Annual Report 2023
Company:
CVR no.: 12 93 25 02
LEI no.: 213800VGJC 18MRKMZC33
Registered office: Copenhagen, Denmark
Phone: +45 33 33 93 03
Internet: www.nordicom.dk / www.psnas.com
E-mail: parkstreet@parkstreet.dk
Board of Directors:
Anita Nassar, Chair
Claes Peter Rading
Ohene Aku Kwapong
Pradeep Pattem
Medha Pattem
Management:
CEO Pradeep Pattem
Auditor:
PriceWaterhouseCoopers Statsautoriseret Revisionspartnerselskab
Annual General Meeting:
Annual General Meeting to be held on 26th April 2024 at 14:00 at Svanevej 12, 2400 Copenhagen NV, Denmark.
Annual Report 2023
1
Contents
Directors' report 2
Directors' report 2
Subsequent events after 31 December 2023 3
Outlook and strategy for 2024 4
Financial Highlights 25
Financial Results 26
Risk Factors 30
Statutory Report CSR 31
Legal requirements for Corporate Governance 32
Statutory report on diversity in management 32
Management composition and remuneration 33
Board of Directors and Management 33
Shareholder structure 36
Group structure as of 31 December 2023 37
Statements 38
Statement by Board of Directors and Management 38
Independent auditors report 39
Consolidated Financial statements 45
Income statement 46
Statement of comprehensive income 47
Statement of financial position 48
Statement of equity 49
Statement of cash flows 50
Notes 51
Annual accounts for Park Street A/S 81
Income statement 82
Statement of comprehensive income 83
Statement of financial position as of 31 December 2023 84
Statement of equity 85
Statement of cash flows 86
Notes 87
Property Overview 102
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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 2023
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 2023 an EBVAT (profit excluding value adjustments and tax) of DKK 41.4 million (2022:DKK 42.9 million), as compared to
expectations of DKK 45-50 million (published in the Park Street Interim Report Half Year 2023 results announcement in Aug 2023), 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 in-
crease in energy costs related to vacant units.
We expect the EBVAT for 2024 to be DKK 30-40 million 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 2023 is DKK 121.9 million (2022: DKK 104.7 million), equivalent to a increase of DKK 17.2 million. The increase in gross
profit is primarily due to rental income (DKK 9.2 million) and an decrease in Opex of DKK 4.4 million, driven by increase in R&M, Clean-
ing services and losses from tenants.
▪ The Group's overheads were DKK 28.1 million in 2023 against DKK 31.8 million in 2022. The decrease of DKK 3.7 million is caused by
a savings in employee cost and depreciation.
▪ Net financial items amount to DKK –52.4 million in 2023 against DKK -29.9 million in 2022, representing a negative change of DKK 22.5
million driven by an increase in interest costs due to an increase in the debt in 2023 with financial institutions including development
loan for Pulse N with higher margins interest rates.
The decrease in the Net Result for the period from DKK 55 million in 2022 to DKK –24.2 million in 2023 is due to the following effects:
▪ Fair value adjustment in 2023 with a net of DKK –73.8 million while the fair value adjustment in 2022 had a net effect of DKK 36.6 mil-
lion. In both periods an evaluation of the domicile and investment properties have been made adjusting the yield and the estimated prof-
it and loss by the entire portfolio of Park Street A/S and subsidiaries.
The Group's equity as at 31 December 2023 was DKK 1,060 million, compared to DKK 1,087 million as at 31 December 2022. The decline in
equity is due to the loss during the year.
The operation of the Group's properties in 2023 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 invest-
ment properties has decreased to 16.34% in 2023 (20.47% in 2022) driven by Storage 41.92% in 2023 (53.54% in 2022) while it has increased for
Retail 28.64% in 2023 (13.67% in 2022) and Office 18.51% in 2023 (17.46% in 2022).
Property acquisitions and sales
In 2023, Park Street sold the following properties and plots:
▪ Residential building in Dæmningen, Vejle
▪ Retail building in Stenbukken, Aalborg
▪ Residential building in Møllergade 1, Svendborg
Organisation
Since April of 2023 when the Annual General Meeting of the Company took place the Board of Directors of Park Street consists of Pradeep Pat-
tem, Ohene Aku Kwapong, Anita Nassar, Medha Pattem and Claes Peter Rading.
The number of employees of Park Street (parent company) were 9 by the end of 2023, against 18 at the start of the year.
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Subsequent events after 31 December 2023
Park Street has sold three assets (Project NV), viz., Hejrevej 26-28 (Hejrevej), Hejrevej 30, (Hejrevej), and Svanavej 12, (Ømevej) to a total
amount of DKK 270 Million.
From the balance sheet date until the date of presentation of this Annual Report no additional events have occurred other than the above men-
tioned which significantly affect the assessment of the annual report.
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Park Street – Journey to here
Park Street was setup in 2014 to identify and invest in Real Estate opportunities – in particular, assets embedded in capital structure
challenges or with value-add potential.
Park Street invested across Europe (UK, Germany, Norway, Spain etc.) before the acquisition of Nordicom portfolio in Denmark in
2017.
The portfolio of assets are now concentrated in Denmark with assets across sectors: Residential, Offices, Hotels and Retail, in the
form of Park Street A/S.
Current challenging CRE market across Europe creates an opportunity for Park Street's strategy to diversify into new opportunities
and to rebalance its portfolio.
Our strategy in 2024 will aim for a bold shift towards creating distinct Capital and Business strategy for each part of our current
portfolio.
A simplified company and portfolio structure will facilitate new capital, financing and focused asset management – we will take steps
towards implementing this.
Retail assets in Aalborg, Svendborg and Vejle were sold to regional investors in 2023. Park Street also sold several non-core assets
in 2024, including 3 office assets in Copenhagen.
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Park Street – Our path
We at Park Street share an ambition defined by…
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Our intention is bring together members of team and partners who share some common values and way of working together.
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As we shape our way, the path itself is fulled with several obstacles and inefficiencies - some in our control and some shaped by the
nature of industry. Our attempts to improve things at times lead to disturbing and breaking things which work well - we are learning
from it and working towards better outcomes for our tenants, buildings, partners and team members. The path so far has made more
aware of Janteloven.
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Park Street – Way forward
Park Street A/S will seek Board and Shareholder approval to delist within 2024, subject to Nasdaq approval.
Park Street will aim to allocate capital with a clean split of corporate structure and seek further opportunities across:
1. Stable Core Portfolio
• Low LTV (60%) long term debt
• High occupancy diversified leases
• 14%+ Return of Equity
• 8%+ dividend potential
• 23 Asset from our current portfolio
2. Pulse Living
• Living Spaces for young professionals
• Develop, Manage and Partner across Europe
• 2 Assets from our current portfolio and existing pulse platform to be further scaled
3. Spark Spaces
• Create Work Live Play environment
• 2 Assets from our current portfolio seed this opportunity
• Key area to identify new opportunities requiring new capital and design / asset management.
4. Other Assets
• Park Street will retain 2 Hotels and 4 project sites for the long run.
• 8 remaining non-core assets will be aimed to be disposed within 2024.
*The Portfolio Value excludes the properties which have been sold in 2024.
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Stable
Portfolio
Park Street/ Director’s report
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Stable Core Portfolio
- Maintain and selectively rebalance the portfolio with following characteristics
• Low LTV (60%) long term debt
• High occupancy diversified leases
• 14%+ Return of Equity
• 8%+ dividend potential
• 23 Asset from our current portfolio
- Develop long term partnerships with Mortgage Institutions and capital
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Largest 20 aggregated tenants cover 75% of total current rent
5,1
1. Danish Government is 20% of rent in this portfolio across four locations in Kolding, Svendborg and
Næstved.
