Park Street

Annual Report (ESEF) • Apr 4, 2025

Park Street A/S 1 Company: Park Street A/S Amaliegade 6, 2. Tv 1256 København K CVR no.: 12 93 25 02 LEI no.: 213800VGJC18MRKMZC33 Registered office: Copenhagen, Denmark Phone: +45 33 33 93 03 Internet: www.psnas.com E-mail: parkstreet@parkstreet.dk Board of Directors: Anita Nassar, Chair Claes Peter Rading Ohene Aku Kwapong Pradeep Pattem Medha 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 2025 at 14:00 at Amaliegade 6, 2. Tv, 1256 København K . 1 Contents Management's review 2 Management's review 2 Subsequent events after 31 December 2024 3 Outlook and strategy for 2025 4 Financial Highlights 21 Financial Results 24 Risk Factors 25 Statutory Report CSR 27 Legal requirements for Corporate Governance 28 Statutory report on diversity in management 28 Management composition and remuneration 29 Board of Directors and Management 30 Shareholder structure 32 Group structure as of 31 December 2024 34 Statements 35 Statement by Board of Directors and Management 35 Independent auditor’s report 36 Consolidated Financial statements 42 Income statement 43 Statement of comprehensive income 44 Statement of financial position 45 Statement of equity 46 Statement of cash flows 47 Notes 48 Annual accounts for Park Street A/S 78 Income statement 79 Statement of comprehensive income 80 Statement of financial position as of 31 December 2024 81 Statement of equity 82 Statement of cash flows 83 Notes 84 Property Overview 99 Park Street/ Management's review 2 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 2024 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 2024 an EBVAT (profit excluding value adjustments and tax) of DKK 2.8 million (2023:DKK 41.4 million), as compared to our expectations of DKK 30-35 million. The variance from our published expectations was driven due to a combination factors, primarily due to reduction in number of assets from sale of properties, and costs associated with provisions for long term clean of legacy delinquencies where we see limited prospects for recoveries. We have undertaken significant changes to our operating model leading to one off costs for associated with contract terminations and consultants which should resolve in a longer-term improvement of margins and create an operating platform suitable to reduced number of properties. Furthermore, there was an increase in new leasing adding to costs for marketing activity, and an in- crease in energy costs related to vacant units. We expect the EBVAT for 2025 to be DKK 30-40 million in view of potential new leases in the pipeline and an expected reduction in costs. This could change with any significant further sales or additions to the property portfolio. The evolution of the EBVAT is influenced by the following factors: • Gross profit in 2024 is DKK 107.3 million (2023: DKK 121.9 million), equivalent to a decrease of DKK 14.6 million. The decrease in gross profit is primarily due to rental income due to sale of 5 properties duing the year 2024 (DKK 15.0 million). • The Group's overhead cost were DKK 31.6 million in 2024 against DKK 28.1 million in 2023. The increase of DKK 3.5 million is caused by cost incurred on services. • Net financial items amount to DKK –72.9 million in 2024 against DKK -52.4 million in 2023, representing a negative change of DKK 20.5 million driven by an increase in the interest costs, and reflects the fully drawn development financing for Pulse project, which is now completed and fully operational. The Net Result for 2024 is DKK 6.9 million, which is an increase compared to the Net Result in 2023 of DKK -24.2 million in 2023 to DKK 6.9 million. The changes are from the following effects: • Fair value adjustment in 2024 with a net of DKK 22.2 million against DKK -73.8 million in 2023. In both periods an evaluation of the investment properties have been made adjusting the yield and the estimated profit and loss for the entire portfolio of Park Street A/S and subsidiaries. The Group's equity as at 31 December 2024 was DKK 963 million, compared to DKK 1,060 million as at 31 December 2023. The decline in equity is due to repurchase of own shares during the year. Property acquisitions and sales In 2024, Park Street sold the following properties and plots:  Hejrevej 26-28, Ørnevej 33-35, 26, Hejrevej, København  Hejrevej 30, 30, Hejrevej, København  Ørnevej 18, Svanevej 12, 18, Ørnevej, København  Birkemosevej 9 B A, Kolding  Helligkorsgade 1, Naverstræde 3, Kolding Park Street/ Management's review 3 Organisation Since April of 2024 when the Annual General Meeting of the Company took place the Board of Directors of Park Street consists of Pradeep Pat- tem, Ohene Aku Kwapong, Anita Nassar, Medha Pattem and Claes Peter Rading. The number of employees of Park Street group company were 18 by the end of 2024, against 22 at the start of the year. Subsequent events after 31 December 2024 Park Street has sold one assets Stagehovej to a total amount of DKK 28 Million. From the balance sheet date until the date of presentation of this Annual Report no additional events have occurred other than the above men- tioned which significantly affect the assessment of the annual report. Park Street/ Management's review 4 Park Street – Its journey & 2025 plans Park Street (PSAM group) was setup in 2014 to identify and invest in Real Estate opportunities - in particular, assets embedded in capital structure challenges or with value-add potential. Park Street invested across Europe (UK, Germany, Norway, Spain etc.) before the acquisition of Nordicom portfolio in Denmark in 2017. The portfolio of assets are now concentrated in Denmark with assets across sectors: Residential, Offices, Hotels and Retail, in the form of Park Street A/S Our strategy in 2025 will continue develop Pulse Living (Young professional living sector) strategy and final- ise development plans for Pulse Tastrup Park Street will further improve the operational efficiencies across its core holdings of Hotels and invest in leasing capex in select Value-Add assets. We will further seek to raise external JV capital stable regional income assets portfolio and dispose other non-core assets. Park Street has completed the launch of Pulse Nørrebro with fully letting out commercial and studio units and will seek refinance the development loans with long term stable financing across Pulse assets. Park Street/ Management's review 5 Park Street – Our path We at Park Street share an ambition defined by… Park Street/ Management's review 6 Park Street/ Management's review 7 As we shape our way, the path itself is fulled with several obstacles and inefficiencies - some in our control and some shaped by the nature of industry. Our attempts to improve things at times lead to disturbing and breaking things which work well - we are learning from it and working towards better outcomes for our tenants, buildings, partners and team members. The path so far has made more aware of Janteloven. Park Street/ Management's review 8 Park Street – Way forward • Park Street portfolio in Denmark 1. Pulse Portfolio • 5 properties- 3 Pulse Living (2 fully occupied and 1 development project) and 2 Pulse Hotels • 60% of current portfolio Equity and 50% of Net operating income (NOI) , Low current Loan to Value (LTV) (<55%) 2. Danish Regional Income Portfolio • 15 properties – 70% retail & 30% office • Low current LTV (<55%) with long term debt (fixed until 2027) - 17% of current portfolio Equity & 28% of NOI 3. Value Add Portfolio (Stabiles fully by 2027) • 5 properties, LTV (70%) • 17% of NOI & 13% of current portfolio Equity with potential to nearly double the current NOI over next 3 years 4. Design Assets • 2 properties and 1 land bank (combined 4 adjacent properties) targeted for selective development over long term • Low LTV (15%), 9% of current portfolio Equity • Development will only be done with asset specific capital with limited investment currently for design work ^ some co-located independent properties are combined as a single assets All financial and property NOI numbers are management estimates and not Audited Financials Park Street/ Management's review 9 Park Street/ Management's review 10 Pulse Living Pulse N: Copenhagen NV Pulse O: Copenhagen Ø Pulse T: Taastrup (Project) • Pulse Living is focused in shaping a vibrant living environment for young professionals' platform. +400 beds • A scalable design, development and community development platform is shaped and tested at Pulse Nørrebro and Øster- bro. • Assets in the sector a both immense interest and fit for long term institutional capital. • Pulse Living will aim to scale up the platform with stable long-term capital with its focus on further developing a tech driven platform and creating vibrant connected communities. 