Annual Report 2021
Company:
CVR no.: 12 93 25 02
LEI no.: 213800VGJC 18MRKMZC33
Registered office: Copenhagen, Denmark
Phone: +45 33 33 93 03
Internet: www.nordicom.dk / www.psnas.com
E-mail: nordicom@nord icom.dk
Board of Directors:
Anita Nassar, Chairman
Andrew John Essex La Trobe
Claes Peter Rading
Ohene Aku Kwapong
Pradeep Pattem
Management:
Auditor:
Main activity:
Annual General Meeting:
Annual General Meeting to be held April 25th, 2022 at 10:00 at S vanevej 12, 2400 Copenh agen NV, Denmark.
Annual Report 2021
1
Contents
Directors' report 2
Directors' report 2
Subsequent events after December 31, 2021 3
Outlook and strategy for 2022 4
Financial Highlights 12
Financial Results 13
Risk Factors 18
Statutory Report CSR 18
Legal requirements for Corporate Governance 19
Statutory report on diversity in management 19
Management composition and remuneration 20
Board of Directors and Management 21
Shareholder structure 23
Group structure as of December 31, 2021 24
Statements 25
Statement by Board of Directors and Management 25
Independent auditors report 26
Consolidated Financial statements 30
Income statement 31
Statement of comprehensive income 32
Statement of financial position 33
Statement of equity 35
Statement of cash flows 37
Notes 38
Annual accounts for P ark Street A/S 69
Income statement 70
Statement of comprehensive income 71
Statement of financial position as of December 31 72
Statement of equity 74
Statement of cash flows 75
Notes 76
Property Overview 94
Park Street/ Director’s report
2
Main Activity
Park Street is a fully integrated European real estate investment and asset management company with offices in Copenhagen and London. It owns
and manages a large portfolio of commercial properties located across Denmark.
Results of the year 2021
Park Street result analysis primarily uses the term EBVAT (Earnings before value adjustments and tax) to measure the Group’s operating results.
In 2021, Park Street achieved EBVAT of DKK 56.9 million (2020: DKK 69.8 million), for the period.
The EBVAT achieved is DKK 12.9 million lower than the one in 2020. The decrease is mainly caused by the reduction of net sales partly compen-
sated by the reduction of operating expenses, overheads and financial expenses.
The evolution of the EBVAT is influenced by the following factors:
Gross profit in 2021 is DKK 117.4 million (2020: DKK 125.0 million), equivalent to a decrease of DKK 7.6 million. The reduction in gross
profit is primarily due to a reduction in rental income (- DKK 2.5 million) and other income (- DKK18.0 million) primarily due to the sale of
properties, intentional vacancy in order to intiate residential projects and a delay on filling vacancies due to the uncertainties caused by
Covid-19, partially offset by a reduction in external consulting expenses relating to properties (-DKK 5.2 million) and service costs (-
DKK 4.8 million) and an increase in income received from the hotels in the group (DKK 2.9 million).
The Group's overheads were DKK 34.7 million in 2021 against DKK 29.4 million in 2020. The increase of DKK 5.3 million is caused by a
an increase in external advisor expenses and expensing the intangible asset value relating to software expenditure.
Net financial items amounts to DKK -25.9 million in 2021 against DKK -25.8 million in 2020, representing a negative change of DKK 0.1
million driven by an increase in the debt with financial institutions including development loan for Pulse N with higher margins interest
rates.
Net Profit of the period is DKK 145.4 Million in 2021 (2020: DKK 145.3 million) due to the following effects:
Fair value adjustment in 2021 with a net of DKK 128.9 million while the fair value adjustment in 2020 had a net effect of DKK 79.5 mil-
lion. In both periods an evaluation of the domicile and investment properties have been made adjusting the yield and the estimated prof-
it and loss by the entire portfolio of Park Street A/S and subsidiaries.
In 2021, the sale of two non-core and stabilized properties which generated a profit of 1.5 million DKK (2020: DKK 38.5 million).
The Group's equity as at 31st December 2021 was DKK 1,217 million, compared to DKK 1,071.9 million as at 31 December 2020. The improve-
ment in the Group's equity is due to the profit for the period.
The operation of the Group's properties in 2021 was impacted by the restraint shown by businesses to commit to leases and investment, which has
delayed closings of some new leases. We also further received some long expected terminations. The current vacancy rate (calculated by rental
value) for the Group's investment properties at 22.2% in 2021, against 22.1% for all of 2020. There are several pending discussions from 2021 with
potential tenants should lead to a highly intensive period of concluding new leases and reducing the vacancy levels. During the first months of
2022, there has been a positive traction with the signature of new leases.
Property acquisitions and sales
In 2021, Park Street sold the following properties and plots:
Residential unit in Ballerup
Land plot in Naestved
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Organisation
Since April of 2021 when the Annual General Meeting of the Company took place the Board of Directors of Park Street consists of Andrew La
Trobe, Pradeep Pattem, Ohene Aku Kwapong, Anita Nassar and Claes Peter Rading.
The number of employees of Park Street were 26 by the end of 2021, against 38 at the start of the year.
Subsequent events after December 31, 2021
An investment property in Loftborvej has been sold in January 2022.
Significant leases for over 3,800 square meters have been signed since January 2022.
The Company has announced buyback program for Class A and Class B shares.
From the balance sheet date until the date of presentation of this Annual Report no additional events have occurred other than the abovemen-
tioned which significantly affects the assessment of the annual report.
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Outlook and Strategy for 2022
Background 2021
The last 2 years of disruption has reinforced the secular shift towards service and technology driven segments of Real
Estate. It also challenged the concept of need for "Space" to work or shop while enhancing the needs for the "Space" to
live.
Managed Youth Housing & Collaborative Workspaces will thrive and outperform in the Real Estate market in the next
2-3 years.
Strong balance sheet with 40% of Equity Ratio, well above our long-term target of 35%
Estimated EBVAT of DKK 56.9m is lower than our target, significantly impacted by one off financing related costs
and limited closing of new leases
All Short-Term loan has been repaid with only Long-Term financing the portfolio
Initiated Pulse N development with institutional development financing in place.
Successful launch of Pulse O with full occupancy well ahead of target
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Portfolio Strategy 2022
After an indepth review of the portfolio, the portfolio of our assets are now classidied into three buckets with clear associated strategy.
Strategy
Spark Office
Number of Assets
16
Debt (DKK)
553,705,564
Book Value (DKK)
929,841,576
Net Operating Income 2021 (DKK)
32,090,366
Stabilized Potential Rental Value* (DKK)
70,159,088
Strategy
Spark Retail
Number of Assets
22
Debt (DKK)
399,392,717
Book Value (DKK)
663,089,742
Net Operating Income 2021 (DKK)
38,164,267
Stabilized Potential Rental Value* (DKK)
53,984,249
Strategy
Pulse
Number of Assets
16
Debt (DKK)
560,663,040
Book Value (DKK)
1,217,145,167
Net Operating Income 2021 (DKK)
33,865,502
Stabilized Potential Rental Value* (DKK)
78,742,173
(*) Stabilized Potential Rental Value is defined to be the full potential rental value upon full occupancy of the properties after completion of any
required redevelopment works and capital expenditure.
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Park Street/ Director’s report
7
Asset Management 2022
To strengthen the two pillars:
Pulse Living – Youth Housing Concept (scaling up stage)
Spark Offices – Collaborative Office Hubs (prototype stage)
Invest and Develop large assets in key cities (12 Assets/ hubs currently)
Exit assets not part of Core Strategy:
Asset with limited scale, regional locations, and in Retail only segment will be exited
34 assets planned for exit currently
Over next 3 years
Reduce portfolio size with targeted exits of assets – projecting over DKK 400m of Property Sales*
Reduce Debt with the sale proceeds – projecting over DKK 200m of Debt Reduction
Enhance Leasing activity across portfolio to compensate for reduced assets and improve efficiencies
Initiate Pulse T development
Shares buy back program towards return of capital in view of asset disposal plans
Targeted reinvestment of Capital from sales towards Pulse Living expansion
* We have concluded sales of over DKK 100m in January 2022
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The Pulse Vision
Youth Housing – Simplified vibrant communities
In the next 5 years we aim to reach 10 cities, each with 2-4 centres. That is 1,000 residents in 2 years and onwards to 5,000 residents.
Pulse Living Experience @PulseO
At present, 77% enquiries are through the website and email, 13% from Facebook, 3% through listing sites
.
At pulseliving.dk
Site sessions
7,916
Unique visitors
4,545
Avg. session duration
5m 18s
Scaling with Design & Technology
End-to-end Real Estate technology platform for leasing, governance, financial reporting, property management,
and administration
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A close-knit thriving international community
Customer Testimonials
“I love it here in Tåsingegade 29! Accommodation is very good for the price and the management are super helpful.”
“Nice space! I rented a Studio plus and the bathroom is quite spacious than most studio apartments I have seen in CPH. ”
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The Spark Vision
Prototyping a platform for the future in the next 12 months
Localised hubs of managed office spaces
1. Best in class administration focused on tenant satisfaction
2. Curated high quality service options available
3. Each location as a hub promoting community empowered with local ecosystem
4. International collaboration throughout all locations, sharing common spaces and more
At sparkoffices.dk
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At Park Street we are excited to scale up PulseLiving.dk & shape SparkOffices.dk over the next years, while facili-
tating an exit for assets which will fit better with alternative owners.
We look forward to a year of significant value creating activity
Redeploy own capital along with long term Capital Partners into Pulse Strategy
Exit assets to release capital to facilitate a focussed strategy and return of capital to shareholders via
share buybacks
At Park Street, we will
Invest in Core Strategy and exit from non-aligned asset portfolios
Strive for Efficient Operations across all portfolios and improve profitability
Create Technology based solutions to rapidly scale
Continue to stay Financially Strong
Invest in the Bright Passionate Team
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12
Financial Highlights
Key figures
Amounts in DKK 1000s
2021
2020
2019
2018
2017
Income statement
Rental income
124,328
126,903
147,518
149,729
140,678
Total net sales
158,264
172,669
203,166
175,444
167,657
Gross profit
117,418
124,979
150,093
146,154
132,106
Profit from primary operations
187,225
187,759
146,021
142,341
392,800
Financial items
-25,881
-25,757
-29,105
-33,409
-73,397
Earnings before value adjustments and tax (EBVAT)
56,866
69,813
83,223
84,014
25,902
Profit for the period
145,459
145,321
115,053
108,289
360,137
Statement of financial position
Investment properties
2,615,015
2,462,633
2,477,996
2,304,614
2,255,395
Investments in property, plant and equipment
25,803
36,991
19,257
2,650
11,702
Balance sheet total
3,020,749
2,723,066
2,772,843
2,580,698
2,488,782
Interest-bearing debt
1,509,471
1,405,024
1,633,364
1,590,916
1,783,271
Total equity
1,217,038
1,071,946
931,133
810,652
554,947
Statement of cash flows
Cash flows from operations
57,999
61,966
92,856
87,930
32,377
Cash flows from investment
-17,777
137,919
-125,487
51,825
24,885
Cash flows from financing
104,447
-238,341
39,927
-94,668
-116,556
Other disclosures
Non-current liabilities as a proportion of total liabilities (%)
95.7
94.1
89.7
94.1
82.7
Share capital
67,513
67,513
67,513
67,513
42,853
Share price, end of period (DKK)
9.00
10.00
6.65
6.7
5.8
Share price change in points
-1.00
3.35
-0.05
0.9
4.5
Dividend per share
0.0
0.0
0.0
0.0
0.0
Number of employees in the Group (average)
26
26
32
27
23
Financial ratios
2021
2020
2019
2018
2017
Return on property portfolio (% p.a.)
4.3
4.7
5.8
5.9
5.5
Average loan rate (% p.a.)
1.8
1.8
1.8
2.0
3.7
Return margin on property portfolio (% p.a.)
2.5
2.9
4.0
3.9
1.8
Return on equity (%)
11.9%
13.6%
12.4%
13.4%
64.9%
Equity ratio (%)
40.3%
39.4%
33.6%
31.4%
22.3%
Net asset value per share, end of period (DKK)
18.0
15.9
13.8
12.0
13.0
Earnings per share (avg. Number of shares) (DKK)
2.2
2.2
1.7
1.7
21.3
Earnings per share, end of period (DKK)
2.2
2.2
1.7
1.6
8.4
Result of continuing activities per. share (kr.)
2.2
2.2
1.7
1.6
8.4
Dividend yield (%)
0.0
0.0
0.0
0.0
0.0
Price/net asset value, end of period
0.4
0.0
0.5
0.6
0.4
Cash flow per share (DKK)
0.9
0.9
1.4
1.4
1.9
The above financial ratios are calculated in accordance with the definitions in note 22 to the parent company financial statements in the Annual
report for 2021.
Park Street/ Director’s report
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Financial Results
Yearly result compared to expected development
The Group achieved in 2021 an EBVAT (profit excluding value adjustments and tax) of DKK 56.8 million, which is marginally lower than the
guidance mentioned in the interim report for the first half of 2021, in view of Covid-19 related disruption to leasing activity.
Segment Information
Park Street does not present segment information and the Group’s portfolio is presented as one.
Operation from Investment Properties
The Group's investment properties at December 31, 2021 is composed of all the Group's 52 properties, excluding
2 properties classified as domicile property
The Group's investment properties are geographically concentrated in Greater Copenhagen and Zealand. Based on investment property values,
the portfolio allocates as follows:
Amount in Million DKK
2021
2020
Zealand
1,825
69%
1,664
68%
Bornholm
38
1%
38
2%
Fyn
249
9%
231
9%
Jutland
524
20%
529
21%
Total
2,636
2,462
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The breakdown by activity based the property value is split as follows:
Amount in Million DKK
2021
2020
Residential
515
20%
339
14%
Residential Project
470
18%
394
16%
Office
842
32%
701
28%
Retail
692
26%
907
37%
Hotel
92
3%
89
4%
Storage
26
1%
32
1%
Total
2,636
2,462
The following table shows the calculated average vacancy divided by property types:
Average vacancy in %
2021
2020
Retail
19.3%
18.4%
Office (*)
30.8%
31.0%
Residential
10.8%
13.7%
Storage
39.9%
42.9%
Others
0.0%
0.0%
Total
22.2%
22.1%
(*) Office vacancies include a potential re-development project in an asset located in Odense.
The following table shows the calculated average gross rent obtained divided by property types on properties held at 31 December 2020:
Avg. gross rent per sqm p.a. (DKK)
2021
2020
Retail
1,184
826
Office
969
867
Residential
2,256
1,188
Storage
405
337
Other
924
430
Total
907
808
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Consolidated Financial Review
PROFIT AND LOSS
Park Street's Net Profit is DKK 145.4 million for 2021 (2020: DKK 145.3 million), equivalent to a change of DKK 0.1 million in relation to 2020.
As mentioned above the EBVAT in 2021 is DKK 56.9 million (2020: DKK 69.8 million), which is DKK 12.9 million lower than the one achieved in
2020. The reduction is primarily driven by the reduction of the gross profit (DKK -7.6 million), due to a reduction in rental income (- DKK 2.5 million)
and other income (- DKK18.0 million) primarily driven by the sale of properties, intentional vacancy in order to intiate residential projects and a
delay on filling vacancies due to the uncertainties caused by Covid-19. This has partially been offset by a reduction in external consulting expenses
relating to properties (-DKK 5.2 million) and service costs (- DKK 4.8 million) and an increase in income received from the hotels in the group (DKK
2.9 million).
Net Profit of the period is DKK 145.4 Million in 2021 (2020: DKK 145.3 million) due to a higher revaluation of the investment properties amounting
to DKK 128.9 Million (2020: DKK 79.5 Million). Additionally, the sale of two non-core stabilized properties have generated a profit of 1.5 million DKK
while in 2020 the sale of assets generated DKK 38.5 million. To finalize, the effect of the Tax on profit is lower in 2021, being DKK 41.8 Million in
2021 (2020: DKK 42.4 Million) due to a relatively lower increase in fair value adjustments.
BALANCE SHEET
Park Street's balance sheet total as at 31 December 2021 was DKK 3,020.7 million, an increase of DKK 297.7 million on the balance sheet total at
31 December 2020. The increase is mainly due revaluation of investment and domicile properties of DKK 128.9 million and acquisition and im-
provements of assets by DKK 25.8 million. Additionally there was an increase in current assets of DKK 149.8 million (from DKK 57.4 million at 31
December 2020 to DKK 207.2 million at 31 December 2021) due to proceeds from sale of investment properties, financing and re-financing activi-
ties. Non-current assets were DKK 2,813.6 million at 31 December 2021 (31 December 2020: DKK 2,665.7 million).
The Group's equity as at 31st December 2021 was DKK 1,217.0 million, compared to DKK 1,071.9 million as at 31 December 2020. The improve-
ment in the Group's equity is due to the profit for the period.
Liabilities to credit institutions were DKK 1,509.5 million at 31 December 2021 (31 December 2020: DKK 1,405.0 million), consisting of DKK
1,488.4 million (99%) for non-current liabilities and DKK 21.1 million (1%) for current liabilities. In 2021, financial liabilities were increased by DKK
104.4 million driven by increase in debt and amortization repayments to credit institutions.
CASH FLOWS FOR 2021
Cash flows from operating activities for 2021 were DKK 58.3 Million (2020: DKK 62.0 million), equivalent to a decrease of DKK 3.7 million in rela-
tion to the same period last year. The decrease is primarily due to the decrease of operating profit (EBIT) previously mentioned.
Cash flows from investing activities for 2021 were DKK -17.8 million (2020: DKK 137.9 million). Cash flows from investing activities were lower
compared to the previous year due to larger sale of assets in 2020 as compared to 2021 (2021: DKK 8.0 million, 2020: DKK 192.8 million). There
was lower improvements made to investment properties of DKK -25.8 million (2020: DKK -36.9 million).
Cash flows from financing activities for 2021 were DKK 168.1 million (2020: DKK -238.3 million) mainly driven by new financing (DKK 211.4 Mil-
lion), and the remaining amount corresponds to amortization repayments to credit institutions.
The Group's liquid assets amounted to DKK 168.1 million at 31 December 2021 against DKK 23.1 million at 31 December 2020.
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Uncertainty in connection with recognition and measurement
In connection with the Annual report, management makes a number of estimates and assessments regarding the carrying amount of assets and
liabilities, including:
Fair value of investment properties,
Fair value of domicile properties,
Impairment test on domicile properties,
Classification of properties,
Deferred tax assets and tax liabilities
Because of assumptions, assessments and estimates, uncertainty relates to the mentioned conditions and items. It may be necessary to change
previously made estimates, etc. due to changes in the circumstances underlying the estimate, changed strategy or due to additional information,
further experience or subsequent events. Reference is made to note 1 of the consolidated financial statements and note 1 in the parent company's
financial statements for further discussion of the assumptions, assessments, estimates and associated uncertainties.
Parent company Park Street A/S
For the parent company Park Street A / S, profit before tax amounts to DKK 188.9 million in 2021 (2020: DKK 188.0 million).
The parent company's profit and loss before tax is affected by a gain of DKK 54.3 million (2020: loss of DKK 26.2) from subsidiaries.
Parent company equity per 31 December 2021 amounts to DKK 1,219.1 Million (31 December 2020: DKK 1,071.9 million).
