Company : Park Street A/S
CVR: 12932502
th
Accounting period: 1 January – 31 December 2022
Chairman:
Annual Report 2022
Company:
Park Street A/S
Svanevej 12
DK-2400 København NV
CVR no.: 12 93 2 5 02
LEI no.: 213800VGJC18MR KMZC33
Registered office: Copenhagen, Denmark
Phone: +45 33 33 93 03
Internet: www.nordicom.dk / www.psnas.com
E-mail: parkstreet@parkstreet.dk
Board of Directors:
Management:
Auditor:
PriceWaterhouseCoopers Statsautoriseret Revisionspartnerselskab
Annual General Meeting:
Annual General Meeting to be held on 28th April 2023 at 16:00 at Svanevej 12, 2400 Copenhagen NV, Denmark.
Annual Report 2022
1
Contents
Directors' report 2
Directors' report 2
Subsequent events after 31 December 2022 3
Outlook and strategy for 2023 4
Financial Highlights 17
Financial Results 18
Risk Factors 21
Statutory Report CSR 23
Legal requirements for Corporate Governance 23
Statutory report on diversity in management 23
Management composition and remuneration 24
Board of Directors and Management 25
Shareholder structure 26
Group structure as of 31 December 2022 28
Statements
29
Statement by Board of Directors and Management 29
Independent auditors report 30
Consolidated Financial statements 34
Income statement 36
Statement of comprehensive income 37
Statement of financial position 38
Statement of equity 39
Statement of cash flows 40
Notes 42
Annual accounts for Park Street A/S 69
Income statement 71
Statement of comprehensive income 72
Statement of financial position as of 31 December 2022 73
Statement of equity 74
Statement of cash flows 75
Notes 77
Property Overview 92
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 2022
Park Street result analysis primarily uses the term EBVAT (Earnings before value adjustments and tax) to measure the Group’s operating results.
The Group achieved in 2022 an EBVAT (profit excluding value adjustments and tax) of DKK 42.9 million (2021:DKK 56.8 million), as compared to
expectations of DKK 50 million (published in the Park Street Interim Report Half Year 2022 results announcement in Aug 2022), primarily driven due
to a combination of reduction in number of assets from sale of properties, leading to lower income, combined with an increase in financial expenses
due to changes in interest rates. Furthermore there was an increase in new leasing adding to costs for marketing activity, and an increase in energy
costs related to vacant units.
We expect the EBVAT for 2023 to be DKK 55m in view of our expectation for new leases in pipeline and expected reduction in costs. This outlook
assumes the portfolio to remain same and could change with any significant sales or additions to properties.
The evolution of the EBVAT is influenced by the following factors:
Gross profit in 2022 is DKK 104.7 million (2021: DKK 117.4 million), equivalent to a decrease of DKK 12.7 million. The reduction in
gross profit is primarily due to a reduction in rental income (- DKK 8 million) offset by an increase in income received from the hotels in
the group (DKK 5.8 million), and an increase in Opex of DKK 7.8 million, driven in part by increased energy costs.
The Group's overheads were DKK 31.8 million in 2022 against DKK 34.7 million in 2021. The decrease of DKK 2.9 million is caused by a
savings in external advisor expenses.
Net financial items amounts to DKK -29.9 million in 2022 against DKK -25.9 million in 2021, representing a negative change of DKK 4
million driven by an increase in interest costs due to an increase in the debt in 2021 with financial institutions including development loan
for Pulse N with higher margins interest rates.
The decrease in the Net Profit for the period from DKK 145.4 million in 2021 to DKK 55 million in 2022 is due to the following effects:
Fair value adjustment in 2022 with a net of DKK 36.1 million while the fair value adjustment in 2021 had a net effect of DKK 128.9 million.
In both periods an evaluation of the domicile and investment properties have been made adjusting the yield and the estimated profit and
loss by the entire portfolio of Park Street A/S and subsidiaries.
The Group's equity as at 31 December 2022 was DKK 1,087 million, compared to DKK 1,217 million as at 31 December 2021. The decline in equity
is due to the purchase of treasury shares.
The operation of the Group's properties in 2022 included negotiations and closings of several new leases and sale of assets not core to Park Street.
This should positively impact the performance of 2023 towards reducing vacant unit costs while enhancing the top line. However there are further
lease terminations which need to be marketed. While the investment and interest rate environment has turned challenging, the demand for new
leases and market rental levels continue to see positive traction. The current vacancy rate (calculated by rental value) for the Group's investment
properties, in Retail reduced to 13.67% in 2022 (19.28% in 2021) and Office reduced to 17.46% in 2022 (24% in 2021). During the first months of
2023, there has been a positive traction with the signature of new leases.
Property acquisitions and sales
In 2022, Park Street sold the following properties and plots:
Retail building in Aarhusvej 119-121, Ulrikkasvej 1, Randers
Retail building in Femøvej 3, Næstved
Land plot in Gule område/ Havnegade 50/ Officehuset, Næstved
Retail building Aakirkebyvej 58-60, Rønne
Retail building in Zahrtmannsvej 78, Rønne
Retail building: Loftbrovej
Park Street/ Director’s report
3
Organisation
Since April of 2022 when the Annual General Meeting of the Company took place the Board of Directors of Park Street consists of Pradeep Pattem,
Ohene Aku Kwapong, Anita Nassar and Claes Peter Rading.
The number of employees of Park Street were 35 by the end of 2022, against 26 at the start of the year.
Subsequent events after 31 December 2022
In January 2023, we have hedged the interest rate exposure on the floating rate non-mortgage debt through purchase of interest rate caps. These
caps are now in the positive value.
Mortgage loans due for interest rate fixing in April 2023 have now been fixed as F3 loans.
From the balance sheet date until the date of presentation of this Annual Report no additional events have occurred other than the above mentioned
which significantly affect the assessment of the annual report.
Park Street/ Director’s report
4
Park Street
Park Street A/S operates as a real estate investment and asset management company. The Company manages own real
estate portfolio primarily in the office, retail, and residential segment.
Founded in 1989. New executive management and board came in 2017.
Company listed on NASDAQ OMX CPH: PARKST-A.CO
Highly flexible asset management platform backed by 20+ dedicated and experienced employees.
Company is technology driven with own developed asset and property management software geared and executing several
real estate strategies.
Team experience with 20+years track record of real estate investing spanning several cycles.
Assets by segment
21%
34%
7%
1%
37%
Retail
Office
Hospitality
Logistic
Residential
Copenhagen
London
45 assets
∼
211,000 m²
∼
AUM EUR 367 mn/
Park Street/ Director’s report
5
Company Focus and Strategies
Park Street aims to consolidate to the strategies, Pulse and Spark over 2-4 years.
The proceeds from the portfolios; Stable, Nordicom, regional assets and Nordicom, development assets along
with new capital are to be used to focus on developing Pulse- and Spark-portfolios.
