Toronto, Ontario--(Newsfile Corp. - March 6, 2025) - Parkit Enterprise Inc. (TSXV: PKT) ("Parkit" or the "Company"), today reported the Company's full year 2024 audited results. Steven Scott, Chair of Parkit, commented:
"Parkit continued to grow its net rental income and margins in 2024, resulting in a Stabilized Comparative Properties NOI increase of 17% for the year. During the year, we signed new leases on 187,855 square feet of space and renewed 156,843 square feet of space at market rents. We continue to maintain a strong balance sheet with 95% of our debt being fixed, and will continue to be disciplined on acquisitions, and we expect to increase revenue, NRI and FFO in the upcoming year."
2024 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 signed new leases and streamlined operations from prior year acquisitions. Investment properties revenue for the three and twelve months ended December 31, 2024 rose 19% and 26%, to $6,950,930 and $26,042,617, compared to $5,832,682 and $20,733,344, for the three and twelve months ended December 31, 2023. Net rental income ("NRI"), increased by 27% and 33%, to $4,962,757 and $17,789,525, for the three and twelve months ended December 31, 2024 compared to $3,919,188 and $13,387,320, for the three and twelve months ended December 31, 2023.
- Stabilized Comparative Properties NOI increased. Stabilized Comparative Properties NOI, a Non-IFRS Measure, increased 11% and 17%, to $2,644,631 and $10,295,094, for the three and twelve months ended December 31, 2024 compared to $2,384,841 and $8,824,393, for the three and twelve months ended December 31, 2023, as the Company executed renewals with tenants and maximized occupancy.
- Leasing at market rental spreads. During 2024, the Company signed 187,855 square feet of new leases at a market rates and renewed 156,843 square feet of leases at a weighted average rental growth of 58%.
- Funds from operations ("FFO") increased for the period. The FFO, a Non-IFRS Measure, for the three and twelve months ended December 31, 2024 increased by 45% and 64%, to $2,017,349 and $6,745,526 compared to FFO of $1,390,163 and $4,115,966 for the three and twelve months ended December 31, 2023. The increase in FFO was a result of additional NRI from investment properties.
- Liquidity position. The Company maintained a strong liquidity position with cash and cash equivalents of over $5,000,000 at the end of the year, unencumbered assets and significant availability on its credit facilities to fund future acquisitions.
- Cash flows. Parkit increased its cash flow with $15,737,461 received from operating activities for the twelve months ended December 31, 2024, compared to $15,039,345 received for the twelve months ended December 31, 2023. Parkit used net cash of $19,605,476 in investing activities for the twelve months ended December 31, 2024, compared to cash used of $103,465,734 from investing activities for the twelve months ended December 31, 2023. Parkit used net cash of $1,317,428 in financing activities for the twelve months ended December 31, 2024, compared to net cash received of $79,310,673 for the twelve months ended December 31, 2023.
- Net loss for the period. The Company had a net loss of $405,849 and $2,806,467, for the three and twelve months ended December 31, 2024, compared to a net loss of $4,243,583 and $5,092,053, for the three and twelve months ended December 31, 2023. The net loss was a result of FFO growth less the impact of non-cash items including an unrealized gain on derivative financial instruments of $482,344 and $385,666, for the three and twelve months ended December 31, 2024 compared to an unrealized loss on derivative financial instruments of $1,965,707 and $1,965,707, for the three and twelve months ended December 31, 2023. Also the depreciation of $2,241,961 and $8,747,393, for the twelve months ended December 31, 2024, compared to depreciation of $2,116,524 and $7,708,727, for the three and twelve months ended December 31, 2023.
- Industrial property acquisitions. Parkit acquired 2 industrial properties totaling $15.8 million with 222,640 square feet of gross leasable area on 7.4 acres during 2024. With these acquisitions, Parkit continued to grow its portfolio and add to its presence in key markets.
