German High Street Properties A/S
Annual Report 2025
Münchener Str. 20, 83022 Rosenheim, Germany
Table of Contents
Company Information
Group Structure
Company Presentation
Management's Review
Property Description
Strategy
Key Figures (Group)
Corporate Social Responsibility
Statement on Social Conditions
Statement of Data Ethics
Statement on Tax Policy
Special Risks
Other Risks
2
3
4
6
10
15
18
24
33
34
35
36
37
Board of Directors and Management
Financial Calendar 2025 and 2026
Company Announcements
Management's Statement
Independent Auditor's Report
Income Statement
Other Comprehensive Income
Balance Sheet
Statement of Equity (Group)
Statement of Equity (Parent Company)
Statement of Cash Flow
Notes
42
50
50
51
52
60
60
61
62
63
64
65
1
Annual Report 2025 │ Table of Contents
Company Information
Company
German High Street Properties A/S
Mosehøjvej 17
DK-2920 Charlottenlund
Denmark
Company registration number: 3069 1644
Financial year: January 1 – December 31
Municipality of residence: Gentofte
Auditor
Beierholm
Godkendt Revisionspartnerselskab
Ndr. Ringgade 70A
4200 Slagelse, Denmark
Managing Director
Martin Ernst
Board of Directors
Hans Thygesen
Nikolaj Claude Olof Zethraeus
René Angenend
Annual Report 2025 │ Company Information
2
German High Street Properties A/S
GHSP Erste Holding GmbH
GHSP Zweite Holding ApS & Co.KG.
GHSP Dritte Holding GmbH
Apreit Two Grundbesitz GmbH
100%
Minority shareholders
GHSP Grundbesitz I GmbH (Pforzheim)
6%
94%
94%
100%
10.4%
Braunschweig
Frankfurt
Hamburg
Kassel
Koblenz
Rosenheim
GHSP Grundbesitz III GmbH (Aachen)
GHSP Grundbesitz IV GmbH (Essen,
Leverkusen)
GHSP Grundbesitz V GmbH (Braunschweig)
GHSP Grundbesitz VI GmbH (Essen)
GHSP Grundbesitz VII GmbH (Gütersloh)
6%
89.6%
100%
GHSP - Odense, Danmark ApS
(Newly established as of December 31, 2025)
Group Structure
As of December 31, 2025, the Group consisted of
German High Street Properties A/S (“Company”),
one Danish company, seven German GmbHs,
three holding companies in Germany.
Annual Report 2025 │ Group Structure
3
Company Presentation
The Group aims to invest in well-located properties in cities with
economic and demographic growth in Scandinavia, Germany,
Switzerland, and England.
As of December 31, 2025, the Group has 13 German high street
properties located in the 11 cities of Aachen, Braunschweig (2), Essen
(2), Frankfurt, Gütersloh, Hamburg, Kassel, Koblenz, Leverkusen,
Pforzheim, Rosenheim and a Danish property located in Odense.
The Group was established in 2007, and its Parent Company, German
High Street Properties A/S, was listed on Nasdaq Copenhagen on
September 20, 2007.
The Group is managed by Administrationsselskabet Gambit ApS.
STRABAG Property and Facility Services GmbH in Stuttgart, in
cooperation with the Group's employees, handles the property
management in Germany. The Group has three employees.
Annual Report 2025 │ Company Presentation
4
Berliner Str. 36-38, 33330 Gütersloh, Germany
19 Years of Experience
Established in 2007 and listed on Nasdaq Copenhagen September 20, 2007.
14 Properties in Portfolio
German high street properties in 11 cities in Germany and 1 in Denmark.
Value of EUR 88.1 million
Value of property portfolio as of December 31, 2025.
● Hamburg
● Pforzheim
Rosenheim ●
● Frankfurt
● Braunschweig
● Gütersloh
● Kassel
● Koblenz
● Essen
● Aachen
● Leverkusen
● Odense
Annual Report 2025 │ Company Presentation
5
Management’s Review
2025 Annual Result
The annual report 2024 as well as the interim report for the 3rd quarter of 2025 announced an
expected result before tax and value adjustments in the EUR 0.3 – 0.7 million range.
The Group's result before value adjustments and tax amounted to EUR 0.7 million in 2025 (EUR 0.1
million in 2024), in accordance with the latest announced expectations.
The improvement in the result compared to 2024 is primarily attributable to higher rental income
across the Group’s property portfolio. Rental income increased in 2025 compared to the previous
year, reflecting both index-linked rent adjustments and improved letting conditions in several locations.
In addition, the Group benefited from declining net interest expenses during the year. The decrease in
interest costs was mainly driven by the general decline in market interest rates and the refinancing
structure of the Group’s loan portfolio.
As a result of the higher rental income and lower financing costs, the Group’s net cash flow from
operating activities after interest and taxes paid strengthened compared to 2024. This development
reflects an overall improvement in the underlying operational performance of the Group’s property
portfolio and provides a stronger financial foundation for future operations and investments.
Annual Report 2025 │ Management’s Review
6
Limbecker Str. 47, 45127 Essen, Germany
Development of the Property Value
As part of the accounting process, as in previous years, the management obtained a market
valuation of the Group’s properties from a German real estate agent specializing in prime retail
properties. The market valuation has been included in the Board and management's assessment
of the market price development for the Group's German properties. In 2025, the market for well-
located properties was characterized by generally lower valuation multiples (gross capitalization
factors), see note 12.
Lower valuation multiples on the German properties has led to a decrease in the value of German
high street properties. Based on the valuation report as of December 31, 2025, the Group has
decreased the value of the German property portfolio by EUR 6.6 million, from EUR 91.1 million
to EUR 84.5 million.
The Company has chosen to measure the investment property in Denmark at fair market value.
Upon initial recognition in the year of acquisition, it is the Group's assessment that the fair market
value of the property as of 31 December 2025 corresponds to the total acquisition cost.
According to the management's assessment, the above valuation corresponds to the fair market
value as of December 31, 2025 of total EUR 88.1 millions.
Annual Report 2025 │ Management’s Review
7
Schillerstrasse 4, 60313 Frankfurt am Main, Germany
The specification is a snapshot of the rental levels at the end of 2024 and 2025, respectively, and
is, therefore, not directly comparable to the year's realized rental income in the income statement.
Development of the 2025 Rental Income
Rental income from the Group’s German properties has developed as expected, with
realized rental income for 2025 increasing by EUR 388,374 compared to 2024.
At year-end 2025, the Group's properties were almost fully let, with the exception of
mainly a few residential units. As shown in the following specification, rental income and
costs at the end of 2025 are 8.4% higher than at the end of 2024.
As shown in the following overview of the development in rental income per segment from
2024 to 2025, the Commercial segment increased by 4.5%, the Residential segment
increased by 10.2%, and the Office segment decreased by 5.9%.
3,159
499
371
3,302
550
349
COMMERCIAL RESIDENTIAL OFFICE
R ENTAL I N C OME P E R S EGMEN T - I N 1 , 0 0 0 EU R
2024 2025
As the property located at Ørbækvej, Odense, was acquired with effect from December
31, 2025, rental income from this property will first be recognized as of January 1, 2026.
Annual Report 2025 │ Management’s Review
8
Town, address Federal State Area End 2024 End 2025
Change
m2
Rent + costs
EUR
Rent + costs
EUR
in %
Aachen, Grosskölnstrasse 20-28 Nordrhein-Westfalen 3,934 444,538 451,032 1.5%
Braunschweig, Bohlweg 18 Niedersachsen 1,321 207,912 214,764 3.3%
Braunschweig, Münzstrasse 12 Niedersachsen 1,231 227,044 233,970 3.1%
Essen, Limbeckerstrasse 42 Nordrhein-Westfalen 774 78,000 81,000 3.8%
Essen, Limbeckerstrasse 47-49 Nordrhein-Westfalen 1,272 182,393 189,233 3.8%
Frankfurt am Main, Schillerstrasse 4 Hessen 1,946 828,287 915,576 10.5%
Gütersloh, Berlinerstrasse 36-38 Nordrhein-Westfalen 1,622 178,199 278,628 56.4%
Hamburg, Wandsbeker Königstrasse 2 Hamburg 1,780 594,852 654,908 10.1%
Kassel, Obere Königstrasse 37 a Hessen 2,871 727,112 747,960 2.9%
Koblenz, Löhrstrasse 73 Rheinland-Pfalz 1,998 595,999 592,284 -0.6%
Leverkusen, Wiesdorfer Platz 39 Nordrhein-Westfalen 380 57,000 57,000 0.0%
Pforzheim, Westliche Karl-Friedrich-Strasse
32-34
Baden-Württemberg 1,736 353,143 358,464 1.5%
Rosenheim, Münchenerstrasse 20 Bayern 1,794 135,550 223,584 64.9%
Total 22,658 4,610,029 4,998,403 8.4%
Odense, Ørbækvej Odense 616 0 0 n/a
Total 616 0 0 n/a
Total 23,274 4,610,029 4,998,403 8.4%
The German Economy
Germany, Europe’s largest economy and one of the world’s leading export-driven
economies, has faced a number of challenges in recent years. These include energy price
shocks following geopolitical tensions in Europe, subdued global demand, and a period of
elevated inflation. After two consecutive years of economic contraction, the German
economy returned to modest growth in 2025, with GDP increasing by approximately 0.2%.
The consensus outlook points to a gradual recovery in the coming years. For 2026, the
Deutsche Bundesbank forecasts GDP growth of around 0.6%, while the ifo Institute
expects growth of approximately 1.3%. Growth is expected to strengthen further in 2027,
with forecasts of 1.2% from the Bundesbank and 1.6% from the ifo Institute.
This expected improvement is supported by rising real wages, declining inflation, and
increased public investment, particularly in infrastructure and defence. Inflation has
gradually moderated and is now approaching the European Central Bank target of around
2%, which is expected to support household purchasing power and strengthen private
consumption.
Despite these positive developments, several structural challenges remain. These include
the ongoing energy transition, administrative and regulatory complexity, demographic
pressures from an ageing workforce, relatively weak productivity growth, and continued
geopolitical uncertainty affecting global trade.
Overall, the outlook for the German economy suggests a gradual and moderate recovery rather
than a rapid rebound. Key indicators point towards:
• Gradually strengthening economic growth
• Inflation stabilizing close to the 2% target
• Improving real wage development
• Increasing private consumption
• Government spending acting as a supportive economic factor
Within the real estate market, retail properties in prime high-street locations continue to
demonstrate resilience. Demand for well-located retail premises remains strong, while secondary
locations remain under pressure. Letting activity in prime retail areas has remained relatively
stable, supported by resilient consumer demand and retailers’ increasing focus on attractive
physical locations that complement their online sales channels.
Looking ahead, the real estate sector is expected to experience a modest recovery in line with
the broader economic development. Given that the Group’s portfolio primarily consists of well-
located properties with manageable capital expenditure requirements and no significant tenant
concentration risks, management expects 2026 to represent a year of stabilization, followed by a
modest improvement in 2027 driven by increased re-letting activity and potential rental upside.
Annual Report 2025 │ Management’s Review
9
Portfolio Overview
As of 31 December 2025, the Group has 13 German high street properties located across
11 cities: Aachen, Braunschweig (2), Essen (2), Frankfurt, Gütersloh, Hamburg, Kassel,
Koblenz, Leverkusen, Pforzheim, and Rosenheim, as well as one Danish property.
Two of the most valuable assets are the well-located properties in the main cities Frankfurt
and Hamburg. The property in Rosenheim, has been through an extensive refurbishment
to welcome the new tenant ONLY on a long-term lease. At the end of 2025, it was
announced that the property on Ørbækvej 232, Odense, was added to the portfolio.
The performance of the remaining portfolio has been stable and in line with prior years.
Frankfurt, Schillerstrasse 4:
The property is centrally located in the pedestrian area of Frankfurt’s city center.
Diagonally opposite is Börsenplatz which houses the Frankfurt Stock Exchange. The retail
leaseholders are: Apotheke Franz, Avatel, Wolsdorff, EUKO BBQ chicken, and Kouvatas.
In addition, there are seven office leases. As of 31 December 2025, one office space is
vacant.
As the leading financial hub in Germany, population growth projection of around 5% during
the next 15 years, Frankfurt is immune to some of the headwinds experienced in less
vibrant areas of Germany. Additionally, the prime location makes the property resilient both
from an office and a retail perspective.
Schillerstrasse 4, 60313 Frankfurt
am Main, Germany
Prime Location: In Frankfurt’s pedestrian
zone near the Stock Exchange.
Diverse Tenants: Leased to retailers,
restaurants, and offices.
Occupancy: Stable occupancy across all
units. As of 31 December 2025, one office
space is vacant.
Annual Report 2025 │ Management’s Review
10
Hamburg, Wandsbeker Königstrasse 2:
The property is located on Wandsbeker Königstraße, a notable street in
Wandsbek, a central district of Hamburg. This thoroughfare connects
various parts of the district and is integral to the local infrastructure. The
property is close to the subway and the bus terminal. The main tenants
are the nationwide optician chains Apollo Optik, and Cafe’House and 23
residential tenants. As tenants move out, a gradual refurbishment of the
apartments is expected to make it possible to increase the rent
accordingly.
The prominent corner property occupies a strategic position directly
adjacent to the former GALERIA Karstadt Kaufhof in Hamburg
Wandsbek, offering exceptional visibility. Over the next several years,
Union Investment will execute a comprehensive redevelopment of the
area.
The revitalization of the Karstadt building will offer a mixed-use
framework. Furthermore, the master plan includes the construction of
new buildings designed to house a market hall and residential
apartments, which will verify the long-term appreciation and vitality of the
district. The project is scheduled to be ended by 2028.
Apollo Optik – Wandsbeker
Königstraße 4, Hamburg, Germany
Prime Location: In Wandsbek,
a central district of Hamburg.
Strong Tenants: Leased to Apollo Optik and
Cafe’House.
Occupancy: Includes retail, a hairdresser and 23
residential units. The property is fully let except
for one vacant commercial unit.
Annual Report 2025 │ Management’s Review
11
Rosenheim, Münchenerstrasse 20
The property has an excellent location on Münchener Straße, a prominent street
known for its diverse range of shops and services, with a significant emphasis
on fashion retailers.
In December 2024, the city began enhancing the area's appeal by extending the
pedestrian zone. High-traffic retailers such as H&M, Mango, and GALERIA -
Rosenheim have established themselves in this section.
As of May 1, 2025, the property has been leased for an 8-year non-termination
period to the clothing chain Only Stores Germany GmbH which is part of the
Bestseller Group. The property was thoroughly renovated in 2025 to fit the
needs of the new tenant.
Münchener Str. 20, 83022
Rosenheim, Germany
Prime Location: On Münchener
Strasse, a key retail thoroughfare.
Strong Tenant: Leased to Only Stores
Germany (Bestseller Group) for 8 years.
Fully Let: Includes retail and two
residential leases.
Annual Report 2025 │ Management’s Review
12
Denmark, Odense, Ørbækvej 232
According to stock exchange announcement no. 283 of November 20, 2025,
the property Ørbækvej 232, Odense, was acquired for EUR 3,358,000 (DKK
25,050,000) excluding acquisition costs, with transfer of ownership effective as
of 31 December 2025.
The property is leased to Burger King (Nordic Service Partners A/S) under a
non-terminable lease agreement running until 1 October 2036, providing an
annual net rental income of approximately EUR 215,000 (DKK 1,600,000).
.
Ørbækvej 232, 5220 Odense,
Denmark
Acquired on December 31, 2025.
Annual gross rental income: EUR 226,000
Annual net rental income: EUR 215,000
Expected yield: approx. 6.4% (before financing)
.
Annual Report 2025 │ Management’s Review
13
Stock Price
German High Street Properties A/S is listed on Nasdaq OMX Copenhagen. The stock was
offered at a price of DKK 100 on September 20, 2007.
The stock price for German High Street Properties A/S on December 31, 2025, was DKK
60.5 (EUR 8.1) and on December 31, 2024, DKK 79 (EUR 10.6).
Investments and Dividends
Re-letting the remaining vacant premises generally requires renovation work to be carried
out. A significant investment will be needed for a couple of properties in connection with
tenant turnover.