Park Street is currently managing four portfolio with different strategies across 45 assets in Denmark.
• Pulse - youth living and hospitality partnerships
• Spark - institutional quality office and retail
• Stable - cash flow portfolio
• Nordicom - divestment portfolio
Each portfolio has its own strategy, focus areas and all assets have an asset management plan for execution. Fur-
ther initiatives for optimization across assets and portfolio are also planned.
60%
40%
Assets by portfolio
Current
Target
40%
30%
10%
20%
Pulse
Spark
Stable
Nordicom
Park Street/ Director’s report
6
Asset Management Services
Park Street is a one-stop-platform for asset management and property services.
We cover the value chain through in-house expertise and strategic partnerships to execute on asset manage-
ment plans.
Park Street/ Director’s report
7
Review – data driven asset management and property management platform
Park Street/ Director’s report
8
Portfolio
Outline
Park Street/ Director’s report
9
01. Pulse
Park Street/ Director’s report
10
01. 1 Pulse Living
Pulse Living is a community within and extending to the local community and institutions of higher education in
Copenhagen. Further engaging the local community around the property through events and compatible com-
mercial tenants
Park Street/ Director’s report
11
01. 2 Pulse – Asset Management Case
Pulse N, Copenhagen NV
• Pulse N at Hejrevej 8-10 is a 9,000 m² office building built in 1967. Former office tenant, terminated its
lease in year 2018.
• In recent years, Copenhagen N and NV has become a very attractive urban area for both students,
international visitors and tourist. The Copenhagen N and NV district has topped Time Out Magazine’s
‘World’s Coolest Neighborhoods 2021’ list.
• Park Street’s Pulse concept was ideal for the area and the old office building is now under construc-
tion into youth housing apartments with retail on the ground floor.
• Total 204 apartments - on average 30 m² with own kitchen and bathroom.
• Waiting list for the apartments under construction is more than 1,400+ people listed.
• Four retail unit across 1,500 m² - tenant composition in synergy with Pulse Living youth housing con-
cept and local community.
• The project is under construction and will be ready in summer 2023.
Park Street/ Director’s report
12
02. Spark
Park Street/ Director’s report
13
02. 1 Spark
Banegårdsavej, Glostrup
• Banegårdsvej, Glostrup is a retail and office property located right at Glostrup Station with the new
Letbane, DKK 7.5 billion of new railway infrastructure connecting Ishøj to Lyngby.
• The property is 9,961 m² and was bought with the majority of the property being vacant.
• Asset management plan is being executed with redevelopment and upgrading of property, change of
floor planning and attracting quality and right composition of tenants with respect to the demographics
of the area.
New main tenant with lease of 3,000 m² office headquarter for a Danish engineering
company, ABC Ingeniør.
Several on-going negotiations with well-known and quality tenants for retail and of-
fice.
• Long-term large residential development opportunities. On-going discussion with Glostrup Municipal-
ity.
Park Street/ Director’s report
14
03. Stable
Park Street/ Director’s report
15
04. Nordicom
Park Street/ Director’s report
16
Selected properties for divestment
Prøvestensvej 20, Helsingør
Sjællandsgade 12,16,18, Vejle
Selected properties with development potential
Allerød Vestcenter, Lillerød with +2,400 m² of building rights
Ringsted Centeret, Ringsted with +24,000 m² of building rights
Park Street/ Director’s report
17
Financial Highlights
Key figures
Amounts in DKK 1000s
2022
2021
2020
2019
2018
Income statement
Rental income
136,348
124,328
126,903
147,518
149,729
Total net sales
153,281
158,264
172,669
203,166
175,444
Gross profit
104,675
117,418
124,979
150,093
146,154
Profit from primary operations
74,499
187,225
187,929
146,021
142,341
Financial items
-29,932
-25,881
-25,757
-29,105
-33,409
Earnings before value adjustments and tax (EBVAT)
42,898
56,866
69,983
83,223
88,014
Profit for the period
54,980
145,459
145,491
115,053
108,289
Statement of financial position
Investment properties
2,521,581
2,615,015
2,462,633
2,477,995
2,304,614
Investments in property, plant and equipment
-15,061
25,803
36,991
19,259
2,648
Balance sheet total
2,807,465
3,020,749
2,723,067
2,772,843
2,580,698
Interest-bearing debt
1,402,935
1,509,471
1,405,024
1,633,364
1,590,916
Total equity
1,087,024
1,217,038
1,071,946
931,133
810,652
Statement of cash flows
Cash flows from operations
40,219
57,999
61,966
92,856
87,930
Cash flows from investment
116,508
-17,777
137,919
-125,487
51,825
Cash flows from financing
-290,015
104,447
-238,341
39,927
-94,668
Other disclosures
Non-current liabilities as a proportion of total liabilities (%)
95.6
95.7
94.1
89.7
94.1
Share capital
57,175
67,513
67,513
67,513
67,513
Share price, end of period (DKK)
13.90
14.10
10.00
6.65
6.7
Share price change in points
-0.20
4.10
3.35
-0.05
0.9
Dividend per share
0.0
0.0
0.0
0.0
0.0
Number of employees in the Group (average)
27
26
26
32
27
Financial ratios
2022
2021
2020
2019
2018
Return on property portfolio (% p.a.)
3.9
4.3
4.7
5.8
5.9
Average loan rate (% p.a.)
2.1
1.8
1.8
1.8
2.0
Return margin on property portfolio (% p.a.)
1.8
2.5
2.9
4.0
3.9
Return on equity (%)
5.1%
11.9%
13.6%
12.4%
13.4%
Equity ratio (%)
38.7%
40.3%
39.4%
33.6%
31.4%
Net asset value per share, end of period (DKK)
19.0
18.0
15.9
13.8
12.0
Earnings per share (avg. Number of shares) (DKK)
1.1
2.2
2.2
1.7
1,7
Dividend yield (%)
0.0
0.0
0.0
0.0
0.0
Share Price/net asset value, end of period
0.3
0.4
0.4
0.5
0.6
Cash flow per share (DKK)
0.7
0.9
0.9
1.4
1.4
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 2022.
Park Street/ Director’s report
18
Financial Results
Yearly result compared to expected development
The Group achieved in 2022 an EBVAT (profit excluding value adjustments and tax) of DKK 42.9 million (2021:DKK 56.8 million), as compared to
expectations of DKK 50 million, primarily driven due to a combination of reduction in number of assets from sale of properties, leading to lower
income, combined with an increase in financial expenses due to changes in interest rates. Furthermore there was an increase in new leasing adding
to costs for marketing activity, and an increase in energy costs related to vacant units.
