Park Street A/S – Interim Financial Report, 1st half of 2022
Copenhagen, 26 August 2022

In the first half of 2022 Park Street achieved EBVAT (Earnings before value adjustments and tax) of DKK 23.3 million (2021: DKK 33.1 million). 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 June 30^th 2022 was positive at DKK 1,079 million, against DKK 1,217 million as of December 30^st 2021. The decrease is primarily due to the repurchase of treasury shares and sale of investment properties.

The Board of Directors of Park Street A/S discussed and today approved the company's Interim report 2022, which contained the following:

The period in outline

• 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)
• Park Street achieved EBVAT (earnings before value adjustments and tax) of 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 1st 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.  
• During the period, Park Street sold:
  • Retail property in Loftbrovej, Nørresundby
  • Retail property in Århusvej, Randers
  • Retail property in Åkirkebyvej, Rønne
• The Group’s equity as of June 30^th 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 1st half of 2021
• 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.

Expectations for 2022
Park Street’s EBVAT expectations are 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.

Management comments on the Interim report
In connection with the interim report for H1 2022, CEO Pradeep Pattem states the following:
“At Park Street we are making steady progress with our strategy focus on the three key aspects:

1. Vacancies: We made significant progress across our portfolio with over 20 new commercial leases being signed covering over 11,000 sqm. Led by our internal leasing & projects team, we are executing on significant refurbishment or redevelopment work to create long term high value rental spaces.
2. Sales: We have categorised several of our assets to be not core to our strategy and aim to reduce the portfolio over the 18 to 24 months. Good progress has been made with 3 properties sold in first half year and we expect further sales over the year. While this reduces our top line and balance sheet in the short run, it is significant reinvestment into the core portfolio towards increasing the quality of top line over the medium term.
3. Pulse and Spark platform development: Good progress is being made with Pulse Nørrebro project which is expected to be launched by summer of 2023 and Pulse Østerbro is working at 100% occupancy with significant waiting list of prospective tenants.

We have made significant senior additions to our team during the year, and I am immensely proud of the work across leasing and projects and hope to conclude further significant reduction of vacancies over the year.
The current market environment, while robust at the ground level for leasing and sales, is challenged with high energy prices and derived inflation impacting wider costs and interest rates. We see this to be a time of keeping a tighter control on costs, while investing towards higher quality revenues centred around strong tenants. It’s a very dynamic environment that is reflected in our work and team and we are quite excited with the various challenges and opportunities across our portfolio.”

Attached files
Interim report 2022 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

This company announcement contains some forward-looking statements, including statements about Park Street’s activities. Such forward-looking statements are based on information, assumptions and assessments that Park Street finds reasonable. These forward-looking statements cover known and unknown risks, uncertainties and other material factors that may cause Park Street’s actual profits, growth or performance to differ considerably from the future profits, growth and performance expressed or implied in connection with these forward-looking statements. If one or more of these risk factors or elements of uncertainty is triggered or if an underlying assumption turns out to be incorrect, Park Street’s actual financial position or operating profits may differ considerably from that which is described as assumed, assessed, estimated or expected.