Park Street A/S – Interim Financial Report, 1st half of 2022 - Seite 2

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.”