November 15, 2021

Parkit Enterprise Reports 2021 Third Quarter Results

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

“Parkit has continued its transition into an industrial real estate platform as it grows its revenues and net rental income, advances its development properties, and continues to find accretive industrial asset acquisitions. Parkit has completed a total of $120 million of industrial assets acquisitions over the past 12 months and looks to continue this strength into the balance of 2021 and beyond.”

2021 Third 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 September 30, 2021 rose to $1,741,371 compared to nil for the three months ended October 31, 2020. Net rental income for the three months ended September 30, 2021 rose to $1,046,586, compared to nil for the three months ended September 30, 2020.
  • Significant liquidity position. Cash and cash equivalents were $56,305,690 for the quarter ended September 30, 2021, compared to $588,635 for the quarter ended October 31, 2020.
  • Parking operations continues to be impacted by COVID-19. Parkit’s parking joint ventures reported a small loss of $6,547 for the 3 months ended September 30, 2021, compared to a loss of $4,054,601 for the 3 months ended October 31, 2020. 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 September 30, 2021 of $678,310, or a basic and diluted loss per share of $0.00, compared to a loss for the three months ended October 31, 2020 of $4,356,008, or a basic and diluted loss per share of $0.12. The loss for the quarter ended September 30, 2021 resulted from one-time transaction costs incurred on acquisitions, depreciation (non-cash item) and financing costs offset by rising net rental income from its investment properties.
  • Funds from operations (“FFO”) increased for the period. Parkit had positive FFO, a non-IFRS measure‎, of $624,431 for the three months ended September 30, 2021, compared to a loss of $90,227 for the three months ended October 31, 2020.
  • Subsequent to the quarter, Parkit completed the acquisition oftwo industrial properties, a 74,447 square foot multi-tenanted industrial facility on 4.0 acres of land in Ottawa, Ontario and 2.4 acres of land in Toronto, Ontario that neighbours an existing property in Parkit’s portfolio.
  • 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.

Financial Information

A summary of the results of operations for the three and nine months ended September 30, 2021 and the three and nine months ended October 31, 2020 is set forth below:

Select Financial Information
Three months ended
September 30, 2021
Three months ended October 31, 2020Nine months
September 30, 2021
Nine months ended October 31, 2020
Operating results   
Revenue from investment properties$1,741,371$$3,663,562$ –
Net rental income$1,046,586$$2,208,432$ –
Share of profit (loss) – equity-accounted investees$(6,547)$(4,054,601)$(320,002)$ (4,737,308)
Net loss$(678,310)$(4,356,008)$(4,188,310)$ (5,236,822)
Net loss per share$(0.00)$(0.12)$(0.02)$ (0.15)
Funds from Operations$624,431$(90,227)$742,257$ (306,405)
FFO per share$0.00$(0.00)$0.00$ (0.01)
Liquidity and Leverage   
Cash$56,305,690$588,635$56,305,690$ 588,635

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.
  • Advancing its development. Parkit continues to advance its development properties and maximize property density.
  • Strong rent collections. Parkit’s rent collections remain resilient through the pandemic as the Company increased its collections for the three months and nine months ended September 30, 2021 up to 100% and 99%, 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 nine months ended September 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 nine months ended September 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, including a continuing shift into industrial real estate by growing its portfolio of investment properties while stabilizing its parking operations, and also regarding expanding existing properties and acquiring strategically located industrial properties with a focus on the ‎GTA+, Ottawa and Montreal; Parkit’s continued focus on ESG initiatives by prioritizing environmental investments; Parkit’s expectation that parking results will continue to improve as the effects of the pandemic ‎diminish; and Parkit’s continuing advancement of it development properties by maximizing property density.‎ 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 continuing ability to grow its portfolio of investment properties; 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, 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 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.