- Net parking income for the period. Net parking income includes parking properties income and the share of income loss from equity accounted investees. The net parking income was $130,719 and $780,050 for the three and twelve months ended December 31, 2024, compared to income of $222,589 and $752,410 for the three and twelve months ended December 31, 2023. The share of income and loss from equity-accounted investees was an income of $ 53,549 and a loss of $431,812 for the three and twelve months ended December 31, 2024, compared to a loss of $1,173,548 and an income of $795,44 for the three and twelve months ended December 31, 2023. The current year loss is a result of a one-time loss realized from the joint ventures sale of Z Parking compared to the prior year results which reflects a one-time gain realized from the Company's sale of Fly Away Nashville. The current results reflect streamlined operations and a growing market in Nashville.
- Z Airport parking acquisitions. Parkit continued to consolidate its legacy parking holdings by acquiring its remaining interest in Z Airport Parking, located in East Granby, Connecticut from its joint venture partners. Z Airport Parking is a 5.5 acre off airport parking lot located by the Bradley International Airport, the purchase price was $2.3 million and was satisfied with funds on hand. Parkit now owns 100% of Z Airport Parking.
- 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 twelve months ended December 31, 2024 and its financial position as at such date, please see Parkit's Annual Audited Financial Statements and Management's Discussion and Analysis for the year ended December 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.
| Three months ended December 31, 2024 | Three months ended December 31, 2023 | Twelve months ended December 31, 2024 | Twelve months ended December 31, 2023 | |||||||||
| Net Loss and comprehensive loss | $ | (405,849 | ) | $ | (4,243,583 | ) | $ | (2,806,467 | ) | $ | (5,092,053 | ) |
| Add / (Deduct): | ||||||||||||
| Share of loss (gain) from equity-accounted investees | (53,549 | ) | 1,173,548 | 431,812 | (795,447 | ) | ||||||
| Depreciation | 2,241,961 | 2,116,524 | 8,747,393 | 7,708,727 | ||||||||
| Unrealized (loss) gain on derivative financial instruments | (482,344 | ) | 1,965,707 | (385,666 | ) | 1,965,707 | ||||||
| Foreign exchange (gain) loss | 293,841 | (77,633 | ) | 335,165 | (126,904 | ) | ||||||
| Income tax (recovery) expense | 219,163 | (336 | ) | 219,163 | - | |||||||
| Share based compensation | 204,126 | 455,936 | 204,126 | 455,936 | ||||||||
| FFO | $ | 2,017,349 | $ | 1,390,163 | $ | 6,745,526 | $ | 4,115,966 | ||||
| FFO per share | $ | 0.01 | $ | 0.01 | $ | 0.03 | $ | 0.02 |
"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 on or after the beginning of the prior year period. For the three and twelve months ended December 31, 2024 and December 31, 2023, the Company excludes investment properties acquired on or after January 1, 2023. 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:
| Three months ended December 31, 2024 | Three months ended December 31, 2023 | Change in $ | Change in % | |||||||||
| Stabilized comparative properties NOI | $ | 2,644,631 | $ | 2,384,841 | $ | 259,790 | 11% | |||||
| NOI from newly acquired properties | 2,120,377 | 1,620,383 | 499,994 | |||||||||
| Straight line rent | 179,782 | 181,229 | (1,447 | ) | ||||||||
| NOI from unstabilized properties | 17,967 | (267,265 | ) | 285,232 | ||||||||
| Net rental income | $ | 4,962,757 | $ | 3,919,188 | $ | 1,043,569 | 27% |
| Twelve months ended December 31, 2024 | Twelve months ended December 31, 2023 | Change in $ | Change in % | |||||||||
| Stabilized comparative properties NOI | $ | 10,295,094 | $ | 8,824,393 | $ | 1,470,701 | 17% | |||||
| NOI from newly acquired properties | 7,045,992 | 5,087,484 | 1,958,508 | |||||||||
| Straight line rent | 736,962 | 652,721 | 84,241 | |||||||||
| NOI from unstabilized properties | (288,523 | ) | (1,177,278 | ) | 888,755 | |||||||
| Net rental income | $ | 17,789,525 | $ | 13,387,320 | $ | 4,402,205 | 33% |
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's continuing discipline on acquisitions and its expectations to increase its revenue, NRI and FFO for 2025; Parkit's focus on ESG initiatives by prioritizing environmental initiatives in its development plans and reviewing its corporate policies; 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 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/243638
SOURCE: Parkit Enterprise Inc.
