Interim
Financial
Report
Half Year 2023
Company:
DK-2400 København NV
CVR no.: 12 93 25 02
LEI no.: LEIN913442016122012215420784
Registered office: Copenhagen, Denmark
Phone: +45 33 33 93 03
Internet: www.psnas.com
E-mail: nordicom@nordicom.dk
Board of Directors:
Management:
CEO Pradeep Pattem
Auditor:
PriceWaterhouseCoopers Statsautoriseret Revisionspartnerselskab
Main activity:
Contents
Directors' report 1
Directors' report 1
Consolidated financial review 2
Consolidated key figures and financial ratios 4
Statements 5
Statement by Board of Directors and Management 5
Financial statements 6
Income statement 6
Statement of comprehensive income 7
Statement of financial position as at 30 June 8
Statement of equity 10
Statement of cash flows 12
Notes 13
Park Street | Interim Financial Report 1
st
Half 2023
Page 1 of 16
Directors' report
Result in the period 1 January – 30 June 2023
Park Street result analysis primarily uses the term EBVAT (earnings before value adjustments and tax) to measure the Group’s operating results.
EBVAT in the first half of 2023 is DKK 21.8 million as compared to DKK 23.3 million for the same period last year. Net sales were at DKK 83.4
million (DKK 76.9 million for the same period last year). The reduction in EBVAT was primarily driven by an increase in financial expenses offset by
a decrease in operating and external expenses.
The Group's equity as of 30 June 2023 was positive at DKK 1,143 million, against DKK 1,087 million as of 31 December 2022. The marginal
increase is primarily due to the progress of Pulse N towards completion, and associated increase in valuation, offset by lowered valuations across
several regional retail assets.
Expectations for 2023
Park Street expectations for EBVAT (earnings before value adjustments and tax) at year-end 2023 are at DKK 45-50 million.
Park Street has made positive progress with signing of 36 new leases worth over DKK 5.5 million for 4,700 sqm in the first half of 2023. Some of
these leases require capex and refurbishment works which are expected to be completed during H2 2023 and will start generating top line cash-
flows during the year. We have also made some progress with the strategy of reducing assets in the geographies and sectors not core to Park
Street. While the sale of assets in the short term will reduce the top and bottom line of the company, our focus on investing in core assets to reduce
vacancies and improve the properties should in the medium term generate significantly improved quality of revenues and profitability. Park Street is
expected to spend over DKK 55 million over H2 towards improvements / conversions of properties to support higher leasing activities. Furthermore,
Park Street will continue to sell assets which are not core to its long-term strategy, while investing in the core portfolio, primarily Pulse Living (our
Youth Housing platform) and Spark Offices (our Managed Office Space platform) in key cities with sustainable growth potential.
The range for EBVAT expectations is refined to a lower range of DKK 45 to DKK 50 million compared to an earlier guidance of DKK 55 million. The
change is in view of the lower number of assets, due to sales, and a longer lead time for the new leases to be operational in view of significant
refurbishment works for the new leases.
Park Street is making good progress with Pulse Nørrebro project which is operational in the summer of 2023 and is also taking steps towards
initiating Pulse Tåstrup project later this year.
Organisation and Annual General meeting held on April 28
th
2023.
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 is 26 at the end of 2022 and 31 at the end of June 2023.
At the Annual general meeting of Park S treet A /S held on 28 April 2023, all proposals by the Board of Directors were approved. Reference is also
made to the distributed minutes of the ordinary general meeting on 28 April 2023, please refer to:
http://www.psnas.com/index.php/generalforsamling/
Park Street | Interim Financial Report 1
st
Half 2023
Page 2 of 16
Consolidated financial review
PROFIT FOR THE 1st HALF OF 2023
As mentioned in the Director’s report the EBVAT in the first half of 2023 is DKK 21.8 million (1st half of 2022: DKK 23.3 million). Net sales were
increased to DKK 83.4 million as compared to DKK 76.9 million in the 1
st
half of 2022. This was made possible due to achieving higher income on
existing properties by reducing the vacancy and increasing revenue from the hotel in Ballerup. The reduction in EBVAT was primarily driven by an
increase in financial expenses (+DKK 7.0 million) offset by operating expenses (-DKK 3.4 million) and other external expenses (-DKK 2.2 million).
