Parkit Enterprise Reports Q2 2025 Results
Parkit Enterprise (TSXV: PKT) reported strong Q2 2025 results with significant financial improvements and strategic moves. The company completed the sale of six Winnipeg assets for $96.5 million, including a strategic investment in PROREIT worth $40 million.
Key financial highlights include a 22% increase in investment properties revenue to $7.75 million, a 24% rise in net rental income to $5.26 million, and a 51% growth in FFO to $2.27 million for Q2 2025. The company successfully renewed 97,400 square feet of leases at 47% higher rates and maintained strong liquidity with over $11.1 million in cash.
However, Parkit recorded an impairment in its parking assets, resulting in a net parking loss of $7.4 million for Q2 2025, compared to income of $262,743 in Q2 2024.
Parkit Enterprise (TSXV: PKT) ha annunciato risultati solidi per il secondo trimestre del 2025, con significativi miglioramenti finanziari e mosse strategiche. La società ha completato la vendita di sei proprietà a Winnipeg per un totale di 96,5 milioni di dollari, inclusi 40 milioni di dollari investiti strategicamente in PROREIT.
I principali dati finanziari evidenziano un aumento del 22% dei ricavi da proprietà in affitto, che hanno raggiunto 7,75 milioni di dollari, una crescita del 24% del reddito netto da affitti a 5,26 milioni di dollari e un incremento del 51% del FFO, arrivato a 2,27 milioni di dollari nel Q2 2025. L’azienda ha rinnovato con successo 97.400 piedi quadrati di contratti di locazione a tariffe aumentate del 47% e ha mantenuto una forte liquidità con oltre 11,1 milioni di dollari in cassa.
Tuttavia, Parkit ha registrato una svalutazione delle sue attività di parcheggio, che ha portato a una perdita netta di parcheggio di 7,4 milioni di dollari nel Q2 2025, rispetto a un utile di 262.743 dollari nel Q2 2024.
Parkit Enterprise (TSXV: PKT) reportó sólidos resultados en el segundo trimestre de 2025 con mejoras financieras significativas y movimientos estratégicos. La compañía completó la venta de seis activos en Winnipeg por 96,5 millones de dólares, incluyendo una inversión estratégica en PROREIT valorada en 40 millones de dólares.
Los principales indicadores financieros incluyen un aumento del 22% en los ingresos por propiedades de inversión hasta 7,75 millones de dólares, un incremento del 24% en los ingresos netos por alquileres a 5,26 millones de dólares, y un crecimiento del 51% en el FFO, alcanzando 2,27 millones de dólares en el segundo trimestre de 2025. La empresa renovó con éxito 97.400 pies cuadrados de contratos de arrendamiento a tarifas un 47% más altas y mantuvo una sólida liquidez con más de 11,1 millones de dólares en efectivo.
No obstante, Parkit registró un deterioro en sus activos de estacionamiento, lo que resultó en una pérdida neta por estacionamiento de 7,4 millones de dólares en el segundo trimestre de 2025, en comparación con una ganancia de 262.743 dólares en el mismo periodo de 2024.
Parkit Enterprise (TSXV: PKT)는 2025년 2분기에 강력한 실적을 보고하며 재무 개선과 전략적 조치를 발표했습니다. 회사는 위니펙에 있는 6개 자산을 총 9,650만 달러에 매각했으며, 이 중 4,000만 달러 규모의 PROREIT에 대한 전략적 투자가 포함되어 있습니다.
주요 재무 하이라이트로는 투자 부동산 수익이 22% 증가하여 775만 달러를 기록했고, 순임대 수익은 24% 상승해 526만 달러, 2분기 FFO는 51% 성장하여 227만 달러에 달했습니다. 회사는 97,400평방피트에 달하는 임대 계약을 47% 높은 임대료로 성공적으로 갱신했으며, 현금으로 1,110만 달러 이상의 강력한 유동성을 유지했습니다.
