Mr. Steve Scott reports

PARKIT ENTERPRISE REPORTS FISCAL 2023 ANNUAL RESULTS; HIGHLIGHTING ACQUISITIONS; PROVIDES 2024 OUTLOOK

Parkit Enterprise Inc. has released its full-year-2023 audited results.

Steve Scott, chair of Parkit, commented:

"Parkit continued to improve its net rental income and margins by integrating the $100-million of assets purchased this year and through successful negotiations with existing and new tenants. With 97 per cent of our interest rate on our debt fixed, Parkit continues to have a strong balance sheet and expects to continue to be disciplined on acquisitions, and to increase our revenue, NRI and FFO for the upcoming year."

2023 Q4 and full-year results and recent business highlights:

• Investment properties revenue and net rental income: Investment properties revenue and net rental income increased as the company onboarded and integrated its Winnipeg and Saskatchewan portfolio, streamlined operations, and signed new leases. Investment properties revenue for the three and 12 months ended Dec. 31, 2023, rose 71 per cent and 87 per cent, respectively, to $5,832,682 and $20,733,344, compared with $3,420,394 and $11,069,394, respectively, for the three and 12 months ended Dec. 31, 2022. Net rental income (NRI) increased by 91 per cent and 128 per cent, respectively, to $3,919,188 and $13,387,320 for the three and 12 months ended Dec. 31, 2023, compared with $2,051,634 and $5,883,709, respectively, for the three and 12 months ended Dec. 31, 2022.
• Stabilized investment properties net rental income: On the company's stabilized properties, net rental income increased by 98 per cent and 120 per cent, respectively, to $4,184,358 and $14,563,769 for the three and 12 months ended Dec. 31, 2023, compared with $2,110,160 and $6,629,474, respectively, for the three and 12 months ended Dec. 31, 2022.
• Liquidity position: The company maintained a strong liquidity position with cash and cash equivalents of over $10-million at the end of the year. The company has unencumbered assets and significant availability on its credit facilities to finance future acquisitions.
• Cash flows: Parkit increased its cash flow with $15,039,345 received from operating activities for the 12 months ended Dec. 31, 2023, compared with $1,566,238 received for the 12 months ended Dec. 31, 2022. Parkit used net cash of $103,465,734 in investing activities for the 12 months ended Dec. 31, 2023, compared with cash used of $39,654,054 from investing activities for the 12 months ended Dec. 31, 2022, as the company completed $100.7-million of net acquisitions. Parkit received net cash of $79,310,673 in financing activities for the 12 months ended Dec. 31, 2023, compared with net cash received of $35,780,047 for the 12 months ended Dec. 31, 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 12 months ended Dec. 31, 2023, increased by 113 per cent and 111 per cent, respectively, to $1,390,163 and $4,115,966, compared with FFO of $652,007 and $1,947,178, respectively for the three and 12 months ended Dec. 31, 2022. The increase in FFO was a result of additional NRI from investment properties.
• Net income (loss) for the period: The company had a net loss of $4,243,583 and $5,092,053, respectively, for the three and 12 months ended Dec. 31, 2023, compared with a net loss of $2,552,258 and $3,479,408, respectively, for the three and 12 months ended Dec. 31, 2022. The net loss was a result of non-cash items included with the annual results, including $7,708,727 of depreciation, $455,936 in share-based compensation and $1,965,707 of unrealized loss on derivative financial instruments.
• Other income increased for the period: Other income includes parking properties income and the share of profit from equity accounted investees. The share of income and loss from equity-accounted investees was a loss of $1,173,548 and an income of $795,447 for the three and 12 months ended Dec. 31, 2023, compared with a loss of $205,553 and an income of $198,775 for the three and 12 months ended Dec. 31, 2022. The quarterly and year-to-date increase in income is a result of the joint venture's sale and improved parking operations. Subsequent to the acquisition of the remaining 50-per-cent interest in Fly Away Parking, the company commenced consolidating its results in the new parking operations. The parking properties revenue was $801,406 and $2,393,129 for the three and 12 months ended Dec. 31, 2023. The parking properties expenses were $578,817 and $1,640,719 for the three and 12 months ended Dec. 31, 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.
• Acquisitions: Parkit completed $100.7-million of acquisitions for fiscal 2023. With these acquisitions, Parkit continued to streamline property management, advance its expansions and sign new leases.
• Leasing at market rental spreads: During the three months ended Dec. 31, 2023, Parkit continued to renew and sign leases at market rates. In fiscal 2023, Parkit achieved a weighted average rental rate growth on lease renewals of 77 per cent.
• Continued focus on environmental, social and governance (ESG) initiatives: Parkit continued its focus on ESG initiatives by prioritizing environmental initiatives in its development plans and reviewing its corporate policies.

Parkit is focused on growing and maximizing cash flows on its industrial portfolio, while streamlining operations of its parking properties.

Further information

For comprehensive disclosure of Parkit's performance for the three and 12 months ended Dec. 31, 2023, and its financial position as at such date, please see Parkit's annual audited financial statements and the management's discussion and analysis (MD&A) for the year ended Dec. 31, 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 attached table indicates how Parkit reconciles FFO to the nearest IFRS measure.

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 the TSX Venture Exchange (symbol PKT).

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