XCSE:PARKST-A ESEF Annual Report
PARK STREET A/S (XCSE:PARKST-A)
ESEF Annual Report
2022-09-06
For: 2022-06-30
View Original
Added on
September 22, 2026
Interim
Financial
Report
Half Year 2022
Company:
CVR no.: 12 93 25 02
LEI no.: LEIN913442016122012215420784
Registered office: Cope nhagen , Denmark
Phone: +45 33 33 93 03
Internet: www.psnas.com
E-mail: nordicom@nordicom. dk
Board of Directors:
Management:
CEO Pradeep Pattem
Auditor:
PriceWaterhouseCoopers Statsautoriseret Revisionspartnerselskab
Main activity:
Contents
Directors' report 1
Directors' report 1
Consolidated financial review 2
Consolidated key figures and financial ratios 4
Statements 5
Statement by Board of Directors and Management 5
Financial statements 6
Income statement 6
Statement of comprehensive income 7
Statement of financial position as at 30 June 8
Statement of equity 10
Statement of cash flows 12
Notes 13
Park Street | Interim Financial Report 1
st
Half 2022
Page 1 of 16
Directors' report
Result in the period 1 January – 30 June 2022
Park Street result analysis primarily uses the term EBVAT (earnings before value adjustments and tax) to measure the Group’s operating results.
EBVAT in the first half of 2022 is DKK 23.3 million as compared to DKK 33.1 million for the same period last year. Net sales were unchanged at DKK
76.9 million and the reduction in EBVAT was primarily driven by an increase in expenses associated with closing a new long term debt facility in Q4
2021.
The Group's equity as of 30 June 2022 was positive at DKK 1,079 million, against DKK 1,217 million as of 31 December 2021. The decrease is
primarily due to the repurchase of treasury shares and sale of investment properties.
Property buys and sales
In the 1
st
half of 2022, Park Street sold the following properties:
§ Sale of an Investment property Loftbrovej, Nørresundby
§ Sale of an Investment property Århusvej, Randers
§ Sale of an Investment property Åkirkebyvej, Rønne
Expectations for 2022
Park Street expectations for EBVAT (earnings before value adjustments and tax) at year-end 2022 is at DKK 50 - 55 million.
Park Street has made positive progress with signing of 20 new leases worth over DKK 12 million for 11,000 sqm in the first half of 2022. Several of
these leases require significant capex and refurbishment works which are expected to be completed during H2 2022 and will start generating top line
cashflows during the year. We have also made some progress with the strategy of reducing assets in the geographies and sectors not core to Park
Street. While the sale of assets in the short term will reduce the top and bottom line of the company, our focus on investing in core assets to reduce
vacancies and improve the properties should in the medium term generate significantly improved quality of revenues and profitability. Park Street is
expected to spend over DKK 55 million over H2 towards improvements / conversions of properties to support higher leasing activities. Furthermore,
Park Street will continue to sell assets which are not core to its long-term strategy, while investing in the core portfolio, primarily Pulse Living (our
Youth Housing platform) and Spark Offices (our Managed Office Space platform) in key cities with sustainable growth potential.
The range for EBVAT expectations is refined to a lower range of DKK 50 to DKK 55 million compared to an earlier guidance of DKK 60 million. The
change is in view of the lower number of assets, due to sales, and a longer lead time for the new leases to be operational in view of significant
refurbishment works for the new leases.
Park Street is making good progress with Pulse Nørrebro project which is expected to be operational by the summer of 2023 and is also taking steps
towards initiating Pulse Tåstrup project later this year.
Organisation and Annual General meeting held on April 25
th
2022.
The Board of Directors of Park Street consists of Pradeep Pattem, Ohene Aku Kwapong, Anita Nassar and Claes Peter Rading.
The number of employees of Park Street is 26 at the end of 2021 and 29 at the end of June 2022.
At the Annual general meeting of Park Street A/S held on 25 April 2022, all proposals by the Board of Directors were approved. Reference is also
made to the distributed minutes of the ordinary general meeting on 25 April 2022, please refer to:
http://www.psnas.com/index.php/generalforsamling/
Park Street | Interim Financial Report 1
st
Half 2022
Page 2 of 16
Consolidated financial review
PROFIT FOR THE 1st HALF OF 2022
As mentioned in the Director’s report the EBVAT in the first half of 2022 is DKK 23.3 million (1st half of 2021: DKK 33.1 million). Despite selling 3
properties, Net sales were unchanged at DKK 76.9 million as compared to the 1
st
half of 2021. This was made possible due to achieving higher
income on existing properties by reducing the vacancy and increasing revenue from the hotel in Ballerup. The reduction in EBVAT was primarily
driven by an increase in financial expenses (+DKK 5.3 million), operating expenses (+DKK 2.9 million) and other external expenses (+DKK 2.3
million). The company had closed a new long term debt facility of DKK 619 million in Q4 2021 which resulted in higher interest payments and
associated one off external legal and advisory expenses.