하지만 Parkit은 주차 자산에 대한 손상차손을 기록하여 2025년 2분기에 740만 달러의 순 주차 손실을 냈으며, 이는 2024년 2분기 262,743달러의 수익과 비교됩니다.
Parkit Enterprise (TSXV : PKT) a annoncé de solides résultats pour le deuxième trimestre 2025, avec des améliorations financières significatives et des actions stratégiques. La société a finalisé la vente de six actifs à Winnipeg pour un montant de 96,5 millions de dollars, incluant un investissement stratégique dans PROREIT d’une valeur de 40 millions de dollars.
Les principaux points financiers montrent une augmentation de 22% des revenus issus des propriétés d’investissement, atteignant 7,75 millions de dollars, une hausse de 24% du revenu net locatif à 5,26 millions de dollars, et une croissance de 51% du FFO à 2,27 millions de dollars pour le deuxième trimestre 2025. La société a renouvelé avec succès 97 400 pieds carrés de baux à des tarifs supérieurs de 47% et a maintenu une forte liquidité avec plus de 11,1 millions de dollars en liquidités.
Cependant, Parkit a enregistré une dépréciation de ses actifs de stationnement, entraînant une perte nette liée au stationnement de 7,4 millions de dollars au deuxième trimestre 2025, contre un bénéfice de 262 743 dollars au deuxième trimestre 2024.
Parkit Enterprise (TSXV: PKT) meldete starke Ergebnisse für das zweite Quartal 2025 mit erheblichen finanziellen Verbesserungen und strategischen Schritten. Das Unternehmen schloss den Verkauf von sechs Immobilien in Winnipeg für 96,5 Millionen Dollar ab, darunter eine strategische Investition in PROREIT im Wert von 40 Millionen Dollar.
Wichtige finanzielle Highlights umfassen einen 22%-Anstieg der Einnahmen aus Anlageimmobilien auf 7,75 Millionen Dollar, einen 24%-Zuwachs beim Nettomietertrag auf 5,26 Millionen Dollar und ein 51%-Wachstum beim FFO auf 2,27 Millionen Dollar im zweiten Quartal 2025. Das Unternehmen erneuerte erfolgreich Mietverträge über 97.400 Quadratfuß zu 47% höheren Preisen und behielt eine starke Liquidität mit über 11,1 Millionen Dollar in bar bei.
Allerdings verzeichnete Parkit eine Wertminderung bei seinen Parkanlagen, was zu einem Nettoverlust aus Parkgeschäften von 7,4 Millionen Dollar im zweiten Quartal 2025 führte, verglichen mit einem Gewinn von 262.743 Dollar im zweiten Quartal 2024.
- Sale of six Winnipeg properties for $96.5 million, including $40 million strategic investment in PROREIT
- Investment properties revenue increased 22% to $7.75 million in Q2 2025
- Net rental income grew 24% to $5.26 million
- FFO increased 51% to $2.27 million
- Successful lease renewals of 97,400 square feet at 47% higher rates
- Strong liquidity position with over $11.1 million in cash
- Same property NOI increased 9% year-over-year
- Significant parking assets impairment leading to $7.4 million net parking loss in Q2 2025
- Higher financing costs impacting operations
- Reduced travel affecting parking operations performance
Toronto, Ontario--(Newsfile Corp. - August 7, 2025) - Parkit Enterprise Inc. (TSXV: PKT) ("Parkit" or the "Company"), today reported the Company's second quarter 2025 results. Steven Scott, Chair of Parkit, commented:
"Parkit is pleased to report strong performance for Q2 2025, highlighted by several key achievements and strategic moves. We completed the sale of six Winnipeg assets, realizing a substantial gain, and made a strategic investment in PROREIT. Our financial metrics showed positive trends, with net rental income and margins improving, leading to a
2025 Q2 Results and Recent Business Highlights
Sale of Assets and Strategic Investment. Parkit completed the sale of a portfolio of six industrial properties located in Winnipeg, Manitoba to PRO Real Estate Investment Trust ("PROREIT") (TSX: PRV.UN) for proceeds of