2023: First Pulse N resident gathering Park Street/ Management's review 11 Pulse Living: Pulse N Pulse Living: Pulse O Park Street/ Management's review 12 Park Street/ Management's review 13 Pulse Living: Pulse T Park Street/ Management's review 14 Pulse Hotels • Hotel Prindsen is an exceptional property with several centuries of history as a hotel. 2025 Budget NOI DKK 16 mln. • Park Street will seek to reposition the hotel as a luxury destination in the long run once the current lease concludes in 2030. • Ballerup hotel is a high performing hotel with a stable management contract. • Park Street has no plans for additional capital to this segment this year. Park Street/ Management's review 15 Danish Regional Income Portfolio (DRIP) Park Street/ Management's review 16 43% 26% 22% 3% 2% 2% Office - Government Office - Healthcare Office - IT Office - Construction Office - Merchandise Office - Trader Office - NGO • Portfolio is geared for generating stable 8% to 10% dividend yield with long term fixed new financing. • The portfolio has average current financing of over 10years with fixed rates until 2027. • During 2025 and 2026 Park Street would intend to reduce its holdings with external JV capital • Appointed NewSec as advisors to explore capital / JV partners 42% 15% 13% 9% 8% 6% 3% 2% 2% Retail - Supermarket Retail - Auto Retail - Café/Restaurant Retail - Clothing Retail - Fitness Retail - Consumer Good Retail - Warehouse Retail - Entertainment Retail - Healthcare Retail - Salon Park Street/ Management's review 17 Value Add Properties Park Street/ Management's review 18 • Park Street had acquired assets in Glostrup and Odense with over 80% vacancy and has been working steadily to in- crease occupancy • A prime example of value creation to date is conversion of first floor fully vacant shopping center to a highly successful HQ office for an Engineering company • Capex of 2000 to 3000 per SQM for some of the vacant areas required for transformation • Target for 6m to 8m of new leases per year planned for 3 years with DKK 10m to 15m Capex per year. • For 2025, we are in advanced stages is new lease of over 4500 sqm including signed LOI for IWG/Regus in Odense Park Street/ Management's review 19 Design Portfolio Park Street/ Management's review 20 Projects • Park Street owns project assets in Vejle and Allerød where design work is being done for long term development plans. It further owns land and storage usage properties in Naestved. • In discussions with Vejle Kommune regarding the development of retail and store into into a sustainable mixed-use devel- opment of 38,000 sqm. The master plan is expected to be in place within the next 1–2 years • In project design phase to transform the Allerod first-floor office spaces into 16 residential units • All land and project assets are with minimal debt currently and any new investment will be done with a standalone capital and financing with partners. Park Street/ Management's review 21 Financial Highlights Key figures Amounts in DKK 1000s 2024 2023 2022 2021 2020 Income statement Rental income 131,697 145,503 136,348 124,328 126,903 Total net sales 151,116 166,142 153,281 158,264 172,669 Gross profit 107,288 121,915 104,675 117,418 124,979 Result from primary operations 24,107 -34,917 74,499 187,225 187,929 Financial items -72,888 -52,424 -29,932 -25,881 -25,757 Earnings before value adjustments and tax (EBVAT) 2,753 41,369 42,898 56,866 69,983 Result for the period 6,993 -24,245 54,980 145,459 145,491 Statement of financial position Investment properties 2,248,267 2,436,714 2,521,581 2,615,015 2,462,633 Investments in property, plant and equipment 11,528 65,284 -15,061 25,803 36,991 Balance sheet total 2,500,001 2,716,690 2,807,465 3,020,749 2,723,067 Interest-bearing debt 1,246,161 1,335,662 1,402,935 1,509,471 1,405,024 Total equity 962,479 1,059,959 1,087,024 1,217,038 1,071,946 Statement of cash flows Cash flows from operations -16,458 50,742 40,219 57,999 61,966 Cash flows from investment 278,418 208 116,508 -17,777 137,919 Cash flows from financing -215,129 -47,274 -290,015 104,447 -238,341 Other disclosures Non-current liabilities as a proportion of total liabilities (%) 60.6 95.2 95.6 95.7 94.1 Share capital 57,175 57,175 57,175 67,513 67,513 Share price, end of period (DKK) 12.00 7.70 13.90 14.10 10.00 Share price change in points 4.30 -6.20 -0.20 4.10 3.35 Dividend per share 0.0 0.0 0.0 0.0 0.0 Number of employees in the Group (average) 18 22 27 26 26 Financial ratios 2024 2023 2022 2021 2020 Return on property portfolio (% p.a.) 4.3 4.6 3.9 4.3 4.7 Average loan rate (% p.a.) 5.5 3.8 2.1 1.8 1.8 Return margin on property portfolio (% p.a.) -1.2 0.8 1.8 2.5 2.9 Return on equity (%) 0.7 -2.3 5.1 11.9 13.6 Equity ratio (%) 38.5 39.0 38.7 40.3 39.4 Net asset value per share, end of period (DKK) 16.8 18.5 19.0 18.0 15.9 Earnings per share (avg. Number of shares) (DKK) 0.1 -0.4 1.1 2.2 2.2 Dividend yield (%) 0.0 0.0 0.0 0.0 0.0 Share Price/net asset value, end of period 0.4 0.4 0.3 0.4 0.4 Cash flow per share (DKK) -0.4 0.9 0.7 0.9 0.9 The above financial ratios are calculated in accordance with the definitions in Note 31 to the consolidated financial statements in the Annual report for 2024. Park Street/ Management's review 22 Financial Results 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 2024 is composed of all the Group's 38 properties, excluding  1 property 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 2024 2023 Zealand 1,718 76% 1,902 78% Fyn 240 11% 220 9% Jutland 290 13% 314 13% Total 2.248 2.436 The annual rent per square meter (in DKK) for the year 2024 in the aforementioned regions is, Zealand – 1,545; Fyn – 814, Jutland – 866 and the renalt income (in DKK millions) for the year 2024 in the aforementioned regions is, Zealand – 129 ; Fyn – 9, Jutland – 12. Park Street/ Management's review 23 The breakdown by activity based the property value is split as follows : Amount in Million DKK 2024 2023 Residential 896 40% 878 36% Residential Project 175 8% 175 7% Office 319 14% 525 22% Retail 728 32% 729 30% Hotel 100 4% 97 4% Storage 30 1% 32 1% Total 2.248 2.436 The following table shows the calculated average vacancy divided by property types: Average vacancy in % 2024 2023 Retail 20.83 28.64 Office 24.49 18.51 Residential 4.39 8.88 Storage 37.54 41.92 Hotel 0.00 0.00 Total 20.55 16.34 The following table shows the calculated average gross rent obtained divided by property types on properties held at 31 December 2024: Avg. gross rent per sqm p.a. (DKK) 2024 2023 Retail 1,420 1,437 Office 847 780 Residential 3,104 2,880 Storage 451 443 Hotel 2,830 2,817 Total 1,730 1,672 Park Street/ Management's review 24 Consolidated Financial Review PROFIT AND LOSS Park Street's Net Result is DKK 6.9 million for 2024 (2023: DKK -24.2 million), equivalent to a change of DKK 31.2 million in relation to 2023. As mentioned above the EBVAT in 2024 is DKK 2.8 million (2023: DKK 41.4 million), which is DKK 38.6 million lower than the one achieved in 2023. The reduction is primarily driven by an increase in the financial expenses (DKK –20.5 million), due to an increase in the finance cost as expense as in 2023 it was capitalised and primarily driven by the sale of properties, intentional vacancy to initiate residential projects and a delay on filling vacancies. The Net Result for the period is DKK 6.9 million (2023: DKK -24.2 million) is due to fair value adjustment in 2024 with a net of DKK 22.2 million while the fair value adjustment in 2023 had a net effect of DKK -73.8 