Mr. Steve Scott reports

PARKIT ENTERPRISE REPORTS Q1 RESULTS

Parkit Enterprise Inc. has released its first quarter 2023 results.

Steve Scott, chair of Parkit, commented: "In Q1 Parkit closed on a $90.3 million portfolio in Winnipeg and Saskatchewan, continued to streamline operations on its properties and advance its leasing activities. The new portfolio adds significant scale by adding 800,000 sf of Gross Leasable Area and in-place cash flows."

2023 Q1 Results and Recent Business Highlights

• Revenues and net rental income. Revenues and net rental income increased as the Company onboarded and integrated additional investment properties. Investment properties revenue for the three months ended March 31, 2023 rose 69% to $3,559,232, compared to $2,110,455 for the three months ended March 31, 2022. Net rental income ("NRI"), increased by 140% to $2,086,279 for the three months ended March 31, 2023 compared to $868,035 for the three months ended March 31, 2022. The increase in revenue and NRI from investment properties is due to the acquisitions made by Parkit and stabilization of certain investment properties. Parkit's stabilized property margins continued to improve as the Company streamlined operations and signed new leases.
• Significant liquidity position. The Company maintained a strong liquidity position with cash and cash equivalents totaling $10,049,939 for the three months ended March 31, 2023, compared to $19,471,763 for the year ended December 31, 2022. During quarter, the Company utilized $80,000,000 from new credit facilities to fund acquisitions.
• Cash flows. Parkit increased its cash flow with $4,878,533 received from operating activities for the three months ended March 31, 2023, compared to $897,823 received for the three months ended March 31, 2022. Parkit used net cash of $92,528,394 in investing activities for the three months ended March 31, 2023, compared to cash used of $16,483,481 from investing activities for the three months ended March 31, 2022 as the Company completed $90.3 million of acquisitions in Q1 2023. Parkit received net cash of $78,228,046 in financing activities for the three months ended March 31, 2023, compared to net cash used of $414,973 for the three months ended March 31, 2022 as a result of financing received from credit facilities to fund acquisitions.
• Funds from operations ("FFO") increased for the period. The FFO, a Non-IFRS Measure, for the three months ended March 31, 2023 increased by 24% to $443,693, compared to a FFO of $358,325 for the three months ended March 31, 2022. The increase in annual FFO was a result of additional NRI from investment properties offset by higher financing cost.
• Loss for the period. The Company had a net loss of $1,085,366 for the three months ended March 31, 2023, compared to a net loss of $493,271 for the three months ended March 31, 2022. While rental income increased, the net loss was a result of higher depreciation and finance costs. Parking joint ventures reported a loss for Q1 2023.
• Parkit's parking joint ventures reported a loss of $69,197 for the three months ended March 31, 2023, compared to a profit of $39,412 for the three months ended March 31, 2022. The loss is a result of seasonality and higher financing cost for the joint ventures. With the acquisition of the remaining 50% interest in Fly Away Parking, Fly-Away Parking results will improve without the financing cost burden. The Company expects the OP Holdings results to improve as Q1 is a seasonally weak quarter.
• Parkit completed $90.3 million of acquisitions for Q1 2023. The new industrial properties provide scale, are strategically located within industrial parks, include a diverse tenant base, have tenancies below market rents, have a runway for rental growth, and have medium-length lease terms.
• Leasing at market rental spreads. For the 3 months ended March 31, 2023, Parkit renewed the lease on 54,853 square feet. The extensions had an average rental rate which were 21% over the prior in-place rents.
• 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. The Company will explore the possibility of solar initiatives with the new Government of Canada investment tax credit.

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 ended March 31, 2023 and its financial position as at such date, please see Parkit's Unaudited Condensed Financial Statements and Management's Discussion and Analysis for the three months ended March 31, 2023 filed on SEDAR.

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 urban markets in Canada, to complement its parking assets across the United States. Parkit's Common Shares are listed on (TSXV: PKT).

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