tsx.v: pkt otcqx: pktef · nashville fly-away airport parking, assume that the property is sold for...

I N V E S T O R P R E S E N T A T I O N

T S X . V : P K T O T C Q X : P K T E F

A P R I L 2 0 1 9

I N V E S T O R P R E S E N T A T I O N 2

This presentation and the information contained herein, (“Presentation”) is being issued by Parkit Enterprise Inc. (the “Company”) for information purposes only. This Presentation is not for release,

distribution or publication into or in the United States or any other jurisdiction where applicable laws prohibit its release, distribution or publication. Reliance on this Presentation for the purpose of

engaging in any investment activity may expose an individual to a significant risk of losing all funds invested.

This Presentation is not a prospectus, offering memorandum, advertisement, or solicitation and does not constitute or form part of, and should not be construed as, an offer or invitation to sell or

any solicitation of any offer to purchase or subscribe for any securities of the Company in Canada, the United States or any other jurisdiction. Neither this Presentation, nor any part of it nor anything

contained or referred to in it, nor the fact of its distribution, should form the basis of or be relied on in connection with or act as an inducement in relation to a decision to purchase or subscribe for or

enter into any contract or make any other commitment whatsoever in relation to any securities of the Company. No representation or warranty, expressed or implied, is given by or on behalf of the

Company, its directors and affiliates or any other person as to the accuracy or completeness of the information or opinions contained in this Presentation and no liability whatsoever is accepted by the

Company, its directors and affiliates or any other person for any loss howsoever arising, directly or indirectly, from any use of such information or opinions or otherwise arising in connection therewith.

This Presentation does not constitute a recommendation regarding the Company or an investment therein. The Company has not been and will not be registered under the United States Investment

Company Act of 1940, as amended or the US Securities Act of 1933, as amended.

No reliance may be placed for any purpose whatsoever on the information or opinions contained in this Presentation or on its completeness, accuracy or fairness. Readers should not treat the

contents of this Presentation as advice relating to legal, taxation or investment matters, and must make their own assessments concerning these and other consequences of the various investments,

including the merits of investing and the risks. Readers are advised to consult their own personal legal, tax and accounting advisors and to conduct their own due diligence and agree to be bound by

the limitations of this disclaimer.

Certain statements, beliefs and opinions in this Presentation (including those contained in graphs, tables and charts) are forward-looking, which reflect the Company’s current expectations and

projections about future events. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from

those expressed or implied by the forward-looking statements. These risks, uncertainties and assumptions could adversely affect the outcome and financial effects of the plans and events described

herein. Forward-looking statements contained in this Presentation regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future.

The Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Readers should not place

undue reliance on forward-looking statements, which speak only as of the date of this Presentation.

All dollar amounts referenced in this presentation are in Canadian dollars unless otherwise noted.

D ISCLAIMER


T S X . V : P K T O T C Q X : P K T E F

PARKIT IS A NICHE REAL ESTATE COMPANY.

C O R P O R A T E O V E R V I E W

P A R K I T E N T E R P R I S E I N C .

We currently own five parking assets that are located in:

• New Haven, Connecticut

• East Granby, Connecticut

• Nashville, Tennessee

• Denver, Colorado

We recently disposed of parking assets in:

• Jacksonville, Florida (24% IRR) (sold in July, 2018)

• Oakland, California (42% IRR) (sold in October, 2018)

OUTSTANDING SHARES 34,854,257

CURRENT SHARE PRICE $0.315

MARKET CAPITALIZATION $10,979,0901

1. Market Capitalization is based on the closing price of $0.315 of the Company’s common shares on the TSX Venture Exchange on March 31, 2019.


CURRENT ASSET BASE

5PARKING ASSETS

PARKIT CURRENTLY OWNS ASSETS WITH SEVERAL JOINT

VENTURE PARTNERS, INCLUDING OCH-ZIFF REAL ESTATE, AND

PROPARK AMERICA.

USD $64.1 MAPPRAISED VALUE



FIGURES IN USD. BASED ON OWNERSHIP OF THE FIVE ASSETS CURRENTLY

OWNED – CANOPY, EXPRESSO, Z PARK, CHAPEL, RICCIO AND NASHVILLE

FLY AWAY PARKING.

PARKIT OWNS AN INDIRECT 24.39% EQUITY INTEREST IN OP HOLDINGS JV LLC, WHICH IN TURN OWNS:

Z-PARKING OFF-AIRPORT PARKING, THE RICCIO LOT, THE CHAPEL SQUARE LOT, AND CANOPY OFF-AIRPORT PARKING.

PARKIT ALSO OWNS AN INDIRECT 50% EQUITY INTEREST IN NASHVILLE FLY-AWAY AIRPORT PARKING.