Park Street's Profit for the Period (after tax and valuation adjustments) is DKK 22.1 million for the 1st half of 2022 (1st half of 2021: DKK 82.8 million).
This is equivalent to a 0.77 earnings per share. The investment properties valuations adjustment for the year was DKK 2.6 million (compared to DKK
51.4 million in H1 2021). These adjustments reflect an increase of DKK 7.9 million across 9 properties where new leases have been signed and
reduction of valuation of DKK 5.3 million across 15 properties. The valuation review was primarily focused on the properties where specific changes
have occurred on leases – new leases signed or termination of existing leases. Market based assumptions were used around rents, capex and
capitalization rates to determine the fair value adjustment of these properties.
BALANCE SHEET AS OF 30 JUNE 2022
Park Street's balance sheet total as of 30 June 2022 was DKK 2,808 million, a decrease of DKK 212.7 million on the balance sheet total compared
to 31st December 2021. The decrease were the sale of investment properties and use of cash to repurchase company shares. As highlighted in H1
2022, the company initiated a new share buyback and cancellation program for Class A and Class B shares.
Group’s equity as of 30 June 2022 was positive at DKK 1,079 million. Net asset value increased to 18.9 per share as compared to 17.1 per share in
the 1
st
half of 2021.
Liabilities to credit institutions were DKK 1,439 million as at 30 June 2022 (31 December 2021: DKK 1,509 million). A significant proportion of the
total liabilities are non-current at 91.9%. The company continues to maintain a healthy equity ratio of 38.4%.
CASH FLOWS FOR THE 1st HALF OF 2022
Cash flows from operating activities for the 1st half of 2022 were DKK 16.8 million (1st half of 2021: DKK 36.2 million). The decrease is due to higher
financial expenses and other external expenses associated with a new debt facility in Q4 2021.
Cash flows from investing activities for the 1st half of 2022 were DKK 115.2 million (1st half of 2021: DKK -14.5 million). They were significantly
higher as compared to last year due to DKK 153 million sale of investment properties and an offset of DKK 38 million spent on improvements to
investment properties across the portfolio.
Cash flows from financing activities for the 1st half of 2022 were DKK -260.4 million (1st half of 2021: DKK -26.9 million). This was primarily driven
by a DKK 159.9 million share buyback and DKK 109.9m repayment of liabilities to credit institutions.
The Group's liquid assets amounted to DKK 39.4 million as of 30 June 2022.
Park Street | Interim Financial Report 1
st
Half 2022
Page 3 of 16
Uncertainty in connection with recognition and measurement
In connection with the submission of the interim report, management makes several estimates and assessments regarding the carrying amount of
assets and liabilities, including:
§ Fair value of investment properties,
§ Fair value of domicile properties,
§ Impairment test on domicile properties,
§ Classification of properties,
§ Deferred tax assets and tax liabilities
Where estimates are concerned, there is uncertainty in relation to the stated factors and items. It may be necessary to change previous estimates
on account of changes in the factors on which the estimates were based. Reference is made to note 1 to the consolidated financial statements in the
Annual report for 2021 for further details on these assessments, estimates and associated uncertainties. New and changed assessments and esti-
mates in the 1st half of 2022 are discussed in note 1 to the interim report.
Risk factors
As mentioned in the Annual report for 2021, the financial management of the Group is geared towards optimising the term structure of liabilities in
line with the Group’s operations and minimizing the Group’s financial risk exposure. It is part of the Group’s policy not to conduct speculative trans-
actions by active use of financial instruments, except to manage the financial risks inherent to the Group’s core activities.
For further details of the Group's risks and risk management, see the company's Annual report for 2021 ('Risk factors' section).