It remains essential for the Group to have a liquidity reserve considering the need for
additional maintenance, renovation, and re-letting of several of the Group's leases.
Therefore, the Board recommends to the general assembly that the Company does not pay
dividends for the fiscal year 2025.
Annual Report 2025 │ Management’s Review
14
Schillerstrasse 4, 60313 Frankfurt am Main, Germany
Westliche Karl-Friedrich-Strasse 32-34, 75175 Pforzheim, Germany
14
Strategy
Vision
The Group pursues profitable growth through strategic acquisitions, hands-on property
renovation, and disciplined vacancy reduction across the portfolio. Built on thirteen prime high
street properties in major German cities and one in Denmark, the Group is broadening its
geographic scope into Scandinavia to capture attractive value-add opportunities and
accelerate portfolio growth.
Investment Approach
The Group targets prime retail and mixed-use properties in central urban locations with strong
footfall, proven tenant demand, and identifiable renovation upside. Acquisitions are evaluated
on rental yield potential, the scope for physical improvements that drive higher rents, and the
ability to reduce vacancy through active letting. The investment focus is broadening to include
Danish properties where renovation-driven value creation can deliver superior risk-adjusted
returns.
Annual Report 2025 │ Strategy
15
Wandsbeker Königstraße 2, Hamburg, Germany
15
Core Activities
The Group's core activities comprise:
• Acquisitions: Sourcing and acquiring prime commercial properties in Scandinavia,
Germany, Switzerland, and England with strong rental fundamentals and clear
potential for physical improvement and rent uplift.
• Renovation: Investing in targeted refurbishments and modernization of existing
properties to raise quality standards, attract higher-paying tenants, and increase
property valuations.
• Letting: Actively marketing and letting vacant units, renegotiating expiring leases at
improved terms, and converting underutilized retail space to higher-yielding mixed-use
configurations.
Value Proposition
The Group offers investors exposure to prime European high street real estate with a clear
growth trajectory. A lean operating model, active asset management, and a proven ability
to create value through renovation and letting underpin the potential for consistent income
growth and capital appreciation.
Operational Excellence
The Group is committed to:
• Maintaining rigorous standards for property management, tenant engagement, and
lease renewals to sustain high occupancy rates across the portfolio.
• Executing renovation projects on time and within budget to deliver measurable rent
uplifts and faster lease-up of vacant space.
• Optimizing the capital structure through disciplined refinancing and prudent leverage
management to reduce funding costs and free up capital for new acquisitions.
Growth Levers
The Group sees three principal avenues for portfolio growth: acquiring well-located
properties at attractive entry yields, unlocking embedded value through targeted
renovation programs, and increasing net rental income by systematically letting vacant
units and renegotiating existing contracts. Together, these levers drive both top-line
growth and improved property valuations.
Annual Report 2025 │ Strategy
16
Strategic Goals
1. Grow through acquisitions by expanding in Scandinavia,
Germany, Switzerland, and England, targeting properties with
strong rental fundamentals and identifiable renovation upside.
2. Upgrade existing properties through targeted renovation
programs that modernize building standards, attract higher-quality
tenants, and lift rental levels and property valuations.
3. Maximize occupancy by actively marketing vacant units,
adapting spaces to current tenant demand, and converting
underperforming retail areas to higher-yielding mixed-use formats.
By combining acquisition-led growth with hands-on asset management,
the Group aims to deliver sustained income growth and capital
appreciation for its shareholders.
Annual Report 2025 │ Strategy
17
s.Oliver Store – Berliner Str. 36-38,
33330 Gütersloh, Germany
17
Key Figures (Group)
Note 1 defines key figures. The Company’s 19th fiscal year covers the period
January 1 - December 31, 2025
Annual Report 2025 │ Key Figures (Group)
18
Revenue
5.0 4.7 4.5 4.7 5.0
Result before fair market value adjustments and interests
1.8 1.8 1.6 1.6 2.5
Fair market value adjustment of investment properties
-7.2 -0.2 -5.1 -4.7 0.7
Net financial expenses -1.1 -1.8 -1.3 -0.6 -0.6
Result of continuing activities before tax
-6.5 -0.1 -4.8 -3.8 2.6
Result of continuing activities after tax
-5.9 -0.1 -4.0 -3.2 2.1
Result of discontinued activities after tax 0.0 -0.3 0.5 0.8 1.3
Result for the period
-5.9 -0.5 -3.5 -2.4 3.4
Balance sheet (EUR m)
Investment properties 88.1 91.1 91.0 96.0 109.3
Total non-current assets
89.3 92.4 92.5 96.7 109.3
Total assets
94.3 97.7 102.1 107.0 115.5
Total equity
57.2 63.1 57.7 61.2 63.6
Total non-current liabilities
34.8 32.8 38.9 42.8 48.7
Statement of cash flow (EUR m) 2025 2024 2023 2022 2021
Net cash flow from operating activities
1.4 0.5 0.0 -0.2 2.3
Net cash flows from investing activities
-4.2 4.3 -4.9 8.8 0.0
Cash flow from financing activities
2.7 -3.9 -0.3 -5.6 -1.6
Net cash flow for the year
-0.1 0.9 -5.1 3.0 0.7
Key figures
Equity ratio %
60.6 64.6 56.5 57.2 55.1
Loan to value %
33.6 30.7 39.2 34.7 40.6
Return on property portfolio %
3.7 3.6 3.1 2.9 4.1
Return on equity before fair market value adjustments and
interests %
2.9 3.2 2.6 2.5 4.2
Interest coverage ratio
1.6 1.0 1.2 2.5 4.5
Earnings per share (DKK), continuing activity
-12.1 -0.3 -9.8 -7.8 5.1
Earnings per share (EUR), continuing activity
-1.6 0.0 -1.3 -1.1 0.7
Earnings per share (DKK), discontinuing activity
0.0 -0.7 1.2 1.9 3.3
Earnings per share (EUR), discontinuing activity
0.0 -0.1 0.2 0.3 0.4
Equity per share, DKK
116.8 128.8 141.2 149.7 155.7
Equity per share, EUR
15.6 17.3 18.9 20.1 20.9
Stock price DKK
60.5 79.0 103.0 144.0 144.0
Stock price EUR
8.1 10.6 13.8 19.4 19.3
Number of employees
3 3 3 4 2
Income Statement (Group)
Revenue
The revenue for the period from January 1 to December 31, 2025 was EUR 5.0 million
compared to EUR 4.7 million in the same period from January 1 to December 31, 2024.
Revenue from German properties increased by EUR 0.3 million compared to 2024. Rental
income increased, among other things, due to rent indexation and increased letting.
Result Before Value Adjustments
The result before value adjustments and tax from January 1 to December 31, 2025
amounted to EUR 0.7 million after property operation expenses, staff expenses and
administrative expenses of total EUR 3.2 million compared to a similar gross profit of EUR
0.1 million after property operation expenses, staff expenses and administrative expenses
of EUR 2.8 million in 2024.
Under administrative expenses for the period January 1 to December 31, 2025,
extraordinary legal costs of tEUR 163.0 are included, relating to advice concerning reply of
questions from certain shareholders (2024 tEUR 0.0).
The result from January 1 to December 31, 2025 before value adjustments and
financial items, was EUR 1.8 million compared to similar EUR 1.8 million in 2024.
Result Before Financial Items
The result from January 1 to December 31, 2025 before financial items, was a
loss of EUR -5.4 million after a net value adjustment of EUR -7.2 million on the
property portfolio.
The net total negative value adjustment for the period January 1 to December 31,
2025 is EUR -7.2 million as mentioned above. This is the sum of the negative
gross value adjustment of EUR -6.6 million in 2025, adjusted for the period's
building improvements totalling EUR -0.6 million.
In the same period in 2024, the result before financial items was a gain of EUR
1.7 million after a EUR 0.1 million positive gross value adjustment on the property
portfolio.
Annual Report 2025 │ Income Statement (Group)
19
Result of Continuing Activities Before Tax
The result from January 1 to December 31, 2025 before tax, amounted to a loss of EUR -
6.5 million after financial items of net EUR -1.1 million.
In the same period in 2024, the loss was EUR -0.1 million after financial items of net EUR
-1.8 million.
Result of Continuing Activities After Tax
The result of continuing activities after tax from January 1 to December 31, 2025 is a loss
of EUR -5.9 million compared to a loss of EUR -0.1 million in 2024 for the same period.
The result from continuing operations after tax, a total loss of EUR -5.9 million, primarily
caused by the negative gross value adjustment of EUR -6.6 million, is considered
unsatisfactory.
Given the current economic conditions, interest rate developments, and market conditions
in Germany, the management considers however the result before value adjustments and
tax a profit of EUR 0.7 million as expected.
Annual Report 2025 │ Income Statement (Group)
20
Wiesdorfer Pl. 39, 51373 Leverkusen, Germany
Balance Sheet (Group)
Assets
The management assessed the investment value in German properties at EUR 88.1
million as of December 31, 2025, compared to EUR 91.1 million as of December 31,
2024.
From January 1 to December 31, 2025, the value of the Group's investment
properties decreased by EUR -7.2 million.
As of December 31, 2025, total assets amounted to EUR 94.3 million, compared to
EUR 97.7 million at the beginning of the year.
Equity and Liabilities
As of December 31, 2025 the equity was EUR 57.2 million, corresponding to an
equity ratio of 60.6%. As of December 31, 2024 the equity was EUR 63.1 million,
corresponding to an equity ratio of 64.6%.
The equity decreased from January 1 to December 31, 2025 primarily due to the
negative result for the period of EUR -5.9 million.
As of December 31, 2025, financial debt obligations were EUR 30.6 million (EUR
27.9 million December 31, 2024).
After repayments totaling EUR 675,000, the increase in financial debt obligations
relates to new loans of EUR 3.4 million in connection with the acquisition of the
property located in Odense as of December 31, 2025. See note 23.
Annual Report 2025 │ Balance Sheet (Group)
21
Cash Flow (Group)
From January 1 to December 31, 2025 cash flow from operating activities after interest
and taxes paid amounted to EUR 1.4 million, compared to EUR 0.5 million in the same
period in 2024.
Cash flow from investing was EUR -4.2 million mainly in relation to the acquisition of the
property in Odense, Denmark and rebuilding of the property in Rosenheim, compared to
EUR 4.3 million in the same period in 2024.
Net cash flow from financing activities was EUR 2.7 million, related to repayments of the
Group's financial debt obligations of EUR 0.7 million and the new loan of EUR 3.4
million related to the acquisition of the property in Odense, Denmark, compared to EUR
-3.9 million in the same period in 2024.
Subsequent Events
There have been no subsequent events.
Annual Report 2025 │ Cash Flow (Group)
22
Münzstrasse 12, 38100 Braunschweig, Germany
Expectations for 2026
Management expects the German economy to gradually stabilize over the coming years following
a period of weak growth. Demand for well-located retail premises is expected to remain stable with
a slight positive development as investor confidence and consumer spending gradually improve.
This development is expected to make reletting somewhat easier compared with previous years.
However, reletting and tenant changes may still require improvements and modernization of certain
lease units in order to meet tenants’ requirements and market standards.
Management expects that the retail property market in prime locations will remain relatively
resilient. Rent and vacancy levels are expected to remain broadly at the same level as at the end
of 2025. Provided that financing conditions gradually improve, and interest rates stabilize at a
slightly lower level, the Group’s result for 2026 before value adjustments and tax is expected to be
in the range of EUR 0.2 – 0.8 million.
However, this expectation remains subject to uncertainty related to the general macroeconomic
environment, including potential changes in interest rates and geopolitical developments, which
may negatively affect the Group’s results. In addition, costs related to the ongoing scrutiny may
also impact the Group’s results for 2026.
Management will formulate and approve a new four-year business plan during 2026. This work will
outline an execution plan for 2026 and the strategy for the period from 2027-2030. The plan will
focus on improving earnings growth and shareholder value.
Growth will be achieved through a combination of continued optimization of the existing portfolio
and acquisitions of new properties in Scandinavia, Germany, Switzerland, and England.
Accounting Reporting Process
To ensure high quality in the Group's financial reporting, the management has adopted
several procedures and guidelines for accounting and internal controls which must be
followed by the subsidiaries in their reporting, including:
Quarterly follow-up on achieved goals and results at the Group level are:
• Prepared estimates for income statements, balance sheets, cash flow, and key
figures at the Group level.
• Ongoing follow-up on projects, including handling of risks and accounting treatment
thereof.
• Accounting closing instructions.
• Reporting instructions.
Annual Report 2025 │ Expectations for 2026
23
Description of the Business Model
Core Activities
The Group aims to invest in well-located properties in cities with economic and
demographic growth in Scandinavia, Germany, Switzerland, and England. The properties,
primarily with shops on the ground floor and offices or residential units on the other floors
were acquired in the period 2007-2025.
Value Proposition
The value proposition of the Group is to offer shareholders a long-term investment
opportunity in attractively located rental properties.
Customers
Our primary customer segments include both small stock investors and institutional stock
investors. Our secondary customer segments include retail chains that are tenants in our
properties and ordinary renters. We work closely with our customers to understand their
unique needs and tailor our products and services to meet those needs.
Revenue Streams:
Our revenue streams are generated through rental income from retail chains that are
tenants in our properties and from ordinary renters.
Key Partners:
Through our German property management company and German real estate agents, we
collaborate to expand our reach and enhance our offerings. These partnerships are crucial
for driving innovation and providing better offers to our customers.
Cost Structure:
Our primary costs are related to the operation, maintenance, and improvements of our
properties. We focus on cost efficiency and scalability to ensure a sustainable business
model.
24
Annual Report 2025 │ Corporate Social Responsibility
Environmental Matters
In connection with property renovations, the Group has established an environmental and
climate policy to comply with all applicable building regulations and reduce energy and
resource consumption where it is economically advantageous.
We assess that our property portfolio, which consists of retail, residential, and office
properties, does not pose specific climate and environmental risks. The properties are not
located in coastal areas or near rivers and are not leased for environmentally harmful or
hazardous purposes. They are mainly located in urban areas and have constructions not
considered sensitive to climate change in the medium term.
More climate-friendly and contemporary materials are generally used when major repairs or
improvements are made to properties. These include windows with energy-efficient glass,
better-insulated roofs, LED lighting, and more efficient heating systems (typically district
heating).
Extra insulation is typically added when roofs are replaced, and when heating sources are
replaced there is usually a switch to district heating and the integration of new energy
efficient pumps and valves.
The property managers and caretakers are instructed to focus on saving energy and
continuously optimizing energy use. The Group tries to limit its travel activity where possible.
CO2 is emitted during the daily operation and use of buildings. The Group's properties are
no exception, and this emission and the consequences of ongoing renovation and
maintenance are among the most significant environmental risks.
Waste from demolitions may also contain hazardous substances. Machinery and/or
materials may have environmentally harmful impacts on some of the construction processes
of the Group.
The Group expects that recycling, and new technologies will support the opportunity to
reduce CO2 emissions. To measure results because of the Group's work with the
environment and climate, projects have been initiated in 2025 that enable the effect on the
environment and climate to be measured in 2026. Examples include monitoring electricity
consumption, water usage, and waste sorting.
25
Annual Report 2025 │ Corporate Social Responsibility
Human Rights
The Group's most significant risks concerning respect for human rights relate to
discrimination and lack of diversity.
The Group operates solely in Denmark and Germany, both of which have ratified the UN's
human rights convention. The Group respects each individual and does not accept that
employees, tenants, or other external parties are subjected to discrimination. The Group
views diversity as a strength that creates a positive workplace. The diversity here refers to
variety in terms of gender, age, religion, ethnic origin, sexuality, education, professional
experience, opinions, interests, and much more. The Group operates only in economically
and politically stable countries and complies with all applicable regulations, including labour
rights, agreements, etc. The Group does not enter into agreements with companies or
individuals who do not respect human rights.
The goal is to prevent human rights violations. From January 1 to December 31,
2025, there were no human rights violations.
During staff replacements, all qualified individuals are encouraged to apply for
the positions regardless of gender, age, religion, etc. Management continuously
ensures that the policy guidelines are followed. The Group will continue its
antidiscrimination efforts in 2026.