CURRENT PORTFOLIO

EXPRESSO (SOLD)

OAKLAND, CAOFF-AIRPORT

TERRA PARK (SOLD)

JACKSONVIILLE, FLCOMMERCIAL DISTRICT


CANOPYDENVER, COOFF-AIRPORT

NASHVILLE FLYAWAYNASHVILLE, TN

AIRPORT PARKING

Z PARKINGEAST GRANBY, CTOFF-AIRPORT

RICCIO LOTNEW HAVEN, CTUNIVERSITY & MEDICAL FACILITY

CHAPEL SQUARENEW HAVEN, CTCOMMERCIAL DISTRICT

$61.8MAGGREGATE PURCHASE

PRICES

$64.1MVALUE

$4.4MCY 2018 NET OPERATING

INCOME

$14.25M CY 2018 REVENUE

7.1%CAP RATE ON

TOTAL COST(Includes $8.6M in paid earnouts

after initial acquisition)


RECENT SALESP A R K I T E N T E R P R I S E I N C .

• Acquired by Parkit and its partners for USD $18.6M in 2014

• Bought by OP Holdings JV in 2015 for USD 19.2M

• Sold in 2018 for USD $36.1M

• Achieved an IRR to Equity of 42% for the JV

• Services Oakland International Airport

• 1,899 stalls

EXPRESSO AIRPORT PARKINGO A K L A N D , C A L I F O R N I A

• Bought by OP Holdings JV for US$6.4M in 2015

• Sold for US$6.8M in 2018 plus an additional sum of USD

$750,000 paid monthly over the course of a year

• Achieved an IRR to Equity of 24% for the JV

• Services Jacksonville Central Business District

TERRA PARK PARKING FACIL ITYJACKSONVILLE, FLORIDA


EXPRESSO AIRPORT PARKINGOAKLAND, CALIFORNIA


TERRA PARK PARKING FACIL ITYJACKSONVILLE, FLORIDA


DUE TO THE SALE OF THESE TWO ASSETS WITHIN THE OP HOLDINGS JV LLC:

Through its Joint Venture, Parkit has now fulfilled its 15% IRR Hurdle due to Och Ziff Real Estate.

As a result, all proceeds from asset sales and refinancings from the OP Holdings JV LLC will now flow to PAVe*.

* PAVe, is an entity owned 82.83% by Parkit.

D ISPOSITIONSP A R K I T E N T E R P R I S E I N C .

CURRENT PORTFOLIOP A R K I T E N T E R P R I S E I N C .


CURRENT PROPERTIESP A R K I T E N T E R P R I S E I N C .

2010CANOPY AIRPORT PARKING FACILITYDENVER, COLORADO

• 2018 Revenue of USD $9.03M

• 2018 NOI of USD $3.1M

• Developed by Parkit and its partners for a total cost of CAD

$18.0M in 2010.

• Refinanced in 2017 for an appraised value of USD $37.6M

• Sold to the OP Holdings JV LLC for CAD $27.1 million (plus

contingent earn-outs) in April 2015

• Owned by OP Holdings JV LLC in which Parkit owns an

indirect 24.39% equity interest

• Services Denver International Airport

• Land lease expires in 2035

• 4,200 Stalls

I N V E S T O R P R E S E N T A T I O N 12I N V E S T O R P R E S E N T A T I O N 12

CANOPY AIRPORT PARKINGDENVER, COLORADO



2015RICCIO LOT HOSPITAL PARKINGNEW HAVEN, CONNECTICUT

2015CHAPEL SQUARE LOTNEW HAVEN, CONNECTICUT

• 2018 Revenue of USD $359K - 2018 NOI of USD $274K

• Acquired by OP Holdings JV for USD $4.3M in 2015

• Refinanced in 2017 at an appraised value of USD $4.5M

• Property owned by OP Holdings JV LLC in which Parkit owns an indirect

24.39% equity interest.

• Services the Smilow Cancer Hospital and the Yale New Haven Children’s

Hospital

• 2018 Revenue of USD $1.0M - 2018 NOI of USD $371K

• Refinanced in 2017 at an appraised value of $10.5M

• Acquired by OP Holdings JV in 2015 for $10.5M

• Property owned by OP Holdings JV LLC in which Parkit owns an

indirect 24.39% equity interest.


R ICCIO LOT HOSPITAL PARKINGNEW HAVEN, CONNECTICUT


CHAPEL SQUARE LOTNEW HAVEN, CONNECTICUT



2015Z-PARKINGEAST GRANBY, CONNECTICUT

2015NASHVILLE FLY-AWAY AIRPORT PARKINGNASHVILLE, TENNESSEE


• 2018 NOI of USD $258K

• Purchased by OP Holdings JV LLC in 2015 for $4.0M

• Refinanced in 2017 for an appraised value of USD $3.5M

• Property owned by OP Holdings JV LLC in which Parkit owns

an indirect 24.39% equity interest.