million. To finalize, the effect of the Tax on profit in 2024 is DKK -17.1 million (2023: DKK 10.7 million) due to a significant changes in fair value adjustments. BALANCE SHEET Park Street's Net Assets as at 31 December 2024 were DKK 2,500.0 million, a decrease of DKK 216.7 million on the balance sheet total at 31 December 2023. The decline is mainly due to sale of investment properties leading to a reduction of DKK 188.5 million and sale of one domicile property 68.9 Million, an increase in current assets of DKK 40.9 million (from DKK 80.6 million at 31 December 2023 to DKK 121.6 million at 31 December 2024) due to proceeds from sale of investment properties, financing and re-financing activities. Non-current assets were DKK 2,378.4 million at 31 December 2024 (2023: DKK 2,636.1 million). The Group's equity as at 31 December 2024 was DKK 963 million, compared to DKK 1,060 million as at 31 December 2023. The decline in the Group's equity is mainly due to the repurchase of own shares. Liabilities to credit institutions were DKK 1,246.2 million as at 31 December 2024 (31 December 2023: DKK 1,355.7 million), consisting of DKK 682.0 million (55%) for non-current liabilities and DKK 563.8 million (45%) for current liabilities. In 2024, financial liabilities were decreased by DKK 110.7 million driven by decrease in debt and amortization repayments to credit institutions. CASH FLOWS FOR 2024 Cash flows from operating activities for 2024 were DKK -16.5 million (2023: DKK 50.7 million), equivalent to an decrease of DKK 67.2 million in relation to the same period last year. The increase is primarily due to increase in operating capital, finance expenses and operating profit. Cash flows from investing activities for 2024 were DKK 278.4 million (2023: DKK 208 thousand). Cash flows from investing activities increased compared to the previous year due to sale of assets in 2024 as compared to 2023 (2024: DKK 290.0 million, 2023: DKK 76.4 million). There was lesser improvements made to investment properties of DKK –11.5 million (2023: DKK –78.2 million). Cash flows from financing activities for 2024 were DKK -215.1 million (2023: DKK –47.3 million) mainly driven by the repurchase of shares of DKK 104.4 million in year 2024 and repayments to credit institutions of DKK 110.7 million. The Group's liquid assets amounted to DKK 85.0 million at 31 December 2024 against DKK 38.2 million as at 31 December 2023. 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 property,  Impairment test on domicile property,  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. Park Street/ Management's review 25 Parent company Park Street A/S For the parent company Park Street A/S, profit before tax amounts to DKK 24.1 million in 2024 (2023: DKK -38.5 million). The parent company's profit and loss before tax is affected by an adjustment in fair value of DKK 4.7 million (2023: DKK -105.7 million). Parent company equity as of 31 December 2024 amounts to DKK 963 Million (31 December 2023: DKK 1,060 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 mini- mizing the Group's financial risk exposure. It is part of the Group's policy not to conduct speculative transactions by active use of financial instru- ments, 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 26. Other financial risks Park Street financial risks are described in the consolidated financial statements, Note 26 and includes a description of the following compo- nents:  Liquidity risk • Refinancing risk • Liquidity risk management  Interest rate risk.  Credit risk.  Capital management. Park Street is in active and advanced discussions for refinancing the current loan with a mortgage institution. The mortgage valuations have initial draft terms are agreed in principle but await credit confirmation and approval on the lender side. There remains risk until the terms are finalised with a credit approval, hence the management had discussions with current lenders who remain positive for an extension of loan such their credit approvals, and also noted that there are no specific restrictions they see with their fund for such an extension. Overall the lending environment is positive for alternative lenders for full stable assets and the management is confident of alternative financing in the events of delay in getting mort- gage financing concluded. Refer to the information in Note 26. 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. Park Street/ Management's review 26 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 Park 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 as per The Danish Business Lease Act (Erhvervslejeloven) 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 re- quirements 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 nec- essary, 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 situa- tion 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 suppli- ers 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. Park Street/ Management's review 27 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 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 condi- tions and anti-corruption due to our social responsibility in each of the business activities that are performed. CSR is reflected in the way we man- age 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 fol- lowing all applicable building regulations with the the goal of reducing energy consumptions. In 2024, the Group invested over DKK 12 million in the maintenance and modernization of the existing properties. Park Street A/S regularly monitors the Energy Ratings of its properties with external reviews per regulation. Such review proactively seeks to outline the various initiatives which could reduce the carbon emissions. Park Street intends to annually take steady steps towards taking energy conservation steps including but not limited to changing old light bulbs, improve ventilation for heat conservation etc. Furthermore Park Street A/S has taken several initiatives to re- tain various elements from existing buildings for recycling into new projects or maintenance works. Close to 100 doors have been re- tained from Pulse N project during demolition phase which could be used for future projects.” Increasing energy prices and suboptimal enregy performances of the buildings will have a direct impact on the cost borne by our current and prospective tenants, this could im- pact both the ability to retain the current tenants, their ability to pay the required cost and also the ability to procure new tenants.  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. Continuous engage- ment of the team with objectives of the company, transparent environment encouraging team work has been key pillars for developing the employees supplemented by external leadership development coaching. No breach of these policies have been identified in 2024 which we also expect in 2025. The business model requires certain functions of managing buildings to be outsourced to external ven- dors, there is a risk that the vendor might not have stringent standard to meet requisite human right legislation to the detriment of our own goals. Park Street/ Management's review 28  Human Resouce: Denmark, our main jurisdiction of operations set a high and positive bar for the quality of work environment, work safety and overall work conditions. It also has high demand for talent in our industry and there is a risk of not attracting the right required talent if the work environment and the condition do not meet the high standards.  Anti-corruption and bribery: The Group is has invested to develop systems for transparently reviewing invoices and implemented a ven- dor 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 connec- tion 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. The IT systems for invoice payments have been further enhanced to minimise manual invoices. No corruption has been detected in 2024 an we also expect in 2025. The zero-tolerance policy requirement within the company is exposed to the external vendor’s own stringent implantation of similar approach and could expose the company to unwarranted actions outside company’s control.  