26
Annual Report 2025 │ Corporate Social Responsibility
Social and Employee Relations
Policy for responsible supplier management and working environment As
German High Street Properties A/S is an organization with few direct employees, our
most significant social impact is linked to the employees of our administrators,
operational partners, and external contractors. The Group has therefore adopted a
policy for responsible supplier management. We require our partners to ensure a
healthy and safe working environment and to comply with applicable labor market
legislation in the countries where we operate (Denmark and Germany).
Risk assessment The primary risk in the social area is related to construction and
renovation projects, where there is a risk of occupational accidents or non-compliance
with collective agreements and labor standards among subcontractors. A secondary
risk pertains to the well-being and stress levels of our few direct employees and close
partners.
Actions and measures In 2025, we focused on the following initiatives:
• Supplier requirements: When entering into major construction contracts or
management agreements, we ensure that the supplier commits to complying
with local standards for occupational health and safety.
• Monitoring: We maintain an ongoing dialogue with our German property
managers regarding their safety procedures on the properties, including fire
safety and technical maintenance, to protect both workers and tenants.
• Working environment: For our own employees, we prioritize flexibility and a
healthy psychological working environment to prevent sickness absence.
Results and KPIs During the 2025 financial year, no serious occupational
accidents were reported on the Group's properties in connection with operations
or renovations. Sickness absence among the Group's own employees was below
1.0%, which is considered very satisfactory. In 2026, the Group will continue to
specify requirements for subcontractors as contracts are renewed.
27
Annual Report 2025 │ Corporate Social Responsibility
Anti-corruption
The Group has a policy against corruption. The property and company administrators or their
partners may not receive unusual gifts from suppliers or give gifts beyond minor occasional
gifts.
There is a risk that subcontractors could engage in corruption/bribery of, for example,
authorities by paying them “out of their pocket”. Additionally, there is a risk that local property
administrators in Germany could receive money from subcontractors in the form of
kickbacks. In tenders, there is also a risk of cartel formation. In the ongoing controlling of
local property administrators in Germany by the manager, there is a focus on ensuring that
the Group only pays bills after normal vouchers with documented expenses and that prices
are benchmarked against usual costs. No corruption was detected from January 1 to
December 31, 2025, during the control and review of contracts.
The Group will ensure that all suppliers and employees contribute to anti-corruption in the
coming years.
Statement on Management Issues
Good Corporate Governance
The Board of German High Street Properties A/S considers safeguarding the
Group's - and thereby the shareholders' - long-term interests as its most
important task. The Group's overall management guidelines are described in its
statutes, objectives, and strategy. They are based on values that stem from
generally recognized principles of good corporate governance.
The Board and the executive team are responsible for the Group's risk
management and internal controls in relation to financial reporting, including
compliance with relevant legislation and other regulations concerning financial
reporting. The Group has established risk management and internal control
systems to ensure that the internal and external financial reporting is accurate
and free from significant misinformation. The executive team has established a
reporting process that includes budget and periodic reporting, including
explanations for variances and periodic updates of the year's estimates. In
addition to the comprehensive income statement, balance sheet, and liquidity
forecast, the reporting also includes supplementary information.
28
Annual Report 2025 │ Corporate Social Responsibility
Corporate Governance Code
The Committee on Corporate Governance published the Recommendations for Good
Corporate Governance on December 2, 2020 based on the "comply or explain" principle.
Nasdaq Copenhagen has implemented the recommendations in the "Rules for Issuers of
Shares." The recommendations can be requested from the Committee on Corporate
Governance's website, www.corporategovernance.dk.
The Board of German High Street Properties A/S annually assesses the Group's rules,
policies, and practices concerning the Committee on Corporate Governance's
recommendations. The Board is of the opinion that the Group substantially follows the
recommendations, although it assesses that company-specific circumstances make it
impractical or irrelevant to follow certain recommendations fully.
For a mandatory statement of the reasons for this, refer to the Company's website,
according to https://www.germanhighstreet.com/corporate-governance.
The Group currently does not follow and does not expect to follow any corporate
governance codes other than the ones mentioned above in the foreseeable future.
29
Annual Report 2025 │ Corporate Social Responsibility
Capsule 5, Schillerstrasse 4, 60313 Frankfurt am Main, Germany
Evaluation of the Board and Executive Management
The Company’s Board conducted a Board evaluation in 2024, while the evaluation for
2025 has been postponed until 2026. All Board members participated in the evaluation in
2024.
The main conclusions were that there was consensus among the Board members about
the Group's strategic priorities and that the Board possesses the relevant competencies
related to the Group's activities and strategic focus areas. The conclusions from the Board
evaluation will be used as a basis in the future when searching for relevant Board
candidates.
30
Löhrstrasse 73, 56068 Koblenz, Germany
Annual Report 2025 │ Corporate Social Responsibility
Remuneration Policy
The Company’s Board is compensated with a fixed honorarium and does not receive
incentive-based remuneration. The base honorarium for the Board is set at a market-
conforming level that reflects the demands of Board members.
Effective from January 1, 2025, the Board’s remuneration amounts to an annual basic
honorarium of EUR 30,000 per member. The chairman receives the basic honorarium three
times.
The Board determines the salary and employment conditions for the executive management
at least once a year based on a recommendation from the chairperson. The director is not
part of any incentive scheme. Michael Hansen received EUR 108,725 in 2025.
The employment contract for Michael Hansen (stepped down as CEO on December 31,
2025) and Martin Ernst (joined as CEO on December 31, 2025) follows the notice period of
the Employee's Act. In addition, no Board and executive management members are entitled
to compensation upon termination of employment.
The Company believes that the remuneration of the Board and executive management
supports the Group's strategy and is in accordance with its interests, good practices, and
recommendations for good corporate governance.
31
Annual Report 2025 │ Corporate Social Responsibility
Annual remuneration
EUR 1,000
Board of Directors
2025 2024
Hans Thygesen 90.0 90.0
Nikolaj Claude Olof Zethraeus, Vice-Chairman of the
Board
30.0 30.0
René Angenend (joined the board on April 30, 2025) 20.0 0.0
Jutta Steinert (stepped down from the board on April 30,
2025)
10.0 30.0
Walther Thygesen (stepped down from the board on April
30, 2024)
0.0 10.0
150.0 160.0
Key management personnel
Michael Hansen (stepped down as CEO on December 31,
2025)
109.0 120.0
Martin Ernst (joined as CEO on December 31, 2025) 0.0 0.0
Total annual remuneration: 259.0 280.0
Diversity Policy
The Group embraces diversity and inclusion in its operation and management.
Purpose
The Group embraces diversity and inclusion in its operation and management.
Purpose
This diversity policy aims to outline the framework and principles for the Group's
view on and inclusion of diversity in the Group's business operations and
management.
Policy
The Group considers diversity an essential factor and opportunity that
can improve the Group's competitiveness in both the short and long
term. The Group is against any form of discrimination and aims to treat
applicants and employees equally, regardless of differences in, among
others:
• Gender, age, sexuality, ethnic origin, disability, and life situation
• Attitudes and opinions, religion, interests, ambitions, life philosophy,
personal causes
• The Group expects that respect for these differences will also apply
to employee relations.
Efforts and Results
The Group informs all new employees about the Group's policy and
ensures that no discrimination has taken place in the appointment of
positions in daily management. In 2025, the Group's management was
not aware of or informed about any cases of discrimination, either in the
appointment of management positions or generally in connection with
the Group's activities.
32
Annual Report 2025 │ Corporate Social Responsibility
Statement on Social Conditions
Objectives and Policies for the Underrepresented Gender in Accordance with Danish Company Act
§ 139c
The Board of Directors The Board of Directors has a target for the underrepresented gender to account
for at least 25% of the Board members elected by the general meeting. As of December 31, 2025, the
Board consisted of 3 members, of which zero was female (0%).
Other Management Levels The Group has a very lean organization. Due to the limited number of
employees, the Group's management layers consist solely of the Executive Management (1 person). As
the Group has below 50 FTE’s, the Group has not set out any target ratios for Other Management Levels
In the Company, the Board has set a goal to have at least 25% female members in 2025.
December 31, 2025, the Board was represented with 0% female members. The Board aims to
ensure a diverse management composition and equal opportunities for both genders. The target for
the proportion of female Board members was set at 25% in 2017, but by the end of 2025, the
Company has not met this target.
The Board's composition is carried out so the Group can develop steadily and satisfactorily,
considering general and specific legal requirements and recommendations for good corporate
governance. Furthermore, as Board members are replaced, the Board will work towards
rejuvenating the ages of Board members.
The Board will assess the status of meeting the objectives at least once a year and, as far as
possible, nominate suitable female candidates for the Board at upcoming general meetings to
maintain the goal.
Annual Report 2025 │ Statement on Social Conditions
33
Gender diversity:
Target
female
Target year
Status
2025
Status
2024
Board of Directors:
Total number: 25.0% 2025 0% (0 of 3) 33% (1 of 3)
Statement of Data Ethics
Statement of Data Ethics in Accordance with the Annual Accounts Act § 99d
The Group does not currently have a formalized, standalone policy for data ethics, as the Group’s
business model primarily involves traditional property investment and rental activities.
Data Usage: The Group only processes data necessary for business operations, such as tenant
information and financial data. We do not utilize artificial intelligence, complex automated
algorithms, or large-scale surveillance for decision-making or behavioral profiling.
Ethical Principles: Despite not having a formal policy, the Group follows ethical principles
regarding data. Data is never sold to third parties. Access to sensitive information is restricted to
top management and essential partners. When choosing partners, such as our property
administrator STRABAG, we ensure they maintain high standards for data integrity.
Evaluation: The Board of Directors evaluates the need for a formal data ethics policy annually.
Should the Group implement new technologies or change its data processing practices, a formal
policy will be developed to ensure transparency and accountability beyond mere legal compliance.
Annual Report 2025 │ Statement of Data Ethics
34
Photo: Aachen, Grosskölnstrasse
Statement on Tax Policy
Policy German High Street Properties A/S is committed to being a responsible taxpayer. Our tax
policy is to comply with the letter and the spirit of the tax laws in the countries where we operate
(Denmark and Germany). We aim to pay the correct amount of tax in the right place at the right time.
Approach to Tax Management The Group does not engage in aggressive tax planning or artificial
structures intended for tax avoidance. Our tax strategy is closely aligned with our business strategy;
we only invest in properties and structures that have a clear commercial purpose.
Risks and Compliance As our activities are centered in Germany, we are subject to complex local tax
regulations, including "Gewerbesteuer" (Trade Tax). We manage tax risks by:
• Engaging recognized local tax advisors in Germany to ensure compliance.
• Maintaining a transparent and proactive relationship with tax authorities.
• Ensuring that our financing structures (intercompany loans) are at arm’s length and comply with
transfer pricing regulations.
Results in 2024/2025 In 2024 and 2025, the Group has complied with all filing and payment
deadlines. There have been no significant disputes with tax authorities regarding the Group's tax
positions.
Annual Report 2025 │ Statement on Tax Policy
35
Schillerstrasse 4, 60313 Frankfurt am Main, Germany
35
Special Risks
IT Security
With the increased use of digitalization in business, digital threats and risks also increase. The
Group continuously discusses the development of risks and threats. We follow the
developments and ensure that we are as well-prepared as possible to handle the current threat
landscape.
Risk Management
The Group is exposed to several risks, some of which are beyond the Group's control while
others can be influenced or managed as part of the daily operations. Significant risks beyond
the Group's control include general economic development, pandemics, geopolitical unrest,
natural disasters, energy supply, and a demand for retail and office rentals in the cities and
areas where the Group's properties are located.
Changes in general economic conditions can lead to falls or increases in property
values, increased vacancies, falling rental incomes, and slower tenant payments.
The Group cannot change these fundamental conditions but can seek to organize
rental and investment activities to minimize the adverse effects of economic cycles.
Active risk management is part of the Group's strategy to optimize earning
opportunities. The Group seeks to address and manage risks which can be
influenced.
The following are the risks considered to potentially negatively impact the Group’s
future growth, activities, financial position, and results. This description is not
exhaustive and does not prioritize the listed risk factors.
Annual Report 2025 │ Special Risks
36
Other Risks
Active risk management is part of the Group's strategy to optimize earning
opportunities. The Group seeks as far as possible to address and manage risks
that its actions can influence. The property market is sensitive to economic cycles,
which is reflected in periodic significant property price fluctuations.
The overarching framework for the Group's risk management is continuously
assessed by the Board and management based on, among other things, reporting
from the Group's partners in property management.
Below are the risks considered to potentially negatively impact the Group’s future
growth, activities, financial position, and results. This description is not exhaustive
and does not prioritize the listed risk factors.
Operational Risks
The operation of the property portfolio can be affected by changes in
realized rental income and costs for operation and maintenance.
Management manages risks based on ongoing reporting and only
entering administration agreements with recognized partners.
Annual Report 2025 │ Other Risks
37
Rental Income Risk
Investing in real estate is associated with letting risk, which mainly concerns the
development of the rent level and vacant rents. Such deviations can be due to various
factors, including a tenant's ability to pay rent, the Group's ability to adjust the rent,
general and specific demand and supply development in local markets, development in
vacancy rates, and the development of market rent levels for German properties.
The Group's management and company administrator closely monitor rent
developments through periodic and systematic reporting. This is to focus on letting
vacant premises, managing the duration of new contracts, avoiding concentration of
expiration dates, ensuring stability, and minimizing the vacancy rate as much as
possible.
In the short term, some tenants may demand a rent reduction due to external events. If
the amount set aside is insufficient, expected court decisions regarding previous
operating years may affect the result.
Costs of Operation and Maintenance
Management assesses that the planned expenses for operation and maintenance
are sufficient to maintain the current rental income and the current technical
condition of the property portfolio. However, there is a risk that actual expenses may
be higher than expected. External factors can also affect actual maintenance costs,
including weather conditions, technical conditions, regulatory requirements,
commercial decisions, development in general price levels, and lack of capacity in
the market for labour and materials.
The environmental impact of operating the portfolio is attempted to be reduced
through minimizing energy consumption where it is economically justifiable and
where it can lead to a reduction in operating costs. On the other hand, changes in
regulatory requirements for environmental conditions can increase operating costs.
Annual Report 2025 │ Other Risks
38
Credit Risk
The Group does not have a particular concentration of credit risks. Credit risks relate to
tenant receivables and other short-term assets, including liquid holdings. Risk
management takes place at the Group level in accordance with management guidelines.
The guidelines include credit approval of new tenants and ongoing monitoring of
receivables. Reporting to management is done monthly.
Impairment is made based on an individual assessment of receivables from letting to the
extent that the Group expects to be unable to recover the arrears.
Risk Regarding Property Administration
The Group's ability to efficiently manage the portfolio will affect the development of rental
income and its planned optimization.
STRABAG Property and Facility Services GmbH is a medium-sized property administrator
in Germany with broad geographic coverage.
Market Risks
The portfolio's value depends on its commercial operation and income and the development
and pricing of investment properties in Germany - specifically, German high street
properties. The general pricing of high street properties is influenced by several factors,
among which are current inflation and expectations for future inflation, current interest rate
levels and expectations for future interest rates, future property investors' demands for net
yield for similar properties, the extent of new construction of various property types, demand
for premises, general and local population development, general economic development,
particularly economic growth, employment development, development in German private
consumption, development in retail stores' turnover and earnings, and changes in the public
sector's activity level and demand for premises.
Currency Risk
The Group owns mainly properties in Germany, so its assets and ongoing income are in
EUR. The Group has also financed the German properties in EUR to reduce currency risk.
Management assesses the currency risk of investing in EUR as limited relative to DKK.
Annual Report 2025 │ Other Risks
39
As a result of its operations, investments, and financing, the Group is exposed to changes
in interest rates. The Board closely follows developments in the financial markets.
Interest Rate Risk
As of December 31, 2025, the Group's outstanding debt amounted to EUR 30.6 million. As of
December 31, 2024, the outstanding debt was EUR 27.9 million.
The loans, totalling EUR 30.6 million, were divided into a standing loan of EUR 15 million and a
serial loan that amounted to EUR 15.6 million as of December 31, 2025. The serial loan is
repaid with EUR 813,676 annually.
