Park Street

Annual Report • Apr 5, 2023

Company : Park Street A/S CVR: 12932502

Svanevej 12, 4th Floor 2400 København NV

Accounting period: 1 January – 31 December 2022 Chairman:

Annual Report 2022

Company:

Park Street A/S Svanevej 12 DK-2400 København NV CVR no.: 12 93 25 02 LEI no.: 213800VGJC18MRKMZC33 Registered office: Copenhagen, Denmark

Phone: +45 33 33 93 03 Internet: www.nordicom.dk / www.psnas.com E-mail: parkstreet@parkstreet.dk Board of Directors: Anita Nassar, Chairman Claes Peter Rading Ohene Aku Kwapong Pradeep Pattem

Management: CEO Pradeep Pattem

Auditor: PriceWaterhouseCoopers Statsautoriseret Revisionspartnerselskab

Main activity: Park Street is a fully integrated European real estate investment and asset management company with offices in Copenhagen and London. It owns and manages a large portfolio of commercial properties located across Denmark.

Annual General Meeting:

Annual General Meeting to be held on 28th April 2023 at 16:00 at Svanevej 12, 2400 Copenhagen NV, Denmark.

Contents

Directors' report	2
Directors' report	2
Subsequent events after 31 December 2022	3
Outlook and strategy for 2023	4
Financial Highlights	17
Financial Results	18
Risk Factors	21
Statutory Report CSR	23
Legal requirements for Corporate Governance	23
Statutory report on diversity in management	23
Management composition and remuneration	24
Board of Directors and Management	25
Shareholder structure	26
Group structure as of 31 December 2022	28
Statements	29
Statement by Board of Directors and Management	29
Independent auditors report	30
Consolidated Financial statements	34
Income statement	36
Statement of comprehensive income	37
Statement of financial position	38
Statement of equity	39
Statement of cash flows	40
Notes	42
Annual accounts for Park Street A/S	69
Income statement	71
Statement of comprehensive income	72
Statement of financial position as of 31 December 2022	73
Statement of equity	74
Statement of cash flows	75
Notes	77
Property Overview	92

Main Activity

Park Street is a fully integrated European real estate investment and asset management company with offices in Copenhagen and London. It owns and manages a large portfolio of commercial properties located across Denmark.

Results of the year 2022

Park Street result analysis primarily uses the term EBVAT (Earnings before value adjustments and tax) to measure the Group's operating results.

The Group achieved in 2022 an EBVAT (profit excluding value adjustments and tax) of DKK 42.9 million (2021:DKK 56.8 million), as compared to expectations of DKK 50 million (published in the Park Street Interim Report Half Year 2022 results announcement in Aug 2022), primarily driven due to a combination of reduction in number of assets from sale of properties, leading to lower income, combined with an increase in financial expenses due to changes in interest rates. Furthermore there was an increase in new leasing adding to costs for marketing activity, and an increase in energy costs related to vacant units.

We expect the EBVAT for 2023 to be DKK 55m in view of our expectation for new leases in pipeline and expected reduction in costs. This outlook assumes the portfolio to remain same and could change with any significant sales or additions to properties.

The evolution of the EBVAT is influenced by the following factors:

• Gross profit in 2022 is DKK 104.7 million (2021: DKK 117.4 million), equivalent to a decrease of DKK 12.7 million. The reduction in gross profit is primarily due to a reduction in rental income (- DKK 8 million) offset by an increase in income received from the hotels in the group (DKK 5.8 million), and an increase in Opex of DKK 7.8 million, driven in part by increased energy costs.
• The Group's overheads were DKK 31.8 million in 2022 against DKK 34.7 million in 2021. The decrease of DKK 2.9 million is caused by a savings in external advisor expenses.
• Net financial items amounts to DKK -29.9 million in 2022 against DKK -25.9 million in 2021, representing a negative change of DKK 4 million driven by an increase in interest costs due to an increase in the debt in 2021 with financial institutions including development loan for Pulse N with higher margins interest rates.

The decrease in the Net Profit for the period from DKK 145.4 million in 2021 to DKK 55 million in 2022 is due to the following effects:

▪ Fair value adjustment in 2022 with a net of DKK 36.1 million while the fair value adjustment in 2021 had a net effect of DKK 128.9 million. In both periods an evaluation of the domicile and investment properties have been made adjusting the yield and the estimated profit and loss by the entire portfolio of Park Street A/S and subsidiaries.

The Group's equity as at 31 December 2022 was DKK 1,087 million, compared to DKK 1,217 million as at 31 December 2021. The decline in equity is due to the purchase of treasury shares.

The operation of the Group's properties in 2022 included negotiations and closings of several new leases and sale of assets not core to Park Street. This should positively impact the performance of 2023 towards reducing vacant unit costs while enhancing the top line. However there are further lease terminations which need to be marketed. While the investment and interest rate environment has turned challenging, the demand for new leases and market rental levels continue to see positive traction. The current vacancy rate (calculated by rental value) for the Group's investment properties, in Retail reduced to 13.67% in 2022 (19.28% in 2021) and Office reduced to 17.46% in 2022 (24% in 2021). During the first months of 2023, there has been a positive traction with the signature of new leases.

Property acquisitions and sales

In 2022, Park Street sold the following properties and plots:

• Retail building in Aarhusvej 119-121, Ulrikkasvej 1, Randers
• Retail building in Femøvej 3, Næstved
• Land plot in Gule område/ Havnegade 50/ Officehuset, Næstved
• Retail building Aakirkebyvej 58-60, Rønne
• Retail building in Zahrtmannsvej 78, Rønne
• Retail building: Loftbrovej

Organisation

Since April of 2022 when the Annual General Meeting of the Company took place the Board of Directors of Park Street consists of Pradeep Pattem, Ohene Aku Kwapong, Anita Nassar and Claes Peter Rading.

The number of employees of Park Street were 35 by the end of 2022, against 26 at the start of the year.

Subsequent events after 31 December 2022

In January 2023, we have hedged the interest rate exposure on the floating rate non-mortgage debt through purchase of interest rate caps. These caps are now in the positive value.

Mortgage loans due for interest rate fixing in April 2023 have now been fixed as F3 loans.

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.

Park Street

Park Street A/S operates as a real estate investment and asset management company. The Company manages own real estate portfolio primarily in the office, retail, and residential segment.

Founded in 1989. New executive management and board came in 2017.

Company listed on NASDAQ OMX CPH: PARKST-A.CO

Highly flexible asset management platform backed by 20+ dedicated and experienced employees.

Company is technology driven with own developed asset and property management software geared and executing several real estate strategies.

Team experience with 20+years track record of real estate investing spanning several cycles.

Company Focus and Strategies

Park Street is currently managing four portfolio with different strategies across 45 assets in Denmark.

• Pulse - youth living and hospitality partnerships
• Spark - institutional quality office and retail
• Stable - cash flow portfolio
• Nordicom - divestment portfolio

Each portfolio has its own strategy, focus areas and all assets have an asset management plan for execution. Further initiatives for optimization across assets and portfolio are also planned.

Assets by portfolio

Park Street aims to consolidate to the strategies, Pulse and Spark over 2-4 years. The proceeds from the portfolios; Stable, Nordicom, regional assets and Nordicom, development assets along with new capital are to be used to focus on developing Pulse- and Spark-portfolios.

Asset Management Services

Park Street is a one-stop-platform for asset management and property services.

We cover the value chain through in-house expertise and strategic partnerships to execute on asset management plans.

Review – data driven asset management and property management platform

Park Street/ Director's report Portfolio Outline

01. Pulse

				5,000 units
		228 units		Pan. Europe
	204 units		Project Development
2 2 units		Under Construction
	Current capacity

01.1 Pulse Living

Pulse Living is a community within and extending to the local community and institutions of higher education in Copenhagen. Further engaging the local community around the property through events and compatible commercial tenants

01.2 Pulse – Asset Management Case

Pulse N, Copenhagen NV

• Pulse N at Hejrevej 8-10 is a 9,000 m² office building built in 1967. Former office tenant, terminated its lease in year 2018.
• In recent years, Copenhagen N and NV has become a very attractive urban area for both students, international visitors and tourist. The Copenhagen N and NV district has topped Time Out Magazine's 'World's Coolest Neighborhoods 2021' list.

• Park Street's Pulse concept was ideal for the area and the old office building is now under construction into youth housing apartments with retail on the ground floor.

• Total 204 apartments on average 30 m² with own kitchen and bathroom.

• Waiting list for the apartments under construction is more than 1,400+ people listed.
• Four retail unit across 1,500 m² tenant composition in synergy with Pulse Living youth housing concept and local community.
• The project is under construction and will be ready in summer 2023.

02. Spark

02.1 Spark

Banegårdsavej, Glostrup

• Banegårdsvej, Glostrup is a retail and office property located right at Glostrup Station with the new Letbane, DKK 7.5 billion of new railway infrastructure connecting Ishøj to Lyngby.
• The property is 9,961 m² and was bought with the majority of the property being vacant.
• Asset management plan is being executed with redevelopment and upgrading of property, change of floor planning and attracting quality and right composition of tenants with respect to the demographics of the area.
  • New main tenant with lease of 3,000 m² office headquarter for a Danish engineering company, ABC Ingeniør.
  • Several on-going negotiations with well-known and quality tenants for retail and office.
• Long-term large residential development opportunities. On-going discussion with Glostrup Municipality.

03. Stable

04. Nordicom

Selected properties for divestment

Prøvestensvej 20, Helsingør

Sjællandsgade 12,16,18, Vejle

Selected properties with development potential

Allerød Vestcenter, Lillerød with +2,400 m² of building rights

Ringsted Centeret, Ringsted with +24,000 m² of building rights

Financial Highlights

Key figures
Amounts in DKK 1000s	2022	2021	2020	2019	2018
Income statement
Rental income	136,348	124,328	126,903	147,518	149,729
Total net sales	153,281	158,264	172,669	203,166	175,444
Gross profit	104,675	117,418	124,979	150,093	146,154
Profit from primary operations	74,499	187,225	187,929	146,021	142,341
Financial items	-29,932	-25,881	-25,757	-29,105	-33,409
Earnings before value adjustments and tax (EBVAT)	42,898	56,866	69,983	83,223	88,014
Profit for the period	54,980	145,459	145,491	115,053	108,289
Statement of financial position
Investment properties	2,521,581	2,615,015	2,462,633	2,477,995	2,304,614
Investments in property, plant and equipment	-15,061	25,803	36,991	19,259	2,648
Balance sheet total	2,807,465	3,020,749	2,723,067	2,772,843	2,580,698
Interest-bearing debt	1,402,935	1,509,471	1,405,024	1,633,364	1,590,916
Total equity	1,087,024	1,217,038	1,071,946	931,133	810,652
Statement of cash flows
Cash flows from operations	40,219	57,999	61,966	92,856	87,930
Cash flows from investment	116,508	-17,777	137,919	-125,487	51,825
Cash flows from financing	-290,015	104,447	-238,341	39,927	-94,668
Other disclosures
Non-current liabilities as a proportion of total liabilities (%)	95.6	95.7	94.1	89.7	94.1
Share capital	57,175	67,513	67,513	67,513	67,513
Share price, end of period (DKK)	13.90	14.10	10.00	6.65	6.7
Share price change in points	-0.20	4.10	3.35	-0.05	0.9
Dividend per share	0.0	0.0	0.0	0.0	0.0
Number of employees in the Group (average)	27	26	26	32	27

	2022	2021	2020	2019	2018
Return on property portfolio (% p.a.)	3.9	4.3	4.7	5.8	5.9
Average loan rate (% p.a.)	2.1	1.8	1.8	1.8	2.0
Return margin on property portfolio (% p.a.)	1.8	2.5	2.9	4.0	3.9
Return on equity (%)	5.1%	11.9%	13.6%	12.4%	13.4%
Equity ratio (%)	38.7%	40.3%	39.4%	33.6%	31.4%
Net asset value per share, end of period (DKK)	19.0	18.0	15.9	13.8	12.0
Earnings per share (avg. Number of shares) (DKK)	1.1	2.2	2.2	1.7	1,7
Dividend yield (%)	0.0	0.0	0.0	0.0	0.0
Share Price/net asset value, end of period	0.3	0.4	0.4	0.5	0.6
Cash flow per share (DKK)	0.7	0.9	0.9	1.4	1.4

The above financial ratios are calculated in accordance with the definitions in Note 22 to the parent company financial statements in the Annual report for 2022.

Financial Results

Yearly result compared to expected development

The Group achieved in 2022 an EBVAT (profit excluding value adjustments and tax) of DKK 42.9 million (2021:DKK 56.8 million), as compared to expectations of DKK 50 million, primarily driven due to a combination of reduction in number of assets from sale of properties, leading to lower income, combined with an increase in financial expenses due to changes in interest rates. Furthermore there was an increase in new leasing adding to costs for marketing activity, and an increase in energy costs related to vacant units.

Segment Information

Park Street does not present segment information and the Group's portfolio is presented as one.

Operation from Investment Properties

The Group's investment properties at 31 December 2022 is composed of all the Group's 46 properties, excluding

▪ 2 properties classified as domicile property

The Group's investment properties are geographically concentrated in Greater Copenhagen and Zealand. Based on investment property values, the portfolio allocates as follows:

Amount in Million DKK	2022		2021
Zealand	1.852	74%	1.825	69%
Bornholm	0	0%	38	1%
Fyn	233	9%	249	9%
Jutland	413	17%	524	20%
Total	2.497		2.636

The breakdown by activity based the property value is split as follows:

Residential Project	511	20%	470	18%
Office	827	33%	842	32%
Retail	581	23%	692	26%
Hotel	99	4%	92	3%
Storage	24	1%	26	1%
Total	2.497		2.636

The following table shows the calculated average vacancy divided by property types:

Average vacancy in %	2022	2021
Retail	13.67%	19.28%
Office (*)	17.46%	24.00%
Residential	8.83%	10.85%
Storage	53.54%	39.86%
Others	0.00%	0.00%
Total	20.47%	22.25%

The following table shows the calculated average gross rent obtained divided by property types on properties held at 31 December 2022:

Avg. gross rent per sqm p.a. (DKK)	2022	2021
Retail	1,058	1,184
Office	1,110	969
Residential	2,059	2,256
Storage	412	405
Other	988	924
Total	1,136	907

Consolidated Financial Review

PROFIT AND LOSS

Park Street's Net Profit is DKK 55 million for 2022 (2021: DKK 145.4 million), equivalent to a change of DKK 99.5 million in relation to 2021.

As mentioned above the EBVAT in 2022 is DKK 42.9 million (2021: DKK 56.9 million), which is DKK 14 million lower than the one achieved in 2021. The reduction is primarily driven by the reduction of the gross profit (DKK -12.7 million), due to a reduction in rental income (- DKK 7.9 million) and primarily driven by the sale of properties, intentional vacancy in order to intiate residential projects and a delay on filling vacancies due to the uncertainties caused by the post Covid-19 impact. This has partially been offset by an increase in income received from the hotels in the group (DKK 5.8 million).

The Net Profit for the period is DKK 55 million (2021: DKK 145.4 million) is due to fair value adjustment in 2022 with a net of DKK 36.1 million while the fair value adjustment in 2021 had a net effect of DKK 128.9 million. To finalize, the effect of the Tax on profit in 2022 is DKK -19.5 million (2021: DKK -41.8 million) due to a relatively lower increase in fair value adjustments.

BALANCE SHEET

Park Street's Net Assets as at 31 December 2022 were DKK 2,807.5 million, an decrease of DKK 212 million on the balance sheet total at 31 December 2021. The decline is mainly due to sale of investment properties leading to a reduction of DKK 84.2 million and a decrease in current assets of DKK 127.2 million (from DKK 205.9 million at 31 December 2021 to DKK 78.6 million at 31 December 2022) due to proceeds from sale of investment properties, financing and re-financing activities. There was a positive revaluation of investment and domicile properties of DKK 36.1 million. Non-current assets were DKK 2,728.8 million at 31 December 2022 (2021: DKK 2,813.6 million).

The Group's equity as at 31 December 2022 was DKK 1,087 million, compared to DKK 1,217 million as at 31 December 2021. The decline in the Group's equity is mainly due to the decrease in the profit for the period with DKK -99.5 million.

Liabilities to credit institutions were DKK 1,402.9 million as at 31 December 2022 (31 December 2021: DKK 1,509.5 million), consisting of DKK 1,382.6 million (99%) for non-current liabilities and DKK 20.3 million (1%) for current liabilities. In 2022, financial liabilities were decreased by DKK 106.6 million driven by decrease in debt and amortization repayments to credit institutions.

CASH FLOWS FOR 2022

Cash flows from operating activities for 2022 were DKK 40.2 million (2021: DKK 58 million), equivalent to a decrease of DKK 17.8 million in relation to the same period last year. The decrease is primarily due to the decrease of operating profit (EBIT) previously mentioned.

Cash flows from investing activities for 2022 were DKK 116.5 million (2021: DKK -17.8 million). Cash flows from investing activities increased compared to the previous year due to larger sale of assets in 2022 as compared to 2021 (2022: DKK 216 million, 2021: DKK 8 million). There was lower improvements made to investment properties of DKK -99 million (2021: DKK -25.8 million).

Cash flows from financing activities for 2022 were DKK -290 million (2021: DKK 104.4 million) mainly driven by the repurchase of new shares of DKK 183.5 million, paydown of financing and amortization repayments to credit institutions of DKK 174.5 million.

The Group's liquid assets amounted to DKK 34.5 million at 31 December 2022 against DKK 167.8 million as at 31 December 2021.

Uncertainty in connection with recognition and measurement

In connection with the Annual report, management makes a number of estimates and assessments regarding the carrying amount of assets and liabilities, including:

• Fair value of investment properties,
• Fair value of domicile properties,
• Impairment test on domicile properties,
• Classification of properties,
• Deferred tax assets and tax liabilities

Because of assumptions, assessments and estimates, uncertainty relates to the mentioned conditions and items. It may be necessary to change previously made estimates, etc. due to changes in the circumstances underlying the estimate, changed strategy or due to additional information, further experience or subsequent events. Reference is made to note 1 of the consolidated financial statements and note 1 in the parent company's financial statements for further discussion of the assumptions, assessments, estimates and associated uncertainties.

Parent company Park Street A/S

For the parent company Park Street A / S, profit before tax amounts to DKK 79.5 million in 2022 (2021: DKK 187.2 million).

The parent company's profit and loss before tax is affected by a decrease of the retail income of DKK 32 million (2021: DKK 8 million).

Parent company equity per 31 December 2022 amounts to DKK 1,087 Million (31 December 2021: DKK 1,217 million).

Risk factors

Financial Risk

The financial management of the Group is geared towards optimising the term structure of liabilities in line with the Group's operations and minimizing the Group's financial risk exposure. It is part of the Group's policy not to conduct speculative transactions by active use of financial instruments, except to manage the financial risks inherent to the Group's core activities.

The Group is exposed to various financial risks due to its activities, including liquidity risk, market risks (primarily interest rate risk) and credit risk.

Park Street regularly reviews the Group's risk profile in the areas of greatest risk, as per above description on page 2 and on the Consolidated Financial Statements Note 1 and 28.

Other financial risks

Park Street financial risks are described in the consolidated financial statements, Note 28 and includes a description of the following components:

• Liquidity risk
  • Refinancing risk
  • Liquidity risk management
• Interest rate risk.
• Credit risk.
• Capital management.

Refer to the information in Note 28.

Business risks

Park Street is subject to normal commercial and societal risks applicable to players in the Danish real estate market.

Park Street's significant business risks can be divided into the following categories:

• Properties market value
• Market Rent
• Vacancy
• Maintenance
• Sales of properties
• Errors and omissions concerning the renovation and new construction.

Properties market value

Park Street values investment properties at fair value (market value) and includes valuation adjustments in net profit. Park Street's portfolio of properties constitute a large share of the Group's balance sheet, which means that sensitivity to falling prices in the property market is relatively large.

