Mr. Steve Scott reports

PARKIT ENTERPRISE REPORTS Q2 RESULTS

Parkit Enterprise Inc. has released its second quarter 2023 results. Steve Scott, chair of Parkit, commented:

"In Q2, Parkit continued to streamline operations for its properties, signed a new lease and completed the acquisition of the remaining 50-per-cent interest in one of its parking assets providing full control over the future opportunities of the asset."

2023 Q2 results and recent business highlights:

• Industrial properties revenue and net rental income: Industrial properties revenue and net rental income increased as the company on boarded and integrated its Winnipeg and Saskatchewan portfolio, streamlined operations, and signed new leases. Industrial properties revenue for the three and six months ended June 30, 2023, rose 111 per cent and 92 per cent, respectively, to $5,669,831 and $9,229,063, compared with $2,691,836 and $4,802,291, respectively, for the three and six months ended June 30, 2022. Net rental income (NRI), increased by 159 per cent and 151 per cent, respectively, to $3,555,238 and $5,641,517, for the three and six months ended June 30, 2023, compared with $1,374,181 and $2,242,216, respectively, for the three and six months ended June 30, 2022.
• Significant liquidity position: The company maintained a strong liquidity position with cash and cash equivalents totalling $6,379,633 for the six months ended June 30, 2023. The company has unencumbered assets and availability on its operating line to fund future acquisitions.
• Cash flows: Parkit increased its cash flow with $7,340,142 received from operating activities for the six months ended June 30, 2023, compared with $2,049,452 received for the six months ended June 30, 2022. Parkit used net cash of $100,962,169 in investing activities for the six months ended June 30, 2023, compared with cash used of $38,201,148 from investing activities for the six months ended June 30, 2022, as the company completed $90.3-million of acquisitions in Q1 2023 and acquired the remaining interest in Fly-Away Parking, offset by a distribution received from its joint venture. Parkit received net cash of $80,331,782 in financing activities for the six months ended June 30, 2023, compared with net cash received of $35,627,698 for the six months ended June 30, 2022, as a result of financing received from credit facilities to finance acquisitions.
• Funds from operations (FFO) increased for the period: The FFO, a non-IFRS (international financial reporting standards) measure, for the three and six months ended June 30, 2023, increased by 152 per cent and 92 per cent, respectively, to $1,017,943 and $1,461,636, compared with FFO of $403,461 and $761,786, respectively, for the three and six months ended June 30, 2022. The increase in annual FFO was a result of additional NRI from industrial properties, offset by higher financing cost.
• Income for the period: The company had a net income of $1,030,835 and a net loss of $54,531, respectively, for the three and six months ended June 30, 2023, compared with a net loss of $256,696 and $749,967, respectively, for the three and six months ended June 30, 2022.
• Parking operations: Parkit's parking joint ventures reported a gain of $1,978,241 and $1,909,044, respectively, for the three and six months ended June 30, 2023, compared with an income of $204,680 and $244,092, respectively, for the three and six months ended June 30, 2022. The increase in the gain is a result of the joint ventures sale of its equity in Fly Away Parking.

Subsequent to Parkit's acquisition of Fly Away Parking, the property had parking revenue and income of $677,523 and $224,478, respectively, from the acquisition date in April, 2023, to June 30, 2023. The current results reflect an increase in both revenue and income, compared with the prior-year results, due to streamlined operations, lower financing costs and a growing market in Nashville, Tenn.:

• Leasing at market rental spreads: During the three months ended June 30, 2023, Parkit signed a new lease on 27,182 square feet. Parkit continues to maximize the occupancy of its gross leasable area by signing leases at market rates with escalations.
• 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 is registered with Energy Star, which monitors and analyzes the company's energy consumption to promote energy efficiency.

Parkit is focused on growing and maximizing cash flows on its industrial portfolio, while strategically operating its parking properties.

Further information

For comprehensive disclosure of Parkit's performance for the three and six months ended June 30, 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 and six months ended June 30, 2023, filed on SEDAR+.

Non-IFRS 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 with 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 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 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 finance operating expenditures, or for the payment of cash distributions. FFO is simply an additional measure of operating performance, which highlights trends in Parkit's core business that may not otherwise be apparent when relying solely on IFRS financial measures. Parkit's management also uses this non-IFRS measure in order to facilitate operating performance comparisons from period to period and to prepare operating budgets. In addition, while Parkit's methods of calculating FFO comply with Realpac recommendations, FFO may differ from and not be comparable with FFO used by other companies.

The attached table indicates how the Parkit reconciles FFO to the nearest IFRS measure.

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 the TSX Venture Exchange under the symbol PKT.

We seek Safe Harbor.