Risk factors
Financial Risk
The financial management of the Group is geared towards optimising the term structure of liabilities in line with the Group's operations and mini-
mizing the Group's financial risk exposure. It is part of the Group's policy not to conduct speculative transactions by active use of financial instru-
ments, except to manage the financial risks inherent to the Group’s core activities.
The Group is exposed to various financial risks due to its activities, including liquidity risk, market risks (primarily interest rate risk) and credit risk.
Park Street regularly reviews the Group's risk profile in the areas of greatest risk, as per above description on page 2 and on the Consolidated
Financial Statements Note 1 and 28.
Other financial risks
Park Street financial risks are described in the consolidated financial statements, Note 28 and includes a description of the following compo-
nents:
Liquidity risk
Refinancing risk
Liquidity risk management
Interest rate risk.
Credit risk.
Capital management.
Refer to the information in Note 28.
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Business risks
Park Street is subject to normal commercial and societal risks applicable to players in the Danish real estate market.
Park Street's significant business risks can be divided into the following categories:
Properties market value
Market Rent
Vacancy
Maintenance
Sales of properties
Errors and omissions concerning the renovation and new construction.
Properties market value
Park Street values investment properties at fair value (market value) and includes valuation adjustments in net profit. Park Street's portfolio of
properties constitute a large share of the Group's balance sheet, which means that sensitivity to falling prices in the property market is relatively
large.
Property value is influenced by several factors, including a particular value sensitivity to fluctuations in the following parameters:
i. Market rent
ii. Vacancy
iii. Yield
Estimated changes in the properties' fair value changes of the parameters above are disclosed in note 1 to the consolidated financial statements.
Market Rent
Some of the properties in Park Street’s portfolio have leases which were either entered into or renegotiated during the tough markets of 2009 to
2014. The Group has an opportunity to review these leases to migrate the lease levels closer to market rents. Improving demand for space and
increasing market rents could also give an opportunity to make capital investments on structurally vacant areas of the portfolio to create further
lettable areas.
Renegotiating with existing tenants could create the risk of increased vacancy, which in turn will create a need for further capital investment re-
quirements for upgarading the vacant space.
Vacancy
Park Street is dependent on the ability to maintain or create a natural user requirement for the properties.
In the case of a tenant's relocation of a lease, there is a risk that the vacant lease cannot be re-leased within the expected time horizon or, if nec-
essary, can only be leased at lower rent level than expected. In addition, vacancy rates are affected by the general economic situation in the area
where the individual property is situated.
Maintenance
The basis for obtaining rental income is, of course, that Park Street can offer leases that meet the expectations and requirements of the tenants,
including a satisfactory maintenance condition for the property.
Lack of maintenance of properties therefore creates a risk to Park Street. Lack of maintenance can be due to many conditions, such as structural
deficiencies, unforeseen wreckage, vandalism, extreme weather conditions, etc. The company prepares long term maintenance budgets and
carries out the maintenance work necessary to maintain a satisfactory maintenance condition on the properties.
Sales of properties
Park Street sells properties that are suitable to sell. The selling price is naturally linked to uncertainty as it depends on the actual negotiation situa-
tion at the time of sale and is also influenced by a number of other factors, including the rental income of the property, the general interest rate
level and market conditions at the time of sale.
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Errors and deficiencies regarding rebuilding and newbuilding
When rebuilding the existing properties of the Group, or in the case of new construction, there is a risk of malfunctioning. Park Street ensures
against this through contracts with the Group's suppliers (contractors, etc.) who will be required to correct any deficiencies. In cases where suppli-
ers have gone bankrupt or for some reason cannot fill their obligations, Park Street may, however, have to rectify defects at your own expense,
provided there is no guarantee or other security from the suppliers.
Other risks
Other risks can be divided into the following categories:
Insurance risks.
Tax risks.
Legal risks.
IT risks.
Insurance risks
Park Street subscribes to statutory insurance and insurance policies that are deemed to be relevant and customary. The Group regularly conducts
an insurance review with the assistance of an insurance specialist. Based on the latest report on company’s insurance coverage, management
believes that Park Street has sufficient insurance coverage.
Tax risks
Changes in tax legislation may affect Park Street's fiscal situation.
Legal risks
Park Street regularly enters into a number of agreements, including agreements concerning the operation of properties. The agreements involve
opportunities and risks, which are assessed and hedged in connection with the conclusion of the agreements.
IT risks
Park Street uses IT to a considerable extent and are thus exposed to operational disruption of the established IT safety. This can cause operating
and financial losses. Park Street constantly works to ensure a high level of IT security, which is currently estimated to be the case.
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Legal requirements for corporate governance
Park Street has chosen on the company's website to publish the statutory statement of business management, according to section § 107b of
the Danish Financial Statements Act (Årsregnskabslovens § 107b.).
The full statutory report available on our website http://www.psnas.com/index.php/corporate-governance-statement/
Internal control and risk management systems in relation to the accounting process
Park Street Board of Directors and the Audit Committee have the overall responsibility for risk management and internal controls in relation to the
presentation of the Group financial statements. The Group’s internal control and risk management systems relating to the accounting process are
designed to minimise the risk of irregularities and significant errors in the published financial statements.
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The Board of Directors / Audit Committee regularly assess material risks and internal controls in order to ensure that the control environment of
Park Street provides a good risk management and effective internal control.
At least once a year, as part of risk assessment, the Board of Directors / Audit Committee and the Executive Board undertake a general identifica-
tion and assessment of risks in connection with the financial reporting, including the risk of fraud, and consider the measures to be implemented in
order to reduce or eliminate such risks.
The Board of Directors is overall responsible for the Group having information and reporting systems in place to ensure that its financial reporting is
in conformity with rules and regulations. For this purpose, the Company has set out detailed requirements in policies, manuals and procedures.
The internal control and risk management systems are monitored at different levels within the Group. Any weaknesses, control failures and viola-
tions of the applicable policies, manuals and procedures or other material deviations are communicated upwards in the organization in accordance
with relevant policies and instructions. Any weaknesses, omissions and violations are reported to the Executive Board.
The auditors elected by the Annual General Meeting account for any material weaknesses in the internal control systems related to financial report-
ing in the Auditor’s Long-form Report to the Board of Directors. Minor irregularities are reported in Management Letters to the Executive Board.
The Group has no change of control affecting the Annual Report.
Management composition and remuneration
The management of Park Street consist of the following:
Board Directors
Executive Board
Appointed /
Employee
Expiry of
electoral
term
Age
Shareholding at
the beginning,
number of
shares
Share buy in the
year, number of
shares
Shareholding
at the end of
the year
Independence
Sex
Board of Directors
Andrew LaTrobe
2017
2022
56
0
0
0
Not Independent
M
Pradeep Pattem (**)(***)
2016
2022
45
0
0
6,722,484
1)
Not Independent
M
Ohene Kwapong
2016
2022
60
0
0
0
Independent
M
Anita Nassar(*)(****)
2016
2022
59
0
0
0
Independent
F
Claes Peter Rading
2021
2022
59
0
0
0
Independent
M
(*) Anita Nassar holds the position of chairman of the Board
(**) Pradeep Pattem holds the position of CEO of the Company
(***) Pradeep Pattem holds controlling rights in Park Street Nordac Sarl through Park Street Asset Management
(****) Anita Nassar hold shares in Park Street Nordac Sarl without controlling rights
1) Acquired via Park Street Asset Management Ltd.
Remuneration to the Board of Directors and Executive Board
The purpose of the Group's remuneration, including any incentive remuneration, is to attract and retain the group's management skills and pro-
mote the management incentive to realize Park Street’s objectives and create value in and for the company.
A remuneration policy has been prepared that describes the guidelines for defining and approving remuneration for the members of the Board of
Directors and the Executive Board. The remuneration policy approved at the company's general meeting and is available on www.nordicom.dk and
www.psnas.com.
The board members receive a fixed monthly fee. The Chairman receives DKK 250,000 annually, the Vice Chairman of the Board (currently va-
cant) receives DKK 150,000 annually, and other Board members receive DKK 100,000 annually. In addition, the Chairman of the Audit Committee
receives DKK 75,000 annually and other members of the Audit Committee receive DKK 50,000 annually.
Park Street/ Director’s report
21
The remuneration for the members of the Board of Directors in 2021 is shown in Note 5 of the consolidated financial statements.
Salary and employment conditions for the Executive Board are set at least once a year by the Board of Directors. The salary consists of fixed
salary, without bonus and pension. In addition, the Executive Board receives free telephone, etc. Total wage package is composed so that the fees
are set at a competitive level, taking into account the competencies and efforts of the Executive Member and the results achieved. Reference is
made to note 5 of the consolidated accounts regarding remuneration to the Executive Board.
Board of Directors and Management
Pradeep Pattem (Indian Citizen), Director and CEO
Pradeep Pattem is a graduate engineer from the Delhi Institute of Technology and has an MBA from the Indian Institute of Management, Calcutta.
As the founder and CEO of Park Street Advisors Limited, Pradeep has advised and implemented investments in across Europe since its estab-
lishment in 2014. Pradeep previously had a position as Managing Director, Head of Credit & Mortgage Markets for Europe and Asia in the Royal
Bank of Scotland (RBS). In connection with the employment in RBS, Pradeep also held senior positions as a member of the Global Trading Man-
agement Committee, the Chairman of the Strategic Investments Committee and the Chair of Credit & Mortgage Risk and Compliance Committee.
Management Positions
Park Street Asset Management Limited, England.
Park Street Advisors, England.
Pulse Taastrup P/S, Denmark.
Pulse Glostrup P/S, Denmark.
Director positions
CEO of Park Street A/S, Denmark.
Phoam Studio ApS
PSN ApS
Pulse Living ApS
Andrew LaTrobe (UK citizen, chairman)
Andrew LaTrobe graduated with a Bachelor of Commerce degree from Rhodes University in South Africa, and then completed a Diploma in Social
Studies at Oxford University and a MSC (Industrial Relations) at London School of Economics, as a Rhodes Scholar. He has been a director of
Park Street Advisors since December 2014 with responsibility for operations, asset management and corporate governance. Previous corporate
experience includes seven years working in a variety of client coverage and transaction execution roles at Royal Bank of Scotland (RBS), and
twelve years with Standard Bank Group, working out of Johannesburg, London and Singapore.
Management Positions
Park Street Asset Management Limited, England.
Park Street Advisors, England.
Park Street UK Limited, England
Xplore Markets Limited, England.
Pulse Taastrup P/S, Denmark.
Pulse Glostrup P/S, Denmark.
Director positions
Enviro Options Holdings (Pty) Ltd, South Africa
Swindon Ground Lease Limited, England
Sthenos International Limited, England
Ohene Aku Kwapong (US citizen, Ghanaian citizen)
Ohene Aku Kwapong is a graduate of Massachusetts Institute of Technology’s (MIT) Sloan School of Management, Cambridge, Massachusetts,
with MBA in Financial Engineering and also studied Chemical / Nuclear Engineering at MIT. He holds a PHD in Non-linear Systems Dynamics from
Park Street/ Director’s report
22
Columbia University, New York. Ohene Aku has previously held senior positions at Exxon Mobil, Deutsche Bank London, Senior Manager at
Microsoft Corporation, VP at GE Capital, Senior Vice President at the New York City Economic Development Corporation, Senior VP at Deutsche
Bank in New York, and COO EMEA Credit at Royal Bank of Scotland in London. Since 2014, Ohene Aku has been engaged in consultancy in
restructuring and launched The Songhai Group, a corporate development company.
Management Positions
Managing Partner, The Songhai Group, US.
Director positions
Ecobank Ghana, Risk and Governance Committees.
The Practice School, an executive management skills company.
Trustee, Head of State Award Scheme – Ghana.
Anita Nassar (formerly Kamal) (French citizen)
Anita Nassar holds a bachelor's degree in business administration from the American University of Beirut. Anita is the founder of 'Alternative Con-
sultant Group'. Ms Nassar is Partner and Senior Managing Director at Balyasny Asset Management. She is also a member of BAM’s Management
Committee. Anita joined BAM from Citadel where she was a Partner and Managing Director serving Europe, the Middle-East, Africa and Asia
Pacific. Prior to joining Citadel, Anita served at Merrill Lynch, London as Managing Director, Co-Head of Government Institutions Sales. Previously,
she worked at HSBC London as Managing Director, Global Head of Government Sales, serving Asia, Europe, and the Americas.
Management Positions
Founder and CEO at Alternative Consultant Group.
Partner, Senior Managing Director at Balyasny Asset Management.
Director positions
Board of Trustees at Northeastern University, Boston, USA.
Endowment Trustee in the Funds and Investments Subcommittee at Northeastern University, Boston, USA.
Claes Peter Rading (Swedish citizen)
Peter Rading is a Swedish citizen who graduated with a Bachelor of Science in Business Administration Summa Cum Laude from Georgetown
University DC in 1986. He worked for Royal Bank of Scotland Plc from 1990 to 2013, running multiple complex global businesses for the bank
between 2000 and 2013, when he then retired from the bank and the banking industry. His final position at the bank was as Global Co-Head of
Trading and included his serving on the Investment Bank executive committee, the Markets division management committee and as Chair of the
bank’s technology board. Since his departure from Royal Bank of Scotland Plc in 2013, Peter has actively focused on private investment activity in
the real estate sector, including an active involvement in the Nordics and high growth specialist real estate sub-sectors.
Management positions:
Seequestor, UK
Telios Capital Holdings, UK
Board Observer, UK
IP Nexus, US
LocalCircles India Pvt Ltd, India
Director positions:
Elwyn Green Ltd
Kamo River Investments Ltd
Telios Holdings Ltd
Tillingbourne (Canterbury) Ltd
Tillingnourne (Horham) Ltd
Park Street/ Director’s report
23
Shareholder structure
Shareholders above 5%
In percent
92.14%
The number of registered shareholders amounts as of 31 December 2021 to 913 pcs. (December 31, 2020: 990). The registered shareholders
represent per 31 December 2021 99% of the share capital (31 December 2020: 99%).
All Park Street A / S shares are listed on Nasdaq Copenhagen and are part of the Small Cap segment. The share price ended 31 December 2021
at price 14.1 (31 December 2020: 10.00), which is an increase of 4.1 points in relation to the share price per share as of 31 December 2020. The
market value of Park Street A / S constitute as of 31 December 2021 169.59 million (31 December 2020: DKK 120.28 million).
Appointment of board members
Rules of appointing and replacing members of the board of directors are included in the section 13.1 of the articles of association.
Rules for changing articles of association
Park Street A/S articles of association can be changed by a General Meeting in accordance with the Companies Act §§106 and 107. Resolution on
amendment of the Articles of Association are only valid if the resolution is approved by at least 2/3 of both voting rights and percentage of equity
which are present at the meeting.
Own shares
Information about treasury shares is shown in note 23 of the consolidated financial statements.
Dividends
The performance the Company during 2021 was impacted to a certain extent by COVID-19 related disruption with lower than expected top line
revenue. However, in view of tighter cost control the performance was in line, though at lower end of the expectations. The Board of Directors
deems it prudential to propose to the Annual General Meeting that no dividend will be paid for the financial year 2021.
Investor Relations
It is Park Street's policy to inform quickly about relevant matters.
The Executive Board informs shareholders and investors according to guidelines agreed with the Board, and it is the goal to meet the information
obligations of Nasdaq Copenhagen each time. It is part of Park Street's information policy to:
publish interim reports,
issue annual reports, and
provide quick responses to inquiries to the group.
Share capital
DKK 67,513,372
Nominal share amount
DKK 1
Number of shares
67,513,732 shares
Share Classes
DKK 12,027,858 A-shares Listed
DKK 55,485,874 B-shares Not listed
Number of votes per share
One
Bearer
Yes
Restriction on voting rights
No
Limitations on transferability
No
ISIN
DK0010158500
Stock Exchange
Nasdaq Copenhagen
Park Street/ Director’s report
24
Stock exchange announcements in 2021 and 2022
Date
Title
08-01-2021
Park Street Nordicom A/S – Share buyback program
27-01-2021
Park Street Nordicom A/S – Share buyback program
27-01-2021
Park Street Nordicom A/S – Share buyback program
29-01-2021
Park Street Nordicom : Strategy 2021
04-02-2021
Park Street Nordicom A/S – Share buyback program
15-02-2021
Park Street Nordicom A/S – Share buyback program
23-02-2021
Park Street Nordicom A/S – Share buyback program
26-02-2021
Park Street Nordicom A/S – Share buyback program
25-03-2021
Park Street Nordicom A/S – Annual Report 2020
01-04-2021
Park Street Nordicom A/S – Annual General Meeting 2021
22-04-2021
Park Street Nordicom A/S – Notification regarding the course of the ordinary general meeting
26-08-2021
Park Street A/S – Interim Financial Report, 1st half of 2021
30-09-2021
Park Street A/S has signed long term debt facilities of DKK 619 million and is also launching the Pulse Nørrebro project
04-02-2022
Park Street A/S : 2022 Strategy
25-02-2022
Park Street A/S – New share buyback program
07-03-2022
Park Street A/S – New share buyback program
16-03-2022
Park Street A/S – New share buyback program
Financial Calendar
04-02-2022
2022 Strategy Update
01-04-2022
Annual Report 2020
25-04-2022
Ordinary General Meeting
26-08-2022
Half year report 2022
30-03-2023
Annual Report 2022
21-04-2023
Ordinary General Meeting
More info
Further information on company and shareholder matters and the Group's activities can be found on Park Street's website www.nordicom.dk and
www.psnas.com
Inquiries regarding the Group's relations with investors and the stock market can be addressed to:
CEO: Pradeep Pattem
Tel.: + 45 33 33 93 03
E-mail: nordicom@nordicom.dk
Group structure at December 31, 2021
The Group structure at December 31, 2021 consists of the company Park Street A/S and the fully owned subsidiaries Pulse Taastrup P/S, Pulse
Glostrup P/S, Pulse N P/S, Pulse O P/S, Ballerup Hotel P/S, Svanevej P/S, Toldbuen P/S, PS Holdco I P/S, Phoam Studio ApS, PSN ApS, Pulse
Living ApS, Albuen ApS, PS I ApS, and Park Street UK.
Information on investment is disclosed in note 8 of the parent company's financial statements. All subsidiaries are fully consolidated in the consoli-
dated financial statements of Park Street A/S.