Property value is influenced by several factors, including a particular value sensitivity to fluctuations in the following parameters:

• i. Market rent
• ii. Vacancy
• iii.Yield

Estimated changes in the properties' fair value changes of the parameters above are disclosed in note 1 to the consolidated financial statements.

Market Rent

Part Street's portfolio of leases are generally at market rent levels. The Group has an opportunity to review the leases where there is a gap to market rents using section 13 clause to migrate the lease levels closer to market rents. Improving demand for space and increasing market rents could also give an opportunity to make capital investments on structurally vacant areas of the portfolio to create further lettable areas.

Renegotiating with existing tenants could create the risk of increased vacancy, which in turn will create a need for further capital investment requirements for upgrading the vacant space.

Vacancy

Park Street is dependent on the ability to maintain or create a natural user requirement for the properties.

In the case of a tenant's relocation of a lease, there is a risk that the vacant lease cannot be re-leased within the expected time horizon or, if necessary, can only be leased at lower rent level than expected. In addition, vacancy rates are affected by the general economic situation in the area where the individual property is situated.

Maintenance

The basis for obtaining rental income is, of course, that Park Street can offer leases that meet the expectations and requirements of the tenants, including a satisfactory maintenance condition for the property.

Lack of maintenance of properties therefore creates a risk to Park Street. Lack of maintenance can be due to many conditions, such as structural deficiencies, unforeseen wreckage, vandalism, extreme weather conditions, etc. The company prepares long term maintenance budgets and carries out the maintenance work necessary to maintain a satisfactory maintenance condition on the properties.

Sales of properties

Park Street sells properties that are suitable to sell. The selling price is naturally linked to uncertainty as it depends on the actual negotiation situation at the time of sale and is also influenced by a number of other factors, including the rental income of the property, the general interest rate level and market conditions at the time of sale.

Errors and deficiencies regarding rebuilding and newbuilding

When rebuilding the existing properties of the Group, or in the case of new construction, there is a risk of malfunctioning. Park Street ensures against this through contracts with the Group's suppliers (contractors, etc.) who will be required to correct any deficiencies. In cases where suppliers have gone bankrupt or for some reason cannot fill their obligations, Park Street may, however, have to rectify defects at your own expense, provided there is no guarantee or other security from the suppliers.

Other risks

Other risks can be divided into the following categories:

• Insurance risks.
• Tax risks.
• Legal risks.
• IT risks.

Insurance risks

Park Street subscribes to statutory insurance and insurance policies that are deemed to be relevant and customary. The Group regularly conducts an insurance review with the assistance of an insurance specialist. Based on the latest report on the company's insurance coverage, management believes that Park Street has sufficient insurance coverage.

Tax risks

Changes in tax legislation may affect Park Street's fiscal situation.

Legal risks

Park Street regularly enters into a number of agreements, including agreements concerning the operation of properties. The agreements involve opportunities and risks, which are assessed and hedged in connection with the conclusion of the agreements.

IT risks

Park Street uses IT to a considerable extent and are thus exposed to operational disruption of the established IT safety. This can cause operating and financial losses. Park Street constantly works to ensure a high level of IT security, which is currently estimated to be the case.

Statutory report CSR

Business model

Please, refer to the section Main Activity on page 2.

Risks related to CSR

While Park Street generally and based upon our business model has not identified nor experienced any material risks in relation to CSR, the Company has decided to author and implement policies with respect to environment, climate change, human rights, social and employee conditions and anticorruption due to our social responsibility in each of the business activities that are performed. CSR is reflected in the way we manage and refurbish our properties, in our relationship with tenants, employees, business partners and any stakeholder that the Group operates with.

Policies, activities and results

• Environmental and climate conditions: In connection with the re-devolpment and maintenance of the existing assets Park Street is following all applicable building regulations with the the goal of reducing energy consumptions. In 2022, the Group invested over DKK 96 million in the maintenance and modernization of the existing properties.
• Social conditions and employee relations and respect for human rights: Employees are the most important resource for progress, and therefore the Group is constantly working to ensure a healthy physical and mental work environment with a focus on reducing sickness absence. Park Street supports all human rights within national laws as well as international laws, and acknowledges the importance of supporting the local community as well as helping in a larger perspective. In order to support the data protection for individuals, the Group is implementing and continuously improving processes and IT measures to meet the EU GDPR standards. At the same time a policy is getting established for development of future employees. No breach of these policies have been identified in 2022.
• Anti-corruption and bribery: The Group is has invested to develop systems for transparently reviewing invoices and implemented a vendor and property specific approval policy and workflows to mitigate any risks related to expenses. The group has established an Anti-corruption policy were employees and business partners are not allowed to receive gifts from suppliers larger than DKK 500. In connection with the ongoing controlling of employees, the Group has strict guidelines on only paying bills according to legal documents with documented expenses, and that prices are benchmarked against usual costs. No corruption has been detected in 2022.
• Data ethics: The Park Street Group does not have a formalized policy on data ethics. Park Street only processes data for business purposes. Park Street does not make use of new technologies such as artificial intelligence, advanced algorithms, monitoring and the like. Data processed in Park Street is not made available to third parties. Should there be a desire to make data available to third parties, it should be approved by the company's top management. The Park Street Group complies with applicable legislation for the processing of personal data. As a rule, the Group does not process personal data, apart from what relates to employee data.

Legal requirements for corporate governance

Park Street has chosen on the company's website to publish the statutory statement of business management, according to section § 107b of the Danish Financial Statements Act (Årsregnskabslovens § 107b.).

The full statutory report available on our websitehttp://www.psnas.com/index.php/corporate-governance-statement/

Statutory report on diversity in management

Park Street's board composed at the time of publication of the annual report for 2022 by three men and one woman. In accordance with the Danish Commerce and Industry Agency's (Erhvervsstyrelsens) "Guidelines on targets and Policies for Gender Composition of Management and Reporting on this issue" issued in March 2016, Park Street has a sub-representation of the board (top Management body).

Park Street has set a target for the underrepresented gender in the Board of Directors (top Management body). Park Street has chosen that the under-represented sex must be represented by 40% of the board by the end of 2022. Consequently the goal of 40% women in the Board of Directors has not been met yet as no candidates of the underrepresented gender were up for election in the previous year.

Since the number of employees in the Group is less than 50, Park Street is not required to develop policies to increase the proportion of underrepresented gender in the Group's other management levels, however the percentage of female employees represents 50% of the employees in the Group by the end of 2022. Group's overall policy is to employ or promote the best suitable candidates no matter of gender.

Internal control and risk management systems in relation to the accounting process

Park Street Board of Directors and the Audit Committee have the overall responsibility for risk management and internal controls in relation to the presentation of the Group financial statements. Group's internal control and risk management systems relating to the accounting process are designed to minimise the risk of irregularities and significant errors in the published financial statements.

The Board of Directors / Audit Committee regularly assess material risks and internal controls in order to ensure that the control environment of Park Street provides a good risk management and effective internal control.

At least once a year, as part of risk assessment, the Board of Directors / Audit Committee and the Executive Board undertake a general identification and assessment of risks in connection with the financial reporting, including the risk of fraud, and consider the measures to be implemented in order to reduce or eliminate such risks.

The Board of Directors is overall responsible for the Group having information and reporting systems in place to ensure that its financial reporting is in conformity with rules and regulations. For this purpose, the Company has set out detailed requirements in policies, manuals and procedures.

The internal control and risk management systems are monitored at different levels within the Group. Any weaknesses, control failures and violations of the applicable policies, manuals and procedures or other material deviations are communicated upwards in the organization in accordance with relevant policies and instructions. Any weaknesses, omissions and violations are reported to the Executive Board.

The auditors elected by the Annual General Meeting account for any material weaknesses in the internal control systems related to financial reporting in the Auditor's Long-form Report to the Board of Directors. Minor irregularities are reported in Management Letters to the Executive Board.

Management composition and remuneration

The management of Park Street consist of the following:

• Board Directors
• Executive Board

	Appointed / Employee	Expiry of electoral term	Age	Shareholding at the beginning, number of shares	Share buy in the year, number of shares	Shareholding at the end of the year	Independence	Sex
Board of Directors
Andrew LaTrobe (*)	2017	2023	57	0	0	0	Not Independent	M
Pradeep Pattem ()(*)	2016	2023	46	6,722,484	0	6,722,4841)	Not Independent	M
Ohene Kwapong	2016	2023	61	0	0	0	Independent	M
Anita Nassar()(***)	2016	2023	60	0	0	0	Independent	F
Claes Peter Rading	2021	2023	60	0	0	0	Independent	M

(*) Anita Nassar holds the position of chairman of the Board

(**) Pradeep Pattem holds the position of CEO of the Company

(***) Pradeep Pattem holds controlling rights in Park Street Nordac Sarl through Park Street Asset Management

(****) Anita Nassar hold shares in Park Street Nordac Sarl without controlling rights

(*****) Andrew LaTrobe has not been re-elected after the Annual General Meeting held on April 25, 2022

1) Acquired via Park Street Asset Management Ltd.

Remuneration to the Board of Directors and Executive Board

The purpose of the Group's remuneration, including any incentive remuneration, is to attract and retain the group's management skills and promote the management incentive to realize Park Street's objectives and create value in and for the company.

A remuneration policy has been prepared that describes the guidelines for defining and approving remuneration for the members of the Board of Directors and the Executive Board. The remuneration policy approved at the company's general meeting and is available on www.nordicom.dk and www.psnas.com.

The board members receive a fixed monthly fee. The Chairman receives DKK 250,000 annually, the Vice Chairman of the Board (currently vacant) receives DKK 150,000 annually, and other Board members receive DKK 100,000 annually. In addition, the Chairman of the Audit Committee receives DKK 75,000 annually and other members of the Audit Committee receive DKK 50,000 annually.

The remuneration for the members of the Board of Directors in 2022 is shown in Note 5 of the consolidated financial statements.

Salary and employment conditions for the Executive Board are set at least once a year by the Board of Directors. The salary consists of fixed salary, without bonus and pension. In addition, the Executive Board receives free telephone, etc. Total wage package is composed so that the fees are set at a competitive level, taking into account the competencies and efforts of the Executive Member and the results achieved. Reference is made to Note 5 of the consolidated accounts regarding remuneration to the Executive Board.

Board of Directors and Management

Pradeep Pattem (Indian Citizen), Director and CEO

Pradeep Pattem is a graduate engineer from the Delhi Institute of Technology and has an MBA from the Indian Institute of Management, Calcutta. As the founder and CEO of Park Street Advisors Limited, Pradeep has advised and implemented investments in across Europe since its establishment in 2014. Pradeep previously had a position as Managing Director, Head of Credit & Mortgage Markets for Europe and Asia in the Royal Bank of Scotland (RBS). In connection with the employment in RBS, Pradeep also held senior positions as a member of the Global Trading Management Committee, the Chairman of the Strategic Investments Committee and the Chair of Credit & Mortgage Risk and Compliance Committee.

Director Positions Park Street Asset Management Limited, England Park Street Advisors, England Park Street A/S Pulse Taastrup P/S, Denmark Pulse Glostrup P/S, Denmark PS Holdco I P/S Pulse Glostrup P/S Pulse Taastrup P/S Pulse O P/S Pulse N P/S Svanevej P/S Ballerup Hotel P/S Toldbuen P/S

Management positions CEO of Park Street A/S, Denmark Phoam Studio ApS PSN ApS Pulse Living ApS Albuen ApS

PS I ApS

Ohene Aku Kwapong (US citizen, Ghanaian citizen)

Ohene Aku Kwapong is a graduate of Massachusetts Institute of Technology's (MIT) Sloan School of Management, Cambridge, Massachusetts, with MBA in Financial Engineering and also studied Chemical / Nuclear Engineering at MIT. He holds a PHD in Non-linear Systems Dynamics from Columbia University, New York. Ohene Aku has previously held senior positions at Exxon Mobil, Deutsche Bank London, Senior Manager at Microsoft Corporation, VP at GE Capital, Senior Vice President at the New York City Economic Development Corporation, Senior VP at Deutsche Bank in New York, and COO EMEA Credit at Royal Bank of Scotland in London. Since 2014, Ohene Aku has been engaged in consultancy in restructuring and launched The Songhai Group, a corporate development company.

Management Positions Managing Partner, The Songhai Group, US. Director positions Ecobank Ghana, Risk and Governance Committees. The Practice School, an executive management skills company. Trustee, Head of State Award Scheme – Ghana.

Anita Nassar (formerly Kamal) (French citizen)

Anita Nassar holds a bachelor's degree in business administration from the American University of Beirut. Anita is the founder of 'Alternative Consultant Group'. Ms Nassar is Partner and Senior Managing Director at Balyasny Asset Management. She is also a member of BAM's Management Committee. Anita joined BAM from Citadel where she was a Partner and Managing Director serving Europe, the Middle-East, Africa and Asia Pacific. Prior to joining Citadel, Anita served at Merrill Lynch, London as Managing Director, Co-Head of Government Institutions Sales. Previously, she worked at HSBC London as Managing Director, Global Head of Government Sales, serving Asia, Europe, and the Americas.

Management Positions Founder and CEO at Alternative Consultant Group. Partner, Senior Managing Director at Balyasny Asset Management.

Director positions Board of Trustees at Northeastern University, Boston, USA. Endowment Trustee in the Funds and Investments Subcommittee at Northeastern University, Boston, USA.

Claes Peter Rading (Swedish citizen)

Peter Rading is a Swedish citizen who graduated with a Bachelor of Science in Business Administration Summa Cum Laude from Georgetown University DC in 1986. He worked for Royal Bank of Scotland Plc from 1990 to 2013, running multiple complex global businesses for the bank between 2000 and 2013, when he then retired from the bank and the banking industry. His final position at the bank was as Global Co-Head of Trading and included his serving on the Investment Bank executive committee, the Markets division management committee and as Chair of the bank's technology board. Since his departure from Royal Bank of Scotland Plc in 2013, Peter has actively focused on private investment activity in the real estate sector, including an active involvement in the Nordics and high growth specialist real estate sub-sectors.

Director positions: Elwyn Green Ltd IP Nexus, US Kamo River Investments Ltd LocalCircles India Pvt Ltd, India Seequestor, UK Tillingbourne (Canterbury) Ltd Tillingnourne (Horham) Ltd

Shareholder structure

Share capital	DKK 57,175,572
Nominal share amount	DKK 1
Number of shares	57,175,572 shares
	DKK 12,827,637 A-shares Listed
Share Classes	DKK 44,347,935 B-shares Not listed
Number of votes per share	One
Bearer	Yes
Restriction on voting rights	No
Limitations on transferability	No
ISIN	DK0010158500
Stock Exchange	Nasdaq Copenhagen
Shareholders above 5%	In percent
Park Street Asset Management Ltd.	93.06%

The number of registered shareholders amounts as of 31 December 2022 to 865 pcs. (December 31, 2021: 913 pcs.). The registered shareholders represent per 31 December 2022 99% of the share capital (31 December 2021: 99%).

All Park Street A / S shares are listed on Nasdaq Copenhagen and are part of the Small Cap segment. The share price ended 31 December 2022 at price 13.9 (31 December 2021: 14.1), which is a decrease of 0.2 points in relation to the share price per share as of 31 December 2022. The market value of Park Street A / S constitute as of 31 December 2021 178.3 million (31 December 2021: DKK 169.59 million).

Appointment of board members

Rules of appointing and replacing members of the board of directors are included in the section 13.1 of the articles of association.

Rules for changing articles of association

Park Street A/S articles of association can be changed by a General Meeting in accordance with the Companies Act §§106 and 107. Resolution on amendment of the Articles of Association are only valid if the resolution is approved by at least 2/3 of both voting rights and percentage of equity which are present at the meeting.

Own shares

Information about treasury shares is shown in note 23 of the consolidated financial statements.

Dividends

The Board of Directors deems it prudential to propose to the Annual General Meeting that no dividend will be paid for the financial year 2022.

Investor Relations

It is Park Street's policy to inform quickly about relevant matters.

The Executive Board informs shareholders and investors according to guidelines agreed with the Board, and it is the goal to meet the information obligations of Nasdaq Copenhagen each time. It is part of Park Street's information policy to:

• publish interim reports,
• issue annual reports, and
• provide quick responses to inquiries to the group.

Stock exchange announcements in 2023 and 2022

Date	Title
02-03-2023	Park Street A/S : 2023 Strategy
28-12-2022	Park Street A/S – New Share buyback program
21-12-2022	Park Street A/S – New Share buyback program
14-12-2022	Park Street A/S – New Share buyback program
07-12-2022	Park Street A/S – New Share buyback program
30-11-2022	Park Street A/S – New Share buyback program
23-11-2022	Park Street A/S – New Share buyback program
16-11-2022	Park Street A/S – New Share buyback program
09-11-2022	Park Street A/S – New Share buyback program
02-11-2022	Park Street A/S – New Share buyback program
26-10-2022	Park Street A/S – New Share buyback program
19-10-2022	Park Street A/S – New Share buyback program
12-10-2022	Park Street A/S – New Share buyback program
05-10-2022	Park Street A/S – New Share buyback program
28-09-2022	Park Street A/S – New Share buyback program
21-09-2022	Park Street A/S – New Share buyback program
14-09-2022	Park Street A/S – New Share buyback program
26-08-2022	Park Street A/S – Park Street Interim Report Half Year 2022
26-08-2022	Park Street A/S – Park Street Interim Report Half Year 2022

19-07-2022	Park Street A/S – Conversion of class B shares into listed class A shares
11-06-2022	Park Street A/S – Reduction of share capital
25-04-2022	Park Street A/S – Results of general meeting 2022
12-04-2022	Park Street A/S – New share buyback program
11-04-2022	Park Street A/S – New share buyback program
01-04-2022	Park Street A/S – New share buyback program
01-04-2022	Park Street A/S – Annual Report 2021
01-04-2022	Park Street A/S – Annual Report 2021
01-04-2022	Park Street Nordicom A/S – Annual General Meeting 2022
30-03-2022	Park Street A/S – Publishes updated financial calendar
25-03-2022	Park Street A/S – New share buyback program
16-03-2022	Park Street A/S – New share buyback program
07-03-2022	Park Street A/S – New share buyback program
25-02-2022	Park Street A/S – New share buyback program
04-02-2022	Park Street A/S : 2022 Strategy

Financial Calendar

05-04-2023	Annual Report 2022
28-04-2023	Ordinary General Meeting

More info

Further information on company and shareholder matters and the Group's activities can be found on Park Street's website www.nordicom.dk and www.psnas.com

Inquiries regarding the Group's relations with investors and the stock market can be addressed to: CEO: Pradeep Pattem Tel.: + 45 33 33 93 03 E-mail: parkstreet@parkstreet.dk

Group structure at December 31, 2021

The Group structure at December 31, 2022 consists of the company Park Street A/S and the fully owned subsidiaries Pulse Taastrup P/S, Pulse Glostrup P/S, Pulse N P/S, Pulse O P/S, Ballerup Hotel P/S, Svanevej P/S, Toldbuen P/S, PS Holdco I P/S, Phoam Studio ApS, PSN ApS, Pulse Living ApS, Albuen ApS, PS I ApS, and Park Street UK.

Information on investment is disclosed in note 8 of the parent company's financial statements. All subsidiaries are fully consolidated in the consolidated financial statements of Park Street A/S.

Statement by Board of Directors and Management

The Board of Directors and management have today considered and adopted the annual report for the financial year 1 January - 31 December 2022 for Park Street A/S.

The annual report is prepared in accordance with International Financial Reporting Standards as adopted by the EU, and further requirements in the Danish Financial Statement Act and rules for listed companies.

In our opinion, the consolidated financial statements and the parent company financial statements give a true and fair view of the Group and the Parent's financial position as at 31 December 2022 and of the results ofthe Group's and the Parent Company's operations and cash flows for 2022.