2. Grocery Retail includes tenants as Salling Group, LIDL and Rema 1000 across 4 locations.
3. Office tenants including Tesla, GLS, 9Altitudes is 20% of the rent.
4. The remaining 40% rent is across a diversified portfolio of over 100 tenants.
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• Pulse Living is focused in shaping a vibrant living environment for young professionals' platform.
• A scalable design, development and community development platform is shaped and tested at Pulse Nør-
rebro and Østerbro.
• Pulse Living is focused in shaping a vibrant living environment for young professionals' platform.
• A scalable design, development and community development platform is shaped and tested at Pulse Nørrebro and Øster-
bro.
• Assets in the sector a both immense interest and fit for long term institutional capital.
• Pulse Living will aim to scale up the platform with stable long-term capital with its focus on further developing a tech driven
platform and creating vibrant connected communities.
2023: First Pulse N resident gathering
2022: Pulse N project construction kicks off
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Pulse Living: Pulse N
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Pulse Living: Pulse O
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• Globally city planning is shifting towards creating vibrant urban area with a community shaped by work areas, living spac-
es and entertainment spaces.
• Park Street sees immense opportunity to work with local municipality of Odense and Glostrup to develop such spaces
across its two assets in the area.
• Initial focus would be to fill the spaces of current building while planning towards a larger plan for connected living spaces.
• Park Street will allocate capital for brining life to current buildings and over next years seek to partner with long term capi-
tal for future developments / additions.
Spark Spaces: 2G Glostrup
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Spaces: 2G Glostru
Spark Spaces: Dannebrogsgade vision
Park Street/ Director’s report
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21
Other
Portfolio
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Pulse Hotels
• Hotel Prindsen is an exceptional property with several centuries of history as a hotel.
• Park Street will seek to reposition the hotel as a luxury destination in the long run once the current lease concludes in
2030.
• Ballerup hotel is a high performing hotel with a stable management contract.
• Park Street has no plans for additional capital to this segment this year.
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Projects
• Park Street owns 2 significant project assets in Taastrup and in Vejle.
• Pulse T will be initiated as a Pulse Living project once standalone Financing and Capital is obtained.
• Building permit and design finalization will be concluded for Pulse T.
• Park Street will work with Vejle Kommune to shape the design/planning for long term development of Sjellansgade proper-
ty.
• All land and project assets are with no or minimal debt currently and any new investment will be done with a standalone
capital and financing with partners.
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Projects: Pulse T and Sjællandsgade
Park Street/ Director’s report
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Financial Highlights
Key figures
Amounts in DKK 1000s
2023
2022
2021
2020
2019
Income statement
Rental income
145,503
136,348
124,328
126,903
147,518
Total net sales
166,142
153,281
158,264
172,669
203,166
Gross profit
121,915
104,675
117,418
124,979
150,093
Result from primary operations
-34,917
74,499
187,225
187,929
146,021
Financial items
-52,424
-29,932
-25,881
-25,757
-29,105
Earnings before value adjustments and tax (EBVAT)
41,369
42,898
56,866
69,983
83,223
Result for the period
-24,245
54,980
145,459
145,491
115,053
Statement of financial position
Investment properties
2,436,714
2,521,581
2,615,015
2,462,633
2,477,995
Investments in property, plant and equipment
65,284
-15,061
25,803
36,991
19,259
Balance sheet total
2,716,690
2,807,465
3,020,749
2,723,067
2,772,843
Interest-bearing debt
1,335,662
1,402,935
1,509,471
1,405,024
1,633,364
Total equity
1,059,959
1,087,024
1,217,038
1,071,946
931,133
Statement of cash flows
Cash flows from operations
50,742
40,219
57,999
61,966
92,856
Cash flows from investment
208
116,508
-17,777
137,919
-125,487
Cash flows from financing
-47,274
-290,015
104,447
-238,341
39,927
Other disclosures
Non-current liabilities as a proportion of total liabilities (%)
95.2
95.6
95.7
94.1
89.7
Share capital
57,175
57,175
67,513
67,513
67,513
Share price, end of period (DKK)
7.70
13.90
14.10
10.00
6.65
Share price change in points
-6.20
-0.20
4.10
3.35
-0.05
Dividend per share
0.0
0.0
0.0
0.0
0.0
Number of employees in the Group (average)
26
26
32
Financial ratios
2023
2022
2021
2020
2019
Return on property portfolio (% p.a.)
4.6
3.9
4.3
4.7
5.8
Average loan rate (% p.a.)
3.8
2.1
1.8
1.8
1.8
Return margin on property portfolio (% p.a.)
0.8
1.8
2.5
2.9
4.0
Return on equity (%)
-2.3
5.1
11.9
13.6
12.4
Equity ratio (%)
39.0
38.7
40.3
39.4
33.6
Net asset value per share, end of period (DKK)
18.5
19.0
18.0
15.9
13.8
Earnings per share (avg. Number of shares) (DKK)
-0.4
1.1
2.2
2.2
1.7
Dividend yield (%)
0.0
0.0
0.0
0.0
0.0
Share Price/net asset value, end of period
0.4
0.3
0.4
0.4
0.5
Cash flow per share (DKK)
0.9
0.7
0.9
0.9
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 2023.
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Financial Results
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 2023 is composed of all the Group's 40 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
2023
2022
Zealand
1,902
78%
1.876
74%
Fyn
220
9%
233
9%
Jutland
314
13%
413
17%
Total
2.436
2.522
The annual rent per square meter (in DKK) for the year 2023 in the aforementioned regions is, Zealand – 1,257; Fyn – 873, Jutland – 801.
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The breakdown by activity based the property value is split as follows:
Amount in Million DKK
2023
2022
Residential
878
36%
479
17%
Residential Project
175
7%
511
20%
Office
525
22%
629
25%
Retail
729
30%
824
33%
Hotel
97
4%
99
4%
Storage
32
1%
24
1%
Total
2.436
2.522
The following table shows the calculated average vacancy divided by property types:
Average vacancy in %
2023
2022
Retail
28.64
13.67
Office
18.51
17.46
Residential
8.88
8.83
Storage
41.92
53.54
Hotel
0.00
0.00
Total
16.34
20.47
The following table shows the calculated average gross rent obtained divided by property types on properties held at 31 December 2023:
Avg. gross rent per sqm p.a. (DKK)
2023
2022
Retail
1,142
1,058
Office
934
1,110
Residential
2,371
2,059
Storage
403
412
Hotel
1,711
1,678
Total
1,144
1,136
Park Street/ Director’s report
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Consolidated Financial Review
PROFIT AND LOSS
Park Street's Net Result is DKK -24.2 million for 2023 (2022: DKK 55 million), equivalent to a change of DKK 79.2 million in relation to 2022.
As mentioned above the EBVAT in 2023 is DKK 41.4 million (2022: DKK 42.9 million), which is DKK 1.5 million lower than the one achieved in
2022. The reduction is primarily driven by an increase in the financial expenses (DKK –22.5 million), due to an increase in the average loan rate to
3.8% p.a. (2022: 2.1% p.a.) and primarily driven by the sale of properties, intentional vacancy to initiate residential projects and a delay on filling
vacancies. This has partially been offset by an increase in rental income (DKK 7.2 million).
The Net Result for the period is DKK –24.2 million (2022: DKK 55 million) is due to fair value adjustment in 2023 with a net of DKK -73.8 million
while the fair value adjustment in 2022 had a net effect of DKK 36.1 million. To finalize, the effect of the Tax on profit in 2023 is DKK 10.7 million
(2022: DKK -19.5 million) due to a significant reduction in fair value adjustments.
