March 31, | ||||||
| 2021 | 2020 | |||||
| Money utilized in working actions | $ | (3,145,650 | ) | $ | 6,025,782 | |
| Changes to working capital modifications for ACFO (i) | (64,777 | ) | (72,278 | ) | ||
| Normalized capital expenditures (ii) | (190,000 | ) | (190,000 | ) | ||
| ACFO | $ | (3,400,427 | ) | $ | 5,763,504 | |
(i) Consists of working capital modifications that primarily based on REALpac February 2019 whitepaper, should not indicative of sustainable money circulation for distribution. Additionally consists of earnings taxes not referring to working actions, tenant deposits, and deferred financing prices.
(ii) Normalized capital expenditures are administration’s estimate of ongoing capital funding required to take care of the situation of the property and present rental revenues. Check with Non-IFRS Measures part beneath.
LIQUIDITY AND CAPITAL RESOURCES
Urbanfund expects to fulfill all of its obligations, together with dividends to shareholders, property upkeep, capital expenditures and different commitments as they grow to be due. The Firm has varied financing sources to fund future acquisitions and continues to fund working capital wants from money flows generated from working actions. Money flows from working actions are depending on the occupancy ranges of our earnings properties.
The next desk presents liquidity as a share of debt:
| As at | March 31, 2021 |
December 31, 2020 | |||||
| Money | $ | 6,047,148 | $ | 6,530,044 | |||
| Accounts receivable (i) | 611,032 | 609,102 | |||||
| Liquidity | $ | 6,658,180 | $ | 7,139,146 | |||
| Mortgages payable | 59,016,085 | 54,707,015 | |||||
| Debt | $ | 59,016,085 | $ | 54,707,015 | |||
| Liquidity expressed as a share of debt | 11.3 | % | 13.0 | % | |||
(i) As of the date of this MD&A, Urbanfund has collected its excellent quantities due as at March 31, 2021 and subsequently accounts receivable have been factored in Liquidity.
The Firm’s liquidity will probably be impacted by contractual commitments as outlined in Urbanfund’s MD&A. Urbanfund’s debt obligations may be funded by the Firm’s money and money equivalents, marketable securities, rental income from property operations.
DIVIDEND REINVESTMENT PLAN (“DRIP”)
On June 17, 2015, the Firm adopted a dividend coverage (the “Dividend Coverage”) and carried out dividend reinvestment plans for the Firm’s frequent and most popular shareholders (collectively, the “DRIP”). The DRIP is a voluntary program allowing holders of our frequent and most popular shares to mechanically, and with out cost, reinvest quarterly dividends to amass extra frequent shares at a reduction to the volume-weighted common market value as of the date of fee.
On June 18, 2018, Urbanfund amended its Dividend Coverage to extend the annual dividend price to $0.02 per frequent share and $0.02 per Sequence A most popular share, or 100% improve from the earlier yr, payable quarterly within the quantity of $0.005 per frequent share and Sequence A most popular share.
On June 18, 2019, Urbanfund amended its Dividend Coverage to extend the annual dividend to a price of $0.03 per frequent share and $0.03 per most popular share, representing a 50% improve from the earlier yr, payable quarterly within the quantity of $0.0075 per frequent and most popular shares.
Through the three months ended March 31, 2021, 534,291 frequent shares have been issued pursuant to our DRIP leading to extra fairness of $352,691. The typical participant price of the DRIP was 77%.
The document date for dividends is often the final enterprise day of every quarter and fee is roughly two weeks from the document date. The next desk summarizes our quarterly distributions as at March 31, 2021:
| Fee date | Shareholders of document | |
| 2020, quarter 1 distribution | Apr. 15, 2020 | Mar. 31, 2020 |
| 2020, quarter 2 distribution | Jul. 15, 2020 | Jun. 30, 2020 |
| 2020, quarter 3 distribution | Oct. 15, 2020 | Sep. 30, 2020 |
| 2020, quarter 4 distribution | Jan. 15, 2021 | Dec. 31, 2020 |
NON-IFRS MEASURES
Along with reported IFRS measures, trade observe is to guage actual property entities giving consideration to sure non-IFRS efficiency measures reminiscent of funds from operations, adjusted money flows from operations and web working earnings. Administration believes that these measures are useful to traders as a result of they’re well known measures of Urbanfund’s efficiency and supply a related foundation of comparability to different actual property entities. Along with IFRS outcomes, these measures are additionally used internally to measure the working efficiency of our property portfolio. These measures should not in accordance with IFRS and haven’t any standardized definitions, as such, our computations of those non-IFRS measures is probably not similar to measures by different reporting issuers. As well as, Urbanfund’s technique of calculating non-IFRS outcomes could differ from different reporting issuers, and, accordingly, is probably not comparable.