It is also our opinion that the directors' report contains a true and fair account of the development of the Group's and the parent company's activities and financial conditions, the profit for the period and the Group's and the Parent Company's financial position as a whole, and a description of the significant risks and uncertainty factors that the Group and the Parent Company faces.

In our opinion, the annual report of Park Street A/S for the financial year 1 January to 31 December 2022 with the file name 213800VGJC18MRK-MZC33-2022-12-31-en.zip is prepared, in all material respects, in compliance with the ESEF Regulation.

The annual report is submitted to the Ordinary General Meeting for approval.

Copenhagen, 5 April 2023

Management

Pradeep Pattem CEO

Board of Directors

Chairman

Anita Nassar Pradeep Pattem

Ohene Aku Kwapong Claes Peter Rading

Independent Auditor's Report

To the shareholders of Park Street A/S

Report on the audit of the Financial Statements

Our opinion

In our opinion, the Consolidated Financial Statements and the Parent Company Financial Statements give a true and fair view of the Group's and the Parent Company's financial position at 31 December 2022 and of the results of the Group's and the Parent Company's operations and cash flows for the financial year 1 January to 31 December 2022 in accordance with International Financial Reporting Standards as adopted by the EU and further requirements in the Danish Financial Statements Act.

Our opinion is consistent with our Auditor's Long-form Report to the Audit Committee and the Board of Directors.

What we have audited

The Consolidated Financial Statements and Parent Company Financial Statements of Park Street A/S for the financial year 1 January to 31 December 2022 comprise income statement and statement of comprehensive income, statement of financial position, statement of equity, statement of cash flows and notes, including summary of significant accounting policies for the Group as well as for the Parent Company. Collectively referred to as the "Financial Statements".

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs) and the additional requirements applicable in Denmark. Our responsibilities under those standards and requirements are further described in the Auditor's responsibilities for the audit of the Financial Statements section of our report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We are independent of the Group in accordance with the International Ethics Standards Board for Accountants' International Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical requirements applicable in Denmark. We have also fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code.

To the best of our knowledge and belief, prohibited non-audit services referred to in Article 5(1) of Regulation (EU) No 537/2014 were not provided.

Appointment

We were first appointed auditors of Park Street A/S on 27 April 2017 for the financial year 2017. We have been reappointed annually by shareholder resolution for a total period of uninterrupted engagement of 6 years including the financial year 2022.

Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the Financial Statements for 2022. These matters were addressed in the context of our audit of the Financial Statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Key audit matter	How our audit addressed the key audit matter
Valuation of Investment Properties and Domiciles
The Group owns a portfolio of investment properties that are val ued at fair value and 2 domiciles that are revalued to fair value at 31 December 2022.	We assessed the method used by management to measure the fair value of investment properties and domiciles, and we challenged the assumptions applied, using our knowledge of the real estate market and professional scepticism.
Valuation of investment properties and domiciles at fair value
contains significant estimates based on significant assumptions, where even minor changes in the assumptions can have a signifi cant effect on the fair value of the properties.	We assessed the competencies and independence of external valuer used by Management.
Management has used the capitalisation method to determine the fair value. The model is descripted in note 1.2, with market rent and yield being the significant assumptions.	We assessed and tested on a sample basis the data inputs used to determine fair value, including market rent and yields, by comparing the valuation made by Management with the valuation made by the external valuer and comparable trades.
Management has obtained valuations from an external valuer to support the fair value determined by Management; including the assumptions used, with market rent and yield being the signifi cant assumptions.	We tested on a sample basis the calculation for the fair values includ ing the assumptions used and the related disclosures in the notes.
We focused on this area as valuation of investment properties and domiciles at fair value is based on significant estimates which are subjective and a high degree of estimation uncertainty.
Refer to note 1.2,9, 14 and 15.

Statement on Management's Review

Management is responsible for Management's Review.

Our opinion on the Financial Statements does not cover Management's Review, and we do not express any form of assurance conclusion thereon. In connection with our audit of the Financial Statements, our responsibility is to read Management's Review and, in doing so, consider whether Management's Review is materially inconsistent with the Financial Statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

Moreover, we considered whether Management's Review includes the disclosures required by the Danish Financial Statements Act. Based on the work we have performed, in our view, Management's Review is in accordance with the Consolidated Financial Statements and the Parent Company Financial Statements and has been prepared in accordance with the requirements of the Danish Financial Statements Act. We did not identify any material misstatement in Management's Review.

Management's responsibilities for the Financial Statements

Management is responsible for the preparation of consolidated financial statements and parent company financial statements that give a true and fair view in accordance with International Financial Reporting Standards as adopted by the EU and further requirements in the Danish Financial Statements Act, and for such internal control as Management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the Financial Statements, Management is responsible for assessing the Group's and the Parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless Management either intends to liquidate the Group or the Parent Company or to cease operations, or has no realistic alternative but to do so.

Independent Auditor's Report (continued)

Auditor's responsibilities for the audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Financial Statements.

As part of an audit in accordance with ISAs and the additional requirements applicable in Denmark, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the Financial Statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's and the Parent Company's internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management.
• Conclude on the appropriateness of Management's use of the going concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's and the Parent Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group or the Parent Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the Financial Statements, including the disclosures, and whether the Financial Statements represent the underlying transactions and events in a manner that gives a true and fair view.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the Consolidated Financial Statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence and, where applicable, actions taken to eliminate threats or safeguards applied.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the Financial Statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter.

Report on compliance with the ESEF Regulation

As part of our audit of the Financial Statements we performed procedures to express an opinion on whether the annual report of Park Street A/S for the financial year 1 January to 31 December 2022 with the filename 213800VGJC18MRKMZC33-2022-12-31-en.zip is prepared, in all material respects, in compliance with the Commission Delegated Regulation (EU) 2019/815 on the European Single Electronic Format (ESEF Regulation) which includes requirements related to the preparation of the annual report in XHTML format and iXBRL tagging of the Consolidated Financial Statements including notes.

Independent Auditor's Report (continued)

Management is responsible for preparing an annual report that complies with the ESEF Regulation. This responsibility includes:

• The preparing of the annual report in XHTML format;
• The selection and application of appropriate iXBRL tags, including extensions to the ESEF taxonomy and the anchoring thereof to elements in the taxonomy, for all financial information required to be tagged using judgement where necessary;
• Ensuring consistency between iXBRL tagged data and the Consolidated Financial Statements presented in human-readable format; and
• For such internal control as Management determines necessary to enable the preparation of an annual report that is compliant with the ESEF Regulation.

Our responsibility is to obtain reasonable assurance on whether the annual report is prepared, in all material respects, in compliance with the ESEF Regulation based on the evidence we have obtained, and to issue a report that includes our opinion. The nature, timing and extent of procedures selected depend on the auditor's judgement, including the assessment of the risks of material departures from the requirements set out in the ESEF Regulation, whether due to fraud or error. The procedures include:

• Testing whether the annual report is prepared in XHTML format;
• Obtaining an understanding of the company's iXBRL tagging process and of internal control over the tagging process;
• Evaluating the completeness of the iXBRL tagging of the Consolidated Financial Statements including notes;
• Evaluating the appropriateness of the company's use of iXBRL elements selected from the ESEF taxonomy and the creation of extension elements where no suitable element in the ESEF taxonomy has been identified;
• Evaluating the use of anchoring of extension elements to elements in the ESEF taxonomy; and
• Reconciling the iXBRL tagged data with the audited Consolidated Financial Statements.

In our opinion, the annual report of Park Street A/S for the financial year 1 January to 31 December 2022 with the file name 213800VGJC18MRK-MZC33-2022-12-31-en.zip is prepared, in all material respects, in compliance with the ESEF Regulation.

Hellerup, 5 April 2023 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab CVR no 33 77 12 31

Torben Jensen Jacob Dannefer State Authorised Public Accountant mne18651

State Authorised Public Accountant mne47886

Park Street/ Independent Auditor's Report

Park Street/ Independent Auditor's Report

35

CONSOLIDATED FINANCIAL STATEMENTS

Income statement

Note	Amounts in DKK 1000s	2022	2021
3	Net sales	153,281	158,264
4	Operating expenses	-48,606	-40,846
	Gross profit	104,675	117,418
5	Employee benefit expenses	-17,231	-17,808
6	Other expenses, by nature	-10,936	-12,532
7	Depreciation, amortisation and impairment	-3,678	-4,330
	Operating profit (EBIT)	72,830	82,748
8	Financial expenses	-29,932	-25,881
	Earnings before value adjustments (EBVAT)	42,898	56,867
9	Adjustment to fair value, net	36,066	128,887
10	Gains realised on the sale of investment properties	-4,466	1,472
	Profit before tax	74,498	187,225
11	Tax on profit for the period	-19,518	-41,767
	Profit for the period	54,980	145,458
	Distributed as follows
	Parent's shareholders	54,980	145,458
	Profit for the period	54,980	145,458
12	Earnings per share, end of period	1.00	2.85
12	Diluted earnings per share, end of period	1.00	2.85

Note	Amounts in DKK 1000s	2022	2021
	Profit for the period	54,980	145,458
	Other comprehensive income:
	Items that cannot be reclassified to the income statement:
	Fair value adjustment of domicile properties	11,252	-503
	Tax on fair value adjustment of domicile properties	-2,420	111
	Other comprehensive income after tax	8,832	-392
	Comprehensive income for the period	63,812	145,066
	Distributed as follows
	Parent's shareholders	63,812	145,066
	Comprehensive income for the period	63,812	145,066

Statement of comprehensive income

Statement of financial position

Note	Amounts in DKK 1000s	2022	2021
	ASSETS
	Non-current assets
	Intangible assets
13	Software	446	1,865
13	Capitalised leasing costs	625 1,071	0 1,865
	Investment property and Property, plant and equipment
14	Domiciles	203,462	194,000
15	Investment properties	2,521,581	2,615,015
16	Machinery and equipment	507	490
		2,725,550	2,809,506
	Financial assets
17	Investment in associates	2,029	2,029
	Deposits	161	186
		2,190	2,215
	Total non-current assets	2,728,811	2,813,586
	Current assets
18	Current financial assets at amortised cost	7,412	7,671
19	Trade and other current receivables	28,594	23,973
	Income tax receivable	6,774	3,770
	Prepaid expenses and accrued income	2,609	2,662
20	Cash and cash equivalents	34,532	167,820
	Total current assets	78,654	205,896
	Total assets	2,807,465	3,019,482
	Equity	57,175
	Share capital		67,513
	Revaluation reserve	59,961	52,920
	Share Premium	289,260	289,260
	Accumulated profit	680,628	807,345
21,22	Total equity	1,087,024	1,217,038
	LIABILITIES
	Non-current liabilities
23	Deferred tax	254,025	232,087
24	Borrowings	1,382,643	1,488,364
	Deposits	10,224	5,163
		1,646,892	1,725,614
	Current liabilities
25	Provisions for liabilities	400	400
24	Current borrowings	20,293	21,107
	Trade and other payables Deposits	19,337 27,693	7,718 33,367
	Other liabilities	5,827	14,238
		73,549	76,830
	Total liabilities	1,720,441	1,802,444
	Total equity and liabilities	2,807,465	3,019,482

Statement of equity

Amounts in DKK 1000s	Share capi	Revaluation	Accumulated	Share Pre	Equity
	tal	reserve	profit	mium	Total
Statement of equity for 2022:
Equity as at 1 January 2022	67,513	52,920	807,345	289,260	1,217,038
Comprehensive income for the period
Profit for the period	0	0	54,980	0	54,980
Fair value adjustment of domicile	0	11,252	0	0	11,252
Tax on other comprehensive income	0	-2,420	0	0	-2,420
Other comprehensive income during the financial year	0	8,832	0	0	8,832
Comprehensive income for the period	0	8,832	54,980	0	63,812
Transactions with owners Repurchase own shares	0	0	-183,488	0	-183,488
Capital reduction	-10,338	0	0	0	-10,338
Total transactions with owners	-10,338	0	-183,488	0	-193,826
Other adjustments
Depreciation of revalued value of domiciles	0	-1,790	1,790	0	0
Total other adjustments	0	-1,790	1,790	0	0
Equity as at 31 December 2022	57,175	59,961	680,628	289,260	1,087,024
Statement of equity for 2021:
Equity as at 1 January 2021	67,513	55,107	660,066	289,260	1,071,946
Comprehensive income for the period
Profit for the period	0	0	145,459	0	145,459
Fair value adjustment of domicile	0	-503	0	0	-503
Tax on other comprehensive income Other comprehensive income during the financial year	0 0	111 -392	0 0	0 0	111 -392
Comprehensive income for the period	0	-392	145,459	0	145,066
Transactions with owners
Repurchase own shares	0	0	25	0	25
Total transactions with owners	0	0	25	0	25
Other adjustments
Depreciation of revalued value of domiciles	0	-1,795	1,795	0	0
Total other adjustments	0	-1,795	1,795	0	0
Equity as at 31 December 2021	67,513	52,920	807,345	289,260	1,217,038

Statement of cash flows

Note	Amounts in DKK 1000s	2022	2021
	Operating profit (EBIT)	72,830	82,748
	Adjustment for illiquid operating items, etc.	3,678	4,330
	Change in operating capital	-4,616	5,204
	Cash flows concerning primary operations	71,892	92,282
	Financial income received	0	895
	Financial expenses paid	-29,932	-29,902
	Paid Corporate Tax	-1,742	-5,275
	Total cash flow from operating activities	40,219	58,000
	Cash flow from investing activities
	Improvements to investment properties	-99,024	-25,803
	Sales of investment properties	216,202	8,026
	Purchase of intangible assets	-670
	Total cash flow from investing activities	116,508	-17,777
	Cash flow from financing activities
	Repurchase own shares	-183,479	0
	Proceeds from assumption of liabilities to credit institutions	67,994	503,306
	Repayment of other liabilities to credit institutions	-174,530	-398,859
	Total cash flow from financing activities	-290,015	104,447
	Total cash flow for the period	-133,288	144,669
	Liquid assets as at 1 January	167,820	23,151
	Liquid assets at the end of the period	34,532	167,820
	Liquid assets at the end of the period
	Cash and short term deposits	34,532	167,820
	Liquid assets at the end of the period	34,532	167,820

Summary

Note 1	Accounting policies, accounting estimates and risks, etc.
Note 2	Segment information
Note 3	Net sales
Note 4	Operating expenses
Note 5	Employee benefits expenses
Note 6	Auditor's fees
Note 7	Depreciation and amortization
Note 8	Financial Expenses
Note 9	Adjustment to fair value, net
Note 10	Realized gains on the sale of investment properties
Note 11	Tax on profit for the year and other comprehensive income
Note 12	Earnings per share
Note 13	Intangible assets
Note 14	Domicile
Note 15	Investment properties
Note 16	Machinery and equipment
Note 17	Investment in associates
Note 18	Mortgages and instruments of debt
Note 19	Receivables
Note 20	Cash and cash equivalents
Note 21	Share capital
Note 22	Own shares
Note 23	Deferred taxes
Note 24	Borrowings
Note 25	Provisions for liabilities
Note 26	Contingent assets and liabilities
Note 27	Financial risks
Note 28	Non-current operating items, etc.
Note 29	Change in operating capital
Note 30	Related parties
Note 31	Subsequent events
Note 32	Accounting policies

Notes

Note 1 - Accounting policies, accounting estimates and risks, etc.

Note 1.1. – Basis of preparation

a. Accounting policies

The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied to all years presented, unless otherwise stated. Refer to note 33 for a full description of the accounting policies used.

The company presents its annual report in compliance with reporting class D.

b. Changes to accounting policies

Accounting policies are unchanged from the previous year.

Note 1.2. – Investment properties

A property that is held for long-term rental yields or for capital appreciation or both, and that is not occupied by the companies in the consolidated Group, is classified as investment property. An investment property is measured initially at its cost, including related transaction costs and where applicable borrowing costs. After initial recognition, an investment property is carried at fair value.

Fair value is based on active market prices, adjusted, if necessary, for differences in the nature, location or condition of the specific asset. If this information is not available, the Group uses alternative valuation methods, such as recent prices on less active markets or discounted cash flow projections. The fair value of an investment property reflects, among other things, rental income from current leases and other assumptions market participants would make when pricing the property under current market conditions. Subsequent expenditure is capitalised to the asset's carrying amount only when it is probable that future economic benefits associated with the expenditure will flow to the Group and the cost of the item can be measured reliably. All other repairs and maintenance costs are expensed when incurred. When part of an investment property is replaced, the carrying amount of the replaced part is derecognised.

Changes in fair values are recognised in the income statement. Investment properties are derecognised when they have been disposed. Where the Group disposes of a property at fair value in an arm's length transaction, the carrying value immediately prior to the sale is adjusted to the transaction price, and the adjustment is recorded in the income statement within net gain from fair value adjustment on investment property.

The principles and methods for determining the estimated fair value of the properties in this category is based on the capitalisation method. The determination of fair values in accordance to the capitalisation method is generally the most accepted and widely used model for valuating property. The method is based on a stabilised net rent, capitalised at a rate of return assuming a stabilised property in a stable market, which is fully let at an annual market rent at, or close to, market level. For non-stabilised properties, special conditions such as vacancy and refurbishment costs are taken into consideration.

The Market Valuation of the properties could vary from year to year based on changes i the market yield and market rent, but also could be impacted when the properties or units are either significantly changed in quality (upgraded or otherwise) or from change of usage, which in itself would change the applicable market rents. Furthermore reduction or change in vacancy can impact in valuations, based on the real rent achieved from leases compared to assumed market rents, and the actual capex compared to the refurbishment capex assumed in previous valuations. On a overall portfolio basis the average market yield could vary from year to year based on yields of the properties sold or acquired during the year.

The model used contains the following main elements:

1	+ Annual Rental Income (fully rented)
2	- Non-recoverable operating costs
3	= Net Operating Income (NOI)
4	- Cap rate (net initial yield)
5	= Market value before regulations and deposits
6	- Vacancy costs
7	- Refurbishment cost
8	- Rental loss (discounts, etc.)
9	+ Net Present Value (NPV) of Overrented elements
10	- Net Present Value (NPV) of Underrrented elements
11	+ Cash deposits
12	+ Other
13	= Market value after regulations and deposits (Fair Value)

Ad. 1) The annual rental income represents the budget rent. For non-vacant units, the budget rent equals the actual rental income. If the actual rental income differs significantly, the market rent is used. For vacant areas, the market rent is used.

Ad. 2) All operating expenses not recoverable from the tenants are deducted. This includes taxes, insurance, cleaning, utility costs, service subscriptions, administration, external maintenance etc.

Ad. 4) The yield requirement is determined individually for each property based on the yield requirement for comparable properties in the same geographical area (where this is possible) and the property's risk profile.

Ad. 6) Vacancy costs reflect the estimated loss of rental income until a re-letting is assumed. There is vacancy until the stablised level is reached. When the stabilised level is reached all properties are assumed fully let.

Ad. 7) For vacant units, it is assumed that a refurbishment is required before a re-letting can take place. At some properties, these are not included as the leases already are ready for reletting.

Ad. 8) Current discounts are deducted from the market value.

Ad. 9) If an overrented lease is regulated to market rent, it is implemented over a 4-year period according to section 13 in the Danish Commercial Rent. As a result, the lease will generate an overrenting element in this period.

Ad. 10) If an underrented lease is regulated to market rent, it is implemented over a 4-year period according to section 13 in the Danish Commercial Rent. As a result, the lease will generate an underrenting element in this period.

The calculation of the properties' fair value is sensitive to changes in all the above inputs to the valuation model. The most significant non-observable inputs used in calculating the current value of the completed investment properties are as follows:

• i. Market Rent per square meter (sqm.) per year
• ii. Vacancy
• iii. Yield

.