Park Street/ Statements
25
Management
Pradeep Pattem
CEO
Board of Directors
26
Independent Auditor’s Report
Report on the audit of the Financial Statements
27
28
CVR no 3377 1231
mne32806
29
30
2021
CONSOLIDATED
FINANCIAL STATEMENTS
Park Street | CONSOLIDATED Financial Statements
31
Income statement
Note
Amounts in DKK 1000s
2021
2020
3
Net sales
4
Operating expenses
-40,846
-47,690
Gross profit
5
Employee benefit expenses
-17,808
-17,977
6
Other external expenses
-12,532
-8,540
7
Depreciation, amortisation and impairment
-4,330
-2,891
Operating profit (EBIT)
8
Financial expenses
-25,881
-25,757
Earnings before value adjustments (EBVAT)
9
Adjustment to fair value, net
10
Gains realised on the sale of investment properties
Profit before tax
11
Tax on profit for the period
-41,767
-42,438
Profit for the period
Distributed as follows
Parent's shareholders
Profit for the period
12
Earnings per share, average number of shares
12
Diluted earnings per share, average number of shares
Park Street | CONSOLIDATED Financial Statements
32
Statement of comprehensive income
Note
Amounts in DKK 1000s
2021
2020
Profit for the period
Other comprehensive income:
Items that cannot be reclassified to the income statement:
Fair value adjustment of domicile properties
-503
Tax on fair value adjustment of domicile properties
-1,549
Other comprehensive income after tax
-392
Comprehensive income for the period
Distributed as follows
Parent's shareholders
Comprehensive income for the period
Park Street | CONSOLIDATED Financial Statements
33
Statement of financial position
Note
Amounts in DKK 1000s
2021
2020
ASSETS
Non-current assets
Intangible assets
13
Software
Investment property and Property, plant and equipment
14
Domiciles
15
Investment properties
16
Machinery and equipment
Financial assets
17
Investment in associates
Deposits
Total non-current assets
Current assets
18
Current financial assets at amortised cost
19
Project holdings
20
Receivables
Income tax receivable
Prepaid expenses and accrued income
21
Cash and cash equivalents
Total current assets
Total assets
Park Street | CONSOLIDATED Financial Statements
34
Statement of financial position
Note
Amounts in DKK 1000s
2021
2020
LIABILITIES
Equity
Share capital
Revaluation reserve
Share Premium
Accumulated profit
22,23
Total equity
Liabilities
Non-current liabilities
24
Deferred tax
25
Borrowings
Deposits
Current liabilities
26
Provisions for liabilities
25
Current borrowings
Trade and other payables
Income tax payable
Deposits
Other liabilities
Total liabilities
Total equity and liabilities
Park Street | CONSOLIDATED Financial Statements
35
Statement of equity
Amounts in DKK 1000s
Share capital
Revaluation
reserve
Accumulated
profit
Share
Premium
Equity
Total
Statement of equity for 2021:
Equity as at 1 January 2021
Comprehensive income for the period
Profit for the period
Fair value adjustment of domicile
-503
-503
Tax on other comprehensive income
Other comprehensive income during the financial year
-392
-392
Comprehensive income for the period
-392
Transactions with owners
Repurchase treasury shares
Total transactions with owners
Other adjustments
Depreciation of revalued value of domiciles
-1,795
Total other adjustments
-1,795
Equity as at 31 December 2021
Park Street | CONSOLIDATED Financial Statements
36
Amounts in DKK 1000s
Share capital
Revaluation
reserve
Accumulated
profit
Share
Premium
Equity
Total
Statement of equity for 2020:
Equity as at 1 January 2020
Comprehensive income for the period
Profit for the period
Fair value adjustment of domicile
Tax on other comprehensive income
-1,549
-1,549
Other comprehensive income during the financial year
Comprehensive income for the period
Transactions with owners
Repurchase treasury shares
-10,000
-10,000
Total transactions with owners
-10,000
-10,000
Other adjustments
Depreciation of revalued value of domiciles
-1,563
Total other adjustments
-1,563
Equity as at 31 December 2020
Park Street | CONSOLIDATED Financial Statements
37
Statement of cash flows
Note
Amounts in DKK 1000s
2021
2020
Operating profit (EBIT)
Adjustment for illiquid operating items, etc.
Change in operating capital
-6,380
Cash flows concerning primary operations
Financial income received
Financial expenses paid
-29,902
-25,757
Paid Corporate Tax
-5,275
-4,358
Total cash flow from operating activities
Cash flow from investing activities
Improvements to investment properties
-25,803
-36,991
Sales of investment properties
Purchase of intangible assets
-3,249
Purchases of other property, plant and equipment
-14,645
Total cash flow from investing activities
-17,777
Cash flow from financing activities
Repurchase treasury shares
-10,000
Proceeds from borrowings
Repayment of liabilities to credit institutions
-398,859
-150,831
Repayment of debt from disposal of assets
-77,510
Total cash flow from financing activities
-238,341
Total cash flow for the period
-38,455
Liquid assets as at 1 January
Liquid assets at the end of the period
Liquid assets at the end of the period
Cash and cash equivalents
Liquid assets at the end of the period
38
Summary
Note 1
Accounting policies, accounting estimates and risks, etc.
Note 2
Segment information
Note 3
Net sales
Note 4
Operating expenses
Note 5
Employee benefits expenses
Note 6
Auditor’s fees
Note 7
Depreciation, amortisation and impairment
Note 8
Financial Expenses
Note 9
Adjustment to fair value, net
Note 10
Gains realised on the sale of investment properties
Note 11
Tax on profit for the year and other comprehensive income
Note 12
Earnings per share
Note 13
Intangible assets
Note 14
Domiciles
Note 15
Investment properties
Note 16
Machinery and equipment
Note 17
Investment in associates
Note 18
Current financial assets at amortised cost
Note 19
Project holdings
Note 20
Receivables
Note 21
Cash and cash equivalents
Note 22
Share capital
Note 23
Own shares
Note 24
Deferred taxes
Note 25
Borrowings
Note 26
Provisions for liabilities
Note 27
Contingent assets and liabilities
Note 28
Financial risks and use of derivative financial instruments
Note 29
Non-current operating items, etc.
Note 30
Change in operating capital
Note 31
Related parties
Note 32
Subsequent events
Note 33
Accounting policies
39
Notes
Note 1 - Accounting policies, accounting estimates and risks, etc.
Note 1.1. – Basis of preparation
a. Accounting policies
The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. These policies have been
consistently applied to all years presented, unless otherwise stated. Refer to note 33 for a full description of the accounting policies used.
The company presents its annual report in compliance with reporting class D.
b. Changes to accounting policies
Accounting policies are unchanged from the previous year.
Note 1.2. – Investment properties
A property that is held for long-term rental yields or for capital appreciation or both, and that is not occupied by the companies in the consolidated
Group, is classified as investment property. An investment property is measured initially at its cost, including related transaction costs and where
applicable borrowing costs. After initial recognition, an investment property is carried at fair value.
Fair value is based on active market prices, adjusted, if necessary, for differences in the nature, location or condition of the specific asset. If this
information is not available, the Group uses alternative valuation methods, such as recent prices on less active markets or discounted cash flow
projections. The fair value of an investment property reflects, among other things, rental income from current leases and other assumptions market
participants would make when pricing the property under current market conditions. Subsequent expenditure is capitalised to the asset’s carrying
amount only when it is probable that future economic benefits associated with the expenditure will flow to the Group and the cost of the item can be
measured reliably. All other repairs and maintenance costs are expensed when incurred. When part of an investment property is replaced, the
carrying amount of the replaced part is derecognised.
Changes in fair values are recognised in the income statement. Investment properties are derecognised when they have been disposed. Where the
Group disposes of a property at fair value in an arm’s length transaction, the carrying value immediately prior to the sale is adjusted to the transac-
tion price, and the adjustment is recorded in the income statement within net gain from fair value adjustment on investment property.
The principles and methods for determining the estimated fair value of the properties in this category is based on the capitalisation method. The
determination of fair values in accordance to the capitalisation method is generally the most accepted and widely used model for valuating property.
The method is based on a stabilised net rent, capitalised at a rate of return assuming a stabilised property in a stable market, which is fully let at an
annual market rent at, or close to, market level. For non-stabilised properties, special conditions such as vacancy and refurbishment costs are
taken into consideration.
The model used contains the following main elements:
1
+ Annual Rental Income (fully rented)
2
- Non-recoverable operating costs
3
= Net Operating Income (NOI)
4
- Cap rate (net initial yield)
5
= Market value before regulations and deposits
6
- Vacancy costs
7
- Refurbishment cost
8
- Rental loss (discounts, etc.)
9
+ Net Present Value (NPV) of Overrented elements
10
- Net Present Value (NPV) of Underrrented elements
11
+ Cash deposits
12
+ Other
13
= Market value after regulations and deposits (Fair Value)
40
Ad. 1) The annual rental income represents the budget rent. For non-vacant units, the budget rent equals the actual rental income. If the actual
rental income differs significantly, the market rent is used. For vacant areas, the market rent is used.
Ad. 2) All operating expenses not recoverable from the tenants are deducted. This includes taxes, insurance, cleaning, utility costs, service sub-
scriptions, administration, external maintenance etc.
Ad. 4) The yield requirement is determined individually for each property based on the yield requirement for comparable properties in the same
geographical area (where this is possible) and the property's risk profile.
Ad. 6) Vacancy costs reflect the estimated loss of rental income until a re-letting is assumed. There is vacancy until the stablised level is reached.
When the stabilised level is reached all properties are assumed fully let.
Ad. 7) For vacant units, it is assumed that a refurbishment is required before a re-letting can take place. At some properties, these are not included
as the leases already are ready for reletting.
Ad. 8) Current discounts are deducted from the market value.
Ad. 9) If an overrented lease is regulated to market rent, it is implemented over a 4-year period according to section 13 in the Danish Commercial
Rent. As a result, the lease will generate an overrenting element in this period.
Ad. 10) If an underrented lease is regulated to market rent, it is implemented over a 4-year period according to section 13 in the Danish Commercial
Rent. As a result, the lease will generate an underrenting element in this period.
.
The calculation of the properties' fair value is sensitive to changes in all the above inputs to the valuation model. The most significant non-
observable inputs used in calculating the current value of the completed investment properties are as follows:
i. Market Rent per square meter (sqm.) per year
ii. Vacancy
iii. Yield
A general increase in market rent per sqm and decrease of the vacancy in the areas in which Park Street's properties are located, will likely
decrease the yield requirements.
i. Market Rent per sqm per year
Market rent per sqm per year represents an important input for calculating the fair value of the property. If it is estimated that the current rent is
lower or higher than the rent that can be obtained by re-hire, a correction of the current rent will be made to the expected rent on re-hire. This input
is based on an estimate. Similarly, input on market rent for empty areas is based on an estimate. The long-term average market rent (ie at terminal
level) is the following divided by property types:
Avg. gross rent per sqm p.a. (DKK)
2021
2020
Retail
1,184
826
Office
969
867
Residential
2,256
1,188
Storage
405
337
Other
924
430
Total
907
808
The estimated fair value is sensitive to changes in the estimated budget rent. The sensitivity of changes in the average budget rent per sqm are
illustrated in the table below, which shows the effect on the fair value of the properties if only the average budget rent per change is changed sqm
per year.
41
Change in market rent
Change in market value (Million DKK)
per sqm per year (DKK)
2021
2020
200
592
565
100
296
282
50
148
142
-50
-148
-141
-100
-296
-276
-200
-592
-545
The table shows that an increase in the market price of, for example 50 DKK per sqm per year will increase the completed investment proper-
ties' fair value by DKK 148 million (31 December 2020: DKK 142 million).
ii. Vacancy
No structural vacancy has been considered in the property valuation; as it has been estimated that the current vacancy will be let within 6 to 12
months. An increase in the current vacancy has been estimated and represents the following (broken down by property types and calculated as
estimated vacancy divided by the market rent in the terminal):
Change in Vacancy
Change in market value (Million DKK)
(%-point)
2021
2020
10%
-4
-2
5%
-2
-1
-2%
1
1
-5%
2
2
The table shows that an increase in the vacancy by 5 percentage points will reduce the finished investment property with the fair value of DKK -2
Million (31 December 2020: DKK -1 million).
iii. Yield
The fixed return requirement is an essential input in estimating fair values. The table below shows the ranges for the return requirement divided by
property type and the weighted return requirement in- for each property type.
2021
2020
Percentage p.a.
Interval
Weighted Avg
Interval
Weighted Avg
Retail
5.92 – 8.75
7.64
6.00 – 8.75
7.44
Office
5.27 – 7.50
6.60
5.00 – 8.50
6.46
Storage
8.50 – 9.50
9.00
6.75 – 9.50
7.27
Residential
3.85 – 6.49
4.68
4.13 – 5.50
4.58
Others
5.50 – 6.50
5.92
6.50 - 6.75
6.51
Total
3.85 - 9.50
6.20
4.13 - 9.50
6.30
The table shows that the return requirements for completed investment properties at December 31, 2021 is in the range 3.85% - 9.50% per annum.
The corresponding interval at December 31, 2020 amounted to 4.13% - 9.50% per annum.
The weighted yield requirement in the table are calculated as each property yield requirements weighted by the property's fair value in relation to
property type's / portfolio's fair value and amounts at December 31, 2021 6.20% per annum for the overall portfolio of finished investment proper-
ties at December 31, 2020, the corresponding weighted return requirements for the entire portfolio 6.30% per annum.
The yield requirements used have a significant impact on the fair value of the property. The sensitivity of changes in the return requirement is
illustrated in the table below which shows the effect on the fair value of the properties if only the average return rate is changed.
42
Change in return requirements
Change in market value (Million DKK)
(% points)
2021
2020
1.00%
-330
-285
0.75%
-256
-221
0.50%
-177
-152
0.25%
-92
-79
-0.25%
99
85
-0.50%
207
201
-0.75%
325
302
-1.00%
455
412
The table shows that an increase in the rate of return of 0.25 percentage point would reduce the completed investment property fair value DKK -
92 million (31 December 2020: DKK -79 million).
The breakdown by activity based the property value is split as follows:
Amount in Million DKK
2021
2020
Residential
515
20%
339
14%
Residential Project
470
18%
394
16%
Office
842
32%
701
28%
Retail
692
26%
907
37%
Hotel
92
3%
89
4%
Storage
26
1%
32
1%
Total
2,636
2,462
Determining the fair value of Domicile properties
From 2015 domicile properties have been evaluated at the amount equivalent to the fair value at the date of revaluation less depreciation, see
mention in the note 33. Park Street possesses at 31 December 2021 the following two domiciles:
Svanevej 12, Copenhagen NV (Park Street's headquarters in Copenhagen Nordvest neighborhood).
Marbækvej 6, Ballerup (Hotel in Ballerup).
When calculating the fair value of the above two domicile properties, principles and calculation methods are applied which are used to estimate the
property's fair values.
Due to different characteristics, different principles and calculation methods are used for each of the two domicile properties.The fair value of both
owner-occupied properties is based on significant estimates.
Changes in fair values are recognised in other comprehensive income statement. Domicile properties are derecognised when they have been
disposed or transferred into investment property.
The estimation of the properties’ fair value as of December 31, 2021 resulted in a revaluation of the properties’ book value by - DKK 0.5 million (31
December 2020: DKK 7.0 million), which is included under "Fair value adjustment of domicile properties" in other comprehensive income.
i. Park Street domicile in Copenhagen
Park Street's headquarters at Svanevej 12 in Copenhagen Nordvest neighbourhood is an office building that is partially used as domicile for Park
Street and partly for rental. The property is characterized by generating a current return on rent, similar to the Group’s investment properties (see
description above except that the property is also used as domicile for Park Street). Principles and methods for determining the property’s fair value
is the same as the applied to Investment properties described above.
Property estimated market rent and determining the required return on owner-occupied property is based on inputs from an independent valuer.
The estimate of the property's fair value, similar to the Group's completed investment properties, is sensitive to changes in input in the valuation
model. The most significant non-observable input used for estimating the fair value of the domicile property is as follows:
43
2021
2020
Market rent per sqm. per year (DKK)
1,200
1,240
Vacancy (%)
0
0
Return requirement (% p.a.)
5.26
5.25
The sensitivity to changes in the above non-observable input can be illustrated as follows (assuming the listed events occur one by one):
An increase or decrease in the market price of DKK 50 per sqm per year will result in a change of the property's fair value, respectively
DKK +3.8 million. (31 December 2020: DKK +3.8 million) and DKK -3.7 million (31 December 2020: DKK -3.7 million).
An increase or a reduction of the required yield of 0.50% point will entail a change of the property's current value, respectively DKK -7.9
million (31 December 2020: DKK -7.8 million) and DKK +9.5 million (31 December 2020: DKK +9.4 million).
A general increase in market rent per sqm and decrease in vacancy in the district, where the property is located, will likely cause a drop in the
yield requirement.
ii. Hotel in Ballerup
Park Street hotel on Marbækvej 6 in Ballerup is a property where Park Street via a management agreement operates the hotel. This property is
thus characterized by generating a current return operation from the property. In order to calculate the property's fair value separated from the hotel
operations, the measurement of the property's fair value based on an estimate of market rent that could be obtained on a normal lease. The esti-
mate of market rent is calculated as a fixed percentage of the revenue of the hotel.
The estimate of the hotel’s expected revenue is based on budgeted stabilized revenue discounting a ramp up cost that equals the difference be-
tween 2021 actual revenue and the stabilized budget revenue.
Property estimated market rent and determining the required return on owner-occupied property is based on inputs from an independent valuer.
The estimate of the property's fair value, similar to the Group's completed investment properties, is sensitive to changes in input in the valuation
model. The most significant non-observable input used for estimating the fair value of the domicile property is as follows:
2021
2020
Market rent (% of expected revenue from the hotel)
35
33
Return requirement (% p.a.)
6.5
5.5
The sensitivity to changes in the above non-observable input can be illustrated as follows (assuming the listed events occur one by one):
An increase or a reduction of the required yield of 0.50% point will entail a change of the property's current value, respectively DKK -4.0
million (31 December 2020: DKK -9.1 million) and DKK +5.0 million (31 December 2020: DKK +10.9 million).
Classification of properties
Park Street classifies the properties in the following categories:
Domicile (Owner-occupied properties)
Investment Properties
Reference is made to note 33 in accounting policies for a more detailed description of how the properties are included in the above-mentioned
classifications.
Classification of properties takes place on the basis of Park Street's intentions with each land or property at the time of acquisition. If the future
purpose for some reason is not finalized at the time of acquisition, the foundation is classified as an investment property.
44
In some cases, services may be provided to tenants, etc. that constitute significant benefits. Park Street owns and operates a hotel where services
to guests form a significant part of the total product. The property is therefore classified as a residential property.
Reclassification of properties between the above categories is made when the application is changed and a number of criteria are met. Notes to the
individual financial statements indicate whether changes have been made to the classification regarding properties owned by Park Street.
Deferred tax assets and liabilities
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realised or the liability is
settled, based on tax rates/laws that have been enacted or substantively enacted by the end of the reporting period.
Tax assets arising from unused tax losses, are valued based on existing budgets and profit forecasts for a 3-year period. Tax is recognized for
an unused tax loss carryforward or unused tax loss carryforward when it is considered probable that there will be sufficient future taxable profit
against which the loss or credit carryforward can be utilised.
At December 31, 2021 the Group has included unused tax losses of DKK 148 million (31 December 2020: DKK 165 million; 31 December 2019:
DKK 206 million) all of which is estimated to be realized within a three-year period or against deferred tax liabilities. The reduction in unutilized
losses in 2021 and 2020 is due to positive tax income.
Determining the fair value of debt to credit institutions
As stated on Note 25 the value of the Group’s mortgage debt and bank debt is classified as amortized cost.
As stated in Note 25 Group's non-convertible bonds are recognized as liabilities towards credit institution and are recognized as at fair value based
on data that is non-observable in the market.
Note 2 – Segment information
Park Street's property portfolio is managed under a single management makes no segmentation of the portfolio. Information on the Group's reve-
nue to external customers is disclosed in note 3 below.