BALANCE SHEET
Park Street's Net Assets as at 31 December 2023 were DKK 2,716.7 million, a decrease of DKK 72.7 million on the balance sheet total at 31
December 2022. The decline is mainly due to sale of investment properties leading to a reduction of DKK 84.8 million and an increase in current
assets of DKK 2 million (from DKK 78.6 million at 31 December 2022 to DKK 80.6 million at 31 December 2023) due to proceeds from sale of
investment properties, financing and re-financing activities. There was a negative revaluation of investment and domicile properties of DKK 72
million. Non-current assets were DKK 2,636.1 million at 31 December 2023 (2022: DKK 2,728.8 million).
The Group's equity as at 31 December 2023 was DKK 1,060 million, compared to DKK 1,087 million as at 31 December 2022. The decline in the
Group's equity is mainly due to the losses for the period worth DKK 24.2 million.
Liabilities to credit institutions were DKK 1,355.7 million as at 31 December 2023 (31 December 2022: DKK 1,402.9 million), consisting of DKK
1,332.7 million (98%) for non-current liabilities and DKK 23 million (2%) for current liabilities. In 2023, financial liabilities were decreased by DKK
47.3 million driven by decrease in debt and amortization repayments to credit institutions.
CASH FLOWS FOR 2023
Cash flows from operating activities for 2023 were DKK 50.7 million (2022: DKK 40.2 million), equivalent to an increase of DKK 10.5 million in
relation to the same period last year. The increase is primarily due to increase in operating capital and operating profit.
Cash flows from investing activities for 2023 were DKK 208 thousand (2022: DKK 116.5 million). Cash flows from investing activities decreased
compared to the previous year due to lesser sale of assets in 2023 as compared to 2022 (2023: DKK 76.4 million, 2022: DKK 216.2 million). There
was higher improvements made to investment properties of DKK –78.2 million (2022: DKK –99 million).
Cash flows from financing activities for 2023 were DKK -47.3 million (2022: DKK –290 million) mainly driven by the repurchase of shares of DKK
183.5 million in year 2022 and repayments to credit institutions of DKK 90 million.
The Group's liquid assets amounted to DKK 38.2 million at 31 December 2023 against DKK 34.5 million as at 31 December 2022.
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.
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Parent company Park Street A/S
For the parent company Park Street A / S, profit before tax amounts to DKK –38.5 million in 2023 (2022: DKK 79.5 million).
The parent company's profit and loss before tax is affected by an increase of the retail income of DKK 2 million (2022: DKK 32 million).
Parent company equity as of 31 December 2023 amounts to DKK 1,060 Million (31 December 2022: DKK 1,087 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 27.
Other financial risks
Park Street financial risks are described in the consolidated financial statements, Note 27 and includes a description of the following compo-
nents:
▪ Liquidity risk
• Refinancing risk
• Liquidity risk management
▪ Interest rate risk.
▪ Credit risk.
▪ Capital management.
Refer to the information in Note 27.
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.
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Property value is influenced by several factors, including a particular value sensitivity to fluctuations in the following parameters:
i. Market rent
ii. Vacancy
iii. Yield
Estimated changes in the properties' fair value changes of the parameters above are disclosed in note 1 to the consolidated financial statements.
Market Rent
Park 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 re-
quirements 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 nec-
essary, can only be leased at lower rent level than expected. In addition, vacancy rates are affected by the general economic situation in the area
where the individual property is situated.
Maintenance
The basis for obtaining rental income is, of course, that Park Street can offer leases that meet the expectations and requirements of the tenants,
including a satisfactory maintenance condition for the property.
Lack of maintenance of properties therefore creates a risk to Park Street. Lack of maintenance can be due to many conditions, such as structural
deficiencies, unforeseen wreckage, vandalism, extreme weather conditions, etc. The company prepares long term maintenance budgets and
carries out the maintenance work necessary to maintain a satisfactory maintenance condition on the properties.
Sales of properties
Park Street sells properties that are suitable to sell. The selling price is naturally linked to uncertainty as it depends on the actual negotiation situa-
tion at the time of sale and is also influenced by a number of other factors, including the rental income of the property, the general interest rate
level and market conditions at the time of sale.
Errors and deficiencies regarding rebuilding and newbuilding
When rebuilding the existing properties of the Group, or in the case of new construction, there is a risk of malfunctioning. Park Street ensures
against this through contracts with the Group's suppliers (contractors, etc.) who will be required to correct any deficiencies. In cases where suppli-
ers have gone bankrupt or for some reason cannot fill their obligations, Park Street may, however, have to rectify defects at your own expense,
provided there is no guarantee or other security from the suppliers.
Other risks
Other risks can be divided into the following categories:
▪ Insurance risks.
▪ Tax risks.
▪ Legal risks.
▪ IT risks.
Insurance risks
Park Street subscribes to statutory insurance and insurance policies that are deemed to be relevant and customary. The Group regularly conducts
an insurance review with the assistance of an insurance specialist. Based on the latest report on the company’s insurance coverage, management
believes that Park Street has sufficient insurance coverage.
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Tax risks
Changes in tax legislation may affect Park Street's fiscal situation.
Legal risks
Park Street regularly enters into a number of agreements, including agreements concerning the operation of properties. The agreements involve
opportunities and risks, which are assessed and hedged in connection with the conclusion of the agreements.
IT risks
Park Street uses IT to a considerable extent and are thus exposed to operational disruption of the established IT safety. This can cause operating
and financial losses. Park Street constantly works to ensure a high level of IT security, which is currently estimated to be the case.
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▪ Data ethics: The Park Street Group does not have a formalized policy on data ethics. Park Street only processes data for business pur-
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/
1 1 1
0 0 0
0 0 0
5 5 5
40 40 20
40 40 20
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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
designed 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 ccutive 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 viola-
tions of the applicable policies, manuals and procedures or other material deviations are communicated upwards in the organization in accordance
with relevant policies and instructions. Any weaknesses, omissions and violations are reported to the Executive Board.
The auditors elected by the Annual General Meeting account for any material weaknesses in the internal control systems related to financial report-
ing in the Auditor’s Long-form Report to the Board of Directors. Minor irregularities are reported in Management Letters to the Executive Board.
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 begin-
ning, number
of shares
Share buy in
the year,
number of
shares
Shareholding
at the end of
the year
Independence
Sex
Board of Directors
Anita Nassar(*)(****)
2016
2024
62
0
0
0
Independent
F
Pradeep Pattem (**)(***)
2016
2024
47
6,722,484
0
6,722,484
1)
Not Independent
M
Ohene Kwapong
2016
2024
63
0
0
0
Independent
M
Medha Pattem
2023
2024
46
0
0
0
Not Independent
F
Claes Peter Rading(*)
2021
2024
61
0
0
0
Independent
M
(*) Anita Nassar holds the position of chairman of the Board. Claes Peter Rading is the chairman of the Audit Committee.
(**) Pradeep Pattem holds the position of CEO of the Company
(***) Pradeep Pattem holds controlling rights in Park Street Nordac Sarl through Park Street Asset Management
(****) Anita Nassar hold shares in Park Street Nordac Sarl without controlling rights
1) Acquired via Park Street Asset Management Ltd.
Remuneration to the Board of Directors and Executive Board
The purpose of the Group's remuneration, including any incentive remuneration, is to attract and retain the group's management skills and pro-
mote the management incentive to realize Park Street’s objectives and create value in and for the company.
A remuneration policy has been prepared that describes the guidelines for defining and approving remuneration for the members of the Board of
Directors and the Executive Board. The remuneration policy approved at the company's general meeting and is available on www.nordicom.dk and
www.psnas.com.