A general increase in market rent per sqm and decrease of the vacancy in the areas in which Park Street's properties are located, will likely decrease the yield requirements.

i. Market Rent per sqm per year

Market rent per sqm per year represents an important input for calculating the fair value of the property. If it is estimated that the current rent is lower or higher than the rent that can be obtained by re-hire, a correction of the current rent will be made to the expected rent on re-hire. This input is based on an estimate. Similarly, input on market rent for empty areas is based on an estimate. The long-term average market rent (ie at terminal level) is the following divided by property types:

Avg. gross rent per sqm p.a. (DKK)	2022	2021
Retail	1,058	1,184
Office	1,110	969
Residential	2,059	2,256
Storage	412	405
Other	988	924
Total	1,136	907

The estimated fair value is sensitive to changes in the estimated budget rent. The sensitivity of changes in the average budget rent per sqm are illustrated in the table below, which shows the effect on the fair value of the properties if only the average budget rent per change is changed sqm per year.

Change in market rent per sqm per year (DKK)		Change in market value (Million DKK)
	2022	2021
200	637	592
100	319	296
50	159	148
-50	-159	-148
-100	-319	-296
-200	-637	-592

The table shows that an increase in the market price of, for example 50 DKK per sqm per year will increase the completed investment properties' fair value by DKK 159 million (31 December 2021: DKK 148 million).

ii. Vacancy

No structural vacancy has been considered in the property valuation; as it has been estimated that the current vacancy will be let within 6 to 12 months. An increase in the current vacancy has been estimated and represents the following (broken down by property types and calculated as estimated vacancy divided by the market rent in the terminal):

Change in Vacancy (%-point)		Change in market value (Million DKK)
	2022	2021
10%	-6	-4
5%	-3	-2
-2%	1	1
-5%	3	2

The table shows that an increase in the vacancy by 5 percentage points will reduce the finished investment property with the fair value of DKK -3 Million (31 December 2021: DKK -2 million).

iii. Yield

The fixed return requirement is an essential input in estimating fair values. The table below shows the ranges for the return requirement divided by property type and the weighted return requirement in- for each property type.

Percentage p.a.	2022		2021
	Interval	Weighted Avg	Interval	Weighted Avg
Retail	4.85 – 9.00	6.95	5.92 – 8.75	7.64
Office	5.25 – 11.68	6.97	5.27 – 7.50	6.60
Storage	9.00 – 9.50	9.25	8.50 – 9.50	9.00
Residential	4.00 – 7.58	5.60	3.85 – 6.49	4.68
Others	6.50 – 6.50	6.50	5.50 – 6.50	5.92
Total	4.00 – 11.68	6.80	3.85 - 9.50	6.20

The table shows that the return requirements for completed investment properties at December 31, 2022 is in the range 4.00% - 11.68% per annum. The corresponding interval at December 31, 2021 amounted to 3.85% - 9.50% per annum.

The weighted yield requirement in the table are calculated as each property yield requirements weighted by the property's fair value in relation to property type's / portfolio's fair value and amounts at December 31, 2022 6.80% per annum for the overall portfolio of finished investment properties at December 31, 2021, the corresponding weighted return requirements for the entire portfolio 6.20% per annum.

The yield requirements used have a significant impact on the fair value of the property. The sensitivity of changes in the return requirement is
illustrated in the table below which shows the effect on the fair value of the properties if only the average return rate is changed.

Change in return requirements (% points)	Change in market value (Million DKK)
	2022	2021
1.00%	-482	-330
0.75%	-376	-256
0.50%	-261	-177
0.25%	-136	-92
-0.25%	149	99
-0.50%	313	207
-0.75%	495	325
-1.00%	698	455

The table shows that an increase in the rate of return of 0.25 percentage point would reduce the completed investment property fair value DKK - 136 million (31 December 2021: DKK -92 million).

The breakdown by activity based the property value is split as follows:

Amount in Million DKK	2022		2021
Residential	455	19%	515	20%
Residential Project	511	20%	470	18%
Office	827	33%	842	32%
Retail	581	23%	692	26%
Hotel	99	4%	92	3%
Storage	24	1%	26	1%
Total	2,497		2,636

Determining the fair value of Domicile properties

From 2015 domicile properties have been evaluated at the amount equivalent to the fair value at the date of revaluation less depreciation, see mention in the note 33. Park Street possesses at 31 December 2022 the following two domiciles:

• Svanevej 12, Copenhagen NV (Park Street's headquarters in Copenhagen Nordvest neighborhood).
• Marbækvej 6, Ballerup (Hotel in Ballerup).

When calculating the fair value of the above two domicile properties, principles and calculation methods are applied which are used to estimate the property's fair values.

Due to different characteristics, different principles and calculation methods are used for each of the two domicile properties.The fair value of both owner-occupied properties is based on significant estimates.

Changes in fair values are recognised in other comprehensive income statement. Domicile properties are derecognised when they have been disposed or transferred into investment property.

The estimation of the properties' fair value as of December 31, 2022 resulted in a revaluation of the properties' book value by DKK 11 million (31 December 2021: DKK -0.5 million), which is included under "Fair value adjustment of domicile properties" in other comprehensive income.

i. Park Street domicile in Copenhagen

Park Street's headquarters at Svanevej 12 in Copenhagen Nordvest neighbourhood is an office building that is partially used as domicile for Park Street and partly for rental. The property is characterized by generating a current return on rent, similar to the Group's investment properties (see description above except that the property is also used as domicile for Park Street). Principles and methods for determining the property's fair value is the same as the applied to Investment properties described above.

Property estimated market rent and determining the required return on owner-occupied property is based on inputs from an independent valuer.

The estimate of the property's fair value, similar to the Group's completed investment properties, is sensitive to changes in input in the valuation model. The most significant non-observable input used for estimating the fair value of the domicile property is as follows:

Domicile Office	2022	2021
Market rent per sqm. per year (DKK)	1,150	1,200
Vacancy (%)	0	0
Return requirement (% p.a.)	5.50	5.26

The sensitivity to changes in the above non-observable input can be illustrated as follows (assuming the listed events occur one by one):

• An increase or decrease in the market price of DKK 50 per sqm per year will result in a change of the property's fair value, respectively DKK +3.7 million. (31 December 2021: DKK +3.8 million) and DKK -3.7 million (31 December 2021: DKK -3.7 million).
• An increase or a reduction of the required yield of 0.50% point will entail a change of the property's current value, respectively DKK -7.7 million (31 December 2021: DKK -7.9 million) and DKK +9.3 million (31 December 2021: DKK +9.5 million).

A general increase in market rent per sqm and decrease in vacancy in the district, where the property is located, will likely cause a drop in the yield requirement.

ii. Hotel in Ballerup

Park Street hotel on Marbækvej 6 in Ballerup is a property where Park Street via a management agreement operates the hotel. This property is thus characterized by generating a current return operation from the property. In order to calculate the property's fair value separated from the hotel operations, the measurement of the property's fair value based on an estimate of market rent that could be obtained on a normal lease. The estimate of market rent is calculated as a fixed percentage of the revenue of the hotel.

The estimate of the hotel's expected revenue is based on budgeted stabilized revenue discounting a ramp up cost that equals the difference between 2021 actual revenue and the stabilized budget revenue.

Property estimated market rent and determining the required return on owner-occupied property is based on inputs from an independent valuer.

The estimate of the property's fair value, similar to the Group's completed investment properties, is sensitive to changes in input in the valuation model. The most significant non-observable input used for estimating the fair value of the domicile property is as follows:

Domicile Hotel	2022	2021
Market Rent - % of Revenue	38	35
Return requirement (% p.a.)	7.5	6.5

The sensitivity to changes in the above non-observable input can be illustrated as follows (assuming the listed events occur one by one):

▪ An increase or a reduction of the required yield of 0.50% point will entail a change of the property's current value, respectively DKK -7.9 million (31 December 2021: DKK -4.0 million) and DKK +9.0 million (31 December 2021: DKK +5.0 million).

Classification of properties

Park Street classifies the properties in the following categories:

• Domicile (Owner-occupied properties)
• Investment Properties

Reference is made to note 33 in accounting policies for a more detailed description of how the properties are included in the above-mentioned classifications.

Classification of properties takes place on the basis of Park Street's intentions with each land or property at the time of acquisition. If the future purpose for some reason is not finalized at the time of acquisition, the foundation is classified as an investment property.

In some cases, services may be provided to tenants, etc. that constitute significant benefits. Park Street owns and operates a hotel where services to guests form a significant part of the total product. The property is therefore classified as a residential property.

Reclassification of properties between the above categories is made when the application is changed and a number of criteria are met. Notes to the individual financial statements indicate whether changes have been made to the classification regarding properties owned by Park Street.

Disclosure of deffered taxes

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled, based on tax rates/laws that have been enacted or substantively enacted by the end of the reporting period.

Tax assets arising from unused tax losses, are valued based on existing budgets and profit forecasts for a 3-year period. Tax is recognized for an unused tax loss carryforward or unused tax loss carryforward when it is considered probable that there will be sufficient future taxable profit against which the loss or credit carryforward can be utilised.

At December 31, 2022 the Group has included unused tax losses of DKK 137 million (31 December 2021: DKK 148 million) all of which is estimated to be realized within a three-year period or against deferred tax liabilities. The reduction in unutilized losses in 2022 and 2021 is due to positive tax income.

Disclosure of borrowings

As stated on Note 25 the value of the Group's mortgage debt and bank debt is classified as amortized cost.

As stated in Note 25 Group's non-convertible bonds are recognized as liabilities towards credit institution and are recognized as at fair value based on data that is non-observable in the market.

Note 2 – Segment information

Park Street's property portfolio is managed under a single management makes no segmentation of the portfolio. Information on the Group's revenue to external customers is disclosed in note 3 below.

The Group has no customers / tenants who make up more than 10% of the group's rental income. The group only has activities in Denmark.

Note 3 - Net sales

Amounts in DKK 1000s	2022	2021
Rental income	136,348	139,087
Of which rental income from:
Investment properties	111,415	124,328
Domicile properties	24,933	14,579
Sales of other services	16,478	18,958
Total sales of services	152,826	157,369
Interest income, mortgages and instruments of debt	455	895
	153,281	158,264

Note 4 - Operating expenses

Amounts in DKK 1000s	2022	2021
Operating expenses, investment properties	41,630	35,678
Operating expenses, other services	6,976	5,168
	48,606	40,846

(*) Of the operating expenses for investment properties, DKK 848000 relate to operating expenses for vacant units

Note 5 – Employee benefits expenses

Average number of employees	27	26
	17,231	17,808
Other staff costs	416	445
Other social security costs	59	59
Contribution-based pensions (*)	716	862
Salary	16,040	16,442
Amounts in DKK 1000s	2022	2021

(*) The Group has only defined contribution plans. For defined contribution plans, the employer undertakes to pay a defined contribution to a pension fund, but has no risk with regard to future developments in interest rates, inflation, mortality, disability, etc. as regards the amount to be paid to the employee.

Salary Contribution-based pensions	2,760 0	2,760 0
Bonus	0	0
	2,760	2,760

Disclosure of share-based payment arrangements (**):

Amounts in DKK 1000s	2022	2021
Board members
Pradeep Pattem (CEO)	100	100
Andrew LaTrobe (Member of the Audit Committee) (*Jan-Apr 2022)	50	150
Ohene Kwapong (Chairman of the Audit Committee)	175	175
Lars-Andreas Nilsen (Member of the Audit Committee) (**Jan-Apr 2021)	0	150
Anita Nassar (Chairman of the Board)	250	250
Claes Peter Rading (Member of the Audit Committee) (May-Dec 2021, Jan-Dec 2022)	150	50
	725	875

Note 6 – Auditor's fees

The auditor appointed in 2022 and 2021 is PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab. Their fees can be specified as follows:

Amounts in DKK 1000s	2022	2021
Statutory audit	897	533
Other assurance services	0	38
Tax and VAT advice	334	264
Other services	0	0
	1,231	835

Fees for non-audit services delivered by PricewaterhouseCoopers, Statsautoriseret Revisionspartnerselskab, include issuing assurance statement on opening balance in subsidiary and general accounting and tax advisory services.

Note 7 – Depreciation, amortisation and impairment

Amounts in DKK 1000s	2022	2021
Depreciation, software	1,464	1,807
Depreciation, domicile properties	1,790	1,795
Depreciation, inventory and fixed assets	424	728
	3,678	4,330

Note 8 – Financial expenses

Amounts in DKK 1000s	2022	2021
Interest expenses, liabilities to credit institutions measured at amortized cost	28,388	23,968
Other interest costs and fees	852	645
Borrowing costs	691	1,268
	29,932	25,881

Note 9 – Adjustments to fair value, net

Amounts in DKK 1000s	2022	2021
Fair value adjustment, investment properties	36,066	128,887
	36,066	128,887

Note 10 – Gains realised on the sale of investment properties

Amounts in DKK 1000s	2022	2021
Sales, investment properties	110,772	6,500
The property's carrying amount on sale etc.	-115,238	-5,028
	-4,466	1,472

Note 11 – Tax on profit for the year and other comprehensive income

Amounts in DKK 1000s	2022	2021
Annual tax can be divided as follows:
Current tax on profit of the year	0	1,128
Current tax, previous years	0	59
Current tax on domicile	2,420	0
Changes in deferred tax liabilities	19,518	40,119
	21,928	41,306

Effective tax rate	29.45%	22.06%
	21,938	41,306
Adjustment of previous years taxes	5,548	73
Non-taxable income	0	0
Non-deductible costs	0	44
Estimated tax at a tax rate of 22%	16,390	41,189
Tax on profit for the year can be explained as follows:
Amounts in DKK 1000s	2022	2021

Note 12 – Earnings per share

Amounts in DKK 1000s	2022	2021
Profit for the period	61,904	145,491
Parent company shareholders' share of profit for the year, used to calculate earnings per share	61,904	145,491
Average number of shares	57,175,572	67,513,732
Average number of own shares	-2,428,031	-1,037,804
Average number of shares in circulation	54,747,541	66,475,928
Convertible bond's average dilution effect	0	0
Diluted average number of shares in circulation	54,747,541	66,475,928
Number of shares, end period	57,175,572	67,513,732
Number of own shares, end period	-2,428,031	-1,037,804
Number of shares in circulation, end period	54,747,541	66,475,928
Convertible bond's dilution effect, end of period	0	0
Diluted average number of shares in circulation	54,747,541	66,475,928
Earnings per share (average number of shares) (DKK)	1.13	2.19
Diluted results per. share (average number of shares) (DKK)	1.13	2.19
Earnings per share (DKK), end period	1.13	2.19
Diluted results per share (DKK), end period	1.13	2.19

Note 13 – Intangible assets

Amounts in DKK 1000s	2022	2021
Cost at 1 of January	5,421	5,421
Additions during the year	670
Cost at 31 December	6,091	5,421
Amortization at 1 January	-3,556	-1,749
Amortization during the year	-1,464	-1,807
Amortization at 31 December	-5,020	-3,556
Balance at 31 December	1,071	1,865

Note 14 – Domiciles

Amounts in DKK 1000s	2022	2021
Cost at 1 of January	208,186	208689
Revaluation of value	11,252	-503
Cost / Revaluated Value at 31 December	219,438	208,186
Depreciation and amortization at 1 January	-14,186	-12,391
Revaluation of the domicile	0	0
Depreciation	-1,790	-1,795
Depreciation and amortization at 31 December	-15,976	-14,186
Balance at 31 December	203,462	194,000

Domicile properties consist of a hotel in Ballerup and Park Street's headquarters in Copenhagen.

Disclosure of fair value measurement

As the property is presented as a domicile, depreciation is required in accordance with IAS 16. Assets are revaluated equal to fair value at the date of revaluation less accumulated depreciation and subsequent impairment losses. There have been revaluations both as of December 31, 2022 and December 31, 2021.

Domicile properties are pledged as security for loans, mortgage loans and other credit institutions as stated in Note 18. Information on fair value hierarchy of Domicile property is as follows:

Amounts in DKK 1000s	Level 1	Level 2	Level 3	Total
At 31 December 2022:
Domicile property	0	0	203,462	203,462
	0	0	203,462	203,462
At 31 December 2021:
Domicile property	0	0	194,000	194,000
	0	0	194,000	194,000

Classification of domicile properties in level 3 means that determining the fair value of domicile properties mainly based on data that are not observable in the market.

During the 2022 and 2021 there have been no transfers between levels of the fair value hierarchy.

The fair value of domicile properties is based on estimates. Refer to note 1 for additional details. No domiciles have been acquired in 2022 and 2021.

If Park Street domiciles were measured at the historical cost less accumulated depreciation, the book value would have been the following:

Amounts in DKK 1000s	2022	2021
Domicile properties	114,043	115,833
	114,043	115,833

Note 15 – Investment properties

As of 31 December 2022 there are no ongoing sales processes regarding investment properties.

Amounts in DKK 1000s	2022	2021
Balance at 1 of January	2,615,814	2,462,633
Costs incurred for improvements	98,638	25,803
Adjustment to fair value, net	36,066	128,887
Depreciation of fixed assets	0	3,519
Retirement on sale	-228,938	-5,028
Balance at 31 December	2,521,580	2,615,814

Disclosure of fair value measurement

Fair value hierarchy for investment:

Amounts in DKK 1000s	Level 1	Level 2	Level 3	Total
At 31 December 2022:
Investment properties	0	0	2,521,581	2,521,581
	0	0	2,521,581	2,521,581
At 31 December 2021:
Investment properties	0	0	2,615,814	2,615,814
	0	0	2,615,814	2,615,814

Classification of investment properties in level 3 means that determining the fair value of investment properties is mainly based on data that is not observable in the market.

During 2022 and 2021 there has been no transfers between levels of the fair value hierarchy.

The fair value of investment properties is based on estimates. Refer to note 1 for additional details.

Total fair value adjustments on investment properties in the financial year are:

Amounts in DKK 1000s	2022	2021
Investment properties	36,066	128,887
	36,066	128,887

Total fair value adjustments amounts to DKK 36.1 million (2021: DKK 128.9 million) for the properties owned by the Company as of December 31, 2022. These value adjustments are recognized in the income statement as "Adjustments to fair value, net". Investment properties are pledged as security for debt to mortgage banks and other credit institutions as indicated in Note 27.

The Group does not have any agreement which required the Group to build or redevelop any properties neither in 2022 or 2021.

The net income of the investment portfolio is as follows:

Amounts in DKK 1000s	2022	2021
Rental income from investment properties	111,415	119,609
Operating expenses, investment properties	-40,609	-34,679
Net income from investment properties	70,806	84,930

Note 16 – Machinery and equipment

Amounts in DKK 1000s	IT Equipment	Appliances	Total Machinery and Equipment
Cost at 1 of January 2022	3,568	4,285	7,853
Additions during the year	0	248	248
Disposals during the year	0	0	0
Cost at 31 December 2022	3,568	4,534	8,102
Amortization at 1 January 2022	-3,524	-3,839	-7,363
Amortization during the year	-10	-222	-231
Amortization at 31 December 2022	-3,534	-4,061	-7,594
Balance at 31 December 2022	34	473	507
Cost at 1 of January 2021	4,247	8,484	12,731
Additions during the year	0	0	0
Disposals during the year	-679	-4,199
Cost at 31 December 2021	3,568	4,285	7,853
Amortization at 1 January 2021	-4,187	-7,752	-11,939
Amortization during the year	663	3,913	4,576
Amortization at 31 December 2021	-3,524	-3,839	-7,363
		0
Balance at 31 December 2021	44	446	490

Note 17 – Investment in associates

The company acquired 150,000 units of common membership interest in the entity Enterra Solution, LLC (Address: One Palmer Square, Suite 530, Prince-ton, NJ 08542) in August 2019 as part of the strategy to develop a Real Estate Platform with Technology. This company is developing an advanced AI (Artificial Intelligence) based system that allows organizations to capture, curate and analyse data which will help the Company to increase efficiency in the operations and simplify the processes.