Park Street | Interim Financial Report 1
st
Half 2022
Page 4 of 16
Consolidated key figures and financial ratios
Key figures
1st half of
1st half of
Full year
Amounts in DKK 1000s
2022
2021
2021
Income statement
Rental income
59,971
61,760
124,328
Total net sales
76,919
76,970
158,264
Gross profit
53,603
56,611
117,418
Profit from primary operations
25,211
86,011
187,225
Financial items
-15,511
-10,152
-25,881
Earnings before value adjustments and tax (EBVAT)
23,308
33,099
56,867
Profit for the period
22,139
82,853
145,459
Statement of financial position
Investment properties
2,501,697
2,530,012
2,615,015
Investments in property, plant and equipment
38,043
21,071
25,803
Balance sheet total
2,808,045
2,785,563
3,020,749
Interest-bearing debt
1,439,555
1,378,075
1,509,471
Total equity
1,079,279
1,154,774
1,217,038
Statement of cash flows
Cash flows from operations
16,807
36,276
57,999
Cash flows from investment
115,221
-14,571
-17,777
Cash flows from financing
-260,423
-26,974
104,447
Other disclosures
Non-current liabilities as a proportion of total liabilities (%)
91.9
93.5
95.7
Share capital
57,175
67,513
67,513
Share price, end of period (DKK)
14.70
14.25
14.10
Share price change in points
0.60
4.25
4.10
Number of employees in the Group (average)
29
35
26
Financial ratios
1st half of
1st half of
Full year
2022
2020
2021
Return on property portfolio (% p.a.)
4.0
4.4
4.3
Average loan rate (% p.a.)
2.1
1.4
1.8
Return margin on property portfolio (% p.a.)
1.9
2.9
2.9
Return on equity (%)
4.1%
14.3%
11.95%
Equity ratio (%)
38.4%
41.5%
40.3%
Net asset value per share, end of period (DKK)
18.9
17.1
18.06
Earnings per share (DKK), end of period (DKK)
0.8
2.5
2.2
Price/net asset value, end of period
0.8
0.8
0.8
Cash flow per share (DKK)
0.6
1.1
0.9
The above financial ratios are calculated in accordance with the definitions in CFA Society Denmark's 'Recommendations & Financial Ratios 2015'.
Reference is made to note 33 to the consolidated financial statements in the Annual report for 2021.
Park Street | Interim Financial Report 1
st
Half 2022
Page 5 of 16
Statement by Board of Directors and Management
Management
Pradeep Pattem
CEO
Board of Directors
Anita Nassar Pradeep Pattem
Chairman
Ohene Aku Kwapong Claes Peter Rading
Park Street | Interim Financial Report 1
st
Half 2022
Page 6 of 16
Income statement
1st half of
1st half of
Full year
Note
Amounts in DKK 1000s
2022
2021
2021
3
Net sales
4
Operating expenses
-23,316
-20,359
-40,846
Gross profit
Employee benefit expenses
-8,469
-9,150
-17,808
Other external expenses
-5,243
-2,942
-12,532
Depreciation, amortisation and impairment
-1,072
-1,268
-4,330
Operating profit (EBIT)
Financial income
5
Financial expenses
-15,511
-10,152
-25,881
Earnings before value adjustments (EBVAT)
6
Adjustment to fair value, net
7
Gains realised on the sale of investment properties
-736
Profit before tax
8
Tax on profit for the period
-3,072
-3,158
-41,767
Profit for the period
Distributed as follows
Parent's shareholders
Profit for the period
Earnings per share
Diluted earnings per share
Park Street | Interim Financial Report 1
st
Half 2022
Page 7 of 16
Statement of comprehensive income
1st half of
1st half of
Full year
Note
Amounts in DKK 1000s
2022
2021
2021
Profit for the period
Other comprehensive income:
Items that cannot be reclassified to the income statement:
Fair value adjustment of headquarters properties
-503
Tax on fair value adjustment of headquarters properties
Other comprehensive income after tax
-392
Comprehensive income for the period
Distributed as follows
Parent's shareholders
Comprehensive income for the period
Park Street | Interim Financial Report 1
st
Half 2022
Page 8 of 16
Statement of financial position
Note
Amounts in DKK 1000s
30 June
30 June
31 December
2022
2021
2021
ASSETS
Non-current assets
Intangible assets
Software
Property, plant and equipment
Domiciles
9
Investment properties
Machinery and equipment
Financial assets
Investment in associates
Deferred tax assets
Deposits
Total non-current assets
Current assets
Mortgages and instruments of debt
Project holdings
Receivables
Income tax receivable
Prepaid expenses and accrued income
Cash and short-term deposits
Total current assets
Total assets
Park Street | Interim Financial Report 1
st
Half 2022
Page 9 of 16
Statement of financial position
Note
Amounts in DKK 1000s
30 June
30 June
31 December
2022
2021
2021
LIABILITIES
Equity
Share capital
Revaluation reserve
-3,774
Share Premium
Accumulated profit