Park Street/ Director’s report
34
The board members receive a fixed monthly fee. The Chairman receives DKK 250,000 annually, the Vice Chairman of the Board (currently va-
cant) receives DKK 150,000 annually, and other Board members receive DKK 100,000 annually. In addition, the Chairman of the Audit Committee
receives DKK 75,000 annually and other members of the Audit Committee receive DKK 50,000 annually.
The remuneration for the members of the Board of Directors in 2023 is shown in Note 5 of the consolidated financial statements.
Salary and employment conditions for the Executive Board are set at least once a year by the Board of Directors. The salary consists of fixed
salary, without bonus and pension. In addition, the Executive Board receives free telephone, etc. Total wage package is composed so that the fees
are set at a competitive level, taking into account the competencies and efforts of the Executive Member and the results achieved. Reference is
made to Note 5 of the consolidated accounts regarding remuneration to the Executive Board.
Board of Directors and Management
Pradeep Pattem (Indian Citizen), Director and CEO
Pradeep Pattem is a graduate engineer from the Delhi Institute of Technology and has an MBA from the Indian Institute of Management, Calcutta.
As the founder and CEO of Park Street Advisors Limited, Pradeep has advised and implemented investments in across Europe since its estab-
lishment in 2014. Pradeep previously had a position as Managing Director, Head of Credit & Mortgage Markets for Europe and Asia in the Royal
Bank of Scotland (RBS). In connection with the employment in RBS, Pradeep also held senior positions as a member of the Global Trading Man-
agement Committee, the Chairman of the Strategic Investments Committee and the Chair of Credit & Mortgage Risk and Compliance Committee.
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.
Director positions
Ecobank Ghana, Risk and Governance Committees.
The Practice School, an executive management skills company.
Trustee, Head of State Award Scheme – Ghana.
Park Street/ Director’s report
35
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
Medha Pattem (UK citizen)
Medha Pattem is a graduate engineer from the Osmania University and has MS from the Rensselaer Polytechnic Institute, Troy, NY.
Director positions:
Sthenos International Ltd.
Park Street Advisors Ltd.
Park Street Asset Management Ltd.
Floorstax Ltd.
Swindon Ground Lease Ltd.
Xplore Markets Ltd.
India Growth Capital Ltd.
Thermopads UK Ltd.
Park Street/ Director’s report
36
Shareholder structure
Shareholders above 5%
In percent
Park Street Asset Management Ltd.
93.5%
The number of registered shareholders amounts as of 31 December 2023 to 789 pcs. (31 December 2022: 865 pcs.). The registered shareholders
represent per 31 December 2023 99% of the share capital (31 December 2022: 99%).
All Park Street A / S shares are listed on Nasdaq Copenhagen and are part of the Small Cap segment. The share price ended 31 December 2023
at price 7.70 (31 December 2022: 13.9), which is a decrease of 6.2 points in relation to the share price per share as of 31 December 2022.
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 22 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 2023.
Investor Relations
It is Park Street's policy to inform quickly about relevant matters.
The Executive Board informs shareholders and investors according to guidelines agreed with the Board, and it is the goal to meet the information
obligations of Nasdaq Copenhagen each time. It is part of Park Street's information policy to:
▪ publish interim reports,
▪ issue annual reports, and
▪ provide quick responses to inquiries to the group.
Share capital
DKK 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
37
Stock exchange announcements made in 2024 & 2023
Date
Title
11-03-2024
Park Street A/S – Share buyback program 2024
05-03-2024
Park Street A/S : 2024 Strategy
28-02-2024
Park Street A/S – Share buyback program 2024
22-09-2023
Park Street A/S - Park Street Interim Report Half Year 2023 - Corrections
22-09-2023
Park Street A/S - Park Street Interim Report Half Year 2023
24-08-2023
Park Street A/S - Park Street publishes Interim Report Half Year 2023
24-08-2023
Park Street A/S - Park Street Interim Report Half Year 2023
28-04-2023
Park Street announces results of Annual General Meeting 2023
05-04-2023
Park Street A/S : Annual report 2022
05-04-2023
Park Street A/S : Annual General Meeting
05-04-2023
Park Street A/S : Publishes Annual Report 2022
02-03-2023
Park Street A/S : 2023 Strategy
Financial Calendar
04-04-2024
Annual Report 2023
26-04-2024
Annual General Meeting
More info
Further information on company and shareholder matters and the Group's activities can be found on Park Street's website
http://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
The Group structure at 31 December 2023
The Group structure at 31 December 2023 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 11 of the parent company's financial statements. All subsidiaries are fully consolidated in the consol-
idated financial statements of Park Street A/S.
Park Street/ Statements
38
Statement by Board of Directors and Management
Management
Board of Directors
Park Street/ Independent Auditor’s Report
39
Independent Auditor’s Report
Report on the audit of the Financial Statements
Park Street/ Independent Auditor’s Report
40
Independent Auditor’s Report (continued)
Park Street/ Independent Auditor’s Report
41
Park Street/ Independent Auditor’s Report
42
Independent Auditor’s Report (continued)
CVR no 33 77 12 31
Park Street/ Independent Auditor’s Report
43
Park Street/ Independent Auditor’s Report
44
Park Street/ Independent Auditor’s Report
45
2023
CONSOLIDATED
FINANCIAL STATEMENTS
Park Street | CONSOLIDATED Financial Statements
46
Income statement
Note
Amounts in DKK 1000s
2023
2022
3
Net sales
4
Operating expenses
-44,227
-48,606
Gross profit
5
Employee benefit expenses
-15,528
-17,231
Other expenses, by nature
-10,039
-10,936
7
Depreciation, amortisation and impairment
-2,556
-3,678
Operating profit (EBIT)
8
Financial expenses
-52,424
-29,932
Earnings before value adjustments (EBVAT)
9
Adjustment to fair value, net
-73,750
10
Losses realised on the sale of investment properties
-2,535
-4,466
Result before tax
-34,917
11 Tax on profit for the period
-19,518
Result for the period
-24,245
Distributed as follows
Parent's shareholders
-24,245
Result for the period
-24,245
12
Earnings per share, end of period
-0.44
12
Diluted earnings per share, end of period
-0.44
Park Street | CONSOLIDATED Financial Statements
47
Statement of comprehensive income
Note
Amounts in DKK 1000s
2023
2022
Profit for the period
-24,245
Other comprehensive income:
Items that cannot be reclassified to the income statement:
Fair value adjustment of domicile properties
-3,615
Tax on fair value adjustment of domicile properties
-2,420
Other comprehensive income after tax
-2,820
Comprehensive income for the period
-27,065
Distributed as follows
Parent's shareholders
-27,065
Comprehensive income for the period
-27,065
Park Street | CONSOLIDATED Financial Statements
48
Statement of financial position
Note
Amounts in DKK 1000s
2023
2022
ASSETS
Non-current assets
Intangible assets
13
Software
13
Leasehold improvements
Domiciles, 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
24
Current borrowings
Trade and other payables
Deposits
Other liabilities
Total liabilities
Total equity and liabilities
Park Street | CONSOLIDATED Financial Statements
49
Statement of equity
Amounts in DKK 1000s
Share capi-
tal
Revaluation
reserve
Accumulated
profit
Share Pre-
mium
Equity
Total
Statement of equity for 2023:
Equity as at 1 January 2023
Comprehensive income for the period
Profit for the period
-24,245
-24,245
Fair value adjustment of domicile
-3,615
-3,615
Tax on other comprehensive income
Other comprehensive income during the financial year
-2,820
-2,820
Comprehensive income for the period
-2,820
-24,245
-27,065
Transactions with owners
Repurchase own shares
Capital reduction
Total transactions with owners
Other adjustments
Increase/decrease through transfer of depreciation of
revaluedvalue of owner- occupied property
Total other adjustments
-1,566
Equity as at 31 December 2023
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
Capital Reduction
-10,338
-183,488
-183,488
-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
Park Street | CONSOLIDATED Financial Statements
50
Statement of cash flows
Note
Amounts in DKK 1000s
2023
2022
Operating profit (EBIT) 93,792 72,830
Reversal of depreciations and amortisations
Change in operating capital (Note:29)
-4,616
Cash flows concerning primary operations
Financial income received
Financial expenses paid
-52,424
-29,932
Paid Corporate Tax
-1,742
Total cash flow from operating activities
Cash flow from investing activities
Improvements to investment properties
-78,221
-99,024
Sales of investment properties
Purchase of intangible assets
-670
Sale of associates
Total cash flow from investing activities
Cash flow from financing activities
Repurchase own shares
-183,479
Proceeds from assumption of liabilities to credit institutions 42,721 67,994
Repayment of other liabilities to credit institutions
-89,995
-174,530
Total cash flow from financing activities
-47,274
-290,015
Total cash flow for the period 3,676 -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 deposits
Liquid assets at the end of the period
51
Summary
Note 1
Material accounting policy information
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
Disclosure of related parties
Note 31
Subsequent events
Note 32
Accounting policies
52
Notes
Note 1 – Material accounting policy information
53
54
55
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
Note 28 – Non-current operating items, etc.
