Park Street A/S – Annual Report 2023 - Seite 2

Subsequent events after 31 December 2023

Park Street has sold three assets (Project NV), viz., Hejrevej 26-28 (Copenhagen NV), Hejrevej 30, (Copenhagen NV), and Svanevej 12, (Copenhagen NV).

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 affect the assessment of the annual report.

Management comments on the Annual report

“2023 has been a challenging year for the Real Estate sector across Europe – impacted by significant increases in interest rates and declining investment and occupational activity. Denmark, however, has witnessed positive occupational activity across office and residential sector. In particular, Pulse strategy fits well the inflow of global professionals and students to Denmark. There have been delays in delivery of Pulse N which impacted on our timing expectations for its launch. This along with higher finance costs is reflected in our overall EBVAT of DKK 41 million, being lower than expectations. However, we expect a fully occupied Pulse N and Pulse O along with increased leasing activity across the commercial assets should lend itself to a stable performance in 2024 and refinancing of the development loan with traditional mortgage financing.

Having taken charge of running Park Street A/S 7 years today in April 2017, I am immensely proud of turning a platform (previously named Nordicom) with negative equity (in 2016) and DKK 20 million equity in Q2 2017 towards a company with DKK 1060 million equity at the end of 2023, while paying down over DKK 700 million of debt to credit institutions during this period. There are several current and previous members of the team, external partners, mortgage banks and investors who have contributed towards this success – I am sincerely grateful to their positive support and contributions. While the task was immense and several positives to note, there were also gaps and challenges in our approach which need improvements.

As we enter a new phase of real estate cycle and also Park Street’s next leg of journey – we will aim to commit to the core principles of simplicity, honesty and efforts to create positive value to all true stakeholders. A focus on positive engagement with our tenants, steady improvements to our properties within a tangible ESG framework, and a happy, dynamic environment for a committed team & external partners will form the core of our priorities for the future. A design and technology led approach for achieving these goals will be the ambition of our team.”