• 2018 NOI of USD $429K

• Purchased by Propark and Parkit in 2015 for USD $7.8M

• 2018 Appraised Value of USD $7.85M based on income

capitalization approach, USD $8.89M based on sales

comparison approach.

• Parkit holds an indirect 50% interest in the property


Z-PARKINGEAST GRANBY, CONNECTICUT


NASHVILLE FLY-AWAY AIRPORT PARKINGNASHVILLE, TENNESSEE

N E T A S S E T V A L U E C A L C U L A T I O N

S C E N A R I O 1

S a l e i n J a n u a r y 2 0 2 1 b a s e d o n m o s t

r e c e n t l y A p p r a i s e d V a l u e s


Based on our most recently Appraised Prices (2017 and 2018) and assuming a sale of our assets in January 2021, we estimate Parkit would have an after-tax Net Asset Value per Share of

approximately $0.65.*

* THE DISCLOSURE REGARDING THE POTENTIAL NET ASSET VALUE CONSTITUTES FORWARD LOOKING FINANCIAL INFORMATION. THIS INFORMATION BY ITS NATURE MAY NOT BE ACCURATE AND IS BASED ON A NUMBER OF ASSUMPTIONS SET FORTH IN THIS PRESENTATION. READERS ARE CAUTIONED THAT THE ACTUAL RESULTS MAY VARY FROM THE ASSUMPTIONS SET FORTH IN THIS PRESENTATION.


NET ASSET VALUE CALCULATIONSCENARIO 1 - Sa le in January 2021 at Appraised Pr ices

ASSUME THAT THE FOUR JV ASSETS (OP HOLDINGS ASSETS) ARE SOLD AT MOST RECENT APPRAISED PRICES IN JANUARY 2021:

BASED ON THE OP HOLDINGS JV LLC AGREEMENT, THE WATERFALL WOULD PRODUCE THE FOLLOWING CASH FLOWS TO PARKIT2:

BASED ON THE LOWER RANGE OF THE MOST RECENT APPRAISED VALUE FOR NASHVILLE FLY-AWAY AIRPORT PARKING, ASSUME THAT THE PROPERTY IS SOLD FOR USD$8M:

1. ASSUMES THAT PROPERTIES HAVE THE SAME AMOUNT OF DEBT AS THEY HAD IN JANUARY 2019. IN REALITY, THE LOAN AMOUNTS SHOULD BE LOWER DUE TO THE AMORTIZATION OF THE LOANS.

2. AS OF OCTOBER 2018, PARKIT HAS FULLFILLED ITS 15% IRR HURDLE TO OCH ZIFF REAL ESTATE, MEANING THAT ALL PROCEEDS FROM ASSET SALES AND REFINANCES IN THE JOINT VENTURE FLOW TO PAVE (OF WHICH

PARKIT OWNS 82.83%) UNTIL PAVE HAS RECEIVED A 15% IRR ON CONTRIBUTED CAPITAL. THEREAFTER PROFITS FLOW THROUGH THE WATERFALL AS PER THE OP HOLDINGS JV LLC AS SHOWN ABOVE.

3. PLEASE NOTE THAT NO ASSET SALES ARE CURRENTLY CONTEMPLATED AND THIS NAV VALUATION HAS BEEN PROVIDED SOLELY FOR ILLUSTRATIVE PURPOSES.

OPH JV reference PAVe Distribution Parkit % Parkit Distribution

Pave 15% IRR 6.4(c)(ii) 15,064,842 82.83% 12,478,209

Up to $3 million 6.4(c)(iii), 6.4(b)(ii)(x) 3,000,000 40.60% 1,218,000

1st promote 6.4(a)(ii)x 508,905 50.00% 254,452

17% IRR 6.4(a)(ii)y 731,751 82.83% 606,110

2nd promote 6.4(a)(iii)x 454,533 50.00% 227,267

22% IRR 6.4(a)(iii)y 474,608 82.83% 393,118

20,234,640 15,177,156

Value

Canopy 37,600,000 Chapel 10,500,000 Riccio 4,500,000 Z Park 3,500,000

56,100,000 Loan Amount1 (30,731,542)Closing costs (4%) (2,244,000)Net Proceeds 23,124,458

