Parkit Enterprise Reports 2022 Q1 Results; and Completes Acquisition of Ottawa Property

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Toronto, Ontario--(Newsfile Corp. - May 25, 2022) - Parkit Enterprise Inc. (TSXV: PKT) ("Parkit" or the "Corporation"), today reported the Corporation's first quarter 2022 results. Steve Scott, Chair of Parkit, commented:

"Year to date, Parkit firmed up its capital position with the addition of $55 million in financing, advanced its leasing activity by signing two new leases, and by completing $57.3 million in accretive acquisitions. Parkit continues to build the foundation for growth by executing on operations and by being disciplined on acquisitions. Looking ahead, with the leasing activity and acquisitions, we expect to increase our revenue, net rental income and FFO, through maximizing occupancy and delivering quality property and asset management."

2022 FIRST QUARTER RESULTS AND RECENT BUSINESS HIGHLIGHTS

  • Revenues and net rental income. Revenues and net rental income increased as we onboarded and integrated additional investment properties. Investment properties revenue for the three months ended March 31, 2022 rose to $2,110,455, compared to $594,696 for the three months ended March 31, 2021. Net rental income ("NRI"), increased to $868,035 for the three months ended March 31, 2022, compared to $362,273 for the three months ended March 31, 2021. The increase in revenue and NRI from investment properties is due to the acquisitions made by Parkit.

  • Significant liquidity position. Parkit entered into a three-year $55,000,000 credit facility to fund acquisitions and development. At the end of Q1, no amount has been drawn from facility.

  • Change in cash flow. The cash flows from operating activities increased by $897,823 for the three months ended March 31, 2022 compared to an increase of $360,570 for the three months ended March 31, 2021. Parkit used net cash of $16,483,481 in investing activities for the three months ended March 31, 2022, compared to cash used of $38,141,402 from investing activities for the three months ended March 31, 2021. Parkit used net cash of $414,973 in financing activities for the three months ended March 31, 2022, compared to net cash provided of $111,065,297 for the three months ended March 31, 2021.

  • Funds from operations ("FFO") increased for the period. The FFO, a Non-IFRS Measure, for the three months ended March 31, 2022 increased to $358,325, compared to a loss of $199,238 for the three months ended March 31, 2021. The increase in FFO comes from the acquisition of investment properties as Parkit shifted its strategy to focus on industrial real estate.

  • Loss for the period. The net loss for the three months ended March 31, 2022 was $493,271, compared to a net loss of $1,826,232 for the three months ended March 31, 2021. The change is a result of net rental income offset by increases to general and administration expenses, depreciation, finance costs, and a profit or loss from equity accounted investees.

  • Acquisitions. To date, including the below, Parkit has purchased five properties for $57,280,000.

  • Parking results continue to improve as the effects of the pandemic diminish. Parkit's parking joint ventures reported income of $39,412 for the 3 months ended March 31, 2022, compared to a loss of $315,855 for the 3 months ended March 31, 2021.

  • Continued focus on environmental, social and governance ("ESG") initiatives. Parkit continued its focus on ESG initiatives by prioritizing environmental investments in its development plans and reviewing its corporate policies.

Operational Highlights
Parkit continues to execute on its operational objectives:

  • Leasing at elevated rental spreads. Tenants have renewed at market rental rates. Parkit has signed two new leases which substantially increases its in-place rents and weighted average lease term ("WALT").

  • Advancing its development. Parkit continues to advance its development properties to maximize property density.

  • Strong rent collections. Parkit's rent collections remain resilient through the pandemic with its collections for the three months ended March 31, 2022 being 100%.

Parkit is focused on continuing its shift into industrial real estate by growing its portfolio and maximizing cash flows from its investment properties, while stabilizing its parking operations.

ACQUISITION OF 1155 LOLA ST., OTTAWA, ONTARIO
Further to its April 25, 2022 and May 12, 2022 news releases, Parkit acquired 1155 Lola St., Ottawa, Ontario (the "Property") for an aggregate purchase price of $17,600,000, subject to customary adjustments (the "Acquisition"). The Property is approximately 62,400 square feet on 3.0 acres of land.

Purchase Price and Payment
The purchase price for the Acquisition is $17,600,000, subject to adjustments, and was satisfied through the issuance of the assumption of a mortgage of approximately $8,800,000 and the balance from funds on hand.

Iqbal Khan, CEO of Parkit, states, "This acquisition adds another high quality asset to Parkit's portfolio in Ottawa, Ontario. The property has a strong tenant base, will produce significant cash flow and has room for rental growth."

Further Information
For comprehensive disclosure of Parkit's performance for the three months ended March 31, 2022 and its financial position as at such date, please see Parkit's Condensed Consolidated Interim Financial Statements and Management's Discussion and Analysis for the three months ended March 31, 2022 filed on SEDAR at www.sedar.com.