Data ethics: The Park Street Group does not have a formalized policy on data ethics. Park Street only processes data for business pur- poses. 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 website http://www.psnas.com/index.php/corporate-governance-statement/ Statutory report on diversity in management Since the number of employees in the Group is less than 50, Park Street is not required to develop policies or targetsetting to increase the pro- portsion of under-represented gender in the Group's other management levels. Group’s overall policy is to employ or promote the best suitable candidates no matter of gender. Park Street A/S had fewer than 50 employees from 1 January to 31 December 2024, and is therefore not obligated to establish and report on a policy or targetsetting for increasing the underrepresented gender in other management layers. The company's board currently consists of 5 members. 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 ccutive 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 viola- tions 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. Park Street/ Management's review 29 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 begin- ning, number of shares Share buy in the year, number of shares Shareholding at the end of the year Independence Sex Board of Directors Anita Nassar() 2016 2024 63 0 0 0 Independent F Pradeep Pattem ()() 2016 2024 48 6,722,484 0 6,722,484 1) Not Independent M Ohene Kwapong 2016 2024 64 0 0 0 Independent M Medha Pattem 2023 2024 47 0 0 0 Not Independent F Claes Peter Rading() 2021 2024 62 0 0 0 Independent M () Anita Nassar holds the position of chairman of the Board. Claes Peter Rading is the chairman of the Audit Committee. () 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 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 pro- mote 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.psnas.com . The board members receive a fixed monthly fee. The Chairman receives DKK 250,000 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 2024 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. Park Street/ Management's review 30 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 estab- lishment 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 Man- agement 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 Con- sultant 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. Park Street/ Management's review 31 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 Medha Pattem (UK citizen) Medha Pattem is a graduate engineer from the Osmania University and has MS from the Rensselaer Polytechnic Institute, Troy, NY. After her stint with Goldman Sachs prime brokerage in NY and London, she embarked on an entrepreneurial journey to lead European expansion of Thermopads Ltd and shaping it as one of Europe’s largest electric underfloor heating mats supplier. Director positions: Sthenos International Ltd. Park Street Advisors Ltd. Park Street Asset Management Ltd. Floorstax Ltd. Swindon Ground Lease Ltd. Xplore Markets Ltd. India Growth Capital Ltd. Thermopads UK Ltd. Park Street/ Management's review 32 Shareholder structure Shareholders above 5% In percent Park Street Asset Management Ltd. 71.79% The number of registered shareholders amounts as of 31 December 2024 to 723 pcs. (31 December 2023: 789 pcs.). The registered shareholders represent per 31 December 2024 99% of the share capital (31 December 2023: 99%). All Park Street A/S Class A shares are listed on Nasdaq Copenhagen and are part of the Small Cap segment. The share price ended 31 Decem- ber 2024 at price 12.00 (31 December 2023: 7.70), which is a increase of 4.30 points in relation to the share price per share as of 31 December 2023. 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 21 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 2024. 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. Share capital DKK 57,175,572 Nominal share amount DKK 1 Number of shares 57,175,572 shares Share Classes DKK 12,827,637 A-shares Listed 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 Park Street/ Management's review 33 Stock exchange announcements made in 2025 & 2024 Date Title 28-03-2025 Park Street 2025 Strategy 03-09-2024 Park Street changes in treasury shares 2024 03-09-2024 Park Street major shareholding announcement 2024 30-08-2024 Park Street Interim report half year 2024 30-08-2024 Announcement Interim report 29-08-2024 Park Street Roll back of the share capital reduction 21-08-2024 Company announcement – inside information 01-07-2024 Park Street A/S – Share buyback program 2024 26-06-2024 Park Street A/S – Share buyback program 2024 18-06-2024 Notification of Major Shareholding 18-06-2024 Notification of managers and closely related parties transactions 18-06-2024 Park Street- Voting rights and capital resulting from the capital reduction 17-06-2024 Park Street A/S – Share buyback program 2024 06-06-2024 Articles of Association (UK) (post capital reduction) 06-06-2024 Articles of Association (DK) (post capital reduction) 06-06-2024 Park Street A/S – Share buyback program 2024 27-05-2024 Park Street A/S – Share buyback program 2024 15-05-2024 Park Street A/S – Share buyback program 2024 06-05-2024 Park Street A/S – Share buyback program 2024 26-04-2024 Park Street A/S announces results of annual general meeting 2024 23-04-2024 Park Street A/S – Share buyback program 2024 12-04-2024 Park Street A/S – Share buyback program 2024 04-04-2024 Park Street A/S – Annual Report 2023 04-04-2024 Park Street A/S – Publishes Annual Report 2023 03-04-2024 Park Street A/S – Share buyback program 2024 20-03-2024 Park Street A/S – Share buyback program 2024 11-03-2024 Park Street A/S – Share buyback program 2024 05-03-2024 Park Street A/S : 2024 Strategy 28-02-2024 Park Street A/S – Share buyback program 2024 Financial Calendar 04-04-2025 Annual Report 2024 28-04-2025 Annual General Meeting More info Further information on company and shareholder matters and the Group's activities can be found on Park Street's website http://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 Park Street/ Management's review 34 The Group structure at 31 December 2024 The Group structure at 31 December 2024 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 11 of the parent company's financial statements. All subsidiaries are fully consolidated in the consol- idated financial statements of Park Street A/S. Park Street/ Statements 35 Statement by Board of Directors and Management The Board of Directors and Management have today considered and adopted the Annual Report of Park Street A/s for the financial year 1 January – 31 December 2024. The Consolidated Financial Statements and the Parent Company Financial Statements have been prepared in accordance with IFRS Accounting Standardsas adopted by the EU and further requirements in the Danish Financial Statements Act. Management’s Review has been prepared in accordance with the Danish Financial Statements Act. In our opinion, the Consolidated Financial Statements and the Parent Company Financial Statements give a true and fair view of the financial position at 31 December 2024 of the Group and the Parent Company and of the results of the Group and Parent Company operations and cash flows for 2024. In our opinion, Management’s Review includes a fair view of the development in the operations and financial circumstances of the Group and the Parent Company, of the results for the year and of the financial position of the Group and the Parent Company as well as a description of the most significant risks and elements of uncertainty, which the Group and the Parent Company are facing. In our opinion, the annual report of Park Street A/S for the financial year 1 January to 31 December 2024 with the file name 213800VGJC18MRKMZC33-2024-12-31-en.zip is prepared, in all material respects, in compliance with the ESEF Regulation. We recommend that the Annual Report be adopted at the Annual General Meeting. Copenhagen, 4 April 2025 Management Pradeep Pattem CEO Board of Directors Anita Nassar Pradeep Pattem Chairman Ohene Aku Kwapong Claes Peter Rading Medha Pattem Park Street/ Independent Auditor’s Report 36 Independent Auditor’s Reports 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 2024 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 2024 in accord- ance with IFRS Accounting Standards as adopted by the EU and further requirements in the Danish Financial State- ments 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 2024 comprise income statement and statement of comprehensive income, balance sheet, statement of equity, statement of cash flow and notes, including material accounting policy information 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 Audi- tor’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’ Interna- tional 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 reap- pointed annually by shareholder resolution for a total period of uninterrupted engagement of 8 years including the finan- cial year 2024. Park Street/ Independent Auditor’s Report 37 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 2024.