Park Street A/S – Annual Report 2023
April 04 2024 - 9:58AM
UK Regulatory
Park Street A/S – Annual Report 2023
Park Street A/S – Annual Report 2023
Copenhagen, 4 April 2024
Park Street result analysis primarily uses the
term EBVAT (Earnings before value adjustments and tax) to measure
the Group’s operating results.
The Group achieved in 2023 an EBVAT (profit
excluding value adjustments and tax) of DKK 41.4 million (2022:DKK
42.9 million), as compared to expectations of DKK 45-50 million
(published in the Park Street Interim Report Half Year 2023 results
announcement in Aug 2023), primarily driven due to a combination of
reduction in number of assets from sale of properties, leading to
lower income, combined with an increase in financial expenses due
to changes in interest rates. Furthermore, there was an increase in
new leasing adding to costs for marketing activity, and an increase
in energy costs related to vacant units.
We expect the EBVAT for 2024 to be DKK 30-40
million in view of potential new leases in the pipeline and an
expected reduction in costs. This outlook takes note of sale of 3
further properties subsequently in 2024. This could change with any
significant further sales or additions to the property
portfolio.
The evolution of the EBVAT is influenced by the
following factors:
- Gross profit in 2023 is DKK 121.9 million (2022: DKK 104.7
million), equivalent to a increase of DKK 17.2 million. The
increase in gross profit is primarily due to rental income (DKK 9.2
million).
- The Group's overheads were DKK 28.1 million in 2023 against DKK
31.8 million in 2022. The decrease of DKK 3.7 million is caused by
savings in employee costs and depreciation.
- Net financial items amount to DKK –52.4 million in 2023 against
DKK -29.9 million in 2022, representing a negative change of DKK
22.5 million driven by an increase in the interest costs.
The decrease in the Net Result for the period
from DKK 55 million in 2022 to DKK –24.2 million in 2023 is due to
the following effects:
- Fair value adjustment in 2023 with a net of DKK –73.8 million
against DKK 36.6 million in 2022. In both periods an evaluation of
the domicile and investment properties have been made adjusting the
yield and the estimated profit and loss for the entire portfolio of
Park Street A/S and subsidiaries.
The Group's equity as at 31 December 2023 was
DKK 1,060 million, compared to DKK 1,087 million as at 31 December
2022. The decline in equity is due to the loss during the year.
Subsequent events after 31 December
2023
Park Street has sold three assets (Project NV),
viz., Hejrevej 26-28 (Copenhagen NV), Hejrevej 30, (Copenhagen NV),
and Svanevej 12, (Copenhagen NV).
From the balance sheet date until the date of
presentation of this Annual Report no additional events have
occurred other than the above-mentioned which significantly affect
the assessment of the annual report.
Management comments on the Annual report
“2023 has been a challenging year for the Real
Estate sector across Europe – impacted by significant increases in
interest rates and declining investment and occupational activity.
Denmark, however, has witnessed positive occupational activity
across office and residential sector. In particular, Pulse strategy
fits well the inflow of global professionals and students to
Denmark. There have been delays in delivery of Pulse N which
impacted on our timing expectations for its launch. This along with
higher finance costs is reflected in our overall EBVAT of DKK 41
million, being lower than expectations. However, we expect a fully
occupied Pulse N and Pulse O along with increased leasing activity
across the commercial assets should lend itself to a stable
performance in 2024 and refinancing of the development loan with
traditional mortgage financing.
Having taken charge of running Park Street A/S 7
years today in April 2017, I am immensely proud of turning a
platform (previously named Nordicom) with negative equity (in 2016)
and DKK 20 million equity in Q2 2017 towards a company with DKK
1060 million equity at the end of 2023, while paying down over DKK
700 million of debt to credit institutions during this period.
There are several current and previous members of the team,
external partners, mortgage banks and investors who have
contributed towards this success – I am sincerely grateful to their
positive support and contributions. While the task was immense and
several positives to note, there were also gaps and challenges in
our approach which need improvements.
As we enter a new phase of real estate cycle and
also Park Street’s next leg of journey – we will aim to commit to
the core principles of simplicity, honesty and efforts to create
positive value to all true stakeholders. A focus on positive
engagement with our tenants, steady improvements to our properties
within a tangible ESG framework, and a happy, dynamic environment
for a committed team & external partners will form the core of
our priorities for the future. A design and technology led approach
for achieving these goals will be the ambition of our team.”
The company expects EBVAT for the year 2024 to
be in the range of DKK 30 – 40 million.
Attached Files
The Annual Report 2023 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 - Chairman
Pradeep Pattem - CEO
Further information
For further information please contact Pradeep Pattem, CEO at
parkstreet@parkstreet.dk
Company Website: www.psnas.com
Telephone Number: +45 33 33 93 03
- Park Street Annual Report 2023
- Park Street Corporate Governance Statement - Annual Report
2023
- 213800VGJC18MRKMZC33-2023-12-31-en
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