The Group has no customers / tenants who make up more than 10% of the group's rental income. The group only has activities in Denmark.
Note 3 - Net sales
Amounts in DKK 1000s
2021
2020
Rental income
124,328
126,903
Sales of other services
33,041
45,179
Total sales of services
157,369
172,082
Interest income, mortgages and instruments of debt
895
587
158,264
172,669
Note 4 - Operating expenses
Amounts in DKK 1000s
2021
2020
Operating expenses, investment properties
35,678
43,263
Operating expenses, other services
5,168
4,428
40,846
47,690
45
Note 5 – Employee benefits expenses
Amounts in DKK 1000s
2021
2020
Salary
16,442
16,549
Contribution-based pensions (*)
862
958
Other social security costs
59
65
Other staff costs
445
406
17,808
17,977
Average number of employees
(*) The Group has only defined contribution plans. For defined contribution plans, the employer undertakes to pay a defined contribution to a pen-
sion fund, but has no risk with regard to future developments in interest rates, inflation, mortality, disability, etc. as regards the amount to be paid to
the employee.
Remuneration to the parent company's CEO (Pradeep Pattem) comprises the following (**):
Salary
2,760
2,760
Contribution-based pensions
0
0
Bonus
0
0
2,760
2,760
The CEO is also considered as “Key Management”
Remuneration to the parent company's board of directors constitutes the following (**):
Board members
Pradeep Pattem (CEO)
100
100
Andrew LaTrobe (Member of the Audit Committee)
183
250
Ohene Kwapong (Chairman of the Audit Committee)
175
175
Lars-Andreas Nilsen (Member of the Audit Committee) (*Jan-Apr 2021)
50
150
Anita Nassar (Chairman of the Board)
200
100
Claes Peter Rading (*May-Dec 2021)
77
0
Per Høpfner
0
50
785
825
(**) Remuneration of the board of directors is disclosed on the Director’s report of the Annual Report.
Note 6 – Auditor’s fees
The auditor appointed in 2021 and 2020 is PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab. Their fees can be specified as
follows:
Amounts in DKK 1000s
2021
2020
Statutory audit
533
428
Other assurance services
148
0
Tax and VAT advice
264
177
Other services
38
109
983
714
Fees for non-audit services delivered by PricewaterhouseCoopers, Statsautoriseret Revisionspartnerselskab, include issuing assurance statement
on opening balance in subsidiary and general accounting and tax advisory services.
46
Note 7 – Depreciation, amortisation and impairment
Amounts in DKK 1000s
2021
2020
Depreciation, software
1,807
1,361
Depreciation, domicile properties
1,795
1,563
Depreciation, inventory and fixed assets
728
-32
4,330
2,891
Note 8 – Financial expenses
Amounts in DKK 1000s
2021
2020
Interest expenses, liabilities to credit institutions measured at amortized cost
23,968
24,585
Other interest costs and fees
645
296
Borrowing costs
1,268
875
25,881
25,757
Note 9 – Adjustments to fair value, net
Amounts in DKK 1000s
2021
2020
Fair value adjustment, investment properties
128,887
79,463
128,887
79,463
Note 10 – Gains realised on the sale of investment properties
Amounts in DKK 1000s
2021
2020
Sales, investment properties
6,500
192,805
The property's carrying amount on sale etc.
-5,028
-154,322
1,472
38,483
Note 11 – Tax on profit for the year and other comprehensive income
Amounts in DKK 1000s
2021
2020
Annual tax can be divided as follows:
Current tax on profit of the year
1,128
4,524
Current tax, previous years
59
160
Changes in deferred tax liabilities
0
0
Changes in deferred tax assets previous years
40,295
37,805
Changes in deferred tax liabilities previous years
0
-51
41,482
42,438
47
Amounts in DKK 1000s
2021
2020
Tax on profit for the year can be explained as follows:
Estimated tax at a tax rate of 22%
41,190
41,307
Non-deductible costs
44
586
Non-taxable income
0
0
Adjustment of previous years taxes
73
545
41,306
42,438
Effective tax rate
22.06%
22.60%
Note 12 – Earnings per share
Amounts in DKK 1000s
2021
2020
Profit for the period
145,459
145,321
Parent company shareholders' share of profit for the year, used to
calculate earnings per share
145,459
145,321
Average number of shares
67,513,732
67,513,732
Average number of own shares
-1,037,804
-459,157
Average number of shares in circulation
66,475,928
67,054,576
Diluted average number of shares in circulation
66,475,928
67,054,576
Number of shares, end period
67,513,732
67,513,732
Number of own shares, end period
-1,037,804
-1,037,804
Number of shares in circulation, end period
66,475,928
66,475,928
Diluted average number of shares in circulation
66,475,928
66,475,928
Earnings per share (average number of shares) (DKK)
2.19
2.17
Diluted results per. share (average number of shares) (DKK)
2.19
2.17
Note 13 – Intangible assets
Amounts in DKK 1000s
2021
2020
Cost at 1 of January
5,421
2,172
Additions during the year
0
3,249
Cost at 31 December
5,421
5,421
Amortization at 1 January
-1,749
-388
Amortization during the year
-1,807
-1,361
Amortization at 31 December
-3,556
-1,749
Balance at 31 December
1,865
3,671
48
Note 14 – Domiciles
Amounts in DKK 1000s
2021
2020
Cost at 1 of January
208,689
201,648
Revaluation of value
0
7,041
Cost / Revaluated Value at 31 December
208,689
208,689
Depreciation and amortization at 1 January
-12,391
-10,828
Revaluation of the domicile
-503
0
Depreciation
-1,795
-1,563
Depreciation and amortization at 31 December
-14,689
-12,391
Balance at 31 December
194,000
196,298
Domicile properties consist of a hotel in Ballerup and Park Street’s headquarters in Copenhagen.
As the property is presented as a domicile, depreciation is required in accordance with IAS 16. Assets are revaluated equal to fair value at the date
of revaluation less accumulated depreciation and subsequent impairment losses. There have been revaluations both as of December 31, 2021 and
December 31, 2020.
Domicile properties are pledged as security for loans, mortgage loans and other credit institutions as stated in Note 18. Information on fair value
hierarchy of Domicile property is as follows:
Amounts in DKK 1000s
Level 1
Level 2
Level 3
Total
At 31 December 2021:
Domicile property
0
0
194,000
194,000
0
0
194,000
194,000
At 31 December 2020:
Domicile property
0
0
196,298
196,298
0
0
196,298
196,298
Classification of domicile properties in level 3 means that determining the fair value of domicile properties mainly based on data that are not ob-
servable in the market.
During the 2021 and 2020 there have been no transfers between levels of the fair value hierarchy.
The fair value of domicile properties is based on estimates. Refer to note 1 for additional details. No domiciles have been acquired in 2021 and
2020.
If Park Street domiciles were measured at the historical cost less accumulated depreciation, the book value would have been the following:
Amounts in DKK 1000s
2021
2020
Domicile properties
115,833
117,628
115,833
117,628
49
Note 15 – Investment properties
As of 31 December 2021 there are no ongoing sales processes regarding investment properties.
Amounts in DKK 1000s
2021
2020
Balance at 1 of January
2,462,633
2,477,996
Transfer to / from project holdings
-
1,628
Transfer to / from machinery and equipment
-
5,216
Costs incurred for improvements
25,803
36,991
Adjustment to fair value, net
128,887
79,463
Acquisition of properties
-
14,645
Depreciation of fixed assets
3,519
1,015
Retirement on sale
-5,028
-154,322
Balance at 31 December
2,615,815
2,462,633
Fair value hierarchy for investment:
Amounts in DKK 1000s
Level 1
Level 2
Level 3
Total
At 31 December 2021:
Investment properties
0
0
2,615,815
2,615,815
0
0
2,615,815
2,615,815
At 31 December 2020:
Investment properties
0
0
2,462,633
2,462,633
0
0
2,462,633
2,462,633
Classification of investment properties in level 3 means that determining the fair value of investment properties is mainly based on data that is not
observable in the market.
During 2021 and 2020 there has been no transfers between levels of the fair value hierarchy.
The fair value of investment properties is based on estimates. Refer to note 1 for additional details.
Total fair value adjustments on investment properties in the financial year are:
Amounts in DKK 1000s
2021
2020
Investment properties
128,887
79,463
128,887
79,463
Total fair value adjustments amounts to DKK 128.9 million (2020: DKK 79.5 million) for the properties owned by the Company as of December 31,
2021. These value adjustments are recognized in the income statement as “Adjustments to fair value, net”. Investment properties are pledged as
security for debt to mortgage banks and other credit institutions as indicated in Note 27.
The Group does not have any agreement which required the Group to build or redevelop any properties neither in 2021 or 2020.
The net income of the investment portfolio is as follows:
Amounts in DKK 1000s
2021
2020
50
Rental income from investment properties
119,609
121,842
Operating expenses, investment properties
-34,679
-42,098
Net income from investment properties
84,930
79,744
The Group has entered into operating leases (leases) to tenants of its investment properties. The leases duration is up to 15 years. The contract
minimum payments under existing leases are distributed as follows:
Amounts in DKK 1000s
2021
2020
Remaining termination within 1 year from the balance sheet date
30,956
80,608
Remaining termination between 1 and 5 years from the balance sheet date
90,311
120,944
Remaining termination after 5 years from the balance sheet date
88,762
53,272
210,029
254,824
Note 16 – Machinery and equipment
Amounts in DKK 1000s
IT Equipment
Appliances
Total Machinery and Equipment
Cost at 1 of January 2021
4,247
8,484
12,731
Additions during the year
0
0
0
Disposals during the year
-679
-4,199
-4,878
Cost at 31 December 2021
3,568
4,285
7,853
Amortization at 1 January 2021
-4,187
-7,752
-11,939
Amortization during the year
663
3,913
4,576
Amortization at 31 December 2021
-3,524
-3,839
-7,363
Balance at 31 December 2021
44
446
490
Cost at 1 of January 2020
4,164
8,356
12,520
Additions during the year
83
128
211
Disposals during the year
Cost at 31 December 2020
4,247
8,484
12,731
Amortization at 1 January 2020
-4,099
-6,799
-10,898
Amortization during the year
-88
-953
-1,041
Amortization at 31 December 2020
-4,187
-7,752
-11,939
Balance at 31 December 2020
60
732
792
Note 17 – Investment in associates
The company acquired 150,000 units of common membership interest in the entity Enterra Solution, LLC (Address: One Palmer Square, Suite 530,
Prince-ton, NJ 08542) in August 2019 as part of the strategy to develop a Real Estate Platform with Technology. This company is developing an
51
advanced AI (Artificial Intelligence) based system that allows organizations to capture, curate and analyse data which will help the Company to
increase efficiency in the operations and simplify the processes.
Amounts in DKK 1000s
2021
2020
Cost price at January 1
2,029
2,029
Additions
0
0
Cost price at December 31
2,029
2,029
Carrying amount at December 31
2,029
2,029
Note 18 – Current financial assets at amortised cost
The Group has the following mortgage and debt instruments classified as "Financial assets measured at amortized cost":
Amounts in DKK 1000s
2021
2020
Financial assets at amortized cost at 1 January
8,000
8,335
Repayment of the year
-329
-335
Financial assets at amortized cost at 31 December
7,671
8,000
Mortgages and debt securities classified as financial instruments in the category "Financial assets at amortized cost" expire in the following periods:
Effective interest rate p.a.
Balance in DKK 1000
Fair value in DKK 1000
Value
Expire
2021
2020
2021
2020
2021
2020
DKK
2025
7.50%
7.5%
7,671
8,000
7,671
8,000
7,671
8,000
7,671
8,000
The calculated fair value is based on estimates (Level 2 in fair value hierarchy).
Note 19 – Project Holdings
Amounts in DKK 1000s
2021
2020
Project holdings at 1 January
0
1,628
Additions and improvements
0
0
Sales of project holdings, valued at cost price
0
0
Transferred to / from investment properties
0
-1,628
0
0
Project holdings at 31 December
0
0
Carrying forward of project holdings recognized at net realizable value
0
0
52
Note 20 – Receivables
Amounts in DKK 1000s
2021
2020
Receivable Rental Income
4,318
3,056
Deposited funds in banks
15,589
10,119
Other Receivables
4,066
4,027
Receivables at 31 December
23,973
17,202
Write-downs on receivable rental income have been made after an individual assessment and have developed as follows:
Bad debt provision as of 1st of January
1,862
1,939
Net additional provisions
922
740
Recognized losses (Write off)
4
-817
2,787
1,862
In the above tenant rental income, receivables have been recognized which were overdue as at 31 December but have not been written down, with
the following amounts:
Up to 30 days
117
60
Between 30 and 90 days
1,647
978
Over 90 days
5,224
492
6,988
1,530
Trade receivables are predominantly non-interest bearing. Apart from rental income receivable, Park Street has no receivables that are overdue at
the balance sheet date or which have been assessed as impaired.
Funds deposited in banks relate to receivables selling price from properties sold, funds deposited as collateral for mortgage loans and deposits as
security for the initiated maintenance work on properties.
Note 21 – Cash and cash equivalents
Amounts in DKK 1000s
2021
2020
Petty cash
64
3
Deposits in banks for free disposal
167,756
23,148
167,820
23,151
Note 22 – Share capital
Amounts in DKK 1000s
2021
2020
Share capital as on 1st of January
67,513
67,513
Share capital increase
0
0
Share capital at 31 December
67,513
67,513
The share capital consists of 67,513,372 shares of DKK 1 (31 December 2020: 67,513,372 shares of DKK 1). No shares have special rights. The
shares are fully paid.
Park Street Asset Management Ltd. and Park Street NordAc Sarl own 100% of the nominal class B share capital and 55.89% of the nominal class
A share capital and a total of 92.14% (and a corresponding percentage of the votes) of the total nominal share capital of the Company.
53
Note 23 – Treasury shares
Number of shares
Nominal value
(Amount in DKK 1000)
Share of share capital
2021
2020
2021
2020
2021
2020
1 January
1,037,804
119,491
1,037
119
0.2%
0.2%
Additions during the year
0
918,313
0
918
1.3%
1.3%
31 December
1,037,804
1,037,804
1,037
1,037
1.5%
1.5%
In the period from 19 October 2020 to 31 December 2020, Park Street bought 918,313 shares for a total amount of DKK 10.0 million.
All own shares are owned by Park Street A/S.
As indicated on the company announcement published on 25 February 2022, Park Street A/S had initiated a share buyback program for up to DKK
250m of Class A and Class B shares, to be executed during the period from 25th February 2022 to 30th June 2022. The buyback program was
launched in accordance with the authorization granted to the board of directors as stated on the point 3.7 of the Articles of Associated and ap-
proved by the shareholders at the Annual General Meeting on 22nd April 2021. The board of directors is authorized in the period until 21st April
2026 to allow the Company to acquire Class A and Class B treasury shares corresponding to a total of 35% of the Company’s Class A and 35% of
Class B share capital.
Note 24 – Deferred Taxes
Amounts in DKK 1000s
2021
2020
Deferred tax liabilities at 1st of January
191,733
152,430
Recognized in other comprehensive income
-111
1,549
Correction from previous years
0
-51
Recognized in the income statement
40,465
37,805
Deferred tax liabilities at 31 December
232,087
191,733
Deferred tax is recognized in the balance sheet as follows:
Deferred tax (active)
0
0
Deferred tax (liability)
-232,087
-191,733
-232,087
-191,733
Deferred tax at 31 December
-232,087
-191,733
Deferred tax recognized in the balance
The calculation of deferred taxes included DKK 36.4 million relating to tax losses carried forward from Group companies. Based on budget ac-
counting and tax profits in the period 2021-2024 and deferred tax liabilities, it is estimated that all tax losses (tax base) will be realized, which is
included in the calculation of deferred tax DKK 232.1 million (taxable value) per 31 December 2021.
Deferred tax assets (value calculated at a tax rate of 22%) recognized in the balance sheet relate to profit and losses from the subsidiaries Pulse
Taastrup P/S, Pulse Glostrup P/S, Pulse N P/S, Pulse O P/S, Ballerup Hotel P/S, Svanevej P/S, Toldbuen P/S, PS Holdco I P/S, Phoam Studio
ApS, PSN ApS, Pulse Living ApS, Albuen ApS, PS I ApS, and Park Street UK.
54
Amounts in DKK 1000s
Balance 1/1
Recognized
in the income statement
Recognized in another
comprehensive income
Balance 31/12
2021
Software
807
-397
0
410
Investment and residential properties
228,140
38,058
-111
266,087
Fixtures and fittings
-523
110
0
-413
Receivables
-409
-203
0
-612
Provisions
-88
88
0
0
Credit institutions
204
-983
0
-779
Tax losses carryforward
-36,398
3,792
0
-32,606
191,733
40,465
-111
232,087
2020
Software
0
807
0
807
Investment and residential properties
199,231
27,360
1,549
228,140
Fixtures and fittings
-1,552
1,029
0
-523
Receivables
0
-409
0
-409
Provisions
-88
0
0
-88
Credit institutions
256
-52
0
204
Tax losses carryforward
-45,417
9,019
0
-36,398
152,430
37,754
1,549
191,733
Note 25 – Borrowings
Amounts in DKK 1000s
2021
2020
Borrowings, nominal
1,515,581
1,412,811
Market value adjustments
-6,110
-7,787
1,509,471
1,405,024
The liabilities are thus included in the balance sheet:
Borrowings, long-term
1,488,364
1,354,054
Borrowings, short-term
21,107
50,970
1,509,471
1,405,024
The Group's loans and credits are distributed as per 31 December as follows:
Liabilities recognized at fair value
Currency
Rate type
Expiry date
2021
2020
Convertible bonds
DKK
Interest-free
11-15 years
11,335
11,335
11,335
11,335
Market value adjustments
-6,110
-7,787
Carrying amount
5,226
3,548
55
Liabilities recognized at amortized cost
Currency
Rate type
Expiry date
2021
2020
Banks Debt
DKK
Fixed
0-1 years
0
0
Banks Debt
DKK
Fixed
2-5 years
503,615
255,260
Mortgage Debt
DKK
Variable
2-5 Years
43,402
0
Mortgage Debt
DKK
Variable
6-10 years
35,987
143,986
Mortgage Debt
DKK
Variable
11-15 years
593,362
97,372
Mortgage Debt
DKK
Variable
16-20 years
342,380
904,858
Carrying amount
1,518,747
1,401,476
The nominal amounts stated in the tables represent the amount that Park Street will repay under the loan agreements by the end of these agree-
ments.
Fixed interest loans stated in the tables indicate that a fixed rate applies until the loans' maturity date or until a new negotiation is made with the
individual bank. Variable interest rates expressed in the tables indicate that the loans have interest rates that are regularly adjusted over the term
of the loans due to fluctuations in market interest rates.