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 domicile property The Group owns a portfolio of investment properties that are valued at fair value and one domicile property that are revalued to fair value at 31 December 2024. Valuation of investment properties and domi- cile property at fair value contains significant estimates based on significant assumptions, where even minor changes in the assumptions can have a significant effect on the fair value of the properties. Management has used the capitalisation method to determine the fair value. The model is described in note 1.2, with market rent and yield being the significant assumptions. Management has obtained valuations from an external valuer to support the fair value deter- mined by Management for all significant prop- erties; including the assumptions used, with market rent and yield being the significant assumptions. We focused on this area as valuation of in- vestment properties and domicile property at fair value is based on significant estimates which are subjective and have a high degree of estimation uncertainty. Refer to note 1.2, 9, 14 and 15. We performed risk assessment procedures with the purpose of achieving an understanding of procedures and relevant controls relating to valuation of investment properties and domicile property. In respect of controls, we assessed whether these were designed and implemented effectively to address the risk of material misstatement. We assessed the method used by management to measure the fair value of investment properties and domicile property. We verified on a sample basis the accuracy of data used. We assessed and challenged the assumptions applied, us- ing our knowledge of the real estate market and professional scepticism. We assessed the competencies and independence of exter- nal valuer used by Management. We compared the fair val- ues determined by the Management with the external valu- er’s assessments. Furthermore, we assessed the appropriateness of disclo- sures. Park Street/ Independent Auditor’s Report 38 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 do- ing 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 Fi- nancial Statements and the Parent Company Financial Statements and has been prepared in accordance with the re- quirements 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 IFRS Accounting Standards as adopted by the EU and fur- ther 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. 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. Reason- able 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. Misstate- ments 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 profes- sional 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 ap- propriate 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, misrepresen- tations, or the override of internal control. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appro- priate 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 signifi- Park Street/ Independent Auditor’s Report 39 cant 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. • Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business units within the group as a basis for forming an opinion on the Consolidated Financial Statements and the Parent Company Financial Statements. We are responsible for the direction, supervision and review of the audit work performed for purposes of the group audit. We remain solely responsible for our audit opin- ion. 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 require- ments 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 2024 with the filename 213800VGJC18MRKMZC33-2024-12-31-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 re- quirements related to the preparation of the annual report in XHTML format and iXBRL tagging of the Consolidated Fi- nancial Statements including notes. 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 an- choring 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 assess- Park Street/ Independent Auditor’s Report 40 ment 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 pro- cess; • 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 2024 with the file name 213800VGJC18MRKMZC33-2024-12-31-en.zip is prepared, in all material respects, in compliance with the ESEF Regulation. Hellerup, 4 April 2025 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 41 Park Street/ Independent Auditor’s Report 42 2024 CONSOLIDATED FINANCIAL STATEMENTS Park Street | CONSOLIDATED Financial Statements 43 Income statement Note Amounts in DKK 1000s 2024 2023 3 Net sales 151,116 166,142 4 Operating expenses -43,828 -44,227 Gross profit 107,288 121,915 5 Employee benefit expenses -13,869 -15,528 Other expenses -16,378 -10,039 7 Depreciation, amortisation and impairment -1,401 -2,556 Operating profit (EBIT) 75,640 93,792 8 Financial income 476 0 8 Financial expenses -73,364 -52,424 Earnings before value adjustments (EBVAT) 2,753 41,369 9 Adjustment to fair value, net 22,210 -73,750 10 Losses realised on the sale of investment properties -855 -2,535 Result before tax 24,107 -34,917 11 Tax on profit for the period -17,114 10,671 Result for the period 6,993 -24,245 12 Earnings per share, end of period 0.16 -0.44 12 Diluted earnings per share, end of period 0.16 -0.44 Park Street | CONSOLIDATED Financial Statements 44 Statement of comprehensive income Note Amounts in DKK 1000s 2024 2023 Profit for the period 6,993 -24,245 Other comprehensive income: Items that cannot be reclassified to the income statement: Fair value adjustment of domicile properties -95 -3,615 Tax on fair value adjustment of domicile properties 21 795 Other comprehensive income after tax -74 -2,820 Comprehensive income for the period 6,920 -27,065 Park Street | CONSOLIDATED Financial Statements 45 Statement of financial position Note Amounts in DKK 1000s 2024 2023 ASSETS Non-current assets Intangible assets 13 Leasehold improvements 346 439 346 439 Domiciles, Investment property and Property, plant and equipment 14 Domiciles 129,300 198,281 15 Investment properties 2,248,267 2,436,719 16 Machinery and equipment 357 458 2,377,924 2,635,458 Financial assets Deposits 161 161 161 161 Total non-current assets 2,378,431 2,636,058 Current assets 17 Current financial assets at amortised cost 9,083 14,114 18 Trade and other current receivables 24,967 24,930 Income tax receivable 0 2,315 Prepaid expenses and accrued income 2,482 1,065 19 Cash and cash equivalents 85,038 38,207 Total current assets 121,570 80,631 Total assets 2,500,001 2,716,690 Equity Share capital 57,175 57,175 Revaluation reserve 37,279 55,575 Share Premium 289,260 289,260 Accumulated profit 578,765 657,948 20,21 Total equity 962,479 1,059,959 LIABILITIES Non-current liabilities 22 Deferred tax 239,605 233,847 23 Borrowings 682,293 1,332,708 Deposits 12,547 10,185 934,444 1,576,741 Current liabilities 24 Provisions 400 400 23 Current borrowings 563,868 22,953 Trade and other payables 7,967 18,557 Income tax payable 2,077 0 Deposits 24,385 31,664 Other liabilities 4,380 6,417 603,078 79,991 Total liabilities 1,537,522 1,656,732 Total equity and liabilities 2,500,001 2,716,690 