10
Total equity
Liabilities
Non-current liabilities
Deferred tax
12
Credit institutions
Deposits
Current liabilities
Provisions for liabilities
12
Credit institutions
Trade and other payables
Income tax payable
Deposits
Other liabilities
Total liabilities
Total equity and liabilities
Park Street | Interim Financial Report 1
st
Half 2022
Page 10 of 16
Statement of equity
Amounts in DKK 1000s
Share
capital
Revaluation
reserve
Accumulated
profit
Share
Premium
Proposed
dividend
Equity
Total
Statement of equity for 2022:
Equity as at 1 January 2022
Comprehensive income for the period
Profit for the period
Fair value adjustment of domicile
Tax on other comprehensive income
Skat vedr. dagsværdiregulering af domicilejendomme
Salg af egne aktier
Other comprehensive income during the financial year
Comprehensive income for the period
Transactions with owners
Repurchase treasury shares
-149,560
-149,560
Capital reduction
-10,338
-10,338
Cash injection by existing shareholders
Liabilities with financial institutions converted into Equity
Total transactions with owners
-10,338
-149,560
-159,898
Other adjustments
Depreciation of revalued value of domiciles
Total other adjustments
Equity as at 30 June 2022
Park Street | Interim Financial Report 1
st
Half 2022
Page 11 of 16
Amounts in DKK 1000s
Share
capital
Revaluation
reserve
Accumulated
profit
Share
Premium
Proposed
dividend
Equity
Total
Statement of equity for 2021:
Equity as at 1 January 2021
Comprehensive income for the period
Profit for the period
Fair value adjustment of domicile
-503
-503
Tax on other comprehensive income
Skat vedr. dagsværdiregulering af domicilejendomme
Salg af egne aktier
Other comprehensive income during the financial year
-392
-392
Comprehensive income for the period
-392
Comprehensive income for the period
0
0
145,459
0
0
145,459
Transactions with owners
Repurchase treasury shares
Cash injection by existing shareholders
Liabilities with financial institutions converted into Equity
Total transactions with owners
Other adjustments
Depreciation of revalued value of domiciles
-1,795
Total other adjustments
-1,795
Equity as at 31 December 2021
Park Street | Interim Financial Report 1
st
Half 2022
Page 12 of 16
Statement of cash flows
1st half of
1st half of
Full year
Note
Amounts in DKK 1000s
2022
2021
2021
Operating profit (EBIT)
Adjustment for illiquid operating items, etc.
Change in project holdings, net
Change in other operating capital
-6,702
Cash flows concerning primary operations
Financial income received
Financial expenses paid
-15,511
-10,152
-29,902
Paid Corporate Tax
-871
-493
-5,274
Total cash flow from operating activities
Cash flow from investing activities
Improvements to investment properties
-38,043
-20,966
-25,803
Sales of investment properties
Purchase of intangible assets
Purchases of other property, plant and equipment
-105
Acquisition of associates
Total cash flow from investing activities
-14,571
-17,777
Cash flow from financing activities
Repurchase Own Shares
-159,898
-25
Proceeds from assumption of liabilities to credit institutions
Repayment of liabilities to credit institutions
-109,915
-26,949
-398,859
Repayment of debt from disposal of assets
Total cash flow from financing activities
-260,423
-26,974
Total cash flow for the period
-128,394
-5,269
Liquid assets as at 1 January
Liquid assets at the end of the period
Liquid assets at the end of the period
Cash and short term deposit
Liquid assets at the end of the period
Park Street | Interim Financial Report 1
st
Half 2022
Page 13 of 16
Notes
Note 1 - Accounting policies, accounting estimates and risks, etc.
Accounting policies
The interim report was submitted in accordance with IAS 34 'Interim Financial Reporting', as adopted by the EU, and Danish disclosure
requirements for interim reports for listed companies. No interim financial statements were prepared for the Parent. The interim report is presented
in Danish kroner (DKK), which is the functional currency of the Parent.
Apart from the below, the accounting policies are unchanged in relation to the Annual report for 2021. Reference is made to note 33 to the
consolidated financial statements in Park Street Annual report for 2021 for a full description of the accounting policies used.
Changes to accounting policies
Park Street has implemented the changes on IFRS standards and interpretative contributions that enter into force for 2020. None of these changes
affected recognition and measurement in 2022.