Appraised Value Loan Amount1 Net Proceeds

Nashville 8,000,000 5,737,582 2,262,418

Closing Costs (4%) 320,000

Total 1,942,418

Parkit Distribution 50% 971,209

FIGURES IN USD


NET ASSET VALUE CALCULATIONSCENARIO 1 - Sa le in January 2021 at Appraised Pr icesBased on these assumptions and two years of corporate overhead, this produces an after-tax book value per share of $0.65:

Per FS CAD

31-Jan-19

USD1.3144

USD31-Jan-19

OPHUSD

OPHUSD

OPHUSD

AssociateUSD

PKT CorpUSD

PKT CorpUSD

OPHUSD

OPHUSD USD

SubtotalUSD CADUSD

Mgmt Fee POA Equity Accretion Amortize Expenses OPH OPH Nashville OPH Consolidated

Fee income Feb 2019 to

Jan 2021

Repayment of current

portion

pick-up & operating

of Discounted note to face

value

Prepaid and Intangible

Capital proceeds -

assuming all properties

disposed Jan 31, 2021

Capital proceeds - remaining security deposit

returned 2023

Capital proceeds assuming property


Estimated tax liability

Projected NAV assuming all

properties disposed of by Jan 31, 2021

[A] [B] [C] [D] [E] [F] [G] [H] [I] [J] [K]

Cash 3,023,732 spot 2,300,466 286,346 39,829 542,000 (1,290,627) 15,794,574 129,997 971,209 (596,000) 18,177,794 23,892,892

Accounts Receivable - Mgmt fee 92,463 spot 70,346 (70,346) - -

Accounts Receivable - Other (exc. PoA) 57,731 spot 43,922 43,922 57,731

Prepaids & Deposits 12,015 spot 9,141 (9,141) - -

POA Receivable 1,314,175 spot 999,829 (39,829) 960,000 1,261,824

Intangible Assets 30,208 spot 22,982 (22,982) - -

Investment in Associate 1,228,030 H 977,910 240,090 (1,218,000) - -

Investment in JV - OPH 17,618,451 H 13,333,351 (13,333,351) - -

Investment in JV - Nashville 567,131 (567,131) - -

Accounts payable & tax liabilities (2,139,087) spot (1,627,425) (1,627,425) (2,139,087)

Net Asset Value 21,237,718 16,697,653 216,000 - 542,000 240,090 (32,123) (1,290,627) 1,243,223 129,997 404,078 (596,000) 17,554,291 23,073,360

# of common shares o/s 34,854,257 34,854,257 NAV per share $0.61 $0.66 # of stock options o/s 1,845,000 [L] 1,845,000 Proceeds raised if all options exercised $801,500 [L] $801,500 Fully diluted $0.60 $0.65

PKT Corp Parkit Enterprise Inc. - Corporate Expenses

Associate Investment in Associate (Green Park Denver)

PRE Parking Real Estate LLC (3rd party)

JV Investment in Joint Venture (Parking Acquisition Ventures, LLC or "PAVE")

OPH OP Holdings JV, LLC (or “OP Holdings”)

Nashville PAVe Nashville, LLC

PAVE % in OPH 29.45%

PKT % of PAVE % in OPH 82.83%

Net PKT % in OPH 24.39% (PKT % held through 100% owned subsidiaries)

PAVE % in Nashville 100.00%

PKT % of PAVE % in Nash. 50.00%

Net PKT % in Nashville 50.00% (PKT % held through 100% owned subsidiaries)


NET ASSET VALUE CALCULATIONSCENARIO 1 - Sa le in January 2021 Appraised Pr icesAssumptions

[A] The Company receives management fees from OPH. Forecast at US$9,000 per month.

[B] Of the January 31, 2019 receivable from PRE, US$960,000 of the balance is to repaid from the disposition of certain parking assets held in the OPH portfolio. (The expected incoming cash from PRE to settle

the US$960K receivable after the disposition of the remaining JV properties is not shown in the table above for simplicity). The remainder of the receivable of US$39,829 as of January 31, 2019 is being

repaid from the assignment of PRE’s portion of the management fee from OPH JV, and is expected to repaid during the next 12 months.

[C] The joint venture will earn operating income. Excess cash not needed to service operations and the debt is to be distributed to JV members. The estimate for equity pick-up reflects the expected net

income reduction in the JV from the sale of two of the six properties in the OPH portfolio in 2018, and for simplicity we have assumed all operating cash flows were distributed to the JV members. However,

the amount and timing of actual operating cash flows from the JV will vary from the estimate. Note, the actual quarterly equity pick-up has historically varied significantly quarter to quarter due in part to

seasonality.

[D] The only significant asset retained in the associate is an earnings-based contingent receivable from OPH. The final tranche of US$3 million is payable upon the disposition of assets in accordance with the

OPH waterfall. The Company is entitled to 40.6% of this amount, or US$1.218 million.

