Parkit Enterprise Reports Q2 2025 Results

Toronto, Ontario--(Newsfile Corp. - August 7, 2025) - Parkit Enterprise Inc. (TSXV: PKT) ("Parkit" or the "Company"), today reported the Company's second quarter 2025 results. Steven Scott, Chair of Parkit, commented:

"Parkit is pleased to report strong performance for Q2 2025, highlighted by several key achievements and strategic moves. We completed the sale of six Winnipeg assets, realizing a substantial gain, and made a strategic investment in PROREIT. Our financial metrics showed positive trends, with net rental income and margins improving, leading to a 9% year over year increase in same property NOI and a 52% growth in FFO. We successfully renewed 97,400 square feet of leases at rates 47% higher than previous terms and signed a new lease for 22,000 square feet of space. We recorded an impairment in our parking assets due to reduced travel and are working to improve their results. Our balance sheet remains strong, and we will continue to maintain our disciplined approach to acquisitions and expect increases in revenue, NRI, and FFO in the upcoming year. These results reflect our ongoing efforts to optimize our portfolio and create value, while carefully managing risks and capital allocation in the current market environment."

2025 Q2 Results and Recent Business Highlights

• Sale of Assets and Strategic Investment. Parkit completed the sale of a portfolio of six industrial properties located in Winnipeg, Manitoba to PRO Real Estate Investment Trust ("PROREIT") (TSX: PRV.UN) for proceeds of $96,500,000. As part of the transaction, Parkit received $40 million of the proceeds in the form of 6,451,613 units of PROREIT.

• Investment properties revenue and net rental income. Investment properties revenue and net rental income increased as the Company signed new leases and streamlined operations. Investment properties revenue for the three and six months ended June 30, 2025 rose 22% and 20% to $7,750,540 and $14,871,681, compared to $6,332,263 and $12,390,783 for the three and six months ended June 30, 2024. Net rental income ("NRI"), increased by 24% and 22% to $5,263,513 and $10,149,549, for the three and six months ended June 30, 2025 compared to $4,256,765 and $8,287,181 for the three and six months ended June 30, 2024.

• Stabilized Comparative Properties NOI. Stabilized Comparative Properties NOI, a Non-IFRS Measure, increased by 9% and 11%, to $3,226,667 and $6,470,316, for the three and six months ended June 30, 2025 compared to $2,956,613 and $5,813,809, for the three and six months ended June 30, 2024, as the Company executed renewals with tenants and maximized occupancy.

• Leasing at market rental spreads. During the three months ended June 30, 2025, Parkit renewed 97,400 square feet on two properties at 47% higher rates and signed a new lease for 22,000 square feet with one tenant at market rates.

• Funds from operations ("FFO") increased for the period. The FFO, a Non-IFRS Measure, increased by 51% and 37%, to $2,272,169 and $3,953,720, for the three and six months ended June 30, 2025 compared to FFO of $1,509,102 and $2,889,071, for the three and six months ended June 30, 2024. The increase in FFO was a result of additional NRI from investment properties, additional dividend income from the PROREIT investment, offset by higher financing costs.

• Liquidity position. The Company maintained a strong liquidity position with cash and cash equivalents of over $11,100,000 at the end of the period. The Company has unencumbered assets and significant availability on its credit facilities to fund future acquisitions.

• Cash flows. Parkit's cash flow from operations was $8,393,224 for the six months ended June 30, 2025, compared to $7,134,985 received for the six months ended June 30, 2024. The increase in cash from operating activities is a result of increased revenues. Parkit received cash of $42,490,623 in investing activities for the six months ended June 30, 2025, compared to cash used of $7,382,942 from investing activities for the six months ended June 30, 2024. The higher net cash received from investing activities is the cash received on the sale of certain assets this period compared to an acquisition done in the same comparative period. Parkit used net cash of $45,222,871 from financing activities for the six months ended June 30, 2025, compared to cash used of $5,275,163 for six months ended June 30, 2024. The increase in cash used was a result of proceeds used to repay its debt financing and the amounts paid for Company shares purchased under its Normal Course Issuer Bid, repayment of debt, interest paid and debt issuance costs.

• Net (loss) income for the period. The Company had net income of $18,159,326 and $16,638,526 for the three and six months ended June 30, 2025, compared to net loss of $445,893 and $281,022, for the three and six months ended June 30, 2024. The change is the result of the gain on the sale of its investment properties, higher net rental income, offset by parking loses, unrealized losses from derivative financial instruments, depreciation and finance costs.

• Net parking (loss) income for the period. Net parking income includes parking properties income and the share of loss from equity accounted investees. The net parking loss was $7,403,186 and $7,599,887 for the three and six months ended June 30, 2025, compared to income of $262,743 and $321,736 for the three and six months ended June 30, 2024. The Company recorded an impairment in its parking joint venture for the period ending June 30, 2025 to mark the value down to its fair value.

