Toronto, Ontario--(Newsfile Corp. - November 6, 2025) - Parkit Enterprise Inc. (TSXV: PKT) ("Parkit" or the "Company") today reported the Company's third quarter 2025 results. Steven Scott, Chair of Parkit, commented:
"Parkit acquired 99,690 sf multi-tenant industrial warehouse in Edmonton, Alberta and continued its strong financial performance. We grew our net rental income and margins in Q3 2025, resulting in a year over year same property NOI growth of 9% and FFO growth of 31%. We renewed 2,200 square feet of leases and signed new leases on 24,665 square feet of space. Parkit continues to maintain a strong balance sheet and have ample liquidity for future acquisitions."
2025 Q3 Results and Recent Business Highlights
- Acquisitions and Industrial Operations. Parkit acquired an industrial property for $10.8 million consisting of 99,690 gross square feet on 5.2 acres during the three months ended September 30, 2025. With this acquisition, Parkit continued to grow its portfolio and entered a key new market.
- Revenues and income. Total revenue for the three and nine months ended September 30, 2025 decreased 4% and increased 14% to $7,365,674 and $24,829,814 compared to $7,671,945 and $21,692,430 for the three and nine months ended September 30, 2024. Net rental income and investment income increased 5% and 18% to $4,751,070 and $15,142,554, for the three and nine months ended September 30, 2025 compared to $4,539,587 and $12,826,768 for the three and nine months ended September 30, 2024. The Company's operations and margins continue to improve as the Company signed new leases and streamlined operations.
- Stabilized Comparative Properties NOI. Stabilized Comparative Properties NOI, a Non-IFRS Measure, increased by 8% and 9% to $3,133,565 and $9,418,563, for the three and nine months ended September 30, 2025 compared to $2,903,614 and $8,641,660, for the three and nine months ended September 30, 2024, as the Company executed renewals with tenants and maximized occupancy.
- Leasing at market rental spreads. During the three months ended September 30, 2025, Parkit renewed 2,200 square feet with one tenant and signed new leases for 24,665 square feet with one tenant at market rates.
- Funds from operations ("FFO") increased for the period. The FFO, a Non-IFRS Measure, for the three and nine months ended September 30, 2025 increased by 22% and 31%, to $2,236,385 and $6,190,105, compared to FFO of $1,839,044, and $4,728,177 respectively for the three months ended September 30, 2024. The increase in FFO was a result of NRI from investment properties and distributions from investments at fair value offset by lower financing costs from the Company's disposition of specific investment properties in Q2.
- Liquidity position. The Company maintained a strong liquidity position with cash and cash equivalents of over $4,300,000 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 $11,462,904 for the nine months ended September 30, 2025, compared to $12,664,922 for the nine months ended September 30, 2024. Parkit received net cash of $30,796,370 in investing activities for the nine months ended September 30, 2025, compared to cash used of $9,841,084 from investing activities for the nine months ended September 30, 2024. The higher net cash inflow is a result of the Company's disposition of investment properties for the nine months ended September 30, 2025, compared to none for the nine months ended September 30, 2024. Parkit used net cash of $43,371,713 from financing activities for the nine months ended September 30, 2025, compared to cash used of $5,699,497 for the nine months ended September 30, 2024. The increase in cash used was a result of proceeds from debt financing offset by the repayment of debt borrowings related to the portfolio disposition of 6 investment properties.
- Net income (loss) for the period. The Company had a net income of $1,323,169 and $17,961,695 for the three and nine months ended September 30, 2025, compared to net loss of $2,119,597 and $2,400,618, for the three and nine months ended September 30, 2024. The change is a result of an increase from the gain on the sale of its investment properties, higher net income, offset by net parking loss, unrealized losses from derivative financial instruments, depreciation and finance costs. Parkit is focused on growing and maximizing cash flows on its industrial portfolio, while streamlining the operations of its parking properties.
