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Urbanfund Corp. Reports Financial Results for the Year Ended December 31, 2012

TORONTO, ONTARIO -- (Marketwired) -- 04/30/13 -- Mitchell Cohen, President and Chief Executive Officer of Urbanfund Corp. (TSX VENTURE: UFC) (the "Company"), confirmed today that the Company has filed financial results for the year ended December 31, 2012 (the "Consolidated Financial Statements").

For the year ended December 31, 2012 the Company reported earnings before income taxes of $3,287,926 on revenue of $3,414,495 compared to earnings before income taxes of $4,400,968 on revenue of $3,642,924 for the corresponding year in 2011. The decrease in earnings was primarily related to a loss on the disposal of the Richmond Property in August 2012.

Rental income decreased to $3,414,495 for the period ended December 31, 2012 from $3,642,924 for the corresponding period ended 2011. This was a result of receiving only 10 months in revenue from the Richmond Property prior to its sale. Although financing costs decreased, administrative costs for the year ended December 31, 2012 was $623,519 as compared to $313,585 for the corresponding period in 2011. This increase was directly related to payment of the Company's share of on-site maintenance salaries at the Richmond Property, which accumulated over a 2 year period and was required to be paid on closing of the sale of the Richmond Property.

Loss on sale of $426,524 represents the Company's share of the closing costs associated with the disposal of the Richmond Property. Of this amount, $330,169 represents a notional discharge fee of a mortgage which bore interest at 5.5% and was due in 2016 (see Note 9 of the Consolidated Financial Statements).

Rental expenses for the year ended December 31, 2012 decreased to $1,218,799 compared with $1,333,962 for the corresponding period in 2011. The decrease was attributed to the disposal of the Richmond Property in the third quarter of 2012 and a concentration on reducing general repairs and maintenance expenditures at all properties.

Funds from operations ("FFO") for the years ended December 31, 2012 and 2011 are as follows:

                                           Year Ended            Year Ended
                                     December 31, 2012    December 31, 2011

Net Earnings (Loss) Before Income
 Taxes                                      $3,287,926           $4,400,968
Adjust for:
Interest Income                               ($28,038)            ($45,802)
Dividend Income                               ($34,611)            ($53,481)
Realized Gain on Marketable
 Securities                                  ($122,584)           ($131,169)
Unrealized Gain on Marketable
 Securities                                  ($240,925)            ($18,071)
Loss on Sale of Property                      $426,524                    -
Fair Value Adjustment on
 Investment Property                       ($2,687,485)         ($3,195,680)

Funds From Operations (FFO)                   $600,807             $956,765

For the year ended December 31, 2012, the Company reported a decrease in FFO to $600,807 compared with $956,765 for the period ended December 31, 2011. This decrease was caused primarily by increase in the unrealized gain on marketable securities and the loss on sale of the Richmond Property.

FFO is a non-GAAP performance measure used by the Company to improve the understanding of operating results for the investing public. FFO is not a measure recognized under Canadian generally accepted accounting principles ("GAAP") and does not have a standardized meaning prescribed by GAAP. Therefore, FFO may not be comparable to similar measures presented by other issuers. However, the Company presents its FFO in accordance with the Real Property Association of Canada (REALpac) White Paper on Funds from Operations published on November 30, 2004 and revised in February, 2007.

FFO, or any other non-GAAP 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 GAAP.

As of December 31, 2012, the Company had cash on hand in the amount of $3,763,406 ($920,972 as at December 31, 2011), marketable securities of $1,053,111 ($682,650 as at December 31, 2011) and short term investments in the amount of $3,617,951 ($3,582,032 as at December 31, 2011).

As at December 31, 2012, the Company had mortgages payable in the amount of $14,133,905 which was comprised of: (i) $8,220,956 representing a mortgage payable for the Don Mills Property; and (ii) $5,912,949 representing a mortgage payable for the Belleville Property and London Property.

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


                                                                 Net Income
                                                Net Income       Per Share
Quarter ended                      Revenue          (Loss)       (Basic)(1)
December 31, 2012                 $779,940      $1,384,925            0.027
September 31, 2012                $864,745       ($104,131)          (0.010)
June 30, 2012                     $949,591      $1,124,373            0.030
March 31, 2012                    $820,219        $477,376            0.011
December 31, 2011                 $948,417         $90,986            0.002
September, 30, 2011               $869,769        $197,470            0.005
June 30, 2011                     $924,632        $152,283            0.004
March 31, 2011                    $900,106      $3,271,235            0.075

For comprehensive disclosure of the Company's performance for the period ended December 31, 2012 and its financial position as at such date, reference should be made to: (i) the Consolidated Financial Statements and the notes thereto; and (ii) management's discussion and analysis of financial condition at, and results of operations for the period ended December 31, 2012, which have been filed with applicable securities regulators on SEDAR at

Urbanfund Corp. is a Toronto-based real estate development and operating company. 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 Belleville, London and Toronto, Ontario and in Quebec City and Montreal, Quebec. The Company's strategy going forward remains committed to seek accretive real estate or real estate-related opportunities.


This press release contains certain forward-looking statements, which reflect Management's expectations regarding the Company's growth, results of operations, performance, business prospects and opportunities. Statements about the Company's future plans and intentions, results, levels of activity, cash flow from operations, performance, goals or achievements 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 Management's Discussion and Analysis dated April 30, 2013.

Neither TSX-V nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this release.

Urbanfund Corp.
Mitchell Cohen
President & CEO
(416) 703-1877 x1025

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