The evolution of the long and short term liabilities with credit institutions is specified follows:
Amounts in DKK 1000s
2021
2020
Non-current financial liabilities
1,354,054
1,478,691
Current financial liabilities
50,970
154,673
Liabilities associated with assets held for sale
0
0
Financial liabilities with credit institutions at 1 January
1,405,024
1,633,364
Repayment of liabilities to credit institutions
-398,859
-150,831
Proceeds from assumption of liabilities to credit institutions
503,306
0
Mortgage and bank debt converted into equity
0
0
Cancellation of debt from disposal of assets
0
0
Repayment of debt from disposal of assets
0
-77,510
Accrued financial expenses
0
0
Financial liabilities with credit institutions at 31 December
1,509,471
1,405,024
Non-current financial liabilities
1,488,364
1,354,054
Current financial liabilities
21,107
50,970
Total financial liabilities with credit institutions at 31 December
1,509,471
1,405,024
Determining the fair value of debt to credit institutions
Information on Group’s financial loan agreements, mortgage debt and convertible bonds is disclosed in note 25. Information on estimates and
judgments related to the determination of fair value of financial liabilities is disclosed in note 1. As stated in these notes mortgage and bank debt
have been recognized at amortised cost in 2021 and 2020.
Zero-coupon bonds (former Convertible bonds)
As a result of a prior bank agreement, Park Street issued in 2010 convertible bonds for a number of credit institutions for a total nominal DKK 69.0
million. The bonds are non-callable by credit institutions until 31 December 2029 and non-amortized. Conversion period for the bonds to shares has
expired, and as a result, the bonds in the annual report classified as normal loans from credit institutions and is therefore included under "Credit
institutions" in the balance sheet (zero-coupon bonds). The convertible bonds are recorded as subordinated loan capital and are subordinate to all
other unsubordinated debt. The movement of the nominal value of these zero-coupon bonds is as follows:
Amounts in DKK 1000s
2021
2020
Zero-coupon bonds at 1 January (Nominal value)
11,335
11,335
Bonds converted into class B shares (Nominal value)
0
0
Zero-coupon bonds at 31 December (Nominal Value)
11,335
11,335
56
The fair value estimated by an independent reviewer (Level 3 of the fair value hierarchy) at December 31 2021 corresponds to a rate of 31.30 (31
December 2020 – 31.30). The carrying value of zero-coupon bonds in the statement of financial position is shown in the following table:
Amounts in DKK 1000s
2021
2020
Fair value of financial liability at the date of issue
3,548
3,548
Amortization of convertible bonds at 31 December
0
0
Fair Value adjustment recognized in the Profit and Loss
1,678
0
Fair Value adjustment of convertible bonds converted in Equity
0
0
Balance at 31 December
5,226
3,548
As stated in note 25 Group's non-convertible bonds are recognized as liabilities towards credit institution and are recognized as at fair value based
on data that is non-observable in the market.
Note 26 – Provisions
Amounts in DKK 1000s
2021
2020
Provisions at 1 January
400
400
Used in the year
0
0
Reversed during the year
0
0
Accrued in the year
0
0
Provisions 31 December
400
400
Provisions relate to an obligation with the purchaser of a property concerning environmental clean-up on a land.
Note 27 – Contingent assets and liabilities
Pledges and guarantees
The nominal pledge for the bank debt and mortgage debt given by credit institutions per December 31, 2021 amounts a total of DKK 1,728 million
(31 December 2020: DKK 2,002 million), the nominal value of the loans amounts a total of DKK 1,519 million (December 31, 2020: DKK 1,405
million) in the group's investment properties and domiciles with a book value totalling DKK 2,809 million (31 December 2020: DKK 2,658 million).
The nominal pledge for the bank debt and mortgage debt given by credit institutions per December 31, 2021 amounts a total of DKK 7.7 million (31
December 2020: DKK 8.0 million), in the group's deposited mortgage deeds with a book value totalling DKK 7.7 million (31 December 2020: DKK
8.0 million).
Litigations and disputes
No additional significant litigations and disputes are acknowledged by the Group at December 31, 2021 other than the ones indicated in Note 27.
Conditional debt relief and contingencies
In connection with the sale of a property in 2014, Park Street has been subject to a surcharge for the property if the purchaser on the site before 1
January 2024 obtains more building rights than assumed at the conclusion of the transaction. The additional price amounts to DKK 2,000 for each
building rights. Additional building plans will require a change of the local plan for the area in which the property in question is located. Park Street
57
is not aware of any plans to change the local plan in question, for this reason Park Street does not consider the potential additional price as a
contingent asset.
Contingent assets
As part of the sales agreement of the property sold in 2018, Park Street and the buyer have agreed that Park Street is entitled to obtain an addi-
tional supplement of DKK 1 million if the buyer completer a development project of more than 5,000 square meters within 5 years from the date of
acquisition; the Company has decided not to recognize the contingent asset in the balance as at December 31, 2021.
Lease commitments
There are operating leases for cars rental and printers.
Amounts in DKK 1000s
2021
2020
Within 1 year from the balance sheet date
1
2
Between 1 and 5 years from the balance sheet date
5
3
After 5 years from the balance sheet date
0
0
Operating lease obligations at 31 December
6
5
Minimum lease payments recognized in the profit and loss account for the year
130
242
Note 28 – Financial risks and use of derivative instruments
Amounts in DKK 1000s
2021
2020
Mortgages and debentures
7,671
8,000
Financial assets measured at fair value through profit or loss
7,671
8,000
Receivables
23,973
17,202
Cash and equivalents
167,820
23,151
Financial assets measured at amortized cost
191,793
40,353
Credit institutions
-5,226
3,548
Financial liabilities measured at fair value through profit or loss
-5,226
3,548
Credit institutions
1,509,471
1,401,476
Deposits
38,530
32,501
Accounts payable
7,718
3,988
Other Debts
14,238
12,926
Financial liabilities measured at amortized cost
1,569,957
1,450,892
Risk management policy
The financial management of the Group is geared towards stabilization and optimization of the Group's operations, while at minimizing the Group's
financial risk exposure. It is part of the Group's policy not to conduct speculative transactions by active use of financial instruments.
The group is due to its activities exposed to various financial risks, including liquidity risk, market risks (primarily interest rate risk) and credit risk.
Liquidity risk
Park Street’s liquidity risk consists on not being able to make regular payments and not being able to provide sufficient liquidity to cover the financ-
ing costs, capital repayment obligations and capital investments. Lack of liquidity may arise from insufficient cash resources and may be adversely
affected by missed payments from Park Street tenants, increased vacancy, repayment of deposits, divestments, unexpected costs and investment
needs. Lack of liquidity may also arise from default of loans signed and in connection with refinancing when existing loan agreements expire or are
terminated.
58
Cash reserves total at December 31, 2021 DKK 167.8 million (31 December 2020: DKK 23.2 million). Park Street forecasts that current and
generated liquidity is sufficient to carry out the group's planned activities throughout 2022.
Maturity of financial liabilities is specified as follows:
Amounts in DKK 1000s
Carry forward
balance
Contractual
cash flows
0 - 1 Years
2 - 3 Years
4 - 5 Years
After 5 Years
2021
Non-derivative financial instruments
Credit institutions
1,509,471
1,654,089
43,938
89,546
578,304
942,300
Trade payables
7,718
7,718
0
0
0
0
Deposits
38,530
38,530
33,367
3,802
186
1,175
Other debts
14,238
14,238
0
0
0
0
Total
1,569,957
1,714,575
77,305
93,348
578,490
943,475
2020
Non-derivative financial instruments
Credit institutions
1,405,024
1,542,908
69,339
326,760
96,539
1,050,270
Trade payables
3,988
3,988
0
0
0
0
Deposits
32,501
32,501
25,108
3,417
3,492
484
Other debts
12,926
12,926
0
0
0
0
Total
1,454,439
1,592,323
94,448
330,177
100,031
1,050,754
Interest rate risk
Park Street is as a result of its financing activities in significant extent exposed to interest rate fluctuations. The interest rate risk is therefore an
essential element in the overall assessment of the Group's financial situation.
The interest rate risk as of December 31, 2021 primarily relate to the following:
Fluctuations in market interest rates on mortgages with variable rates (Cibor6, F2, F3, F5).
Renegotiation of the margin rate applied on the mortgage loans.
Renegotiation of fixed interest rate of bank debt associated with the extension of loans / terms. Fixed rate includes loans, which applies
a fixed rate until the loans' maturity date, to other agreed point in time or until a renegotiation is made with the individual bank.
Park Street’s major interest rate risk is the risk that the financial creditors on short notice increase terms of interest and margin rates. In this
situation, the level of interest and contribution rates depend on negotiations with the financial institutions. The Group's loan portfolio is continu-
ously monitored with a view to optimizing the group's exposure to interest rate risks. Park Street at December 31, 2021 does not have financial
instruments for interest rate hedging, and the group has limited opportunities to influence the interest rate risk in the current financial situation.
Group's nominal financial debt is specified as follows, based on the type of interest rate that is linked to individual loans:
Type of loan
Nominal (DKK million)
*Weighted interest rate (per annum)
At December 31, 2021:
Mortgage debt
Cibor6
139
2.06%
Mortgage debt
F2
46
2.48%
Mortgage debt
F3
324
0.59%
Mortgage debt
F5
505
1.06%
Bank debt etc.
Fixed
504
0.84%
Others
Interest-free
0
0.00%
1,519
1.53%
59
At December 31, 2020:
Mortgage debt
Cibor6
208
1.77%
Mortgage debt
F2
49
2.64%
Mortgage debt
F3
383
0.86%
Mortgage debt
F5
506
1.27%
Bank debt etc.
Fixed
255
2.54%
Others
Interest-free
4
0.00%
1,405
1.51%
(*) Weighted interest rate (pa) includes contributions to mortgage and expresses the average weighted interest rates in effect at the turn of the year and in the subsequent period until the
next repricing date.
The calculated weighted interest rate for all Group loans is at 31 December 2021 1.53% per annum, and is based on the latest confirmed interest
rates. The corresponding calculated weighted rate at 31 December, 2020 was 1.51% per annum. This did not have a significant impact on the P&L
for 2021.
Breakdown by maturity until the next date of interest rate adjustment distributes the Group's loans as follows (as of Dec. 31):
Amounts in DKK 1000s
2021
2020
Within six months
123
208
Between 6 and 12 months
121
0
Between 1 and 2 years
254
299
Between 2 and 5 years
1,006
894
After 5 years
5
4
1,509
1,405
The interest rate adjustment date for fixed-rate and interest-free loans is included in the above table at the time of the renegotiation of the maturity
and / or terms of the loans or where existing confirmations on a given interest rate expire for a period.
Interest rate risk from Park Street’s view can be presented in the following two divisions:
Variable market interest rates: Risks associated with fluctuations in market interest rates, i.e. on loans where interest rate adjustment
takes place at defined times based on market fluctuations. This applies to mortgage loans with variable interest rates.
Interest, etc. on all loans: Risks associated with fluctuations in interest rates on all loans. In addition to the above fluctuations in market
rates, this includes the renegotiation of contribution rates at mortgage banks and renegotiation of loan terms with bank creditors.
The hypothetical effect on the results and equity after tax as a result of 1 percentage point increase in interest rates (ex. Fair value adjustments) is
illustrated in the following table:
Amounts in DKK 1000s
2021
2020
Variable Interest rate loans:
Effect on income statement
-10.2
-14.1
Effect on equity
-10.2
-14.1
Regarding loans from credit institutions that have ongoing interest rate adjustments resulting from changes in market interest rates, the table above
illustrates that the hypothetical effect on net income and equity as a result of one percentage point increase in interest rates amounts to DKK -10.2
million per annum (2020: DKK -14.1 million). The approach used to determine the effect has been carried out by increasing the base rate by 100
basis points of all the loans with floating rate exposure. This analysis includes F2, F3, F5 loans as well. The effect on the income statement has
been calculated for a 12 month period.
60
Currency risk
The group exposure is very limited to changes in currency rates.
Credit risk
The Group's credit risk is primarily related to:
Lease receivables
Receivables from the sale of properties
Receivables form mortgages
The maximum credit risk for financial assets is reflected in the accounting values of the balance sheet, and taking into account securities re-
ceived.
Risks concerning to rental receivables are limited to Park Street’s options to deduct payments from deposits and termination of the covered leases.
Credit risk on receivables arising from the sale of properties is limited, as the transactions are always subject to payment of purchase price and
deposit of the purchase price. With mortgage deeds, the Group has a usual debtor risk, which is reduced by mortgages on properties.
In order to minimize the risk of loss of receivable rent, the tenants' ability to pay prior to entering into leases is assessed to the extent that it is
relevant. In addition, there is usually a requirement for a cash deposit, a guarantee and / or prepaid rent. However, if a tenant is unable to pay, it
may result in loss as well as reduced income due to rental allowance upon relocation, lower future rental income and any additional costs incurred
in connection with refurbishment etc.
Credit risk on receivables at December 31, 2021 is further described in note 20.
Group’s Cash and cash equivalents consists primarily of deposits in reputable banks. The group believes that there is no significant credit risk
associated with the cash. Deposits in banks are labelled at variable interest rate.
Financial liabilities with credit institutions and fair value
Group’s mortgage debt and bank debt is classified as amortized cost. Fair value of loans measured at amortised cost amount to DKK 1,405 thou-
sand. Fair value has been determined as the present value of the contractual cash flows discounted at a rate reflecting the current borrowing rate.
Due to the fact that the terms of all loans were renegotiated in 2017, fair value of all floating rate loans is considered to be equal to their carrying
amount. Based on a recent transaction, the fair value measurement is considered a level 2 measurement.
The fair value of zero-coupon debt is established based on the fair value estimated by an independent reviewer (estimated rate of 31.30 at Decem-
ber 31, 2020).
The Group's financial assets and liabilities measured at fair value are classified on the following 3 levels in the fair value hierarchy:
Level 1: Based on listed prices (non-adjusted) on active markets for identical assets or liabilities.
Level 2: Based on inputs other than listed prices that are observable for the asset or liability, either direct (as prices) or indirect
(derived from prices).
Level 3: Based on data that is not observable in the market.
Amounts in DKK 1000s
Carry forward balance
Level 1
Level 2
Level 3
2021
Mortgages and debentures
7,671
0
7,671
0
Total financial assets
7,671
0
7,671
0
Credit institutions
5,226
0
0
5,226
Total financial liabilities
5,226
0
0
5,226
61
2020
Mortgages and debentures
8,000
0
8,000
0
Total financial assets
8,000
0
8,000
0
Credit institutions
3,548
0
0
3,548
Total financial liabilities
3,548
0
0
3,548
It is the Group's policy to recognise transfers between the different levels from the time at which an event or change in circumstances entails a
change in the classifications. No transfers were made between levels 1 and 2 in the accounting period.
When calculating the fair value of the Group's liabilities in accordance with level 3 of the fair value hierarchy, a correction is made for the Group's
own credit rating, taking into account the legal status of the liabilities, and the security in the assets measured at fair value. Consequently, no direct
assumptions of discount factors, etc. are included when measuring liabilities to credit institutions in accordance with level 3 of the fair value hierar-
chy.
The table below shows the change in liabilities to credit institutions measured at fair value in the balance sheet based on valuation methods in
which significant inputs are not based on observable market data (level 3):
Amounts in DKK million
2021
2020
Carrying amount at 1st of January
3,548
3,548
Gains / losses in the income statement
1,678
0
Redemptions
0
0
Transfer to Level 3
0
0
Transfer from Level 3
0
0
Balance at 31st of December
5,226
3,548
Gain / loss in the income statement for liabilities held at 31st of December
1,678
0
Gains/losses concerning credit institutions measured at fair value are included in the item 'Adjustment to fair value, net' in the income statement.
Liabilities to credit institutions measured at fair value are transferred to/from level 3 in the fair value hierarchy depending on whether the fair value of
the loans contains a correction for the Group's own credit rating.
For financial instruments that are not measured at fair value, the book value is assessed as being a reasonable approximation of fair value. This is
based on the trade price of the underlying bonds (Level 2).
Note 29 – Non-current operating items, etc.
Amounts in DKK 1000s
2021
2020
Depreciation and amortization
-4,330
-2,891
Profit/loss on sale of operating assets
1,472
38,483
Total regulation
-2,858
35,592
Note 30 – Change in operating capital
Amounts in DKK 1000s
2021
2020
Change in receivables
-6,771
311
Change in provisions
0
0
Change in deposit
6,029
-8,865
Change in trade payables
3,730
2,676
Change in total working capital
2,988
-5,878
62
Note 31 – Related parties
Park Street Asset Management Ltd. (London, England) has controlling influence in Park Street A/S by virtue of its shareholding of 92.14% of shares
and votes in Park Street A/S. See note 5, where the remuneration of Directors and Board of Park Street A/S appears. The Company additionally
had the following transactions between Park Street and related parties that consisted of intangible assets.
Amounts in DKK 1000s
2021
2020
Other related parties
Intangible assets
0
3,249
Software expenses
2,234
0
There have been no other transactions, etc. with related parties during the period.
Note 32 – Subsequent Events
An investment property in Loftborvej has been sold for DKK 117.6 million in January 2022.
Significant leases for over 3,800 square meters have been signed since January 2022.
As indicated on the company announcement published on 25 February 2022, Park Street A/S had initiated a share buyback program for up to DKK
250m of Class A and Class B shares, to be executed during the period from 25th February 2022 to 30th June 2022. . The buyback program was
launched in accordance with the authorization granted to the board of directors as stated on the point 3.7 of the Articles of Associated and ap-
proved by the shareholders at the Annual General Meeting on 22nd April 2021. The board of directors is authorized in the period until 21st April
2026 to allow the Company to acquire Class A and Class B treasury shares corresponding to a total of 35% of the Company’s Class A and 35% of
Class B share capital.
From the balance sheet date until the date of presentation of this Annual Report no additional events have occurred other than the abovementioned
which significantly affects the assessment of the annual report.
Note 33 – Accounting policies
The annual report for the period January 1 to December 31, 2021 for Park Street A / S comprises the consolidated financial statements of Park
Street A / S and its subsidiary companies and separate financial statements of the parent company. The annual report of Park Street A / S for the
year 2021 is prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU and requirements according
to the Danish Financial Statements Act. The annual report has been approved by the Board of Directors on March 30, 2022. The annual report
shall be submitted to Park Street A / S shareholders for approval at the Annual General Meeting that will take place on April 21, 2022.
BASIS OF PREPARATION
The annual report is presented in Danish crown (DKK) rounded to the nearest DKK 1,000, which is considered to be the primary currency of the
Group's activities and the functional currency of the parent company. The annual report is prepared on a historical cost basis, except for investment
properties and certain financial obligations that are measured at fair value. Further, investment properties and domicile are measured at reas-
sessed value. The accounting policies are otherwise as described below.
CHANGES IN ACCOUNTING POLICIES
Accounting policies are unchanged from the previous year.
DESCRIPTION OF CONSOLIDATED ACCOUNTING POLICIES
63
Consolidated Financial Statements
The consolidated financial statements include Park Street A / S (parent company) and companies (subsidiaries) controlled by the parent. The
parent company is deemed to have control if it (i) has control of the relevant activities in the entity, (ii) is exposed to or are entitled to a variable
returns from the investment and (iii) may use its controlling interest to affect the variables of their return.
The consolidated financial statements are prepared as a consolidation of the parent financial statements and accounts of the individual subsidiar-
ies, which have been prepared in accordance with the Group's accounting policies, the elimination of intercompany income and expenses, share-
holdings, balances, dividends and gains and losses on transactions, taken between the consolidated companies.