[E] Reflect amortization of prepaid and intangible assets of January 31, 2019. Assume no significant new prepaids for simplicity.

[F] Reflects 2 years of expected expenses.

[G] Estimate based on disposition of four remaining properties as of January 31, 2021.

The amount of the sale proceeds is distributed to JV members pursuant to a multi-staged priority payment waterfall. Under the waterfall, defined capital proceeds were distributed to Och-Ziff Real Estate

until the first IRR hurdle of 15% was met. This hurdle was met in October 2018 with the sale of the Expresso property. PAVE is now receiving 100% of the distributions from property dispositions and debt

re-financings in the joint venture in the second stage of the waterfall until its 15% IRR hurdle is met. Thereafter, distributions are allocated among the JV members as defined in each subsequent stage of

the waterfall. The amount and timing of any operating or capital distributions, and actual net proceeds will impact the amount to be received under the waterfall distribution. Actual results will vary from

the estimate.

[H] Expected capital proceeds from return of security deposit with-held from Expresso proceeds.

[I] Estimate based on disposition of property as of January 31, 2021.

Assumed no operating distributions for simplicity (none received to date).

Gross Proceeds - JV 8,000,000 Based on 2018 appraisal

less transaction costs (320,000) Estimated at 4%

less estimated debt held (5,737,582) Based on Jan 31, 2019 balance sheet.

Net proceeds to be distributed by JV 1,942,418

Portion to Parkit 971,209 50% equity interest

Gross Proceeds - JV 56,100,000 Based on 2017 appraisals used in refi

less transaction costs (2,244,000) Estimated at 4%

less estimated debt held (30,731,542) Based on debt held as of January 31, 2019

Net proceeds to be distributed by JV 23,124,458 Estimated


NET ASSET VALUE CALCULATIONSCENARIO 1 - Sa le in Ju ly 2020 at Appraised Pr ices

Assumptions[J] Estimated tax using an estimated effective tax rate of 27% comprised of 21% federal tax rate plus state taxes. Simplified approach used to estimate taxable capital gain and operating income. Actual results

will vary from the estimate.

[K] The Company’s reporting currency is CAD. Distributions received from its investment in JV and associate are in USD. For the purposes of this analysis, the expected cashflows were presented in USD. For the purposes of this analysis, a consistent FX rate was used. The beginning NAV was translated into USD based on the exchange rates used for the January 31, 2019 reporting. Future cash flows incurred in CAD (such as Parkit corporate expenses) were translated at the FX rate at January 31, 2019. The ending NAV was calculated in USD and translated into CAD using the same FX rate at of January 31, 2019. Actual future results as reported in CAD will differ from changes in FX rates.

[L] Stock options outstanding

* The Company is to grant a further 100,000 stock options on or about the first anniversary of July 1, 2019. The exercise price has not been set in advance.

[M] The assumptions set forth for scenario 1 are subject to a number of risk factors including, without limitation:

(i) Fluctuations in the market value of the properties

(ii) Fluctuations in foreign currency exchange rates

(iii) General Economic Conditions

(iv) The date at which the properties are disposed of

(v) Changes in tax rates and legislation

Exercise price

Outstanding Jan

31, 2019

Proceeds Received if

Exercised

$0.29 100,000 $29,000

$0.30 500,000 $150,000

$0.50 1,245,000 $622,500

1,845,000 $801,500

Before

dilution

Exercise of

stock options Fully Diluted **

NAV $23,073,360 $801,500 $23,874,860

# of common shares 34,854,257 1,845,000 36,699,257

NAV per common share $0.66 $0.65

N E T A S S E T V A L U E C A L C U L A T I O N

S C E N A R I O 2

S a l e i n J a n u a r y 2 0 2 3 b a s e d o n m o s t r e c e n t l y

A p p r a i s e d V a l u e s


Based on our most recently Appraised Prices and assuming a sale of our assets in January 2023, we estimate that we would have an after-tax Net Asset Value per Share of approximately $0.71.

* THE DISCLOSURE REGARDING THE POTENTIAL NET ASSET VALUE CONSTITUTES FORWARD LOOKING FINANCIAL INFORMATION. THIS INFORMATION BY ITS NATURE MAY NOT BE ACCURATE AND IS BASED ON A NUMBER OF ASSUMPTIONS SET FORTH IN THIS PRESENTATION. READERS ARE CAUTIONED THAT THE ACTUAL RESULTS MAY VARY FROM THE ASSUMPTIONS SET FORTH IN THIS PRESENTATION.