Further Information
For comprehensive disclosure of Parkit's performance for the three months ended September 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 months ended September 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 tables indicates how Parkit reconciles FFO to the nearest IFRS measure.
| Three months ended September 30, 2025 | Three months ended September 30, 2024 | Change in $ | Change in % | |||||||||
| Net income (loss) and comprehensive income (loss) | $ | 1,323,169 | $ | (2,119,597) | $ | 3,442,766 | ||||||
| Add / (deduct): | ||||||||||||
| Share of (income) loss from equity-accounted investees | (195,528) | 406,557 | (602,085) | |||||||||
| Depreciation | 1,777,770 | 2,191,960 | (414,190) | |||||||||
| Realized and unrealized gain on derivative financial instruments | 40,163 | 1,407,304 | (1,367,141) | |||||||||
| Foreign exchange loss (gain) | 119,914 | (47,180) | 167,094 | |||||||||
| Unrealized gain on Investments at fair value | (829,103) | - | (829,103) | |||||||||
| FFO | $ | 2,236,385 | $ | 1,839,044 | $ | 397,341 | 22% | |||||
| FFO per share | $ | 0.01 | $ | 0.01 | $ | 0.00 | ||||||
| Nine months ended September 30, 2025 | Nine months ended September 30, 2024 | Change in $ | Change in % | |||||||||
| Net income (loss) and comprehensive income (loss) | $ | 17,961,695 | $ | (2,400,618) | $ | 20,362,313 | ||||||
| Add / (deduct): | ||||||||||||
| Share of loss from equity-accounted investees | 7,405,291 | 485,361 | 6,919,930 | |||||||||
| Depreciation | 6,555,717 | 6,505,432 | 50,285 | |||||||||
| Realized and unrealized loss (gain) on derivative financial instruments | (230,339) | 96,678 | (327,017) | |||||||||
| Foreign exchange (gain) loss | (126,305) | 41,324 | (167,629) | |||||||||
| Gain on disposition | (24,804,916) | - | (24,804,916) | |||||||||
| Unrealized gain on Investments at fair value | (571,038) | - | (571,038) | |||||||||
| FFO | $ | 6,190,105 | $ | 4,728,177 | $ | 1,461,928 | 31% | |||||
| FFO per share | $ | 0.03 | $ | 0.02 | $ | 0.01 | ||||||
"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 months ended September 30, 2025 and September 30, 2024, the Company excludes investment properties acquired 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:
| Three months ended September 30, 2025 | Three months ended September 30, 2024 | Change in $ | Change in % | |||||||||
| Stabilized comparative properties NOI | $ | 3,133,565 | $ | 2,903,614 | $ | 229,951 | 8% | |||||
| NOI from newly acquired properties | 447,322 | - | 447,322 | |||||||||
| NOI from disposed properties | (73,343) | 1,409,008 | (1,482,351) | |||||||||
| Straight line rent | 107,028 | 189,700 | (82,672) | |||||||||
| NOI from unstabilized properties | 408,040 | 37,265 | 370,775 | |||||||||
| Net rental income | $ | 4,022,612 | $ | 4,539,587 | $ | (516,975) | (11%) | |||||
| Nine months ended September 30, 2025 | Nine months ended September 30, 2024 | Change in $ | Change in % | |||||||||
| Stabilized comparative properties NOI | $ | 9,418,563 | $ | 8,641,660 | $ | 776,903 | 9% | |||||
| NOI from newly acquired properties | 1,020,652 | - | 1,020,652 | |||||||||
| NOI from disposed properties | 2,641,322 | 3,756,488 | (1,115,166) | |||||||||
| Straight line rent | 568,504 | 557,180 | 11,324 | |||||||||
| NOI from unstabilized properties | 523,120 | (128,560) | 651,680 | |||||||||
| Net rental income | $ | 14,172,161 | $ | 12,826,768 | $ | 1,345,393 | 10% | |||||
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 statement of having ample liquidity for future acquisitions; 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; 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.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/273508
SOURCE: Parkit Enterprise Inc.