The loans related to the German properties bear interest at the 3-month Euribor + 1.75%
margin. As of December 31, 2025, the 3-month Euribor was 2.0%, so the total interest rate,
including the margin, was 3.75% (as of December 31, 2024, the interest rate, including the
interest margin, was approximately 4.25% p.a.).
A change of 1.0 percentage points in the general interest rate level would result in a change in
the Group's annual interest expense before tax of EUR 290,000 which will affect both the
Group's result for the period and the total equity.
The loans related to the Danish property bear interest at the 3-month Cibor + 1.75% margin.
As of December 31, 2025, the 3-month Cibor was 2.0%, so the total interest rate, including the
margin, was 3.75%
Annual Report 2025 │ Other Risks
40
EUR 1.000
2025
Change in rate of interest (in %)
+1.0 Base -1.0
Yearly financial expenses EUR 000
-1,379 -1,089 -799
Change in Yearly financial expenses EUR 000
-290 0 290
2024
Change in rate of interest (in %)
+1.0 Base -1.0
Yearly financial expenses EUR 000
-2,193 -1,775 -1,357
Change in Yearly financial expenses EUR 000
-418 0 418
Refinancing and Liquidity Risks
As an important part of risk management, management closely monitors the Group's
liquidity reserve, which is intended to ensure that the Group can service its current
and future obligations, including payment of interest and principal to lenders. The
Group's loans relating to German properties total EUR 30.6 million end of December
2025 have been agreed with non-renegotiating clauses from the lenders' side until
2030 if the DSCR (annual net rent (Kaltmiete)*0.75/annual payments under the loan)
is higher than 1.30.
As of December 31, 2025, the DSCR has been calculated to be 1.74.
Political Risks Regarding Danish and German Tax and Duty Legislation
The Group is subject to the prevailing laws regarding taxes and duties, and no assurance can be given
that tax and/or duty legislation changes will not occur - including changes in the double taxation
agreement between Denmark and Germany. Significant changes in law or practice regarding taxes and
duties could affect the Group's financial position and results.
German companies that have no other activities than renting out real estate are, as a starting point,
exempt from paying German trade tax of 15-19%. As the rules regarding local German trade tax are
complex, full assurance cannot be obtained that the conditions for exemption from local German trade
tax will always be met. If the German tax authorities challenge the conditions for exemption, this could
lead to additional unbudgeted tax payments. In collaboration with German tax advisors, the
management assesses that it will be possible to avoid German trade tax.
Annual Report 2025 │ Other Risks
41
Board of Directors and Management
Board and Executive Management
German High Street Properties A/S management consists of a Board of
three members.
Executive management consists of one member who handles the daily
operations. The Board was elected at the annual general meeting on April
30, 2025. All Board members are up for election every year at the
Company's annual general meeting.
As stated in company announcement no. 289 of 18 December 2025, and
as part of a planned generational succession, the Board of Directors of
German High Street Properties A/S and CEO Michael Hansen have
mutually agreed that he would step down from his position on 31
December 2025. Martin Ernst succeeded him as the new CEO on the
same date.
Annual Report 2025 │ Board of Directors and Management
42
Administrator
The Group's administrator is Administrationsselskabet Gambit ApS which performs
administrative tasks related to investors, general meetings, lenders, the stock exchange,
public authorities, advisors, registries, etc. Under the administration agreement, the
Group pays Administrationsselskabet Gambit ApS a quarterly honorarium of 0.16% of the
properties' book value as payment for its services.
The Company's executive management also receives an annual remuneration of EUR
108,725.
The Group has a financial manager who handles liquidity management, accounting,
financial reporting, budgeting, cost control, etc. In addition, the daughter company in
Germany has a manager who heads Asset Management and handles the optimization of
operations for the German properties and development tasks, optimization, and outreach
work in connection with the letting of commercial leases.
Annual Report 2025 │ Board of Directors and Management
43
Münchener Str. 20, 83022 Rosenheim, Germany
Education
: MSc of Economics & Business Administration
Executive MBA
Position
: CIO for Kartago A/S
Chairman of the Board in the
following companies:
Trustzone A/S
Board Member in the following
companies:
Care Collective A/S and JME Gruppen A/S
Managing Director in the following
companies:
JME Gruppen A/S, Danmarksgade 12 ApS, Klokkestøbergade 17 Aalborg ApS, VICE Holding ApS, Aalborg Lejligheder ApS
and
GHSP - Odense, Danmark ApS and subsidiaries of German High Street Properties A/S.
No. of shares in the company:
0
Independent:
Martin Ernst is not considered independent due to his employment with
the company's administrator, which is owned and operated by the company's main shareholder.
Martin Ernst, CEO
Annual Report 2025 │ Board of Directors and Management
44
Education:
Cand. jur. and cand. polit.
Position:
Group CEO for IM15 Invest AG
Chairman of the Board in the following
companies besides German High Street
Properties A/S:
Kartago Capital – Storkøbenhavn II A/S, Kartago Hannibal ApS, Administrationsselskabet Gambit ApS, Kartago Capital A/S,
Kartago Capital – Storkøbenhavn A/S, Ejendomsselskabet Industribuen 7 ApS, Kartago Capital – Grenå Retail A/S, Kartago
Capital – Stockholm A/S, Drot ApS, Marsk ApS, Kartago Capital - Grenå Retail II A/S, Hesselvang 11 A/S,
Komplementarselskabet Pindstrup Ryomgård ApS, Komplementarselskabet Sæbygård ApS, Care Collective A/S, Kartago
Capital - Energihuset A/S, Kartago Property ApS, Kc Spv I A/S
Board Member in the following
companies:
Kartago Development ApS, Kartago Botkyrka Holding AB, K/S Linköping III, K/S Svedengatan-Linköping and subsidiaries of
German High Street Properties A/S.
Managing Director in the following
companies:
Administrationsselskabet Gambit ApS, Ejendomsselskabet af 18/5 1985 ApS, GHSP - Odense, Danmark ApS.
Joined the Board:
October 5, 2015
No. of shares in the company:
0
Independent:
Hans Thygesen is not considered independent due to his close relationship with the controlling shareholders of German High
Street Properties A/S.
Hans Thygesen, Chairman of the Board
Annual Report 2025 │ Board of Directors and Management
45
Education:
IFU Diplomas, Försäkringsakademien
Position:
Managing Director- Senior Advisor
Chairman of the Board in the following
companies:
N/A
Board Member in the following
companies besides German High Street
Properties A/S:
N/A
Managing Director in the following
companies:
N/A
Joined the Board:
December 1, 2023
No. of shares in the company:
0
Independent:
Nikolaj Claude Olof Zethraeus is considered independent.
Nikolaj Claude Olof Zethraeus
Annual Report 2025 │ Board of Directors and Management
46
Education:
B.A. Real Estate- / Facility Management, University of applied sciences, Gelsenkirchen, Germany
Position:
Managing Director
Chairman of the Board in the
following companies:
N/A
Board Member in the following
companies besides German High
Street Properties A/S:
N/A
Managing Director in the
following companies:
AGV Immobilien GmbH, Commercial Register, Düsseldorf Local Court HRB 16350, Germany
Holthausen GmbH Hausverwaltungen, Commercial Register, Neuss Local Court HRB 5006, Germany
RAn ImmobilienManagementBeratung (Owner), Düsseldorf Germany
RAn ImmobilienVerwaltung (Owner) Düsseldorf Germany
Joined the Board:
April 30, 2025
No. of shares in the company:
0
Independent:
René Angenend is considered independent.
René Angenend
Annual Report 2025 │ Board of Directors and Management
47
Share Information
In 2025, the Company's capital amounts to 3,654,459 shares of DKK 10,
corresponding to a share capital of DKK 36,544,590.
Following the consolidation of A-shares and B-shares in 2018, the Company has
only one class of shares. All its shares are listed on Nasdaq Copenhagen under
the short name GERHSP and ISIN code DK0060093524.
Change of Control
Loan agreements and other agreements are not changed due to a change of
control.
Dividend Policy
It is the Company's policy to pay dividends in accordance with the rules of the
Companies Act and consider the maintenance of an appropriate liquidity reserve.
Dividend payments must also be made responsibly, considering the Group's financial
position.
As of December 31, 2025, the Group's equity ratio was 60.6%, and its liquid holding
was EUR 3.5 million.
Interim Financial Statements
German High Street Properties A/S publishes half-year and interim reports for the 1st
and 3rd quarters.
General Meeting
The ordinary general meeting will be held on April 30, 2026.
Annual Report 2025 │ Share Information
48
Ownership and Related Parties
According to the Companies Act § 55, the following shareholders have reported owning more
than 5% of the share capital at the end of the accounting period:
The Group is controlled by Alexander and Kristoffer Thygesen through Drot ApS and Marsk ApS,
which are the controlling shareholders in Kartago Property ApS and Kartago ApS, owning
respectively 41.78% and 11.99% of the share capital, totalling 53.77% of the share capital in
German High Street Properties A/S.
The Group's related parties also include the Parent Company's Board of directors, executive
management, and these people’s close family members. Related parties also include companies
where the Group of people has control or significant influence.
In addition to the shareholdings mentioned above controlled by Alexander and Kristoffer
Thygesen, the Board of directors, executive management, and companies where this Group has
a controlling influence hold a total of 0 shares.
Investor relations
Stock exchange announcements, annual reports, etc., are published on the Company’s website:
https://www.germanhighstreet.com/
Shareholders: Municipality Share capital
Kartago Property ApS Gentofte 41.78 %
Olav W. Hansen A/S Horsens 16.05 %
Sparekassen Danmark Vrå 12.77 %
Kartago ApS Gentofte 11.99 %
OTK Holding Hjørring 6.24 %
Annual Report 2025 │ Ownership and Related Parties
49
Annual Report 2025 │ Financial Calendar 2025 and 2026 & Company Announcements
50
Company Announcements
March 28, 2025: Results 2024
March 28, 2025: Notice of Ordinary General Meeting
April 24, 2025: Value adjustment of properties
April 30, 2025: Proceedings of the ordinary general meeting
May 30, 2025: Interim Report for the period January 1 – March 31, 2025
August 28, 2025: Financial report January 1 - June 30 2025
October 9, 2025:
Request for scrutiny and request to convene an
extraordinary
October 23, 2025:
Extraordinary general meeting of German High Street
Properties A/S
November 11, 2025:
Planned acquisition of Property leased to Burger King,
Odense SØ Denmark
November 17, 2025: Financial calendar 2025 and 2026
November 20, 2025:
Acquisition of Property Located at Ørbækvej 232, 5220
Odense SØ, Denmark
November 26, 2025: Updated financial calendar 2025 and 2026
November 28, 2025: Results of extraordinary general meeting
November 28, 2025: Value adjustment of properties
November 28, 2025:
Interim Report for the period January 1 – September 30,
2025
November 28, 2025: Financial expectations 2026
December 18, 2025:
Planned change in the position of Chief Executive
Officer
Financial Calendar 2025 and 2026
November 28, 2025:
Holding of the extraordinary general meeting
March 23, 2026:
Deadline for submission of proposals for voting at the
Company's annual general meeting.
March 31, 2026:
Annual Report 2025.
March 31, 2026:
Expected date for convening the annual general
meeting.
April 30, 2026:
Holding of the annual general meeting/or notification of
the general meeting.
May 29, 2026:
Interim report for the period January 1 to March 31,
2026.
August 31, 2026:
Half-year report for the period January 1 to June 30,
2026.
November 30, 2026:
Interim report for the period January 1 to September 30,
2026.
Management’s Statement
Today, the Board of directors and the management of German High Street Properties A/S
considered and adopted the annual report for the financial year January 1 - December 31, 2025.
The annual report is prepared in accordance with the IFRS accounting Standards adopted by the
EU and with the requirements of the Danish Financial Statement Act and the rules for listed
companies.
In our opinion, the consolidated financial statements of the Group and the Parent Company’s
financial statements give an accurate and fair view of the Group and the Parent Company’s
financial position as of December 31, 2025, the results of the Group's and the Parent Company’s
operations and cash flow for 2025.
It is also our opinion that the directors' report contains an accurate and fair account of the
development of the Group's and the Parent Company’s activities and financial conditions, the profit
for the period, and the Group's and the Parent Company’s financial position, and a description of
the significant risks and uncertainty factors that the Group and the Parent Company face.
In our opinion, the annual report of German High Street Properties A/S for the financial
year January 1 - December 31, 2025, with the file name 529900BT3M81VV58P678-2025-
12-31-en.zip is prepared, in all material respects, in compliance with the ESEF Regulation.
We recommend that the Annual Report be adopted at the Annual General Meeting.
Charlottenlund, March 31, 2026
Executive Management
Martin Ernst
Board of Directors
Hans Thygesen Nikolaj Claude Olof Zethraeus
Chairman of the Board Vice-Chairman of the Board
René Angenend
Annual Report 2025 │ Management’s Statement
51
Independent Auditor's Report
To the shareholders of German High Street Properties A/S
Report on the Audit of the Consolidated Financial Statements and
Financial Statements
OPINION
We have audited the consolidated financial statements and the financial statements of German High
Street Properties A/S for the financial year 1 January 2025 - 31 December 2025, which comprise
income statement, statement of comprehensive income balance sheet, statement of changes in equity,
statement of cash flows and notes, including material accounting policy information, for the Group and
the Company. The consolidated financial statements and the financial statements are prepared in
accordance with IFRS Accounting Standards as adopted by the EU and Danish disclosure requirements
for listed companies.
In our opinion, the accompanying consolidated financial statements and the financial statements give a
true and fair view of the Group’s and Parent Company’s financial position at 31 December 2025 and of
the results of the Group’s and Parent Company’s operations and cash flows for the financial year 1
January 2025 - 31 December 2025 in accordance with IFRS Accounting Standards as adopted by the
EU and Danish disclosure requirements for listed companies.
Our opinion is consistent with our long-form audit report for the board of directors.
Photo: Beierholm Offices
Annual Report 2025 │ Independent Auditor's Report
52
BASIS FOR OPINION
We conducted our audit in accordance with International Standards on Auditing (ISAs)
and the additional requirements applicable in Denmark. Our responsibilities under those
standards and requirements are further described in the ‘Auditor’s responsibilities for
the audit of the consolidated financial statements and the financial statements’ section
of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.
Independence
We are independent of the Group and the Company in accordance with the
International Ethics Standards Board for Accountants’ International Code of Ethics for
Professional Accountants (IESBA Code) and the additional ethical requirements
applicable in Denmark, and we have fulfilled our other ethical responsibilities in
accordance with these requirements and the IESBA Code.
According to the best of our knowledge, no prohibited non-audit services, as referred to
in Article 5(1) of Regulation (EU) No 537/2014, have been provided.
Annual Report 2025 │ Independent Auditor's Report
53
Appointment
We were appointed as auditors of German High Street Properties A/S for the first time on
30 April 2025 for the financial year 1 January 2025 - 31 December 2025.
KEY AUDIT MATTERS
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the consolidated financial statements and the financial
statements of the financial year 1 January 2025 - 31 December 2025. These matters
were addressed in the context of our audit of the consolidated financial statements and
the financial statements as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters.
How our audit addressed the key audit matter
Our audit procedures included risk assessment procedures to obtain an understanding of internal
procedures and controls related to the valuation of investment properties.
We obtained an understanding of Management’s method for measuring the fair value of investment
properties and performed procedures to ensure that the methodology was consistent with prior years
and appropriate under IFRS Accounting Standards.
We obtained documentation from Management regarding the applied gross capitalization factors for
each German property. This included reviewing the valuation report for the German investment
properties prepared by the external expert, which was prepared using the same methodology as
applied by Management.
We compared the achievable gross rental income with actual rental income and obtained supporting
documentation from Management bridging these levels. On a sample basis, we performed
substantive testing of actual rental income against lease agreements and other supporting
documentation.
We assessed and challenged the assumptions applied by Management and the external expert,
using available market data and our professional scepticism, and we evaluated the competencies and
objectivity of the external expert. Additionally, we tested the mathematical accuracy of the
calculations prepared by Management in determining the fair values of investment properties.
Finally, we assessed the appropriateness of the disclosures in the consolidated financial statements,
including the sensitivity analyses prepared for the significant assumptions.