$96,500,000. As part of the transaction, Parkit received$40 million of the proceeds in the form of 6,451,613 units of PROREIT.Investment properties revenue and net rental income. Investment properties revenue and net rental income increased as the Company signed new leases and streamlined operations. Investment properties revenue for the three and six months ended June 30, 2025 rose
22% and20% to$7,750,540 and$14,871,681 , compared to$6,332,263 and$12,390,783 for the three and six months ended June 30, 2024. Net rental income ("NRI"), increased by24% and22% to$5,263,513 and$10,149,549 , for the three and six months ended June 30, 2025 compared to$4,256,765 and$8,287,181 for the three and six months ended June 30, 2024.Stabilized Comparative Properties NOI. Stabilized Comparative Properties NOI, a Non-IFRS Measure, increased by
9% and11% , to$3,226,667 and$6,470,316 , for the three and six months ended June 30, 2025 compared to$2,956,613 and$5,813,809 , for the three and six months ended June 30, 2024, as the Company executed renewals with tenants and maximized occupancy.Leasing at market rental spreads. During the three months ended June 30, 2025, Parkit renewed 97,400 square feet on two properties at
47% higher rates and signed a new lease for 22,000 square feet with one tenant at market rates.Funds from operations ("FFO") increased for the period. The FFO, a Non-IFRS Measure, increased by
51% and37% , to$2,272,169 and$3,953,720 , for the three and six months ended June 30, 2025 compared to FFO of$1,509,102 and$2,889,071 , for the three and six months ended June 30, 2024. The increase in FFO was a result of additional NRI from investment properties, additional dividend income from the PROREIT investment, offset by higher financing costs.Liquidity position. The Company maintained a strong liquidity position with cash and cash equivalents of over
$11,100,000 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
$8,393,224 for the six months ended June 30, 2025, compared to$7,134,985 received for the six months ended June 30, 2024. The increase in cash from operating activities is a result of increased revenues. Parkit received cash of$42,490,623 in investing activities for the six months ended June 30, 2025, compared to cash used of$7,382,942 from investing activities for the six months ended June 30, 2024. The higher net cash received from investing activities is the cash received on the sale of certain assets this period compared to an acquisition done in the same comparative period. Parkit used net cash of$45,222,871 from financing activities for the six months ended June 30, 2025, compared to cash used of$5,275,163 for six months ended June 30, 2024. The increase in cash used was a result of proceeds used to repay its debt financing and the amounts paid for Company shares purchased under its Normal Course Issuer Bid, repayment of debt, interest paid and debt issuance costs.Net (loss) income for the period. The Company had net income of
$18,159,326 and$16,638,526 for the three and six months ended June 30, 2025, compared to net loss of$445,893 and$281,022 , for the three and six months ended June 30, 2024. The change is the result of the gain on the sale of its investment properties, higher net rental income, offset by parking loses, unrealized losses from derivative financial instruments, depreciation and finance costs.Net parking (loss) income for the period. Net parking income includes parking properties income and the share of loss from equity accounted investees. The net parking loss was
$7,403,186 and$7,599,887 for the three and six months ended June 30, 2025, compared to income of$262,743 and$321,736 for the three and six months ended June 30, 2024. The Company recorded an impairment in its parking joint venture for the period ending June 30, 2025 to mark the value down to its fair value.