Amounts in DKK 1000s
2023
2022
Depreciation and amortization
-2,556
-3,678
Profit/loss on sale of operating assets
-2,535
-4,466
Total regulation
-5,091
-8,144
74
75
76
77
78
79
Park Street | Park Street A/S Financial Statements
80
Park Street | Park Street A/S Financial Statements
81
2023
PARK STREET A/S
FINANCIAL STATEMENTS
Park Street | Park Street A/S Financial Statements
82
Income statement
Note
Amounts in DKK 1000s
2023
2022
2
Net sales
95,811
93,549
3
Operating expenses
-22,728
-26,245
Gross profit
73,083
67,304
4
Employee benefit expenses
-10,700
-12,713
Other expenses, by nature
-7,592
-9,331
6
Depreciation, amortisation and impairment
-737
-1,648
Operating profit (EBIT)
54,053
43,611
Financial income subsidiaries
5,840
11,426
7
Financial expenses
-17,248
-8,113
Earnings before value adjustments (EBVAT)
42,645
46,924
8
Income / Loss from subsidiaries
27,099
12,727
9
Adjustment to fair value, net
-105,746
24,374
Gains realised on the sale of investment properties
-2,535
-4,466
Result before tax
-38,536
79,559
10
Tax on profit for the period
11,471
-15,747
Result for the period
-27,065
63,812
Distributed as follows
Parent's shareholders
-27,065
63,812
Result for the period
-27,065
63,812
Earnings per share, end of period
-0.40
0.95
Diluted earnings per share, end of period
-0.40
0.95
Park Street | Park Street A/S Financial Statements
83
Statement of comprehensive income
Note
Amounts in DKK 1000s
2023
2022
Result for the period
-27,065
63,812
Other comprehensive income:
Items that cannot be reclassified to the income statement:
Fair value adjustment of domicile properties
0
0
Tax on fair value adjustment of domicile properties
0
0
Other comprehensive income after tax
0
0
Comprehensive income for the period
-27,065
63,812
Distributed as follows
Parent's shareholders
-27,065
63,812
Comprehensive income for the period
-27,065
63,812
Park Street | Park Street A/S Financial Statements
84
Statement of financial position
Note
Amounts in DKK 1000s
2023
2022
ASSETS
Non-current assets
Intangible assets
Software
0
446
Capitalised Leasing Fees
439
625
439
1,071
Property, plant and equipment
12
Investment properties
1,214,789
1,398,766
13
Machinery and equipment
-124
-45
1,214,665
1,398,721
Financial assets
11
Investment in subsidiaries
492,183
465,332
Investment in associates
0
2,029
Deposits
161
161
492,345
467,522
Total non-current assets
1,707,449
1,867,314
Current assets
14
Intercompany receviables
240,182
212,321
15
Trade and other current receivables
17,903
18,805
Income tax receivable
2,332
2,214
Prepaid expenses and accrued income
0
911
Cash and short-term deposits
14,732
7,167
Total current assets
275,149
241,417
Total assets
1,982,597
2,103,154
Equity
Share capital
57,175
57,175
Share Premium
289,260
289,260
Accumulated profit
713,524
740,589
Total equity
1,059,959
1,087,024
LIABILITIES
Non-current liabilities
16
Deferred tax
233,842
247,723
17
Borrowings
629,465
720,686
Deposits
7,200
1,615
870,508
970,024
Current liabilities
Provisions
400
400
17
Current borrowings
22,567
20,347
Trade and other payables
7,079
-1,804
Deposits
20,675
25,108
Other liabilities
1,410
2,055
51,131
46,106
Total liabilities
922,639
1,016,130
Total equity and liabilities
1,982,597
2,103,154
Park Street | Park Street A/S Financial Statements
85
Statement of equity
Amounts in DKK 1000s
Share
capital
Revaluation
reserve
Accumulated
profit
Share
Premium
Equity
Total
Statement of equity for 2023:
Equity as at 1 January 2023
57,175
0
740,589
289,260
1,087,024
Comprehensive income for the period
Result for the period
0
0
-27,065
0
-27,065
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
-27,065
0
- 27,065
Transactions with owners
Repurchase own shares
0
0
0
0
0
Capital reduction
0
0
0
0
0
Total transactions with owners
0
0
0
0
0
Equity as at 31 December 2023
57,175
0
713,524
289,260
1,059,959
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
Result for the period
0
0
63,812
0
63,812
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
Cash reduction
-10,338
0
0
0
-10,388
Total transactions with owners
-10,338
0
-183,488
0
-193,826
Other adjustments
Depreciation of revalued value of domiciles
Equity as at 31 December 2022
57,175
0
740,589
289,260
1,087,024
Park Street | Park Street A/S Financial Statements
86
Statement of cash flows
Note
Amounts in DKK 1000s
2023
2022
Operating profit (EBIT)
54,063
43,611
Reversal of depreciations and amortisations
737
1,648
Change in other operating capital
-31,417
-41,641
Cash flows concerning primary operations
23,373
3,618
Financial expenses paid
-17,248
-8,113
Paid Corporate Tax
0
-3,079
Total cash flow from operating activities
6,125
-7,572
Cash flow from investing activities
Improvements to investment properties
14,040
-6,313
Sales of investment properties
76,400
225,505
Total cash flow from investing activities
90,440
219,192
Cash flow from financing activities
Repurchase Own Shares
0
-183,488
Repayment of liabilities to credit institutions
-30,728
-29,524
Repayment of debt from disposal of assets
-58,272
-144,092
Total cash flow from financing activities
-89,000
-357,104
Total cash flow for the period
7,565
-145,485
Liquid assets as at 1 January
7,167
152,652
Liquid assets at the end of the period
14,732
7,167
Liquid assets at the end of the period
Cash and short term deposit
14,732
7,167
Liquid assets at the end of the period
14,732
7,167
Park Street | Property Overview
87
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
Intercompany receviables
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
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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 23 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
2023
2022
Rental income
83,877
80,543
Sales of other services
11,934
12,551
Total sales of services
95,811
93,094
Interest income, mortgages and instruments of debt
0
455
95,811
93,549
Note 3 - Operating expenses
Amounts in DKK 1000s
2023
2022
Operating expenses, investment properties
22,723
26.245
Operating expenses, other services
5
0
22,728
26,245
Note 4 – Employee benefits expenses
Amounts in DKK 1000s
2023
2022
Salary
9,770
11,595
Contribution-based pensions
(*)
486
677
Other social security costs
80
57
Other staff costs
364
385
10,700
12,713
Average number of employ-
ees
10
17
(*) 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.