Annual Report 2025 │ Independent Auditor's Report
54
Valuation of investment properties
The Group owns a portfolio of investment properties in Germany and a single property in Denmark
acquired at year end, all measured at fair value. The carrying amount of investment properties as at
31 December 2025 amounts to EUR 88,082 thousands, corresponding to 93% of total assets.
Valuation of investment properties at fair value contains significant estimates based on significant
assumptions, where even minor changes in the assumptions can have a significant effect on the
fair value of the properties.
The principal risks relate to Management’s assessment of the achievable gross rental income and
the gross capitalization factor for each property, as these are the key inputs in determining the fair
value. This includes Management’ view of actual market conditions and property specific
circumstances, including risks and development opportunities. To support the fair values
determined by Management, an external expert has prepared a valuation report covering all
German properties.
The key assumptions and accounting estimates are described in note 2 and 12.
STATEMENT ON MANAGEMENT’S REVIEW
Management is responsible for the management’s review.
Our opinion on the consolidated financial statements and the financial statements does not
cover the management’s review, and we do not express any form of assurance conclusion
thereon.
In connection with our audit of the consolidated financial statements and the financial
statements, it is our responsibility to read the management’s review and in doing so consider
whether the management’s review is materially inconsistent with the consolidated financial
statements or the financial statements or our knowledge obtained during the audit, or
otherwise appears to be materially misstated.
Moreover, it is our responsibility to consider whether the management’s review provides the
information required by law and regulations.
Based on the work we have performed, we conclude that the management’s review is in
accordance with the consolidated financial statements and the financial statements and has
been prepared in accordance with the requirements of the Danish Financial Statements Act.
We did not identify any material misstatement in the management’s review.
.
MANAGEMENT’S RESPONSIBILITIES FOR THE CONSOLIDATED FINANCIAL
STATEMENTS AND THE FINANCIAL STATEMENTS
Management is responsible for the preparation of the consolidated financial
statements and financial statements that give a true and fair view in accordance with
IFRS Accounting Standards as adopted by the EU and Danish disclosure
requirements for listed companies. Moreover, management is responsible for such
internal control as management determines is necessary to enable the preparation of
consolidated financial statements and financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the consolidated financial statements and the financial statements,
management is responsible for assessing the Group’s and the Company’s ability to
continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting in preparing the consolidated
financial statements and the financial statements unless management either intends to
liquidate the Group and the Company or to cease operations, or has no realistic
alternative but to do so.
Annual Report 2025 │ Independent Auditor's Report
55
AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE CONSOLIDATED
FINANCIAL STATEMENTS AND THE FINANCIAL STATEMENTS
Our objectives are to obtain reasonable assurance about whether the consolidated
financial statements and the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance with ISAs and the additional
requirements applicable in Denmark will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these consolidated financial
statements and financial statements.
As part of an audit conducted in accordance with ISAs and the additional requirements
applicable in Denmark, we exercise professional judgment and maintain professional
scepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the consolidated financial
statements and the financial statements, whether due to fraud or error, design and
perform audit procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of not detecting
a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design
audit procedures that are appropriate in the circumstances, but not for the purpose
of expressing an opinion on the effectiveness of the Group’s and the Company’s
internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness
of accounting estimates and related disclosures made by Management.
• Conclude on the appropriateness of management’s use of the going concern basis
of accounting in preparing the consolidated financial statements and financial
statements and, based on the audit evidence obtained, whether a material
uncertainty exists related to events or conditions that may cast significant doubt on
the Company’s ability to continue as a going concern. If we conclude that a
material uncertainty exists, we are required to draw attention in our auditor’s report
to the related disclosures in the consolidated financial statements and the financial
statements or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our
auditor’s report. However, future events or conditions may cause the Group and the
Company to cease to continue as a going concern.
Annual Report 2025 │ Independent Auditor's Report
56
• Evaluate the overall presentation, structure and content of the consolidated financial
statements and the financial statements, including the disclosures, and whether the
consolidated financial statements and the financial statements represent the
underlying transactions and events in a manner that gives a true and fair view.
• Plan and perform the Group audit to obtain sufficient appropriate audit evidence
regarding the financial information of the entities or business units within the Group
as a basis for expressing an opinion on the consolidated financial statements and
the financial statements. We are responsible for the direction, supervision and
review of the audit work performed for purposes of the Group audit. We remain
solely responsible for our audit opinion
We communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence, and to communicate with
them all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards or actions taken to eliminate
threats.
From the matters communicated with those charged with governance, we determine
those matters that were of most significance in the audit of the consolidated financial
statements and the financial statements of the current period and are therefore the key
audit matters. We describe these matters in our auditor’s report unless law or regulation
precludes public disclosure about the matter or when, in extremely rare circumstances,
we determine that a matter should not be communicated in our report because the
adverse consequences of doing so would reasonably be expected to outweigh the public
interest benefits of such communication.
Annual Report 2025 │ Independent Auditor's Report
57
REPORTS ON OTHER LEGAL AND REGULATORY REQUIREMENTS
Report on compliance with the ESEF Regulation
As part of our audit of the consolidated financial statements and the financial statements for
German High Street Properties A/S we performed procedures to express an opinion on
whether the annual report for the financial year 1 January 2025 to 31 December 2025 with
the filename 529900BT3M81VV58P678-2025-12-31-en.zip is prepared, in all material
aspects, in compliance with the Commission Delegated Regulation (EU) 2019/815 on the
European Single Electronic Format (ESEF Regulation) which includes requirements related
to the preparation of the annual report in XHTML format and iXBRL tagging of the
Consolidated Financial Statements including notes.
Management is responsible for preparing an annual report that complies with the ESEF
Regulation. This responsibility includes:
• The preparing of the annual report in XHTML format;
• The selection and application of appropriate iXBRL tags, including extensions to the
ESEF taxonomy and the anchoring thereof to elements in the taxonomy, for all financial
information required to be tagged using judgement where necessary;
• Ensuring consistency between iXBRL tagged data and the Consolidated Financial
Statements presented in human-readable format; and
• For such internal control as Management determines necessary to enable the
preparation of an annual report that is compliant with the ESEF Regulation.
Our responsibility is, based on the evidence we have obtained, to obtain reasonable
assurance on whether the annual report is prepared, in all material respects, in
compliance with the ESEF Regulation, and to issue a report that includes our opinion.
The nature, timing and extent of procedures selected depend on the auditor’s
judgement, including the assessment of the risks of material departures from the
requirements set out in the ESEF Regulation, whether due to fraud or error. The
procedures include:
• Testing whether the annual report is prepared in XHTML format;
• Obtaining an understanding of the Company’s iXBRL tagging process and of
internal control over the tagging process;
• Evaluating the completeness of the iXBRL tagging of the Consolidated Financial
Statements including notes;
• Evaluating the appropriateness of the Company’s use of iXBRL elements selected
from the ESEF taxonomy and the creation of extension elements where no suitable
element in the ESEF taxonomy has been identified;
• Evaluating the use of anchoring of extension elements to elements in the ESEF
taxonomy; and
• Reconciling the iXBRL tagged data with the audited Consolidated Financial
Statements.
Annual Report 2025 │ Independent Auditor's Report
58
In our opinion, the annual report of German High Street Properties A/S for the financial year 1
January to 31 December 2025 with the file name 529900BT3M81VV58P678-2025-12-31-en.zip is
prepared, in all material respects, in compliance with the ESEF Regulation.
Violation of the Danish Withholding Tax Act
In connection with the payment of fees to certain members the Board of Directors, the Company has
failed to comply with the Danish Withholding Tax Act, and Management may therefore incur liability.
After the balance sheet date, Management has initiated corrective actions to ensure future
compliance, including adjustments to the method of payment and the handling of withholding tax.
Slagelse, March 31, 2026
Beierholm
Godkendt Revisionspartnerselskab
CVR no 32895468
Frederik Søndergaard Kjelkvist
State Authorised Public Accountant
Christian Buchwald Nielsen
State Authorised Public Accountant
mne44106 mne50563
Annual Report 2025 │ Independent Auditor's Report
59
Schillerstrasse 4, 60313 Frankfurt am Main, Germany
Income Statement Other Comprehensive Income
Annual Report 2025 │ Income Statement and Other Comprehensive Income
60
EUR 1.000 Note 2025 2024 2025 2024
Revenue 4,976 4,698 239 244
Property operation expenses
-1,630 -1,423 0 0
Operating income 3,346 3,275 239 244
Staff expenses
4 -500 -484 -324 -324
Administrative expenses
5 -1,047 -943 -980 -880
Result before fair market value
adjustments and interests
1,799 1,848 -1,065 -960
Gain/losses from subsidiaries 0 0 -4,983 292
Fair market value adjustment of
investment properties
7 -7,244 -156 0 0
Result before interests and tax -5,445 1,692 -6,048 -668
Financial income
131 142 131 142
Financial expenses
8 -1,220 -1,917 -62 -94
Result of continuing activities before
tax
-6,534 -83 -5,979 -620
Tax of continuing activities
9 607 -56 86 123
Result of continuing activities after tax -5,927 -139 -5,893 -497
Result of discontinued activities after tax
6 0 -348 0 0
Result for the period -5,927 -487 -5,893 -497
The Parent Company’s shareholders -5,893 -497 -5,893 -497
The minority interests' share
-34 10 0 0
Result for the period -5,927 -487 -5,893 -497
Earnings per share (EUR), continuing
activity
11 -1.62 -0.04 -1.61 -0.14
Earnings per share (EUR), discontinuing
activity
11 0.00 -0.10 0.00 0.00
Group Parent company
EUR 1.000
2025 2024 2025 2024
Result for the period -5,927 -487 -5,893 -497
Items that may be reclassified to
profit/loss for the year
Exchange differences on translation of
foreign operations
-3 0 -3 0
Tax on other comprehensive income,
income/expense
0 0 0 0
Other comprehensive income, net of tax -3 0 -3 0
Total comprehensive income for the
year
-5,930 -487 -5,896 -497
The Parent Company’s shareholders
-5,896 -497 -5,896 -497
The minority interests' share
-34 10 0 0
Total comprehensive income for the
year
-5,930 -487 -5,896 -497
Group Parent company
Equity and LiabilitiesAssets
Balance Sheet
Annual Report 2025 │ Balance Sheet
61
EUR 1.000 Note 2025 2024 2025 2024
Investment properties 12
88,082 91,100 0 0
Investments in subsidiaries 14
0 0 56,324 61,300
Other receivables
1,222 1,264 1,222 1,264
Deferred tax assets 15
0 0 0 0
Total non-current assets 89,304 92,364 57,546 62,564
Assets held for sales 13
0 0 0 0
Trade receivables 16
226 257 35 244
Income tax receivables
184 143 184 299
Other receivables
1,093 1,364 196 202
Receivables from group entities 17
0 0 6,228 5,754
Liquid assets 18
3,485 3,590 1,321 1,880
Total current assets 4,988 5,354 7,964 8,379
Total assets 94,292 97,718 65,510 70,943
Group Parent company
EUR 1.000 Note 2025 2024 2025 2024
Share capital 19
4,900 4,900 4,900 4,900
Foreign currency translation reserve
10 13 338 341
Share premium 47,379 47,379 5,062 5,062
Reserve for net valuation under the equity
method
0 0 16,502 21,485
Retained earnings 10
4,803 10,696 30,290 31,200
Equity attributable to shareholders of the
Parent Company
57,092 62,988 57,092 62,988
The minority interests' share 80 114 0 0
Total equity 57,172 63,102 57,092 62,988
Borrowings 20
29,780 27,269 0 0
Deferred tax liabilities 21
5,030 5,524 0 0
Other payables
0 0 0 0
Total non-current liabilities 34,810 32,793 0 0
Borrowings 22
814 646 0 0
Trade payables
443 251 395 117
Payables to group entities 17
0 0 7,924 7,739
Other payables
1,053 926 99 99
Total current liabilities 2,310 1,823 8,418 7,955
Total equity and liabilities 94,292 97,718 65,510 70,943
Group Parent company
Statement of Equity (Group)
Annual Report 2025 │ Statement of Equity (Group)
62
EUR 1000
Share
capital
Foreign
currency
translation
reserve
Share
premium
Retained
earnings
Equity
attributable
to
shareholders
of the Parent
Company
The
minority
interests'
share
Total
equity
Total equity at the beginning 2024 4,082 13 42,317 11,193 57,605 104 57,709
Capital increase on September 24, 2024 818 0 5,062 0 5,880 0 5,880
Result for the period 0 0 0 -497 -497 10 -487
Other comprehensive income, net of tax 0 0 0 0 0 0 0
Total equity at the end of 2024 4,900 13 47,379 10,696 62,988 114 63,102
Result for the period 0 0 0 -5,893 -5,893 -34 -5,927
Other comprehensive income, net of tax 0 -3 0 0 -3 0 -3
Total equity at the end of 2025 4,900 10 47,379 4,803 57,092 80 57,172
Statement of Equity (Parent Company)
Annual Report 2025 │ Statement of Equity (Parent Company)
63
EUR 1000
Share
capital
Foreign
currency
translation
reserve
Share
premium
Reserve
for net
valuation
under the
equity
method
Retained
earnings
Total
equity
Total equity at the beginning 2024 4,082 341 0 21,193 31,989 57,605
Capital increase on September 24, 2024 818 0 5,062 0 5,880
Result for the period 0 0 0 292 -789 -497
Other comprehensive income, net of tax 0 0 0 0 0 0
Total equity at the end of 2024 4,900 341 5,062 21,485 31,200 62,988
Result for the period 0 0 0 -4,983 -910 -5,893
Other comprehensive income, net of tax 0 -3 0 0 0 -3
Total equity at the end of 2025 4,900 338 5,062 16,502 30,290 57,092
Statement of Cash Flow
Annual Report 2025 │ Statement of Cash Flow
64
EUR 1.000 Note 2025 2024 2025 2024
Profit/loss for the period -5,927 -487 -5,893 -497
Gain/losses from subsidiaries 0 0 4,983 -292
Fair market value adjustment of
investment properties
7,244 156 0 0
Fair market value adjustment from assets
held for sales
0 348 0 0
Financial income -131 -142 -131 -142
Financial expenses 1,220 1,917 62 94
Tax for the year -607 56 -86 -123
Net cash flow from operating activities
before change in net working capital
1,799 1,848 -1,065 -960
Change in receivables 206 71 -206 -3,705
Change in trade and other payables 319 -44 463 262
Net cash flow from operating activities
before interest and taxes paid
2,324 1,875 -808 -4,403
Finance expenses – net -1,089 -1,775 69 48
Income tax paid/received 210 377 183 321
Net cash flow from operating activities
after interest and taxes paid
1,445 477 -556 -4,034
Group Parent company
EUR 1.000 Note 2025 2024 2025 2024
Sale of investment property 0 4,583 0 0
Purchase of investment property 12 -3,582 0 0 0
Additions during the year related to
investment property
12 -644 -256 0 0
Net cash flows from investment
activities
-4,226 4,327 0 0
Proceeds from borrowings 23 3,354 0 0 0
Capital increase, net 0 5,880 0 5,880
Repayment of borrowings 23 -675 -9,742 0 0
Cash flow from financing activities 2,679 -3,862 0 5,880
Net cash flow for the year -102 942 -556 1,846
Cash and cash equivalents 1 January 3,590 2,648 1,880 34
Effects of exchange rate changes on cash
and cash equivalents
-3 0 -3 0
Cash and cash equivalents 31
December
3,485 3,590 1,321 1,880
Group Parent company
Note 1 – Material Accounting Policy Information
Note 2 – Significant Accounting, Estimates and Judgments
Note 3 – Segment Information
Note 4 – Staff Expenses
Note 5 – Administration Expenses
Note 6 – Result of Discontinued Activities after Tax
Note 7 – Value Adjustment of Investment Properties
Note 8 – Financial Expenses
Note 9 – Tax
Note 10 – Allocation of Profits
Note 11 – Earnings per Share
Note 12 – Investment Properties
Note 13 – Assets Held for Sale
Note 14 – Equity Interest in Subsidiaries
Note 15 – Deferred Tax Asset
Note 16 – Receivables from Tenants
66
75
77
78
79
80
81
81
82
83
83
84
86
87
88
89
Note 17 – Accounts Receivables and/or Payable with Subsidiaries
Note 18 – Cash
Note 19 – Share Capital
Note 20 – Financial Liabilities
Note 21 – Deferred Tax Liability
Note 22 – Financial Instruments
Note 23 – Change in Debt Obligations
Note 24 – Currency Exposure
Note 25 – Cash Management and Other Risks
Note 26 – Contractual Obligations
Note 27 – Pledges and Security Arrangements
Note 28 – Contingent Liabilities
Note 29 – Related Parties
Note 30 – Fair Value Hierarchy for Investment Properties and Financial Instruments
Note 31 – Subsequent Events
90
90
91
93
94
95
97
97
98
98
99
99
100
101
102
Notes
Annual Report 2025 │ Notes
65
Note 1 – Material Accounting Policy Information
General
The Parent Company's consolidated financial statements and annual financial statements are
prepared in accordance with the IFRS accounting standards (IFRS) as approved by the EU, the
IFRS decree issued under the Danish Financial Statement Act, and the additional regulations of
Nasdaq Copenhagen for companies with listed shares.
