Park Street A/S – Annual Report 2024

Park Street A/S – Annual Report 2024

Copenhagen, 4 April 2025

Park Street result analysis primarily uses the term EBVAT (Earnings before value adjustments and tax) to measure the Group’s operating results and Net Result for overall performance.

The Group achieved in 2024 an EBVAT (profit excluding value adjustments and tax) of DKK 2.8 million (2023: DKK 41.4 million), as compared to our expectations of DKK 30-35 million. The variance from our published expectations was driven due to a combination of factors, primarily due to reduction in number of assets from sale of properties, and costs associated with provisions for long term clean of legacy delinquencies where we see limited prospects for recoveries. We have undertaken significant changes to our operating model leading to one-off costs for associated with contract terminations and consultants which should resolve in a longer-term improvement of margins and create an operating platform suitable to reduced number of properties. 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 2025 to be DKK 30-40 million in view of potential new leases in the pipeline and an expected reduction in costs. This could change with any significant further sales or changes to capital structure of the company including any financing activities. 

The evolution of the EBVAT is influenced by the following factors:

• Gross profit in 2024 is DKK 107.3 million (2023: DKK 121.9 million), equivalent to a decrease of DKK 14.6 million. The decrease in gross profit is primarily due to rental income due to sale of 5 properties during the year 2024 (DKK 15.0 million).

• The Group's overheads cost was DKK 31.6 million in 2024 against DKK 28.1 million in 2023. The increase of DKK 3.5 million is caused by one off cost incurred on services.

• Net financial items amount to DKK –72.9 million in 2024 against DKK -52.4 million in 2023, representing a negative change of DKK 20.5 million driven by an increase in the interest costs, and reflects the fully drawn development financing for Pulse project, which is now completed and fully operational.

The Net Result for 2024 is DKK 6.9 million, which is an increase compared to the Net Result in 2023 of DKK -24.2 million in 2023 to DKK 6.9 million. The changes are from the following effects:

• Fair value adjustment in 2024 with a net of DKK 22.2 million against DKK -73.8 million in 2023. In both periods an evaluation of the investment properties has 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 2024 was DKK 963 million, compared to DKK 1,060 million as at 31 December 2023. The decline in equity is due to repurchase of own shares during the year.

Subsequent events after 31 December 2024

Park Street has sold one asset in Silkeborg.

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 affects the assessment of the annual report.

Management comments on the Annual report

“After a long period of challenging environment, we now see positive shoots for the Real Estate sector. 2024 remained a challenging year for the Real Estate sector across Europe for investment capital and overall asset performance. Denmark continued to display better operating environment than most other European jurisdictions. There is a significant and increasing demand for housing for pan-European professionals who are choosing Denmark, and particularly Copenhagen, driven by its demand for global talent. Our Pulse segment is well positioned for these dynamics – evidenced by full occupancy of our Pulse Norrebro and its community of young professionals from over 50 countries! The hotel and leisure sectors are also well supported with Denmark becoming a destination of choice, and we hope to continue to see positive performance at our hotel assets. Towards the end of 2024 and in Q1 2025 we are seeing an easing of credit markets and an inflow of investment capital primarily driven by lowering of interest rates. The year overall remained to be a year of adjusting the platform to a smaller number of properties with lower top line, gearing up for focused Pulse platform, some delays in project deliveries pushing out lease income and one-off costs for changes to platform leading to lower EBVAT of DKK 3m compared of our expectations of DKK 30m.

As outlined in Strategy 2025, Park Street will consolidate the platform towards Pulse Strategy and invest in selective Value Add / Design assets. We will continue to reduce our holdings in Retail sector over the next 3 years. We plan to allocate DKK 20m towards Capex for 2025, 80 to 90% of which will be driven by specific long-term leases in our select value add assets.”

The company expects EBVAT for the year 2025 to be in the range of DKK 30-40 million.

Attached files

The Annual Report 2024 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 parkstreet@parkstreet.dk

Company Website: www.psnas.com

Telephone Number: +45 33 33 93 03

Attachments

• Park Street- Annual Report 2024
• Park Street Corporate Governance Statement - Annual Report 2024
• 213800VGJC18MRKMZC33-2024-12-31-en