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 31 December 2022 is composed of all the Group's 46 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
2022
2021
Zealand
1.852
74%
1.825
69%
Bornholm
0
0%
38
1%
Fyn
233
9%
249
9%
Jutland
413
17%
524
20%
Total
2.497
2.636
Park Street/ Director’s report
19
The breakdown by activity based the property value is split as follows
:
Amount in Million DKK
2022
2021
Residential
455
19%
515
20%
Residential Project
511
20%
470
18%
Office
827
33%
842
32%
Retail
581
23%
692
26%
Hotel
99
4%
92
3%
Storage
24
1%
26
1%
Total
2.497
2.636
The following table shows the calculated average vacancy divided by property types:
Average vacancy in %
2022
2021
Retail
13.67%
19.28%
Office (*)
17.46%
24.00%
Residential
8.83%
10.85%
Storage
53.54%
39.86%
Others
0.00%
0.00%
Total
20.47%
22.25%
The following table shows the calculated average gross rent obtained divided by property types on properties held at 31 December 2022:
Avg. gross rent per sqm p.a. (DKK)
2022
2021
Retail
1,058
1,184
Office
1,110
969
Residential
2,059
2,256
Storage
412
405
Other
988
924
Total
1,136
907
Park Street/ Director’s report
20
Consolidated Financial Review
PROFIT AND LOSS
Park Street's Net Profit is DKK 55 million for 2022 (2021: DKK 145.4 million), equivalent to a change of DKK 99.5 million in relation to 2021.
As mentioned above the EBVAT in 2022 is DKK 42.9 million (2021: DKK 56.9 million), which is DKK 14 million lower than the one achieved in 2021.
The reduction is primarily driven by the reduction of the gross profit (DKK -12.7 million), due to a reduction in rental income (- DKK 7.9 million) and
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 the post Covid-19 impact. This has partially been offset by an increase in income received from the hotels in the group (DKK
5.8 million).
The Net Profit for the period is DKK 55 million (2021: DKK 145.4 million) is due to fair value adjustment in 2022 with a net of DKK 36.1 million while
the fair value adjustment in 2021 had a net effect of DKK 128.9 million. To finalize, the effect of the Tax on profit in 2022 is DKK -19.5 million (2021:
DKK -41.8 million) due to a relatively lower increase in fair value adjustments.
BALANCE SHEET
Park Street's Net Assets as at 31 December 2022 were DKK 2,807.5 million, an decrease of DKK 212 million on the balance sheet total at 31
December 2021. The decline is mainly due to sale of investment properties leading to a reduction of DKK 84.2 million and a decrease in current
assets of DKK 127.2 million (from DKK 205.9 million at 31 December 2021 to DKK 78.6 million at 31 December 2022) due to proceeds from sale of
investment properties, financing and re-financing activities. There was a positive revaluation of investment and domicile properties of DKK 36.1
million. Non-current assets were DKK 2,728.8 million at 31 December 2022 (2021: DKK 2,813.6 million).
The Group's equity as at 31 December 2022 was DKK 1,087 million, compared to DKK 1,217 million as at 31 December 2021. The decline in the
Group's equity is mainly due to the decrease in the profit for the period with DKK -99.5 million.
Liabilities to credit institutions were DKK 1,402.9 million as at 31 December 2022 (31 December 2021: DKK 1,509.5 million), consisting of DKK
1,382.6 million (99%) for non-current liabilities and DKK 20.3 million (1%) for current liabilities. In 2022, financial liabilities were decreased by DKK
106.6 million driven by decrease in debt and amortization repayments to credit institutions.
CASH FLOWS FOR 2022
Cash flows from operating activities for 2022 were DKK 40.2 million (2021: DKK 58 million), equivalent to a decrease of DKK 17.8 million in relation
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 2022 were DKK 116.5 million (2021: DKK -17.8 million). Cash flows from investing activities increased com-
pared to the previous year due to larger sale of assets in 2022 as compared to 2021 (2022: DKK 216 million, 2021: DKK 8 million). There was lower
improvements made to investment properties of DKK -99 million (2021: DKK -25.8 million).
Cash flows from financing activities for 2022 were DKK -290 million (2021: DKK 104.4 million) mainly driven by the repurchase of new shares of DKK
183.5 million, paydown of financing and amortization repayments to credit institutions of DKK 174.5 million.
The Group's liquid assets amounted to DKK 34.5 million at 31 December 2022 against DKK 167.8 million as at 31 December 2021.
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.
Park Street/ Director’s report
21
Parent company Park Street A/S
For the parent company Park Street A / S, profit before tax amounts to DKK 79.5 million in 2022 (2021: DKK 187.2 million).
The parent company's profit and loss before tax is affected by a decrease of the retail income of DKK 32 million (2021: DKK 8 million).
Parent company equity per 31 December 2022 amounts to DKK 1,087 Million (31 December 2021: DKK 1,217 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 components:
Liquidity risk
• Refinancing risk
• Liquidity risk management
Interest rate risk.
Credit risk.
Capital management.
Refer to the information in Note 28.
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:
Park Street/ Director’s report
22
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
Part Street’s portfolio of leases are generally at market rent levels. The Group has an opportunity to review the leases where there is a gap to market
rents using section 13 clause 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 require-
ments for upgrading 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
necessary, 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 situation
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.
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 suppliers 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 the 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/ Director’s report
23
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.
Data ethics: The Park Street Group does not have a formalized policy on data ethics. Park Street only processes data for business
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/
Park Street/ Director’s report
24
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. Group’s internal control and risk management systems relating to the accounting process are de-
signed to minimise the risk of irregularities and significant errors in the published financial statements.
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 identification
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 violations
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 reporting
in the Auditor’s Long-form Report to the Board of Directors. Minor irregularities are reported in Management Letters to the Executive Board.
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
2023
57
0
0
0
Not Independent
M
Pradeep Pattem (**)(***)
2016
2023
46
6,722,484
0
6,722,484
1)
Not Independent
M
Ohene Kwapong
2016
2023
61
0
0
0
Independent
M
Anita Nassar(*)(****)
2016
2023
60
0
0
0
Independent
F
Claes Peter Rading
2021
2023
60
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
(*****) Andrew LaTrobe has not been re-elected after the Annual General Meeting held on April 25, 2022
1) Acquired via Park Street Asset Management Ltd.
Park Street/ Director’s report
25
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 promote
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 vacant)
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.
The remuneration for the members of the Board of Directors in 2022 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 establish-
ment 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 Management
Committee, the Chairman of the Strategic Investments Committee and the Chair of Credit & Mortgage Risk and Compliance Committee.
Director Positions
Park Street Asset Management Limited, England
Park Street Advisors, England
Park Street A/S
Pulse Taastrup P/S, Denmark
Pulse Glostrup P/S, Denmark
PS Holdco I P/S
Pulse Glostrup P/S
Pulse Taastrup P/S
Pulse O P/S
Pulse N P/S
Svanevej P/S
Ballerup Hotel P/S
Toldbuen P/S
Management positions
CEO of Park Street A/S, Denmark
Phoam Studio ApS
PSN ApS
Pulse Living ApS
Albuen ApS
PS I ApS
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
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.
