SEDAR Interim Financial Statements

UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025 TABLE OF CONTENTS Unaudited Interim Condensed Consolidated Financial Statements 2 Management’s Responsibility for Financial Reporting and Notice to Reader 3 Unaudited Interim Condensed Consolidated Balance Sheets 4 Unaudited Interim Condensed Consolidated Statements of Income and Comprehensive Income 5 Unaudited Interim Condensed Consolidated Statements of Changes in Equity 6 Unaudited Interim Condensed Consolidated Statements of Cash Flows 7 Notes to Unaudited Interim Condensed Consolidated Financial Statements 2 URBANFUND CORP. INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, THIRD QUARTER 2025 MANAGEMENT’S RESPONSIBILITY FOR FINANCIAL REPORTING To the Shareholders of Urbanfund Corp. The accompanying unaudited interim condensed consolidated financial statements of Urbanfund Corp. (the “Company” or “Urbanfund”) are the responsibility of management and have been approved by the Board of Directors of the Company. The unaudited interim condensed consolidated financial statements have been prepared by management, on behalf of the Board of Directors, in accordance with International Financial Reporting Standards, as disclosed in the notes to the unaudited interim condensed consolidated financial statements. Where necessary, management has made informed judgments and estimates in accounting for transactions which were not complete at the consolidated balance sheets date. In the opinion of management, the consolidated financial statements have been prepared with acceptable limits of materiality and are in accordance with International Financial Reporting Standards. Management has established systems of internal control over the financial reporting process, which are designed to provide reasonable assurance that relevant and reliable financial information is produced. The Board of Directors is responsible for reviewing and approving the interim condensed consolidated financial statements together with other financial information of the Company and for ensuring that management fulfills its financial reporting responsibilities. An Audit Committee assists the Board of Directors in fulfilling this responsibility. The Audit Committee meets with management to review the financial reporting process and the unaudited interim condensed consolidated financial statements together with other financial information of the Company for issuance to the shareholders. Management recognizes its responsibility for conducting the Company’s affairs in compliance with the established financial standards, and applicable laws and regulations, and for maintaining proper standards of conduct for its activities. NOTICE TO READER Under National Instrument 51-102, Part 4, subsection 4.3(3)(a), if an auditor has not performed a review of the interim condensed consolidated financial statements, they must be accompanied by a notice indicating that the interim condensed consolidated financial statements have not been reviewed by an independent auditor. The accompanying unaudited interim condensed consolidated financial statements of Urbanfund have been prepared by and are the responsibility of management. Urbanfund’s independent auditor has not performed a review of these unaudited interim condensed consolidated financial statements in accordance with the standards established by the Chartered Professional Accountants of Canada. Mitchell Cohen Thomas Kofman President --- , Chief Executive Officer and Director Director Toronto, Ontario November 25, 2025 3 URBANFUND CORP. INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, THIRD QUARTER 2025 URBANFUND CORP. INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS (In Canadian dollars) (Unaudited) As at Note September 30, 2025 December 31, 2024 Assets Non-current assets Investment properties 4 109,476,000 $ 108,843,000 $ Equity accounted investments 5 34,029,076 30,429,021 143,505,076 139,272,021 Current assets Inventory properties 7 1,557,178 3,015,997 Receivables and other assets 8 1,070,926 1,036,811 Cash 10,190,035 12,279,522 12,818,139 16,332,330 Total assets 156,323,215 $ 155,604,351 $ Liabilities Non-current liabilities Mortgages payable 9 43,988,496 $ 45,207,297 $ Deferred tax liabilities 12,565,000 11,865,000 56,553,496 57,072,297 Current liabilities Current portion of mortgages payable 9 10,348,609 10,298,794 Tenant deposits 446,461 443,784 Income taxes payable 400,927 1,475,497 Accounts payable and accrued liabilities 1,257,378 1,312,524 12,453,375 13,530,599 Total liabilities 69,006,871 70,602,896 Equity Common shares 17,001,777 16,882,739 Preferred shares 1,113,750 1,113,750 Retained earnings 67,365,965 65,125,971 Total shareholders' equity 85,481,492 83,122,460 Non-controlling interests 1,834,852 1,878,995 Total equity 87,316,344 85,001,455 Total liabilities and equity 156,323,215 $ 155,604,351 $ Contingencies and commitments 20 Subsequent events 21 Approved by the Board of Directors: Mitchell Cohen Thomas Kofman Director Director The accompanying notes are an integral part of the interim condensed consolidated financial statements. 