Park Street Nordicom A/S – Annual Report 2019

Copenhagen, 26 March 2020

In 2019 Park Street Nordicom achieved EBVAT (earnings before value adjustments and tax) of DKK 83.2 million (2018: DKK 84.0 million). Profit after tax for 2019 is DKK 115.1 million against DKK 108.3 million in 2018. The improvement is mainly due to revaluation on investment properties and reduction of financial expenses. The Group Equity at 31st December 2019 is DKK 931.1 million compared to DKK 810.7 million as at 31 December 2018; the increase is caused by the profit of the period. The Group has acquired assets in 2019 at an acquisition price of DKK 103.9 million,

The Board of Directors of Park Street Nordicom A/S today discussed and approved the Annual Report 2019, which contained the following:

The period in outline

• Yearly result was a profit of DKK 115.1 million (2018: DKK 108.3 million).
• For 2019 Park Street Nordicom achieved EBVAT (earnings before value adjustments and tax) of DKK 83.2 million (2018: DKK 84.0 million). Net Operating Income results are in line in line in line with management expectations for the period. The slight reduction is primarily due to the increase in overhead costs (DKK 9.0 million, primarily driven by higher investment of resources for future value enhancements) which has been partially compensated  by an increase of the gross profit (DKK 3.9 million, driven by newly acquired assets) and a reduction of financial expenses (DKK 4.3 million).
• During the period, Park Street Nordicom acquired the following assets:
  • Shopping Center in Glostrup
  • Residential unit in Copenhagen
  • Land plot in Kolding
• During the period, Park Street Nordicom sold:
  • Residential property in Roskilde
• A total net adjustment of DKK 48.7 million in the value of investment properties was included in the income statement (2018: DKK 42.6 million). A new evaluation has been made for 2019 adjusting the yield and the estimated profit and loss for the entire portfolio of Park Street Nordicom A/S and subsidiaries.
• The sale of a non-core property generated a profit of DKK 0.4 million.
• The Group's equity was positive at DKK 931.1 million at 31 December 2019 (31 December 2018: DKK 810.7 million).
• Park Street Nordicom's net cash flow in 2019 was DKK 7.3 million (2018: DKK 34.4 million). Positive cash flow from operating activities has been DKK 92.9 million (2018: DKK 77.2 million), while cash flow from investing activities has been negative by DKK 125.5 million (2018: DKK 51.8 million) mainly due to the acquisition of assets. On the other hand, cash flow from financing activities is positive by DKK 39.9 million (2018: DKK -94.7 million) impacted mainly by new long term mortgage financing for one of the newly acquired assets.