Sale of subsidiaries and activities
When the Group ceases to have control any retained interest in the entity is re-measured to its fair value at the date when control is lost, with the
change in carrying amount recognised in profit or loss. The fair value is the initial carrying amount for the purposes of subsequently accounting for
the retained interest as an associate, joint venture or financial asset. In addition, any amounts previously recognised in other comprehensive in-
come in respect of that entity are accounted for as if the Group had directly disposed of the related assets or liabilities. This may mean that
amounts previously recognised in other comprehensive income are reclassified to profit or loss.
Foreign currency
Transactions in currencies other than the individual companies’ functional currencies are translated initially at the transaction date. Receivables
and payables and other monetary items in foreign currencies that have not been settled at the balance sheet date are translated at the closing rate.
Exchange differences arising between the date of transaction and payment date or the balance sheet date are recognized in the income statement
under financial income or expenses. Exchange differences arising from the translation of foreign companies' balance sheet items at the beginning
of the exchange rates and the translation of income statements from average rates to closing rates are recognized in other comprehensive income.
Exchange rate on full or partial disposal of foreign entities, where control is transferred, the foreign currency translation adjustments are recognized
in other comprehensive income, which is attributable to the unit from other comprehensive income to net income along with the gain or loss on the
disposal.
PROFIT AND LOSS STATEMENT
Revenue
Revenue includes rental income, interest on mortgage and debt instruments measured at fair value, sale amount from sold project holding, sales of
goods and sales of other services. Rental Revenue is measured at the fair value of the consideration received or receivable and is calculated
exclusive of VAT collected on behalf of third parties and discounts.
Revenue from the sale of project portfolios is recognized when delivery takes place and transfer of risk to the buyer (sales method), ie when any
construction is completed and finally transferred to the buyer, and all essential elements of the sales agreement are met. Sales of goods factored
when delivery and risk transition have taken place.
Rental income, interest on mortgage and debt instruments measured at fair value, and sales of other services is recognized in the periods to which
they relate.
Operating costs
Operating costs include costs directly related to turnover, including ongoing operating expenses of the Group investment properties, costs associ-
ated with the acquisition and construction of submitted project inventories and other operating costs.
Adjustments to fair value, net
Adjustment to fair value, net includes continuous adjustments of investment properties and related debt as well as debt instruments measured at
fair value through profit or loss.
Realized gains on sale of investment properties
Realized gains on sale of investment properties is recognized when the risks and rewards are transferred to the buyer, and the control of the prop-
erty has been transferred.
Financial income and expenses
64
Financial items include interest income and interest expenses, foreign exchange rate adjustments, amortization premiums / discounts, realized and
unrealized gains and losses on securities as well as surcharges and refunds under the tax.
Borrowing costs directly attributable to the development projects of investment or project portfolios, added to the cost of the assets until the time
when the project is completed and the property can be used for the intended purpose. If there is a loan directly to finance the development pro-
ject, calculated borrowing costs on the basis of an average interest rate of the group's loans except for loans recorded at the acquisition of specif-
ic assets. Other borrowing costs are recognized in the income statement in the periods to which they relate.
Income tax expense
Tax for the year comprises current tax and changes in deferred tax, is recognized in the income statement with the portion attributable to the
profit and directly in equity or in other comprehensive income with the portion attributable to amounts recognized directly in equity and in other
comprehensive income.
BALANCE STATEMENT
Intangible assets
Intangible assets (software) is stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the
acquisition of the items.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that
future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of
those parts that are replaced is derecognised. All other repairs and maintenance are charged to the income statement during the financial period in
which they are incurred.
Depreciation, based on a component approach, is calculated using the straight line method to allocate the cost over the asset’s estimated useful
lives. Intangible assets (software) have been depreciated under the assumption of 3 years of useful live.
Depreciation is based on revalued amount less estimated residual value after useful life (residual value).
Domicile
Domicile properties are initially measured at cost. The cost comprises the cost and expenses directly associated with the acquisition. Fair
value at the time of a previous investment property is transferred to owner-occupied properties, is considered the property new cost.
Domicile properties are then measured at a readjusted value, corresponding to the fair value at the time of re-evaluation less accumulated
depreciation. Principles and Estimates Management's estimate of the properties' fair value are shown in note 1. Revaluations recognized in
other comprehensive income and attributed to the separate reserve for revaluation of equity. Owner-occupied properties are depreciated over
the assets / components' estimated useful lives, as follows:
Buildings 50 years
Other components 15-30 years
Depreciation is based on revalued amount less estimated residual value after useful life (residual value). Land is not depreciated.
Investment properties
Investment property includes land and buildings held by Park Street to earn rental income and / or capital gains. Investment properties are meas-
ured initially at cost, which comprises the properties and cost, directly related costs. Investment properties are then measured at fair value and all
value adjustments are recognized in the income statement under "Adjustment to fair value, net".
Principles and methods for management's estimate of the properties' fair values is disclosed in note 1.
Land plots, where here is no final decision on the purpose of usage have been included in the Group’s portfolio as investment properties.
Machinery and equipment
All machinery and equipment is stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the
acquisition of the items.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that
future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of
65
those parts that are replaced is derecognised. All other repairs and maintenance are charged to the income statement during the financial period in
which they are incurred.
Depreciation, based on a component approach, is calculated using the straight line method to allocate the cost over the asset’s estimated useful
lives as stated above on Domicile.
Depreciation is based on revalued amount less estimated residual value after useful life (residual value).
Investment in associates
Investments in associates are recognised at cost price following the cost method principle. The investment is recorded at its historical cost (pur-
chase price). Once the initial transaction is recorded there is no need to adjust it, unless there is evidence that the fair market value of the invest-
ment has declined below the recorded historical cost. If so, the investment is written down to adjust to its new fair value.
Impairment of non-current assets
The carrying value of tangible assets that are not measured at fair value are assessed regularly and at least annually to determine whether there is
any indication of impairment. When such an indication is present, the asset is valued at recovery value. The recoverable amount is the higher of an
asset's fair value less costs to sell or value in use. Value in use is the present value of expected future cash flows from the asset or cash-generating
unit to which the asset belongs. If the asset does not generate cash independently of other assets, the recoverable amount of the smallest cash-
generating unit that includes the asset.
Impairment is recognized if the carrying amount of an asset or cash-generating unit exceeds the assets' useful or cash-generating unit's recovera-
ble amount does not exceed the carrying amount that the asset would have had after depreciation if the asset had not been impaired.
Current financial assets at amortised cost
Mortgages classified as financial instruments categorized as "financial assets measured at fair value through profit or loss" are recognized at
fair value on initial recognition and subsequently measured at fair value, continuously carried out a revaluation of this statement. Fair value is
determined based on observable market data (interest rates), the debtor's creditworthiness and on assessments of the loan term to maturity
and ranking in the position.
Project Holdings
Project Holdings include properties held for the purpose of sale, including ongoing or completed construction projects for own account and former
investment properties under development for sale.
Project inventories are measured at cost or net realizable value, if this is lower. Fair value at the time when a previous investment property is
transferred to project inventory is considered the property's new cost.
The cost includes the purchase price of the properties plus project and construction costs incurred, as well as borrowing costs attributable to the
project / conversion period and indirect project costs.
When it is estimated that the total cost of construction projects, including replacement / expansion projects, will exceed the total sales income,
the expected loss is recognized in the profit and loss.
Receivables
Receivables are measured at amortized cost. Impairment losses are made for losses which are deemed to have resulted in an objective indication
that an individual receivable is impaired.
Prepayments
Prepayments recognized under assets comprise incurred costs related to coming financial years. Prepayments are measured at cost.
Dividends
Dividends are recognized as a liability at the time of adoption at the general meeting. Dividends proposed for distribution is shown as a separate
component of equity until the Annual General Meeting.
66
Own shares
Acquisition and selling prices of company shares and dividends are recognized directly in equity under retained earnings.
Foreign currency reserve
Currency translation reserve includes the parent company shareholders' share of exchange rate differences arising from the translation of accounts
for companies with a different functional currency than Danish crown. The reserve is dissolved by the disposal of foreign entities.
Revaluation reserve
Reserve for revaluation includes the accumulated revaluation of domicile. The reserve is reduced by transfer to the profit for the year, as deprecia-
tion and write-downs are made on the properties written up or for sale.
Corporate tax and deferred tax
Current tax liabilities and current tax receivables are recognized in the balance sheet as calculated tax on the taxable income, but adjusted for tax
on prior years' taxable income and taxes paid on account.
Deferred tax is measured using the balance sheet liability method on temporary differences between accounting and tax values of assets and
liabilities, excluding deferred taxes on temporary differences arising on initial recognition of goodwill or the initial recognition of a transaction that is
not a business combinations, and where the temporary difference found at the time of initial recognition affects neither the accounting profit nor
taxable income.
Deferred tax assets including the tax value of tax loss carryforwards, are recognized under non-current assets at the value at which they are
expected to be used either by elimination in tax on future earnings or against deferred tax liabilities. Deferred tax assets are reviewed annually
and recognized only to the extent that it is probable that they will be utilized.
Deferred tax is measured based on the tax rates and at the balance sheet date will be applicable in the respective countries when the deferred
tax is expected to crystallize as current tax. Change in deferred tax due to changes in tax rates is recognized in the income statement.
Provisions
Provisions are recognized when, as a result of an event occurring before or at the balance sheet date has a legal or actual obligation and it is
probable that a payment will be needed to settle the obligation.
The item includes provision for dealing with specific uncertainties on completed projects. Provisions are measured on a best estimate of the amount
required to settle the obligation. Provisions with an expected maturity of one year and above are classified as non-current liabilities.
Liabilities
Financial liabilities are initially measured at fair value and subsequently measured as described below. Financial liablities are derecognised when
they expiry, are cancelled or are converted into equity. A substantial modification of the terms of a financial liability is treated as a settlement of the
original liability and recognition of a new liability. A change in the present value of the contractual cash flows with at least 10%, measured on the
basis of the original effective interest rate, is treated as a substantial modification.
Financial liabilities attributable to investment properties are measured at amortised cost. Prior to the signficiant modification of the liabilities attribut-
able to investment property, they were measured at fair value through profit or loss. Adjustments to financial liabilities attributable to investment
properties were recognized in the income statement under "Adjustment at fair value, net".
Other liabilities, including non-current liabilities, debt to suppliers and other debt, are measured at amortized cost.
When a financial liability without equity conversion features is converted into equity, the liability is considered settled at the fair value of the shares
issued. A gain or loss is reocgnised in financial items.
Assets held for sale
Assets held for sale include non-current assets that are for sale. Liabilities relating to assets held for sale are liabilities directly related to those
assets that will be transferred during the transaction. Assets are classified as "held for sale" when their carrying amount will primarily be recouped
through a sale within 12 months according to a formal plan rather than through continued use and provided that the sale at the balance sheet date
67
is considered to be highly probable. When the properties are expected to be recovered from the sale of subsidiaries that own the properties, all the
subsidiaries' assets and liabilities are reclassified.
Assets are not depreciated from the time they are classified as "held for sale". Assets held for sale are measured at the lower of the carrying
amount at the time of the "sale-for-sale" or fair value less cost of sale. However, investment properties held for sale are measured according to the
Group's usual accounting policies for investment properties, ie. at fair value without deduction of selling costs.
CASH FLOW STATEMENT
The cash flow statement is presented according to the indirect method and shows cash flows divided by operating, investing and financing activities
for the year, the year's shift in cash and cash equivalents at the beginning and end of the year.
The liquidity effect on the sale of companies is shown separately under cash flow from investing activities. The cash flow statement recognizes the
cash flows of sold companies until the date of sale.
Cash flows from operating activities are calculated as operating profit adjusted for non-cash operating items, changes in working capital, received
and paid financial income and expenses and paid corporation tax.
Cash flows from investing activities include payments in connection with sales of companies and activities, purchase and sale of financial assets as
well as purchase, development, improvement and sales, etc. of intangible and tangible assets, including investment properties.
Cash flows from financing activities include changes in the parent company's share capital and associated costs as well as admission and repay-
ment of loans, repayment of interest-bearing debt, purchase and sale of own shares and payment of dividends.
Cash and cash equivalents comprise cash with insignificant price risk.
68
Park Street | Park Street A/S Financial Statements
69
2021
PARK STREET A/S
FINANCIAL STATEMENTS
Park Street | Park Street A/S Financial Statements
70
Income statement
Note
Amounts in DKK 1000s
2021
2020
2
Net sales
140,258
162,729
3
Operating expenses
-35,581
-43,828
Gross profit
104,678
118,901
4
Employee benefit expenses
-16,396
-16,032
5
Other external expenses
-11,264
-6,371
6
Depreciation, amortisation and impairment
-3,938
-3,442
Operating profit (EBIT)
73,079
93,056
8
Financial income subsidiaries
11,777
7,227
7
Financial expenses
-20,931
-22,405
Earnings before value adjustments (EBVAT)
63,926
77,878
8
Income / Loss from subsidiaries
54,289
-26,237
9
Adjustment to fair value, net
67,539
97,857
Gains realised on the sale of investment properties
1,472
38,483
Profit before tax
187,225
187,981
10
Tax on profit for the period
-41,767
-42,660
Profit for the period
145,459
145,321
Distributed as follows
Parent's shareholders
145,459
145,321
Profit for the period
145,459
145,321
Park Street | Park Street A/S Financial Statements
71
Statement of comprehensive income
Note
Amounts in DKK 1000s
2021
2020
Profit for the period
145,459
145,321
Other comprehensive income:
Items that cannot be reclassified to the income statement:
Fair value adjustment of domicile properties
0
7,041
Tax on fair value adjustment of domicile properties
0
-1,549
Other comprehensive income after tax
0
5,492
Comprehensive income for the period
145,459
150,813
Distributed as follows
Parent's shareholders
145,459
150,813
Comprehensive income for the period
145,459
150,813
Park Street | Park Street A/S Financial Statements
72
Statement of financial position
Note
Amounts in DKK 1000s
2021
2020
ASSETS
Non-current assets
Intangible assets
Software
1,865
3,671
1,865
3,671
Property, plant and equipment
Domiciles
0
196,298
12
Investment properties
1,596,596
2,131,476
13
Machinery and equipment
49
744
1,596,645
2,328,517
Financial assets
8
Investment in subsidiaries
452,291
87,668
Investment in associates
2,029
2,029
Deferred tax assets
0
0
Deposits
161
187
454,481
89,885
Total non-current assets
2,052,991
2,422,074
Current assets
14
Current financial assets at amortised cost
165,554
165,883
15
Receivables
36,038
18,710
Income tax receivable
4,986
4,358
Prepaid expenses and accrued income
2,029
1,058
Cash and cash equivalents
152,652
13,321
Total current assets
361,259
203,330
Total assets
2,414,250
2,625,404
Park Street | Park Street A/S Financial Statements
73
Statement of financial position
Note
Amounts in DKK 1000s
2021
2020
LIABILITIES
Equity
Share capital
67,513
67,513
Revaluation reserve
0
55,106
Share Premium
289,260
289,260
Accumulated profit
860,265
660,067
Total equity
1,217,038
1,071,946
Liabilities
Non-current liabilities
16
Deferred tax
232,087
191,733
17
Borrowings
894,301
1,259,880
Deposits
4,413
6,936
1,130,801
1,458,548
Current liabilities
Provisions for liabilities
400
400
17
Current borrowings
20,347
50,970
Trade and other payables
11,860
5,175
Income tax payable
1,242
4,524
Deposits
25,108
24,166
Other liabilities
7,454
9,674
66,411
94,910
Total liabilities
1,197,212
1,553,459
Total equity and liabilities
2,414,250
2,625,404
Park Street | Park Street A/S Financial Statements
74
Statement of equity
Amounts in DKK 1000s
Share capital
Revaluation
reserve
Accumulated
profit
Share
Premium
Equity
Total
Statement of equity for 2021:
Equity as at 1 January 2021
67,513
55,107
660,066
289,260
1,071,946
Comprehensive income for the period
Profit for the period
0
0
145,459
0
145,459
Fair value adjustment of domicile
0
0
0
0
0
Tax on other comprehensive income
0
0
0
0
0
Other comprehensive income during the financial year
0
0
0
0
0
Comprehensive income for the period
0
0
145,459
0
145,459
Transactions with owners
Repurchase own shares
0
0
25
0
25
Transfer of domicile properties to subsidiaries
0
-55,107
54,715
0
-392
Cash injection by existing shareholders
0
0
0
0
0
Liabilities wih financial institutions converted into Equity
0
0
0
0
0
Total transactions with owners
0
-55,107
54,740
0
-367
Other adjustments
Depreciation of revalued value of domiciles
0
0
0
0
0
Total other adjustments
0
0
0
0
0
Equity as at 31 December 2021
67,513
0
860,265
289,260
1,217,038
Statement of equity for 2020:
Equity as at 1 January 2020
67,513
51,177
523,183
289,260
931,133
Comprehensive income for the period
Profit for the period
0
0
145,321
0
145,321
Fair value adjustment of domicile
0
7,041
0
0
7,041
Tax on other comprehensive income
0
-1,549
0
0
-1,549
Other comprehensive income during the financial year
0
5,492
0
0
5,492
Comprehensive income for the period
0
5,492
145,321
0
150,813
Transactions with owners
Repurchase own shares
0
0
-10,000
0
-10,000
Cash injection by existing shareholders
0
0
0
0
0
Liabilities wih financial institutions converted into Equity
0
0
0
0
0
Total transactions with owners
0
0
-10,000
0
-10,000
Other adjustments
Depreciation of revalued value of domiciles
0
-1,563
1,563
0
0
Total other adjustments
0
-1,563
1,563
0
0
Equity as at 31 December 2020
67,513
55,106
660,066
289,260
1,071,946
Park Street | Park Street A/S Financial Statements
75
Statement of cash flows
Note
Amounts in DKK 1000s
2021
2020
Operating profit (EBIT)
73,079
93,056
Adjustment for illiquid operating items, etc.
3,938
3,442
Change in project holdings, net
0
0
Change in operating capital
-7,217
-4,670
Cash flows concerning primary operations
69,801
91,828
Financial expenses paid
-20,931
-22,405
Paid Corporate Tax
-5,275
-4,358
Total cash flow from operating activities
43,594
65,064
Cash flow from investing activities
Improvements to investment properties
-17,689
-2,239
Sales of investment properties
8,026
192,805
Purchase of intangible assets
0
-3,249
Purchases of other property, plant and equipment
0
-14,645
Share capital increase (cash injection)
-25
0
Intercompany Loans
0
-142,257
Total cash flow from investing activities
-9,688
30,415
Cash flow from financing activities
Repurchase Own Shares
0
-10,000
Proceeds from assumption of liabilities to credit institutions
503,306
0
Repayment of liabilities to credit institutions
-397,881
-47,714
Repayment of debt from disposal of assets
0
-77,510
Total cash flow from financing activities
105,425
-135,224
Total cash flow for the period
139,331
-39,745
Liquid assets as at 1 January
13,321
53,066
Liquid assets at the end of the period
152,652
13,321
Liquid assets at the end of the period
Cash and short term deposit
152,652
13,321
Liquid assets at the end of the period
152,652
13,321
Park Street | Notes to Park Street A/S Financial Statements
76
Summary
Note 1
Accounting policies, accounting estimates and risks, etc.