Amounts in DKK 1000s	2022	2021
Cost price at January 1	2,029	2,029
Cost price at December 31	2,029	2,029
Carrying amount at December 31	2,029	2,029

Note 18 – Current financial assets at amortised cost

The Group has the following mortgage and debt instruments classified as "Financial assets measured at amortized cost":

Financial assets at amortized cost at 31 December	7,412	7,671
Repayment of the year	-259	-329
Financial assets at amortized cost at 1 January	7,671	8,000
Amounts in DKK 1000s	2022	2021

		Effective interest rate p.a.		Balance in DKK 1000		Fair value in DKK 1000
Amounts in DKK 1000s		2022	2021	2022	2021	2022	2021
Value	Expire
DKK	2025	7.50%	7.5%	7,412	7,671	7,412	7,671
				7,412	7,671	7,412	7,671

Mortgages and debt securities classified as financial instruments in the category "Financial assets at amortized cost" expire in the following periods:

The calculated fair value is based on estimates (Level 2 in fair value hierarchy).

Note 19 – Trade and other current receivables

Amounts in DKK 1000s	2022	2021
Receivable Rental Income	6,313	4,318
Deposited funds in banks	24,821	15,589
Other Receivables	-2,541	4,066
Receivables at 31 December	28,594	23,973

Write-downs on receivable rental income have been made after an individual assessment and have developed as follows:

Bad debt provision as of 1st of January	2,788	1,862
Net additional provisions	69	922
Recognized losses (Write off)	2,104	4
	4,961	2,788

In the above tenant rental income, receivables have been recognized which were overdue as at 31 December but have not been written down, with the following amounts:

	2022	2021
Up to 30 days	121	117
Between 30 and 90 days	2,172	1,647
Over 90 days	5,583	5,224
	7,876	6,988

Trade receivables are predominantly non-interest bearing. Apart from rental income receivable, Park Street has no receivables that are overdue at the balance sheet date or which have been assessed as impaired.

Funds deposited in banks relate to receivables selling price from properties sold, funds deposited as collateral for mortgage loans and deposits as security for the initiated maintenance work on properties.

Note 20 – Cash and cash equivalents

Amounts in DKK 1000s	2022	2021
Petty cash	64	64
Deposits in banks for free disposal	34,468	167,756
	34,532	167,820

Note 21 – Share capital

Amounts in DKK 1000s	2022	2021
Share capital as on 1st of January	67,513	67,513
Share capital Decrease	-10,338	0
Share capital as on 31. December	57,175	67,513

The share capital consists of 57,175,572 shares of DKK 1 (31 December 2021: 67,513,372 shares of DKK 1). No shares have special rights. The shares are fully paid.

Park Street Asset Management Ltd. and Park Street NordAc Sarl own 100% of the nominal class B share capital and 55.89% of the nominal class A share capital and a total of 93.06% (and a corresponding percentage of the votes) of the total nominal share capital of the Company.

Note 22 – Treasury shares

	Number of shares		Nominal value (Amount in DKK 1000)		Share of share capital
	2022	2021	2022	2021	2022	2021
As at 1 January	1,037,804	1,037,804	1,037	1037	0.2%	0.2%
Additions during the year	2,428,031	0	2,428	0	1.3%	1.3%
As at 31 December	3,465,835	1,037,804	3,465	1,037	1.5%	1.5%

The share buy-back programme announced has now been concluded. In the period 14 September 2022 to 28 December 2022, Park Street A/S has bought 2,428,031 shares (263,166 Class A shares and 2,164,865 Class B shares) for an average price of DKK 13.97.

All own shares are owned by Park Street A/S.

As indicated on the company announcement published on 25 February 2022, Park Street A/S had initiated a share buyback program for up to DKK 250m of Class A and Class B shares, to be executed during the period from 25th February 2022 to 30th June 2022. The buyback program was launched in accordance with the authorization granted to the board of directors as stated on the point 3.7 of the Articles of Associated and approved by the shareholders at the Annual General Meeting on 22nd April 2021. The board of directors is authorized in the period until 21st April 2026 to allow the Company to acquire Class A and Class B treasury shares corresponding to a total of 35% of the Company's Class A and 35% of Class B share capital.

On 14th September 2022, Park Street A/S announced a share buy-back programme, as described in Company Announcement dated 14-09-2022. The programme is carried out in compliance with the provisions of Regulation No 596/2014 of the European Parliament and of the Council on market abuse (the Market Abuse Regulation – MAR) and delegated legislation under MAR; except for the limitation of implementing the authorized buy-back of the Company's shares within the 25% daily trading volume, due to the low levels of market liquidity in the Company's shares. According to the programme, Park Street A/S will repurchase Class A and Class B shares for up to DKK 50 million.

Note 23 – Deferred Taxes

Amounts in DKK 1000s	2022	2021
Deferred tax liabilities at 1st of January	232,087	191,733
Recognized in other comprehensive income	2,420	-111
Correction from previous years	0	0
Recognized in the income statement	19,518	40,465
Deferred tax liabilities at 31 December	254,025	232,087
Deferred tax is recognized in the balance sheet as follows:
Deferred tax (active)
Deferred tax (liability)	-254,025	-232,087
Deferred tax at 31 December	-254,025	-232,087

Deferred tax recognized in the balance

The calculation of deferred taxes included DKK 32.6 million relating to tax losses carried forward from Group companies. Based on budget accounting and tax profits in the period 2023-2026 and deferred tax liabilities, it is estimated that all tax losses (tax base) will be realized, which is included in the calculation of deferred tax DKK 254 million (taxable value) per 31 December 2022 (2021: DKK 232.1 million)

Deferred tax assets (value calculated at a tax rate of 22%) recognized in the balance sheet relate to profit and losses from the subsidiaries Pulse Taastrup P/S, Pulse Glostrup P/S, Pulse N P/S, Pulse O P/S, Ballerup Hotel P/S, Svanevej P/S, Toldbuen P/S, PS Holdco I P/S, Phoam Studio ApS, PSN ApS, Pulse Living ApS, Albuen ApS, PS I ApS, and Park Street UK.

		Recognized
		in the income	Recognized
		statement (Open	in another
		ing Balance ad	comprehensive in
Amounts in DKK 1000s	Balance 1/1	justment)	come	Balance 31/12
2022
Software	410	-312	0	98
Investment and residential properties	266,087	15,692	2,420	284,199
Fixtures and fittings	-413	25	0	-388
Project Holdings	0	0	0	0
Receivables	-612	0	0	-612
Provisions	0	-88	0	-88
Credit institutions	-779	1,910	0	1,131
Tax losses carryforward	-32,606	2,291	0	-30,315
	232,087	19,518	2,420	254,025
2021
Software	807	-397	0	410
Investment and residential properties	228,140	38,058	-111	266,087
Fixtures and fittings	-523	110	0	-413
Project Holdings	0	0	0	0
Receivables	-409	-203	0	-612
Provisions	-88	88	0	0
Credit institutions	204	-983	0	-779
Tax losses carryforward	-36,398	3,792	0	-32,606
	191,733	40,465	-111	232,087

Note 24 – Borrowings

Amounts in DKK 1000s	2022	2021
Borrowings, nominal	1,408,514	1,515,581
Market value adjustments	-5,579	-6,110
	1,402,935	1,509,471
The liabilities are thus included in the balance sheet:
Borrowings, long-term	1,382,643	1,488,364
Borrowings, short-term	20,293	21,107
	1,402,935	1,509,471

The Group's loans and credits are distributed as per 31 December as follows:

Liabilities recognized at fair value	Currency	Rate type	Expiry date	2022	2021
Convertible bonds	DKK	Interest-free	11-15 years	11,335	11,335
				11,335	11,335
Market value adjustments				-5,579	-6,110
Carrying amount				5,757	5,226

Liabilities recognized at amortized cost	Currency	Rate type	Expiry date	2022	2021
Banks Debt	DKK	Fixed	0-1 years	0	0
Banks Debt	DKK	Fixed	2-5 years	575,630	503,615
Mortgage Debt	DKK	Variable	2-5 Years	64,604	43,402
Mortgage Debt	DKK	Variable	6-10 years	0	35,987
Mortgage Debt	DKK	Variable	11-15 years	667,824	593,362
Mortgage Debt	DKK	Variable	16-20 years	109,780	342,380
Carrying amount				1,417,838	1,518,747

The nominal amounts stated in the tables represent the amount that Park Street will repay under the loan agreements by the end of these agreements. The interest component is not included in the table above.

Fixed interest loans stated in the tables indicate that a fixed rate applies until the loans' maturity date or until a new negotiation is made with the individual bank. Variable interest rates expressed in the tables indicate that the loans have interest rates that are regularly adjusted over the term of the loans due to fluctuations in market interest rates.

The evolution of the long and short term liabilities with credit institutions is specified follows:

Amounts in DKK 1000s	2022	2021
Non-current financial liabilities	1,488,364	1,354,054
Current financial liabilities	21,107	50,970
Financial liabilities with credit institutions at 1 January	1,509,471	1,405,024
Repayment of liabilities to credit institutions	-174,530	-398,859
Proceeds from assumption of liabilities to credit institutions	67,994	503,306
Financial liabilities with credit institutions at 31 December	1,402,935	1,509,471
Non-current financial liabilities	1,382,643	1,488,364
Current financial liabilities	20,293	21,107
Total financial liabilities with credit institutions at 31 December	1,402,935	1,509,471

Determining the fair value of debt to credit institutions

Information on Group's financial loan agreements, mortgage debt and convertible bonds is disclosed in note 25. Information on estimates and judgments related to the determination of fair value of financial liabilities is disclosed in note 1. As stated in these notes mortgage and bank debt have been recognized at amortised cost in 2022 and 2021.

Zero-coupon bonds (former Convertible bonds)

As a result of a prior bank agreement, Park Street issued in 2010 convertible bonds for a number of credit institutions for a total nominal DKK 69.0 million. The bonds are non-callable by credit institutions until 31 December 2029 and non-amortized. Conversion period for the bonds to shares has expired, and as a result, the bonds in the annual report classified as normal loans from credit institutions and is therefore included under "Credit institutions" in the balance sheet (zero-coupon bonds). The convertible bonds are recorded as subordinated loan capital and are subordinate to all other unsubordinated debt. The movement of the nominal value of these zero-coupon bonds is as follows:

Amounts in DKK 1000s	2022	2021
Zero-coupon bonds at 1 January (Nominal value)	11,335	11,335
Bonds converted into class B shares (Nominal value)	0	0
Zero-coupon bonds at 31 December (Nominal Value)	11,335	11,335

The fair value estimated by an independent reviewer (Level 3 of the fair value hierarchy) at December 31 2022 corresponds to a rate of 50.79 (31 December 2021 – 46.10). The carrying value of zero-coupon bonds in the statement of financial position is shown in the following table:

Amounts in DKK 1000s	2022	2021
Fair value of financial liability at the date of issue	5,226	3,548
Amortization of convertible bonds at 31 December	0	0
Fair Value adjustment recognized in the Profit and Loss	531	1,678
Fair Value adjustment of convertible bonds converted in Equity	0	0
Balance at 31 December	5,757	5,226

As stated in note 24 Group's non-convertible bonds are recognized as liabilities towards credit institution and are recognized as at fair value based on data that is non-observable in the market.

Note 25 – Provisions

Amounts in DKK 1000s	2022	2021
Provisions at 1 January	400	400
Used in the year	0	0
Reversed during the year	0	0
Accrued in the year	0	0
Provisions 31 December	400	400

Provisions relate to an obligation with the purchaser of a property concerning environmental clean-up on a land.

Note 26 – Contingent assets and liabilities

Disclosure of collateral

The nominal pledge for the bank debt and mortgage debt given by credit institutions per December 31, 2022 amounts a total of DKK 1,728 million (31 December 2021: DKK 1,728 million), the nominal value of the loans amounts a total of DKK 1,403 million (31 December 2021: DKK 1,509 million) in the group's investment properties and domiciles with a book value totalling DKK 2,736 million (31 December 2021: DKK 2,809 million).

The nominal pledge for the bank debt and mortgage debt given by credit institutions per December 31, 2022 amounts a total of DKK 7.4 million (31 December 2021: DKK 7.7 million), in the group's deposited mortgage deeds with a book value totalling DKK 7.4 million (31 December 2021: DKK 7.7 million).

Disclosure of contingent liabilities

Park Street had a legal dispute with a previous tenant in relation to the lease being deemed as a commercial or a residential lease. Park Street has lost the argument and now the lease is deemed to be residential. This could lead to some potential liability in relation to the dilapidations claim and other aspects. This will be clarified as the case proceeds further with the Housing Board.

No additional significant litigations and disputes are acknowledged by the Group at December 31, 2022 other than the ones indicated in Note 27.

Conditional debt relief and contingencies

In connection with the sale of a property in 2014, Park Street has been subject to a surcharge for the property if the purchaser on the site before 1 January 2024 obtains more building rights than assumed at the conclusion of the transaction. The additional price amounts to DKK 2,000 for each building rights. Additional building plans will require a change of the local plan for the area in which the property in question is located. Park Street is not aware of any plans to change the local plan in question, for this reason Park Street does not consider the potential additional price as a contingent asset.

Contingent assets

As part of the sales agreement of the property sold in 2018, Park Street and the buyer have agreed that Park Street is entitled to obtain an additional supplement of DKK 1 million if the buyer completer a development project of more than 5,000 square meters within 5 years from the date of acquisition; the Company has decided not to recognize the contingent asset in the balance as at December 31, 2022.

Disclosure of leases

There are leases hire for cars rental and printers.

Amounts in DKK 1000s	2022	2021
Within 1 year from the balance sheet date	10	1
Between 1 and 5 years from the balance sheet date	422	5
After 5 years from the balance sheet date	0	0
Lease hire obligations at 31 December	431	6
Minimum lease payments recognized in the profit and loss account for the year	31	130

Note 27 – Financial risks

Amounts in DKK 1000s	2022	2021
Mortgages and debentures	7,412	7,671
Financial assets measured at fair value through profit or loss	7,412	7,671
Receivables	28,594	23,973
Cash and equivalents	34,532	167,820
Loan and receivables	63,125	191,793
Credit institutions	-5,757	-5,226
Financial liabilities measured at fair value through profit or loss	-5,757	-5,226
Credit institutions	1,402,935	1,509,471
Deposits	37,916	38,530
Accounts payable	19,336	7,718
Other Debts	5,827	14,238
Financial liabilities measured at amortized cost	1,466,016	1,569,957

Risk management policy

The financial management of the Group is geared towards stabilization and optimization of the Group's operations, while at minimizing the Group's financial risk exposure. It is part of the Group's policy not to conduct speculative transactions by active use of financial instruments.

The group is due to its activities exposed to various financial risks, including liquidity risk, market risks (primarily interest rate risk) and credit risk.

Liquidity risk

Park Street's liquidity risk consists on not being able to make regular payments and not being able to provide sufficient liquidity to cover the financing costs, capital repayment obligations and capital investments. Lack of liquidity may arise from insufficient cash resources and may be adversely affected by missed payments from Park Street tenants, increased vacancy, repayment of deposits, divestments, unexpected costs and investment needs. Lack of liquidity may also arise from default of loans signed and in connection with refinancing when existing loan agreements expire or are terminated.

Cash reserves total at December 31, 2022 DKK 34.5 million (31 December 2021: DKK 167.8 million). Park Street forecasts that current and generated liquidity is sufficient to carry out the group's planned activities throughout 2023.

Maturity of financial liabilities is specified as follows:

Amounts in DKK 1000s	Carry forward balance	Contractual cash flows	0 - 1 Years	2 - 3 Years	4 - 5 Years	After 5 Years
2022
Non-derivative financial instruments
Credit institutions	1,402,935	1,685,331	82,476	697,124	96,146	809,585
Trade payables	18,336	18,336	0	0	0	0
Deposits	37,916	37,916	27,693	5,028	2,453	2,742
Other debts	5,310	5,310	0	0	0	0
Total	1,464,497	1,746,893	110,169	702,152	98,599	812,327
2021
Non-derivative financial instruments
Credit institutions	1,509,471	1,654,089	43,938	89,546	578,304	942,300
Trade payables	7,718	7,718	0	0	0	0
Deposits	38,530	38,530	33,367	3,802	186	1,175
Other debts	14,238	14,238	0	0	0	0
Total	1,569,957	1,714,575	77,305	93,348	578,490	943,475

Interest rate risk

Park Street is as a result of its financing activities in significant extent exposed to interest rate fluctuations. The interest rate risk is therefore an essential element in the overall assessment of the Group's financial situation.

The interest rate risk as of December 31, 2022 primarily relate to the following:

• Fluctuations in market interest rates on mortgages with variable rates (Cibor6, F2, F3, F5).
• Renegotiation of the margin rate applied on the mortgage loans.
• Renegotiation of fixed interest rate of bank debt associated with the extension of loans / terms. Fixed rate includes loans, which applies a fixed rate until the loans' maturity date, to other agreed point in time or until a renegotiation is made with the individual bank.

Park Street's major interest rate risk is the risk that the financial creditors on short notice increase terms of interest and margin rates. In this situation, the level of interest and contribution rates depend on negotiations with the financial institutions. The Group's loan portfolio is continuously monitored with a view to optimizing the group's exposure to interest rate risks. Park Street at December 31, 2022 does not have financial instruments for interest rate hedging, and the group has limited opportunities to influence the interest rate risk in the current financial situation.

Group's nominal financial debt is specified as follows, based on the type of interest rate that is linked to individual loans:

Type of loan		Nominal	* Weighted
		(DKK million)
At December 31, 2022:
Mortgage debt	Cibor3	0
Mortgage debt	Cibor6	104	4.91%
Mortgage debt	F2	43	2.64%
Mortgage debt	F3	232	0.86%
Mortgage debt	F5	463	0.98%
Bank debt etc.	Cibor3*	576	6.67%
Others	Interest free	0
		1,418	3.61%

* Rates have been hedged in January 2023, as detailed in Subsequent

Events
Type of loan		Nominal	* Weighted
		(DKK million)	interest rate (per an num)
At December 31, 2021:
Mortgage debt	Cibor3	0
Mortgage debt	Cibor6	139	2.06%
Mortgage debt	F2	46	2.48%
Mortgage debt	F3	324	0.59%
Mortgage debt	F5	505	1.06%
Bank debt etc.	Cibor3	504	0.84%
Others	Interest free	0	0.00%
		1,519	1.53%

(*) Weighted interest rate (pa) includes contributions to mortgage and expresses the average weighted interest rates in effect at the turn of the year and in the subsequent period until the next repricing date.

The calculated weighted interest rate for all Group loans at 31 December 2022 is 3.61% per annum, and is based on the latest confirmed interest rates. The corresponding calculated weighted rate at 31 December, 2021 was 1.53% per annum. This did not have a significant impact on the P&L for 2021.

Breakdown by maturity until the next date of interest rate adjustment distributes the Group's loans as follows (as of Dec. 31):

Amounts in DKK 1000s	2022	2021
Within six months	655	123
Between 6 and 12 months	65	121
Between 1 and 2 years	16	254
Between 2 and 5 years	682	1,006
After 5 years	0	5
	1,418	1,509

The interest rate adjustment date for fixed-rate and interest-free loans is included in the above table at the time of the renegotiation of the maturity and / or terms of the loans or where existing confirmations on a given interest rate expire for a period.

Interest rate risk from Park Street's view can be presented in the following two divisions:

• Variable market interest rates: Risks associated with fluctuations in market interest rates, i.e. on loans where interest rate adjustment takes place at defined times based on market fluctuations. This applies to mortgage loans with variable interest rates.
• Interest, etc. on all loans: Risks associated with fluctuations in interest rates on all loans. In addition to the above fluctuations in market rates, this includes the renegotiation of contribution rates at mortgage banks and renegotiation of loan terms with bank creditors.