Park Street/ Director’s report
26
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.
Director positions:
Elwyn Green Ltd
IP Nexus, US
Kamo River Investments Ltd
LocalCircles India Pvt Ltd, India
Seequestor, UK
Tillingbourne (Canterbury) Ltd
Tillingnourne (Horham) Ltd
Shareholder structure
Shareholders above 5%
In percent
Park Street Asset Management Ltd.
93.06%
The number of registered shareholders amounts as of 31 December 2022 to 865 pcs. (December 31, 2021: 913 pcs.). The registered shareholders
represent per 31 December 2022 99% of the share capital (31 December 2021: 99%).
Share capital
DKK 57,175,572
Nominal share amount
DKK 1
Number of shares 57,175,572 shares
Share Classes
DKK 12,827,637 A-shares Listed
DKK 44,347,935 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
27
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 2022
at price 13.9 (31 December 2021: 14.1), which is a decrease of 0.2 points in relation to the share price per share as of 31 December 2022. The
market value of Park Street A / S constitute as of 31 December 2021 178.3 million (31 December 2021: DKK 169.59 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 Board of Directors deems it prudential to propose to the Annual General Meeting that no dividend will be paid for the financial year 2022.
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.
Stock exchange announcements in 2023 and 2022
Date
Title
02-03-2023
Park Street A/S : 2023 Strategy
28-12-2022
Park Street A/S – New Share buyback program
21-12-2022
Park Street A/S – New Share buyback program
14-12-2022
Park Street A/S – New Share buyback program
07-12-2022
Park Street A/S – New Share buyback program
30-11-2022
Park Street A/S – New Share buyback program
23-11-2022
Park Street A/S – New Share buyback program
16-11-2022
Park Street A/S – New Share buyback program
09-11-2022
Park Street A/S – New Share buyback program
02-11-2022
Park Street A/S – New Share buyback program
26-10-2022
Park Street A/S – New Share buyback program
19-10-2022
Park Street A/S – New Share buyback program
12-10-2022
Park Street A/S – New Share buyback program
05-10-2022
Park Street A/S – New Share buyback program
28-09-2022
Park Street A/S – New Share buyback program
21-09-2022
Park Street A/S – New Share buyback program
14-09-2022
Park Street A/S – New Share buyback program
26-08-2022
Park Street A/S – Park Street Interim Report Half Year 2022
26-08-2022
Park Street A/S – Park Street Interim Report Half Year 2022
Park Street/ Director’s report
28
19-07-2022
Park Street A/S – Conversion of class B shares into listed class A shares
11-06-2022
Park Street A/S – Reduction of share capital
25-04-2022
Park Street A/S – Results of general meeting 2022
12-04-2022
Park Street A/S – New share buyback program
11-04-2022
Park Street A/S – New share buyback program
01-04-2022
Park Street A/S – New share buyback program
01-04-2022
Park Street A/S – Annual Report 2021
01-04-2022
Park Street A/S – Annual Report 2021
01-04-2022
Park Street Nordicom A/S – Annual General Meeting 2022
30-03-2022
Park Street A/S – Publishes updated financial calendar
25-03-2022
Park Street A/S – New share buyback program
16-03-2022
Park Street A/S – New share buyback program
07-03-2022
Park Street A/S – New share buyback program
25-02-2022
Park Street A/S – New share buyback program
04-02-2022
Park Street A/S : 2022 Strategy
Financial Calendar
05-04-2023
Annual Report 2022
28-04-2023 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: parkstreet@parkstreet.dk
Group structure at December 31, 2021
The Group structure at December 31, 2022 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
29
Statement by Board of Directors and Management
Management
Pradeep Pattem
CEO
Board of Directors
Anita Nassar Pradeep Pattem
Chairman
Ohene Aku Kwapong Claes Peter Rading
Park Street/ Independent Auditor’s Report
30
Independent Auditor’s Report
Report on the audit of the Financial Statements
Park Street/ Independent Auditor’s Report
31
Independent Auditor’s Report (continued)
Park Street/ Independent Auditor’s Report
32
Independent Auditor’s Report (continued)
Park Street/ Independent Auditor’s Report
33
Independent Auditor’s Report (continued)
CVR no 33 77 1 2 31
Park Street/ Independent Auditor’s Report
34
Park Street/ Independent Auditor’s Report
35
2022
CONSOLIDATED
FINANCIAL STATEMENTS
Park Street | CONSOLIDATED Financial Statements
36
Income statement
Note
Amounts in DKK 1000s
2022
2021
3
Net sales
4
Operating expenses
-48,606
-40,846
Gross profit
5
Employee benefit expenses
-17,231
-17,808
6
Other expenses, by nature
-10,936
-12,532
7
Depreciation, amortisation and impairment
-3,678
-4,330
Operating profit (EBIT)
8
Financial expenses
-29,932
-25,881
Earnings before value adjustments (EBVAT)
9
Adjustment to fair value, net
10
Gains realised on the sale of investment properties
-4,466
Profit before tax
11
Tax on profit for the period
-19,518
-41,767
Profit for the period
Distributed as follows
Parent's shareholders
Profit for the period
12
Earnings per share, end of period
12
Diluted earnings per share, end of period
Park Street | CONSOLIDATED Financial Statements
37
Statement of comprehensive income
Note
Amounts in DKK 1000s
2022
2021
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
-2,420
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
38
Statement of financial position
Note
Amounts in DKK 1000s
2022
2021
ASSETS
Non-current assets
Intangible assets
13
Software
13
Capitalised leasing costs
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
Trade and other current receivables
Income tax receivable
Prepaid expenses and accrued income
20
Cash and cash equivalents
Total current assets
Total assets
Equity
Share capital
Revaluation reserve
Share Premium
Accumulated profit
21,22
Total equity
LIABILITIES
Non-current liabilities
23
Deferred tax
24
Borrowings
Deposits
Current liabilities
25
Provisions for liabilities
24
Current borrowings
Trade and other payables
Deposits
Other liabilities
Total liabilities
Total equity and liabilities
Park Street | CONSOLIDATED Financial Statements
39
Statement of equity
Amounts in DKK 1000s
Share capi-
tal
Revaluation
reserve
Accumulated
profit
Share Pre-
mium
Equity
Total
Statement of equity for 2022:
Equity as at 1 January 2022
Comprehensive income for the period
Profit for the period
Fair value adjustment of domicile
Tax on other comprehensive income
-2,420
-2,420
Other comprehensive income during the financial year
Comprehensive income for the period
Transactions with owners
Repurchase own shares
-183,488
-183,488
Capital reduction
-10,338
-10,338
Total transactions with owners
-10,338
-183,488
-193,826
Other adjustments
Depreciation of revalued value of domiciles
-1,790
Total other adjustments
-1,790
Equity as at 31 December 2022
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 0 -503 0 0 -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 own shares
Total transactions with owners
Other adjustments
Depreciation of revalued value of domiciles 0 -1,795 1,795 0 0
Total other adjustments
-1,795
Equity as at 31 December 2021
Park Street | CONSOLIDATED Financial Statements
40
Statement of cash flows
Note
Amounts in DKK 1000s
2022
2021
Operating profit (EBIT)
Adjustment for illiquid operating items, etc.