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89
Note 5 – Auditor’s fees
The auditor appointed in 2023 and 2022 is PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab. Their fees can be specified as
follows:
Amounts in DKK 1000s
2023
2022
Statutory audit
811
588
Tax and VAT advice
243
334
1,031
922
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
2023
2022
Depreciation, software
632
1,464
Depreciation, inventory and fixed
assets
105
185
737
1,648
Note 7 – Financial Expenses
Amounts in DKK 1000s
2023
2022
Interest expenses, liabilities to credit institutions measured at amortized cost
17,187
6,781
Other interest costs and fees
74
640
Borrowing costs
-13
691
17,248
8,113
Note 7 (a) - Financial Income
Amounts in DKK 1000s
2023
2022
Interest income, Intercompany
5,840
11,426
5,840
11,426
Note 8 – Year’s result in subsidiary companies
Amounts in DKK 1000s
2023
2022
Income / Loss from subsidiaries
27,099
12,727
27,099
12,727
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Note 9 – Adjustments to fair value, net
Amounts in DKK 1000s
2023
2022
Fair value adjustment, investment properties
-105,746
24,374
-105,746
24,374
Note 10 – Tax on profit for the year and other comprehensive income
Amounts in DKK 1000s
2023
2022
Annual tax can be divided as follows:
Current tax on profit of the year
0
0
Current tax adjustment (Dom)
0
0
Changes in deferred taxes
-11,471
21,565
Changes in deferred taxes previous years
0
-5,818
-11,471
15,747
Tax on profit for the year can be explained as follows:
Estimated tax at a tax rate of 22%
-8,478
17,503
Adjustment of deferred tax assets and liabilities
-2,993
-1,756
-11,471
15,747
Effective tax rate
29.77%
19.79%
Amounts in DKK 1000s
2023
2022
Tax on other comprehensive income:
Tax on fair value adjustment of domicile properties
0
0
0
0
Note 11 – Investment in subsidiaries
See accounting policies on note 23 of the Parent’s Financial Statements.
Receivables considered part of the overall investment in the subsidiary are written down by any remaining negative equity value.
Amounts in DKK 1000s
2023
2022
Cost price at 1 January
404,144
404,144
Additions
0
0
Cost price at 31 December
404,144
404,144
Value adjustments at 1 January
62,426
49,699
Share of profit/loss for the year after tax
27,099
12,727
Value adjustments at 31 December
89,525
62,426
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91
Carrying amount at 1 January
465,532
452,291
Investments with negative equity offset against trade receivables
-1,486
-1,239
Carrying amount at 31 December
492,183
465,332
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 2023 the sales processes is going on for 3 office properties regarding investment properties.
Amounts in DKK 1000s
2023
2022
Balance at 1 of January
1,398,722
1,596,596
Costs incurred for improvements
0
6,313
Adjustment to fair value, net
-105,746
24,374
Additions fixed assests
0
561
Depreciation of fixed assets
0
-185
Retirement on sale
-78,187
-228,894
Balance at 31 December
1,214,789
1,398,766
Fair value hierarchy for investment:
Amounts in DKK 1000s
Level 1
Level 2
Level 3
Total
At 31 December 2023:
Investment properties
0
0
1,214,789
1,214,789
0
0
1,214,789
1,214,789
At 31 December 2022:
Investment properties
0
0
1,398,766
1,398,766
0
0
1,398,766
1,398,766
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.
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92
During 2023 and 2022 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
2023
2022
Rental income from investment properties
83,877
80,543
Operating expenses, investment properties
-22,723
-26,245
Net income from investment properties
61,154
54,298
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
2023
2022
Remaining termination within 1 year from the balance sheet date
583
26,972
Remaining termination between 1 and 5 years from the balance sheet date
916
70,238
Remaining termination after 5 years from the balance sheet date
56,442
57,607
57,941
154,817
The accumulated minimum lease payments for commercial rentals during the non- cancellable period can be shown as follows:
Amounts in DKK 1000s
2023
2022
Before 1 Year
37,263
33,646
Before 2 Years
10,095
13,544
Before 3 years
4,740
12,069
Before 4 years
2,330
1,861
Before 5 years
0
1,694
After 5 years
16,167
11,462
Total accumulated minimum lease
payments
70,594
74,277
Note 13 – Machinery and equipment
Amounts in DKK 1000s
IT Equipment
Appliances
Total Machinery and
Equipment
Cost at 1 of January 2023
4,150
8,424
12,574
Additions during the year
0
0
0
Disposals during the year
0
0
0
Cost at 31 December 2023
4,150
8,424
12,574
Amortization at 1 January 2023
-4,141
-8,478
-12,619
Amortization during the year
-36
-43
-79
Amortization at 31 December 2023
-4,177
-8,521
-12,698
Balance at 31 December 2023
-27
-97
-124
Cost at 1 of January 2022
4,150
8,424
12,574
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93
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
-83
-93
Amortization at 31 December 2022
-4,141
-8,478
-12,619
Balance at 31 December 2022
9
-54
-45
Note 14 – Intercompany receviables
Park Street has the following receviables:
Amounts in DKK 1000s
2023
2022
Intercompany receviables at 1 January
212,321
212,579
Repayment of the year
0
-258
Additions - Intercompany loans
27,861
0
Financial assets at amortized cost at 31 December
240,182
212,321
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 (175 million utilized at 31.12.22) 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 (5 million uti-
lized at 31.12.22) with an annual interest rate of 7.5% payable at the maturity date of the loan.
Note 15 – Trade and other current receivables
Amounts in DKK 1000s
2023
2022
Receivable Rental Income
8,003
4,607
Deposited funds in banks
383
8,272
Other Receivables
9,517
5,927
Receivables at 31 December
17,903
18,806
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
2,165
2,444
Additional provisions
0
-277
Reversal
-1
-1
2,164
2,165
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
1,305
276
Between 30 and 90 days
2,278
2,535
Over 90 days
4,420
1,801
8,003
4,612
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.
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94
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
2023
2022
Deferred tax liabilities at 1st of January
247,723
232,087
Correction from previous years
-2,410
0
Recognized in the income statement
-11,471
15,636
Deferred tax liabilities at 31 December
233,842
247,723
Deferred tax is recognized in the balance sheet as follows:
Deferred tax (active)
Deferred tax (liability)
-233,842
-247,723
Deferred tax at 31 December
-233,842
-247,723
Deferred tax recognized in the balance
The calculation of deferred taxes included DKK 28 million relating to tax losses carried forward from Group companies. Based on budget account-
ing and tax profits in the period 2024-2027 and deferred tax liabilities, it is estimated that all tax losses (tax base) will be realized, which is includ-
ed in the calculation of deferred tax DKK 237.8 million (taxable value) per 31 December 2023 (2022: DKK 247.7 million).
Amounts in DKK 1000s
Balance 1/1
Recognized
in the income
statement
Recognized
in another
comprehensive
income
Balance 31/12
2023
Software
98
-312
0
-214
Investment and residential properties
277,897
-17,707
0
260,190
Fixtures and fittings
-388
25
0
-363
Receivables
-612
0
0
-612
Provisions
-88
-88
0
-176
Credit institutions
1,131
1,910
0
3,041
Tax losses carryforward
-30,315
2,291
0
-28,024
247,723
-13,881
0
233,842
Amounts in DKK 1000s
Balance 1/1
Recognized
in the income
statement
Recognized
in another
comprehensive
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
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
There are no deferred tax assets not recognized in the balance.