The consolidated financial and annual financial statements for the Parent Company for 2025 are
presented in EUR 1,000.
The applied accounting practices are unchanged compared to the annual financial statements for
2024.
New and Amended Standards Effective for the Financial Year Beginning 1 January 2025
The Group has applied the following amendment for the first time for its annual reporting period
commencing 1 January 2025:
• Lack of Exchangeability – amendments to IAS 21
The amendment did not have a material impact on the Group’s financial statements.
New Accounting Regulation.
At the time of publication of this annual report, a number of new or revised standards
and interpretations have been issued, but they have not yet come into effect and have
not been approved by the EU.
IASB has issued a new international accounting standard that replaces IAS 1 as of
January 1, 2027. The replacement of IAS 1 is IFRS 18 and will affect the Group in
terms of the presentation and information in the annual report.
The new standard sets more explicit requirements for the presentation of performance
measures, information on management-defined performance measures, as well as
fewer changes and clarifications. Among other things, the general principles for the
presentation of financial statements in IAS 1 are the same in IFRS 18.
Further new and revised standards and interpretations are not expected to have a
significant impact on the annual report for the coming financial years.
Annual Report 2025 │ Note 1 – Material Accounting Policy Information
66
Consolidation Practices
The consolidated financial statements include the Parent Company German High
Street Properties A/S and companies in which the Parent Company directly or
indirectly holds the majority of voting rights or has a controlling influence through
share ownership or otherwise.
In the consolidation, items of a similar nature are combined.
The financial statements used for consolidation are prepared in accordance with
the Group's accounting practices.
The Parent Company's capital shares in the consolidated subsidiaries were offset
against the Parent Company's share of the subsidiaries' book value when the
Group relationship was established.
Foreign Currency Translation
Functional currency
In the consolidated financial statements, the items contained in the annual reports of the
Group companies are measured in the currency used in the primary economic environment
where the companies operate (functional currency). The functional currency is:
For the Danish Parent Company: DKK
For the German subsidiaries: EUR
Transactions in currencies other than the functional currency are foreign currency
transactions.
Annual Report 2025 │ Note 1 – Material Accounting Policy Information
67
Foreign Currency Transactions
Transactions in a currency other than the functional currency are translated at the
exchange rate on the transaction date for initial recognition. Receivables, liabilities, and
other monetary items in foreign currency that have not been settled at the balance
sheet date are translated at the exchange rate on the balance sheet date. Exchange
rate differences arising between the exchange rate on the transaction date and the rate
on the payment date or the balance sheet date are recognized in the income statement
as financial items. Tangible and intangible assets, inventories, and other non-monetary
assets purchased in foreign currency and measured based on historical costs are
translated at the exchange rate on the transaction date. Non-monetary items revalued
to fair market value or written down are translated using the exchange rate at the time
of revaluation or write-down.
Presentation Currency
The annual report is presented in EUR (presentation currency) because all the Group's
significant transactions and accounting items are in EUR.
When recognizing in the consolidated financial statements of companies with a different functional currency
than the Euro (EUR), income statements are converted at the average exchange rates for the year unless
these differ significantly from the actual exchange rates at the times of transactions. In the latter case, the
actual exchange rates are used. Balance sheet items are translated at the exchange rates on the balance
sheet date.
Exchange rate differences arising from the translation of balance sheet items at the beginning of the year to
the exchange rates on the balance sheet date and from translating income statements from average rates to
the balance sheet date rates are recognized in other comprehensive income and classified as a separate
reserve under equity. This translation also includes exchange rate differences arising from the translation of
intra-Group balances where settlement is neither planned nor likely in the foreseeable future, as such
balances are considered an addition to or deduction from the net investment. Similarly, other comprehensive
income also recognizes exchange rate differences resulting from changes directly in the entity's equity.
Other Management Levels:
The Group had fewer than 50 employees and is therefore not obligated to establish and report on a policy for
increasing the underrepresented gender in other management layers.
Annual Report 2025 │ Note 1 – Material Accounting Policy Information
68
Items in the Income Statement
Revenue:
Rental income is measured at the fair value of the consideration received or
receivable. Net rental income is calculated excluding VAT and after deducting
discounts.
Rental income is recognized in accordance with the provisions of IFRS 16.
Rental income from operating lease contracts is recognized on a straight-line basis
over the term of the lease contract.
The Group has no contingent rental income.
Operating Costs of Properties
Operating costs include expenses incurred to achieve the year's revenue. They also
include direct and indirect operating costs, such as repairs and maintenance, that do
not add new and improved features to the properties and property management.
Personnel Costs
Personnel costs include wages and staff expenses incurred in the management and
administration of the Group.
Administrative Expenses
Administrative expenses include costs incurred during the year for the management and
administration of the Group.
Gain/losses from subsidiaries
The proportionate share of the result for the year from shareholdings in subsidiaries is recognized in
the income statement under the item "Gain/losses from subsidiaries ".
Fair market value adjustment of investment properties
Changes in the fair market value of investment properties are recognized in the income statement
under the item "Fair market value adjustment of investment properties ".
Financial Income and Expenses
Financial income and expenses include interest, realized and unrealized foreign exchange
adjustments, and amortization of loan costs to credit institutions.
Annual Report 2025 │ Note 1 – Material Accounting Policy Information
69
Tax on the Year’s Result
The current tax for the year and deferred tax for the year are recognized in the income
statement for the portion that can be attributed to the year's result, in other comprehensive
income for the portion that can be attributed to other comprehensive income, and directly in
equity for the portion that can be attributed to equity transactions.
Changes in deferred tax due to changes in tax rates are recognized in the income statement.
The Parent Company is jointly taxed with Kartago Property ApS.
Discontinued Operation
The results of discontinued operations are presented separately in the income statement,
and the cash flows from discontinued activities are presented separately in note 6.
Discontinued Operation is defined as the cessation of property operations in a specific
geographic region.
Items in the Balance Sheet
Investment Properties: Investment properties are properties held to earn rental income
and/or capital gains.
Investment properties are initially measured at cost, including the properties' purchase price
and any directly attributable costs.
Subsequently, investment properties are measured at fair market value. See note 2 for a
description of the measurement of investment properties at fair market value.
Costs that add new or improved features to an investment property compared to the time of
acquisition and thereby improve the property's future returns are added to the acquisition
cost as improvements. Costs that do not add new or improved features to an investment
property are expensed in the income statement under the operating costs of the properties.
Interest costs are not included in the cost of investment properties, as they are measured at
fair market value.
Value adjustments are recognized in the income statement.
Properties expected to be sold are reclassified as “Assets held for sale".
Annual Report 2025 │ Note 1 – Material Accounting Policy Information
70
Investments in Subsidiaries
The proportionate share of the year's result is recognized in the income statement
under the item "Gain/losses from subsidiaries."
Investments in subsidiaries are recognized and measured using the equity method.
Under the item " Investments in subsidiaries," the proportional ownership share of the
companies' book value is recognized in the balance sheet based on the fair market
value of the identifiable net assets at the time of acquisition.
The total net increase in investments in subsidiaries is allocated via profit distribution
to the "Reserve for net valuation under the equity method" under equity. Dividend
distributions to the Parent Company reduce the reserve and adjust it for other equity
movements in the subsidiaries.
Subsidiaries with a negative book value are recognized at EUR 0. If the Parent
Company has a legal or factual obligation to cover the Group's participants' deficit, a
provision for this obligation is recognized.
Receivables from Group Entities
Receivables from Group entities are measured at amortized cost in the Parent Company's
accounts, which corresponds to their nominal value. Impairments on receivables are made
when it is expected that the Group will not be able to recover all amounts due by the original
terms of the receivables. The impairment is calculated based on an individual assessment of
each receivable and represents the difference between the carrying amount and the present
value of expected future payments.
Receivables
Receivables are recognized in the balance sheet at fair market value at initial recognition
and subsequently measured at amortized cost, corresponding to their nominal value.
Impairments on receivables are made when it is expected that the Group will not be able to
recover all amounts due to the original terms of the receivables. The impairment is
calculated based on an individual assessment of each receivable and represents the
difference between the carrying amount and the present value of expected future payments.
Annual Report 2025 │ Note 1 – Material Accounting Policy Information
71
Cash and Short-term Deposits
Liquid assets consist of cash holdings, deposits in bank accounts, and
other short-term, highly liquid investments with an insignificant risk of
value changes and with original maturities of no more than three months.
Equity
Dividends proposed by management for distribution for the fiscal year are
shown as separate items under equity.
Purchase and disposal prices and dividends for own shares are
recognized directly in retained earnings in equity.
Financial Liabilities
Mortgage loans and loans from credit institutions related to investment properties are
recognized at the time of borrowing, as the proceeds received less transaction costs
incurred. In subsequent periods, the loans are measured at amortized cost, so the
difference between the proceeds and the nominal value is recognized in the income
statement as an interest expense over the loan period using the effective interest method.
Loans are classified as short-term liabilities unless the Group has an unconditional right
to defer the debt settlement for at least one year from the balance sheet date.
Annual Report 2025 │ Note 1 – Material Accounting Policy Information
72
Deferred Tax
Using the balance sheet liability method, deferred tax is recognized on all temporary
differences between the accounting and tax values of assets and liabilities.
Deferred tax is measured based on the tax rules and rates applicable under the legislation at
the balance sheet date when it is expected to be realized as the current tax. In cases where
the valuation of the tax value can be performed under alternative taxation rules, deferred tax
is measured based on the planned use of the asset or settlement of the liability. Deferred tax
on investment properties is calculated as the tax effect of selling the properties at their
accounting value on the balance sheet date.
Deferred tax assets, including the tax value of tax losses that can be carried forward, are
measured at the value at which the asset is expected to be realized, either through offsetting
in the tax of future earnings or by offsetting against deferred tax liabilities.
Fair Market Value Measurement and Disclosure
The fair market value of financial instruments traded in an active market is measured at the
latest quoted price.
The valuation is based as far as possible on observable market data. The fair market value
of loans is based on the Group's current interest rate for comparable loans.
Cash Flow Statement
The cash flow statement shows the Group's cash flow for the year, divided into operating,
investing, and financing activities, the year's change in liquidity, and the Group's liquidity at
the beginning and end of the year. The liquidity effect of purchases and sales of businesses
is shown separately under cash flows from investing activities. In the cash flow statement,
cash flows relating to purchased companies are recognized from the date of acquisition, and
cash flows relating to sold companies are recognized up to the date of sale.
The cash flow statement is prepared using an indirect method based on the year's profit
before tax.
Cash Flow from Operating Activities
Cash flow from operating activities is calculated as the year's profit adjusted for changes in
working capital and non-cash income items such as depreciation and provisions. Working
capital includes short-term assets minus short-term liabilities, excluding items included in
liquidity.
Cash flow from Investment Activities
Cash flow from investment activities includes cash flow from purchasing and selling
intangible, tangible, and financial fixed assets.
Annual Report 2025 │ Note 1 – Material Accounting Policy Information
73
Equity ratio, % = Equity * 100 ÷ Total assetsBank debt * 100 ÷ Investment properties at the Loan to value % =beginning of the period(Revenue - Property operation expenses) * 100 ÷ Return on property portfolio % =Investment properties at the beginning of the periodReturn on equity before fair Result before fair market value adjustments and market value adjustments and =interests * 100 ÷ Total equity at the beginning of the interests %period(Result before fair market value adjustments and Interest coverage ratio =interests + Financial income) ÷ Financial expensesResult of continuing activities after tax ÷ Number of Earnings per share =sharesEquity per share = Total equity ÷ Number of shares
Cash Flow from Financing Activities
Cash flow from financing activities includes cash flow from raising and
repaying long-term debt obligations, as well as payments to and from the
Group's participants.
Liquidity
Liquid holdings in the cash flow statement include bank account deposits
and other short-term, easily tradable investments with an insignificant risk
of value change, which are not pledged as security.
Liquid holdings in the balance sheet include those available for free use
and those pledged as security for lenders.
The cash flow statement cannot be derived solely from the published
financial statements.
Annual Report 2025 │ Note 1 – Material Accounting Policy Information
74
Note 2 – Significant Accounting, Estimates and
Judgments
In preparing financial statements, management makes several estimates
and judgments regarding future conditions, involving measuring
accounting assets and liabilities.
Management considers the following estimates and judgments the most
significant for the Group.
Measurement of Investment Properties at Fair Market Value
The management assesses that the selected accounting policy, where
investment properties are measured at fair market value, provides the
best expression of the Group's assets and liabilities, financial position,
and the results of the Group's activities.
The chosen accounting policy can have significant implications for the income
statement and balance sheet. Fluctuations in fair market value during the
financial year will affect the measurement of investment properties in the
balance sheet and will be reflected in the income statement.
The best evidence of fair market values for the Group's investment properties is
current prices in an active market for similar investment properties. In the
absence of such information, fair market value is determined within a range of
probable estimated values (level 3 in the fair value hierarchy).
Annual Report 2025 │ Note 2 – Significant Accounting, Estimates and Judgments
75
The Company has chosen to measure the investment property in Denmark at fair market
value. Upon initial recognition in the year of acquisition, it is the Group's assessment that
the fair market value of the property as of 31 December 2025 corresponds to the total
acquisition cost.
Tax
The Group has taxable activities in Denmark and Germany, and the current tax is
calculated based on the expected taxable incomes in both countries. If the tax authorities
disagree with the estimates made upon reviewing the Group's tax returns, the previously
calculated tax can change.
Additionally, deferred tax is calculated based on an assessment of the future current tax
that will be payable in relation to items in the financial statements. This assessment is
based on expectations of future taxable profits and tax planning strategies, including
expectations regarding exit strategies. Future changes in legislation governing corporate
tax rules and other changes in these expectations, including whether the sale occurs as a
sale of shares or as a sale of individual properties, can thus cause the future payable tax
to differ significantly from the calculated deferred tax. This year's tax calculation is detailed
in note 9, and the tax assets and deferred tax are outlined in notes 15 and 21, respectively.
For the German investment properties management has obtained a valuation from the external
valuer Ralph Hagedorn GmbH & Co. KG to support the fair market value determined by
management. The Board has chosen to value the German properties at EUR 84.5 million in the
annual report (2024: EUR 91.1 million). Management assesses that the recorded value of the
German investment properties is their fair market value as of December 31, 2025.
The method used for valuing the fair market value of the German investment properties is based
on the property's expected gross rental income and the so-called gross capitalization factor. The
fair market value of the investment property is calculated as the product of the expected gross
rental income and gross capitalization factor and is determined property by property, see note 12.
The capitalization factor depends indirectly on the expected return and the risk of return on
investment in alternative asset classes as well as the covariation on the return and risk of these
asset classes. Property specific risks i.e., regarding vacancy, letting period, required investments
to achieve gross rental income, etc., are included in the capitalization. Economic factors such as
interest rates, inflation and economic growth can affect the expected return and risk of alternative
asset classes and thus the capitalization factor of the properties.