The company’s long term debt facility resulted in higher interest payments.
Park Street's Profit for the Period (after tax and valuation adjustments) is DKK 1.2 million for the 1st half of 2023 (1st half of 2022: DKK 22.1 mil-
lion). This is equivalent to a 0.04 earnings per share. The investment properties valuations adjustment for the half year was -DKK 18.6 million
(compared to DKK 2.6 million in H1 2022). The valuation review was primarily focused on the properties where specific changes have occurred on
leases – new leases signed or termination of existing leases. Market based assumptions were used around rents, capex and capitalization rates to
determine the fair value adjustment of these properties.
BALANCE SHEET AS OF 30 JUNE 2023
Park Street's balance sheet total as of 30 June 2023 was DKK 2,821 million (DKK 2,807 million as on 31st December 2022). The marginal in-
crease is primarily due to the progress of Pulse N towards completion, and associated increase in valuation, offset by lowered valuations across
several regional retail assets.
Group’s equity as of 30 June 2023 was positive at DKK 1,143 million. Net asset value increased to 20.0 per share as compared to 18.9 per share
in the 1
st
half of 2022.
Liabilities to credit institutions were DKK 1,421 million as at 30 June 2023 (31 December 2022: DKK 1,403 million). A significant proportion of the
total liabilities are non-current at 95.1%. The company continues to maintain a healthy equity ratio of 40.5%.
CASH FLOWS FOR THE 1st HALF OF 2023
Cash flows from operating activities for the 1st half of 2023 were DKK 21.0 million (1st half of 2022: DKK 16.8 million). The increase is due to
higher operating profit (DKK 44.2 as compared to DKK 38.8 in the same period last year).
Cash flows from investing activities for the 1st half of 2023 were -DKK 36.0 million (1st half of 2022: DKK 115.2 million). They were significantly
lower as compared to last year due to DKK 153 million sale of investment properties in the last year, offset of DKK 36 million spent on improve-
ments to investment properties across the portfolio in the 1st half of 2023.
Cash flows from financing activities for the 1st half of 2023 were DKK 17.8 million (1st half of 2022: DKK -260.4 million). The higher cash flows in
the previous year were primarily driven by a DKK 159.9 million share buyback and DKK 109.9m repayment of liabilities to credit institutions last
year.
The Group's liquid assets amounted to DKK 37.3 million as of 30 June 2023.
Uncertainty in connection with recognition and measurement
In connection with the submission of the interim report, management makes several estimates and assessments regarding the carrying amount of
assets and liabilities, including:
▪ Fair value of investment properties,
Park Street | Interim Financial Report 1
st
Half 2023
Page 3 of 16
▪ Fair value of domicile properties,
▪ Impairment test on domicile properties,
▪ Classification of properties,
▪ Deferred tax assets and tax liabilities
Where estimates are concerned, there is uncertainty in relation to the stated factors and items. It may be necessary to change previous estimates
on account of changes in the factors on which the estimates were based. Reference is made to note 1 to the consolidated finan cial statements in
the Annual report for 2022for further details on these assessments, estimates and associated uncertainties. New and changed assessments and
estimates in the 1st half of 2023 are discussed in note 1 to the interim report.
Risk factors
As mentioned in the Annual report for 2022, the financial management of the Group is geared towards optimising the term structure of liabilities in
line with the Group’s operations and 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, except to manage the financial risks inherent to the Group’s core activities.
For further details of the Group's risks and risk management, see the company's Annual report for 2022 ('Risk factors' section).