Note 2
Net sales
Note 3
Operating expenses
Note 4
Employee benefits expenses
Note 5
Auditor’s fees
Note 6
Depreciation, amortisation and impairment
Note 7
Financial Expenses
Note 8
Investment in subsidiaries
Note 9
Adjustment to fair value, net
Note 10
Tax on profit for the year and other comprehensive income
Note 11
Domiciles
Note 12
Investment properties
Note 13
Machinery and equipment
Note 14
Current financial assets at amortised cost
Note 15
Receivables
Note 16
Deferred taxes
Note 17
Borrowings
Note 18
Contingent assets and liabilities
Note 19
Financial risks and the use of derivative financial instruments
Note 20
Change in operating capital
Note 21
Related parties
Note 22
Accounting policies
Park Street | Notes to Park Street A/S Financial Statements
77
Notes
Note 1 - Accounting policies, accounting estimates and risks, etc.
The accounting assumptions, assessments and estimates made in the preparation of the parent company accounts are the same as described in
note 1 of the consolidated financial statements, to which reference is made.
See note 8 regarding the recognition and measurement of investments, receivables from subsidiaries and provisions relating to subsidiaries in the
Parent Company's financial statements.
Note 2 - Net sales
Amounts in DKK 1000s
2021
2020
Rental income
111,926
119,591
Sales of other services
27,437
42,550
Total sales of services
139,364
162,141
Sales totals, project holdings
0
Interest income, mortgages and instruments of debt
895
587
140,258
162,729
Note 3 - Operating expenses
Amounts in DKK 1000s
2021
2020
Operating expenses, investment properties
31,528
-39,400
Operating expenses, other services
4,053
4,428
35,581
43,828
Note 4 – Employee benefits expenses
Amounts in DKK 1000s
2021
2020
Salary
15,190
14,875
Contribution-based pensions (*)
819
835
Other social security costs
58
60
Other staff costs
327
261
16,396
16,032
Average number of employees
(*) Park Street A/S has only defined contribution plans. For defined contribution plans, the employer undertakes to pay a defined contribution to a
pension fund, but has no risk with regard to future developments in interest rates, inflation, mortality, disability, etc. as regards the amount to be
paid to the employee.
Remuneration of the CEO and the Board of Directors is described in Note 5 of the consolidated accounts.
Park Street | Notes to Park Street A/S Financial Statements
78
Note 5 – Auditor’s fees
The auditor appointed in 2021 and 2020 is PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab. Their fees can be specified as
follows:
Amounts in DKK 1000s
2021
2020
Statutory audit
420
373
Other assurance services
40
0
Tax and VAT advice
192
177
Other services
155
20
807
570
Fees for non-audit services delivered by PricewaterhouseCoopers, Statsautoriseret Revisionspartnerselskab, include general accounting and tax
advisory services.
Note 6 – Depreciation, amortisation and impairment
Amounts in DKK 1000s
2021
2020
Depreciation, software
1,807
1,361
Depreciation, domicile properties
1,497
1,563
Depreciation, inventory and fixed assets
634
518
3,938
3,442
Note 7 – Financial Expenses
Amounts in DKK 1000s
2021
2020
Interest expenses, liabilities to credit institutions measured at amortized cost
19,142
21,256
Interest expenses, group companies
0
9
Other interest costs and fees
521
264
Borrowing costs
1,268
875
20,931
22,405
Park Street | Notes to Park Street A/S Financial Statements
79
Note 8 – Investment in subsidiaries
See accounting policies on note 33 of the Consolidated Financial Statements.
Receivables considered to be part of the overall investment in the subsidiary are written down by any remaining negative equity value.
Amounts in DKK 1000s
2021
2020
Cost price at January 1
92,377
92,227
Additions
311,767
150
Cost price at December 31
404,144
92,377
Value adjustments at 1 January
-4,590
21,869
Share of profit/loss for the year after tax
54,289
-26,459
Value adjustments at December 31
49,700
-4,590
Carrying amount at January 1
87,668
113,920
Investments with negative equity offset against trade receivables
-1,553
-119
Carrying amount at December 31
452,291
87,668
List of subsidiaries:
Subsidiaries
Registered Address
Equity
PSN ApS
Svanevej 12, 4th Floor, 2400 Copenhagen NV
100%
Pulse Glostrup P/S
Svanevej 12, 4th Floor, 2400 Copenhagen NV
100%
Pulse Taastrup P/S
Svanevej 12, 4th Floor, 2400 Copenhagen NV
100%
Phoam Studio ApS
Svanevej 12, 4th Floor, 2400 Copenhagen NV
100%
Pulse Living ApS
Svanevej 12, 4th Floor, 2400 Copenhagen NV
100%
Albuen ApS
Svanevej 12, 4th Floor, 2400 Copenhagen NV
100%
PSI ApS
Svanevej 12, 4th Floor, 2400 Copenhagen NV
100%
PSI Hold Co P/S
Svanevej 12, 4th Floor, 2400 Copenhagen NV
100%
Pulse N P/S
Svanevej 12, 4th Floor, 2400 Copenhagen NV
100%
Pulse O P/S
Svanevej 12, 4th Floor, 2400 Copenhagen NV
100%
Ballerup Hotel P/S
Svanevej 12, 4th Floor, 2400 Copenhagen NV
100%
Toldbuen P/S
Svanevej 12, 4th Floor, 2400 Copenhagen NV
100%
Svanevej P/S
Svanevej 12, 4th Floor, 2400 Copenhagen NV
100%
Park Street Nordicom UK Ltd
85, Great Portland Street, London, W1W 7LT, England
100%
Note 9 – Adjustments to fair value, net
Amounts in DKK 1000s
2021
2020
Fair value adjustment, investment properties
67,539
97,857
67,539
97,857
Park Street | Notes to Park Street A/S Financial Statements
80
Note 10 – Tax on profit for the year and other comprehensive income
Amounts in DKK 1000s
2021
2020
Annual tax can be divided as follows:
Current tax on profit of the year
1,242
4,524
Current tax, previous years
59
382
Changes in deferred taxes
38,938
37,805
Changes in deferred taxes previous years
1,527
-51
41,766
42,660
Tax on profit for the year can be explained as follows:
Estimated tax at a tax rate of 22%
41,190
41,356
Non-deductible costs
44
586
Adjustment of deferred tax assets and liabilities
533
718
41,766
42,660
Effective tax rate
22.31%
22.69%
Amounts in DKK 1000s
2021
2020
Tax on other comprehensive income:
Tax on fair value adjustment of domicile properties
111
-1,549
111
-1,549
Note 11 – Domiciles
Amounts in DKK 1000s
2021
2020
Cost per 1st of January
208,689
201,648
Revaluation of value
0
7,041
Transfer to/from subsidiaries
-194,801
0
Cost / Revaluated Value at 31 December
13,888
208,689
Depreciation and amortization per. 1st of January
-12,391
-10,828
Depreciation
-1,497
-1,563
Depreciation and amortization at 31 December
-13,888
-12,391
Balance at 31 December
0
196,298
Domicile properties consist of a hotel in Ballerup and Park Street’s headquarters in Copenhagen.
As the property is presented as a domicile, depreciation is required in accordance with IAS 16. Assets are revaluated equal to fair value at the date
of revaluation less accumulated depreciation and subsequent impairment losses. There have been revaluations both as of December 31, 2021 and
December 31, 2020.
Domicile properties are pledged as security for loans, mortgage loans and other credit institutions as stated in Note 29. Information on fair value
hierarchy of Domicile is as follows:
Park Street | Notes to Park Street A/S Financial Statements
81
Amounts in DKK 1000s
Level 1
Level 2
Level 3
Total
At 31 December 2021:
Domicile property
0
0
0
0
0
0
0
0
At 31 December 2020:
Domicile property
0
0
196,298
196,298
0
0
196,298
196,298
Classification of domicile properties in level 3 means that determining the fair value of domicile properties mainly based on data that are not ob-
servable in the market.
During 2021 and 2020 been no transfers between levels of the fair value hierarchy.
The fair value of domicile properties is based on estimates. Refer to note 1 for additional details. No domiciles have been acquired in 2021 and
2020.
If Park Street domiciles were measured at the historical cost less accumulated depreciation, the book value would have been the following:
Amounts in DKK 1000s
2021
2020
Domicile properties
116,131
117,628
116,131
117,628
Note 12 – Investment properties
As of 31 December 2021 there are no ongoing sales processes regarding investment properties.
Amounts in DKK 1000s
2021
2020
Balance at 1 of January
2,131,476
2,168,799
Transfer to / from a subsidiary
-620,913
0
Transfer to / from project holdings
0
1,628
Costs incurred for improvements
17,689
2,140
Adjustment to fair value, net
76,553
97,857
Acquisition of properties
0
14,645
Depreciation of fixed assets
-129
730
Sale of investment properties
-8,080
-154,322
Balance at 31 December
1,596,596
2,131,476
Fair value hierarchy for investment:
Amounts in DKK 1000s
Level 1
Level 2
Level 3
Total
At 31 December 2021:
Investment properties
0
0
1,596,596
1,596,596
0
0
1,596,596
1,596,596
Park Street | Notes to Park Street A/S Financial Statements
82
At 31 December 2020:
Investment properties
0
0
2,131,476
2,131,476
0
0
2,131,476
2,131,476
Classification of investment properties in level 3 means that determining the fair value of investment properties is mainly based on data that is not
observable in the market.
During 2021 and 2020 there has been no transfers between levels of the fair value hierarchy.
The fair value of investment properties is based on estimates. Refer to note 15 in the consolidated financial statements for additional details.
The net income of the investment portfolio is as follows:
Amounts in DKK 1000s
2021
2020
Rental income from investment properties
119,609
114,531
Operating expenses, investment properties
-34,679
-40,564
Net income from investment properties
84,930
73,967
The Group has entered into operating leases (leases) to tenants of its investment properties. The leases duration is up to 15 years. The contract
minimum payments under existing leases are distributed as follows:
Amounts in DKK 1000s
2021
2020
Remaining termination within 1 year from the balance sheet date
26,972
75,578
Remaining termination between 1 and 5 years from the balance sheet date
70,238
113,391
Remaining termination after 5 years from the balance sheet date
57,607
52,362
154,817
241,331
Note 13 – Machinery and equipment
Amounts in DKK 1000s
IT Equipment
Appliances
Total Machinery and
Equipment
Cost at 1 of January 2021
4,150
8,424
12,574
Additions during the year
0
0
0
Disposals during the year
0
0
0
Cost at 31 December 2021
4,150
8,424
12,574
Amortization at 1 January 2021
-4,115
-7,715
-11,830
Amortization during the year
-16
-680
-696
Amortization at 31 December 2021
-4,131
-8,395
-12,526
Balance at 31 December 2021
19
29
48
Cost at 1 of January 2020
4,140
8,335
12,475
Additions during the year
10
89
99
Disposals during the year
Cost at 31 December 2020
4,150
8,424
12,574
Park Street | Notes to Park Street A/S Financial Statements
83
Amortization at 1 January 2020
-4,099
-6,799
-10,898
Amortization during the year
-16
-916
-932
Amortization at 31 December 2020
-4,115
-7,715
-11,830
Balance at 31 December 2020
35
709
744
Note 14 – Current financial assets at amortised cost
Park Street has the following mortgage and debt instruments classified as "Financial assets measured at amortized cost":
Amounts in DKK 1000s
2021
2020
Financial assets at amortized cost at 1 January
165,883
23,961
Repayment of the year
-329
-335
Additions - Intercompany loans
0
142,257
Financial assets at amortized cost at 31 December
165,554
165,883
Mortgages and debt securities classified as financial instruments in the category "Financial assets recognized at amortized cost" expire in the
following periods:
Effective interest rate p.a.
Balance in DKK 1000
Fair value in DKK 1000
Value
Expire
2021
2020
2021
2020
2021
2020
DKK
2025
7.50%
7.50%
7,671
8,000
7,671
8,000
DKK
2022
7.50%
7.50%
1,000
1,000
1,000
1,000
DKK
2022
7.50%
7.50%
1,500
1,500
1,500
1,500
DKK
2022
7.50%
7.50%
2,200
2,200
2,200
2,200
DKK
2022
7.50%
7.50%
13,100
13,100
13,100
13,100
DKK
2022
7.50%
7.50%
140,083
140,083
140,083
140,083
165,883
165,883
165,883
165,883
Park Street A/S has provided a credit line facility to the subsidiary Pulse Taastrup P/S with an aggregate principal amount of nominal DKK 175
million (153.2 million utilized at 31.12.21) with an annual interest rate of 7.5% payable at the maturity date of the loan. Additionally, Park Street A/S
has provided a credit line facility to the subsidiary Phoam Studio ApS with an aggregate principal amount of nominal DKK 5 million (4.7 million
utilized at 31.12.21) with an annual interest rate of 7.5% payable at the maturity date of the loan.
The calculated fair value is based on estimates (Level 3 in fair value hierarchy).
Note 15 – Receivables
Amounts in DKK 1000s
2021
2020
Receivable Rental Income
3,963
2,894
Receivables from sale of properties
0
0
Deposited funds in banks
12,209
6,739
Other Receivables
409
327
Receivables from related parties
19,456
8,751
Receivables at 31 December
36,038
18,710
Write-downs on receivable rental income have been made after an individual assessment and have developed as follows:
Park Street | Notes to Park Street A/S Financial Statements
84
Bad debt provision as of 1st of January
1,712
1,488
Additional provisions
736
555
Recognized losses (Write off)
-4
-331
2,443
1,712
In the above tenant rental income, receivables have been recognized which were overdue as at 31 December but have not been written down, with
the following amounts:
Up to 30 days
0
88
Between 30 and 90 days
0
1,035
Over 90 days
1,300
379
1,300
1,502
Trade receivables are predominantly non-interest bearing. Apart from rental income receivable, Park Street has no receivables that are overdue at
the balance sheet date or which have been assessed as impaired.
Funds deposited in banks relate to receivables selling price from properties sold, funds deposited as collateral for mortgage loans and deposits as
security for the initiated maintenance work on properties.
Note 16 – Deferred Taxes
Amounts in DKK 1000s
2021
2020
Deferred tax at 1st of January
191,733
152,430
Recognized in other comprehensive income
-111
1,549
Correction from previous years
1,654
-51
Recognized in the income statement
38,811
37,805
Deferred tax at 31 December
232,087
191,733
Deferred tax is recognized in the balance sheet as follows:
Deferred tax (liability)
-232,087
-191,733
-232,087
-191,733
Deferred tax at 31 December
-232,087
-191,733
Deferred tax recognized in the balance
The calculation of deferred taxes included DKK 148 million relating to tax losses carried forward from Group companies. Based on budget ac-
counting and tax profits in the period 2021-2024 and deferred tax liabilities, it is estimated that all tax losses (tax base) will be realized, which is
included in the calculation of deferred tax DKK 232.1 million (taxable value) per 31 December 2021.
Amounts in DKK 1000s
Balance 1/1
Recognized
in the income state-
ment
Recognized in another
comprehensive income
Balance 31/12
2021
Software
807
-397
0
410
Investment and residential properties
228,140
38,058
-111
266,087
Fixtures and fittings
-523
110
0
-413
Project Holdings
0
0
0
0
Receivables
-409
-203
0
-612
Provisions
-88
88
0
0
Credit institutions
204
-983
0
-779
Tax losses carryforward
-36,398
3,792
0
-32,606
Park Street | Notes to Park Street A/S Financial Statements
85
191,733
40,465
-111
232,087
Amounts in DKK 1000s
Balance 1/1
Recognized
in the income state-
ment
Recognized in another
comprehensive income
Balance 31/12
2020
Software
0
807
0
807
Investment and residential properties
199,231
27,360
1,549
228,140
Fixtures and fittings
-1,552
1,029
0
-523
Project Holdings
0
0
0
0
Receivables
0
-409
0
-409
Provisions
-88
0
0
-88
Credit institutions
256
-52
0
204
Tax losses carryforward
-45,417
9,019
0
-36,398
152,430
37,754
1,549
191,733
There are no deferred tax assets not recognized in the balance.
Note 17 – Borrowings
Amounts in DKK 1000s
2021
2020
Credit institutions, nominal
920,757
1,318,637
Market value adjustments
-6,110
-7,787
914,647
1,310,850
The liabilities are thus included in the balance sheet:
Credit institutions, long-term
894,301
1,259,880
Credit institutions, short-term
20,347
50,970
914,647
1,310,850
The Group's loans and credits are distributed as per 31 December as follows:
Liabilities recognized at fair value
Currency
Rate type
Expiry date
2021
2020
Convertible bonds
DKK
Interest-free
11-15 years
11,335
11,335
11,335
11,335
Market value adjustments
-6,110
-7,787
Carrying amount
5,225
3,548
Liabilities recognized at amortized cost
Currency
Rate type
Expiry date
2021
2020
Banks Debt
DKK
Fixed
2-5 years
4,985
255,260
Mortgage Debt
DKK
Variable
2-5 years
43,402
0
Mortgage Debt
DKK
Variable
6-10 years
35,987
143,986
Mortgage Debt
DKK
Variable
11-15 years
593,362
97,372
Mortgage Debt
DKK
Variable
16-20 years
231,685
810,684
Park Street | Notes to Park Street A/S Financial Statements
86
Carrying amount
909,420
1,307,302
The nominal amounts stated in the tables represent the amount that Park Street will repay under the loan agreements by the end of these
agreements.
Fixed interest loans stated in the tables indicate that a fixed rate applies until the loans' maturity date or until a new negotiation is made with the
individual bank. Variable interest rates expressed in the tables indicate that the loans have interest rates that are regularly adjusted over the term
of the loans due to fluctuations in market interest rates.
The evolution of the long and short term liabilities with credit institutions is specified follows:
Amounts in DKK 1000s
2021
2020
Non-current financial liabilities
1,259,880
1,383,922
Current financial liabilities
50,970
52,152
Financial liabilities with credit institutions at 1 January
1,310,850
1,436,074
Repayment of liabilities to credit institutions
-397,881
-47,714
Repayment of debt from disposal of assets
0
-77,510
Fair value adjustment of Debt
1,678
0
Financial liabilities with credit institutions at 31 December
914,647
1,310,850
Non-current financial liabilities
894,301
1,259,880
Current financial liabilities
20,347
50,970
Total financial liabilities with credit institutions at 31 December
914,647
1,310,850
Determining the fair value of debt to credit institutions
Information on Group’s financial loan agreements, mortgage debt and convertible bonds is disclosed in note 27 of the consolidated financial state-
ments. Information on estimates and judgments related to the determination of fair value of financial liabilities is disclosed in note 1 of the Consoli-
dated Financial Statements. As stated in these notes mortgage and bank debt have been recognized at amortised cost in 2021. No reversal of fair
value adjustments in 2021 and 2020.
Zero-coupon bonds (former Convertible bonds)
See note 25 in the Consolidated Financial Statements.
Note 18 – Contingent assets and liabilities
Pledges and guarantees
The nominal pledge for the bank debt and mortgage debt given by credit institutions per December 31, 2021 amount a total of DKK 909 million (31
December 2020: DKK 1,778 million), the nominal value of the loans amounts a total of DKK 909 million (December 31, 2020: DKK 1,307 million) in
the group's investment properties and domiciles with a book value totalling DKK 1,597 million (31 December 2020: DKK 2,327 million).
