VANCOUVER, Oct. 19, 2018 /CNW/ - Parkit Enterprise Inc.
("Parkit" or the "Company") (TSXV: PKT; OTCQX: PKTEF)
is extremely pleased to announce it has reached its 15% IRR target
owed to the Managing Member of the OP Holdings JV LLC (the "Joint
Venture"). This occurred due to the sale of Expresso Airport
Parking (the "Sale"). Due to the fulfillment of this 15% IRR
hurdle, cash flows from future sales and refinances within the
Joint Venture will flow to PAVe, an entity in which Parkit has an
82.43% interest, until PAVe has received a 15% IRR. PAVe is a
29.45% equity member of OP Holdings JV LLC. For more
information on the Joint Venture and the priority of future
payments, please refer to the OP Holdings JV LLC, posted to SEDAR
on April 23, 2018.
Furthermore, as a result of the Sale, Parkit has received sale
proceeds of US$245,025.38,
representing the amount owed to Parkit over and above the Joint
Venture 15% IRR Hurdle.
"This is a major development in Parkit's history. For the
first time since entering into the Joint Venture in 2015, Parkit
will be the beneficiary of asset sales and refinances that occur
within the Joint Venture. From now on, proceeds from sales or
refinances of the four assets within the Joint Venture will flow to
PAVe, an entity in which Parkit holds an 82.43% interest," stated
David Delaney, Parkit's Executive
Chairman.
Parkit would like to congratulate its shareholders as well as
its partners, Och-Ziff Real Estate and Propark America, on the
completion of this milestone.
For further information on the Company please see the Company's
financial statements and related management's discussion and
analysis for the year ended October 31,
2017 and the nine month period ended July 31, 2018 available under the Company's
profile on www.sedar.com.
About PARKIT
Parkit Enterprise Inc. is engaged in the acquisition,
optimization and asset management of income producing parking
facilities across the United
States. The Company's shares are listed on TSX-V (Symbol:
PKT) and on the OTCQX (Symbol: PKTEF).
Neither 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.
Certain statements in this release are forward-looking
statements. Forward-looking statements consist of statements that
are not purely historical, including any statements regarding
beliefs, plans, expectations or intentions regarding the
future. Such statements are subject to risks and
uncertainties that may cause actual results, performance or
developments to differ materially from those contained in the
statements. No assurance can be given that any of the events
anticipated by the forward-looking statements will occur or, if
they do occur, what benefits the Company will obtain from them, if
any.
NON-GAAP FINANCIAL MEASURES
This release contains a non-GAAP financial measure. The
definition and calculation of this non-GAAP financial measure may
differ from the definitions and methodologies used by other
companies and, accordingly, may not be comparable. The non-GAAP
financial measure referred to below should not be considered an
alternative to net income as an indication of our performance. In
addition, this non-GAAP financial measure does not represent cash
generated from operating activities in accordance with GAAP and
therefore should not be considered as an alternative measure of
liquidity or as indicative of cash available to fund cash
needs.
Levered Internal Rate of Return ("IRR") is calculated as the
internal rate of return on the Joint Venture's equity investment in
the property considering the timing and amounts of capital
contributions paid, and all distributions received.
Management believes that the levered IRR achieved during the
period a property is owned by the Joint Venture is useful because
it is one indication of the gross value created by the Joint
Venture's acquisition, management and ultimate sale of a property,
before the impact of Joint Venture's overhead and taxes. However,
leveraged IRR is not a substitute for net income as a measure of
our performance.
The levered IRR achieved on the property as cited in this
release should not be viewed as an indication of the gross value
created with respect to other properties owned by the Joint
Venture, and the Company does not represent that the Joint Venture
will achieve similar levered IRRs upon the disposition of other
properties. The levered IRR cited in this press release is
from the perspective of the Joint Venture, in which the Company has
an economic interest.
Under GAAP, the Company recognizes its investment in the Joint
Venture using the equity method whereby the carrying value of the
investment is adjusted for the Company's share of the profit and
loss of the Joint Venture, and decreased for any distributions
received by the Joint Venture. All amounts reported by the
Company from the Joint Venture are translated into Canadian
dollars. The gain on the disposition of the property will
have an impact on the amount reported by the Company for its share
of the GAAP net profit from the Joint Venture.
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SOURCE Parkit Enterprise Inc.
