Parkit Enterprise Reports Q3 2026 Results

Retained-property rental growth accompanied lower nine-month revenue following property dispositions completed in 2025.

Rhea-AI Summary

Parkit Enterprise (PKTEF) reported third-quarter investment properties revenue of $6,332,699, up 17% from the same period in 2025. Net rental income rose 10% to $4,426,044. Funds from operations (FFO), a non-IFRS operating measure, increased 18% to $2,643,801, or $0.19 per share versus $0.16.

The quarterly net loss was $1,677,062, or $0.12 per share, versus income of $1,323,169, or $0.09 per share, primarily reflecting an unrealized loss on PROREIT investments. For the nine months ended September 30, 2026, revenue fell 10% to $18,270,133, while retained-portfolio revenue grew 15%. Nine-month net income declined to $3,289,243 from $17,961,695; the prior period included a property-disposal gain. Stabilized comparative properties net operating income rose 7% in the quarter. Lease renewals covered approximately 14,143 square feet at a 50% average rate increase. Cash ended the period at $5,691,113.

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Positive

• Moderate pointThird-quarter investment properties revenue rose 17% to $6,332,699 year over year.
• Moderate pointThird-quarter net rental income increased 10% to $4,426,044 year over year.
• Moderate pointThird-quarter non-IFRS funds from operations increased 18% to $2,643,801 versus $2,236,385.
• Moderate pointThird-quarter stabilized comparative properties net operating income increased 7% to $3,498,393 year over year.
• Minor pointRetained-portfolio revenue increased 18% in Q3 and 15% over nine months versus 2025.

8 minor points

• Minor pointNine-month retained-property net rental income rose 15% to $12,951,096 versus $11,299,215.
• Minor pointNine-month non-IFRS funds from operations increased 22% to $7,578,817 versus $6,190,105.
• Minor pointThird-quarter non-IFRS FFO per share rose 19% to $0.19 versus $0.16.
• Minor pointNine-month non-IFRS FFO per share rose 29% to $0.54 versus $0.42.
• Minor pointNine-month stabilized comparative properties net operating income increased 5% to $10,311,167 year over year.
• Minor pointLease renewals with one tenant covered approximately 14,143 square feet, averaging a 50% rate increase.
• Minor pointDebt exposure was 91% fixed-rate.
• Minor point. Forward-looking: it has not happened yet and may not happen.Parkit plans to pursue acquisitions and further revenue, rental-income and FFO growth during the year's balance.

Negative

• Moderate pointThird-quarter net loss reached $1,677,062, or $0.12 per share, versus income of $1,323,169, or $0.09.
• Minor pointNine-month net income fell to $3,289,243, or $0.24 per share, from $17,961,695, or $1.23.
• Minor pointNine-month investment properties revenue declined 10% to $18,270,133 versus $20,306,661.
• Minor pointNine-month net rental income declined 9% to $12,951,096 versus $14,172,161.
• Minor pointParking operations delivered weaker results, partially offsetting the factors increasing FFO.

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Toronto, Ontario--(Newsfile Corp. - November 5, 2026) - Parkit Enterprise Inc. (TSXV: PKT) ("Parkit" or the "Company"), today reported the Company's third quarter 2026 results. Carey Chow, CFO of Parkit, commented:

"Our stabilized comparative properties NOI grew 7% and FFO grew 18% in the quarter, reflecting the strength of our portfolio. We renewed leases at an average rental spread of 50%. With 91% of our debt at fixed rates and a strong liquidity position, we are well positioned to pursue disciplined acquisitions and further grow revenue, NRI and FFO in the balance of the year."

2026 Q3 Results and Recent Business Highlights

• Investment properties revenue and net rental income. Investment properties revenue for the three and nine months ended September 30, 2026 increased by 17% and decreased by 10% to $6,332,699 and $18,270,133, compared to $5,434,980 and $20,306,661 for the three and nine months ended September 30, 2025. Net rental income ("NRI") increased by 10% and decreased by 9% to $4,426,044 and $12,951,096, for the three and nine months ended September 30, 2026 compared to $4,022,612 and $14,172,161 for the three and nine months ended September 30, 2025. The year-over-year changes in investment properties revenue and net rental income reflect property dispositions completed in 2025 and rental growth within the retained portfolio.

Parkit's retained portfolio had revenue of $6,332,699 and $18,270,133, for the three and nine months ended September 30, 2026, compared to $5,369,872 and $15,926,449 for the three and nine months ended September 30, 2025, an increase of 18% and 15%. The net rental income relating to the retained properties was $4,426,044 and $12,951,096 for the three and nine months ended September 30, 2026 compared to $4,022,612 and $11,299,215 for the three and nine months ended September 30, 2025, an increase of 10% and 15%. The increase in net rental income from retained investment properties reflects lease renewals, new leases at market rates and the contribution from properties acquired in 2025.

• Stabilized comparative properties NOI. Stabilized Comparative Properties NOI, a Non-IFRS Measure, increased by 7% and 5%, to $3,498,393 and $10,311,167, for the three and nine months ended September 30, 2026 compared to $3,282,181 and $9,797,214, for the three and nine months ended September 30, 2025, as the Company executed lease renewals and new leases at higher rental rates.