Park Street | Interim Financial Report 1
st
Half 2023
Page 4 of 16
Consolidated key figures and financial ratios
Key figures
1st half of
1st half of
Full year
Amounts in DKK 1000s
2023
2022
2022
Income statement
Rental income
62,543
59,971
136,348
Total net sales
83,447
76,919
153,281
Gross profit
56,735
53,603
104,675
Profit from primary operations
20,103
25,211
74,499
Financial items
-22,491
-15,511
-29,932
Earnings before value adjustments and tax (EBVAT)
21,757
23,308
42,898
Profit for the period
18,102
22,139
54,980
Statement of financial position
Investment properties
2,554,284
2,501,697
2,521,581
Investments in property, plant and equipment
36,011
38,043
-15,061
Balance sheet total
2,831,902
2,808,045
2,807,465
Interest-bearing debt
1,420,745
1,439,555
1,402,935
Total equity
1,143,129
1,079,279
1,087,024
Statement of cash flows
Cash flows from operations
21,007
16,807
40,219
Cash flows from investment
-36,011
115,221
116,508
Cash flows from financing
17,810
-260,423
-290,015
Other disclosures
Non-current liabilities as a proportion of total liabilities (%)
94.2
91.9
95.7
Share capital
57,175
57,175
57,175
Share price, end of period (DKK)
10.60
14.70
13.90
Share price change in points
-3.30
0.60
0.80
Number of employees in the Group (average)
31
29
27
Financial ratios
1st half of
1st half of
Full year
2023
2022
2022
Return on property portfolio (% p.a.)
4.1
4.0
3.9
Average loan rate (% p.a.)
3.1
2.1
2.1
Return margin on property portfolio (% p.a.)
1.1
1.9
1.8
Return on equity (%)
0.2%
4.1%
5.1%
Equity ratio (%)
40.5%
38.4%
38.7%
Net asset value per share, end of period (DKK)
20.0
18.9
19.0
Earnings per share (DKK), end of period (DKK)
0.0
0.8
1.1
Price/net asset value, end of period
0.5
0.8
0.3
Cash flow per share (DKK)
0.7
0.6
0.7
The above financial ratios are calculated in accordance with the definitions in CFA Society Denmark's 'Recommendations & Financial Ratios 2015'.
Reference is made to note 33 to the consolidated financial statements in the Annual report for 2022.
Park Street | Interim Financial Report 1
st
Half 2023
Page 5 of 16
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 | Interim Financial Report 1
st
Half 2023
Page 6 of 16
Income statement
1st half of
1st half of
Full year
Note
Amounts in DKK 1000s
2023
2022
2022
3
Net sales
4
Operating expenses
-26,713
-23,316
-48,606
Gross profit
Employee benefit expenses
-8,836
-8,469
-17,231
Other external expenses
-3,067
-5,243
-10,936
Depreciation, amortisation and impairment
-584
-1,072
-3,678
Operating profit (EBIT)
Financial income
5
Financial expenses
-22,491
-15,511
-29,932
Earnings before value adjustments (EBVAT)
6
Adjustment to fair value, net
-18,587
7
Gains realised on the sale of investment properties
-736
-4,466
Profit before tax
8
Tax on profit for the period
-2,000
-3,072
-19,518
Profit for the period
Distributed as follows
Parent's shareholders
Profit for the period
Earnings per share
Diluted earnings per share
Park Street | Interim Financial Report 1
st
Half 2023
Page 7 of 16
Statement of comprehensive income
1st half of
1st half of
Full year
Note
Amounts in DKK 1000s
2023
2022
2022
Profit for the period
Other comprehensive income:
Items that cannot be reclassified to the income statement:
Fair value adjustment of headquarters properties
Tax on fair value adjustment of headquarters properties
-2,420
Other comprehensive income after tax
Comprehensive income for the period
Distributed as follows
Parent's shareholders
Comprehensive income for the period
Park Street | Interim Financial Report 1
st
Half 2023
Page 8 of 16
Statement of financial position
Note
Amounts in DKK 1000s
30 June
30 June
31 December
2023
2022
2022
ASSETS
Non-current assets
Intangible assets
Software
Capitalised leasing costs
Property, plant and equipment
Domiciles
9
Investment properties
Machinery and equipment
Financial assets
Investment in associates
Deposits
Total non-current assets
Current assets
Mortgages and instruments of debt
Project holdings
Receivables
Income tax receivable
Prepaid expenses and accrued income
Cash and short-term deposits
Total current assets
Total assets
Park Street | Interim Financial Report 1
st
Half 2023
Page 9 of 16
Statement of financial position
Note
Amounts in DKK 1000s
30 June
30 June
31 December
2023
2022
2022
LIABILITIES
Equity
Share capital
Revaluation reserve
-3,774