4 URBANFUND CORP. INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, THIRD QUARTER 2025 URBANFUND CORP. INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (In Canadian dollars) (Unaudited) Note 2025 2024 2025 2024 Revenue Rental revenue 12 2,154,357 $ 2,090,060 $ 6,470,073 $ 6,540,334 $ Inventory property sales 7, 12 942,620 3,472,000 2,257,660 12,265,024 3,096,977 5,562,060 8,727,733 18,805,358 Operating costs Rental expenses 954,334 966,534 2,820,378 2,852,018 Inventory property cost of sales 7 697,391 2,420,332 1,708,610 8,089,062 1,651,725 3,386,866 4,528,988 10,941,080 Operating income 1,445,252 2,175,194 4,198,745 7,864,278 Other income Income from equity accounted investments 5 1,800,427 605,748 3,241,052 2,129,748 Interest income 18,19 87,493 128,061 242,827 314,733 Fair value adjustment on income properties 4 (134,534) (259,310) (411,614) (2,019,281) Profit from investment in real estate project 6 - - - 106,000 1,753,386 474,499 3,072,265 531,200 Other expenses Financing costs 496,693 465,952 1,472,978 1,584,377 General and administrative costs 87,533 81,855 207,799 259,992 584,226 547,807 1,680,777 1,844,369 Income before taxes 2,614,412 2,101,886 5,590,233 6,551,109 Current income tax expense 82,000 342,000 402,000 1,378,000 Deferred income tax expense 392,000 237,000 700,000 505,000 474,000 579,000 1,102,000 1,883,000 Net income and comprehensive income 2,140,412 $ 1,522,886 $ 4,488,233 $ 4,668,109 $ Net income attributable to: Shareholders 2,223,823 $ 1,516,042 $ 4,532,376 $ 4,812,255 $ Non-controlling interests (83,411) 6,844 (44,143) (144,146) 2,140,412 $ 1,522,886 $ 4,488,233 $ 4,668,109 $ Net income per share attributable to shareholders: Basic income per share 10 0.041 $ 0.028 $ 0.084 $ 0.090 $ Diluted income per share 10 0.036 $ 0.025 $ 0.074 $ 0.079 $ The accompanying notes ar --- e an integral part of the interim condensed consolidated financial statements. Nine months ended September 30, Three months ended September 30, 5 URBANFUND CORP. INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, THIRD QUARTER 2025 URBANFUND CORP. INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (In Canadian dollars) (Unaudited) Note Number of shares Share capital Number of shares Share capital Total equity Balance, December 31, 2023 52,803,557 16,236,174 $ 7,425,000 1,113,750 $ 58,546,071 $ 1,822,664 $ 77,718,659 $ Changes during the period Net income and comprehensive income for the period - - - - 4,812,255 (144,146) 4,668,109 Dividends paid 11,18 - - - - (1,659,056) - (1,659,056) Add: prior period dividends payable - - - - 752,857 - 752,857 Less: current period dividends payable - - - - (762,247) - (762,247) Dividend reinvestment plan 11 751,168 608,075 - - (608,075) - - Balance, September 30, 2024 53,554,725 16,844,249 $ 7,425,000 1,113,750 $ 61,081,805 $ 1,678,518 $ 80,718,322 $ Note Number of shares Share capital Number of shares Share capital Total equity Balance, December 31, 2024 53,602,915 16,882,739 $ 7,425,000 1,113,750 $ 65,125,971 $ 1,878,995 $ 85,001,455 $ Changes during the period Net income and comprehensive income for the period - - - - 4,532,376 (44,143) 4,488,233 Dividends paid 11,18 - - - - (2,171,420) - (2,171,420) Add: prior period dividends payable 11 - - - - 762,849 - 762,849 Less: current period dividends payable 11 - - - - (764,773) - (764,773) Dividend reinvestment plan 11 153,894 119,038 - - (119,038) - - Balance, September 30, 2025 53,756,809 17,001,777 $ 7,425,000 1,113,750 $ 67,365,965 $ 1,834,852 $ 87,316,344 $ The accompanying notes are an integral part of the interim condensed consolidated financial statements. Preferred equity Common equity Non-controlling interests Retained earnings Common equity Preferred equity Retained earnings Non-controlling interests 6 URBANFUND CORP. INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, THIRD QUARTER 2025 URBANFUND CORP. INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In Canadian dollars) (Unaudited) Note 2025 2024 2025 2024 Operating activities Net income and comprehensive income 2,140,412 $ 1,522,886 $ 4,488,233 $ 4,668,109 $ Items not affecting cash: Income from equity accounted investments 5 (1,800,427) (610,000) (3,241,052) (2,129,748) Interest income 18 (87,493) (128,061) (242,827) (314,733) Fair value adjustment on income properties 4 134,534 259,310 411,614 2,019,281 Deferred income tax expense 392,000 237,000 700,000 505,000 Other adjustments: Disposition of inventory properties 7 697,391 2,420,332 1,708,610 8,089,062 Repayment of mortgage principal from sale of inventory properties 18 - (294,542) - (8,030,891) Adjustments for other non-cash working capital items 19 1,000,074 157,985 (920,251) 6,184,298 Cash provided by operating activities 2,476,491 3,564,910 2,904,327 10,990,378 Investing activities Capital expenditures on income properties 4 (539,534) (242,310) (1,044,614) (836,281) Construction expenditures to inventory properties 7 (90,562) (168,581) (249,791) (733,577) Contributions to equity accounted investment 5 - - (1,600,000) - Distributions from equity accounted investment 5 636,617 400,000 1,240,997 1,285,223 Cash used in investing activities 6,521 (10,891) (1,653,408) (284,635) Financing activities Repayments of mortgage principal 18 (387,264) (383,643) (1,168,986) (1,144,139) Dividends paid 11, 18 (724,044) (536, --- 254) (2,171,420) (1,659,056) Cash used in financing activities (1,111,308) (919,897) (3,340,406) (2,803,195) Net change in cash 1,371,704 2,634,122 (2,089,487) 7,902,548 Cash, beginning of period 8,818,331 8,836,400 12,279,522 3,567,974 Cash, end of period 10,190,035 $ 11,470,522 $ 10,190,035 $ 11,470,522 $ Supplemental cash flow information 18 The accompanying notes are an integral part of the interim condensed consolidated financial statements. Three months ended September 30, Nine months ended September 30, URBANFUND CORP. NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THREE AND NINE MONTHS ENDED SEPTEMBER 30 2025 AND 2024 (In Canadian dollars) (Unaudited) 7 URBANFUND CORP. INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, THIRD QUARTER 2025 1. GENERAL INFORMATION Urbanfund Corp. and its consolidated subsidiaries (collectively, “Urbanfund” or the “Company”) own, develop and operate a real estate portfolio focused on a mix of both residential and commercial properties. Urbanfund also actively focuses on identifying real estate related projects. The parent company, Urbanfund Corp., was incorporated on February 4, 1997, pursuant to the provisions of the Business Corporations Act of