The hypothetical effect on the results and equity after tax as a result of 1 percentage point increase in interest rates (ex. Fair value adjustments) is illustrated in the following table:

Amounts in DKK 1000s	2022	2021
Variable Interest rate loans:
Effect on income statement	-6.8	-10.2
Effect on equity	-6.8	-10.2

Regarding loans from credit institutions that have ongoing interest rate adjustments resulting from changes in market interest rates, the table above illustrates that the hypothetical effect on net income and equity as a result of one percentage point increase in interest rates amounts to DKK –6.8 million per annum (2021: DKK –10.2 million). The approach used to determine the effect has been carried out by increasing the base rate by 100 basis points of all the loans with floating rate exposure. This analysis includes F2, F3, F5 loans as well. The effect on the income statement has been calculated for a 12 month period.

Currency risk

The group exposure is very limited to changes in currency rates.

Credit risk

The Group's credit risk is primarily related to:

• Lease receivables
• Receivables from the sale of properties
• Receivables form mortgages

The maximum credit risk for financial assets is reflected in the accounting values of the balance sheet, and taking into account securities received.

Risks concerning to rental receivables are limited to Park Street's options to deduct payments from deposits and termination of the covered leases. Credit risk on receivables arising from the sale of properties is limited, as the transactions are always subject to payment of purchase price and deposit of the purchase price. With mortgage deeds, the Group has a usual debtor risk, which is reduced by mortgages on properties.

In order to minimize the risk of loss of receivable rent, the tenants' ability to pay prior to entering into leases is assessed to the extent that it is relevant. In addition, there is usually a requirement for a cash deposit, a guarantee and / or prepaid rent. However, if a tenant is unable to pay, it may result in loss as well as reduced income due to rental allowance upon relocation, lower future rental income and any additional costs incurred in connection with refurbishment etc.

Credit risk on receivables at December 31, 2022 is further described in note 19.

Group's Cash and cash equivalents consists primarily of deposits in reputable banks. The group believes that there is no significant credit risk associated with the cash. Deposits in banks are labelled at variable interest rate.

Financial liabilities with credit institutions and fair value

Group's mortgage debt and bank debt is classified as amortized cost. Fair value of loans measured at amortised cost amount to DKK 1,405 thousand. Fair value has been determined as the present value of the contractual cash flows discounted at a rate reflecting the current borrowing rate. Due to the fact that the terms of all loans were renegotiated in 2017, fair value of all floating rate loans is considered to be equal to their carrying amount. Based on a recent transaction, the fair value measurement is considered a level 2 measurement.

The fair value of zero-coupon debt is established based on the fair value estimated by an independent reviewer (estimated rate of 50.79 at December 31, 2022).

The Group's financial assets and liabilities measured at fair value are classified on the following 3 levels in the fair value hierarchy:

• Level 1: Based on listed prices (non-adjusted) on active markets for identical assets or liabilities.
• Level 2: Based on inputs other than listed prices that are observable for the asset or liability, either direct (as prices) or indirect (derived from prices).
• Level 3: Based on data that is not observable in the market.

Amounts in DKK 1000s	Carry forward balance	Level 1	Level 2	Level 3
2022
Mortgages and debentures	7,412	0	7,412	0
Total financial assets	7,412	0	7,412	0
Credit institutions	5,757	0	0	5,757
Total financial liabilities	5,757	0	0	5,757
2021
Mortgages and debentures	7,671	0	7,671	0
Total financial assets	7,671	0	7,671	0
Credit institutions	5,226	0	0	5,226
Total financial liabilities	5,226	0	0	5,226

It is the Group's policy to recognise transfers between the different levels from the time at which an event or change in circumstances entails a change in the classifications. No transfers were made between levels 1 and 2 in the accounting period.

When calculating the fair value of the Group's liabilities in accordance with level 3 of the fair value hierarchy, a correction is made for the Group's own credit rating, taking into account the legal status of the liabilities, and the security in the assets measured at fair value. Consequently, no direct assumptions of discount factors, etc. are included when measuring liabilities to credit institutions in accordance with level 3 of the fair value hierarchy. The table below shows the change in liabilities to credit institutions measured at fair value in the balance sheet based on valuation methods in which significant inputs are not based on observable market data (level 3):

Gain / loss in the income statement for liabilities held as at 31 December	531	1,678	0
Balance at 31st of December	5,757	5,226	3,548
Transfer from Level 3	0	0	0
Transfer to Level 3	0	0	0
Redemptions	0	0	0
Gains / losses in the income statement	531	1,678	0
Carrying amount at 1st of January	5,226	3,548	3,548
Amounts in DKK million	2022	2021	2020

Gains/losses concerning credit institutions measured at fair value are included in the item 'Adjustment to fair value, net' in the income statement. Liabilities to credit institutions measured at fair value are transferred to/from level 3 in the fair value hierarchy depending on whether the fair value of the loans contains a correction for the Group's own credit rating.

For financial instruments that are not measured at fair value, the book value is assessed as being a reasonable approximation of fair value. This is based on the trade price of the underlying bonds (Level 2).

Note 28 – Non-current operating items, etc.

Amounts in DKK 1000s	2022	2021
Depreciation and amortization	-3,678	-4,330
Profit/loss on sale of operating assets	-4,466	1,472
Total regulation	-8,144	-2,858

Note 29 – Change in operating capital

Amounts in DKK 1000s	2022	2021
Change in receivables	-4,620	-6,771
Change in provisons	0	0
Change in deposit	-614	6,029
Change in trade payables	11,618	3,730
Change in total working capital	6,384	2,988

Note 30 – Disclosure of related parties

Park Street Asset Management Ltd. (London, England) has controlling influence in Park Street A/S by virtue of its shareholding of 93.06% of shares and votes in Park Street A/S. See note 5, where the remuneration of Directors and Board of Park Street A/S appears. The Company additionally had the following transactions between Park Street and related parties that consisted of intangible assets.

Amounts in DKK 1000s	2022	2021
Other related parties
Intangible assets	446	0
Software expenses	1,338	2,234

There have been no other transactions, etc. with related parties during the period.

Note 31 – Subsequent Events

Subsequent events after 31 December 2022

In January 2023, we have hedged the interest rate exposure on the floating rate non-mortgage debt through purchase of interest rate caps. These caps are now in the positive value.

Mortgage loans due for interest rate fixing in April 2023 have now been fixed as F3 loans.

From the balance sheet date until the date of presentation of this Annual Report no additional events have occurred other than the abovementioned which significantly affect the assessment of the annual report.

Note 32 – Accounting policies

Statement of IFRS compliance

The annual report for the period January 1 to December 31, 2022 for Park Street A/S comprises the consolidated financial statements of Park Street A/S and its subsidiary companies and separate financial statements of the parent company. The annual report of Park Street A / S for the year 2022 is prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU and requirements according to the Danish Financial Statements Act. The annual report has been approved by the Board of Directors on 5 April 2023. The annual report shall be submitted to Park Street A / S shareholders for approval at the Annual General Meeting that will take place on 28 April 2023.

Disclosure of authorization of financial statements

The annual report is presented in Danish crown (DKK) rounded to the nearest DKK 1,000, which is considered to be the primary currency of the Group's activities and the functional currency of the parent company. The annual report is prepared on a historical cost basis, except for investment properties and certain financial obligations that are measured at fair value. Further, investment properties and domicile are measured at reassessed value. The accounting policies are otherwise as described below.

CHANGES IN ACCOUNTING POLICIES

Accounting policies are unchanged from the previous year.

DESCRIPTION OF CONSOLIDATED ACCOUNTING POLICIES

Consolidated Financial Statements

The consolidated financial statements include Park Street A / S (parent company) and companies (subsidiaries) controlled by the parent. The parent company is deemed to have control if it (i) has control of the relevant activities in the entity, (ii) is exposed to or are entitled to a variable returns from the investment and (iii) may use its controlling interest to affect the variables of their return.

The consolidated financial statements are prepared as a consolidation of the parent financial statements and accounts of the individual subsidiaries, which have been prepared in accordance with the Group's accounting policies, the elimination of intercompany income and expenses, shareholdings, balances, dividends and gains and losses on transactions, taken between the consolidated companies.

Sale of subsidiaries and activities

When the Group ceases to have control any retained interest in the entity is re-measured to its fair value at the date when control is lost, with the change in carrying amount recognised in profit or loss. The fair value is the initial carrying amount for the purposes of subsequently accounting for the retained interest as an associate, joint venture or financial asset. In addition, any amounts previously recognised in other comprehensive income in respect of that entity are accounted for as if the Group had directly disposed of the related assets or liabilities. This may mean that amounts previously recognised in other comprehensive income are reclassified to profit or loss.

Foreign currency

Transactions in currencies other than the individual companies' functional currencies are translated initially at the transaction date. Receivables and payables and other monetary items in foreign currencies that have not been settled at the balance sheet date are translated at the closing rate. Exchange differences arising between the date of transaction and payment date or the balance sheet date are recognized in the income statement under financial income or expenses. Exchange differences arising from the translation of foreign companies' balance sheet items at the beginning of the exchange rates and the translation of income statements from average rates to closing rates are recognized in other comprehensive income.

Exchange rate on full or partial disposal of foreign entities, where control is transferred, the foreign currency translation adjustments are recognized in other comprehensive income, which is attributable to the unit from other comprehensive income to net income along with the gain or loss on the disposal.

PROFIT AND LOSS STATEMENT

Revenue

Revenue includes rental income, interest on mortgage and debt instruments measured at fair value, sale amount from sold project holding, sales of goods and sales of other services. Rental Revenue is measured at the fair value of the consideration received or receivable and is calculated exclusive of VAT collected on behalf of third parties and discounts.

Revenue from the sale of project portfolios is recognized when delivery takes place and transfer of risk to the buyer (sales method), ie when any construction is completed and finally transferred to the buyer, and all essential elements of the sales agreement are met. Sales of goods factored when delivery and risk transition have taken place.

Rental income, interest on mortgage and debt instruments measured at fair value, and sales of other services is recognized in the periods to which they relate.

Operating costs

Operating costs include costs directly related to turnover, including ongoing operating expenses of the Group investment properties, costs associated with the acquisition and construction of submitted project inventories and other operating costs.

Adjustments to fair value, net

Adjustment to fair value, net includes continuous adjustments of investment properties through profit or loss.

Realized gains on sale of investment properties

Realized gains on sale of investment properties is recognized when the risks and rewards are transferred to the buyer, and the control of the property has been transferred.

Financial income and expenses

Financial items include interest income and interest expenses, foreign exchange rate adjustments, amortization premiums / discounts, realized and unrealized gains and losses on securities as well as surcharges and refunds under the tax.

Borrowing costs directly attributable to the development projects of investment or project portfolios, added to the cost of the assets until the time when the project is completed and the property can be used for the intended purpose. If there is a loan directly to finance the development project, calculated borrowing costs on the basis of an average interest rate of the group's loans except for loans recorded at the acquisition of specific assets. Other borrowing costs are recognized in the income statement in the periods to which they relate.

Income tax expense

Tax for the year comprises current tax and changes in deferred tax, is recognized in the income statement with the portion attributable to the profit and directly in equity or in other comprehensive income with the portion attributable to amounts recognized directly in equity and in other comprehensive income.

BALANCE STATEMENT

Intangible assets

Intangible assets (software) is stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items.

Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of those parts that are replaced is derecognised. All other repairs and maintenance are charged to the income statement during the financial period in which they are incurred.

Depreciation, based on a component approach, is calculated using the straight line method to allocate the cost over the asset's estimated useful lives. Intangible assets (software) have been depreciated under the assumption of 3 years of useful live.

Depreciation is based on revalued amount less estimated residual value after useful life (residual value).

Domicile

Domicile properties are initially measured at cost. The cost comprises the cost and expenses directly associated with the acquisition. Fair value at the time of a previous investment property is transferred to owner-occupied properties, is considered the property new cost.

Domicile properties are then measured at a readjusted value, corresponding to the fair value at the time of re-evaluation less accumulated depreciation. Principles and Estimates Management's estimate of the properties' fair value are shown in note 1. Revaluations recognized in other comprehensive income and attributed to the separate reserve for revaluation of equity. Owner-occupied properties are depreciated over the assets / components' estimated useful lives, as follows:

Buildings	50 years
Other components	15-30 years

Depreciation is based on revalued amount less estimated residual value after useful life (residual value). Land is not depreciated.

Investment properties

Investment property includes land and buildings held by Park Street to earn rental income and / or capital gains. Investment properties are measured initially at cost, which comprises the properties and cost, directly related costs. Investment properties are then measured at fair value and all value adjustments are recognized in the income statement under "Adjustment to fair value, net".

Principles and methods for management's estimate of the properties' fair values is disclosed in note 1.

Land plots, where here is no final decision on the purpose of usage have been included in the Group's portfolio as investment properties.

Machinery and equipment

All machinery and equipment is stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items.

Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of those parts that are replaced is derecognised. All other repairs and maintenance are charged to the income statement during the financial period in which they are incurred.

Depreciation, based on a component approach, is calculated using the straight line method to allocate the cost over the asset's estimated useful lives as stated above on Domicile.

Depreciation is based on revalued amount less estimated residual value after useful life (residual value).

Investment in associates

Investments in associates are recognised at cost price following the cost method principle. The investment is recorded at its historical cost (purchase price). Once the initial transaction is recorded there is no need to adjust it, unless there is evidence that the fair market value of the investment has declined below the recorded historical cost. If so, the investment is written down to adjust to its new fair value.

Impairment of non-current assets

The carrying value of tangible assets that are not measured at fair value are assessed regularly and at least annually to determine whether there is any indication of impairment. When such an indication is present, the asset is valued at recovery value. The recoverable amount is the higher of an asset's fair value less costs to sell or value in use. Value in use is the present value of expected future cash flows from the asset or cash-generating unit to which the asset belongs. If the asset does not generate cash independently of other assets, the recoverable amount of the smallest cashgenerating unit that includes the asset.

Impairment is recognized if the carrying amount of an asset or cash-generating unit exceeds the assets' useful or cash-generating unit's recoverable amount does not exceed the carrying amount that the asset would have had after depreciation if the asset had not been impaired.

Current financial assets measured at fair value

Mortgages classified as financial instruments categorized as "financial assets measured at fair value through profit or loss" are recognized at fair value on initial recognition and subsequently measured at fair value, continuously carried out a revaluation of this statement. Fair value is determined based on observable market data (interest rates), the debtor's creditworthiness and on assessments of the loan term to maturity and ranking in the position.

Receivables

Receivables are measured at amortized cost. Impairment losses are made for losses which are deemed to have resulted in an objective indication that an individual receivable is impaired.

Prepayments

Prepayments recognized under assets comprise incurred costs related to coming financial years. Prepayments are measured at cost.

Dividends

Dividends are recognized as a liability at the time of adoption at the general meeting. Dividends proposed for distribution is shown as a separate component of equity until the Annual General Meeting.

Own shares

Acquisition and selling prices of company shares and dividends are recognized directly in equity under retained earnings.

Foreign currency reserve

Currency translation reserve includes the parent company shareholders' share of exchange rate differences arising from the translation of accounts for companies with a different functional currency than Danish crown. The reserve is dissolved by the disposal of foreign entities.

Revaluation reserve

Reserve for revaluation includes the accumulated revaluation of domicile. The reserve is reduced by transfer to the profit for the year, as depreciation and write-downs are made on the properties written up or for sale.

Corporate tax and deferred tax

Current tax liabilities and current tax receivables are recognized in the balance sheet as calculated tax on the taxable income, but adjusted for tax on prior years' taxable income and taxes paid on account.

Deferred tax is measured using the balance sheet liability method on temporary differences between accounting and tax values of assets and liabilities, excluding deferred taxes on temporary differences arising on initial recognition of goodwill or the initial recognition of a transaction that is not a business combinations, and where the temporary difference found at the time of initial recognition affects neither the accounting profit nor taxable income.

Deferred tax assets including the tax value of tax loss carryforwards, are recognized under non-current assets at the value at which they are expected to be used either by elimination in tax on future earnings or against deferred tax liabilities. Deferred tax assets are reviewed annually and recognized only to the extent that it is probable that they will be utilized.

Deferred tax is measured based on the tax rates and at the balance sheet date will be applicable in the respective countries when the deferred tax is expected to crystallize as current tax. Change in deferred tax due to changes in tax rates is recognized in the income statement.

Provisions

Provisions are recognized when, as a result of an event occurring before or at the balance sheet date has a legal or actual obligation and it is probable that a payment will be needed to settle the obligation.

The item includes provision for dealing with specific uncertainties on completed projects. Provisions are measured on a best estimate of the amount required to settle the obligation. Provisions with an expected maturity of one year and above are classified as non-current liabilities.

Liabilities

Borrowings are initially recognized at fair value which is generally proceeds received, and net of transaction costs incurred. Subsequently, borrowings are measured at amortized cost.

Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the reporting period.

Other financial liabilities, including trade and other payables, are on initial recognition measured at fair value. The liabilities are subsequently measured at amortized cost.

Assets held for sale

Assets held for sale include non-current assets that are for sale. Liabilities relating to assets held for sale are liabilities directly related to those assets that will be transferred during the transaction. Assets are classified as "held for sale" when their carrying amount will primarily be recouped through a sale within 12 months according to a formal plan rather than through continued use and provided that the sale at the balance sheet date is considered to be highly probable. When the properties are expected to be recovered from the sale of subsidiaries that own the properties, all the subsidiaries' assets and liabilities are reclassified.

Assets are not depreciated from the time they are classified as "held for sale". Assets held for sale are measured at the lower of the carrying amount at the time of the "sale-for-sale" or fair value less cost of sale. However, investment properties held for sale are measured according to the Group's usual accounting policies for investment properties, ie. at fair value without deduction of selling costs.

CASH FLOW STATEMENT

The cash flow statement is presented according to the indirect method and shows cash flows divided by operating, investing and financing activities for the year, the year's shift in cash and cash equivalents at the beginning and end of the year.

The liquidity effect on the sale of companies is shown separately under cash flow from investing activities. The cash flow statement recognizes the cash flows of sold companies until the date of sale.

Cash flows from operating activities are calculated as operating profit adjusted for non-cash operating items, changes in working capital, received and paid financial income and expenses and paid corporation tax.

Cash flows from investing activities include payments in connection with sales of companies and activities, purchase and sale of financial assets as well as purchase, development, improvement and sales, etc. of intangible and tangible assets, including investment properties.

Cash flows from financing activities include changes in the parent company's share capital and associated costs as well as admission and repayment of loans, repayment of interest-bearing debt, purchase and sale of own shares and payment of dividends.

Cash and cash equivalents comprise cash with insignificant price risk.

