Mr. Mitchell Cohen reports

REPORT ON FINANCIAL RESULTS FOR THE THREE MONTHS ENDED MARCH 31, 2023

Urbanfund Corp. has filed its financial statements for the three months ended March 31, 2023, and corresponding management's discussion and analysis (MD&A).

Business overview and strategy

Business overview

Urbanfund is an incorporated entity listed on the TSX Venture Exchange 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, Ont., Quebec City and Montreal, Que., and Dartmouth, N.S.

Operational highlights

Part of Urbanfund's strength is its ability to attract partners with proven records with both residential and commercial development expertise. Urbanfund continues to build alliances with its strategic partners:

• Weber Investments LP -- The general partners of Weber LP issued a return of capital to the company in the amount of $1,343,333, as a result of excess cash flow generated from the operations at 63 Scott St.
• 1040 Martin Grove -- Urbanfund invested a total of $1.87-million into a limited partnership that holds 50-per-cent interest in the purchase of an industrial complex located on 1040 Martin Grove Rd., Toronto, Ont.
• One Bloor project -- In January, 2023, Urbanfund received distributions relating to profit on sales of One Bloor Street of $128,000. Total profits received as of the date of this MD&A (management's discussion and analysis) were $4,744,667.
• Steeles Avenue East -- In December, 2022, Urbanfund, along with its joint venture partners, completed the sale of 36 units within the industrial complex and received a total distribution of $7.25-million, which included a return of capital of $2,375,000.
• 67-69 Westmore -- In January, 2022, Urbanfund formed a joint venture Takol 67-69 Westmore Inc., which acquired an industrial complex located at 67-69 Westmore Dr., Etobicoke, Ont. The joint venture intends to renovate, change to condominium title and sell units in the complex. Urbanfund holds a 40-per-cent interest and its joint venture partner, Takol Real Estate Inc. and two private investors hold the remainder. The purchase price was $23,425,000 plus customary closing costs, financed by a $17,568,750 mortgage and $5,856,250 in equity contributions.

Liquidity and capital resources

Urbanfund expects to meet all of its obligations, including dividends to shareholders, property maintenance, capital expenditures and other commitments as they become due. The company has various financing sources to finance future acquisitions and continues to finance working capital needs from cash flows generated from operating activities. Cash flows from operating activities are dependent on the occupancy levels of our income properties.

The attached table presents liquidity as a percentage of debt.

The company's liquidity will be impacted by contractual commitments as outlined in Urbanfund's MD&A. Urbanfund's debt obligations can be financed by the company's cash and cash equivalents, marketable securities, rental revenue from property operations.

Dividend reinvestment plan (DRIP)

On June 17, 2015, the company adopted a dividend policy and implemented dividend reinvestment plans for the company's common and preferred shareholders. The DRIP is a voluntary program permitting holders of the company's common and preferred shares to automatically, and without charge, reinvest quarterly dividends to acquire additional common shares at a discount to the volume-weighted average market price as of the date of payment.

On June 22, 2021, Urbanfund amended its dividend policy to increase the annual dividend rate to five cents per common share and five cents per Series A preferred share, or a 67-per-cent increase from the previous year, payable quarterly in the amount of 1.25 cents per common share and Series A preferred share.

For the three months ended March 31, 2023, Urbanfund issued 270,347 common shares valued at $205,924 to participants enrolled in the DRIP (March 31, 2022 -- 174,167 and $192,473). The average participant rate of the DRIP was 32.03 per cent (Dec. 31, 2022 -- 31.44 per cent).

The record date for dividends is typically the last business day of each quarter and payment is approximately two weeks from the record date. The attached table summarizes the company's quarterly distributions as at March 31, 2023.

We seek Safe Harbor.