Alberta. In 2003, the Company filed articles of continuance, allowing operations to continue under the laws of the Province of Ontario, Canada. The Company’s corporate headquarters and registered head office are located at 35 Lesmill Road, Toronto, Ontario, Canada, M3B 2T3. Urbanfund’s common shares are listed on the TSX Venture Exchange (“TSX-V”) under the symbol UFC. 2. BASIS OF PREPARATION (a) Statement of compliance Urbanfund’s interim condensed consolidated financial statements have been prepared in accordance with IAS 34, Interim Financial Reporting as issued by the International Accounting Standards Board (IASB). These unaudited interim condensed consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) but do not include all the disclosures required for annual financial statement, and therefore, they should be read in conjunction with the Company’s audited consolidated financial statements for the years ended December 31, 2024 and 2023 which have been prepared in accordance with IFRS. These interim condensed consolidated financial statements were authorized for issuance by the Board of Directors on November 25, 2025. (b) Basis of presentation The interim condensed consolidated financial statements are prepared on a going concern basis using the historical cost method modified to include fair value measurement of investment properties (note 4), as set out in the relevant accounting policies. The accounting policies set out below have been applied consistently in all material respects. (c) Significant judgments, estimates and assumptions The preparation of Urbanfund’s interim condensed consolidated financial statements require management to make judgments, estimates and assumptions that effect the amounts reported. In the process of applying Urbanfund’s accounting policies, management was required to apply judgment in certain areas. Estimates and assumptions made by management are based on events and circumstances that existed at the interim condensed consolidated balance sheet date. Accordingly, actual results may differ from these estimates. The significant judgments, estimates and assumptions in the preparation of the interim condensed consolidated financial stateme --- nts are consistent with those followed in the preparation of the Company’s annual consolidated financial statements for the years ended December 31, 2024 and 2023. 3. MATERIAL ACCOUNTING POLICIES The interim condensed consolidated financial statements have been prepared using the same accounting policies and methods as those used in the consolidated financial statements for the year ended December 31, 2024. (a) Future changes in accounting policies IFRS 18, Presentation and Disclosure in Financial Statements In April 2024, IFRS 18, “Presentation and Disclosure in Financial Statements” was issued to achieve comparability of the financial performance of similar entities. The standard, which replaces IAS 1, “Presentation of Financial Statements”, impacts the presentation of primary financial statements and notes, including the statement of earnings where companies will be required to present separate categories of income and expense for operating, investing, and financing activities with prescribed subtotals for each new category. The standard will also require management-defined performance measures to be explained and included in a separate note within the consolidated financial statements. The standard is effective for annual reporting periods beginning on or after January 1, 2027, including interim financial statements, and requires retrospective application. The Company is currently assessing the impact of the new standard. URBANFUND CORP. NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THREE AND NINE MONTHS ENDED SEPTEMBER 30 2025 AND 2024 (In Canadian dollars) (Unaudited) 8 URBANFUND CORP. INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, THIRD QUARTER 2025 IFRS 9, Financial Instruments: Disclosures In May 2024, amendments to IFRS 9, “Financial Instruments” and IFRS 7, “Financial Instruments: Disclosures” were issued. The amendments clarify the timing of recognition and derecognition for a financial asset or financial liability, including clarifying that a financial liability is derecognized on the settlement date. Further, the amendments introduce an accounting policy choice to derecognize financial liabilities settled using an electronic payment system before the settlement date, if specific conditions are met. In addition, the amendments clarify the classification of financial assets with features linked to environmental, social and corporate governance. The amendments also require additional disclosures for financial instruments with contingent features and investments in equity instruments classified at fair value through other comprehensive income. These amendments are effective for annual reporting periods beginning on or after January 1, 2026. Early adoption is permitted, with an option to early adopt only the amendments related to the classification of financial assets. The adoption is not expected to have a material impact on the Company’s consolidated financial statements. 