ASSUME THAT THE FOUR JV ASSETS (OP HOLDINGS ASSETS) ARE SOLD AT MOST RECENT APPRAISED PRICES IN JANUARY 2023:

BASED ON THE OP HOLDINGS JV LLC AGREEMENT, THE WATERFALL WOULD PRODUCE THE FOLLOWING CASH FLOWS TO PARKIT2:

BASED ON THE LOWER RANGE OF THE MOST RECENT APPRAISED VALUE FOR NASHVILLE FLY-AWAY AIRPORT PARKING, ASSUME THAT THE PROPERTY IS SOLD FOR USD$8M:

1. ASSUMES THAT PROPERTIES HAVE THE SAME AMOUNT OF DEBT AS THEY HAD IN JANUARY 2019. IN REALITY, THE LOAN AMOUNTS SHOULD BE LOWER DUE TO THE AMORTIZATION OF THE LOANS.

2. AS OF OCTOBER 2018, PARKIT HAS FULLFILLED ITS 15% IRR HURDLE TO OCH ZIFF REAL ESTATE, MEANING THAT ALL PROCEEDS FROM ASSET SALES AND REFINANCES IN THE JOINT VENTURE FLOW TO PAVE (OF WHICH

PARKIT OWNS 82.83%) UNTIL PAVE HAS RECEIVED A 15% IRR ON CONTRIBUTED CAPITAL. THEREAFTER PROFITS FLOW THROUGH THE WATERFALL AS PER THE OP HOLDINGS JV LLC AS SHOWN ABOVE.

3. PLEASE NOTE THAT NO ASSET SALES ARE CURRENTLY CONTEMPLATED AND THIS NAV VALUATION HAS BEEN PROVIDED SOLELY FOR ILLUSTRATIVE PURPOSES.

OPH JV reference PAVe Distribution Parkit % Parkit Distribution

Pave 15% IRR 6.4(c)(ii) 19,194,141 82.83% 15,898,507

Up to $3 million 6.4(c)(iii), 6.4(b)(ii)(x) 3,000,000 40.60% 1,218,000

1st promote 6.4(a)(ii)x 158,154 50.00% 79,077

17% IRR 6.4(a)(ii)y 227,409 82.83% 188,362

2nd promote 6.4(a)(iii)x - 50.00% -

22% IRR 6.4(a)(iii)y - 82.83% -

22,579,704 17,383,946

Value

Canopy 37,600,000 Chapel 10,500,000 Riccio 4,500,000 Z Park 3,500,000

56,100,000 Loan Amount1 (30,731,542)Closing costs (4%) (2,244,000)Net Proceeds 23,124,458

Appraised Value Loan Amount1 Net Proceeds

Nashville 8,000,000 5,737,582 2,262,418

Closing Costs (4%) 320,000

Total 1,942,418

Parkit Distribution 50% 971,209

FIGURES IN USD


Based on these assumptions and four years of corporate overhead, this produces an after-tax book value per share of $0.71:


Per FS CAD

31-Jan-19

USD1.3144

USD31-Jan-19

OPHUSD

OPHUSD

OPHUSD

AssociateUSD

PKT CorpUSD

PKT CorpUSD

OPHUSD

OPHUSD USD

SubtotalUSD CADUSD

Mgmt Fee POA Equity Accretion Amortize Expenses OPH OPH Nashville OPH Consolidated

Fee income Feb 2019 to

Jan 2023

Repayment of current

portion

pick-up & operating

of Discounted note to face

value

Prepaid and Intangible

Capital proceeds

-assuming all properties


Capital proceeds - remaining security deposit

returned 2023

Capital proceeds assuming property


Estimated tax liability

Projected NAV assuming all

properties disposed of by Jan 31, 2023

[A] [B] [C] [D] [E] [F] [G] [H] [I] [J] [K]

Cash 3,023,732 spot 2,300,466 502,346 39,829 1,084,000 (2,581,254) 18,001,364 124,455 971,209 (664,000) 19,778,415 25,996,749

Accounts Receivable - Mgmt fee 92,463 spot 70,346 (70,346) - -

Accounts Receivable - Other(exc. PoA) 57,731 spot 43,922 43,922 57,731

Prepaids & Deposits 12,015 spot 9,141 (9,141) - -

POA Receivable 1,314,175 spot 999,829 (39,829) 960,000 1,261,824

Intangible Assets 30,208 spot 22,982 (22,982) - -

Investment in Associate 1,228,030 H 977,910 240,090 (1,218,000) - -

Investment in JV - OPH 17,618,451 H 13,333,351 (13,333,351) - -

Investment in JV - Nashville 567,131 (567,131) - -

Accounts payable (2,139,087) spot (1,627,425) (1,627,425) (2,139,087)