• Leasing at market rental spreads. During the three months ended September 30, 2026, Parkit renewed approximately 14,143 square feet with one tenant, with an average increase in lease rate of 50%.

• Funds from operations ("FFO") increased for the period. The FFO, a Non-IFRS Measure, for the three and nine months ended September 30, 2026 increased by 18% and 22% to $2,643,801 and $7,578,817, compared to FFO of $2,236,385 and $6,190,105 for the three and nine months ended September 30, 2025. The FFO per share, a Non-IFRS Measure, for the three and nine months ended September 30, 2026 increased by 19% and 29% to $0.19 and $0.54, compared to FFO per share of $0.16 and $0.42 for the three and nine months ended September 30, 2025. The increase in FFO was primarily attributable to higher net rental income from retained investment properties and increased distribution income from PROREIT, partially offset by weaker parking operating results.

• Net (loss) income. Parkit reported a net loss of $1,677,062, or $0.12 per share, for the three months ended September 30, 2026, compared to net income of $1,323,169, or $0.09 per share, in the corresponding period of 2025. The quarterly decrease primarily reflected an unrealized loss on PROREIT investments, compared to an unrealized gain in the prior-year quarter. For the nine months ended September 30, 2026, net income was $3,289,243, or $0.24 per share, compared to $17,961,695, or $1.23 per share, in the corresponding period of 2025. The prior-year nine-month results included a $24,804,916 gain on dispositions of investment properties.

• Liquidity position. The Company maintained a strong liquidity position with cash of $5,691,113 at the end of the period. The Company has cash on hand and significant availability on its credit facilities to fund future acquisitions.

Further Information
For comprehensive disclosure of Parkit's performance for the three and nine months ended September 30, 2026 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 nine months ended September 30, 2026 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 a measure of operating performance which highlights 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 shows how Parkit reconciles FFO to the nearest IFRS measure.

		Three months ended September 30, 2026			Three months ended September 30, 2025			Nine months ended September 30, 2026			Nine months ended September 30, 2025
Net (loss) income and comprehensive (loss) income	$	(1,677,062	)	$	1,323,169		$	3,289,243		$	17,961,695
Add / (deduct):
Share of loss (income) from equity-accounted investees		78,418			(195,528	)		155,707			7,405,291
Depreciation		1,717,575			1,777,770			5,140,037			6,555,717
Realized and unrealized (gain) loss on derivative financial instruments		(708,751	)		40,163			(558,630	)		(230,339	)
Foreign exchange loss (gain)		79,240			119,914			226,286			(126,305	)
Gain on disposition		-			-			-			(24,804,916	)
Unrealized loss (gain) on investments at fair value		3,332,335			(829,103	)		(810,805	)		(571,038	)
Income tax (recovery) expense		(177,954	)		-			136,979			-
FFO	$	2,643,801		$	2,236,385		$	7,578,817		$	6,190,105
FFO per share (basic)	$	0.19		$	0.16		$	0.54		$	0.42

 

"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 Company'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 nine months, the Company excludes investment properties acquired on or after the beginning of the prior year period. For the three and nine months ended September 30, 2026 and September 30, 2025, the Company excludes investment properties acquired or disposed on or after January 1, 2025. The Stabilized Comparative Properties NOI is calculated by taking NOI and excluding the impact of NOI from acquisitions, dispositions, 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, 2026			Three months ended September 30, 2025			Nine months ended September 30, 2026			Nine months ended September 30, 2025
Stabilized comparative properties NOI	$	3,498,393		$	3,282,181		$	10,311,167		$	9,797,214
NOI from newly acquired properties		491,723			298,598			1,278,161			539,238
NOI from disposed properties		-			327,832			-			3,148,208
Straight line rent		128,163			107,028			416,327			568,504
NOI from unstabilized properties		307,765			6,973			945,441			118,997
Net rental income	$	4,426,044		$	4,022,612		$	12,951,096		$	14,172,161

 

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 belief that it is well positioned to pursue disciplined acquisitions and further grow revenue, NRI and FFO in the balance of the year; Parkit's belief that it has adequate cash on hand and availability on its credit facilities to fund future acquisitions; 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.

Parkit's belief that it is well positioned to further grow revenue, NRI and FFO in the balance of the year 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/322786

FAQ

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What were Parkit Enterprise's Q3 2026 revenue and earnings?

Parkit reported investment properties revenue of $6,332,699 and a net loss of $1,677,062, or $0.12 per share, for the three months ended September 30, 2026. Revenue increased 17% year over year, while the comparable quarter recorded net income of $1,323,169, or $0.09 per share.

How much did Parkit Enterprise's FFO grow in Q3 2026?

Non-IFRS funds from operations increased 18% to $2,643,801 in the third quarter, compared with $2,236,385 a year earlier. FFO per share increased 19% to $0.19 from $0.16.

How does Parkit calculate stabilized comparative properties net operating income?

Parkit calculates this non-IFRS measure by excluding income from acquisitions, dispositions, straight-line rent and unstabilized properties from net operating income. For the three- and nine-month comparisons, it excludes properties acquired or disposed of on or after January 1, 2025. The measure has no standardized IFRS meaning and may not be comparable across companies.