The nominal pledge for the bank debt and mortgage debt given by credit institutions per December 31, 2021 amount a total of DKK 7.7 million (31
December 2020: DKK 8.0 million), in the group's deposited mortgage deeds with a book value totalling DKK 7.7 million (31 December 2020: DKK
8.0 million).
Litigations and disputes
In connection with the sale of a property (building rights) in 2016, it was agreed that if, in connection with the buyer's settlement there is a proof
that the property is contaminated, Park Street must reimburse the costs that may be needed to get property released for the buyer's purpose. Park
Street consider the agreement as a contingent liability as stated in Note 26 of the consolidated financial statements.
No additional significant litigations and disputes are acknowledged by the Group at December 31, 2021 other than the ones indicated in Note 26 of
the consolidated financial statements.
Park Street | Notes to Park Street A/S Financial Statements
87
Conditional debt relief and contingencies
In connection with the sale of a property in 2014, Park Street has been subject to a surcharge for the property if the purchaser on the site before 1
January 2024 obtains more building rights than assumed at the conclusion of the transaction. The additional price amounts to DKK 2,000 for each
building rights. Additional building plans will require a change of the local plan for the area in which the property in question is located. Park Street
is not aware of any plans to change the local plan in question, for this reason Park Street does not consider the potential additional price as a
contingent asset.
Contingent assets
As part of the sales agreement of the property sold in 2018, Park Street and the buyer have agreed that Park Street is entitled to obtain an addi-
tional supplement of DKK 1 million if the buyer completer a development project of more than 5,000 square meters within 5 years from the date of
acquisition; the Company has decided not to recognize the contingent asset in the balance as at December 31, 2021.
Lease commitments
There are operating leases for cars rental and printers.
Amounts in DKK 1000s
2021
2020
Within 1 year from the balance sheet date
1
2
Between 1 and 5 years from the balance sheet date
5
3
After 5 years from the balance sheet date
0
0
Operating lease obligations at 31 December
6
5
Amounts in DKK 1000s
Minimum lease payments recognized in the profit and loss account for the year
130
242
Note 19 – Financial risks and the use of derivative financial instruments
Amounts in DKK 1000s
2021
2020
Mortgages and debentures
7,671
8,000
Intercompany loan
157,883
157,548
Financial assets measured at amortized cost
165,554
165,548
Receivables
36,038
18,710
Cash and equivalents
152,652
13,321
Loan and receivables
188,690
32,031
Credit institutions
5,226
3,548
Financial liabilities measured at fair value through profit or loss
5,226
3,548
Credit institutions
909,421
1,307,301
Deposits
29,521
31,102
Accounts payable
11,860
5,175
Other Debts
7,454
9,674
Financial liabilities measured at amortized cost
958,256
1,353,253
Risk management policy
Park Street | Notes to Park Street A/S Financial Statements
88
The financial management of the Group is geared towards stabilization and optimization of the Group's operations, while at minimizing the Group's
financial risk exposure. It is part of the Group's policy not to conduct speculative transactions by active use of financial instruments.
The group is due to its activities exposed to various financial risks, including liquidity risk, market risks (primarily interest rate risk) and credit risk.
Liquidity risk
Park Street’s liquidity risk consists on not being able to make regular payments and not being able to provide sufficient liquidity to cover the financ-
ing costs, capital repayment obligations and capital investments. Lack of liquidity may arise from insufficient cash resources and may be adversely
affected by missed payments from Park Street tenants, increased vacancy, repayment of deposits, divestments, unexpected costs and investment
needs. Lack of liquidity may also arise from default of loans signed and in connection with refinancing when existing loan agreements expire or are
terminated.
Cash reserves total at December 31, 2021 DKK 152.6 million (31 December 2020: DKK 13.3 million). Park Street forecasts that current and
generated liquidity is sufficient to carry out the group's planned activities throughout 2022.
Maturity of financial liabilities is specified as follows:
Amounts in DKK 1000s
Carry forward
balance
Contractual
cash flows
0 - 1 Years
2 - 3 Years
4 - 5 Years
After 5 Years
2021
Non-derivative financial instruments
Credit institutions
914,647
998,587
31,338
62,675
62,796
841,778
Trade payables
11,860
11,860
0
0
0
0
Deposits
29,521
29,521
25,108
3,634
97
682
Other debts
7,454
7,454
7,454
0
0
0
Total
963,482
1,047,422
63,900
66,309
62,893
842,460
2020
Non-derivative financial instruments
Credit institutions
1,310,850
1,453,565
68,661
317,705
108,160
959,039
Trade payables
5,175
5,175
5,175
0
0
0
Deposits
31,102
31,102
24,166
3,063
3,389
484
Other debts
9,674
9,674
9,674
0
0
0
Total
1,356,802
1,499,517
107,677
320,768
111,549
959,523
Interest rate risk
Park Street is as a result of its financing activities in significant extent exposed to interest rate fluctuations. The interest rate risk is therefore an
essential element in the overall assessment of the Group's financial situation.
The interest rate risk as of December 31, 2021 primarily relate to the following:
Fluctuations in market interest rates on mortgages with variable rates (Cibor6, F2, F3, F5).
Renegotiation of the margin rate applied on the mortgage loans.
Renegotiation of fixed interest rate of bank debt associated with the extension of loans / terms. Fixed rate includes loans, which applies
a fixed rate until the loans' maturity date, to other agreed point in time or until a renegotiation is made with the individual bank.
Park Street’s major interest rate risk is the risk that the financial creditors on short notice increase terms of interest and margin rates. In this
situation, the level of interest and contribution rates depend on negotiations with the financial institutions. The Group's loan portfolio is continu-
ously monitored with a view to optimizing the group's exposure to interest rate risks. Park Street at December 31, 2021 does not have financial
instruments for interest rate hedging, and the group has limited opportunities to influence the interest rate risk in the current financial situation.
Park Street | Notes to Park Street A/S Financial Statements
89
Group's nominal financial debt is specified as follows, based on the type of interest rate that is linked to individual loans:
Type of loan
Nominal (DKK million)
* Weighted interest rate (per annum)
At December 31, 2021:
Mortgage debt
Cibor3
0
0.00%
Mortgage debt
Cibor6
139
2.08%
Mortgage debt
F2
46
2.54%
Mortgage debt
F3
214
0.83%
Mortgage debt
F5
505
0.84%
Bank debt etc.
Fixed
5
0.00%
Others
Interest-free
5
0.00%
914
1.11%
At December 31, 2020:
Mortgage debt
Cibor6
208
1.77%
Mortgage debt
F2
49
2.64%
Mortgage debt
F3
289
0.90%
Mortgage debt
F5
506
1.27%
Banks and other payables.
Fixed
254
2.54%
Others
Interest-free
4
0.00%
1,310
1.57%
The calculated weighted interest rate for all Park Street loans are at 31 December 2021 1.11% per annum, and is based on the latest confirmed
interest rates. The corresponding calculated weighted rate at 31 December, 2020 was 1.57% per annum.
Breakdown by maturity until the next date of interest rate adjustment distributes the Group's loans as follows (as of Dec. 31):
Amounts in DKK 1000s
2021
2020
Within six months
193
208
Between 6 and 12 months
0
0
Between 1 and 2 years
212
299
Between 2 and 5 years
505
799
After 5 years
5
4
914
1,310
The interest rate adjustment date for fixed-rate and interest-free loans is included in the above table at the time of the renegotiation of the maturity
and / or terms of the loans or where existing confirmations on a given interest rate expire for a period.
Interest rate risk from Park Street’s view can be presented in the following two divisions:
Variable market interest rates: Risks associated with fluctuations in market interest rates, ie. on loans where interest rate adjustment
takes place at defined times based on market fluctuations. This applies to mortgage loans with variable interest rates.
Interest, etc. on all loans: Risks associated with fluctuations in interest rates on all loans. In addition to the above fluctuations in market
rates, this includes the renegotiation of contribution rates at mortgage banks and renegotiation of loan terms with bank creditors.
The hypothetical effect on the results and equity after tax as a result of 1 percentage point increase in interest rates (ex. Fair value adjustments)
are illustrated in the following table:
Park Street | Notes to Park Street A/S Financial Statements
90
Amounts in DKK 1000s
2021
2020
Variable Interest rate loans:
Effect on income statement
-11.3
-13.0
Effect on equity
-11.3
-13.0
On loans from credit institutions, with ongoing interest rate adjustments resulting from changes in market interest rates, illustrates the table above
that the hypothetical effect on net income and equity as a result of one percentage point increase in interest rates amounts to DKK -11.3 million per
annum (2020: DKK -13.0 million).
Currency risk
The group exposure is very limited to changes in currency rates.
Credit risk
The Group's credit risk is primarily related to:
Lease receivables
Receivables from the sale of properties
Receivables form mortgages
The maximum credit risk for financial assets is reflected in the accounting values of the balance sheet, and taking into account securities
received.
Risks concerning to rental receivables are limited to Park Street’s options to deduct payments from deposits and termination of the covered leases.
Credit risk on receivables arising from the sale of properties is limited, as the transactions are always subject to payment of purchase price and
deposit of the purchase price. With mortgage deeds, the Group has an usual debtor risk, which is reduced by mortgages on properties.
In order to minimize the risk of loss of receivable rent, the tenants' ability to pay prior to entering into leases is assessed to the extent that it is
relevant. In addition, there is usually a requirement for a cash deposit, a guarantee and / or prepaid rent. However, if a tenant is unable to pay, it
may result in loss as well as reduced income due to rental allowance upon relocation, lower future rental income and any additional costs incurred
in connection with refurbishment etc.
Credit risk on receivables at December 31, 2021 is further described in note 20 of the consolidated financial statements.
Group’s Cash and cash equivalents consists primarily of deposits in reputable banks. The group believes that there is no significant credit risk
associated with the cash. Deposits in banks are labelled at variable interest rate.
Financial liabilities with credit institutions and fair value
Group’s mortgage debt and bank debt is classified as amortized cost. Fair value of loans measured at amortised cost amount to DKK 909,420.
Fair value has been determined as the present value of the contractual cash flows discounted at a rate reflecting the current borrowing rate. Due to
the fact that the terms of all loans were renegotiated in 2017, fair value of all floating rate loans is considered to be equal to their carrying aomunt.
Based on a recent transaction, the fair value measurement is considered a level 2 measurement.
The fair value of zero-coupon debt is established based on the fair value estimated by an independent reviewer (estimated rate of 46.09 at De-
cember 31, 2021).
The Group's financial assets and liabilities measured at fair value are classified on the following 3 levels in the fair value hierarchy:
Level 1: Based on listed prices (non-adjusted) on active markets for identical assets or liabilities.
Level 2: Based on inputs other than listed prices that are observable for the asset or liability, either direct (as prices) or indirect
(derived from prices).
Level 3: Based on data that is not observable in the market.
Park Street | Notes to Park Street A/S Financial Statements
91
Amounts in DKK 1000s
Carry forward balance
Level 1
Level 2
Level 3
2021
Mortgages and debentures
7,671
0
7,671
0
Intercompany loan
0
0
Total financial assets
7,671
0
7,671
0
Credit institutions
5,226
0
0
5,226
Total financial liabilities
5,226
0
0
5,226
2020
Mortgages and debentures
8,000
0
8,000
0
Intercompany loan
157,548
157,548
Total financial assets
165,548
0
165,548
0
Credit institutions
3,548
0
0
3,548
Total financial liabilities
3,548
0
0
3,548
It is the Group's policy to recognise transfers between the different levels from the time at which an event or change in circumstances entails a
change in the classifications. No transfers were made between levels 1 and 2 in the accounting period.
When calculating the fair value of the Group's liabilities in accordance with level 3 of the fair value hierarchy, a correction is made for the Group's
own credit rating, taking into account the legal status of the liabilities, and the security in the assets measured at fair value. Consequently, no direct
assumptions of discount factors, etc. are included when measuring liabilities to credit institutions in accordance with level 3 of the fair value hierar-
chy.
The table below shows the change in liabilities to credit institutions measured at fair value in the balance sheet based on valuation methods in
which significant inputs are not based on observable market data (level 3):
Amounts in DKK 1000s
2021
2020
Carrying amount per. 1st of January
3,548
3,548
Gains / losses in the income statement
1,678
0
Balance at 31st of December
5,226
3,548
Gain / loss in the income statement for liabilities held at 31st of December
0
Gains/losses concerning credit institutions measured at fair value are included in the item 'Adjustment to fair value, net' and in the item 'Special
items' in the income statement of the consolidated financial statements. Liabilities to credit institutions measured at fair value are transferred
to/from level 3 in the fair value hierarchy depending on whether the fair value of the loans contains a correction for the Group's own credit rating.
For financial instruments that are not measured at fair value, the book value is assessed as being a reasonable approximation of fair value.
Note 20 – Changes in other working capital
Amounts in DKK 1000s
2021
2020
Change in receivables
-17,327
-4,903
Change in deposit
1,581
-8,557
Change in trade payables and other liabilities
-6,685
2,910
Change in total working capital
-22,431
-10,550
Note 21 – Related parties
Park Street | Notes to Park Street A/S Financial Statements
92
Park Street Asset Management Ltd. (London, England) has controlling influence in Park Street A/S by virtue of its shareholding of 92.14% of
shares and votes in Park Street A/S. See note 5 in the Consolidated annual report, where the remuneration of Directors and Board of Park Street
appears. The Company has additionally had the following transactions between Park Street and related parties:
Amounts in DKK 1000s
2021
2020
Other related parties
Intangible assets
0
3,249
Software expenses
2,234
0
There have been no other transactions, etc. with related parties during the period.
Park Street | Notes to Park Street A/S Financial Statements
93
Note 22 – Accounting policies
Park Street A/S applies the same accounting policies as stated in Note 33 on the consolidated financial statements, in addition the following note
is applicable for the parent company:
Investment in subsidiaries
Investments in subsidiaries are recognised and measured in the financial statements of the parent company under the equity method. On acquisi-
tion of subsidiaries, the difference between cost of acquisition and net asset value of the entity acquired is determined at the date of acquisition
after the individual assets and liabilities having been adjusted to fair value (the acquisition method).
The item ”Income (loss) from investment in subsidiaries” in the income statement includes the proportionate share of the profit after tax of the
subsidiary. The item ”Investments in subsidiaries” in the balance sheet includes the proportionate ownership share of the net asset value of the
entities calculated under the accounting policies of the parent company with deduction or addition of unrealised intercompany profits or losses and
with addition of any remaining value of the positive differences (goodwill).
Subsidiaries with a negative net assets value are measured at DKK 0, and any receivables from these are written down by the parent company’s
share of the negative net asset value, if impaired. Any legal or constructive obligation of the parent company to cover the negative balance of the
subsidiaries is recognised as provisions. The total net revaluation of investments in subsidiaries is transferred upon distribution of profit to ” Re-
serve for net revaluation” under equity. Gains and losses on disposals or winding up of subsidiaries are calculated as the difference between the
sales value or cost of winding up and the carrying amount of the net assets at the date of acquisition including goodwill and expected loss of dis-
posal or winding up. The gains or losses are included in the income statement.
Financial Ratios
The financial ratios have been calculated as follows:
Return on property portfolio (% p.a.): Gross profit x 100 / Fair value of investment and domicile properties
Average loan rate (% p.a.): Financial items x 100 / Credit institutions Return margin on property portfolio (% p.a.):
Return on property portfolio (% p.a.) - Average loan rate
Return on equity (%): Profit for the period / Total equity
Equity ratio (%): Total equity / Total assets
Net asset value per share, end of period (DKK): Total equity / Share capital
Earnings per share (avg. Number of shares) (DKK): Profit for the period / Average number of shares
Earnings per share, end of period (DKK): Profit for the period / Number of own shares, end period
Result of continuing activities per. share (DKK): Profit for the period / Number of own shares, end period
Dividend yield (%): Dividend per share / Share price, end of period Price/net asset value, end of period:
Share price / Net asset value per share, end of period
Cash flow from operations per share (DKK): Cash flows from operations / Diluted average number of shares in circulation
Park Street | Property Overview
94
PROPERTY OVERVIEW
Park Street Group owns at 31 December 2021, 54 properties.
#
Strategy
Property Type
Address
ZIP
City
1
Spark Office
Office
26, Hejrevej
2400
København
2
30, Hejrevej
2400
København
3
18, Ørnevej
2400
København
4
3, Femøvej
4700
Næstved
5
6, Toldbuen
4700
Næstved
6
9, Omøvej
4700
Næstved
7
23, Hersegade
4000
Roskilde
8
3, Femøvej
4700
Næstved
9
2, Dannebrogsgade
5000
Odense
10
275, Svendborgvej
5260
Odense
11
1E, Vilhelmskildevej
5700
Svendborg
12
Birkemose Alle 21
6000
Kolding
13
23, Birkemose Allé
6000
Kolding
14
9, Birkemosevej
6000
Kolding
15
22, Stagehøjvej
8600
Silkeborg
16
Banegårdsvej
2600
Glostrup
17
Spark Retail
Retail
1, Lilleholm
2670
Greve
18
20, Prøvestensvej
3000
Helsingør
19
2, L. C. Worsøesvej
4300
Holbæk
20
27, Immerkær
2650
Hvidovre
21
3, Banetorvet
3450
Lillerød
22
10, Dyssegårdsvej
4700
Næstved
23
13, Nørregade
4100
Ringsted
24
27, Nørregade
4100
Ringsted
25
8, Ro's Have
4000
Roskilde
26
11, Ro's Have
4000
Roskilde
27
13, Ro's Have
4000
Roskilde
28
1, Stenbukken
9200
Aalborg
29
102, Silkeborgvej
7400
Herning
30
2A, Engdahlsvej
7400
Herning
31
19A, Albuen
6000
Kolding
32
Århusvej
8960
Randers
33
60, Åkirkebyvej
3700
Rønne
34
78, Zahrtmannsvej
3700
Rønne
35
Storage
78, Vordingborgvej
4700
Næstved
36
78, Vordingborgvej
4700
Næstved
37
7, Blegdammen
4700
Næstved
38
Pulse
Residential
29, Tåsingegade
2100
København
39
21, Nørregade
4100
Ringsted
40
31, Nørregade
4100
Ringsted
41
1, Møllergade
5700
Svendborg
42
33, Jernbanegade
6000
Kolding
43
1, Helligkorsgade
6000
Kolding
44
30, Østergade
7600
Struer
45
34A, Dæmningen
7100
Vejle
Park Street | Property Overview
95
#
Strategy
Property Type
Address
ZIP
City
46
Residential - Project
8, Hejrevej
2400
København
47
4, Kirsebærgården
3450
Lillerød
48
Skråningshusene
3070
Snekkersten
49
2, Selsmosevej
2630
Taastrup
50
Retail
12, Sjællandsgade
7100
Vejle
51
Parking
J.C.Christensens Gade
2300
København
52
Pulse Hotel
Hotel
13, Algade
4000
Roskilde
53
6, Marbækvej
2750
Ballerup
54
Sold
Retail
Loftbrovej 17, Nørresundby
9400
Aalborg
