Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Member of Canada Green Building Council
• Utilization of solar panels
• Upgrade all properties to energy-efficient lighting on tenant turnover
• Use of low-flow toilets
• Paperless administration including cloud-based systems and records

Social Achievements

• Supported eligible tenants during COVID-19, with the Canada Emergency Commercial Rent Assistance (CECRA) program
• Ensured safe working conditions through adherence to occupational health and safety standards
• Promoting diversity and inclusion through Board, management and Corporation’s use of merit-based hiring practices
• Community involvement and charitable initiatives
• Support wellness through continuing education for employees
• Ensure safe conditions through adherence to jurisdictional occupational health, safety and labour standards

Governance Achievements

• Established Board committees for Audit, Governance & Compensation, Investments
• Audit, Governance & Compensation Committees are majority independent
• Significant board ownership at over 35%

Environmental Challenges

• Real estate investments are subject to varying degrees of risk depending on the nature of each property.
• Changes in market conditions may decrease the value of the secured property and reduce the cash flow from the property.
• The value of real property and any improvements thereon may depend on the strength of the real estate market in the Corporation’s target markets.
• Upon the expiry of any lease, there can be no assurance that the lease will be renewed or the tenant will be replaced.
• Developments and expansion of properties have significant risks including contractual risks, construction risks, inflation and cost risks, shortages of experience labour, trades and services, and regulation risk associated with entitlements, zoning, and permit approval.
• The COVID-19 pandemic adds additional risks to the development process which include but are not limited to, potential development delays, fluctuations in costs, slower pace of lease-up, lower sales price and lower property valuation.
• The Joint Ventures and parking operations are subject to varying degrees of risk depending on the nature of each parking asset and joint venture.
• Continued concerns about the uncertainty over whether the economy will be adversely affected by inflation, deflation or stagflation, and the systemic impact of increased unemployment, volatile energy costs, geopolitical issues, the availability and cost of credit, the mortgage market, distressed commercial real estate market and the global outbreak of COVID-19 have contributed to increased market volatility and a weakened business and consumer confidence.
• Management’s business strategy is dependent upon the Corporation’s ability to identify acquisition targets in both new and existing markets, to obtain the financing required to complete such transactions, and to integrate the acquired businesses into the Corporation’s existing operations.
• Environmental risk is inherent in the ownership of real property.
• Companies in the industrial real estate business must incur many of the costs of operating and maintaining their facilities, land and equipment, regardless of the level of occupancy during any given period.
• The Corporation is subject to competition.
• Real estate investments are relatively illiquid, with the degree of liquidity generally fluctuating in relation to demand for and the perceived desirability of such investments.
• Achieving the benefits of such acquisitions depends in part on successfully consolidating functions and integrating operations, procedures and personnel in a timely and efficient manner, as well as Parkit’s ability to realize the anticipated growth and development opportunities from the assets underlying such acquisitions.
• Future market share, revenue and profit will depend in part on the Corporation’s ability to anticipate, identify and respond to changing consumer preferences.
• A skilled workforce is important to the ongoing success of the Corporation.
• The Corporation only operates in certain jurisdictions in Eastern Canada.
• The Corporation is, in the course of its business, subject to lawsuits and other claims.
• There can be no assurance that certain laws applicable to the Corporation, including Canadian federal and provincial tax laws, tax proposals, other governmental policies or regulations and governmental, administrative or judicial interpretation thereof, will not change in a manner that will adversely affect the Corporation or fundamentally alter the consequences, including tax consequences, to shareholders acquiring, holding or disposing of Common Shares.
• While the Corporation has insurance coverage for all of its properties, the insurance coverage may have deductible amounts and may not cover all damage which may occur to the properties.
• The Corporation depends on the continued support and involvement of our directors and officers to develop our business and operations, and the services of our key technical, sales, marketing, and management personnel.
• Cybersecurity is an increasing area of focus as the Corporation relies on digital technologies in its operations.
• There are potential conflicts of interest to which the directors and officers of the Corporation may be subject in connection with the operations of the Corporation.
• The Corporation’s operations and financial results may be adversely affected by the COVID-19 pandemic, including any variants thereto.
• Climate change continues to attract the focus of governments and the general public as an important threat, given that the emission of greenhouse gases and other activities continue to negatively impact the planet.

Mitigation Strategies

• Procures recent or updated environmental reports or assessments for all acquisitions to help to ascertain the risk, if any, that exist at a property.
• The Corporation maintains a relatively good relationship with its employees and tries to cultivate a work environment in which employees have internal growth opportunities.
• The Corporation also tries to cultivate good relationships with dependable contractors in order to try to benefit from reliability and continuity of service.
• The Corporation is monitoring guidance and programs from the government, regulators, and health authorities
• Personnel are working remotely and maintaining social distancing
• Management is also closely monitoring all expenses and is reducing non-essential expenses
• The Corporation has programs, systems and processes to protect against cyberattacks but the results of successful attacks could have an adverse impact on the Corporation’s financial condition.
• The Corporation is continuing to evolve its security protocols and has engaged technology vendors concerning data security, access controls and other programs.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Member of Canada Green Building Council
• Canopy Airport Parking LEED-certified Gold and Green Garage Certified
• Registered with Energy Star to monitor energy use
• Utilization of solar panels and planning for expansion
• Upgrade to energy-efficient lighting
• Use of low-flow toilets
• Installation of new water feed to reduce water consumption
• Paperless administration

Social Achievements

• Ensure safe working conditions and adherence to occupational health and safety standards
• Promoting diversity and inclusion
• Community involvement and charitable initiatives
• Support wellness through continuing education for employees

Governance Achievements

• Established Board committees for Audit, Governance & Compensation, Investment
• Board, Investment, and Audit Committee are majority independent
• Significant board and management ownership at approximately 40%

Climate Goals & Targets

Environmental Challenges

• High cost of capital and wide bid-ask spread on accretive acquisitions
• Slowing fundamentals in key markets with decreased asking rental rates and availability rates approaching historical averages
• Increased capitalization rates due to purchaser expectations, increasing availability rates, and declining net asking rents
• Interest rate volatility affecting debt servicing obligations and acquisition capacity
• Competition for capital, acquisitions, and skilled personnel
• Fluctuations in foreign exchange, inflation, and interest rates

Mitigation Strategies

• Disciplined approach to acquisitions, deploying capital only to opportunities meeting internal thresholds
• Streamlining property operations for improved margins
• Utilizing swaps to fix interest rates on debt
• Maintaining strong occupancy rates
• Continuing to evaluate new acquisition opportunities
• Implementing programs, systems and processes to protect against cyberattacks

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Climate change-related events disrupting operations

Transition Risks

• Government initiatives leading to operational constraints and financial costs