Parkit Enterprise Reports Q1 Results

Toronto, Ontario--(Newsfile Corp. - May 11, 2023) - Parkit Enterprise Inc. (TSXV: PKT) ("Parkit" or the "Company"), today reported the Company's first quarter 2023 results. Steve Scott, Chair of Parkit, commented:

"In Q1 Parkit closed on a $90.3 million portfolio in Winnipeg and Saskatchewan, continued to streamline operations on its properties and advance its leasing activities. The new portfolio adds significant scale by adding 800,000 sf of Gross Leasable Area and in-place cash flows."

2023 Q1 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 ended March 31, 2023 rose 69% to $3,559,232, compared to $2,110,455 for the three months ended March 31, 2022. Net rental income ("NRI"), increased by 140% to $2,086,279 for the three months ended March 31, 2023 compared to $868,035 for the three months ended March 31, 2022. The increase in revenue and NRI from investment properties is due to the acquisitions made by Parkit and stabilization of certain investment properties. Parkit's stabilized property margins continued to improve 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 $10,049,939 for the three months ended March 31, 2023, compared to $19,471,763 for the year ended December 31, 2022. During quarter, the Company utilized $80,000,000 from new credit facilities to fund acquisitions.

• Cash flows. Parkit increased its cash flow with $4,878,533 received from operating activities for the three months ended March 31, 2023, compared to $897,823 received for the three months ended March 31, 2022. Parkit used net cash of $92,528,394 in investing activities for the three months ended March 31, 2023, compared to cash used of $16,483,481 from investing activities for the three months ended March 31, 2022 as the Company completed $90.3 million of acquisitions in Q1 2023. Parkit received net cash of $78,228,046 in financing activities for the three months ended March 31, 2023, compared to net cash used of $414,973 for the three months ended March 31, 2022 as a result of financing received from credit facilities to fund acquisitions.

• Funds from operations ("FFO") increased for the period. The FFO, a Non-IFRS Measure, for the three months ended March 31, 2023 increased by 24% to $443,693, compared to a FFO of $358,325 for the three months ended March 31, 2022. The increase in annual FFO was a result of additional NRI from investment properties offset by higher financing cost.

• Loss for the period. The Company had a net loss of $1,085,366 for the three months ended March 31, 2023, compared to a net loss of $493,271 for the three months ended March 31, 2022. While rental income increased, the net loss was a result of higher depreciation and finance costs.

• Parking joint ventures reported a loss for Q1 2023. Parkit's parking joint ventures reported a loss of $69,197 for the three months ended March 31, 2023, compared to a profit of $39,412 for the three months ended March 31, 2022. The loss is a result of seasonality and higher financing cost for the joint ventures. With the acquisition of the remaining 50% interest in Fly Away Parking, Fly-Away Parking results will improve without the financing cost burden. The Company expects the OP Holdings results to improve as Q1 is a seasonally weak quarter.

• Parkit completed $90.3 million of acquisitions for Q1 2023. The new industrial properties provide scale, are strategically located within industrial parks, include a diverse tenant base, have tenancies below market rents, have a runway for rental growth, and have medium-length lease terms.

• Leasing at market rental spreads. For the 3 months ended March 31, 2023, Parkit renewed the lease on 54,853 square feet. The extensions had an average rental rate which were 21% over the prior in-place rents.

• 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 will explore the possibility of solar initiatives with the new Government of Canada investment tax credit.

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 ended March 31, 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 months ended March 31, 2023 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 urban markets in Canada, to complement its parking assets across the United States. Parkit's Common Shares are listed on (TSXV: 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, executing on leasing and delivering quality property and asset management; Parkit's expectations that Fly-Away Parking's and OP Holding's results will improve; the potential impact of the $90.3 million of acquisitions completed in Q1 ‎‎2023, including to provide scale and a runway for rental growth;‎ Parkit's continued focus on ESG initiatives by prioritizing environmental investments and exploring the possibility of solar initiatives with the Government of Canada investment tax credit; 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 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; 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 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.

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