Park Street | CONSOLIDATED Financial Statements 46 Statement of equity Amounts in DKK 1000s Share capi- tal Revaluation reserve Accumulated profit Share Pre- mium Equity Total Statement of equity for 2024: Equity as at 1 January 2024 57,175 55,575 657,948 289,260 1,059,959 Comprehensive income for the period Profit for the period 0 0 6,993 0 6,993 Fair value adjustment of domicile 0 -95 0 0 -95 Tax on other comprehensive income 0 21 0 0 21 Other comprehensive income during the financial year 0 -74 0 0 -74 Comprehensive income for the period 0 -74 6,993 0 6,920 Transactions with owners Repurchase own shares 0 0 -104,400 0 -104,400 Capital reduction 0 0 0 0 0 Total transactions with owners 0 0 -104,400 0 -104,400 Other adjustments Revaluation reserve transfer for domicile sold property Increase/decrease through transfer of depreciation on revalued value of domicile property 0 0 -17,523 -700 17,523 700 0 0 0 0 Total other adjustments 0 -18,223 18,223 0 0 Equity as at 31 December 2024 57,175 37,279 578,765 289,260 962,479 Statement of equity for 2023: Equity as at 1 January 2023 57,175 59,961 680,628 289,260 1,087,024 Comprehensive income for the period Profit for the period 0 0 -24,245 0 -24,245 Fair value adjustment of domicile 0 -3,615 0 0 -3,615 Tax on other comprehensive income 0 795 0 0 795 Other comprehensive income during the financial year 0 -2,820 0 0 -2,820 Comprehensive income for the period 0 -2,820 -24,245 0 -27,065 Transactions with owners Purchase own shares 0 0 0 0 0 Capital reduction 0 0 0 0 0 Total transactions with owners 0 0 0 0 0 Other adjustments Increase/decrease through transfer of depreciation on revalued value of domicile property 0 -1,566 1,566 0 0 Total other adjustments 0 -1,566 1,566 0 0 Equity as at 31 December 2023 57,175 55,575 657,948 289,260 1,059,959 Park Street | CONSOLIDATED Financial Statements 47 Statement of cash flows Note Amounts in DKK 1000s 2024 2023 Operating profit (EBIT) 75,640 93,792 Reversal of depreciations and amortisations 1,401 2,556 Change in operating capital -13,463 6,817 Cash flows concerning primary operations 63,578 103,166 Financial expenses paid -73,364 -52,424 Financial income received 476 0 Paid corporate tax -7,148 0 Total cash flow from operating activities -16,458 50,742 Cash flow from investing activities Improvements to investment properties -11,528 -78,221 Sales of investment and domicile properties 290,250 76,400 Purchase of other property, plant and equipment -304 0 Sale of associates 0 2,029 Total cash flow from investing activities 278,418 208 Cash flow from financing activities Repurchase own shares -104,400 0 Proceeds from assumption of liabilities to credit institutions 0 42,721 Repayment of other liabilities to credit institutions -110,729 -89,995 Total cash flow from financing activities -215,129 -47,274 Total cash flow for the period 46,831 3,676 Liquid assets as at 1 January 38,207 34,531 Liquid assets at the end of the period 85,038 38,207 Liquid assets at the end of the period Cash and short term deposits 85,038 38,207 Liquid assets at the end of the period 85,038 38,207 48 Summary Note 1 Material accounting policy information 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 Mortgages and instruments of debt Note 18 Receivables Note 19 Cash and cash equivalents Note 20 Share capital Note 21 Own shares Note 22 Deferred taxes Note 23 Borrowings Note 24 Provisions for liabilities Note 25 Contingent assets and liabilities Note 26 Financial risks Note 27 Non-current operating items, etc. Note 28 Change in operating capital Note 29 Disclosure of related parties Note 30 Subsequent events Note 31 Accounting policies 49 Notes Note 1 – Material accounting policy information 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 31 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. The principles and methods for determining the estimated fair value of the properties in this category is based on the capitalisation method. The deter- mination 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. Only when stable market rent information is not available, the Group uses valuation methods to calculate the fair value, such as recent transacted prices or identified bids to purchase or specific bids for similar assets or use discounted cash flow projections with market yields. 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 transac- tion 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 im- pacted 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 or change in the market in general. The fair value of a property is calculated by the following process: 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.) 50 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 sub- scriptions, 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) 2024 2023 Retail 1,420 1,437 Office 847 780 Residential 3,104 2,880 Storage 451 443 Hotel 2,830 2,817 Total 1,730 1,672 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. 51 Change in market rent Change in market value per sqm per year (DKK) (Million DKK) 2024 2023 200 403 503 100 202 252 50 101 126 -50 -101 -126 -100 -202 -252 -200 -403 -503 The table shows that an increase in the market price of, for example 50 DKK per sqm per year will increase the completed investment proper- ties' fair value by DKK 101 million for 2024 (31 December 2023: DKK 126 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 (calculated as estimated vacancy divided by the market rent in the terminal): Change in Vacancy Change in market value (%-point) (Million DKK) 2024 2023 10% -2.6 -5 5% -1.3 -3 -2% 0.5 1 -5% 1.3 3 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 -1.3 Million (31 December 2023: DKK -3 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. 2024 2023 Interval Weighted Avg Interval Weighted Avg Retail 6.95 – 14.00 8.23 6.50 – 17.17 8.17 Office 7.50 – 9.00 7.88 6.25 – 16.91 7.00 Storage 10.00 – 10.22 10.10 9.50 – 10.22 9.83 Residential 4.48 – 11.50 5.00 4.25– 13.53 4.87 Hotel 5.75 – 7.77 6.63 6.75 – 7.50 7.18 Total 4.48 – 14.00 6.59 4.25 – 17.17 6.52 The table shows that the return requirements for completed investment properties at 31 December 2024 is in the range 4.48% - 14.00% per annum. The corresponding interval at 31 December 2023 amounted to 4.25% - 17.17% 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 31 December 2024 6.25% per annum for the overall portfolio of finished investment proper- ties at 31 December 2023 the corresponding weighted return requirements for the entire portfolio 6.50% per annum. 52 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 Change in market value (Million DKK) (% points) 2024 2023 1.00% -373 -395 0.75% -289 -314 0.50% -199 -226 0.25% -102 -133 -0.25% 119 78-0.50% 246196-0.75% 386 325 -1.00% 540 465 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 - 102 million (31 December 2023: DKK -133 million). The breakdown by activity based the property value is split as follows : Amount in Million DKK 2024 2023 Residential 896 40% 878 36% Residential Project 175 8% 175 7% Office 319 14% 525 22% Retail 728 32% 729 30% Hotel 100 4% 97 4% Storage 30 1% 32 1% Total 2,248 2,436 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, Park Street possesses on 31 December 2024 the following one domicile:  Marbækvej 6, Ballerup (Hotel in Ballerup). When calculating the fair value of the above domicile property, 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 domicile property. The fair value of owner-occupied prop- erties 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 31 December 2024 resulted in a revaluation of the properties’ book value by DKK –0.09 million (31 December 2023: DKK -3.6 million), which is included under "Fair value adjustment of domicile properties" in other comprehensive income. 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 esti- mate 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 be- tween 2024 actual revenue and the stabilized budget revenue. 