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95
Note 17 – Borrowings
Amounts in DKK 1000s
2023
2022
Credit institutions, nominal
657,612
747,142
Market value adjustments
-5,579
-6,110
652,033
741,032
The liabilities are thus included in the balance sheet:
Credit institutions, long-term
629,465
720,686
Credit institutions, short-term
22,567
20,347
652,033
741,032
The Group's loans and credits are distributed as per 31 December as follows:
Liabilities recognized at fair value
Currency
Rate type
Expiry date
2023
2022
Convertible bonds
DKK
Interest-free
10-14 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
2023
2022
Mortgage Debt
DKK
Variable
2-5 years
50,822
64,604
Mortgage Debt
DKK
Variable
6-10 years
0
0
Mortgage Debt
DKK
Variable
11-15 years
596,489
667,824
Mortgage Debt
DKK
Variable
16-20 years
0
0
Carrying amount
647,312
732,428
The nominal amounts stated in the tables represent the amount that Park Street will repay under the loan agreements by the end of these
agreements.
Fixed interest loans stated in the tables indicate that a fixed rate applies until the loans' maturity date or until a new negotiation is made with the
individual bank. Variable interest rates expressed in the tables indicate that the loans have interest rates that are regularly adjusted over the term
of the loans due to fluctuations in market interest rates.
The evolution of the long and short term liabilities with credit institutions is specified follows:
Amounts in DKK 1000s
2023
2022
Non-current financial liabilities
720,686
894,301
Current financial liabilities
20,347
20,347
Financial liabilities with credit institutions at 1 January
741,032
914,648
Repayment of liabilities to credit institutions
-89,000
-173,616
Financial liabilities with credit institutions at 31 December
652,032
741,032
Non-current financial liabilities
629,465
720,686
Current financial liabilities
22,567
20,347
Total financial liabilities with credit institutions at 31 December
652,033
741,032
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96
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 24 of the consolidated financial state-
ments. Information on estimates and judgments related to the determination of fair value of financial liabilities is disclosed in note 1 of the Consoli-
dated Financial Statements. As stated in these notes mortgage and bank debt have been recognized at amortised cost in 2022. No reversal of fair
value adjustments in 2023.
Zero-coupon bonds (former Convertible bonds)
See note 24 in the Consolidated Financial Statements.
Note 18 – Contingent assets and liabilities
Disclosure of collateral
The nominal pledge for the bank debt and mortgage debt given by credit institutions per 31 December, 2023 amount a total of DKK 652 million (31
December 2022: DKK 732 million), the nominal value of the loans amounts a total of DKK 652 million (31 December 2022: DKK 741 million) in the
group's investment properties and domiciles with a book value totalling DKK 1,233 million (31 December 2022: DKK 1,399 million).
The nominal pledge for the bank debt and mortgage debt given by credit institutions per 31 December, 2023 amount a total of DKK 7.4 million (31
December 2022: DKK 7.4 million), in the group's deposited mortgage deeds with a book value totalling DKK 7.4 million (31 December 2022: DKK
7.4 million).
Disclosure of contingent liabilities
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 31 December, 2023.
Lease hire agreements
There are lease hire agreements for cars rental and printers.
2023
2022
Within 1 year from the balance sheet date
10
10
Between 1 and 5 years from the balance sheet date
422
422
After 5 years from the balance sheet date
0
0
Lease hire obligations at 31 December
431
431
Minimum lease payments recognized in the profit and loss account for the year
31
31
Note 19 – Financial risks
Amounts in DKK 1000s
2023
2022
Mortgages and debentures
7,412
7,412
Intercompany loan
157,883
157,883
Financial assets measured at amortized cost
165,296
165,296
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97
Receivables
92,789
60,252
Cash and equivalents
14,732
7,167
Loan and receivables
107,521
67,419
Credit institutions
5,757
5,757
Financial liabilities measured at fair value through profit or loss
5,757
5,757
Credit institutions
652,033
741,032
Deposits
27,876
26,723
Accounts payable
7,079
3,773
Other Debts
881
2,055
Financial liabilities measured at amortized cost
687,868
773,585
Risk management policy
The financial management of the Group is geared towards stabilization and optimization of the Group's operations, while at minimizing the Group's
financial risk exposure. It is part of the Group's policy not to conduct speculative transactions by active use of financial instruments.
The group is due to its activities exposed to various financial risks, including liquidity risk, market risks (primarily interest rate risk) and credit risk.
Liquidity risk
Park Street’s liquidity risk consists on not being able to make regular payments and not being able to provide sufficient liquidity to cover the financ-
ing costs, capital repayment obligations and capital investments. Lack of liquidity may arise from insufficient cash resources and may be adversely
affected by missed payments from Park Street tenants, increased vacancy, repayment of deposits, divestments, unexpected costs and investment
needs. Lack of liquidity may also arise from default of loans signed and in connection with refinancing when existing loan agreements expire or are
terminated.
Cash reserves total at 31 December, 2023 DKK 14.7 million (31 December 2022: DKK 7.2 million). Park Street forecasts that current and gener-
ated liquidity is sufficient to carry out the group's planned activities throughout 2023.
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
2023
Non-derivative financial instruments
Credit institutions
652,033
883,500
75,642
385,618
82,141
340,098
Trade payables
7,079
7,079
0
0
0
0
Deposits
27,876
27,876
14,960
10,583
1,570
764
Other debts
881
881
881
0
0
0
Total
687,868
919,336
91,483
396,201
83,711
340,862
2022
Non-derivative financial instruments
Credit institutions
741,032
751,837
19,409
437,209
64,604
230,615
Trade payables
-2,001
-2,001
0
0
0
0
Deposits
26,723
27,507
14,591
10,583
1,570
764
Other debts
2,055
2,005
2,005
0
0
0
Total
767,810
779,399
36,055
447,792
66,174
231,379
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98
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 31 December, 2023 primarily relate to the following:
▪ Fluctuations in market interest rates on mortgages with variable rates (Cibor6, F2, F3, F5).
▪ Renegotiation of the margin rate applied on the mortgage loans.
▪ Renegotiation of fixed interest rate of bank debt associated with the extension of loans / terms. Fixed rate includes loans, which applies
a fixed rate until the loans' maturity date, to other agreed point in time or until a renegotiation is made with the individual bank.
Park Street’s major interest rate risk is the risk that the financial creditors on short notice increase terms of interest and margin rates. In this
situation, the level of interest and contribution rates depend on negotiations with the financial institutions. The Group's loan portfolio is continu-
ously monitored with a view to optimizing the group's exposure to interest rate risks. Park Street at 31 December, 2023 does not have financial
instruments for interest rate hedging, and the group has limited opportunities to influence the interest rate risk in the current financial situation.
Group's nominal financial debt is specified as follows, based on the type of interest rate that is linked to individual loans:
Type of loan
Nominal (DKK million)
* Weighted interest rate (per annum)
At 31 December, 2023:
Mortgage debt
Cibor6
88
4.26%
Mortgage debt
F2
40
2.60%
Mortgage debt
F3
110
1.28%
Mortgage debt
F5
390
1.15%
Bank debt etc.
Fixed
25
1.15%
Others
Interest-free
0
-
652
2.98%
At 31 December, 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%
The calculated weighted interest rate for all Park Street loans at 31 December 2023 was 2.98% per annum and is based on the latest confirmed
interest rates. The corresponding calculated weighted rate at 31 December 2022 was 1.62% 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
2023
2022
Between 0 and 12 months
76
19
Between 2 and 3 years
386
0
Between 4 and 5 years
82
64
After 5 years
340
668
884
752
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.
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99
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
2023
2022
Variable Interest rate loans:
Effect on income statement
-1.0
-1.0
Effect on equity
-1.0
-1.0
On loans from credit institutions, with ongoing interest rate adjustments resulting from changes in market interest rates, illustrates the table above
that the hypothetical effect on net income and equity as a result of one percentage point increase in interest rates amounts to DKK –1.0 million per
annum (2022 DKK -1.0 million).