Net Asset Value 21,237,718 16,697,653 432,000 - 1,084,000 240,090 (32,123) (2,581,254) 3,450,013 124,455 404,078 (664,000) 19,154,912 25,177,216

# of common shares o/s 34,854,257 34,854,257 NAV per share $0.61 $0.72 # of stock options o/s 1,845,000 [L] 1,845,000 Proceeds raised if all options exercised $801,500 [L] $801,500

Fully diluted $0.60 $0.71

PKT Corp Parkit Enterprise Inc. - Corporate Expenses

Associate Investment in Associate (Green Park Denver)

PRE Parking Real Estate LLC (3rd party)

JV Investment in Joint Venture (Parking Acquisition Ventures, LLC or "PAVE")

OPH OP Holdings JV, LLC (or “OP Holdings”)

Nashville PAVe Nashville, LLC

PAVE % in OPH 29.45%

PKT % of PAVE % in OPH 82.83%

Net PKT % in OPH 24.39% (PKT % held through 100% owned subsidiaries)

PAVE % in Nashville 100.00%

PKT % of PAVE % in Nash. 50.00%

Net PKT % in Nashville 50.00% (PKT % held through 100% owned subsidiaries)



Assumptions[A] The Company receives management fees from OPH. Forecast at US$9,000 per month.

[B] Of the January 31, 2019 receivable from PRE, US$960,000 of the balance is to repaid from the disposition of certain parking assets held in the OPH portfolio. (The expected incoming cash from PRE to settle

the US$960K receivable after the disposition of the remaining JV properties is not shown in the table above for simplicity). The remainder of the receivable of US$39,829 as of January 31, 2019 is being

repaid from the assignment of PRE’s portion of the management fee from OPH JV, and is expected to repaid during the next 12 months.

[C] The joint venture will earn operating income. Excess cash not needed to service operations and the debt is to be distributed to JV members. The estimate for equity pick-up reflects the expected net

income reduction in the JV from the sale of two of the six properties in the OPH portfolio in 2018, and for simplicity we have assumed all operating cash flows were distributed to the JV members. However,

the amount and timing of actual operating cash flows from the JV will vary from the estimate. Note, the actual quarterly equity pick-up has historically varied significantly quarter to quarter due in part to

seasonality.

[D] The only significant asset retained in the associate is an earnings-based contingent receivable from OPH. The final tranche of US$3 million is payable upon the disposition of assets in accordance with the

OPH waterfall. The Company is entitled to 40.6% of this amount, or US$1.218 million.

[E] Reflect amortization of prepaid and intangible assets of January 31, 2019. Assume no significant new prepaids for simplicity.

[F] Reflects 4 years of expected expenses.

[G] Estimate based on disposition of four remaining properties as of January 31, 2021.

The amount of the sale proceeds is distributed to JV members pursuant to a multi-staged priority payment waterfall. Under the waterfall, defined capital proceeds were distributed to Och-Ziff Real Estate

until the first IRR hurdle of 15% was met. This hurdle was met in October 2018 with the sale of the Expresso property. PAVE is now receiving 100% of the distributions from property dispositions and debt

re-financings in the joint venture in the second stage of the waterfall until its 15% IRR hurdle is met. Thereafter, distributions are allocated among the JV members as defined in each subsequent stage of

the waterfall. The amount and timing of any operating or capital distributions, and actual net proceeds will impact the amount to be received under the waterfall distribution. Actual results will vary from

the estimate.

[H] Expected capital proceeds from return of security deposit with-held from Expresso proceeds.

[I] Estimate based on disposition of property as of January 31, 2021.

Assumed no operating distributions for simplicity (none received to date).

Gross Proceeds - JV 8,000,000 Based on 2018 appraisal

less transaction costs (320,000) Estimated at 4%

less estimated debt held (5,737,582) Based on Jan 31, 2019 balance sheet.

Net proceeds to be distributed by JV 1,942,418

Portion to Parkit 971,209 50% equity interest

Gross Proceeds - JV 56,100,000 Based on 2017 appraisals used in refi

less transaction costs (2,244,000) Estimated at 4%

less estimated debt held (30,731,542) Based on debt held as of January 31, 2019

Net proceeds to be distributed by JV 23,124,458 Estimated


NET ASSET VALUE CALCULATIONSCENARIO 2 - Sa le in Ju ly 2023 at Appraised Pr ices

Assumptions

[J] Estimated tax using an estimated effective tax rate of 27% comprised of 21% federal tax rate plus state taxes. Simplified approach used to estimate taxable capital gain and operating income. Actual results

will vary from the estimate.