53 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 2024 2023 Market Rent - % of Revenue 25 28 Return requirement (% p.a.) 5.50 7.50 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 – 12.3 million (31 December 2023: DKK –7.5 million) and DKK +10.4 million (31 December 2023: DKK +9.0 million). Classification of properties Park Street classifies the properties in the following categories:  Domicile (Owner-occupied property)  Investment Properties Reference is made to note 31 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 deferred 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 31 December 2024 the Group has included unused tax losses of DKK 12.5 million (31 December 2023: DKK 28.03 million) all of which is esti- mated to be realized within a three-year period or against deferred tax liabilities. The reduction in unutilized losses in 2024 and 2023 is due to positive tax income. Disclosure of borrowings As stated on Note 23 the value of the Group’s mortgage debt and bank debt is classified as amortized cost. As stated in Note 23 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 as one segment and 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. 54 Note 3 - Net sales Amounts in DKK 1000s 2024 2023 Rental income 131,697 145,503 Of which rental income from: Investment properties 109,408 121,028 Domicile properties 22,289 24,475 Sales of other services 19,41920,639 Total sales of services 151,116 166,142 Interest income, mortgages and instruments of debt 0 0 151,116 166,142 Note 4 - Operating expenses Amounts in DKK 1000s 2024 2023 Operating expenses, investment properties 35,99936,996Operating expenses, other services 7,8297,231 43,828 44,227 Note 5 – Employee benefits expenses Amounts in DKK 1000s 2024 2023 Salary 13,178 14,548 Contribution-based pensions () 356 509 Other social security costs 26 80 Other staff costs 309 390 13,869 15,527 Average number of employees 18 22 () The Group has only defined contribution plans. For defined contribution plans, the employer undertakes to pay a defined contribution to a pen- sion 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. Disclosure of information about key management personnel (Pradeep Pattem) comprises the following: Salary 2,760 2,760 Contribution-based pensions 0 0 Bonus 0 0 2,760 2,760 55 Disclosure of cash-based payment arrangements: Amounts in DKK 1000s 2024 2023 Disclosure of fees to Board members Pradeep Pattem (CEO) 100 100 Ohene Kwapong (Chairman of the Audit Committee) 175 175 Anita Nassar (Chairman of the Board) 250 250 Claes Peter Rading (Member of the Audit Committee) 150 150 Medha Pattem (Member of th Board) 1000 775675 Note 6 – Auditor’s fees The auditor appointed in 2024 and 2023 is PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab. Their fees can be specified as follows: Amounts in DKK 1000s 2024 2023 Statutory audit 1,0301,015Tax and VAT advice 278 243 1,308 1,258 Fees for non-audit services delivered by PricewaterhouseCoopers, Statsautoriseret Revisionspartnerselskab, include taxation and VAT services. Note 7 – Depreciation, amortisation and impairment Amounts in DKK 1000s 2024 2023 Amortisation, software 93 632 Depreciation, domicile properties 700 1,566 Depreciation, fixed assets 608359 1,401 2,557 Note 8 – Financial expenses and income Financial expenses Amounts in DKK 1000s 2024 2023 Interest expenses, liabilities to credit institutions measured at amortized cost 72,81152,339 Other interest costs and fees 553 852 Borrowing costs 0 691 73,36453,882 Financial income Amounts in DKK 1000s 2024 2023 Financial income 476 0 4760 56 Note 9 – Adjustments to fair value, net Amounts in DKK 1000s 2024 2023 Fair value adjustment, investment properties 22,210 -73,75022,210 -73,750 Note 10 – Losses realised on the sale of investment properties Amounts in DKK 1000s 2024 2023 Sales, investment properties and domicile 290,250 76,400 The property's carrying amount on sale etc. -291,105 -78,935 -855-2,535 Note 11 – Tax on profit for the year and other comprehensive income Amounts in DKK 1000s 2024 2023 Annual tax can be divided as follows: Current tax on profit of the year 8,896 0 Current tax, previous years 2,455 0 Current tax on domicile -21 -795 Changes in deferred tax liabilities 5,784 -10,671 17,114-11,466 Amounts in DKK 1000s 2024 2023 Tax on profit for the year can be explained as follows: Estimated tax at a tax rate of 22% 5,304 -7,682 Adjustment of previous years taxes 11,810 -3,785 17,114 -11,467 Effective tax rate 70.99% 32.84% Note 12 – Earnings per share Amounts in DKK 1000s 2024 2023 Profit for the period 6,993 -24,245Parent company shareholders' share of profit for the year, used to calculate earnings per share 6,993 -24,245Average number of shares 57,175,572 57,175,572 Average number of own shares -13,794,324 -2,428,031 Average number of shares in circulation 43,381,248 54,747,541 57 Convertible bond's average dilution effect 0 0 Diluted average number of shares in circulation 43,381,248 54,747,541 Earnings per share (average number of shares) (DKK) 0.16 -0.44 Diluted results per. share (average number of shares) (DKK) 0.16 -0.44Earnings per share (DKK), end period 0.16 -0.44 Diluted results per share (DKK), end period 0.16 -0.44 Note 13 – Intangible assets Amounts in DKK 1000s 2024 2023 Cost at 1 of January 6,7616,091 Additions during the year 670670 Cost at 31 December 7,431 6,761Amortization at 1 January -6,322 -5,020 Amortization during the year -763 -1,302 Amortization at 31 December -7,085 -6,322 Balance at 31 December 346 439 Note 14 – Domiciles Amounts in DKK 1000s 2024 2023 Cost at 1 of January 215,823 219,438 Revaluation of value -95 -3,615Sale of property -79,784 0 Cost / Revaluated Value at 31 December 135,944 215,823 -17,542 -15,976 Depreciation and amortization at 1 January Depreciation -700 -1,566 Depreciation of sold property 11,598 Depreciation and amortization at 31 December -6,644 -17,542 Balance at 31 December 129,300198,281 Domicile property consist of a hotel in Ballerup. 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 revalua- tion date (revalued by independent valuer) 31 December 2024, less accumulated depreciation and subsequent impairment losses. There have been revaluations both as of 31 December 2024, and 31 December 2023. Domicile property is pledged as security for loans, mortgage loans and other credit institutions as stated in Note 26. Information on fair value hierar- chy of Domicile property is as follows: 58 Amounts in DKK 1000s Level 1 Level 2 Level 3 Total At 31 December 2024: Domicile property 0 0 129,300 129,300 0 0 129,300 129,300 At 31 December 2023: Domicile property 0 0 198,281198,2810 0 198,281198,281 Classification of domicile properties in level 3 means that determining the fair value of domicile properties mainly based on data that are not ob- servable in the market. During the 2024 and 2023 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 2024 and 2023 but one sold during 2024. If Park Street domicile were measured at the historical cost less accumulated depreciation, the book value would have been the following: Amounts in DKK 1000s 2024 2023 Domicile properties 103,161 112,477 103,161 112,477 Note 15 – Investment properties Amounts in DKK 1000s 2024 2023 Balance at 1 January 2,436,714 2,521,580 Costs incurred for improvements 11,52865,284Adjustment to fair value, net 22,210 -73,750Retirement on sale -222,184 -76,400 Balance at 31 December 2,248,267 2,436,714 Disclosure of fair value measurement Fair value hierarchy for investment: Amounts in DKK 1000s Level 1 Level 2 Level 3 Total At 31 December 2024: Investment properties 0 0 2,248,267 2,248,267 0 0 2,248,267 2,248,267 At 31 December 2023: Investment properties 0 0 2,436,714 2,436,714 0 0 2,436,714 2,436,714 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 2024 and 2023 there has been no transfers between levels of the fair value hierarchy. 59 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 2024 2023 Investment properties 22,210 -73,750 22,210 -73,750 Total fair value adjustments amounts to DKK 22.2 million (2023: DKK -73.8 million) for the properties owned by the Company as of 31 December 2024. 