Change in operating capital
-4,616
Cash flows concerning primary operations
Financial income received
Financial expenses paid
-29,932
-29,902
Paid Corporate Tax
-1,742
-5,275
Total cash flow from operating activities
Cash flow from investing activities
Improvements to investment properties
-99,024
-25,803
Sales of investment properties
Purchase of intangible assets
-670
Total cash flow from investing activities
-17,777
Cash flow from financing activities
Repurchase own shares
-183,479
Proceeds from assumption of liabilities to credit institutions
Repayment of other liabilities to credit institutions
-174,530
-398,859
Total cash flow from financing activities
-290,015
Total cash flow for the period
-133,288
Liquid assets as at 1 January
Liquid assets at the end of the period
Liquid assets at the end of the period
Cash and short term deposits
Liquid assets at the end of the period
41
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 and amortization
Note 8
Financial Expenses
Note 9
Adjustment to fair value, net
Note 10
Realized gains 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
Domicile
Note 15
Investment properties
Note 16
Machinery and equipment
Note 17
Investment in associates
Note 18
Mortgages and instruments of debt
Note 19
Receivables
Note 20
Cash and cash equivalents
Note 21
Share capital
Note 22
Own shares
Note 23
Deferred taxes
Note 24
Borrowings
Note 25
Provisions for liabilities
Note 26
Contingent assets and liabilities
Note 27
Financial risks
Note 28
Non-current operating items, etc.
Note 29
Change in operating capital
Note 30
Related parties
Note 31
Subsequent events
Note 32
Accounting policies
42
43
44
45
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
66
67
68
69
Park Street | Park Street A/S Financial Statements
70
2022
PARK STREET A/S
FINANCIAL STATEMENTS
Park Street | Park Street A/S Financial Statements
71
Income statement
Note
Amounts in DKK 1000s
2022
2021
2
Net sales
93,549
140,258
3
Operating expenses
-26,245
-35,581
Gross profit
67,304
104,677
4
Employee benefit expenses
-12,713
-16,396
5
Other expenses, by nature
-9,331
-11,264
6
Depreciation, amortisation and impairment
-1,648
-3,938
Operating profit (EBIT)
43,611
73,079
Financial income subsidiaries
11,426
11,777
7
Financial expenses
-8,113
-20,931
Earnings before value adjustments (EBVAT)
46,924
63,926
8
Income / Loss from subsidiaries
12,727
54,289
9
Adjustment to fair value, net
24,374
67,539
Gains realised on the sale of investment properties
-4,466
1,472
Profit before tax
79,559
187,225
10
Tax on profit for the period
-15,747
-41,767
Profit for the period
63,812
145,459
Distributed as follows
Parent's shareholders
63,812
145,459
Profit for the period
63,812
145,459
Park Street | Park Street A/S Financial Statements
72
Statement of comprehensive income
Note
Amounts in DKK 1000s
2022
2021
Profit for the period
63,812
145,321
Other comprehensive income:
Items that cannot be reclassified to the income statement:
Fair value adjustment of domicile properties
0
7,040
Tax on fair value adjustment of domicile properties
0
-1,549
Other comprehensive income after tax
0
5,491
Comprehensive income for the period
63,812
150,812
Distributed as follows
Parent's shareholders
63,812
150,812
Comprehensive income for the period
63,812
150,812
Park Street | Park Street A/S Financial Statements
73
Statement of financial position
Note
Amounts in DKK 1000s
2022
2021
ASSETS
Non-current assets
Intangible assets
Software
446
1,865
Capitalised Leasing Fees
625
0
1,071
1,865
Property, plant and equipment
12
Investment properties
1,398,766
1,596,596
13
Machinery and equipment
-45
49
1,398,721
1,596,645
Financial assets
11
Investment in subsidiaries
465,332
452,291
Investment in associates
2,029
2,029
Deposits
161
161
467,522
454,481
Total non-current assets
1,867,314
2,052,991
Current assets
14
Mortgages and instruments of debt
165,296
165,554
15
Trade and other current receivables
60,252
36,038
Income tax receivable
2,270
4,986
Prepaid expenses and accrued income
911
2,029
Cash and short-term deposits
7,167
152,652
Total current assets
235,839
361,259
Total assets
2,103,154
2,414,250
Equity
Share capital
57,175
67,513
Share Premium
289,260
289,260
Accumulated profit
740,589
860,265
Total equity
1,087,024
1,217,038
LIABILITIES
Non-current liabilities
16
Deferred tax
247,723
232,087
17
Borrowings
720,686
894,301
Deposits
1,615
4,413
970,024
1,130,801
Current liabilities
Provisions for liabilities
400
400
17
Current borrowings
20,347
20,347
Trade and other payables
-1,804
11,860
Deposits
25,108
25,108
Other liabilities
2,055
7,454
46,106
66,411
Total liabilities
1,016,130
1,197,212
Total equity and liabilities
2,103,154
2,414,250
Park Street | Park Street A/S Financial Statements
74
Statement of equity
Amounts in DKK 1000s
Share cap-
ital
Revaluation re-
serve
Accumulated
profit
Share Pre-
mium
Equity
Total
Statement of equity for 2022:
Equity as at 1 January 2022
67,513
0
860,265
289,260
1,217,038
Comprehensive income for the period
Profit for the period
0
0
63,812
0
63,812
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
63,812
0
63,812
Transactions with owners
Repurchase own shares
0
0
-183,488
0
-183,488
Capital reduction
-10,338
0
0
0
-10,338
Total transactions with owners
-10,338
0
-183,488
0
-193,826
Equity as at 31 December 2022
57,175
0
740,589
289,260
1,087,024
Statement of equity for 2021:
Equity as at 1 January 2021
67,513
55,107
660,066
289,260
1,073,085
Comprehensive income for the period
Profit for the period
0
0
145,459
0
145,459
Comprehensive income for the period
0
0
145,459
0
145,459
Transactions with owners
Repurchase own shares
0
0
25
0
25
Cash injection by existing shareholders
0
-55,107
54,715
0
-392
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
Equity as at 31 December 2021
67,513
0
860,265
289,260
1,217,038
Park Street | Park Street A/S Financial Statements
75
Statement of cash flows
Note
Amounts in DKK 1000s
2022
2021
Operating profit (EBIT)
43,611
73,079
Adjustment for illiquid operating items, etc.
