Business
Parkit Enterprise Reports Fiscal 2020 Annual Results; Embarks into Industrial Real Estate Growth Vehicle
Toronto, Ontario--(Newsfile Corp. - February 26, 2021) - Parkit Enterprise Inc. ( TSXV: PKT ...
About this update from Parkit Enterprise Inc.
[{"type":"text","content":"Parkit Enterprise Reports Fiscal 2020 Annual Results; Embarks into Industrial Real Estate Growth VehicleToronto, Ontario--(Newsfile Corp. - February 26, 2021) - Parkit Enterprise Inc. (TSXV: PKT) (\"Parkit\", \"Company\" or the \"Corporation\"), an industrial real estate growth vehicle and parking platform, is pleased to report its fourth quarter and fiscal financial results for the year ended October 31, 2020.Steven Scott, Chairman, commented: \"Parkit continues its transition into an industrial real estate growth vehicle with the purchase of 5600 Finch Ave East and 4390 Paletta Court, and 5610 Finch Ave East scheduled to close in March 2021. In addition, our recent $94 million bought deal and non-brokered private placements set us up well for acquisitions in 2021 and beyond.\"2020 Full Year Audited and Quarterly Results of Legacy Parking Business were Impacted by COVID-19COVID-19 negatively impacted parking operations in the Company's joint ventures starting in the second half of March 2020. While the impact of COVID-19 is expected to be temporary, it is difficult to estimate the nature, timing, and extent of the business and economic impact on the Company's future financial performance.In Q4 2020, the Company recorded a non-cash loss of $3,453,710 (Q4 2019 - $283,103 profit) as its share in the losses from joint ventures, as a result of the pandemic. The loss includes an adjustment of $3,100,858 to the book value of the joint ventures as an impairment based on accounting rules and appraised values. The current appraised values take into account the effects of COVID-19 and are lower than the pre-pandemic valuations. The Company believes the valuations will recover as the effects of the pandemic diminish.The Company's share of profit (loss) from associate was adjusted to take a loss on the value of the contingent receivable as the estimated payout would be lower based on the revised appraised value of one of its joint venture's properties. The appraised value of the property is lower due to the effects of COVID-19, however, the Company expects these values to recover as the effects of the pandemic diminish.The Company reported a net loss of $4,356,009 for the quarter (net loss of $152,778 in 2019) and a net loss of $5,327,509 for the year (net loss of $879,382 for 2019).Financial Information A summary of the operating and finan...