Park Street A/S – Interim Financial Report, 1st half of 2023
24 Agosto 2023 - 12:52PM
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
30th
2023 was positive at DKK
1,143 million, against DKK
1,087 million as
of December
31st
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 30th 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
Park Street’s EBVAT expectations are refined to a lower range of
DKK 45 to DKK 50 million compared to an earlier guidance of DKK 55
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 2023, CEO Pradeep
Pattem states the following:
“Park Street has made positive progress withs signing of 36 new
leases worth over DKK 5.5 million for 4,700 sqm. Some of these
leases require capex and refurbishment works which are expected to
be completed during H2 2023 and will start generating top line cash
flow during the year. We have also made some progress with the
strategy of reducing assets in the geographies and sector not core
to Park Street with the appointment of an external asset manager
for these assets. While the sale of asset in the short term will
reduce the top and bottom line of company, our focus of investing
in core asset to reduce vacancies and improve the properties should
in the medium term generate significantly improved quality of
revenues and profitability. Park Street will continue to sell asset
which are not core to its long term strategy, while investing in
the core portfolio, primarily Pulse Living (our Youth Housing
Platform) and Spark Offices (Our Managed Office Space Platform) in
key cities with sustainable growth potential.
The range of EBVAT expectation is refined to a lower range of
DKK 45 to DKK 50 million compared to an earlier guidance of DKK 55
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 work for the new
assets.
Park Street is expecting to launch Pulse Nørrebro in Q3, and
expect it to be fully leased within the quarter. This is a flagship
asset to further develop and scale the Pulse platform.
We are facing an extraordinary market environment, with
significant increase in interest rates, high inflation and yet high
demand for housing and office space, particularly in Denmark /
Copenhagen. The investment market is far more uncertain in terms of
the valuations – leading to a relatively slow market for sales and
acquisitions. We have prepared the balance sheet and operating
platform, which is intensively tech driven with lower cost base, in
anticipation of a tougher operating market in the medium term.
Further investing in our selective portfolio and developing the
Pulse platform remain our focus.”
Attached files
Interim report 2023 is attached to this announcement.
Copenhagen,
Anita Nassar Pradeep
PattemChairman CEO
Further information
For further information please contact Pradeep Pattem, CEO at
nordicom@nordicom.dk
Company Website: www.psnas.com
Telephone number: +45 33 33 93 03
This company announcement contains some forward-looking
statements, including statements about Park Street’s activities.
Such forward-looking statements are based on information,
assumptions and assessments that Park Street finds reasonable.
These forward-looking statements cover known and unknown risks,
uncertainties and other material factors that may cause Park
Street’s actual profits, growth or performance to differ
considerably from the future profits, growth and performance
expressed or implied in connection with these forward-looking
statements. If one or more of these risk factors or elements of
uncertainty is triggered or if an underlying assumption turns out
to be incorrect, Park Street’s actual financial position or
operating profits may differ considerably from that which is
described as assumed, assessed, estimated or expected.
- Park Street - Interim Report Half Year 2023
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