1,648
3,939
Change in other operating capital
-41,641
-7,217
Cash flows concerning primary operations
3,618
69,801
Financial expenses paid
-8,113
-20,931
Paid Corporate Tax
-3,079
-5,275
Total cash flow from operating activities
-7,572
43,594
Cash flow from investing activities
Improvements to investment properties
-6,313
-17,689
Sales of investment properties
225,505
8,026
Share capital increase (cash injection)
0
-25
Total cash flow from investing activities
219,192
-9,688
Cash flow from financing activities
Repurchase Own Shares
-183,488
0
Proceeds from assumption of liabilities to credit institutions
0
503,306
Repayment of liabilities to credit institutions
-29,524
-397,881
Repayment of debt from disposal of assets
-144,092
0
Total cash flow from financing activities
-357,104
105,425
Total cash flow for the period
-145,485
139,331
Liquid assets as at 1 January
152,652
13,321
Liquid assets at the end of the period
7,167
152,652
Liquid assets at the end of the period
Cash and short term deposit
7,167
152,652
Liquid assets at the end of the period
7,167
152,652
Park Street | Notes to Park Street A/S Financial Statements
76
Summary
Note 1
Accounting policies, accounting estimates, risks etc.
Note 2
Net sales
Note 3
Operating expenses
Note 4
Employee Expenditure
Note 5
Auditor's fees
Note 6
Depreciation and amortization
Note 7
Financial expenses
Note 8
Income / (loss) from subsidiaries
Note 9
Adjustment to fair value, net
Note 10
Tax on profit for the year and other comprehensive income
Note 11
Investment in subsidiaries
Note 12
Investment properties
Note 13
Machinery and equipment
Note 14
Mortgages and instruments of debt
Note 15
Trade and other current receivables
Note 16
Deferred taxes
Note 17
Borrowings
Note 18
Contingent assets and liabilities
Note 19
Financial risks
Note 20
Change in other working capital
Note 21
Related parties
Note 22
Events after the balance sheet date
Note 23
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 22 of these financial statements, to which reference is made.
See note 11 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 2022 2021
Rental income
80,543
111,926
Sales of other services
12,551
27,437
Total sales of services
93,094
139,363
Interest income, mortgages and instruments of debt
455
895
93,549
140,258
Note 3 - Operating expenses
Amounts in DKK 1000s 2022 2021
Operating expenses, investment properties 26,245 31,528
Operating expenses, other services 0 4,053
26,245
35,581
Note 4 – Employee benefits expenses
Amounts in DKK 1000s
2022
2021
Salary
11,595
15,190
Contribution-based pensions
(*)
677 819
Other social security costs
57
58
Other staff costs
385
327
12,713 16,396
Average number of employ-
ees
17 18
(*) 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 2022 and 2021 is PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab. Their fees can be specified as follows:
Amounts in DKK 1000s 2022 2021
Statutory audit
588
420
Other assurance services 0 40
Tax and VAT advice
334
192
922
652
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
2022
2021
Depreciation, software
1,464
1,807
Depreciation, domicile properties 0 1,497
Depreciation, inventory and fixed
assets
185 634
1,648 3,938
Note 7 – Financial Expenses
Amounts in DKK 1000s
2022
2021
Interest expenses, liabilities to credit institutions measured at amortized cost
6,781
19,142
Other interest costs and fees
640
521
Borrowing costs 691 1,268
8,113
20,931
Note 8 – Income / (loss) from subsidiaries
Amounts in DKK 1000s
2022
2021
Intergration of subsidiaries
-15,269
-16,316
Other subsidiaries
31,767
0
16,498 -16,316
Note 9 – Adjustments to fair value, net
Amounts in DKK 1000s
2022
2021
Fair value adjustment, investment properties
24,374
67,539
Fair value adjustment, mortgage debt and bank debt 0 0
24,374
67,539
Park Street | Notes to Park Street A/S Financial Statements
79
Note 10 – Tax on profit for the year and other comprehensive income
Amounts in DKK 1000s
2022
2021
Annual tax can be divided as follows:
Current tax on profit of the year
0
1,242
Current tax adjustment
0
59
Changes in deferred taxes
21,565
38,938
Changes in deferred taxes previous years
-5,818
1,527
15,747
41,766
Tax on profit for the year can be explained as follows:
Estimated tax at a tax rate of 22%
17,503
41,190
Non-deductible costs
0
44
Adjustment of deferred tax assets and liabilities
-1,756
533
15,747
41,766
Effective tax rate
19.79%
22.31%
Amounts in DKK 1000s
2022
2021
Tax on other comprehensive income:
Tax on fair value adjustment of domicile properties
0
111
0
111
Note 11 – Investment in subsidiaries
See accounting policies on note 22 of the Parent’s 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 2022 2021
Cost price at January 1 404,144
92,377
Additions 0
311,767
Cost price at December 31
404,144
404,144
Value adjustments at 1 January 49,699
-4,590
Share of profit/loss for the year after tax
12,727
54,289
Value adjustments at December 31
62,426
49,699
Carrying amount at January 1
452,291
87,668
Investments with negative equity offset against trade receivables
252
-1,553
Carrying amount at December 31
466,570
452,291
Park Street | Notes to Park Street A/S Financial Statements
80
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 12 – Investment properties
As of 31 December 2022 there are no ongoing sales processes regarding investment properties.
Amounts in DKK 1000s
2022
2021
Balance at 1 of January
1,596,596
2,131,476
Transfer to / from a subsidiary
0
-620,913
Transfer to / from project holdings
0
0
Costs incurred for improvements
6,313 17,689
Adjustment to fair value, net
24,374 76,553
Acquisition of properties
0 0
Additions fixed assests
561 0
Depreciation of fixed assets
-185 -129
Retirement on sale
-228,938
-8,080
Balance at 31 December
1,398,722
1,596,596
Fair value hierarchy for investment:
Amounts in DKK 1000s
Level 1
Level 2
Level 3
Total
At 31 December 2022:
Investment properties 0 0
1,398,722
1,398,722
0 0
1,398,722
1,398,722
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
81
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 2022 and 2021 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
2022
2021
Rental income from investment properties 80,543 119,609
Operating expenses, investment properties -26,245 -34,679
Net income from investment properties
54,298
84,930
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 2022 2021
Remaining termination within 1 year from the balance sheet date 26,972 26,972
Remaining termination between 1 and 5 years from the balance sheet date 70,238 70,238
Remaining termination after 5 years from the balance sheet date 57,607 57,607
154,817
154,817
Note 13 – Machinery and equipment
Amounts in DKK 1000s IT Equipment Appliances
Total Machinery and
Equipment
Cost at 1 of January 2022
4,150
8,424
12,574
Additions during the year
0
0
0
Disposals during the year
0 0 0
Cost at 31 December 2022
4,150
8,424
12,574
Amortization at 1 January 2022
-4,131 -8,395 -12,526
Amortization during the year
-10 0 -185
Amortization at 31 December 2022
-4,141
-8,395
-12,536
Balance at 31 December 2022
9
29
38
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
Park Street | Notes to Park Street A/S Financial Statements
82
Note 14 – Mortgages and instruments of debt
Park Street has the following mortgage and debt instruments classified as "Financial assets measured at amortized cost":
Amounts in DKK 1000s 2022 2021
Financial assets at amortized cost at 1 January 165,554 165,883
Repayment of the year -258 -329
Financial assets at amortized cost at 31 December
165,296
165,554
Mortgages and debt securities classified as financial instruments in the category "Financial assets recognized at amortized cost" expire in the follow-
ing periods:
Effective interest rate p.a.
