Parkit Enterprise Reports Fiscal 2022 Annual Results; Highlighting Acquisitions; Provides 2023 Outlook

Toronto, Ontario--(Newsfile Corp. - March 28, 2023) - Parkit Enterprise Inc. (TSXV: PKT) ("Parkit" or the "Company"), today reported the Company's full year 2022 audited results. Steve Scott, Chair of Parkit, commented:

"In fiscal 2022, Parkit continued to build the foundation for growth by executing on operations and by closing on $57.9 million in disciplined accretive acquisitions. Looking ahead, we started fiscal 2023 by closing on a portfolio of 10 industrial properties in Winnipeg and Saskatchewan for $90.3 million. Throughout the year we expect to continue to add to our industrial portfolio, and to increase our revenue, NRI and FFO, through maximizing occupancy and by delivering quality property and asset management."

2022 Q4 and Full Year 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 and year ended December 31, 2022 rose to $3,420,394 and $11,069,394, respectively, compared to $2,115,089 and $5,778,651 for the three months and year ended December 31, 2021. Net rental income ("NRI"), increased to $2,051,634 and $5,883,709 for the three months and year ended December 31, 2022 compared to $1,114,129 and $3,322,561 for the three months and year ended December 31, 2021. The increase in revenue and NRI from investment properties is due to the acquisitions made by Parkit. Parkit's stabilized property margins continued to improve quarter over quarter for the year ended December 31, 2022 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 $19,471,763 for the year ended December 31, 2022, compared to $21,797,256 for the year ended December 31, 2021.

• Cash flows. Parkit increased its cash flowreceived from operating activities excluding changes in working capital to $4,203,641 for the year ended December 31, 2022, compared to cash flow received of $2,218,208 for the year ended December 31, 2021. Parkit used net cash of $39,654,054 in investing activities for the year ended December 31, 2021, compared to cash used of $99,684,493 from investing activities for the year ended December 31, 2021 as the Company made fewer acquisitions in fiscal 2022. Parkit received net cash of $35,780,047 in financing activities for the year ended December 31, 2022, compared to net cash received of $110,178,443 for the year ended December 31, 2021.

• Funds from operations ("FFO") increased for the period. The FFO, a Non-IFRS Measure, for the three months and year ended December 31, 2022 decreased to $652,007 and increased to $1,947,178, respectively, compared to a FFO of $698,435 and $1,460,528 for the three months and year ended December 31, 2021. The increase in annual FFO was a result of additional investment properties held for fiscal 2022.

• Loss for the period. The Company had a net loss of $2,552,258 and $3,479,408 for the three months and year ended December 31, 2022, compared to net income of $199,935 and a net loss of $3,988,375 for the three months and year ended December 31, 2021. While rental income increased, the net loss was a result of higher depreciation and finance costs.

• Parking results improved in fiscal 2022. Parkit's parking joint ventures reported a loss of $205,553 and a profit of $198,775 for the three months and year ended December 31, 2022 as a result of one time fees of $238,000 in Q4 due to fees on distribution and refinancing cost, compared to a profit of $30,769 and a loss of $289,233 for the three months and year ended December 31, 2021. Though the joint ventures reported a loss in Q4, the operating results continue to improve and the joint ventures provided a distribution to Parkit of $2,194,620 during the year.

• Parkit completed $57.9 million of acquisitions for fiscal 2022. With these acquisitions, Parkit continued to streamline property management, advance its expansions, and sign new leases.

• Subsequent to December 31, 2022, Parkit closed on a portfolio of 10 properties in Winnipeg and Saskatchewan for $90.3 million. Parkit completed the acquisition oftenindustrial properties, adding approximately 800,000 sf of gross leasable area on 55 acres for an aggregate purchase price of $90,250,000. The Company expects to complete additional acquisitions to meet its $100 million acquisition goal for fiscal 2023.

• Leasing at market rental spreads. For the 3 months ended December 31, 2022, Parkit signed new leases and had renewals on 65,710 square feet of gross leasable area. The extensions had an average rental rate which were 48% over the prior in place rents and new leases were signed at market rates.

• 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 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 and year ended December 31, 2022 and its financial position as at such date, please see Parkit's Annual Financial Statements and Management's Discussion and Analysis for the year ended December 31, 2022 filed on SEDAR at www.sedar.com.

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 Funds from Operations (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 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 markets in Canada, to complement its parking assets across the United States. 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:

Investor Relations
Contact Number: 1-888-627-9881
Email: ir@parkitenterprise.com

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 is forward-looking information. In particular, this news release contains forward-looking information in relation to: Parkit's expectations to continue to add to the industrial portfolio, and to increase in revenue, NRI and FFO, including through maximizing occupancy and delivering quality property and asset management; Parkit's expectations to complete additional acquisitions to meet its goal of $100 million in acquisitions in ‎‎2023;‎ Parkit's continued focus on ESG initiatives by prioritizing environmental investments; Parkit's focus 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; and Parkit's strategy and focus regarding acquiring high-quality and strategically located industrial properties across key 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: 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; Parkit's past results ‎continuing to be an indicator of future results; the diminishing effects of the COVID-19 pandemic in Canada, ‎the United States, and elsewhere; consumer interest in Parkit's services and products; and Parkit's continued response and ability to navigate the ‎COVID-19 pandemic being ‎consistent with, or better than, its ability and response to date‎. ‎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; lack of qualified, skilled labour or loss of key individuals; ‎risks related to the COVID-19 pandemic including various recommendations, orders and measures of ‎governmental authorities to try to limit the pandemic, including travel restrictions, border closures, non-‎essential business closures, service disruptions, quarantines, self-isolations, shelters-in-place, social ‎distancing and mandatory vaccination policies, disruptions to markets, economic activity, financing, supply chains and sales channels, and a ‎deterioration of general economic conditions including a possible national or global recession; and the impact ‎that the COVID-19 pandemic may have on Parkit which may include: a short-term delay in ‎payments from customers, an increase in accounts receivable and an increase of losses on accounts ‎receivable; decreased demand for the services that Parkit offers; and a deterioration of ‎financial markets that could limit Parkit's ability to obtain external financing. 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.sedar.com. ‎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 amount of potential future acquisitions by the Company in fiscal 2023, and expectations to increase revenue, NRI, FFO and cash flow for 2023 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 the Company 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 the Company. 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/160296