Currency risk
The group exposure is very limited to changes in currency rates.
Credit risk
The Group's credit risk is primarily related to:
▪ Lease receivables
▪ Receivables from the sale of properties
▪ Receivables form mortgages
The maximum credit risk for financial assets is reflected in the accounting values of the balance sheet, and taking into account securities
received.
Risks concerning to rental receivables are limited to Park Street’s options to deduct payments from deposits and termination of the covered leases.
Credit risk on receivables arising from the sale of properties is limited, as the transactions are always subject to payment of purchase price and
deposit of the purchase price. With mortgage deeds, the Group has an usual debtor risk, which is reduced by mortgages on properties.
In order to minimize the risk of loss of receivable rent, the tenants' ability to pay prior to entering into leases is assessed to the extent that it is
relevant. In addition, there is usually a requirement for a cash deposit, a guarantee and / or prepaid rent. However, if a tenant is unable to pay, it
may result in loss as well as reduced income due to rental allowance upon relocation, lower future rental income and any additional costs incurred
in connection with refurbishment etc.
Credit risk on receivables at 31 December, 2023, 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 31
December, 2022).
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100
The Group's financial assets and liabilities measured at fair value are classified on the following 3 levels in the fair value hierarchy:
▪ Level 1: Based on listed prices (non-adjusted) on active markets for identical assets or liabilities.
▪ Level 2: Based on inputs other than listed prices that are observable for the asset or liability, either direct (as prices) or indirect
(derived from prices).
▪ Level 3: Based on data that is not observable in the market.
Amounts in DKK 1000s
Carry forward balance
Level 1
Level 1
Level 2
2023
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
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
It is the Group's policy to recognise transfers between the different levels from the time at which an event or change in circumstances entails a
change in the classifications. No transfers were made between levels 1 and 2 in the accounting period.
When calculating the fair value of the Group's liabilities in accordance with level 3 of the fair value hierarchy, a correction is made for the Group's
own credit rating, taking into account the legal status of the liabilities, and the security in the assets measured at fair value. Consequently, no direct
assumptions of discount factors, etc. are included when measuring liabilities to credit institutions in accordance with level 3 of the fair value hierar-
chy.
The table below shows the change in liabilities to credit institutions measured at fair value in the balance sheet based on valuation methods in
which significant inputs are not based on observable market data (level 3):
Amounts in DKK million
2023
2022
Carrying amount per. 1st of January
5,757
5,226
Gains / losses in the income statement
0
531
Balance at 31st of December
5,757
5,757
Gain / loss in the income statement for liabilities held at 31st of December
0
531
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.
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101
Note 20 – Changes in other working capital
Amounts in DKK 1000s
2023
2022
Change in receivables
-26,960
-24,214
Change in deposit
-1,152
2,798
Change in trade payables
-3,305
14,906
Change in total working capital
-31,417
-6,510
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
2023
2022
Other related parties
Intangible assets
0
446
Software expenses
0
1,338
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 acquisi-
tion of subsidiaries, the difference between cost of acquisition and net asset value of the entity acquired is determined at the date of acquisition
after the individual assets and liabilities having been adjusted to fair value (the acquisition method).
The item ”Income (loss) from investment in subsidiaries” in the income statement includes the proportionate share of the profit after tax of the
subsidiary. The item ”Investments in subsidiaries” in the balance sheet includes the proportionate ownership share of the net asset value of the
entities calculated under the accounting policies of the parent company with deduction or addition of unrealised intercompany profits or losses and
with addition of any remaining value of the positive differences (goodwill).
Subsidiaries with a negative net assets value are measured at DKK 0, and any receivables from these are written down by the parent company’s
share of the negative net asset value, if impaired. Any legal or constructive obligation of the parent company to cover the negative balance of the
subsidiaries is recognised as provisions. The total net revaluation of investments in subsidiaries is transferred upon distribution of profit to ” Re-
serve for net revaluation” under equity. Gains and losses on disposals or winding up of subsidiaries are calculated as the difference between the
sales value or cost of winding up and the carrying amount of the net assets at the date of acquisition including goodwill and expected loss of dis-
posal or winding up. The gains or losses are included in the income statement.
Financial Ratios
The financial ratios have been calculated as follows:
Return on property portfolio (% p.a.): Gross profit x 100 / Fair value of investment and domicile properties
Average loan rate (% p.a.): Financial items x 100 / Credit institutions Return margin on property portfolio (% p.a.):
Return on property portfolio (% p.a.) - Average loan rate
Return on equity (%): Profit for the period / Total equity
Equity ratio (%): Total equity / Total assets
Net asset value per share, end of period (DKK): Total equity / Share capital
Earnings per share (avg. Number of shares) (DKK): Profit for the period / Average number of shares
Earnings per share, end of period (DKK): Profit for the period / Number of own shares, end period
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
102
PROPERTY OVERVIEW
Park Street Group owns at 31 December 2023, 42 properties.
#
Strategy
Property Type
Address
ZIP
City
1
Spark Office
Office
Dannebrogsgade 2,
5000
Odense
2
Glostrup
2600
Glostrup
3
Stable Office
Office
Omøvej 9
4700
Næstved
4
1 C, Vilhelmskildevej
5700
Svendborg
5
6, Jernbanegade 6
4000
Roskilde
6
23-35, Birkemose Allé 23-35
6000
Kolding
7
6, Toldbuen
4700
Næstved
8
275, Svendborgvej
5000
Odense
9
21, Birkemose Allé
6000
Kolding
10
9 B, Birkemosevej
6000
Kolding
11
22, Stagehøjvej
8600
Slikeborg
12
Stable Residential
Residential
Nørregade 31-33
4100
Ringsted
13
Stable Retail
Retail
Ros Have 8, 10, 12, 18
4000
Roskilde
14
20, Prøvestensvej
3000
Helsingør
15
27, Immerkær
2650
Hvidovre
16
27A+B, Nørregade
4100
Ringsted
17
Mosede Centret
2670
Greve
18
10, Dyssegårdsvej
4700
Næstved
19
2, L.C. Worsøesvej
6780
Holbæk
20
3, Banetorvet
3450
Lillerød
21
11, Ros Have
4000
Roskilde
22
13, Ros Have
4000
Roskilde
23
2 A-B, Engdahlsvej
7400
Herning
24
19A, Albuen
6000
Kolding
25
Stable Storage
Storage
7-13, Blegdammen
4700
Næstved
26
Pulse Hotel
Hotel
13, Algade
4000
Roskilde
27
Ballerup Idrætsby Hotel
2750
Ballerup
28
Pulse
Residential
29, Tåsingegade
2100
København
29
8-10, Hejrevej
2400
København
Park Street | Property Overview
103
#
Strategy
Property Type
Address
ZIP
City
30
Park Street
Retail
Sjællandsgade
12,16,18
7100
Vejle
31
Park Street
Resi - Project
2, Selsmosevej
2630
Taastrup
32
39, Skibsegen
3070
Snekkersten
33
Park Street
Storage
78, Vordingborgvej
4700
Næstved
34
78-82, Vordingborgvej
4700
Næstved
35
Nordicom Office
Office
4, Kirsebærgården
3450
Lillerød
36
Nordicom Retail
Retail
102, Silkeborgvej
7400
Herning
37
13-19, Nørregade
4100
Ringsted
38
Nordicom Resi
Residential
33-35, Jernbanegade
6000
Kolding
39
3, Naverstræde
6000
Kolding
40
41
42
2, Søndergade
21, Nørregade
Grønings Have
4700
Struer
Rinsted
Havnestaden
