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

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