Park Street | Park Street A/S Financial Statements

70

PARK STREET A/S FINANCIAL STATEMENTS

Income statement

Note	Amounts in DKK 1000s	2022	2021
2	Net sales	93,549	140,258
3	Operating expenses	-26,245	-35,581
	Gross profit	67,304	104,677
4	Employee benefit expenses	-12,713	-16,396
5	Other expenses, by nature	-9,331	-11,264
6	Depreciation, amortisation and impairment	-1,648	-3,938
	Operating profit (EBIT)	43,611	73,079
	Financial income subsidiaries	11,426	11,777
7	Financial expenses	-8,113	-20,931
	Earnings before value adjustments (EBVAT)	46,924	63,926
8	Income / Loss from subsidiaries	12,727	54,289
9	Adjustment to fair value, net	24,374	67,539
	Gains realised on the sale of investment properties	-4,466	1,472
	Profit before tax	79,559	187,225
10	Tax on profit for the period	-15,747	-41,767
	Profit for the period	63,812	145,459
	Distributed as follows
	Parent's shareholders	63,812	145,459
	Profit for the period	63,812	145,459

Note	Amounts in DKK 1000s	2022	2021
	Profit for the period	63,812	145,321
	Other comprehensive income:
	Items that cannot be reclassified to the income statement:
	Fair value adjustment of domicile properties	0	7,040
	Tax on fair value adjustment of domicile properties	0	-1,549
	Other comprehensive income after tax	0	5,491
	Comprehensive income for the period	63,812	150,812
	Distributed as follows
	Parent's shareholders	63,812	150,812
	Comprehensive income for the period	63,812	150,812

Statement of comprehensive income

Statement of financial position

Note	Amounts in DKK 1000s	2022	2021
	ASSETS
	Non-current assets
	Intangible assets
	Software	446	1,865
	Capitalised Leasing Fees	625	0
		1,071	1,865
	Property, plant and equipment
12	Investment properties	1,398,766	1,596,596
13	Machinery and equipment	-45	49
		1,398,721	1,596,645
	Financial assets
11	Investment in subsidiaries	465,332	452,291
	Investment in associates	2,029	2,029
	Deposits	161	161
		467,522	454,481
	Total non-current assets	1,867,314	2,052,991
	Current assets
14	Mortgages and instruments of debt	165,296	165,554
15	Trade and other current receivables	60,252	36,038
	Income tax receivable	2,270	4,986
	Prepaid expenses and accrued income	911	2,029
	Cash and short-term deposits	7,167	152,652
	Total current assets	235,839	361,259
	Total assets	2,103,154	2,414,250
	Equity
	Share capital	57,175	67,513
	Share Premium	289,260	289,260
	Accumulated profit	740,589	860,265
	Total equity	1,087,024	1,217,038
	LIABILITIES
	Non-current liabilities
16	Deferred tax	247,723	232,087
17	Borrowings	720,686	894,301
	Deposits	1,615	4,413
		970,024	1,130,801
	Current liabilities
	Provisions for liabilities	400	400
17	Current borrowings	20,347	20,347
	Trade and other payables	-1,804	11,860
	Deposits	25,108	25,108
	Other liabilities	2,055	7,454
		46,106	66,411
	Total liabilities	1,016,130	1,197,212
	Total equity and liabilities	2,103,154	2,414,250

Statement of equity

Amounts in DKK 1000s	Share cap ital	Revaluation re serve	Accumulated profit	Share Pre mium	Equity Total
Statement of equity for 2022:
Equity as at 1 January 2022	67,513	0	860,265	289,260	1,217,038
Comprehensive income for the period Profit for the period	0	0	63,812	0	63,812
Fair value adjustment of domicile	0	0	0	0	0
Tax on other comprehensive income	0	0	0	0	0
Other comprehensive income during the financial year	0	0	0	0	0
Comprehensive income for the period	0	0	63,812	0	63,812
Transactions with owners
Repurchase own shares	0	0	-183,488	0	-183,488
Capital reduction	-10,338	0	0	0	-10,338
Total transactions with owners	-10,338	0	-183,488	0	-193,826
Equity as at 31 December 2022	57,175	0	740,589	289,260	1,087,024
Statement of equity for 2021:
Equity as at 1 January 2021	67,513	55,107	660,066	289,260	1,073,085
Comprehensive income for the period
Profit for the period	0	0	145,459	0	145,459
Comprehensive income for the period	0	0	145,459	0	145,459
Transactions with owners
Repurchase own shares	0	0	25	0	25
Cash injection by existing shareholders	0	-55,107	54,715	0	-392
Liabilities wih financial institutions converted into Equity	0	0	0	0	0
Total transactions with owners	0	-55,107	54,740	0	-367
Other adjustments
Depreciation of revalued value of domiciles
Equity as at 31 December 2021	67,513	0	860,265	289,260	1,217,038

Statement of cash flows

Note	Amounts in DKK 1000s	2022	2021
	Operating profit (EBIT)	43,611	73,079
	Adjustment for illiquid operating items, etc.	1,648	3,939
	Change in other operating capital	-41,641	-7,217
	Cash flows concerning primary operations	3,618	69,801
	Financial expenses paid	-8,113	-20,931
	Paid Corporate Tax	-3,079	-5,275
	Total cash flow from operating activities	-7,572	43,594
	Cash flow from investing activities
	Improvements to investment properties	-6,313	-17,689
	Sales of investment properties	225,505	8,026
	Share capital increase (cash injection)	0	-25
	Total cash flow from investing activities	219,192	-9,688
	Cash flow from financing activities
	Repurchase Own Shares	-183,488	0
	Proceeds from assumption of liabilities to credit institutions	0	503,306
	Repayment of liabilities to credit institutions	-29,524	-397,881
	Repayment of debt from disposal of assets	-144,092	0
	Total cash flow from financing activities	-357,104	105,425
	Total cash flow for the period	-145,485	139,331
	Liquid assets as at 1 January	152,652	13,321
	Liquid assets at the end of the period	7,167	152,652
	Liquid assets at the end of the period
	Cash and short term deposit	7,167	152,652
	Liquid assets at the end of the period	7,167	152,652

Summary

Note 1	Accounting policies, accounting estimates, risks etc.
Note 2	Net sales
Note 3	Operating expenses
Note 4	Employee Expenditure
Note 5	Auditor's fees
Note 6	Depreciation and amortization
Note 7	Financial expenses
Note 8	Income / (loss) from subsidiaries
Note 9	Adjustment to fair value, net
Note 10	Tax on profit for the year and other comprehensive income
Note 11	Investment in subsidiaries
Note 12	Investment properties
Note 13	Machinery and equipment
Note 14	Mortgages and instruments of debt
Note 15	Trade and other current receivables
Note 16	Deferred taxes
Note 17	Borrowings
Note 18	Contingent assets and liabilities
Note 19	Financial risks
Note 20	Change in other working capital
Note 21	Related parties
Note 22	Events after the balance sheet date
Note 23	Accounting policies

Notes

Note 1 - Accounting policies, accounting estimates and risks, etc.

The accounting assumptions, assessments and estimates made in the preparation of the parent company accounts are the same as described in note 22 of these financial statements, to which reference is made.

See note 11 regarding the recognition and measurement of investments, receivables from subsidiaries and provisions relating to subsidiaries in the Parent Company's financial statements.

Note 2 - Net sales

Amounts in DKK 1000s	2022	2021
Rental income	80,543	111,926
Sales of other services	12,551	27,437
Total sales of services	93,094	139,363
Interest income, mortgages and instruments of debt	455	895
	93,549	140,258

Note 3 - Operating expenses

Amounts in DKK 1000s	2022	2021
Operating expenses, investment properties	26,245	31,528
Operating expenses, other services	0	4,053
	26,245	35,581

Note 4 – Employee benefits expenses

Average number of employ ees	17	18
	12,713	16,396
Other staff costs	385	327
Other social security costs	57	58
Contribution-based pensions (*)	677	819
Salary	11,595	15,190
Amounts in DKK 1000s	2022	2021

(*) Park Street A/S has only defined contribution plans. For defined contribution plans, the employer undertakes to pay a defined contribution to a pension fund, but has no risk with regard to future developments in interest rates, inflation, mortality, disability, etc. as regards the amount to be paid to the employee.

Remuneration of the CEO and the Board of Directors is described in Note 5 of the consolidated accounts.

Note 5 – Auditor's fees

The auditor appointed in 2022 and 2021 is PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab. Their fees can be specified as follows:

Amounts in DKK 1000s	2022	2021
Statutory audit	588	420
Other assurance services	0	40
Tax and VAT advice	334	192
	922	652

Fees for non-audit services delivered by PricewaterhouseCoopers, Statsautoriseret Revisionspartnerselskab, include general accounting and tax advisory services.

Note 6 – Depreciation, amortisation and impairment

Amounts in DKK 1000s	2022	2021
Depreciation, software	1,464	1,807
Depreciation, domicile properties	0	1,497
Depreciation, inventory and fixed assets	185	634
	1,648	3,938

Note 7 – Financial Expenses

Amounts in DKK 1000s	2022	2021
Interest expenses, liabilities to credit institutions measured at amortized cost	6,781	19,142
Other interest costs and fees	640	521
Borrowing costs	691	1,268
	8,113	20,931

Note 8 – Income / (loss) from subsidiaries

Amounts in DKK 1000s	2022	2021
Intergration of subsidiaries	-15,269	-16,316
Other subsidiaries	31,767	0
	16,498	-16,316

Note 9 – Adjustments to fair value, net

Amounts in DKK 1000s	2022	2021
Fair value adjustment, investment properties	24,374	67,539
Fair value adjustment, mortgage debt and bank debt	0	0
	24,374	67,539

Note 10 – Tax on profit for the year and other comprehensive income

Amounts in DKK 1000s	2022	2021
Annual tax can be divided as follows:
Current tax on profit of the year	0	1,242
Current tax adjustment	0	59
Changes in deferred taxes	21,565	38,938
Changes in deferred taxes previous years	-5,818	1,527
	15,747	41,766
Tax on profit for the year can be explained as follows:
Estimated tax at a tax rate of 22%	17,503	41,190
Non-deductible costs	0	44
Adjustment of deferred tax assets and liabilities	-1,756	533
	15,747	41,766
Effective tax rate	19.79%	22.31%
Amounts in DKK 1000s	2022	2021
Tax on other comprehensive income:
Tax on fair value adjustment of domicile properties	0	111
	0	111

Note 11 – Investment in subsidiaries

See accounting policies on note 22 of the Parent's Financial Statements. Receivables considered to be part of the overall investment in the subsidiary are written down by any remaining negative equity value.

Amounts in DKK 1000s	2022	2021
Cost price at January 1	404,144	92,377
Additions	0	311,767
Cost price at December 31	404,144	404,144
Value adjustments at 1 January	49,699	-4,590
Share of profit/loss for the year after tax	12,727	54,289
Value adjustments at December 31	62,426	49,699
Carrying amount at January 1	452,291	87,668
Investments with negative equity offset against trade receivables	252	-1,553
Carrying amount at December 31	466,570	452,291

List of subsidiaries:

Subsidiaries	Registered Address	Equity
PSN ApS	Svanevej 12, 4th Floor, 2400 Copenhagen NV	100%
Pulse Glostrup P/S	Svanevej 12, 4th Floor, 2400 Copenhagen NV	100%
Pulse Taastrup P/S	Svanevej 12, 4th Floor, 2400 Copenhagen NV	100%
Phoam Studio ApS	Svanevej 12, 4th Floor, 2400 Copenhagen NV	100%
Pulse Living ApS	Svanevej 12, 4th Floor, 2400 Copenhagen NV	100%
Albuen ApS	Svanevej 12, 4th Floor, 2400 Copenhagen NV	100%
PSI ApS	Svanevej 12, 4th Floor, 2400 Copenhagen NV	100%
PSI Hold Co P/S	Svanevej 12, 4th Floor, 2400 Copenhagen NV	100%
Pulse N P/S	Svanevej 12, 4th Floor, 2400 Copenhagen NV	100%
Pulse O P/S	Svanevej 12, 4th Floor, 2400 Copenhagen NV	100%
Ballerup Hotel P/S	Svanevej 12, 4th Floor, 2400 Copenhagen NV	100%
Toldbuen P/S	Svanevej 12, 4th Floor, 2400 Copenhagen NV	100%
Svanevej P/S	Svanevej 12, 4th Floor, 2400 Copenhagen NV	100%
Park Street Nordicom UK Ltd	85, Great Portland Street, London, W1W 7LT, England	100%

Note 12 – Investment properties

As of 31 December 2022 there are no ongoing sales processes regarding investment properties.

Amounts in DKK 1000s			2022	2021
Balance at 1 of January			1,596,596	2,131,476
Transfer to / from a subsidiary			0	-620,913
Transfer to / from project holdings			0	0
Costs incurred for improvements			6,313	17,689
Adjustment to fair value, net			24,374	76,553
Acquisition of properties			0	0
Additions fixed assests			561	0
Depreciation of fixed assets			-185	-129
Retirement on sale			-228,938	-8,080
Balance at 31 December			1,398,722	1,596,596
Fair value hierarchy for investment:
Amounts in DKK 1000s	Level 1	Level 2	Level 3	Total

0	0	1,398,722	1,398,722
0	0	1,398,722	1,398,722
0	0	1,596,596	1,596,596
0	0	1,596,596	1,596,596

Classification of investment properties in level 3 means that determining the fair value of investment properties is mainly based on data that is not observable in the market.

During 2022 and 2021 there has been no transfers between levels of the fair value hierarchy.

The fair value of investment properties is based on estimates. Refer to note 15 in the consolidated financial statements for additional details.

The net income of the investment portfolio is as follows:

Amounts in DKK 1000s	2022	2021
Rental income from investment properties	80,543	119,609
Operating expenses, investment properties	-26,245	-34,679
Net income from investment properties	54,298	84,930

The Group has entered into operating leases (leases) to tenants of its investment properties. The leases duration is up to 15 years. The contract minimum payments under existing leases are distributed as follows:

Amounts in DKK 1000s	2022	2021
Remaining termination within 1 year from the balance sheet date	26,972	26,972
Remaining termination between 1 and 5 years from the balance sheet date	70,238	70,238
Remaining termination after 5 years from the balance sheet date	57,607	57,607
	154,817	154,817

Note 13 – Machinery and equipment

Amounts in DKK 1000s	IT Equipment	Appliances
Cost at 1 of January 2022	4,150	8,424	12,574
Additions during the year	0	0	0
Disposals during the year	0	0	0
Cost at 31 December 2022	4,150	8,424	12,574
Amortization at 1 January 2022	-4,131	-8,395	-12,526
Amortization during the year	-10	0	-185
Amortization at 31 December 2022	-4,141	-8,395	-12,536
Balance at 31 December 2022	9	29	38
Cost at 1 of January 2021	4,150	8,424	12,574
Additions during the year	0	0	0
Disposals during the year	0	0	0
Cost at 31 December 2021	4,150	8,424	12,574
Amortization at 1 January 2021	-4,115	-7,715	-11,830
Amortization during the year	-16	-680	-696
Amortization at 31 December 2021	-4,131	-8,395	-12,526
Balance at 31 December 2021	19	29	48

Note 14 – Mortgages and instruments of debt

Park Street has the following mortgage and debt instruments classified as "Financial assets measured at amortized cost":

Amounts in DKK 1000s	2022	2021
Financial assets at amortized cost at 1 January	165,554	165,883
Repayment of the year	-258	-329
Financial assets at amortized cost at 31 December	165,296	165,554

Mortgages and debt securities classified as financial instruments in the category "Financial assets recognized at amortized cost" expire in the following periods:

		Effective interest rate p.a.		Balance in DKK 1000s		Fair value in DKK 1000s
Value	Expire	2022	2021	2022	2021	2022	2021
DKK	2025	7.50%	7.50%	7,412	7,671	7,412	7,671
DKK	2022	7.50%	7.50%	1,000	1,000	1,000	1,000
DKK	2022	7.50%	7.50%	1,500	1,500	1,500	1,500
DKK	2022	7.50%	7.50%	2,200	2,200	2,200	2,200
DKK	2022	7.50%	7.50%	13,100	13,100	13,100	13,100
DKK	2022	7.50%	7.50%	140,083	140,083	140,083	140,083
				165,295	165,554	165,295	165,554

Park Street A/S has provided a credit line facility to the subsidiary Pulse Taastrup P/S with an aggregate principal amount of nominal DKK 175 million (153.2 million utilized at 31.12.21) with an annual interest rate of 7.5% payable at the maturity date of the loan. Additionally, Park Street A/S has provided a credit line facility to the subsidiary Phoam Studio ApS with an aggregate principal amount of nominal DKK 5 million (4.7 million utilized at 31.12.21) with an annual interest rate of 7.5% payable at the maturity date of the loan.

The calculated fair value is based on estimates (Level 3 in fair value hierarchy).

Note 15 – Trade and other current receivables

Amounts in DKK 1000s	2022	2021
Receivable Rental Income	4,607	3,963
Deposited funds in banks	8,272	12,209
Other Receivables	349	409
Receivables from related parties	47,025	19,456
Receivables at 31 December	60,252	36,038

Write-downs on receivable rental income have been made after an individual assessment and have developed as follows:

	2,165	2,444
Reversal	-1	0
Recognized losses (Write off)	0	-4
Additional provisions	-277	736
Bad debt provision as of 1st of January	2,444	1,712

In the above tenant rental income, receivables have been recognized which were overdue as at 31 December but have not been written down, with the following amounts:

Up to 30 days	276	0
Between 30 and 90 days	2,535	0
Over 90 days	1,801	1,300
	4,612	1,300

Trade receivables are predominantly non-interest bearing. Apart from rental income receivable, Park Street has no receivables that are overdue at the balance sheet date or which have been assessed as impaired.

Funds deposited in banks relate to receivables selling price from properties sold, funds deposited as collateral for mortgage loans and deposits as security for the initiated maintenance work on properties.

Note 16 – Deferred Taxes

Amounts in DKK 1000s	2022	2021
Deferred tax liabilities at 1st of January	232,087	191,733
Recognized in other comprehensive income	0	-111
Correction from previous years	-111	0
Recognized in the income statement	15,747	40,465
Deferred tax liabilities at 31 December	247,723	232,087
Deferred tax is recognized in the balance sheet as follows:

Deferred tax at 31 December	-247,723	-232,087
Deferred tax (liability)	-247,723	-232,087
Deferred tax (active)

Deferred tax recognized in the balance

The calculation of deferred taxes included DKK 32.6 million relating to tax losses carried forward from Group companies. Based on budget accounting and tax profits in the period 2021-2024 and deferred tax liabilities, it is estimated that all tax losses (tax base) will be realized, which is included in the calculation of deferred tax DKK 247.7 million (taxable value) per 31 December 2022 (2021: DKK 232.1 million).

Amounts in DKK 1000s	Balance 1/1	Recognized in the income statement	Recognized in another comprehen sive income	Balance 31/12
2022
Software	410	-312	0	98
Investment and residential properties	266,087	11,810	0	277,897
Fixtures and fittings	-413	25	0	-388
Project Holdings	0	0	0	0
Receivables	-612	0	0	-612
Provisions	0	-88	0	-88
Credit institutions	-779	1,910	0	1,131
Tax losses carryforward	-32,606	2,291	0	-30,315
	232,087	15,636	0	247,723

Amounts in DKK 1000s	Balance 1/1	Recognized in the income statement	Recognized in another comprehen sive income	Balance 31/12
2021
Software	807	-397	0	410
Investment and residential properties	228,140	38,058	-111	266,087
Fixtures and fittings	-523	110	0	-413
Project Holdings	0	0	0	0
Receivables	-409	-203	0	-612
Provisions	-88	88	0	0
Credit institutions	204	-983	0	-779
Tax losses carryforward	-36,398	3,792	0	-32,606
	191,733	40,465	-111	232,087

There are no deferred tax assets not recognized in the balance.

Note 17 – Borrowings

Amounts in DKK 1000s	2022	2021
Credit institutions, nominal	747,142	920,758
Market value adjustments	-6,110	-6,110
	741,032	914,648
The liabilities are thus included in the balance sheet:
Credit institutions, long-term	720,686	894,301
Credit institutions, short-term	20,347	20,347
	741,032	914,648

The Group's loans and credits are distributed as per 31 December as follows:

Liabilities recognized at fair value	Currency	Rate type	Expiry date	2022	2021
Convertible bonds	DKK	Interest-free	11-15 years	11,335	11,335
				11,335	11,335
Market value adjustments				-5,579	-6,110
Carrying amount				5,757	5,226
Liabilities recognized at amortized cost	Currency	Rate type	Expiry date	2022	2021
Banks Debt	DKK	Fixed	2-5 years	0	4,985
Mortgage Debt	DKK	Variable	2-5 years	64,604	43,402
Mortgage Debt	DKK	Variable	6-10 years	0	35,987
Mortgage Debt	DKK	Variable	11-15 years	667,824	593,362
Mortgage Debt	DKK	Variable	16-20 years	0	231,685
Carrying amount				732,428	909,420

The nominal amounts stated in the tables represent the amount that Park Street will repay under the loan agreements by the end of these agreements.

Fixed interest loans stated in the tables indicate that a fixed rate applies until the loans' maturity date or until a new negotiation is made with the individual bank. Variable interest rates expressed in the tables indicate that the loans have interest rates that are regularly adjusted over the term of the loans due to fluctuations in market interest rates.

