Report on Financial Results for the Three and Six Months Ended June 30, 2025

Executive Summary

• Urbanfund Corp. released its Consolidated Financial Statements and Management’s Discussion & Analysis (MD&A) for the three and six months ended June 30, 2025.
• The company reported a decline in net income and Funds from Operations (FFO) for the six-month period compared to the same period in 2024, driven by lower fair value adjustments on investment properties and reduced sales proceeds from specific commercial assets.
• Operational highlights include the sale of 17 commercial units across three key properties (1040 Martin Grove Road, 270-330 Esna Park Drive, and 67-69 Westmore Drive) during the first half of 2025.

Key Details

• Financial Performance (Six Months Ended June 30, 2025):
  • Net Income: $2,347,821 (down from $3,145,223 in 2024).
  • Rental Revenue: $4,315,716 (down from $4,450,274 in 2024).
  • Income Before Taxes: $2,975,821 (down from $4,449,223 in 2024).
  • Funds from Operations (FFO): $2,737,021 (down from $4,827,283 in 2024).
  • Adjusted Cash Flows from Operations (ACFO): $(507,523) (down from $6,436,512 in 2024).
  • Basic Income Per Share: $0.043 (down from $0.062 in 2024).
  • Diluted Income Per Share: $0.038 (down from $0.054 in 2024).
• Financial Position (As of June 30, 2025):
  • Total Assets: $150,067,342.
  • Total Investment Properties: $106,086,000.
  • Total Mortgages Payable: $56,606,543.
  • Debt to Total Assets: 38%.
  • Debt to Adjusted EBITDA: 4.81.
  • Interest Coverage Ratio: 4.28.
  • Debt Service Ratio: 2.34.
• Operational Highlights (Property Sales & Returns):
  • 1040 Martin Grove Road, Toronto: Sold 3 commercial units for $1,255,622 (vs. 5 units for $2,243,194 in 2024). Total return of capital received to date: $1,465,603.
  • 270-330 Esna Park Drive, Markham: Sold 12 commercial units for $2,164,359 (vs. Nil units in 2024).
  • 67-69 Westmore Drive, Etobicoke: Sold 2 commercial units for $1,315,040 (vs. 15 units for $8,793,024 in 2024). Capital contribution of $3,120,000 fully returned; additional profit distribution of $2,033,399 received (including $833,880 received post-quarter).
• Dividend Reinvestment Plan (DRIP):
  • Issued 103,406 common shares valued at $78,940 to DRIP participants for the six months ended June 30, 2025 (vs. 459,979 shares valued at $385,723 in 2024).
  • Average participant discount rate was 5.95% (vs. 31.31% in 2024).
• Liquidity:
  • Cash: $8,818,331.
  • Liquidity (Cash + Accounts Receivable): $9,067,888.
  • Liquidity as a percentage of debt: 16.6% (down from 22.8% at Dec 31, 2024).