The Actual Property Affiliation of Canada (“REALpac”) issued a white paper in February 2019 prescribing revised definitions for sure non-IFRS monetary measures of money circulation and working efficiency generally utilized by the Canadian actual property trade. Urbanfund has reviewed these pointers and adopted sure measures, the place applicable, commencing with our fourth quarter 2017 reporting.
Funds From Operations (“FFO”)
Funds from Operations (“FFO”) is a non-IFRS monetary measure of working efficiency extensively utilized by the Canadian actual property trade primarily based on a white paper revealed in April 2014 and subsequently revised in February 2019. Within the view of administration, FFO higher presents working efficiency over IFRS web earnings and complete earnings, which doesn’t essentially present an entire view on efficiency. IFRS’s web earnings and complete earnings consists of objects reminiscent of truthful worth changes on funding properties that are topic to market fluctuations, which isn’t consultant of the Firm’s year-over-year working efficiency.
FFO is computed as IFRS consolidated web earnings and complete earnings attributable to Urbanfund’s shareholders adjusted for objects reminiscent of, however not restricted to, truthful worth changes on funding properties, transaction positive aspects and losses and truthful market worth changes on marketable securities. FFO shouldn’t be construed as an alternative choice to web earnings or money flows supplied by or utilized in working actions as decided in accordance with IFRS. A reconciliation of FFO to IFRS web earnings is introduced below the Outcomes from Operations part above.
Adjusted Money Flows from Operations (“ACFO”)
In February 2019, REALpac launched a brand new non-IFRS measure known as Adjusted Money Circulation from Operations (“ACFO”), which is meant to measure sustainable financial money circulation obtainable for distributions. ACFO is utilized by administration as an enter, along with FFO to evaluate Urbanfund’s distribution payout ratios.
ACFO is computed as money supplied by or utilized in working actions per IFRS plus, however not restricted to changes for working capital objects not thought-about to be indicative of sustainable financial money flows for distributions, reminiscent of modifications to different belongings, oblique taxes payable and earnings taxes payable, money distributions from investments, realized positive aspects or losses from available-for-sale marketable securities and deducts capital expenditures. ACFO shouldn’t be construed as an alternative choice to money flows supplied by or utilized in working actions as decided in accordance with IFRS. A reconciliation of ACFO to IFRS money circulation from or utilized in working actions is introduced below the Outcomes from Operations part above.
Normalized Capital Expenditures
Normalized capital expenditures are an estimate made by administration of the quantity of ongoing capital funding required to take care of the situation of the bodily property and the present rental revenues. Administration will contemplate plenty of objects in estimating normalized capital expenditures given the age and dimension of the property portfolio, reminiscent of a evaluate of historic capital expenditures and comparability of budgeted to precise on a quarterly foundation.
Urbanfund doesn’t receive assist from impartial sources for normalized capital expenditures however depends on administration’s experience in arriving at this estimate. Each the Chief Monetary Officer and the Chief Government Officer of the Firm have intensive expertise in residential and industrial actual property and in-depth information of the property portfolio.
Precise capital expenditures can differ extensively from quarter to quarter relying on plenty of components, administration believes that normalized capital expenditures are a extra related enter than precise capital expenditures in assessing the Firm’s ACFO and for figuring out applicable ranges of dividends over time. Quite a few components have an effect on variations in capital expenditures, together with, lease expiries, tenant vacancies, age and site of the properties, and market circumstances.
Web Working Earnings (“NOI”)
NOI is a non-IFRS measure and is outlined by Urbanfund as rental income from earnings properties much less direct property prices reminiscent of utilities, property taxes adjusted to normalize the affect of the applying necessities of IFRIC 21, Levies, repairs and upkeep, salaries, insurance coverage, unhealthy debt bills, property administration charges and different property particular prices. Administration believes that NOI is a significant supplementary measure of the earnings generated from the Firm’s earnings properties and is utilized in evaluating the portfolio, in addition to a key enter in figuring out the worth of the earnings properties.