Share Premium
Accumulated profit
10
Total equity
Liabilities
Non-current liabilities
Deferred tax
12
Credit institutions
Deposits
Current liabilities
Provisions for liabilities
12
Credit institutions
Trade and other payables
-1,763
Income tax payable
Deposits
Other liabilities
Total liabilities
Total equity and liabilities
Park Street | Interim Financial Report 1
st
Half 2023
Page 10 of 16
Statement of equity
Amounts in DKK 1000s
Share
capital
Revaluation
reserve
Accumulated
profit
Share
Premium
Proposed
dividend
Equity
Total
Statement of equity for 2023:
Equity as at 1 January 2023
Comprehensive income for the period
Profit for the period
Fair value adjustment of domicile
Other comprehensive income during the financial year
Comprehensive income for the period
Transactions with owners
Repurchase treasury shares
Capital reduction
Cash injection by existing shareholders
Total transactions with owners
Other adjustments
Depreciation of revalued value of domiciles
Total other adjustments
Equity as at 30 June 2023
Park Street | Interim Financial Report 1
st
Half 2023
Page 11 of 16
Amounts in DKK 1000s
Share
capital
Revaluation
reserve
Accumulated
profit
Share
Premium
Proposed
dividend
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
Comprehensive income for the period
0
0
54,981
0
0
54,981
Transactions with owners
Repurchase treasury shares
-183,488
-183,488
Cash injection by existing shareholders
-10,338
-10,338
Liabilities with financial institutions converted into Equity
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
Park Street | Interim Financial Report 1
st
Half 2023
Page 12 of 16
Statement of cash flows
1st half of
1st half of
Full year
Note
Amounts in DKK 1000s
2023
2022
2022
Operating profit (EBIT)
Adjustment for illiquid operating items, etc.
Change in project holdings, net
Change in other operating capital
-1,037
-6,702
-4,617
Cash flows concerning primary operations
Financial income received
Financial expenses paid
-22,491
-15,511
-29,932
Paid Corporate Tax
-296
-871
-1,742
Total cash flow from operating activities
Cash flow from investing activities
Improvements to investment properties
-36,011
-38,043
-99,024
Sales of investment properties
Purchase of intangible assets
-670
Purchases of other property, plant and equipment
Acquisition of associates
Total cash flow from investing activities
-36,011
Cash flow from financing activities
Repurchase Own Shares
-159,898
-183,479
Proceeds from assumption of liabilities to credit institutions
Repayment of liabilities to credit institutions
-21,417
-109,915
-174,530
Repayment of debt from disposal of assets
-3,773
Total cash flow from financing activities
-260,423
-290,015
Total cash flow for the period
-128,394
-133,289
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 deposit
Liquid assets at the end of the period
Park Street | Interim Financial Report 1
st
Half 2023
Page 13 of 16
Notes
Note 1 - Accounting policies, accounting estimates and risks, etc.
Accounting policies
The interim report was submitted in accordance with IAS 34 'Interim Financial Reporting', as adopted by the EU, and Danish di sclosure
requirements for interim reports for listed companies. No interim financial statements were prepared for the Parent. The interim report is presented
in Danish kroner (DKK), which is the functional currency of the Parent.
Apart from the below, the accounting policies are unchanged in relation to the Annual report for 2022. Reference is made to note 33 to the
consolidated financial statements in Park Street Annual report for 2022 for a full description of the accounting policies used.
Changes to accounting policies
Park Street has implemented the changes on IFRS standards and interpretative contributions that enter into force for 2020. None of these changes
affected recognition and measurement in 2023.
Accounting assessments and estimates
No significant new accounting assessments or changes to accounting estimates have been made in the interim report for the 1st half of 2023 in
relation to the Annual report for 2022. For a description of significant accounting assessments and estimates, see note 1 to the
consolidated financial statements in the Annual report for 2022.
Note 2 - Seasons
As in previous years, the Group's activities were not affected by seasonal or cyclical fluctuations in the interim period.
