Park Street A/S – Annual Report 2021

Copenhagen, 1 April 2022

In 2021 Park Street obtained a Profit after tax of DKK 145.4 million against DKK 145.3 million in 2020. Improvement is mainly driven by the revaluation on investment properties. EBVAT (earnings before value adjustments and tax) achieved in 2021 is DKK 56.9 million (2020: DKK 69.8 million).

The Group Equity at 31st December 2021 is DKK 1,217.0 million compared to DKK 1,071.9 million as at 31 December 2020; the increase is caused by the profit of the period.

The Board of Directors of Park Street A/S today discussed and approved the Annual Report 2021, which contained the following:

The period in outline

• Yearly result was a profit of DKK 145.4 million (2020: DKK 145.3 million).
• For 2021 Park Street achieved EBVAT (earnings before value adjustments and tax) of DKK 56.9 million (2020: DKK 69.8 million). Net Operating Income results were below management expectations for the period. The revenues were negatively impacted primarily due to the sale of properties, intentional vacancy in order to initiate residential projects and a delay on filling vacancies due to the uncertainties caused by Covid-19, partially offset by a reduction in external consulting expenses relating to properties (-DKK 5.2 million) and service costs (- DKK 4.8 million) and an increase in income received from the hotels in the group (DKK 2.9 million).
• During the period, Park Street sold:
  • Residential unit in Ballerup
  • Land plot in Naestved

• A total adjustment of DKK 128.9 million in the value of investment properties was included in the balance sheet statement (2020: DKK 79.5 million). A new evaluation has been made for 2021 adjusting the yield and the estimated profit and loss for the entire portfolio of Park Street A/S and subsidiaries.
• The sale of two non-core properties generated a profit of DKK 1.5 million.
• The Group's equity was positive at DKK 1,217.0 million at 31 December 2021 (31 December 2020: DKK 1,071.9 million).
• Park Street's net cash flow in 2021 was DKK 144.7 million (2020: DKK -38.5 million). Positive cash flow from operating activities has been DKK 58.0 million (2020: DKK 62.0 million), while cash flow from investing activities was DKK -17.8 million (2020: DKK 137.9 million), 2020 cash flows having been mainly driven by the disposal of assets. Cash flow from financing activities is positive by DKK 104.4 million (2020: DKK -238.3 million) mainly driven by financing and re-financing activities. 

Subsequent events after December 31, 2021

An investment property in Loftborvej has been sold in January 2022. Significant leases for over 3,800 square meters have been signed since January 2022.
The Company has announced buyback program for Class A and Class B shares.

Management comments on the Annual report

In connection with Annual Report 2022, CEO Pradeep Pattem states the following:

“In 2021 at Park Street we made substantial progress in strengthening the balance sheet with full paydown of all short term loans, establishing new financing facilities for Pulse N development and financing / refinancing further assets to improve liquidity along with sales of some non-core assets. The year remained challenging for leasing up vacant space in view of continued reservations from prospective tenants with making new investments. Higher costs associated with one off financing activities and lower than expected leasing activity reflects in the EBVAT of DKK 57 million which is below our expectations. The background diligent efforts from our team across leasing, asset management, operations, technology and design team remained consistent which should result in reduced vacancies in the year 2022.

We are quite excited with the progress of development for Pulse Norrebro which is expected to launch by end of 2022/ Q1 2023. We also welcomed new colleagues to our asset management to shape the Spark Offices and Pulse strategy and related leasing efforts. The discussions over the year 2021 have also led to further new leases being signed for around 4000 sqm in the new year. We also continue to take significant steps to streamline our portfolio by disposing several assets while focussing further development of www.sparkoffices.dk and pulseliving.dk portfolio.  The company expects that the EBVAT for the year 2022 will be in the range of DKK 60 - 65 million."

Attached files
The Annual Report 2021 and the Statement of the mandatory review of Corporate Governance, cf. section 107b of the Danish Financial Statement Act, is attached to this announcement.

Copenhagen,

Anita Nassar                           Pradeep Pattem
Chairman                                        CEO

Further information 

For further information please contact Pradeep Pattem, CEO at nordicom@nordicom.dk

Company Website: www.psnas.com

Telephone Number: +45 33 33 93 03