Balance in DKK 1000s
Fair value in DKK 1000s
Value Expire 2022 2021 2022 2021 2022 2021
DKK 2025 7.50% 7.50% 7,412 7,671 7,412 7,671
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
165,295 165,554 165,295 165,554
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 – Trade and other current receivables
Amounts in DKK 1000s
2022
2021
Receivable Rental Income
4,607 3,963
Deposited funds in banks 8,272 12,209
Other Receivables
349 409
Receivables from related parties
47,025
19,456
Receivables at 31 December
60,252
36,038
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 2,444 1,712
Additional provisions -277 736
Recognized losses (Write off) 0 -4
Reversal
-1
0
2,165
2,444
Park Street | Notes to Park Street A/S Financial Statements
83
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 276 0
Between 30 and 90 days 2,535 0
Over 90 days 1,801 1,300
4,612
1,300
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
2022
2021
Deferred tax liabilities at 1st of January
232,087
191,733
Recognized in other comprehensive income
0
-111
Correction from previous years
-111
0
Recognized in the income statement
15,747
40,465
Deferred tax liabilities at 31 December
247,723
232,087
Deferred tax is recognized in the balance sheet as follows:
Deferred tax (active)
Deferred tax (liability)
-247,723
-232,087
Deferred tax at 31 December
-247,723
-232,087
Deferred tax recognized in the balance
The calculation of deferred taxes included DKK 32.6 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 247.7 million (taxable value) per 31 December 2022 (2021: DKK 232.1 million).
Amounts in DKK 1000s Balance 1/1
Recognized
in the income
statement
Recognized
in another
comprehen-
sive income
Balance 31/12
2022
Software
410
-312
0
98
Investment and residential properties 266,087 11,810 0 277,897
Fixtures and fittings -413 25 0 -388
Project Holdings 0 0 0 0
Receivables -612 0 0 -612
Provisions 0 -88 0 -88
Credit institutions
-779
1,910
0
1,131
Tax losses carryforward
-32,606
2,291
0
-30,315
232,087 15,636 0 247,723
Park Street | Notes to Park Street A/S Financial Statements
84
Amounts in DKK 1000s Balance 1/1
Recognized
in the income
statement
Recognized
in another
comprehen-
sive 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
191,733
40,465
-111
232,087
There are no deferred tax assets not recognized in the balance.
Note 17 – Borrowings
Amounts in DKK 1000s 2022 2021
Credit institutions, nominal
747,142 920,758
Market value adjustments
-6,110 -6,110
741,032
914,648
The liabilities are thus included in the balance sheet:
Credit institutions, long-term
720,686
894,301
Credit institutions, short-term
20,347
20,347
741,032 914,648
The Group's loans and credits are distributed as per 31 December as follows:
Liabilities recognized at fair value
Currency
Rate type
Expiry date
2022
2021
Convertible bonds
DKK
Interest-free
11-15 years
11,335
11,335
11,335
11,335
Market value adjustments
-5,579
-6,110
Carrying amount
5,757
5,226
Liabilities recognized at amortized cost
Currency
Rate type
Expiry date
2022
2021
Banks Debt
DKK
Fixed
2-5 years
0
4,985
Mortgage Debt
DKK
Variable
2-5 years
64,604
43,402
Mortgage Debt
DKK
Variable
6-10 years
0
35,987
Mortgage Debt
DKK
Variable
11-15 years
667,824
593,362
Mortgage Debt
DKK
Variable
16-20 years
0
231,685
Carrying amount
732,428
909,420
Park Street | Notes to Park Street A/S Financial Statements
85
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 2022 2021
Non-current financial liabilities 894,301 1,259,880
Current financial liabilities 50,970 50,970
Liabilities associated with assets held for sale 0 0
Financial liabilities with credit institutions at 1 January
914,648
1,310,850
Repayment of liabilities to credit institutions
-173,616
-397,881
Fair value adjustment of Debt
0
1,678
Financial liabilities with credit institutions at 31 December 741,032 914,648
Non-current financial liabilities
720,686
894,301
Current financial liabilities
20,347
20,347
Total financial liabilities with credit institutions at 31 December
741,032
914,648
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 26 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 Consolidated
Financial Statements. As stated in these notes mortgage and bank debt have been recognized at amortised cost in 2022. No reversal of fair value
adjustments in 2022 and 2021.
Zero-coupon bonds (former Convertible bonds)
See note 24 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, 2022 amount a total of DKK 732 million (31
December 2021: DKK 909 million), the nominal value of the loans amounts a total of DKK 732 million (31 December 2021: DKK 909 million) in the
group's investment properties and domiciles with a book value totalling DKK 1,410 million (31 December 2021: DKK 1,597 million).
The nominal pledge for the bank debt and mortgage debt given by credit institutions per December 31, 2022 amount a total of DKK 7.4 million (31
December 2021: DKK 7.7 million), in the group's deposited mortgage deeds with a book value totalling DKK 7.4 million (31 December 2021: DKK
7.7 million).
Litigations and disputes
Park Street had a legal dispute with a previous tenant in relation to the lease being deemed as a commercial or a residential lease. Park Street has
lost the argument and now the lease is deemed to be residential. This could lead to some potential liability in relation to the dilapidations claim and
other aspects. This will be clarified as the case proceeds further with the Housing Board.
No additional significant litigations and disputes are acknowledged by the Group at December 31, 2022 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
Park Street | Notes to Park Street A/S Financial Statements
86
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 additional
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 acqui-
sition; the Company has decided not to recognize the contingent asset in the balance as at December 31, 2022.
Lease hire agreements
There are lease hire agreements for cars rental and printers.
2022
2021
Within 1 year from the balance sheet date
10
1
Between 1 and 5 years from the balance sheet date
422
5
After 5 years from the balance sheet date
0
0
Lease hire obligations at 31 December 431 6
Minimum lease payments recognized in the profit and loss account for the year
31
130
Note 19 – Financial risks
Amounts in DKK 1000s 2022 2021
Mortgages and debentures
7,412
7,671
Intercompany loan
157,883
157,883
Financial assets measured at amortized cost 165,296 165,554
Receivables 60,252 36,038
Cash and equivalents 7,167 152,652
Loan and receivables
67,419
188,690
Credit institutions 5,757 5,226
Financial liabilities measured at fair value through profit or loss 5,757 5,226
Credit institutions
735,806
909,421
Deposits 26,723 29,521
Accounts payable -2,001 11,860
Other Debts 5,171 7,454
Financial liabilities measured at amortized cost
765,699
958,256
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.