Further Information

For comprehensive disclosure of Parkit's performance for the three and six months ended June 30, 2025 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 and six months ended June 30, 2025 filed on SEDAR+ at www.sedarplus.ca.

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 to 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 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 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 to FFO used by other companies.

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

"Stabilized Comparative Properties NOI" is a non-IFRS financial measure used by management in evaluating the performance of properties fully owned by the Company in the current and prior year comparative periods. Stabilized Comparative Properties NOI enables investors to evaluate our operating performance, especially to assess the effectiveness of our management of properties generating NOI growth from existing properties. Stabilized Comparative Properties NOI is not defined by IFRS Accounting Standards, does not have a standard meaning and may not be comparable with similar measures presented by other issuers.

Net operating income ("NOI") is a non-IFRS measure commonly used as a measurement tool in real estate businesses. NOI is equal to net rental income ("NRI") presented in the Corporation's Financial Statements. NRI is defined as investment properties revenue less investment properties operating costs. NRI does not include interest expense or income, depreciation and amortization, corporate administrative costs, share-based compensation costs or taxes. NRI assists management in assessing profitability and valuation from principal business activities.

Both Stabilized Comparative Properties NOI and NOI should not be viewed as alternatives 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. Both Stabilized Comparative Properties NOI and NOI should not be interpreted as indicators of cash generated from operating activities and neither are indicative of cash available to fund operating expenditures, or for the payment of cash distributions. Both Stabilized Comparative Properties NOI and NOI are simply additional measures of operating performance which highlight trends in Parkit's core business that may not otherwise be apparent when relying solely on IFRS financial measures. In addition, Parkit's definition of, and use of, both Stabilized Comparative Properties NOI and NOI, respectively, may differ from, and not be comparable to, Stabilized Comparative Properties NOI and NOI used by other companies.

When comparing the Stabilized Comparative Properties NOI on a year-over-year basis for the three and twelve months, the Company excludes investment properties acquired or disposed on or after the beginning of the prior year period. For the three months ended June 30, 2025 and June 30, 2024, the Company excludes investment properties acquired or disposed on or after January 1, 2024. The Stabilized Comparative Properties NOI is calculated by taking NOI and excluding the impact of NOI from acquisitions, NOI from straight-line rent and NOI from unstabilized properties.

The Company reconciles the Stabilized Comparative Properties NOI to net rental income as follows:

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 of America. Parkit's Common Shares are listed on TSX-V (Symbol: PKT).

For more information, please contact Mr. Carey Chow, Mr. Iqbal Khan or Mr. Steven Scott:

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 news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein are forward-looking information. In particular, this news release contains forward-looking information in relation to: Parkit continuing to be disciplined on acquisitions; Parkit's expectations to increase revenue, NRI and FFO for 2025; Parkits ongoing efforts to optimize its portfolio and create value, while carefully managing risks and capital allocation in the current market environment; and Parkit's focus on the acquisition, growth and management of strategically located industrial properties across key urban markets in Canada. This forward-looking information reflects Parkit's current beliefs and is based on information currently ‎available to Parkit and on assumptions Parkit 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 Parkit's services and products; Parkit's continued ability to ‎acquire properties that are in-line with its strategic focus, including prioritizing environmental investments; ‎Parkit's continuing ability to grow its portfolio of investment properties; and Parkit's past results ‎continuing to be an indicator of future results. ‎Forward-looking information is subject to known and unknown risks and uncertainties that may cause the actual results, performance or developments to differ materially from those contained in or implied by 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 board of directors, third party or regulatory approvals; the actual ‎results of Parkit's future operations; competition; changes in legislation, including environmental ‎legislation, affecting Parkit; the timing and availability of external financing on acceptable terms; ‎conclusions of economic evaluations and appraisals; the lack of qualified, skilled labour or loss of key individuals; and the impact that the imposition of trade tariffs, particularly from the United States, may have on the global economy, and the economy in Canada in particular. A description of ‎additional risk factors that may cause actual results to differ materially from forward-looking information can ‎be found in Parkit's disclosure documents on the SEDAR+ website at www.sedarplus.ca. ‎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. Readers are cautioned that the foregoing list of risks, uncertainties and factors is not exhaustive. 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 news release is expressly qualified by this cautionary statement. The forward-looking information contained in this news release represents the expectations of Parkit as of the date of this news release and, accordingly, is 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.

The expectations to continue to be disciplined on acquisitions and to increase Parkit's revenue, NRI and FFO for 2025 contained in this news release may be considered a financial outlook as defined by applicable securities legislation. Such information and any other financial outlooks contained in this news release have been approved by management of Parkit as of the date hereof. Such financial outlooks are provided for the purpose of presenting information about management's current expectations and goals relating to the future business of Parkit. Readers are cautioned that reliance on such information may not be appropriate for other purposes.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/261764