4. INVESTMENT PROPERTIES Valuation methodology As highlighted in note 14, the fair value methodology of the Company’s income properties uses inputs that are considered Level 3 because of significant unobservable inputs are required to determine fair value. As at September 30, 2025 and December 31, 2024, the capitalization rates used in valuing the commercial and residential properties are set out as follows: Sensitivity An increase in SNOI would result in an increase to the estimated fair value of properties. The capitalization rates --- have an inverse relationship between the rate and the fair value, in other words, the lower the capitalization rate, the higher the estimated value. The following table is a sensitivity applied to the proportion of the Company’s investment properties measured using the direct capitalization approach and therefore is sensitive to the changes in capitalization rates: As at, September 30, 2025 December 31, 2024 Income properties 109,476,000 $ 108,843,000 $ 109,476,000 $ 108,843,000 $ As at, September 30, 2025 December 31, 2024 Balance, beginning of period 108,843,000 $ 107,252,000 $ Capital expenditures 1,044,614 631,412 Fair value adjustment on income properties (411,614) 959,588 Balance, end of period 109,476,000 $ 108,843,000 $ Minimum Maximum Average Minimum Maximum Average Commercial properties 6.00% 8.50% 6.22% 6.00% 8.25% 6.22% Residential properties 3.50% 4.50% 4.05% 3.50% 4.50% 4.05% September 30, 2025 December 31, 2024 Stabilized NOI -1% Stabilized NOI as reported Stabilized NOI +1% As at September 30, 2025 Capitalization rate, decrease, 0.25% 5,590,300 $ 6,753,100 $ 7,915,200 $ Capitalization rate, as reported (1,087,400) - 1,101,100 Capitalization rate, increase, 0.25% (7,011,300) (5,976,600) (4,940,800) As at December 31, 2024 Capitalization rate, decrease, 0.25% 5,537,300 $ 6,691,800 $ 7,846,400 $ Capitalization rate, as reported (1,099,100) - 1,077,700 Capitalization rate, increase, 0.25% (6,983,700) (5,954,700) (4,925,600) URBANFUND CORP. NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THREE AND NINE MONTHS ENDED SEPTEMBER 30 2025 AND 2024 (In Canadian dollars) (Unaudited) 9 URBANFUND CORP. INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, THIRD QUARTER 2025 5. EQUITY ACCOUNTED INVESTMENTS The following details the Company’s ownership in its equity accounted investments: In April 2023, Urbanfund invested $1,870,000 into TREI (1040) LP which holds a 50% interest in 1040 LP that owns an industrial complex located on 1040 Martin Grove Road, Toronto, Ontario. Urbanfund owns 56.7% of TREI (1040) LP, reflecting an indirect 28.35% ownership in 1040 LP. During the nine months ended September 30, 2025, four commercial units (September 30, 2024 – five commercial units) were sold for total sales proceeds of $1,685,124 (September 30, 2024 – $2,243,194). To date, the Company has received a return of capital of $11,752,221 from this investment. In June 2023, Urbanfund invested $1,660,000 into TREI (270-330 Esna Park) LP which holds a 20% interest in Esna Park LP that owns an industrial complex located on 270-330 Esna Park Drive, Markham, Ontario. Urbanfund owns 76.9% of TREI (270-330 Esna Park) LP, reflecting an indirect 15.38% ownership in Esna Park LP. During the nine months ended September 30, 2025, 18 commercial units (September 30, 2024 – three commercial units) were sold for total sales proceeds of $3,354,897 (September 30, 2024– $677,706). Subsequent to the quarter end, the Company received a return of capital of $360,000 from this investment. The following table shows the changes in the aggregate carrying value of Urbanfund’s equity accounted investments: The following tables presents the financial position of Urbanfund’s equity accounted investees on a 100% basis: As at, September 30, 2025 December 31, 2024 Equity investees Principal activity Investment in associates Highfield Park Residential Inc. ("Highfield") Owns and operates investment properties 20.0% 20.0% Bellbrook Residential Inc. ("Bellbrook") Owns --- and operates investment properties 20.0% 20.0% West Mic Mac Properties Inc. ("Mic Mac ") Owns and operates investment properties 20.0% 20.0% Investment in joint ventures 1040 Martin Grove LP ("1040 LP") Purchase, condominium conversion and subsequent sale 28.35% 28.35% 270-330 Esna Park LP ("Esna Park LP") Purchase, condominium conversion and subsequent sale 15.38% 15.38% As at September 30, 2025 Highfield Bellbrook Mic Mac 1040 LP Esna Park LP Total Balance, beginning of period 21,833,048 $ 3,119,371 $ 2,017,677 $ 1,646,983 $ 1,811,942 $ 30,429,021 $ Contributions / (Distributions) 1,250,000 - (24,000) (866,997) - 359,003 Share of net income 1,587,381 250,751 492,255 334,944 575,722 3,241,052 Balance, end of period 24,670,429 $ 3,370,122 $ 2,485,932 $ 1,114,930 $ 2,387,664 $ 34,029,076 $ As at December, 2024 Highfield Bellbrook Mic Mac 1040 LP Esna Park LP Total Balance, beginning of year 19,436,410 $ 2,847,000 $ 1,818,020 $ 1,843,000 $ 1,657,000 $ 27,601,430 $ Distributions (180,000) (80,000) (140,000) (885,224) - (1,285,224) Share of net income 2,576,638 352,371 339,657 689,207 154,942 4,112,815 Balance, end of year 21,833,048 $ 3,119,371 $ 2,017,677 $ 1,646,983 $ 1,811,942 $ 30,429,021 $ As at September 30, 2025 Highfield Bellbrook Mic Mac 1040 LP Esna Park LP Total Current assets 2,857,058 $ 736,674 $ 575,127 $ 15,878,717 $ 18,250,064 $ 38,297,640 $ Non-current assets 180,610,000 37,260,000 22,710,000 - $ - 240,580,000 $ Current liabilities (3,057,703) (418,428) (279,856) (276,206) $ (194,620) (4,226,813) $ Non-current liabilities (57,057,208) (20,727,634) (10,575,613) (11,669,773) $ (2,530,971) (102,561,199) $ Net assets 123,352,147 $ 16,850,612 $ 12,429,658 $ 3,932,738 $ 15,524,473 $ 172,089,628 $ Urbanfund's interest 24,670,429 $ 3,370,122 $ 2,485,932 $ 1,114,930 $ 2,387,664 $ 34,029,076 $ As at December, 2024 Highfield Bellbrook Mic Mac 1040 LP Esna Park LP Total Current assets 2,444,609 $ 314,712 $ 287,597 $ 20,935,484 $ 34,754,395 $ 58,736,797 $ Non-current assets 174,760,000 36,710,000 20,900,000 - - 232,370,000 Current liabilities (7,362,659) (842,748) (623,968) (309,001) (518,229) (9,656,605) Non-current liabilities (60,676,711) (20,585,111) (10,475,245) (14,817,015) (22,455,012) (129,009,094) Net assets 109,165,239 $ 15,596,853 $ 10,088,384 $ 5,809,468 $ 11,781,154 $ 152,441,098 $ Urbanfund's interest 21,833,048 $ 3,119,371 $ 2,017,677 $ 1,646,983 $ 1,811,942 $ 30,429,021 $ URBANFUND CORP. NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THREE