Parkit Enterprise Reports Q2 2025 Results

Executive Summary

• Parkit Enterprise Inc. reported its second quarter and first half 2025 financial results, highlighting a significant turnaround in net income driven by the sale of industrial assets and strong operational performance in its investment property portfolio.
• The company completed the sale of six industrial properties in Winnipeg to PROREIT for total proceeds of $96.5 million, receiving $40 million in cash and 6,451,613 units of PROREIT.
• Key operational metrics showed strong growth, with Net Rental Income (NRI) increasing 24% year-over-year for Q2, Funds from Operations (FFO) rising 51% for Q2, and Stabilized Comparative Properties NOI up 9% year-over-year.

Key Details

• Asset Sale & Strategic Investment:
  • Sold a portfolio of six industrial properties in Winnipeg, Manitoba to PRO Real Estate Investment Trust (PROREIT).
  • Total proceeds: $96,500,000.
  • Consideration structure: $40,000,000 in cash and 6,451,613 units of PROREIT (TSX: PRV.UN).
  • Gain on disposition recorded: $24,804,916.
• Financial Performance (Three Months Ended June 30, 2025):
  • Net Income: $18,159,326 (compared to a net loss of $445,893 in Q2 2024).
  • Net Rental Income (NRI): $5,263,513, a 24% increase from $4,256,765 in Q2 2024.
  • Investment Properties Revenue: $7,750,540, a 22% increase from $6,332,263 in Q2 2024.
  • Funds from Operations (FFO): $2,272,169, a 51% increase from $1,509,102 in Q2 2024.
  • Stabilized Comparative Properties NOI: $3,226,667, a 9% increase from $2,956,613 in Q2 2024.
• Financial Performance (Six Months Ended June 30, 2025):
  • Net Income: $16,638,526 (compared to a net loss of $281,022 in H1 2024).
  • Net Rental Income (NRI): $10,149,549, a 22% increase from $8,287,181 in H1 2024.
  • Investment Properties Revenue: $14,871,681, a 20% increase from $12,390,783 in H1 2024.
  • Funds from Operations (FFO): $3,953,720, a 37% increase from $2,889,071 in H1 2024.
  • Stabilized Comparative Properties NOI: $6,470,316, an 11% increase from $5,813,809 in H1 2024.
• Leasing Activity:
  • Renewed 97,400 square feet of leases at rates 47% higher than previous terms.
  • Signed a new lease for 22,000 square feet at market rates.
• Parking Operations:
  • Recorded a net parking loss of $7,403,186 for Q2 2025 (compared to income of $262,743 in Q2 2024).
  • Impairment recorded in parking joint venture assets due to reduced travel and fair value adjustments.
• Liquidity & Cash Flow:
  • Cash and cash equivalents: Over $11,100,000.
  • Cash flow from operations (H1 2025): $8,393,224 (up from $7,134,985 in H1 2024).
  • Cash from investing activities (H1 2025): $42,490,623 (primarily from asset sales).
  • Cash used in financing activities (H1 2025): $45,222,871 (used for debt repayment and share buybacks).