Non-IFRS Measures
Management uses both IFRS and Non-IFRS Measures to assess the financial and operating performance of the Corporation's operations. These Non-IFRS Measures are not recognized measures under IFRS, do not have a standardized meaning under IFRS and are unlikely to be comparable to similar measures presented by other companies. The Non-IFRS Measures referenced in this news release include the following:

Funds from Operations ("FFO") - is a non-IFRS measure of operating performance as it focuses on cash flow from operating activities. REALPAC is the national industry association dedicated to advancing the long-term vitality of Canada's real property sector. REALPAC defines Funds From Operations (FFO) as net income (calculated in accordance with IFRS), adjusted for, among other things, depreciation, transaction costs, gains and losses from property dispositions, foreign exchange, as well as other non-cash items. The Corporation believes that FFO can be a beneficial measure, when combined with primary ‎IFRS measures, to assist in the evaluation of the Corporation's ability to generate cash and ‎evaluate its return on investments as it excludes the effects of real estate amortization and ‎gains and losses from the sale of real estate, all of which are based on historical cost ‎accounting and which may be of limited significance in evaluating current performance.‎

FFO should not be viewed as an alternative to, in isolation from, or superior to, net income or cash flow from operations, or results from Parkit's comprehensive operations, respectively, or other measures calculated in accordance with IFRS. FFO should not be interpreted as an indicator of cash generated from operating activities and is not indicative of cash available to fund operating expenditures, or for the payment of cash distributions. FFO is simply an additional measure of operating performance which highlight trends in Parkit's core business that may not otherwise be apparent when relying solely on IFRS financial measures. Parkit's management also uses these non-IFRS measures in order to facilitate operating performance comparisons from period to period and to prepare operating budgets. In addition, the Corporation's definitions of FFO may differ from that of other issuers.

About Parkit Enterprise Inc.
Parkit is an industrial real estate platform focused on the acquisition, growth and management of strategically located industrial properties across key markets in Canada, with a focus on the Greater Toronto Area+ ("GTA+"), Ottawa and Montreal, to complement its parking assets across the United States. Parkit's Common Shares are listed on TSX-V (Symbol: PKT).

For more information, please contact Mr. Carey Chow, Mr. Iqbal Khan or Mr. Steven Scott:

Investor Relations
Contact Number: 1-888-627-9881
Email: ir@parkitenterprise.com

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

Forward-Looking Information: This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein is forward-looking information. In particular, this news release contains forward-looking information in relation to: Parkit's expectations in respect of leasing activity and acquisitions, including expectations to increase its revenue, net ‎rental income and FFO, through maximizing occupancy and delivering quality property and asset ‎management; Parkit's expectations in respect of the Acquisition including the production of significant cash flow the room for rental ‎growth‎; Parkit's continued focus on ESG initiatives by prioritizing environmental investments; Partit's continuing advancement of its development properties by maximizing property density; and Parkit's strategy and focus regarding acquiring high-quality and strategically located industrial properties with a focus on the ‎GTA+, Ottawa and Montreal. This forward-looking information reflects Parkit's current beliefs and is based on information currently ‎available to Parkit and on assumptions Parkit believes are reasonable. These assumptions ‎include, but are not limited to: the level of activity in the industrial real estate ‎business and the economy generally; continued consumer interest in Parkit's services and products; Parkit's continued ability to ‎acquire properties that are in-line with its strategic focus, including prioritizing environmental investments; ‎Parkit's continuing ability to grow its portfolio of investment properties; Parkit's past results ‎continuing to be an indicator of future results; the diminishing effects of the COVID-19 pandemic in Canada, ‎the United States, and elsewhere; consumer interest in Parkit's services and products; and Parkit's continued response and ability to navigate the ‎COVID-19 pandemic being ‎consistent with, or better than, its ability and response to date‎. ‎Forward-looking information is subject to known and unknown risks and uncertainties that may cause the actual results, performance or developments to differ materially from those contained in or implied by such forward-looking information. These risks, uncertainties, and factors may include, but are not limited to: general business, economic, competitive, political and social uncertainties; general capital market conditions ‎and market prices for securities; delay or failure to receive board of directors, third party or regulatory approvals; the actual ‎results of Parkit's future operations; competition; changes in legislation, including environmental ‎legislation, affecting Parkit; the timing and availability of external financing on acceptable terms; ‎conclusions of economic evaluations and appraisals; lack of qualified, skilled labour or loss of key individuals; ‎risks related to the COVID-19 pandemic including various recommendations, orders and measures of ‎governmental authorities to try to limit the pandemic, including travel restrictions, border closures, non-‎essential business closures, service disruptions, quarantines, self-isolations, shelters-in-place, social ‎distancing and mandatory vaccination policies, disruptions to markets, economic activity, financing, supply chains and sales channels, and a ‎deterioration of general economic conditions including a possible national or global recession; and the impact ‎that the COVID-19 pandemic may have on Parkit which may include: a short-term delay in ‎payments from customers, an increase in accounts receivable and an increase of losses on accounts ‎receivable; decreased demand for the services that Parkit offers; and a deterioration of ‎financial markets that could limit Parkit's ability to obtain external financing. A description of ‎additional risk factors that may cause actual results to differ materially from forward-looking information can ‎be found in Parkit's disclosure documents on the SEDAR website at www.sedar.com. ‎Although Parkit has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Readers are cautioned that the foregoing list of risks, uncertainties and factors is not exhaustive. Accordingly, readers should not place undue reliance on forward-looking information. Readers are further cautioned not to place undue reliance on forward-looking information as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking information contained in this news release is expressly qualified by this cautionary statement. The forward-looking information contained in this news release represents the expectations of Parkit as of the date of this news release and, accordingly, is subject to change after such date. However, Parkit expressly disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities law.

The expectations to increase revenue, net rental income, FFO, cash flow and rental growth‎ contained in this news release may be considered a financial outlook as defined by applicable securities legislation. Such information and any other financial outlooks contained in this news release have been approved by management of the Corporation as of the date hereof. Such financial outlooks are provided for the purpose of presenting information about management's current expectations and goals relating to the future business of the Corporation. Readers are cautioned that reliance on such information may not be appropriate for other purposes.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/125352

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