AND NINE MONTHS ENDED SEPTEMBER 30 2025 AND 2024 (In Canadian dollars) (Unaudited) 10 URBANFUND CORP. INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, THIRD QUARTER 2025 6. INVESTMENT IN REAL ESTATE PROJECT In September 2009, the Company invested $2,000,000 for a 10% interest in private partnership, which in turn acquired 33.3% interest in the One Bloor Street East, Toronto, Ontario real estate project. Throughout the course of investment, the Company’s capital contribution of $2,000,000 has been fully returned, and an additional profit distribution of $4,910,667 has been received to date. 7. INVENTORY PROPERTIES In January 2022, the Company, together with KOLT Investment Inc. (formerly Takol Real Estate Inc.) and two private real estate investors, formed a joint operation which acquired an industrial complex located at 67-69 Westmore Drive, Etobicoke, Ontario. The purchase price was $23,425,000 plus customary closing costs, funded by a $17,568,750 mortgage and --- $5,856,250 in equity contributions. The joint operation intends to renovate, change to condominium title and sell units in the complex. Urbanfund holds a 40% interest in this joint operation. As at September 30, 2025, a total of 28 commercial units were sold for sales proceeds of $15,623,884. To date, the Company’s capital contribution of $3,120,000 has been fully returned, and an additional profit distribution of $3,713,399 has been received, including $800,000 that was received subsequent to the quarter end (note 21). As at September 30, 2025, there are 4 unsold commercial units remaining (December 31, 2024 – 8 unsold commercial units). Three months ended September 30, Highfield Bellbrook Mic Mac 1040 LP Esna Park LP 2025 Total Revenue 4,275,597 $ 721,875 $ 484,481 $ 510,827 $ 1,790,827 $ 7,783,607 $ Operating expenses (2,094,002) (294,898) (180,471) (107,093) (111,428) (2,787,892) Interest expense (574,666) (135,139) (56,526) (123,353) (49,243) (938,927) Fair value adjustment on income properties 4,733,448 (36,473) 507,878 - - 5,204,853 Net income 6,340,377 $ 255,365 $ 755,362 $ 280,381 $ 1,630,156 $ 9,261,641 $ Income from equity accounted investments 1,268,075 $ 51,073 $ 151,072 $ 79,488 $ 250,718 $ 1,800,427 $ . Three months ended September 30, Highfield Bellbrook Mic Mac 1040 LP Esna Park LP 2024 Total Revenue 3,972,000 $ 702,000 $ 455,000 $ 251,000 $ 4,821,000 $ 10,201,000 $ Operating expenses (1,869,000) (266,000) (144,000) (144,800) (3,401,438) (5,825,238) Interest expense (564,000) (128,000) (46,000) (157,000) (490,000) (1,385,000) Fair value adjustment on income properties (459,000) 269,000 483,000 - - 293,000 Net income (loss) 1,080,000 $ 577,000 $ 748,000 $ (50,800) $ 929,563 $ 3,283,763 $ Income (loss) from equity accounted investments 213,000 $ 116,000 $ 149,000 $ (14,896) $ 142,644 $ 605,748 $ Nine months ended September 30, Highfield Bellbrook Mic Mac 1040 LP Esna Park LP 2025 Total Revenue 12,599,496 $ 2,172,384 $ 1,427,548 $ 1,954,919 $ 5,058,440 $ 23,212,787 $ Operating expenses (6,553,094) (951,656) (589,744) (383,275) $ (691,943) (9,169,712) Interest expense (1,722,425) (409,727) (172,407) (390,185) $ (623,184) (3,317,928) Fair value adjustment on income properties 3,612,929 442,753 1,795,876 - - 5,851,558 Net income 7,936,906 $ 1,253,754 $ 2,461,273 $ 1,181,459 $ 3,743,313 $ 16,576,705 $ Income from equity accounted investments 1,587,381 $ 250,751 $ 492,255 $ 334,944 $ 575,722 $ 3,241,052 $ Nine months ended September 30, Highfield Bellbrook Mic Mac 1040 LP Esna Park LP 2024 Total Revenue 11,777,000 $ 2,079,000 $ 1,333,000 $ 8,739,000 $ 5,833,000 $ 29,761,000 $ Operating expenses (5,989,000) (874,000) (563,000) (6,151,560) (3,710,119) (17,287,679) Interest expense (1,743,000) (405,000) (159,000) (513,000) (1,377,000) (4,197,000) Fair value adjustment on income properties 202,000 653,000 825,000 - - 1,680,000 Net income 4,247,000 $ 1,453,000 $ 1,436,000 $ 2,074,440 $ 745,881 $ 9,956,321 $ Income from equity accounted investments 849,000 $ 291,000 $ 287,000 $ 588,104 $ 114,645 $ 2,129,748 $ URBANFUND CORP. NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THREE AND NINE MONTHS ENDED SEPTEMBER 30 2025 AND 2024 (In Canadian dollars) (Unaudited) 11 URBANFUND CORP. INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, THIRD QUARTER 2025 The following table shows the changes in the aggregate carrying value of Urbanfund’s inventory property: 8. RECEIVABLES AND OTHER ASSETS The following table details Urbanf --- und’s receivables and other assets: 9. MORTGAGES PAYABLE Mortgages payable are secured by investment properties and bear interest at various fixed and floating rates with monthly blended principal and interest payments (“MBPI”). (i) Quebec Headway assumed mortgages payable are made up of 8 mortgages outstanding on the income properties of Quebec Headway. The weighted average remaining life is 1.33 years (December 31, 2024 – 2.08 years) and bears a weighted average interest rate of 2.68% (December 31, 2024 - 2.69%). (ii) Lands on 51,55,59 Scott Street and 59,61,65 Weber Street were amalgamated to develop a residential building subsequently renamed as 63 Scott Street. (iii) The Company's policy is to provide financial guarantee only for subsidiaries' liabilities. As at September 30, 2025 and December 31, 2024, the Company has issued guarantees to certain banks in respect of mortgages granted to certain subsidiaries. (iv) The Company has signed a short-term extension, which extends the maturity date to December 1, 2025 bearing interest at Cost of Funds + 1.85%. As at September 30 2025, the interest rate was 4.76%. As at, September 30, 2025 December 31, 2024 Balance, beginning of period 3,015,997 $ 11,048,071 $ Development expenditures 249,791 891,302 Disposition of inventory properties (1,708,610) (8,923,376) Balance, end of period 1,557,178 $ 3,015,997 $ As at Note September 30, 2025 December 31, 2024 Accounts receivable 580,483 $ 734,654 $ Refundable deposits 50,000 50,000 Amounts receivable 13 128,087 128,087 Prepaid expenses 312,356 124,070 1,070,926 $ 1,036,811 $ As at September 30, 2025 December 31, 2024 Current 10,348,609 $ 10,298,794 $ Non-current 43,988,496 45,207,297 54,337,105 $ 55,506,091 $ As at September 30, 2025 December 31, 2024 Property name(s) Payment Terms Maturity Date Interest Rate Quebec Headw ay, Assumed Mortgages (iii) MBPI (i) (i) 5,144,747 $ 5,327,575 $ 476-480 Wonderland Road (iv) MBPI Dec 31, 2023 (iv) 4.35% 716,797 772,796 3080-3094 Don Mills & 200 Van Horne MBPI Dec 1, 2025 4.76% (v) 8,119,502 8,415,118 305 North Front Centre MBPI Feb 24, 2028 5.55% 9,479,789 9,637,731 Quebec Headw ay, Vendor Take Back MBPI June 1, 2028 5.50% 1,522,983 1,640,714 63 Scott Street (ii), (iii) MBPI Mar 1, 2031 2.65% 29,409,644 29,780,200 Mortgages payable 54,393,462 $ 55,574,134 $ Less: Unamortized mortgage financing costs (56,357) (68,043) 54,337,105 $ 55,506,091 $ URBANFUND CORP. NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THREE AND NINE MONTHS ENDED SEPTEMBER 30 2025 AND 2024 (In Canadian dollars) (Unaudited) 12 URBANFUND CORP. INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, THIRD QUARTER 2025 Minimum principal payments over the following years are as follows: 10. EQUITY Authorized 20,000,000 First preferred, Series A shares, non-voting, non-participating, each share is convertible to one common share for no additional consideration unless, at the date of conversion, the aggregate number of common shares held by the directors and officers of Urbanfund, and related parties to such individuals, would exceed 80% of the issued and outstanding common shares, in which case the shares cannot be converted. Unlimited First preferred shares, issuable in series with rights, privileges, restrictions, and conditions determined by the directors and officers of Urbanfund at the time of issuance. Unlimited Second preferred shares, issuable in series with rights, privileges, restrictions, and conditions determined by t --- he directors and officers of Urbanfund at the time of issuance. Unlimited Common shares. Basic and diluted income per share Basic and diluted income per share has been calculated as follows: (i) First preferred, Series A shares 11. DIVIDENDS PAID AND DIVIDEND REINVESTMENT PLAN On June 17, 2015, Urbanfund adopted a dividend policy (the “Dividend Policy”) and implemented a dividend reinvestment plan for the holders of common shares and Series A preferred shares (collectively, the “DRIP”). The DRIP is a voluntary program permitting holders of Series A, first preferred shares and common shares to automatically and without charge, reinvest dividends into additional common shares at a specified discount to the volume-weighted average market price calculated as the date of payment. On June 22, 2021, Urbanfund amended its Dividend Policy to increase the annual dividend rate to $0.05 per common share and $0.05 per Series A preferred share, or 67% increase from the previous year, payable quarterly in the amount of $0.0125 per common share and Series A preferred share. For the nine months ended September 30, 2025, Urbanfund issued 153,894 common shares valued at $119,038 to participants enrolled in the DRIP (September 30 2024 – 751,168 and $608,075). 2025 9,118,205 $ 2026 5,395,178 2027 1,002,095 2028 11,161,970 2029 550,758 Thereafter 27,165,256 54,393,462 Unamortized mortgage financing costs (56,357) 54,337,105 $ 2025 2024 2025 2024 Basic income per share Net income attributable to shareholders 2,223,823 $ 1,516,042 $ 4,532,376 $ 4,812,255 $ Weighted average common shares outstanding 53,749,042 53,509,927 53,697,449 53,243,697 Basic income per share 0.041 $ 0.028 $ 0.084 $ 0.090 $ Diluted income per share Net income attributable to shareholders 2,223,823 $ 1,516,042 $ 4,532,376 $ 4,812,255 $ Weighted average common shares outstanding 53,749,042 53,509,927 53,697,449 53,243,697 Dilutive effect of preferred shares (i) 7,425,000 7,425,000 7,425,000 7,425,000 Weighted average common shares outstanding, diluted 61,174,042 60,934,927 61,122,449 60,668,697 Diluted income per share 0.036 $ 0.025 $ 0.074 $ 0.079 $ Three months ended September 30, Nine months ended September 30, URBANFUND CORP. NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THREE AND NINE MONTHS ENDED SEPTEMBER 30 2025 AND 2024 (In Canadian dollars) (Unaudited) 13 URBANFUND CORP. INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, THIRD QUARTER 2025 For the nine months ended September 30, 2025, total dividends paid in cash during the period was $2,171,420 (September 30, 2024 - $1,659,056). As at September 30, 2025, dividends payable was $764,773 (December 31, 2024 - $762,849). 12. REVENUE Rental revenue Revenue from Contracts with Customers Revenue from contracts with customers include inventory property sales, and common area maintenance recoveries and parking revenue that are included in rental revenue: 13. RELATED PARTY BALANCES AND TRANSACTIONS The Company engages Westdale Construction Co. Limited (“Westdale”), a controlling entity and a related party, to perform management services. Ronald Kimel, Chairman of Urbanfund, is also a shareholder and Director of Westdale. Mitchell Cohen, President and Chief Executive Officer and a director of Urbanfund, is also an officer of Westdale. Included in amounts receivable within receivables and other assets as at September 30, 2025 (note 8) is $128,087 (December 31, 2024 - $128,087) of amounts due from Westdale. On March 27, 20 --- 24, the Company issued a $6,000,000 loan to Westdale bearing interest at 8.2%. This receivable, along with accrued interest, was repaid in full on April 3, 2024. On May 7, 2024, the Company issued a $6,000,000 loan to Westdale bearing