Note 3 - Net sales
1st half of
1st half of
Full year
Amounts in DKK 1000s
2023
2022
2022
Rental income
62,543
59,971
136,348
Sales of other services
20,905
16,797
16,478
Total sales of services
83,447
76,768
152,826
Interest income, mortgages and instruments of debt
0
152
455
83,447
76,919
153,281
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st
Half 2023
Page 14 of 16
Note 4 - Operating expenses
1st half of
1st half of
Full year
Amounts in DKK 1000s
2023
2022
2022
Operating expenses, investment properties
23,149
20,116
41,630
Operating expenses, other services
3,563
3,200
6,976
26,713
23,316
48,606
Note 5 – Financial expenses
1st half of
1st half of
Full year
Amounts in DKK 1000s
2023
2022
2022
Interest expenses, liabilities to credit institutions measured at
amortized cost
22,480
14,200
28,388
Other interest costs and fees
24
658
852
Borrowing costs
-13
653
691
22,491
15,511
29,932
Note 6 - Adjustment to fair value, net
1st half of
1st half of
Full year
Amounts in DKK 1000s
2023
2022
2022
Fair value adjustment, investment properties
-18,587
2,638
36,066
-18,587
2,638
36,066
Note 7 - Realized gains on the sales of investment properties
1st half of
1st half of
Full year
Amounts in DKK 1000s
2023
2022
2022
Sales totals, investment properties
0
153,265
110,772
Book value of properties when sold, etc.
0
-154,000
-115,238
0
-736
-4,466
Note 8 - Tax
The tax expense recognised in the income statement for the accounting period was calculated based on the net profit before tax and an estimated
effective tax rate for the Group for 2023.
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st
Half 2023
Page 15 of 16
Note 9 - Investment properties
30 June
31 December
Amounts in DKK 1000s
2023
2022
Book value as at 1 January
2,521,580
2,615,814
Transfer to/from project holdings
0
0
Cost incurred for improvements
36,011
98,638
Adjustment to fair value, net
-18,587
36,066
Acquisition of properties
0
0
Depreciation of fixed assets
0
0
Retirement on sale
0
-228,938
Transfer to/from Machinery and equipment
0
0
Total book value
2,539,004
2,521,580
Note 10 – Share Capital
30 June
31 December
Amounts in DKK 1000s
2023
2022
Share capital opening period
57,175
67,513
Share capital Reduction
0
-10,338
Share capital closing period
57,175
57,175
The share capital consists of 57,175,572 shares of DKK 1 (31 December 2022: 57,175,572 shares of DKK 1). No shares have special rights. The
shares are fully paid.
Park Street Asset Management Ltd. owns a total of 93.06% (and a corresponding percentage of the votes) of the total nominal share capital of the
Company.
Note 11 - Contingent liabilities and assets
There have been no significant changes in contingent liabilities or assets since the Annual report for 2022, to which reference is made.
Note 12 – Credit Institutions
Park Street | Interim Financial Report 1
st
Half 2023
Page 16 of 16
The evolution of the long and short-term liabilities with credit institutions is specified as follows:
30 June
31 December
2023
2022
Amounts in DKK 1000s
Non-current financial liabilities with credit institutions
1,382,643
1,488,364
Current financial liabilities with credit institutions
20,293
21,107
Financial liabilities with credit institutions at 1 January
1,402,935
1,509,471
Repayment of liabilities to credit institutions
(11,474)
(174,530)
Proceeds from assumption of liabilities to credit institutions
43,000
67,994
Mortgage and bank debt converted into equity
-
Repayment of debt from disposal of assets
(3,773)
Accrued financial expenses
-9,944
-
Financial liabilities with credit institutions end of period
1,420,745
1,402,935
Non-current financial liabilities with credit institutions
1,351,086
1,382,643
Current financial liabilities with credit institutions
69,658
20,293
Total financial liabilities with credit institutions end of period
1,420,745
1,402,935
Note 13 – Subsequent Events
There has been an agreement to sell a property (Stenbukken, Aalborg). There have been no other significant activities or events to report since 30
June 2023.