August 17, 2021

Parkit Enterprise Reports 2021 Second Quarter Results

Toronto, Ontario – ‎Parkit Enterprise Inc. (TSXV: PKT) (“Parkit” or the “Company“) reported the Company’s second quarter results. Steven Scott, Chair, commented:

“Parkit continues its transition to a focused industrial real estate platform and makes progress towards expanding existing properties.”

2021 Second Quarter Results and Recent Business Highlights

  • Revenues and net rental income. Revenues and net rental income continued to increase as we onboard and integrate additional investment properties. The investment properties revenue for the three months ended June 30, 2021 rose to $1,327,495 compared to nil for the three months July 31, 2020. Net rental income for the three months ended June 30, 2021 rose to $799,573, compared to nil for the three months ended July 31, 2020.
  • Significant liquidity position. Cash and cash equivalents were $82,382,652 for the quarter ended June 30, 2021, compared to $696,281 for the quarter ended July 31, 2020.
  • Parking operations stabilizing. Parkit’s parking joint ventures reported a profit of $2,400 for the 3 months ended June 30, 2021, compared to a loss of $359,780 for the 3 months ended July 31, 2020. This is the first quarter the results of the joint ventures which have been positive since the beginning of the pandemic. The Company expects the parking results to continue to improve as the effects of the pandemic diminish.
  • Loss for the period. The Company had a loss for the three months ended June 30, 2021 of $1,683,768, or a basic and diluted loss per share of $0.01, compared to a loss for the three months ended July 31, 2020 of $506,431, or a basic and diluted loss per share of $0.01. The loss for the quarter ended June 30, 2021 resulted from a one time charge for share-based compensation of $1,667,520, granted to various optionees, valued using the Black-Scholes model.
  • Funds from operations (“FFO”) increased for the period. Parkit had positive FFO, a non-IFRS measure‎, of $412,214 for the three months ended June 30, 2021, compared to a loss of $64,743 for the three months ended July 31, 2020.
  • Subsequent to the quarter, Parkit completed the acquisition of 415 Legget Dr, Ottawa, ON which has 194,661 square feet of gross leasable area on approximately 18 acres of land. The aggregate purchase price of $24,500,000 was satisfied with funds on hand.
  • Continued focus on environmental initiatives. Parkit joinedthe Canada Green Building Council, a leading not-for-profit national environmental organization. Parkit is increasingly prioritizing environmental investments in its capital allocation process, including the possible acquisition and development of green buildings as well as obtaining green certifications in its existing portfolio.

Financial Information

A summary of the results of operations for the three and six months ended June 30, 2021 and the three and six months ended July 31, 2020 are set forth below:

Select Financial Information
Three months ended
June 30, 2021
Three months ended July 31, 2020Six months
June 30, 2021
 Six months ended July 31, 2020
Operating results    
Revenue from investment properties$1,327,495$$1,922,191 $ –
Net rental income$799,573$$1,161,846 $ –
Share of profit (loss) – equity-accounted investees$2,400$(359,780)$(313,455) $(682,707)
Net loss$(1,683,768)$(506,431)$(3,510,000) $(880,814)
Net loss per share$(0.01)$(0.01)$(0.02) $(0.03)
Funds from Operations$412,214$(64,743)$212,659 $(216,243)
FFO per share$0.00$(0.00)$0.00 $ (0.01)
Liquidity and Leverage    
Cash$82,382,652$696,281$82,382,652 $ 696,281

Operational Highlights

Parkit continues to execute on its operational objectives:

  • Leasing at elevated rental spreads. Tenants have renewed at market rental rates, >40% over the prior rental rates.
  • Low vacancies. Parkit only has vacancies in its development properties and does not have any current vacancy at its investment properties.
  • Strong rent collections. Parkit’s rent collections remain resilient through the pandemic as the Company increased its collections for the three months and six months ended June 30, 2021 up to 99% and 98%, respectively.

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.

Further Information

For comprehensive disclosure of Parkit’s performance for the three months and six months ended June 30, 2021 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 and six months ended June 30, 2021 filed on SEDAR at

Non-IFRS Financial Measures

Management uses both IFRS and non-IFRS Measures to assess the financial and operating performance of the Company’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:

  1. 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 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, and this is how the Company determines FFO. The Company believes that FFO can be a beneficial measure, when combined with primary IFRS measures, to assist in the evaluation of the Company’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 Company’s definition 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 TSXV (Symbol: PKT).

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

Investor Relations
Contact Number: 1-888-627-9881

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 press 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 press release contains forward-looking information in relation to: the Company’s strategy and focus regarding expanding existing properties and acquiring strategically located industrial properties with a focus on the ‎GTA+, Ottawa and Montreal; Parkit’s prioritizing environmental investments including green buildings and green certifications; and Parkit’s expectation that parking results will to continue to improve as the effects of the pandemic ‎diminish.‎ This forward-looking information reflects the Company’s current beliefs and is based on information currently ‎available to the Company and on assumptions the Company 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 the Company’s services and products; the Company’s continued ability to acquire properties that are in-line with its strategic focus, including prioritizing environmental investments; the Company’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; and the Company’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 risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in 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 third party or regulatory approvals; the actual ‎results of the Company’s future operations; competition; changes in legislation, including environmental ‎legislation, affecting the Company; 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 and social ‎distancing, 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 the Company 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 the Company offers; and a deterioration of ‎financial markets that could limit the Company’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 the Company’s disclosure documents on the SEDAR website at ‎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. 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 press release is expressly qualified by this cautionary statement. The forward-looking information contained in this press release represents the expectations of Parkit as of the date of this press release and, accordingly, are 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.