Park Street A/S – Interim Financial Report, 1st half of 2023

Park Street A/S – Interim Financial Report, 1st half of 2023

Copenhagen, 24 August 2023

In the first half of 2023 Park Street achieved EBVAT (Earnings before value adjustments and tax) of DKK 21.8 million (2022: DKK 23.3 million). Net sales were at DKK 83.4 million (2022: DKK 76.9 million) and the reduction in EBVAT was primarily driven by an increase in financial expenses offset by a decrease in operating and external expense.
The Group's equity as of June 30^th 2023 was positive at DKK 1,143 million, against DKK 1,087 million as of December 31^st 2022. The marginal increase is primarily due to the progress of Pulse N towards completion, associated increase in valuation, offset by lowered valuations across several regional retail assets.

The Board of Directors of Park Street A/S discussed and today approved the company's Interim report 2023, which contained the following:

The period in outline

• Profit for the period (after tax and valuation adjustments) is DKK 1.2 million for the 1st half of 2023 (1st half of 2022: DKK 22.1 million)
• Park Street achieved EBVAT (earnings before value adjustments and tax) of DKK 21.8 million (1st half of 2022: DKK 23.3 million).Net sales were increased to DKK 83.4 million as compared to DKK 76.9 million in the 1st half of 2022. This was made possible due to achieving higher income on existing properties by reducing the vacancy. The reduction in EBVAT was primarily driven by an increase in financial expenses (+DKK 7 million) offset by operating expenses (-DKK 3.4 million) and other external expenses (-DKK 2.2 million). The construction loan for Pulse N being fully drawn has increased the liabilities of the company, with associated financing costs.
• The Group’s equity as of June 30^th 2023 was positive at DKK 1,143 million. Net asset value increased to 20.0 per share as compared to 18.9 per share in the 1st half of 2022.
• Cash flows from operating activities for the 1st half of 2023 were DKK 21.0 million (1st half of 2022: DKK 16.8 million). The increase is due to the higher operating profit (DKK 44.2 as compared to DKK 38.8 in the same period last year. Cash flows from investing activities for the 1st half of 2023 were -DKK 36.0 million (1st half of 2022: DKK -115.2 million). They were significantly lower as compared to last year due to DKK 153 million sale of investment properties in the last year, and an offset of DKK 36 million spent on improvements to investment properties across the portfolio in the first half of 2023. Cash flows from financing activities for the 1st half of 2023 were DKK 17.8 million (1st half of 2022: DKK -260.4 million). The higher cash flow in the previous year were primarily driven by a DKK 159.9 million share buyback and DKK 109.9m repayment of liabilities to credit institutions last year.

Expectations for 2023