[K] The Company’s reporting currency is CAD. Distributions received from its investment in JV and associate are in USD. For the purposes of this analysis, the expected cashflows were presented in USD. For

the purposes of this analysis, a consistent FX rate was used. The beginning NAV was translated into USD based on the exchange rates used for the January 31, 2019 reporting. Future cash flows incurred in

CAD (such as Parkit corporate expenses) were translated at the FX rate at January 31, 2019. The ending NAV was calculated in USD and translated into CAD using the same FX rate at of January 31, 2019.

Actual future results as reported in CAD will differ from changes in FX rates.

[L] Stock options outstanding

* The Company is to grant a further 100,000 stock options on or about the first anniversary of July 1, 2019. The exercise price has not been set in advance.

[M] The assumptions set forth for scenario 2 are subject to a number of risk factors including, without limitation:

(i) Fluctuations in the market value of the properties

(ii) Fluctuations in foreign currency exchange rates

(iii) General Economic Conditions

(iv) The date at which the properties are disposed of

(v) Changes in tax rates and legislation

Exercise price

Outstanding

Jan 31, 2019

Proceeds Received

if Exercised

$0.29 100,000 $29,000

$0.30 500,000 $150,000

$0.50 1,245,000 $622,500

1,845,000 $801,500

Before

dilution

Exercise of

stock options Fully Diluted **

NAV $25,177,216 $801,500 $25,978,716

# of common shares 34,854,257 1,845,000 36,699,257

NAV per common share $0.72 $0.71

F U T U R E A C Q U I S I T I O N SP A R K I T E N T E R P R I S E I N C .


TARGETING OPPORTUNISTIC REAL ESTATE ASSETS IN THE USD $3 - $10 MILLION DOLLAR RANGE.

F U T U R E A C Q U I S T I O N SP A R K I T E N T E R P R I S E I N C .

Assets should be accretive within one year on a free cash flow per share basis

Assets should meet a levered IRR hurdle of 15%

Leverage will be approximately 65-75%

Targeting High Population and Economic Growth markets in the US

Targeting stabilized and value add assets

*NOTE: AT THIS TIME NO ASSURANCES CAN BE MADE THAT FUTURE ACQUISITIONS WILL BE COMPLETED. THE ABOVE SETS FORTH THE COMPANY’S CRITERIA FOR FUTURE ACQUISITIONS.


C O R P O R A T E H I S T O R YP A R K I T E N T E R P R I S E I N C .

2006

Incorporated in 2006 as

a private company

2009

Went Public

as Greenscape

Capital Group

2014

Parkit acquires Expresso

Airport Parking for

$18.6M

2015

Parkit enters into Joint Venture

with Och-Ziff and Propark

acquiring four additional assets

(Chapel Square, Terra Park,

Riccio Lot and Z Parking)

Parkit acquires Nashville

Off-Airport Parking with

Propark for $8M

2010

Purchases and begins construction

on Canopy Airport Parking (4200

stall lot servicing Denver Int’l

Airport)

2011

Canopy Airport Parking is

completed

2018

Parkit acquires Smart

Parking Solutions

Canada

2018

Board of Parkit is

reconstituted to

Current Directors

AUGUST 2018

Terra Park is sold

generating a 24% IRR for

OP Holdings JV LLC

SEPTEMBER 2018

Expresso Airport Parking is sold

generating a ~42% IRR for OP

Holdings JV LLC


S H A R E S T R U C T U R EP A R K I T E N T E R P R I S E I N C .

SHARES OUTSTANDING

34.85M

OPTIONS

TSX-V: PKT

MARKET CAP

$10.98MWARRANTS

NONESHARE PRICE

$0.315

1,845,000 TOTAL OPTIONS OUTSTANDING AS OF JANUARY 31, 2019

100,000 AT C$0.29; 500,000 AT C$0.30; 1,245,000 AT C$0.50.

1,695,000 OPTIONS EXPIRE IN 2019; 50,000 EXPIRE IN 2022, 100,000 EXPIRE IN 2023.

I F Y O U H A V E A N Y F U R T H E R Q U E S T I O N S , P L E A S E R E A C H O U T T O U S

W W W . P A R K I T E N T E R P R I S E . C O M

A V I G E L L E R I N T E R I M C E O

D A V I D D E L A N E Y

E X E C U T I V E C H A I R M A N

P H O N E

E M A I L

P H O N E

E M A I L

7 3 2 - 9 6 6 - 1 6 8 3

a v i g @ p a r k i t e n t e r p r i s e . c o m

4 1 6 - 9 5 1 - 9 2 1 4

d a v i d @ p a r k i t e n t e r p r i s e . c o m

tsx.v: pkt otcqx: pktef · nashville fly-away airport parking, assume that the property is sold for...

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