Annual Report 2025 │ Note 2 – Significant Accounting, Estimates and Judgments
76
Note 3 – Segment Information
The Group holds thirteen German retail properties located in major cities across Germany, as well
as one property in Denmark. Business activities are managed, reported, and presented in terms of
revenue and operating income within the following segments: Commercial, Residential, Office,
Service Change, and other for 2025. Consequently, the income statement for the period from
January 1 to December 31, 2025, is divided into these specific segments.
Profit January 1 to December 31, 2025, Segment Information Profit January 1 to December 31, 2024, Segment Information
Annual Report 2025 │ Note 3 – Segment Information
77
Service EUR 1000 Commercial Residential Officecharge and GroupotherRevenue 3,302 549 349 776 4,976Property operation expenses -869 -371 -390 0 -1,630Operating income 2,433 178 -41 776 3,346Staff expenses -500Administrative expenses -1,047Result before fair market value 1,799adjustment and interestsFair market value adjustment of -7,244investment propertiesResult before interests and tax -5,445Financial expenses, net -1,089Result of continuing activities -6,534before tax
Service Commercial Residential Officecharge and GroupEUR 1000otherRevenue 3,159 499 371 669 4,698Property operation expenses -758 -324 -341 0 -1,423Operating income 2,401 175 30 669 3,275Staff expenses -484Administrative expenses -943Result before fair market value adjustment and interests1,848Fair market value adjustment of investment properties-156Result before interests and tax 1,692Financial expenses, net -1,775Result of continuing activities before tax-83
Unallocated costs relate to Group-level items that cannot be directly attributed.
Segment assets, segment liabilities and related information are not regularly reported to the Board of
Directors and other Management Levels and are therefore not disclosed in the segment information.
Note 4 – Staff Expenses
The Group has 3 employees in 2025 (3 employees in 2024).
Act. In addition, no Board and executive management members are entitled to compensation
upon termination of employment.
The Company believes that the remuneration of the Board and executive management supports
the Group's strategy and is in accordance with its interests, good practices, and
recommendations for good corporate governance.
The Company’s Board is compensated with a fixed honorarium and does not receive incentive-
based remuneration. The base honorarium for the Board is set at a market-conforming level that
reflects the demands of Board members.
Effective from January 1, 2025, the Board’s remuneration amounts to an annual basic honorarium
of EUR 30 thousand per member. The chairman receives the basic honorarium three times.
The Board determines the salary and employment conditions for the executive management at
least once a year based on a recommendation from the chairperson. The director is not part of any
incentive scheme. Michael Hansen received EUR 108,725 in 2025.
The employment contract for Michael Hansen (stepped down as CEO on December 31, 2025) and
Martin Ernst (joined as CEO on December 31, 2025) follows the notice period of the Employee's
Annual Report 2025 │ Note 4 – Staff Expenses
78
Remuneration of the Board amounted to a total of T.EUR 150 for the year (2024 T.EUR 160).
The executive management's remuneration is T.EUR 109 and is settled by German High Street Properties A/S. The
executive management is closely related to the Kartago Group.
Group Parent companyEUR 1.000 2025 2024 2025 2024Executive management's 109 120 109 120remuneration Other employee salaries and costs 241 204 65 44Board fee 150 160 150 160Salary costs total:500 484 324 324
Annual remuneration
EUR 1,000
Board of Directors2025 2024Hans Thygesen 90.0 90.0Nikolaj Claude Olof Zethraeus, Vice-Chairman of the 30.0 30.0BoardTotal annual remuneration: 259.0 280.0René Angenend (joined the board on April 30, 2025) 20.0 0.0Jutta Steinert (stepped down from the board on April 30, 10.0 30.02025)Walther Thygesen (stepped down from the board on April 0.0 10.030, 2024)150.0 160.0Key management personnelMichael Hansen (stepped down as CEO on December 31, 109.0 120.02025)Martin Ernst (joined as CEO on December 31, 2025) 0.0 0.0
Note 5 – Administrative Expenses
Annual Report 2025 │ Note 5 – Administration Expenses
79
Group Parent companyEUR 1.000 2025 2024 2025 2024Administration agreement 576 589 576 589Legal costs (relating to advice concerning the scrutiny and replies to 163 0 163 0questions from certain shareholders)Stockexchange fees 51 61 51 61Auditors 76 89 76 89Insurance 62 6 62 6Other administration costs 119 198 52 135Administration costs total:1,047 943 980 880
Fee to the Auditor Elected by the General AssemblyGroup Parent companyEUR 1.000 2025 2024 2025 2024Audit fee 76 89 76 89Declaration tasks with certainty 0 0 0 0Tax advice 0 0 0 0Other 0 0 0 0Total audit fee:76 89 76 89
Note 6 – Result of Discontinued Activities after Tax
Discontinued activities concern the sale of the property at Hesselvang 11,
Grenaa, according to stock exchange announcement no. 250 dated December
29, 2023. The sale of the property took effect on January 15, 2024.
In 2025 there have been no discontinued activities.
Annual Report 2025 │ Note 6 – Result of Discontinued Activities after Tax
80
Group Parent companyEUR 1.0002025 2024 2025 2024Revenue 0 0 0 0Property operation expenses 0 0 0 0Result before fair market value 0 0 0 0adjustments and interestsChange in value and gains/losses from assets 0 -446 0 0held for salesFinancial expenses0 0 0 0Result of discontinued activities before 0 -446 0 0taxTax of discontinuing activities0 98 0 0Result of discontinued activities after tax 0 -348 0 0Earnings per share (EUR), discontinuing 0.00 -0.10activityEUR 1.0002025 2024Net cash flow from operating activities after 0 0interest and taxes paidNet cash flows from investing activities 0 4,583Cash flow from financing activities 0 -2,994 Net cash flow for the year 0 1,589
Note 7 – Value Adjustment of Investment
Properties
The year's value adjustment is calculated as the difference
between the fair market value, EUR 88.1 million as of December
31, 2025, and the value as of December 31, 2024, EUR 91.1
million, adjusted for the year's additions and disposals, as well as
currency exchange adjustment according to note 12.
Note 8 – Financial Expenses
Annual Report 2025 │ Note 7 – Value Adjustment of investment Properties & Note 8 – Financial Expenses
81
Group Parent companyEUR 1.000 2025 2024 2025 2024Interest expenses to credit institutions 1,190 1,887 0 0Depreciation of capitalized borrowing costs 30 30 0 0Interest expenses to financial institutions 0 0 0 0Interest to subsidiaries 0 0 62 94Total financial expenses 1,220 1,917 62 94
Note 9 – Tax
The Group is taxed 22.0 % on Danish income and 15.825 % on German
income. The average tax has been calculated based on local tax rates. The
Parent Company is jointly taxed with Kartago Property ApS.
According to notes 15 and 21, the deferred tax is recognized as a long-term
asset and liability for the Parent Company and the Group, respectively. The
ownership period of German properties is expected to exceed ten years,
and regular disposals of German properties and property companies are
not part of the Group's strategy.
Annual Report 2025 │ Note 9 – Tax
82
Group Parent companyEUR 1.0002025 2024 2025 2024Current tax -210 -45 -183 -201 Tax previous year etc. 97 126 97 78Deferred tax -494 -25 0 0Total tax for the year -607 56 -86 -123 Of this recognized in other comprehensive 0 0 0 0incomeCurrent tax on other comprehensive income 0 0 0 0Deferred tax on other comprehensive 0 0 0 0incomeTotal tax for the year -607 56 -86 -123 Tax on the year's result is explained as follows:Result of continuing activities before tax -6,534 -83 -5,979 -620 Non-deductible expenses 0 0 163 0Gain/losses from subsidiaries 0 0 4,983 -292 Basis for calculation of tax at local rates -6,534 -83 -833 -912 Tax calculated based on local rates -607 56 -86 -123 Adjustment of tax previous year etc. -480 -126 -97 -78 Total tax for the year, adjusted -1,087 -70 -183 -201 Average tax rate in % 16.6 84.3 22.0 22.0
Note 11 – Earnings per Share
No equity instruments with a diluting effect have been issued. Diluted earnings per share
are equal to earnings per share.
Note 10 – Allocation of Profits
Annual Report 2025 │ Note 10 – Allocation of Profits & Note 11 – Earnings per Share
83
Parent company
EUR 1.000 2025 2024
Available for allocation as of January 1 31,200 31,989
Total comprehensive income for the year -910 -789
Carried forward result as of December 31 30,290 31,200
Earnings per share (EUR), continuing activityGroup2025 2024Result of continuing activities after tax -5,927 -139Weighted average number of outstanding ordinary 3,654 3,654shares in thousandsEarnings per share (EUR), continuing activity -1.62 -0.04
Earnings per share (EUR), discontinuing activityGroup2025 2024Result of discontinued activities after tax 0 -348Weighted average number of outstanding ordinary 3,654 3,654shares in thousandsEarnings per share (EUR), discontinuing activity - -0.10
Earnings per share (EUR), Result for the periodGroup2025 2024Result for the period -5,927 -487Weighted average number of outstanding ordinary 3,654 3,654shares in thousandsEarnings per share (EUR), Result for the period -1.62 -0.13
Note 12 – Investment Properties.
Annual Report 2025 │ Note 12 – Investment Properties
84
For the German investment properties management has obtained a valuation from the
external valuer Ralph Hagedorn GmbH & Co. KG to support the fair market value
determined by management. The Board has chosen to value the German properties at
EUR 84.5 million in the annual report (2024: EUR 91.1 million). Management assesses
that the recorded value of the German investment properties is their fair market value as
of December 31, 2025.
The Company has chosen to measure the investment property in Denmark at fair market
value. Upon initial recognition in the year of acquisition, it is the Group's assessment that
the fair market value of the property as of 31 December 2025 corresponds to the total
acquisition cost.
Investment properties are pledged as security for financial liabilities, EUR 30.6 million.
GroupEUR 1.000 2025 2024Cost price beginning of the year 57,057 56,801 Additions during the year 3,582 0 Improvements during the year 644 256 Cost price end of the year 61,283 57,057 Value adjustments beginning of the year 34,043 34,199 Fair market value adjustment of investment -7,244 -156 properties, netValue adjustments end of the year 26,799 34,043 Book value at the end of the period 88,082 91,100
For the German properties changes in estimates of the expected rental factor will affect the recognized
value of investment properties in the balance sheet. The impact on the value of the investment properties
as a result of changes in the gross capitalization factor is shown below.
Annual Report 2025 │ Note 12 – Investment Properties
85
The method used for valuing the fair market value of the German investment properties
is based on the property's expected gross rental income and the so-called gross
capitalization factor. The fair market value of the investment property is calculated as the
product of the expected gross rental income and the gross capitalization factor and is
below shown by Federal State.
German Properties:
The valuation corresponds to a gross capitalization factor property by property between 11.00
and 24.00 with an average of 17.8 (2024: 19.0).
2025 2024Federal State Factor FactorNordrhein-Westfalen14.7 15.7 Niedersachsen14.8 15.9 Hessen19.3 20.8 Hamburg24.0 25.0 Rheinland-Pfalz17.0 18.4 Baden-Württemberg15.0 15.9 Bayern19.0 20.1
Change in gross capitalization factor 2025 for German -1.5 -0.75 Basis 0.75 1.5propertiesGross capitalization factor 16.30 17.05 17.80 18.55 19.30 Fair market value in EUR 1,000 77,379 80,940 84,500 88,060 91,621Change in fair market value in -7,121 -3,560 0 3,560 7,121EUR 1,000
Change in gross capitalization factor 2024 for German -1.5 -0.75 Basis 0.75 1.5propertiesGross capitalization factor 17.50 18.25 19.00 19.75 20.50 Fair market value in EUR 1,000 83,908 87,504 91,100 94,696 98,292Change in fair market value in -7,192 -3,596 0 3,596 7,192EUR 1,000
The Group's investment properties include commercial and residential rentals leased
on usual terms. In the following statement, only commercial rentals are included. The
average remaining term of German commercial lease contracts is four years and two
months (2024: three years and seven months). In addition, the Group has an annual
residential rental income of EUR 0.5 million (2024: EUR 0.5 million)
The accumulated minimum lease payments for commercial rentals during the non-
cancellable period can be shown as follows:
Note 13 – Assets Held for Sale
Assets held for sale concerned the property at Hesselvang 11, Grenaa, which was sold on January
15, 2024, according to stock exchange announcement no. 250 dated December 29, 2023.
No assets were categorised as held for sale December 31, 2025.
GroupEUR 1.000 2025 2024Cost price beginning of the year 0 4,745Disposal, Hesselvang 11, Grenaa 0 -4,745 Additions, Hesselvang 11, Grenaa 0 0Cost price end of the year 0 0Value adjustmentsValue adjustments beginning of the year 0 629Disposal, Hesselvang 11, Grenaa 0 -629 Fair market value adjustment of Hesselvang 11, Grenaa0 0Value adjustments end of the year 0 0Book value at the end of the period0 0
Annual Report 2025 │ Note 12 – Investment Properties & Note 13 – Assets Held for Sale
86
German propertiesEUR 1.000 2025 2024Before 1 year 3,650 3,429Before 2 year 2,822 2,583Before 3 year 2,062 1,744Before 4 year 1,606 1,102Before 5 year 1,420 757After 5 year 985 688Total accumulated minimum lease payments 12,54510,303
Note 14 – Equity Interest in Subsidiaries
Equity interests in subsidiaries include 100% of GHSP Erste Holding GmbH and 100%
of GHSP Odense – Danmark ApS. As of December 31, 2025, this Group's net asset
value was EUR 56.3 million (EUR 61.3 million in 2024).
Annual Report 2025 │ Note 14 – Equity Interest in Subsidiaries
87
Parent company
EUR 1.000 2025 2024
Cost price January 1 39,815 40,013
Addition, GHSP - Odense, Danmark ApS 7 0
Disposal, Hesselvang 11, Grenaa 0 -198
Cost price December 31 39,822 39,815
Value adjustments January 1 21,485 21,193
The year's result in subsidiary companies -4,983 292
The year's other comprehensive
income in subsidiary companies
0 0
Value adjustments December 31 16,502 21,485
Equity interests in subsidiaries December 31 56,324 61,300
Note 15 – Deferred Tax Asset
The tax specifications are detailed in Notes 9 and 21.
The deferred tax is recognized as a long-term asset. It is expected
to be realized through offsetting in the joint taxation contribution.
There are no unrecognized deferred tax assets.
Annual Report 2025 │ Note 15 – Deferred Tax Asset
88
Group Parent companyEUR 1.000 2025 2024 2025 2024Deferred tax asset as of January 1 0 232 0 223Used in joint taxation -183 -232 -183 -223Deferred tax for the year 183 0 183 0Deferred tax asset as of December 31 0 0 0 0The deferred tax asset is distributed as follows:Carried forward tax loss 0 0 0 0Deferred tax asset 0 0 0 0
Note 16 – Receivables from Tenants
The provision for losses in 2025 is EUR 30,000.
As of December 31, 2025, EUR 256,000 were overdue, compared to EUR
334,000 as of December 31, 2024.
Write-downs are made based on an individual assessment of receivables
from leases to the extent the Group expects to be unable to recover the
arrears. There is no significant concentration of credit risk with individual
tenants. It is assessed that the provisions made are sufficient to ensure that
receivables from letting will be settled.
Annual Report 2025 │ Note 16 – Receivables from Tenants
89
GroupEUR 1.000 2025 2024Receivables from tenant 256 334Provision for losses -30 -77Total receivables from tenant 226 257
GroupEUR 1.000 2025 2024Guarantees at the beginning of the year 839 837Disposal -117 -108Addition 101 110Total guarantees from leasing 823 839
The table below shows bank guarantees received by the company
from the tenants
Note 17 – Accounts Receivables and/or Payable with
Subsidiaries
Note 18 – Cash
Cash and cash equivalents, EUR 3.5 million, are freely available December
31, 2025. (EUR 3.6 million December 31, 2024).
Cash and cash equivalents are held in Jyske Bank, a systemically important
financial institution (SIFI); hence, the credit risk is assessed as limited.