Adjusted Earnings Earlier than Curiosity, Taxes, Depreciation and Amortization (“Adjusted EBITDA”)
Adjusted EBIDTA is a non-IFRS measure utilized by administration as enter in a number of of the debt metrics to measure Urbanfund’s debt profile in assessing the power of the Firm to fulfill obligations, together with servicing of our debt. Adjusted EBITDA is used as an alternative choice to web earnings as a result of it excludes main non-cash objects reminiscent of truthful worth changes to funding properties and unrealized positive aspects or losses on available-for-sale marketable securities, curiosity prices, present and deferred earnings tax bills and recoveries, fairness accounted investments and different objects that administration considers to be non-operating in nature. A reconciliation of Adjusted EBITDA to IFRS web earnings is introduced below the Debt Profile of the MD&A.
Debt to Adjusted EBITDA
Debt to Adjusted EBITDA is a non-IFRS measure calculated on a trailing 12-month foundation and is outlined as quarterly common whole debt (web of money and money equivalents) divided by Adjusted EBITDA as is calculated below the Debt Profile part of the MD&A.
Debt Service Ratio
Debt service ratio is a non-IFRS measure calculated on a trailing 12-month foundation and is outlined as Adjusted EBITDA divided by the sum of whole curiosity prices (together with curiosity prices capitalized) and scheduled mortgage principal repayments. It measures Urbanfund’s potential to fulfill debt obligations. Debt service ratio is calculated below the Debt Profile part of the MD&A.
Curiosity Protection Ratio
Curiosity protection ratio is a non-IFRS measure calculated on a trailing 12-month foundation and is outlined as Adjusted EBITDA divided by the sum of whole curiosity prices (together with curiosity prices capitalized). It measures Urbanfund’s potential to fulfill curiosity price obligations. Curiosity protection ratio is calculated below the Debt Profile part of the MD&A.
FORWARD-LOOKING INFORMATION
Sure data included on this press launch comprises forward-looking data with the which means of relevant Canadian securities legal guidelines. This data consists of, however is just not restricted to, statements made in Enterprise Overview and Technique, Outcomes from Operations, Liquidity and Capital Assets, and different statements regarding Urbanfund’s targets, its methods to attain these targets, in addition to statements with respect to administration’s beliefs, plans, estimates, and intentions, and related statements regarding anticipated future occasions, outcomes, circumstances, efficiency or expectations that aren’t historic info. Ahead-looking data typically may be recognized by means of forward-looking terminology reminiscent of “outlook”, “goal”, “could”, “will”, “would”, “count on”, “intend”, “estimate”, “anticipate”, “imagine”, “ought to”, “plan”, “proceed”, or related expressions suggesting future outcomes or occasions or the damaging thereof. Such forward-looking data displays administration’s beliefs and relies on data presently obtainable. All forward-looking data on this Press Launch is certified by the next cautionary statements.
Ahead-looking data essentially contain recognized and unknown dangers and uncertainties, which can be normal or particular and which give rise to the likelihood that expectations, forecasts, predictions, projections or conclusions is not going to show to be correct, assumptions is probably not appropriate and targets, strategic targets and priorities is probably not achieved. A wide range of components, lots of that are past Urbanfund’s management, have an effect on the operations, efficiency and outcomes of the Firm and its subsidiaries, and trigger precise outcomes to vary materially from present expectations of estimated or anticipated occasions or outcomes.
A extra detailed evaluation of the dangers that might trigger precise outcomes to materially differ than present expectations is contained in Dangers and Uncertainties part of Urbanfund’s Administration Dialogue and Evaluation for the three months ended March 31, 2021.
The forward-looking data included on this press launch is made as of the date hereof and shouldn’t be relied upon as representing Urbanfund’s views as of any date subsequent to the date hereof. Administration undertakes no obligation, besides as required by relevant legislation, to publicly replace or revise any forward-looking data, whether or not on account of new data, future occasions or in any other case.
ADDITIONAL INFORMATION
For complete disclosure of Urbanfund’s efficiency reference must be made to the Firm’s Consolidated Monetary Statements and notes thereto and Administration’s Dialogue and Evaluation for the three months ended March 31, 2021, which have been filed electronically with the Canadian securities regulators via the System for Digital Doc Evaluation and Retrieval (“SEDAR”) and could also be accessed via the SEDAR web site at www.sedar.com.
For additional data, please contact:
Mitchell Cohen
President, Chief Government Officer and Director
Urbanfund Corp.
406-703-1877 extension 2025
Neither the TSX Enterprise Alternate nor its Regulation Service Supplier (as outlined within the insurance policies of the TSX Enterprise Alternate) accepts accountability for the adequacy or accuracy of this Press Launch.