Park Street | Notes to Park Street A/S Financial Statements
87
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 financing
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, 2022 DKK 7.2 million (31 December 2021: DKK 152.6 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
2022
Non-derivative financial instruments
Credit institutions
741,032
751,837
19,409
0
64,604
667,824
Trade payables
-2,001
-2,001
0
0
0
0
Deposits
26,723
27,507
14,591
10,583
1,570
764
Other debts
5,171
5,171
5,171
0
0
0
Total
770,925
782,514
39,170
10,583
66,174
668,588
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
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 continuously
monitored with a view to optimizing the group's exposure to interest rate risks. Park Street at December 31, 2022 does not have financial instru-
ments 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
88
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, 2022:
Mortgage debt
Cibor6
104
4.91%
Mortgage debt F2
43
2.64%
Mortgage debt F3
122
0.86%
Mortgage debt F5
463
0.98%
Bank debt etc. Fixed
0
-
Others
Interest-free
0
-
732
1.62%
At December 31, 2021:
Mortgage debt Cibor6 139 2.08%
Mortgage debt F2 46 2.54%
Mortgage debt
F3
214
0.83%
Mortgage debt
F5
505
0.84%
Banks and other payables.
Fixed
5
0.00%
Others Interest-free 5 0.00%
914
1.11%
The calculated weighted interest rate for all Park Street loans are at 31 December 2022 1.62% per annum, and is based on the latest confirmed
interest rates. The corresponding calculated weighted rate at 31 December, 2021 was 1.11% 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 million
2022
2021
Within six months
80
193
Between 6 and 12 months
65
0
Between 1 and 2 years
0
212
Between 2 and 5 years
588
505
After 5 years
0
5
732 914
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:
Amounts in DKK 1000s 2022 2021
Variable Interest rate loans:
Effect on income statement
-1.0
-11.3
Effect on equity
-1.0
-11.3
Park Street | Notes to Park Street A/S Financial Statements
89
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 –1.0 million per
annum (2021: DKK -11.3 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, 2022 is further described in note 19 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 50.79 at December
31, 2022).
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
90
Amounts in DKK 1000s
Carry forward balance
Level 1
Level 1
Level 2
2022
Mortgages and debentures
7,412
0
0
7,412
Intercompany loan 157,883
157,883
Total financial assets
165,296
0
0
165,296
Credit institutions 5,757
0 0 5,757
Total financial liabilities
5,757
0
0
5,757
2021
Mortgages and debentures
7,671
0
0
7,671
Intercompany loan
157,883
157,883
Total financial assets 165,554 0 0 165,554
Credit institutions 5,226 0 0 5,226
Total financial liabilities
5,226
0
0
5,226
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 hierarchy.
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
2022
2021
Carrying amount per. 1st of January
5,226
3,548
Gains / losses in the income statement
531
1,678
Balance at 31st of December 5,757 5,226
Gain / loss in the income statement for liabilities held at 31st of December
531
1,678
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 2022 2021
Change in receivables
-24,214 -17,327
Change in project holdings
0 0
Change in provisons
0 0
Change in deposit
2,798 1,581
Change in trade payables
13,861 -6,685
Change in total working capital
-7,555
-22,431
Park Street | Notes to Park Street A/S Financial Statements
91
Note 21 – Related parties
Park Street Asset Management Ltd. (London, England) has controlling influence in Park Street A/S by virtue of its shareholding of 93.06% 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
2022
2021
Other related parties
Intangible assets
446
0
Software expenses 1,338 2,234
There have been no other transactions, etc. with related parties during the period.
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 acquisition
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
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
92
PROPERTY OVERVIEW
Park Street Group owns at 31 December 2022, 46 properties.
#
Strategy
Property Type
Address
ZIP
City
1
Spark Office
Office
Dannebrogsgade 2,
5000
Odense
2
Vilhelmskildevej 1 C,
5700
Svendborg
3
Birkemosevej 9 B,
6000
Kolding
4
Stagehøjvej 22,
8600
Silkeborg
5
Svendborgvej 275,
5260
Odense
6
Ørnevej 18 / Svanevej 12,
2400
København
7
Birkemose Allé 23-35,
6000
Kolding
8
Hejrevej 30,
2400
København
9
Banegårdsvej
2600
Glostrup
10
Hejrevej 26-28, Ørnevej 33-35,
2400
København
11
6, Toldbuen
4700
Næstved
12
9, Omøvej
4700
Næstved
13
30, Østergade
7600
Struer
14
Spark Retail
Retail
Silkeborgvej 102,
7400
Herning
15
13, Ro's Have
4000
Roskilde
16
1, Møllergade
5700
Svendborg
17
27, Immerkær
2650
Hvidovre
18
20, Prøvestensvej
3000
Helsingør
19
Nørregade 31-33,
4100
Ringsted
20
34A, Dæmningen
7100
Vejle
21
1, Helligkorsgade
6000
Kolding
22
1, Lilleholm
2670
Greve
23
2A, Engdahlsvej
7400
Herning
24
27, Nørregade
4100
Ringsted
25
13, Nørregade
4100
Ringsted
26
8, Ro's Have
4000
Roskilde
27
10, Dyssegårdsvej
4700
Næstved
28
23, Hersegade
4000
Roskilde
29
2, L. C. Worsøesvej
4300
Holbæk
30
11, Ro's Have
4000
Roskilde
31
3, Banetorvet
3450
Lillerød
32
1, Stenbukken
9200
Aalborg
33
19A, Albuen
6000
Kolding
34
Storage
78, Vordingborgvej
4700
Næstved
35
7, Blegdammen
4700
Næstved
Park Street | Property Overview
93
36
Pulse
Residential
29, Tåsingegade
2100
København
37
33, Jernbanegade
6000
Kolding
38
21, Nørregade
4100
Ringsted
#
Strategy
Property Type
Address
ZIP
City
39
Residential - Project
8, Hejrevej
2400
København
40
4, Kirsebærgården
3450
Lillerød
41
Skråningshusene
3070
Snekkersten
42
2, Selsmosevej
2630
Taastrup
43
12, Sjællandsgade
7100
Vejle
44
Parking
J.C.Christensens Gade
2300
København
45
Pulse Hotel
Hotel
13, Algade
4000
Roskilde
46
6, Marbækvej
2750
Ballerup
47
Sold
Retail
Århusvej
8960
Randers
48
60, Åkirkebyvej
3700
Rønne
49
78, Zahrtmannsvej
3700
Rønne
50
Sold
Office
3, Femøvej
4700
Næstved
51
3, Femøvej
4700
Næstved
52
Loftbrovej 17, Nørre-
sundby
9400
Aalborg