The evolution of the long and short term liabilities with credit institutions is specified follows:

Amounts in DKK 1000s	2022	2021
Non-current financial liabilities	894,301	1,259,880
Current financial liabilities	50,970	50,970
Liabilities associated with assets held for sale	0	0
Financial liabilities with credit institutions at 1 January	914,648	1,310,850
Repayment of liabilities to credit institutions	-173,616	-397,881
Fair value adjustment of Debt	0	1,678
Financial liabilities with credit institutions at 31 December	741,032	914,648
Non-current financial liabilities	720,686	894,301
Current financial liabilities	20,347	20,347
Total financial liabilities with credit institutions at 31 December	741,032	914,648

Determining the fair value of debt to credit institutions

Information on Group's financial loan agreements, mortgage debt and convertible bonds is disclosed in note 26 of the consolidated financial statements. Information on estimates and judgments related to the determination of fair value of financial liabilities is disclosed in note 1 of the Consolidated Financial Statements. As stated in these notes mortgage and bank debt have been recognized at amortised cost in 2022. No reversal of fair value adjustments in 2022 and 2021.

Zero-coupon bonds (former Convertible bonds)

See note 24 in the Consolidated Financial Statements.

Note 18 – Contingent assets and liabilities

Pledges and guarantees

The nominal pledge for the bank debt and mortgage debt given by credit institutions per December 31, 2022 amount a total of DKK 732 million (31 December 2021: DKK 909 million), the nominal value of the loans amounts a total of DKK 732 million (31 December 2021: DKK 909 million) in the group's investment properties and domiciles with a book value totalling DKK 1,410 million (31 December 2021: DKK 1,597 million).

The nominal pledge for the bank debt and mortgage debt given by credit institutions per December 31, 2022 amount a total of DKK 7.4 million (31 December 2021: DKK 7.7 million), in the group's deposited mortgage deeds with a book value totalling DKK 7.4 million (31 December 2021: DKK 7.7 million).

Litigations and disputes

Park Street had a legal dispute with a previous tenant in relation to the lease being deemed as a commercial or a residential lease. Park Street has lost the argument and now the lease is deemed to be residential. This could lead to some potential liability in relation to the dilapidations claim and other aspects. This will be clarified as the case proceeds further with the Housing Board.

No additional significant litigations and disputes are acknowledged by the Group at December 31, 2022 other than the ones indicated in Note 27.

Conditional debt relief and contingencies

In connection with the sale of a property in 2014, Park Street has been subject to a surcharge for the property if the purchaser on the site before 1 January 2024 obtains more building rights than assumed at the conclusion of the transaction. The additional price amounts to DKK 2,000 for each building rights. Additional building plans will require a change of the local plan for the area in which the property in question is located. Park Street is not aware of any plans to change the local plan in question, for this reason Park Street does not consider the potential additional price as a contingent asset.

Contingent assets

As part of the sales agreement of the property sold in 2018, Park Street and the buyer have agreed that Park Street is entitled to obtain an additional supplement of DKK 1 million if the buyer completer a development project of more than 5,000 square meters within 5 years from the date of acquisition; the Company has decided not to recognize the contingent asset in the balance as at December 31, 2022.

Lease hire agreements

There are lease hire agreements for cars rental and printers.

	2022	2021
Within 1 year from the balance sheet date	10	1
Between 1 and 5 years from the balance sheet date	422	5
After 5 years from the balance sheet date	0	0
Lease hire obligations at 31 December	431	6
Minimum lease payments recognized in the profit and loss account for the year	31	130

Note 19 – Financial risks

Amounts in DKK 1000s	2022	2021
Mortgages and debentures	7,412	7,671
Intercompany loan	157,883	157,883
Financial assets measured at amortized cost	165,296	165,554
Receivables	60,252	36,038
Cash and equivalents	7,167	152,652
Loan and receivables	67,419	188,690
Credit institutions	5,757	5,226
Financial liabilities measured at fair value through profit or loss	5,757	5,226
Credit institutions	735,806	909,421
Deposits	26,723	29,521
Accounts payable	-2,001	11,860
Other Debts	5,171	7,454
Financial liabilities measured at amortized cost	765,699	958,256

Risk management policy

The financial management of the Group is geared towards stabilization and optimization of the Group's operations, while at minimizing the Group's financial risk exposure. It is part of the Group's policy not to conduct speculative transactions by active use of financial instruments.

The group is due to its activities exposed to various financial risks, including liquidity risk, market risks (primarily interest rate risk) and credit risk.

Liquidity risk

Park Street's liquidity risk consists on not being able to make regular payments and not being able to provide sufficient liquidity to cover the financing costs, capital repayment obligations and capital investments. Lack of liquidity may arise from insufficient cash resources and may be adversely affected by missed payments from Park Street tenants, increased vacancy, repayment of deposits, divestments, unexpected costs and investment needs. Lack of liquidity may also arise from default of loans signed and in connection with refinancing when existing loan agreements expire or are terminated.

Cash reserves total at December 31, 2022 DKK 7.2million (31 December 2021: DKK 152.6 million). Park Street forecasts that current and generated liquidity is sufficient to carry out the group's planned activities throughout 2022.

Maturity of financial liabilities is specified as follows:

Amounts in DKK 1000s	Carry forward balance	Contractual cash flows	0 - 1 Years	2 - 3 Years	4 - 5 Years	After 5 Years
2022
Non-derivative financial instruments
Credit institutions	741,032	751,837	19,409	0	64,604	667,824
Trade payables	-2,001	-2,001	0	0	0	0
Deposits	26,723	27,507	14,591	10,583	1,570	764
Other debts	5,171	5,171	5,171	0	0	0
Total	770,925	782,514	39,170	10,583	66,174	668,588
2021
Non-derivative financial instruments
Credit institutions	914,647	998,587	31,338	62,675	62,796	841,778
Trade payables	11,860	11,860	0	0	0	0
Deposits	29,521	29,521	25,108	3,634	97	682
Other debts	7,454	7,454	7,454	0	0	0
Total	963,482	1,047,422	63,900	66,309	62,893	842,460

Interest rate risk

Park Street is as a result of its financing activities in significant extent exposed to interest rate fluctuations. The interest rate risk is therefore an essential element in the overall assessment of the Group's financial situation.

The interest rate risk as of December 31, 2021 primarily relate to the following:

• Fluctuations in market interest rates on mortgages with variable rates (Cibor6, F2, F3, F5).
• Renegotiation of the margin rate applied on the mortgage loans.
• Renegotiation of fixed interest rate of bank debt associated with the extension of loans / terms. Fixed rate includes loans, which applies a fixed rate until the loans' maturity date, to other agreed point in time or until a renegotiation is made with the individual bank.

Park Street's major interest rate risk is the risk that the financial creditors on short notice increase terms of interest and margin rates. In this situation, the level of interest and contribution rates depend on negotiations with the financial institutions. The Group's loan portfolio is continuously monitored with a view to optimizing the group's exposure to interest rate risks. Park Street at December 31, 2022 does not have financial instruments for interest rate hedging, and the group has limited opportunities to influence the interest rate risk in the current financial situation.

Type of loan		Nominal (DKK million)	* Weighted interest rate (per annum)
At December 31, 2022:
Mortgage debt	Cibor6	104	4.91%
Mortgage debt	F2	43	2.64%
Mortgage debt	F3	122	0.86%
Mortgage debt	F5	463	0.98%
Bank debt etc.	Fixed	0	-
Others	Interest-free	0	-
		732	1.62%
At December 31, 2021:
Mortgage debt	Cibor6	139	2.08%
Mortgage debt	F2	46	2.54%
Mortgage debt	F3	214	0.83%
Mortgage debt	F5	505	0.84%
Banks and other payables.	Fixed	5	0.00%
Others	Interest-free	5	0.00%
		914	1.11%

Group's nominal financial debt is specified as follows, based on the type of interest rate that is linked to individual loans:

The calculated weighted interest rate for all Park Street loans are at 31 December 2022 1.62% per annum, and is based on the latest confirmed interest rates. The corresponding calculated weighted rate at 31 December, 2021 was 1.11% per annum.

Breakdown by maturity until the next date of interest rate adjustment distributes the Group's loans as follows (as of Dec. 31):

Amounts in DKK million	2022	2021
Within six months	80	193
Between 6 and 12 months	65	0
Between 1 and 2 years	0	212
Between 2 and 5 years	588	505
After 5 years	0	5
	732	914

The interest rate adjustment date for fixed-rate and interest-free loans is included in the above table at the time of the renegotiation of the maturity and / or terms of the loans or where existing confirmations on a given interest rate expire for a period.

Interest rate risk from Park Street's view can be presented in the following two divisions:

• Variable market interest rates: Risks associated with fluctuations in market interest rates, ie. on loans where interest rate adjustment takes place at defined times based on market fluctuations. This applies to mortgage loans with variable interest rates.
• Interest, etc. on all loans: Risks associated with fluctuations in interest rates on all loans. In addition to the above fluctuations in market rates, this includes the renegotiation of contribution rates at mortgage banks and renegotiation of loan terms with bank creditors.

The hypothetical effect on the results and equity after tax as a result of 1 percentage point increase in interest rates (ex. Fair value adjustments) are illustrated in the following table:

Amounts in DKK 1000s	2022	2021
Variable Interest rate loans:
Effect on income statement	-1.0	-11.3
Effect on equity	-1.0	-11.3

On loans from credit institutions, with ongoing interest rate adjustments resulting from changes in market interest rates, illustrates the table above that the hypothetical effect on net income and equity as a result of one percentage point increase in interest rates amounts to DKK –1.0 million per annum (2021: DKK -11.3 million).

Currency risk

The group exposure is very limited to changes in currency rates.

Credit risk

The Group's credit risk is primarily related to:

• Lease receivables
• Receivables from the sale of properties
• Receivables form mortgages

The maximum credit risk for financial assets is reflected in the accounting values of the balance sheet, and taking into account securities received.

Risks concerning to rental receivables are limited to Park Street's options to deduct payments from deposits and termination of the covered leases. Credit risk on receivables arising from the sale of properties is limited, as the transactions are always subject to payment of purchase price and deposit of the purchase price. With mortgage deeds, the Group has an usual debtor risk, which is reduced by mortgages on properties.

In order to minimize the risk of loss of receivable rent, the tenants' ability to pay prior to entering into leases is assessed to the extent that it is relevant. In addition, there is usually a requirement for a cash deposit, a guarantee and / or prepaid rent. However, if a tenant is unable to pay, it may result in loss as well as reduced income due to rental allowance upon relocation, lower future rental income and any additional costs incurred in connection with refurbishment etc.

Credit risk on receivables at December 31, 2022 is further described in note 19 of the consolidated financial statements.

Group's Cash and cash equivalents consists primarily of deposits in reputable banks. The group believes that there is no significant credit risk associated with the cash. Deposits in banks are labelled at variable interest rate.

Financial liabilities with credit institutions and fair value

Group's mortgage debt and bank debt is classified as amortized cost. Fair value of loans measured at amortised cost amount to DKK 909,420. Fair value has been determined as the present value of the contractual cash flows discounted at a rate reflecting the current borrowing rate. Due to the fact that the terms of all loans were renegotiated in 2017, fair value of all floating rate loans is considered to be equal to their carrying aomunt. Based on a recent transaction, the fair value measurement is considered a level 2 measurement.

The fair value of zero-coupon debt is established based on the fair value estimated by an independent reviewer (estimated rate of 50.79 at December 31, 2022).

The Group's financial assets and liabilities measured at fair value are classified on the following 3 levels in the fair value hierarchy:

• Level 1: Based on listed prices (non-adjusted) on active markets for identical assets or liabilities.
• Level 2: Based on inputs other than listed prices that are observable for the asset or liability, either direct (as prices) or indirect (derived from prices).
• Level 3: Based on data that is not observable in the market.

Amounts in DKK 1000s	Carry forward balance	Level 1	Level 1	Level 2
2022
Mortgages and debentures	7,412	0	0	7,412
Intercompany loan	157,883			157,883
Total financial assets	165,296	0	0	165,296
Credit institutions	5,757	0	0	5,757
Total financial liabilities	5,757	0	0	5,757
2021
Mortgages and debentures	7,671	0	0	7,671
Intercompany loan	157,883			157,883
Total financial assets	165,554	0	0	165,554
Credit institutions	5,226	0	0	5,226
Total financial liabilities	5,226	0	0	5,226

It is the Group's policy to recognise transfers between the different levels from the time at which an event or change in circumstances entails a change in the classifications. No transfers were made between levels 1 and 2 in the accounting period.

When calculating the fair value of the Group's liabilities in accordance with level 3 of the fair value hierarchy, a correction is made for the Group's own credit rating, taking into account the legal status of the liabilities, and the security in the assets measured at fair value. Consequently, no direct assumptions of discount factors, etc. are included when measuring liabilities to credit institutions in accordance with level 3 of the fair value hierarchy. The table below shows the change in liabilities to credit institutions measured at fair value in the balance sheet based on valuation methods in which significant inputs are not based on observable market data (level 3):

Amounts in DKK million	2022	2021
Carrying amount per. 1st of January	5,226	3,548
Gains / losses in the income statement	531	1,678
Balance at 31st of December	5,757	5,226
Gain / loss in the income statement for liabilities held at 31st of December	531	1,678

Gains/losses concerning credit institutions measured at fair value are included in the item 'Adjustment to fair value, net' and in the item 'Special items' in the income statement of the consolidated financial statements. Liabilities to credit institutions measured at fair value are transferred to/from level 3 in the fair value hierarchy depending on whether the fair value of the loans contains a correction for the Group's own credit rating.

For financial instruments that are not measured at fair value, the book value is assessed as being a reasonable approximation of fair value.

Note 20 – Changes in other working capital

Amounts in DKK 1000s	2022	2021
Change in receivables	-24,214	-17,327
Change in project holdings	0	0
Change in provisons	0	0
Change in deposit	2,798	1,581
Change in trade payables	13,861	-6,685
Change in total working capital	-7,555	-22,431

Note 21 – Related parties

Park Street Asset Management Ltd. (London, England) has controlling influence in Park Street A/S by virtue of its shareholding of 93.06% of shares and votes in Park Street A/S. See note 5 in the Consolidated annual report, where the remuneration of Directors and Board of Park Street appears. The Company has additionally had the following transactions between Park Street and related parties:

Amounts in DKK 1000s	2022	2021
Other related parties
Intangible assets	446	0
Software expenses	1,338	2,234

There have been no other transactions, etc. with related parties during the period.

Note 22 – Accounting policies

Park Street A/S applies the same accounting policies as stated in Note 33 on the consolidated financial statements, in addition the following note is applicable for the parent company:

Investment in subsidiaries

Investments in subsidiaries are recognised and measured in the financial statements of the parent company under the equity method. On acquisition of subsidiaries, the difference between cost of acquisition and net asset value of the entity acquired is determined at the date of acquisition after the individual assets and liabilities having been adjusted to fair value (the acquisition method).

The item "Income (loss) from investment in subsidiaries" in the income statement includes the proportionate share of the profit after tax of the subsidiary. The item "Investments in subsidiaries" in the balance sheet includes the proportionate ownership share of the net asset value of the entities calculated under the accounting policies of the parent company with deduction or addition of unrealised intercompany profits or losses and with addition of any remaining value of the positive differences (goodwill).

Subsidiaries with a negative net assets value are measured at DKK 0, and any receivables from these are written down by the parent company's share of the negative net asset value, if impaired. Any legal or constructive obligation of the parent company to cover the negative balance of the subsidiaries is recognised as provisions. The total net revaluation of investments in subsidiaries is transferred upon distribution of profit to " Reserve for net revaluation" under equity. Gains and losses on disposals or winding up of subsidiaries are calculated as the difference between the sales value or cost of winding up and the carrying amount of the net assets at the date of acquisition including goodwill and expected loss of disposal or winding up. The gains or losses are included in the income statement.

Financial Ratios

The financial ratios have been calculated as follows: Return on property portfolio (% p.a.): Gross profit x 100 / Fair value of investment and domicile properties Average loan rate (% p.a.): Financial items x 100 / Credit institutions Return margin on property portfolio (% p.a.): Return on property portfolio (% p.a.) - Average loan rate Return on equity (%): Profit for the period / Total equity Equity ratio (%): Total equity / Total assets

Net asset value per share, end of period (DKK): Total equity / Share capital Earnings per share (avg. Number of shares) (DKK): Profit for the period / Average number of shares Earnings per share, end of period (DKK): Profit for the period / Number of own shares, end period Dividend yield (%): Dividend per share / Share price, end of period Price/net asset value, end of period: Share price / Net asset value per share, end of period Cash flow from operations per share (DKK): Cash flows from operations / Diluted average number of shares in circulation

PROPERTY OVERVIEW

Park Street Group owns at 31 December 2022, 46 properties.

#	Strategy	Property Type	Address	ZIP	City
	1 Spark Office	Office	Dannebrogsgade 2,		5000 Odense
	2		Vilhelmskildevej 1 C,		5700 Svendborg
	3		Birkemosevej 9 B,		6000 Kolding
	4		Stagehøjvej 22,		8600 Silkeborg
	5		Svendborgvej 275,		5260 Odense
	6		Ørnevej 18 / Svanevej 12,		2400 København
	7		Birkemose Allé 23-35,		6000 Kolding
	8		Hejrevej 30,		2400 København
	9		Banegårdsvej		2600 Glostrup
	10		Hejrevej 26-28, Ørnevej 33-35,		2400 København
	11		6, Toldbuen		4700 Næstved
	12		9, Omøvej		4700 Næstved
	13		30, Østergade		7600 Struer
	14 Spark Retail	Retail	Silkeborgvej 102,		7400 Herning
	15		13, Ro's Have		4000 Roskilde
	16		1, Møllergade		5700 Svendborg
	17		27, Immerkær		2650 Hvidovre
	18		20, Prøvestensvej		3000 Helsingør
	19		Nørregade 31-33,		4100 Ringsted
	20		34A, Dæmningen		7100 Vejle
	21		1, Helligkorsgade		6000 Kolding
	22		1, Lilleholm		2670 Greve
	23		2A, Engdahlsvej		7400 Herning
	24		27, Nørregade		4100 Ringsted
	25		13, Nørregade		4100 Ringsted
	26		8, Ro's Have		4000 Roskilde
	27		10, Dyssegårdsvej		4700 Næstved
	28		23, Hersegade		4000 Roskilde
	29		2, L. C. Worsøesvej		4300 Holbæk
	30		11, Ro's Have		4000 Roskilde
	31		3, Banetorvet		3450 Lillerød
	32		1, Stenbukken		9200 Aalborg
	33		19A, Albuen		6000 Kolding
	34	Storage	78, Vordingborgvej		4700 Næstved
	35		7, Blegdammen		4700 Næstved

36 Pulse	Residential	29, Tåsingegade	2100 København
37		33, Jernbanegade	6000 Kolding
38		21, Nørregade	4100 Ringsted

#	Strategy	Property Type	Address	ZIP	City
	39	Residential - Project	8, Hejrevej		2400 København
	40		4, Kirsebærgården		3450 Lillerød
	41		Skråningshusene		3070 Snekkersten
	42		2, Selsmosevej		2630 Taastrup
	43		12, Sjællandsgade		7100 Vejle
	44	Parking	J.C.Christensens Gade		2300 København
	45 Pulse Hotel	Hotel	13, Algade		4000 Roskilde
	46		6, Marbækvej		2750 Ballerup
	47 Sold	Retail	Århusvej		8960 Randers
	48		60, Åkirkebyvej		3700 Rønne
	49		78, Zahrtmannsvej		3700 Rønne
	50 Sold	Office	3, Femøvej		4700 Næstved
	51		3, Femøvej		4700 Næstved
	52		Loftbrovej 17, Nørre sundby		9400 Aalborg