Accounting assessments and estimates
No significant new accounting assessments or changes to accounting estimates have been made in the interim report for the 1st half of 2022 in
relation to the Annual report for 2021. For a description of significant accounting assessments and estimates, see note 1 to the
consolidated financial statements in the Annual report for 2021.
Note 2 - Seasons
As in previous years, the Group's activities were not affected by seasonal or cyclical fluctuations in the interim period.
Note 3 - Net sales
1st half of
1st half of
Full year
Amounts in DKK 1000s
2022
2021
2021
Rental income
59,971
61,760
124,328
Sales of other services
16,797
14,910
33,041
Total sales of services
76,768
76,670
157,369
Interest income, mortgages and instruments of debt
152
300
895
76,919
76,970
158,264
Park Street | Interim Financial Report 1
st
Half 2022
Page 14 of 16
Note 4 - Operating expenses
1st half of
1st half of
Full year
Amounts in DKK 1000s
2022
2021
2021
Operating expenses, investment properties
20,116
18,395
35,678
Operating expenses, other services
3,200
1,964
5,168
23,316
20,359
40,846
Note 5 – Financial expenses
1st half of
1st half of
Full year
Amounts in DKK 1000s
2022
2021
2021
Interest expenses, liabilities to credit institutions measured at
amortized cost
14,200
9,964
23,968
Other interest costs and fees
658
189
645
Borrowing costs
653
0
1,268
15,511
10,152
25,881
Note 6 - Adjustment to fair value, net
1st half of
1st half of
Full year
Amounts in DKK 1000s
2022
2021
2021
Fair value adjustment, investment properties
2,638
51,441
128,887
2,638
51,441
128,887
Note 7 - Realized gains on the sales of investment properties
1st half of
1st half of
Full year
Amounts in DKK 1000s
2022
2021
2021
Sales totals, investment properties
153,265
6,500
6,500
Book value of properties when sold, etc.
-154,000
-5,028
-5,028
-736
1,472
1,472
Note 8 - Tax
The tax expense recognised in the income statement for the accounting period was calculated based on the net profit before tax and an estimated
effective tax rate for the Group for 2022.
Park Street | Interim Financial Report 1
st
Half 2022
Page 15 of 16
Note 9 - Investment properties
30 June
31 December
Amounts in DKK 1000s
2022
2021
Book value as at 1 January
2,615,015
2,462,633
Transfer to/from project holdings
0
0
Cost incurred for improvements
38,043
25,803
Adjustment to fair value, net
2,638
128,887
Acquisition of properties
0
0
Depreciation of fixed assets
0
2,719
Retirement on sale
-154,000
-5,028
Transfer to/from Machinery and equipment
0
0
Total book value
2,501,697
2,615,015
Note 10 – Share Capital
30 June
31 December
Amounts in DKK 1000s
2022
2021
Share capital opening period
67,513
67,513
Share capital Reduction
-10,338
0
Share capital closing period
57,175
67,513
The share capital consists of 57,174,840 shares of DKK 1 (31 December 2021: 67,513,372 shares of DKK 1). No shares have special rights. The
shares are fully paid.
Park Street Asset Management Ltd. owns a total of 93.06% (and a corresponding percentage of the votes) of the total nominal share capital of the
Company.
Note 11 - Contingent liabilities and assets
There have been no significant changes in contingent liabilities or assets since the Annual report for 2021, to which reference is made.
Park Street | Interim Financial Report 1
st
Half 2022
Page 16 of 16
Note 12 – Credit Institutions
The evolution of the long and short-term liabilities with credit institutions is specified as follows:
30 June
31 December
2022
2021
Amounts in DKK 1000s
Non-current financial liabilities with credit institutions
1,488,364
1,354,054
Current financial liabilities with credit institutions
21,107
50,970
Financial liabilities with credit institutions at 1 Jan-
uary
1,509,471
1,405,024
Repayment of liabilities to credit institutions
-109,915
-398,859
Proceeds from assumption of liabilities to credit institu-
tions
0
503,306
Mortgage and bank debt converted into equity
0
0
Repayment of debt from disposal of assets
0
0
Accrued financial expenses
40,000
0
Financial liabilities with credit institutions end of
period
1,439,555
1,509,471
Non-current financial liabilities with credit institutions
1,348,306
1,488,364
Current financial liabilities with credit institutions
91,249
21,107
Total financial liabilities with credit institutions end
of period
1,439,555
1,509,471
Note 13 – Subsequent Events
There have been no significant activities or events to report since 30 June 2022.