Annual Report 2025 │ Note 17 – Accounts receivables and/or Payable with Subsidiaries & Note 18 – Cash
90
EUR 1.000 2025 2024
Payables to Group entities -7,924 -7,739
Receivables from Group entities 6,228 5,754
-1,696 -1,985
Parent company
Total accounts receivable/payable with subsidiaries
Note 19 – Share Capital
DKK 1.000Shares A-shares B-sharesContribution at establishment in 2007 0 100 900 Cash capital increase through stock market 0 3,550 31,951 issuance in 2007Cancellation of shares 0 0 -6,047 Partial merger of A shares and B shares in 2017 0 -2,750 2,750 Remaining merger of A shares and B shares and 30,454 -900 -29,554 consolidation into one share classCash capital increase through stock market 6,091 0 0 issuance in 2024Total share capital, DKK 36,545 0 0
EUR 1.000 Shares A-shares B-sharesContribution at establishment in 2007 0 13 120 Cash capital increase through stock market 0 476 4,284 issuance in 2007Cancellation of shares 0 0 -811 Partial merger of A shares and B shares in 2017 0 -369 369 Remaining merger of A shares and B shares and 4,082 -120 -3,962 consolidation into one share classCash capital increase through stock market 818 0 0 issuance in 2024Total share capital, EUR 4,900 0 0
Annual Report 2025 │ Note 19 – Share Capital
91
AvatelOne, Schillerstrasse 4, 60313 Frankfurt am Main, Germany
The share capital consists of 3,654,459 shares with a nominal value of
DKK 10 each, each granting one vote. The shares are listed on Nasdaq
Copenhagen and consist of:
• 3,045,383 shares with a nominal value of DKK 10 each, subscribed to
EUR 13.4 (DKK 100) and the share premium at establishment and
capital increase thus totals EUR 44.0 million (DKK 328.5 million).
Each share is granting one vote.
• 609,076 shares with a nominal value of DKK 10 each, subscribed to
EUR 9.8 (DKK 73) and the share premium at establishment and
capital increase thus totals EUR 5.9 million (DKK 43.7 million). Each
share grants one vote.
Shares A-shares B-sharesContribution at establishment in 2007 100,000 10,000 90,000 Cash capital increase through stock market 3,550,083 355,008 3,195,075 issuance in 2007Cancellation of shares 2015 -504,700 0 -504,700 Cancellation of shares 2023 -100,000 0 -100,000 Remaining merger of A shares and B shares 0 -275,000 275,000 and consolidation into one share classAbolition of A shares and B shares 0 -90,008 -2,955,375 Cash capital increase through stock market 609,076 0 0 issuance in 2024Total shares 3,654,459 0 0
Annual Report 2025 │ Note 19 – Share Capital
92
Note 20 – Financial Liabilities
The Group only has variable-rate loans.
All financial liabilities are denominated in EUR or DKK.
The liquidity risk associated with the future maturity of financial
liabilities is hedged by the future returns of investment properties.
See also the accumulated minimum lease payments during the
non-cancellable period in note 12.
Loans are recognized at amortized cost.
The Group has no unused loan facilities as of December 31, 2025.
*) Long-term loans are shown without loan costs (EUR 30 thousand as of December 31, 2025) which are amortized over the term of the loan. Long-term
loans of EUR 29,780 thousand are presented net of EUR 30 thousand in unamortized loan costs in the balance sheet as of December 31, 2025.
The financial liabilities relate to loans from credit institutions according to note 20 and are secured by mortgages on investment properties with a book
value of EUR 88.1 million, see note 12.
Maturity dates for long-term financial liabilities include expected interest payments. Interest payments are based on the interest rate level as of
December 31, 2025.
Group Parent companyEUR 1.000 2025 2024 2025 2024Long-term bank loans* 29,780 27,269 0 0Total long-term liabilities 29,780 27,269 0 0Short-term bank loans* 814 646 0 0Total short-term liabilities 814 646 0 0Book value of total financial liabilities 30,594 27,915 0 0Nominal value of financial liabilities 30,594 27,915 0 0Fair market value of financial liabilities 30,594 27,915 0 0
Annual Report 2025 │ Note 20 – Financial Liabilities
93
As an important part of risk management, management closely monitors the Group's liquidity
reserve, which is intended to ensure that the Group can service its current and future
obligations, including payment of interest and principal to lenders.
Note 21 – Deferred Tax Liability
The deferred tax is recognized as a long-term liability. The ownership period is expected to
exceed 10 years, and regular disposals of properties and property companies are not part of the
Group's strategy.
Annual Report 2025 │ Note 20 – Financial Liabilities & Note 21 – Deferred Tax Liability
94
Group Parent companyEUR 1.000 2025 2024 2025 2024Deferred tax as of January 1 5,524 5,687 0 0Used in group taxation 183 0 0 0Disposal, Hesselvang 11, Grenaa 0 -138 0 0Deferred tax for the year -677 -25 0 0Deferred tax liability as of December 31 5,030 5,524 0 0
The loan facilities are due for renegotiation on February 1, 2030
Parent companyGroupEUR 1.000 2025 2024 2025 2024Maturity between 0 and 1 year 1,958 2,042 0 0Maturity between 1 and 2 years 1,927 2,042 0 0Maturity between 2 and 5 years 31,395 6,126 0 0Maturity after more than 5 years 0 24,685 0 0Total debt service 35,280 34,895 0 0
Group Parent companyEUR 1.000 2025 2024 2025 2024Maturity between 0 and 1 year 1,496 1,177 494 216Maturity between 1 and 2 years 0 0 0 0Maturity between 2 and 5 years 0 0 0 0Maturity after more than 5 years 0 0 0 0Total other payables 1,496 1,177 494 216
Note 22 – Financial Instruments
Generally, receivables from letting and other receivables do not accrue interest. These
items are due within one year. No unique risks are associated with these receivables,
see note 16.
Receivables from subsidiaries and liquid holdings are interest-bearing at market level
and due within one year. No special risks are associated with these assets.
The Group has financed itself with the following loans:
As of December 31, 2025, the Group's outstanding debt amounted to EUR 30.6 million.
As of December 31, 2024, the outstanding debt was EUR 27.9 million.
The loans, totalling EUR 30.6 million, were divided into a standing loan of EUR 15
million and a serial loan that amounted to EUR 15.6 million as of December 31, 2025.
The serial loan is repaid with EUR 813,676 annually.
Annual Report 2025 │ Note 22 – Financial Instruments
95
Group Parent companyEUR 1.000 2025 2024 2025 2024Receivables from tenant 226 257 0 0Other receivables 2,725 2,771 1,637 2,009Receivables from Group entities 0 0 6,228 5,754Cash holdings 3,485 3,590 1,321 1,880Total financial assets at amortized 6,436 6,618 9,186 9,643costMaturity between 1 and 2 years 3,885 2,042 0 0Maturity between 2 and 5 years 5,892 6,126 0 0Maturity after more than 5 years 35,280 34,895 0 0Total long-term financial liabilities 45,057 43,063 0 0at amortized costShort-term financial liabilities 814 646 0 0Other short-term liabilities 1,496 1,177 494 216Payables to Group entities 0 0 7,924 7,739Total short-term debt at amortized 2,310 1,823 8,418 7,955cost
The loans, totalling EUR 30.6 million, were divided into a standing loan of EUR 15 million and a
serial loan that amounted to EUR 15.6 million as of December 31, 2025. The serial loan is repaid
with EUR 813,676 annually.
The loans have been agreed with non-renegotiating clauses from the lenders' side until 2030 if the
DSCR (annual net rent (Kaltmiete)*0.75/annual payments under the loan) is higher than 1.30. A
breach of this will trigger a cash sweep with a binding period of 12 months at a time. If the DSCR
falls further to 1.125, the Bank is entitled to renegotiate the Agreement. In the event of a breach of
the above, the Group and the Borrowers have a cure period of 6 months to bring the facilities back
within the terms of the Agreement.
As of December 31, 2025, the DSCR has been calculated to be 1.74.
The loans related to the German properties bear interest at the 3-month Euribor + 1.75% margin.
As of December 31, 2025, the 3-month Euribor was 2.0%, so the total interest rate, including the
margin, was 3.75% (as of December 31, 2024, the interest rate, including the interest margin, was
approximately 4.25% p.a.).
A change of 1.0 percentage points in the general interest rate level would result in a change in the
Group's annual interest expense before tax of EUR 290,000 which will affect both the Group's
result for the period and the total equity.
The loans related to the Danish property bear interest at the 3-month Cibor + 1.75% margin. As of
December 31, 2025, the 3-month Cibor was 2.0%, so the total interest rate, including the margin,
was 3.75%
Annual Report 2025 │ Note 22 – Financial Instruments
96
EUR 1.0002025Change in rate of interest (in %)+1.0 Base -1.0Yearly financial expenses EUR 000-1,379 -1,089 -799Change in Yearly financial expenses EUR 000-290 0 2902024Change in rate of interest (in %)+1.0 Base -1.0Yearly financial expenses EUR 000-2,193 -1,775 -1,357Change in Yearly financial expenses EUR 000-418 0 418
Note 23 – Change in Debt Obligations
Note 24 – Currency Exposure
The Parent Company's shares are denominated in DKK, while the Group's
investments, revenues, and expenses are incurred in DKK, SEK or EUR. Thus,
all assets and liabilities are denominated in EUR. Therefore, the Group's equity,
and thereby the Parent Company's ability to distribute dividends, is exposed to
changes in the exchange rate.
Furthermore, the management assesses the currency risk associated with
investments in EUR as minimal compared to DKK and SEK.
Group Parent companyEUR 1.000 2025 2024 2025 2024Opening balance 27,915 37,657 0 0Repayments -675 -9,742 0 0Loan redemptions 0 0 0 0New loans 3,354 0 0 0Amortization of loan costs 0 0 0 0Total 30,594 27,915 0 0Short-term loan in the balance 814 646 0 0Long-term loan in the balance 29,780 27,269 0 0Total 30,594 27,915 0 0
Annual Report 2025 │ Note 23 – Change in Debt Obligations & Note 24 – Currency Exposure
97
Note 25 – Cash Management and Other Risks
The Group's objective is to ensure the possibility of continued operations to optimize
shareholders' returns and improve the capital structure to minimize financial costs.
The Group's ability to accumulate sufficient liquidity depends on its operating results
and the possibility of obtaining external financing. The Company's ability to pay
dividends is limited according to the rules of the Companies Act, as the Company can
legally pay dividends only if it has sufficient free liquidity according to its annual report
and if the Company, in the Board's opinion, has a prudent level of capital reserves
relative to the Group's operations and obligations after the distribution.
In addition to liquidity management, the Group assesses its capital reserves based on
solvency which is crucial for obtaining external financing. In line with its strategy, the
Group has a solid capital structure with relatively low leverage with an equity ratio of
60.6% (2024: 64.6%).
Annual Report 2025 │ Note 25 – Cash Management and Other Risks
98
GroupEUR 1.000 2025 2024Total Equity 57,172 63,102Total Assets 94,292 97,718Equity ratio% 60.6% 64.6%
Note 26 – Contractual Obligations
The Group has agreed to a non-terminable management agreement with
Administrationsselskabet Gambit ApS until December 31, 2028. Besides, the Group
has only agreed to contractual obligations customary for a real estate company.
Note 27 – Pledges and Security Arrangements
The Group's investment properties in Germany, with an accounting value as of
December 31, 2025, of EUR 88.1 million are pledged as security for EUR 30.6
million in bank loans.
• Towards the company Hesselvang 11 A/S (CVR no. 44093227), the Parent
Company German High Street Properties A/S has undertaken towards
Ringkjøbing Landbobank A/S, in the event of a forced sale of the property
located at Hesselvang 22, 8500 Grenaa, Denmark, land registry no. 1rl, Hessel
Hgd., Ålsø, to bid Ringkjøbing Landbobank A/S home at the outstanding debt
owed to the Bank at any given time pursuant to the Loan Agreement and the
security documents. The outstanding debt on the property as of December 31,
2025 totals EUR 2.7 million.
• Towards the company Kartago Capital – Stockholm A/S (CVR no. 43265474)
and its subsidiary Kartago Stockholm AB, the Parent Company German High
Street Properties A/S has undertaken towards Ringkjøbing Landbobank A/S, in
the event of a forced sale of the property located at Tomtbergavägen 2, 145 67
Norsberg, Botkyrka, Sweden, to bid Ringkjøbing Landbobank A/S home at the
outstanding debt owed to the Bank at any given time pursuant to the Loan
Agreement and the security documents. The outstanding debt on the property
as of December 31, 2025 totals EUR 3.5 million.
• The Parent Company German High Street Properties A/S has acted as surety for the loan
granted to its subsidiary, GHSP – Odense, Danmark ApS, by Ringkjøbing Landbobank A/S in
the total amount of EUR 3.4 million (DKK 25.1 million).
There are no other security arrangements.
Note 28 – Contingent Liabilities
The Parent Company is jointly and severally liable for the tax on the taxable income of the Danish
Group taxation members. It is also jointly and severally liable for Danish withholding taxes, such as
dividend and interest taxes. Subsequent corrections to corporate taxes and withholding taxes may
increase the Group's liability.
Any subsequent corrections to corporate taxes and withholding taxes may result in the Group's
liability being larger.
The Group must pay the company administrator for 12 months of administration after the property
is disposed of. This obligation ceases when the management agreement expires in 2028.
Annual Report 2025 │ Note 26 – Contractual Obligations, Note 27 – Pledges and Security Arrangements & Note 28 – Contingent Liabilities
99
Note 29 – Related Parties
Alexander and Kristoffer Thygesen control the Group through Drot ApS and Marsk ApS
which are the controlling shareholders in Kartago Property ApS and Kartago ApS, owning
41.78% and 11.99% of the share capital and votes, respectively.
The accounts for German High Street Properties are included in the consolidated
accounts of Kartago Property ApS.
The Group's related parties also include the Parent Company's Board of directors,
executive management, and their close family members. Related parties also include
companies in which the individuals mentioned above have control or joint control.
In addition to the shareholdings controlled by Alexander and Kristoffer Thygesen, the
Board of directors, executive management, and companies where this Group of people
has a controlling influence hold 0 shares.
Annual Report 2025 │ Note 29 – Related Parties
100
Besides remuneration of the director in accordance with the management agreement,
transactions with companies controlled by the Thygesen family have in 2025, as specified below,
included administration fees tEUR 576.0, payment of commercial rent tEUR 15.0 and transaction
costs related to the acquisition of investment property in Odense, Denmark tEUR 163.0.
Parent companyGroupEUR 1.000 2025 2024 2025 2024Administration agreement 576 589 576 589Commercial rent 15 15 15 15Costs related to amendment of the 0 18 0 18existing loan agreementTransaction costs related to sale of 0 39 0 39investment propertyTransaction costs related to the 163 0 0 0acquisition of investment property
Note 30 – Fair Value Hierarchy for Investment Properties and Financial
Instruments
The table below shows classifications of investment properties and financial instruments measured at
fair market value*, divided according to the fair market value hierarchy:
• Level 1: Quoted prices in active markets for identical assets/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.
When calculating the fair value of the Group's liabilities in accordance with level 3 of the fair market
value hierarchy, a correction is made for the Group's own credit rating, taking into account the legal
status of the liabilities and the security in the assets measured at fair value. Consequently, no direct
assumptions of discount factors, etc., are included when measuring liabilities to credit institutions in
accordance with level 3 of the fair value hierarchy for bank loans.
There have been no significant transfers between levels during the fiscal year.
*Bank loans are measured at amortized cost
Group - 2025Balance EUR 1000Level 1 Level 2 Level 3sheet totalLong-term assetsInvestment properties 88,082 88,082Long-term liabilitiesBank loans* 29,780 29,780Short-term liabilitiesBank loans* 814 814
Group - 2024Balance EUR 1000Level 1 Level 2 Level 3sheet totalLong-term assetsInvestment properties 91,100 91,100Long-term liabilitiesBank loans* 27,269 27,269Short-term liabilitiesBank loans* 646 646
Annual Report 2025 │ Note 30 – Fair Value Hierarchy for investment Properties and Financial Instruments
101
Note 31 – Subsequent Events
There have been no subsequent events.
Annual Report 2025 │ Note 31 – Subsequent Events
102
Westliche Karl-Friedrich-Strasse 32-34, 75175 Pforzheim, Germany
Photo: Speicherstadt District, Hamburg, Germany
102
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