Further Information
For comprehensive disclosure of Parkit's performance for the three and six months ended June 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 and six months ended June 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 table indicates how Parkit reconciles FFO to the nearest IFRS measure.
| Three months ended June 30, 2025 | Three months ended June 30, 2024 | Change in $ | Change in % | |||||||||
| Net income (loss) and comprehensive income (loss) | $ | 18,159,326 | $ | (445,893 | ) | $ | 18,605,219 | |||||
| Add / (deduct): | ||||||||||||
| Share of loss (income) from equity-accounted investees | 7,420,782 | (43,634 | ) | 7,464,416 | ||||||||
| Depreciation | 2,386,474 | 2,190,338 | 196,136 | |||||||||
| Realized and unrealized gain on derivative financial instruments | (905,656 | ) | (220,453 | ) | (685,203 | ) | ||||||
| Foreign exchange (gain) loss | (241,906 | ) | 28,744 | (270,650 | ) | |||||||
| Gain on disposition | (24,804,916 | ) | - | (24,804,916 | ) | |||||||
| Unrealized gain or loss on Investments at fair value | 258,065 | - | 258,065 | |||||||||
| FFO | $ | 2,272,169 | $ | 1,509,102 | $ | 763,067 | ||||||
| FFO per share | $ | 0.01 | $ | 0.01 | $ | 0.00 |
| Six months ended June 30, 2025 | Six months ended June 30, 2024 | Change in $ | Change in % | |||||||||
| Net income (loss) and comprehensive income (loss) | $ | 16,638,526 | $ | (281,022 | ) | $ | 16,919,548 | |||||
| Add / (deduct): | ||||||||||||
| Share of loss from equity-accounted investees | 7,600,819 | 78,804 | 7,522,015 | |||||||||
| Depreciation | 4,777,947 | 4,313,472 | 464,475 | |||||||||
| Realized and unrealized loss (gain) on derivative financial instruments | (270,502 | ) | (1,310,626 | ) | 1,040,124 | |||||||
| Foreign exchange (gain) loss | (246,219 | ) | 88,443 | (334,662 | ) | |||||||
| Gain on disposition | (24,804,916 | ) | - | (24,804,916 | ) | |||||||
| Unrealized gain or loss on Investments at fair value | 258,065 | - | 258,065 | |||||||||
| FFO | $ | 3,953,720 | $ | 2,889,071 | $ | 1,064,649 | ||||||
| FFO per share | $ | 0.02 | $ | 0.01 | $ | 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 or disposed on or after the beginning of the prior year period. For the three months ended June 30, 2025 and June 30, 2024, the Company excludes investment properties acquired or disposed 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 June 30, 2025 | Three months ended June 30, 2024 | Change in $ | Change in % | |||||||||
| Stabilized comparative properties NOI | $ | 3,226,667 | $ | 2,956,613 | $ | 270,054 | ||||||
| NOI from newly acquired properties | 282,613 | - | 282,613 | |||||||||
| NOI from disposed properties | 1,497,897 | 1,226,358 | 271,539 | |||||||||
| Straight line rent | 249,310 | 173,560 | 75,750 | |||||||||
| NOI from unstabilized properties | 7,026 | (99,766 | ) | 106,792 | ||||||||
| Net rental income | $ | 5,263,513 | $ | 4,256,765 | $ | 1,006,748 |
| Six months ended June 30, 2025 | Six months ended June 30, 2024 | Change in $ | Change in % | |||||||||
| Stabilized comparative properties NOI | $ | 6,470,316 | $ | 5,813,809 | $ | 656,507 | ||||||
| NOI from newly acquired properties | 573,295 | - | 573,295 | |||||||||
| NOI from disposed properties | 2,714,545 | 2,347,488 | 367,057 | |||||||||
| Straight line rent | 461,476 | 367,480 | 93,996 | |||||||||
| NOI from unstabilized properties | (70,083 | ) | (241,596 | ) | 171,513 | |||||||
| Net rental income | $ | 10,149,549 | $ | 8,287,181 | $ | 1,862,368 |
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; Parkit's expectations to increase revenue, NRI and FFO for 2025; Parkits ongoing efforts to optimize its portfolio and create value, while carefully managing risks and capital allocation in the current market environment; 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.
The expectations to continue to be disciplined on acquisitions and 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/261764
FAQ
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