Toronto, Ontario--(Newsfile Corp. - May 7, 2024) - Parkit Enterprise Inc. (TSXV: PKT) ("Parkit" or the "Company"), today reported the Company's first quarter 2024 results. Steve Scott, Chair of Parkit, commented:
"Parkit continued to improve its net rental income and margins through successful negotiations with existing and new tenants and by integrating the $100 million of assets purchased last year. Subsequent to Q1, Parkit cash closed on a $6.3 million acquisition in Winnipeg, and with 96% of our interest rate on our debt fixed, Parkit continues to have a strong balance sheet and will continue to be disciplined on acquisitions, and expects to increase our revenue, NRI and FFO for the upcoming year."
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Net income (loss) for the period. The Company had net income of $164,871 for the three months ended March 31, 2024, compared to a net loss of $1,085,366, for the three months ended March 31, 2023. The net income was a result of FFO growth and impacted non-cash items including an unrealized gain on derivative financial instruments of $1,090,173 and $2,123,134 of depreciation.
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Net parking income increased for the period. Net parking income includes parking properties income and the share of profit (loss) from equity accounted investees. The share of loss from equity-accounted investees was a loss of $122,438 for the three months ended March 31, 2024, compared to a loss of $69,197 for the three months ended March 31, 2023. The quarterly losses are a result of seasonality in the joint ventures operations.
Parkit consolidates its result in Fly Away Parking, which had revenues and net parking income of $764,418 and $181,431 respectively for the three months ended March 31, 2024. The current results reflect an increase in both revenue and expenses compared to the prior year results for Fly Away Parking which is a result of streamlined operations and a growing market in Nashville, TN.
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Acquisitions and Industrial Operations. Subsequent to March 31, 2024, Parkit acquired an industrial warehouse located by the Winnipeg Richardson International Airport for a purchase price of $6.3 million. The purchase price was satisfied with funds on hand. Parkit continued to streamline property management, advance its expansions, and sign new leases.
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Leasing at market rental spreads. During the three months ended March 31, 2024, Parkit continued to renew and sign leases at market rates. Parkit signed two new leases in Q1 2024 for a total of 29,384 sf at its properties.
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 months ended March 31, 2024 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 months ended March 31, 2024 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.
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| Three months ended March 31, 2024 |
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| Three months ended March 31, 2023 |
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| Net income (loss) and comprehensive income (loss) | $ | 164,871 |
| $ | (1,085,366 | ) |
| Add / (Deduct): |
| |
|
| |
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| Share of loss from equity-accounted investees |
| 122,438 |
|
| 69,197 |
|
| Depreciation |
| 2,123,134 |
|
| 1,460,207 |
|
| Unrealized gain on derivative financial instruments |
| (1,090,173 | ) |
| - |
|
| Foreign exchange |
| 59,699 |
|
| (345 | ) |
| FFO | $ | 1,379,969 |
| $ | 443,693 |
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| FFO per share | $ | 0.01 |
| $ | 0.00 |
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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:
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 are forward-looking information. In particular, this news release contains forward-looking information in relation to: Parkit continuing to be disciplined on acquisitions, and Parkit's expectations to increase revenue, NRI and FFO for 2024; Parkit's continued focus on ESG initiatives by prioritizing environmental investments; Parkit's focus on growing and maximizing cash flows on its industrial portfolio, while streamlining operations of its parking properties; 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; and the lack of qualified, skilled labour or loss of key individuals. 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 2024 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/208315
