Mr. Steve Scott reports

PARKIT ENTERPRISE REPORTS Q3 RESULTS

Parkit Enterprise Inc. today released the company's third quarter 2023 results. Steve Scott, chair of Parkit, commented:

"In Q3, Parkit achieved significant revenue and net rental income growth through successful negotiations with new and existing tenants by integrating the 10 industrial assets purchased this year. With 95 per cent of our debt fixed, Parkit continues to have a strong balance sheet and expects to continue to look for accretive acquisitions in the coming quarters."

2023 Q3 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 nine months ended Sept. 30, 2023, rose 99 per cent and 95 per cent, respectively, to $5,671,599 and $14,900,662, compared with $2,846,709 and $7,649,000, respectively, for the three and nine months ended Sept. 30, 2022. Net rental income (NRI) increased by 141 per cent and 147 per cent, respectively, to $3,826,615 and $9,468,132, for the three and nine months ended Sept. 30, 2023, compared with $1,589,859 and $3,832,075, respectively, for the three and nine months ended Sept. 30, 2022.
• Liquidity position. The company maintained a strong liquidity position with cash and cash equivalents of over $5-million at the end of the quarter. The company has unencumbered assets and significant availability on its credit facilities to finance future acquisitions.
• Cash flows. Parkit increased its cash flow with $10,759,015 received from operating activities for the nine months ended Sept. 30, 2023, compared with $3,571,514 received for the nine months ended Sept. 30, 2022. Parkit used net cash of $102,043,727 in investing activities for the nine months ended Sept. 30, 2023, compared with cash used of $40,252,477 from investing activities for the nine months ended Sept. 30, 2022, as the company completed $95.2-million of net acquisitions. Parkit received net cash of $76,822,942 in financing activities for the nine months ended Sept. 30, 2023, compared with net cash received of $33,512,344 for the nine months ended Sept. 30, 2022, as a result of financing received from credit facilities to fund acquisitions.
• Funds from operations (FFO) increased for the period. The FFO (funds from operations), a non-IFRS (international financial reporting standards) measure, for the three and nine months ended Sept. 30, 2023, increased by 137 per cent and 110 per cent, respectively, to $1,264,167 and $2,725,803, compared with FFO of $533,385 and $1,295,171, respectively for the three and nine months ended Sept. 30, 2022. The increase in FFO was a result of additional NRI from industrial properties.
• Income for the period. The company had a net loss of $793,939 and $848,470, respectively, for the three and nine months ended Sept. 30, 2023, compared with a net loss of $177,183 and $927,150, respectively, for the three and nine months ended Sept. 30, 2022.
• Parking operations. The share of income and loss from equity-accounted investees was an income of $59,951 and $1,968,995 for the three and nine months ended Sept. 30, 2023, compared with income of $160,236 and $404,328 for the three and nine months ended Sept. 30, 2022. The quarterly decrease and year to date increase in income is a result of the joint venture's sale.

Subsequent to the acquisition of the remaining 50-per-cent interest in Fly Away Parking, the company consolidated its results in the new Parking operations. The parking properties revenue was $914,200 and $1,591,723 for the three and nine months ended Sept. 30, 2023. The parking properties operating income was $305,343 and $529,821 for the three and nine months ended Sept. 30, 2023. The current results reflect an increase in both revenue and income compared with the prior-year results for Fly Away Parking which is a result of streamlined operations, lower financing costs and a growing market in Nashville, Tenn.

• Leasing at market rental spreads. During the three months ended Sept. 30, 2023, Parkit continued to sign and renew leases at market rates including 70,419 sf in Burlington, Ont., the company realized a 127-per-cent increase from its prior in-place lease. 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.

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

Change in management

Carey Chow is now the sole chief financial officer of the company, where he worked as co-CFO over the past two years. JoAnne Odette has completed her transitional role as co-CFO of the company.

Further information

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

About Parkit Enterprise Inc.

Parkit Enterprise is an industrial real estate platform focused on the acquisition, growth and management of strategically located industrial properties across key urban markets in Canada. In addition, Parkit has parking assets across various markets in the United States. Parkit's common shares are listed on TSX-V (symbol: PKT).

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