interest at 8.2%, the loan was repaid in full with interest on June 13, 2024. On October 30, 2024, the Company issued a $5,000,000 loan to Westdale bearing interest at 8%, the loan was repaid in full with interest on December 17, 2024. On April 29, 2025, the Company issued a $3,000,000 loan to Westdale bearing interest at 5.95%, the loan was repaid in full with interest on June 30, 2025. For the nine months ended September 30, 2025, Urbanfund issued dividends of $1,808,360 (September 30, 2024 - $1,430,213) to Westdale. Urbanfund is also contracted to Westdale for property management fees and cost reimbursements as follows: 2025 2024 2025 2024 Base rent 1,828,054 $ 1,837,267 $ 5,459,079 $ 5,551,789 $ Realty tax recoveries 111,650 107,637 335,247 322,865 Common area maintenance recoveries 95,181 88,773 321,407 344,175 Percentage rent 1,701 4,885 120,657 116,618 Miscellaneous revenue 117,771 51,498 233,683 204,887 2,154,357 $ 2,090,060 $ 6,470,073 $ 6,540,334 $ Three months ended September 30, Nine months ended September 30, 2025 2024 2025 2024 Inventory property sales 942,620 $ 3,472,000 $ 2,257,660 $ 12,265,024 $ Common area maintenance recoveries 95,181 88,773 321,407 344,175 Parking revenue 25,987 25,693 79,504 77,997 1,063,788 $ 3,586,466 $ 2,658,571 $ 12,687,196 $ Three months ended September 30, Nine months ended September 30, As at September 30, 2025 December 31, 2024 Property management fees, included in: Accounts payable and accrued liabilities 21,924 $ - $ Management cost reimbursements, included in: Accounts payable and accrued liabilities 49,766 $ 52,985 $ URBANFUND CORP. NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THREE AND NINE MONTHS ENDED SEPTEMBER 30 2025 AND 2024 (In Canadian dollars) (Unaudited) 14 URBANFUND CORP. INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, THIRD QUARTER 2025 There has been no compensation paid to key management personnel during the nine months ended September 30, 2025 and 2024. 14. FAIR VALUE MEASUREMENT The fair value hierarchy of assets and liabilities measured at fair value on a recurring basis in the consolidated balance sheets are as follows: For assets measured at fair value as at September 30, 2025 and December 31, 2024, there were no transfers between Level 1, Level 2 and Level 3. Receivables and other assets, tenant deposits, accounts payable and accrued liabilities The carrying value of receivables and other assets, tenant deposits, accounts payable and accrued liabilities are considered to be representative of their fair values due to their short-term nature. Mortgages payable The fair values of the mortgages payable are Level 2 and approximate $53,376,685 (December 31, 2024 - $54,499,884) based on the interest rates obtainable for similar financial instruments in the current marketplace. 15. RISK MANAGEMENT Financial risk management objectives and policies The Company’s activity exposes it to a variety of financial risks, including interest rate risk, credit risk and liquidity risk. These financial risks are managed by the Company under policies approved by the Board of Directors. The principal financial risks are actively managed by the Company’s finance department, within Board approved policies and guidelines. On an ongoing bas --- is, the finance department actively monitors market conditions with a view to minimizing the exposure of the Company to changing market factors, while at the same time limiting the funding costs of the Company. Interest rate risk Urbanfund is exposed to interest rate risks on its borrowings and could be adversely affected if it were unable to obtain cost-effective financing. The Company’s debt is financed at fixed and variable rates with maturities staggered over a number of years, thereby mitigating its exposure to changes in interest rates and financing risks. A change in the interest rate by 1% would result in an increase or decrease in the fair value of mortgages by $233,224 (December 31, 2024 - $305,803). Credit risk Credit risk arises from the possibility that Urbanfund’s tenants may experience financial difficulty and be unable to fulfil their lease commitments. The Company mitigates this risk of credit loss by diversifying its tenant mix and by limiting its exposure to any one tenant. In addition, the Company obtains security deposits from tenants. The Company mitigates its exposure to credit loss by placing its cash and short-term investments with major financial institutions. 2025 2024 2025 2024 Property management fees, included in: Rental expenses 30,759 $ 30,040 $ 95,066 $ 92,878 $ Income from equity accounted investments, net 37,332 39,983 110,675 104,813 Management cost reimbursements, included in: Rental expenses 61,554 $ 56,677 $ 187,242 $ 177,286 $ Income from equity accounted investments, net 75,323 67,085 220,048 200,430 Three months ended September 30, Nine months ended September 30, As at Note Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets measured at fair value: Income properties 4 - $ - $ 109,476,000 $ - $ - $ 108,843,000 $ Total assets measured at fair value - $ - $ 109,476,000 $ - $ - $ 108,843,000 $ September 30, 2025 December 31, 2024 URBANFUND CORP. NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THREE AND NINE MONTHS ENDED SEPTEMBER 30 2025 AND 2024 (In Canadian dollars) (Unaudited) 15 URBANFUND CORP. INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, THIRD QUARTER 2025 Liquidity risk Liquidity risk is the risk that the Company will encounter difficulties in meeting its financial liability obligations as they become due. The Company has a planning and budgeting process in place to help determine the funds required to support the Company's normal operating requirements on an ongoing basis. Since inception, the Company has financed its cash requirements primarily through issuances of securities, short-term borrowings and issuances of long-term debt. The Company controls liquidity risk through management of working capital, cash flows and the availability and sourcing of financing. Financial liabilities are due as follows: 16. CAPITAL MANAGEMENT Urbanfund defines capital as its equity. The Company’s objective when managing capital is: (i) to safeguard the ability to continue as a going concern, so that it can continue to provide returns to shareholders and benefits to other stakeholders; and (ii) to provide adequate return to shareholders by obtaining an appropriate amount of debt commensurate with the level of risk, to reduce after-tax cost of capital. The Company sets the amount of capital in proportion to the risk. Urbanfund manages capital structure and makes adjustments in light of changes in economic conditions and the characteristic risk of underlying assets. In order to maint --- ain or adjust capital structure, the Company may repurchase shares, return capital to shareholders, issue new shares or sell assets to reduce debt. Urbanfund’s objective is met by retaining adequate liquidity to provide for the possibility that cash flows from assets will not be sufficient to meet future cash flow requirements. There have been no changes to the Company’s capital management policies during the nine months ended September 30, 2025 and 2024. 17. SEGMENTED INFORMATION Urbanfund, primarily owns, develops, manages and operates residential and commercial sector properties in Canada. In measuring its performance of its residential and commercial properties, the Company does not distinguish or group its operations on a geographical or any other basis and, accordingly has a single reportable operating segment. Management has applied judgment by aggregating its operating segments into one single reportable segment for disclosure purposes. Such judgment considers the nature of property operations, tenant mix and an expectation that operating segments within a reportable segment have similar long-term economic characteristics. The Company’s Chief Executive Officer is the chief operating decision maker and regularly reviews Urbanfund’s operations and performance on a consolidated basis. Urbanfund does not have any single major tenant or any significant groups of tenants. 18. SUPPLEMENTAL CASH FLOW INFORMATION Note < 1 year 1-2 years 3-5 years >5 years Accounts payable and accrued liabilities 1,257,378 $ - $ - $ - $ Mortgages payable 9 9,118,205 5,395,178 12,714,823 27,165,256 2025 2024 2025 2024 Interest received 87,493 $ 128,061 $ 242,827 $ 314,733 $ Interest paid (487,702) (448,748) (1,448,234) (1,538,853) Dividends paid: Dividends declared during the period (723,926) $ (723,757) (2,171,659) $ (1,821,946) Dividends declared in the prior year, paid in the current period (724,044) (536,254) (723,687) (560,867) Dividends declared in the current year, paid in next period 723,926 723,757 723,926 723,757 Dividends paid (724,044) $ (536,254) $ (2,171,420) $ (1,659,056) $ Nine months ended September 30, Three months ended September 30, URBANFUND CORP. NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THREE AND NINE MONTHS ENDED SEPTEMBER 30 2025 AND 2024 (In Canadian dollars) (Unaudited) 16 URBANFUND CORP. INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, THIRD QUARTER 2025 The following provides a reconciliation of cash flows arising from financing activities relating to mortgages payable: 19. ADJUSTMENTS FOR OTHER NON-CASH WORKING CAPITAL ITEMS 20. CONTINGENCIES AND COMMITMENTS The Company may have various other contractual obligations in the normal course of operations with tenants, supplies and former employees. The Company is not contingently liable with respect to litigation, claims and environmental matters, including those that could result in mandatory damages or other relief. Any expected settlement of claims in excess of amounts recorded will be charged to the consolidated statements of income and comprehensive income as and when such determination is made. Management believes that adequate provisions have been recorded in the accounts where required. 21. SUBSEQUENT EVENTS On November 12, 2025, the Company entered into a commitment to refinance its property at 3080–3094 Don Mills Road and 200 Van Horne Avenue, Toronto for $16,293,116 at a fixed interest rate of 3.65% for five years. The refinancing proceeds wil --- l be used to repay the existing mortgage, with the remaining funds available for general corporate purposes. The transaction is expected to close on December 1, 2025. On November 12, 2025, the Company received a cash distribution of $800,000 from the sale of additional commercial units at 67-69 Westmore Drive, Etobicoke. On November 17, 2025, the Company received a cash distribution of $360,000 from the sale of additional commercial units at 270-330 Esna Park, Markham. 2025 2024 2025 2024 Balance, beginning of period 54,783,697 $ 56,671,252 $ 55,574,134 $ 65,194,379 $ Cash flows Repayments of mortgage principals from sale of inventory properties - (294,542) - (8,030,891) Repayments of mortgage principals (387,264) (383,643) (1,168,986) (1,144,139) Non-cash changes: Deferred financing costs (2,971) (16,183) (11,686) (42,465) Balance, end of period 54,393,462 $ 55,976,884 $ 54,393,462 $ 55,976,884 $ Nine months ended September 30, Three months ended September 30, 2025 2024 2025 2024 Receivables and other assets 933,664 $ (75,758) $ (34,115) $ 4,901,589 $ Accounts payable and accrued liabilities (167,165) (240,853) (57,070) (396,843) Income taxes 123,430 341,999 (1,074,570) 1,357,999 Tenant deposits 22,652 4,536 2,677 6,820 Deferred financing costs and other 87,493 128,061 242,827 314,733 Net change in other working capital items 1,000,074 $ 157,985 $ (920,251) $ 6,184,298 $ Nine months ended September 30, Three months ended September 30,