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 26. The Group does not have any agreement which required the Group to build or redevelop any properties neither in 2024 nor 2023. The net income of the investment portfolio is as follows: Amounts in DKK 1000s 2024 2023 Rental income from investment properties 109,408121,028 Operating expenses, investment properties -35,999 -36,996 Net income from investment properties 73,409 84,032 The accumulated minimum lease payments for commercial rentals during the non- cancellable period can be shown as follows: Amounts in DKK 1000s 2024 2023 Before 1 Year 47,105 47,035 Before 2 Years 27,968 12,442 Before 3 years 8,071 7,574 Before 4 years 982 3,028 Before 5 years 5,720 251 After 5 years 6,114 28,783 Total accumulated minimum lease 95,960 99,113 payments Note 16 – Machinery and equipment Total Machinery and Amounts in DKK 1000s IT Equipment Appliances Equipment Cost at 1 of January 2024 3,568 4,589 8,158 Additions during the year 0 304 304Disposals during the year 0 -217 -217 Cost at 31 December 2024 3,568 4,676 8,244 Amortization at 1 January 2024 -3,568 -4,131 -7,699 Amortization during the year 0 -188 -188 Amortization at 31 December 2024 -3,568 -4,319 -7,887 Balance at 31 December 2024 0 357 357 60 Cost at 1 of January 2023 3,5684,5348,102Additions during the year 0 5656Disposals during the year 00 0 Cost at 31 December 2023 3,568 4,589 8,158 Amortization at 1 January 2023 -3,534 -4,061 -7,595 Amortization during the year -35 -70 -105 Amortization at 31 December 2023 -3,569 -4,131 -7,699 Balance at 31 December 2023 0 458 458 Note 17 – Current financial assets at amortised cost The Group has the following mortgage and debt instruments classified as "Financial assets measured at amortized cost": Amounts in DKK 1000s 2024 2023 Financial assets at amortized cost at 1 January 14,114 7,412 Additions for the year 0 6,702 Repayment of the year -5,031 0 Financial assets at amortized cost at 31 December 9,08314,114 Mortgages and debt securities classified as financial instruments in the category "Financial assets at amortized cost" expire in the following periods: Effective interest rate p.a. Balance in DKK 1000 Fair value in DKK 1000 Amounts in DKK 1000s 2024 2023 2024 2023 2024 2023 Value Expire DKK 2025 7.50% 7.50% 9,083 7,412 9,083 7,412 9,0837,412 9,0837,412 The calculated fair value is based on estimates (Level 2 in fair value hierarchy). Note 18 – Trade and other current receivables Amounts in DKK 1000s 2024 2023 Receivable Rental Income 8,132 11,244 Deposited funds in banks 384 3,718 Other Receivables 16,451 9,968 Receivables at 31 December 24,96724,930 * Other receivables include the transactions related to sale of properties 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 5,087 4,961 Net additional provisions 2,400 0 Recognized losses (Write off) 1,012 126 8,4995,087 61 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: 2024 2023 Up to 30 days 1,480 877 Between 30 and 90 days 1,911 3,048 Over 90 days 4,741 7,319 8,132 11,244 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 related 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 19 – Cash and cash equivalents Amounts in DKK 1000s 2024 2023 Deposits in banks for free disposal 84,974 38,143 Petty cash 64 64 85,038 38,207 Note 20 – Share capital Amounts in DKK 1000s 2024 2023 Share capital as on 1 January 57,17557,175 Share capital Decrease 00Share capital as on 31 December 57,175 57,175 The share capital consists of 57,175,572 shares of DKK 1 (31 December 2023: 57,175,572 shares of DKK 1). The shares are fully paid. Class A shares -12,827,637 (Listed) and Class B shares- 44,347,935 B (Not listed), each shares has one voting right. Park Street Asset Management Ltd. owns a total of 71.79% (and a corresponding percentage of the votes) of the total nominal share capital of the Company. The shares are held by Park Street Asset Management Ltd. and Park Street NordAc S.a.r.l., which is 100% owned by Park Street Asset Management Ltd. Park Street A/S hold 24.13% as treausry shares. Note 21 – Treasury shares Number of shares Nominal value Share of share capital (Amount in DKK 1000) 2024 2023 2024 2023 2024 2023 As at 1 January 4,859,970 4,859,970 4,860 4,860 8.50% 8.50% Additions during the year 11,072,293 0 11,072 0 19.37%0.00% Cancelation of shares 15,120,450 0 15,120 0 26.45% 0.00% Roll back of cancelation of shares -15,120,450 0 -15,120 0 -26.45% 0.00% Correction from conversion of class B -2,137,939 0 -2,138 0 -3.74% 0.00% to class A shares As at 31 December 13,794,324 4,859,97013,7944,860 24.13% 8.50% The share buy-back programme announced has now been concluded. In the period 28 February 2024 to 30 June 2024, Park Street A/S has bought 11,072,293 shares (1,072,293 Class A shares and 10,000,000 Class B shares) for an average price of DKK 9.43. All own shares are owned by Park Street A/S. 62 On 28 February 2024, Park Street A/S announced a share buy-back programme to be executed in the period from 28 February 2024 to 30 June 2024. As a result of this share buy-back programme Park Street A/S has during the period bought 11,072,293 shares (1,072,293 class A shares and 10,000,000 class B shares) for an average price of DKK 9.43. With effect from 30 May 2024, Park Street A/S performed a cancellation of 2,955,585 class A shares and 12,164,865 class B shares all held in treasury by Park Street A/S. However, on 21 August 2024, the Company announced the discovery of a mistake rooted in the conversion of 2,137,939 class B shares into 2,137,939 class A shares held by Park Street NordAc S.a.r.l., performed on 19 July 2022 and informed to the market in company announcement the same day. As the converted class B shares were owned by Park Street NordAc S.a.r.l., the new issued class A shares based on the conversion should have been attributed to the account of Park Street NordAc S.a.r.l., but instead they had mistakenly been attributed to the account of the Company as treasury shares during the settlement process. Due to this error, the Company's recorded holding of treasury class A shares then included an excess of 2,137,939 shares resulting in the cancellation of 2,137,939 treasury class A shares more than the Company's legal holding of class A shares. To correct this mistake the Company informed in company announcement of 29 August 2024 that the share capital reduction performed in May 2024 had been rolled back in its entirety based on a decision by the Danish Business Authority. Note 22 – Deferred Taxes Amounts in DKK 1000s 2024 2023 Deferred tax liabilities at 1 January 233,847 254,025 Recognized in other comprehensive income -21 -795 Corrections from previous years 0 -8,712 Recognized in the income statement 5,779 -10,671 Deferred tax liabilities at 31 December 239,605 233,847 Deferred tax is recognized in the balance sheet as follows: Deferred tax (asset) 0 0 Deferred tax (liability) -239,605 -233,847 Deferred tax at 31 December -239,605 -233,847 Deferred tax recognized in the balance The calculation of deferred taxes included DKK 12.5 million relating to tax losses carried forward from Group companies. Based on budget ac- counting and tax profits in the period 2025-2027 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 239.6 million (taxable value) per 31 December 2024 (2023: DKK 233.8 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 Recognized in another in the income comprehensive Amounts in DKK 1000s Balance 1/1 statement income Balance 31/12 2024 Software -214 290 0 76 Investment and domicile properties 260,196 -7,986 -21 252,189 Fixtures and fittings -363 123 0 -240 Receivables -612 -391 0 -1,003 Provisions -176 171 0 -5 Credit institutions 3,041 -1,923 0 1,118 Tax losses carryforward -28,024 15,494 0 -12,530 233,847 5,778 -21 239,605 63 2023 Software 98 -312 0 -214 Investment and domicile properties 284,199 -23,208 -795 260,195 Fixtures and fittings -388 25 0 -363 Receivables -612 0 0 -612 Provisions -88 -88 0 -176 Credit institutions 1,131 1,910 0 3,041 Tax losses carryforward -30,315 2,291 0 -28,024 254,025 -19,382 -795 233,847 Note 23 – Borrowings Amounts in DKK 1000s 2024 2023 Credit institutions, nominal 1,250,511 1,361,241 Market value adjustments -4,350 -5,579 1,246,161 1,355,662 The liabilities are thus included in the balance sheet: Credit institutions, long-term 682,293 1,332,709 Credit institutions, short-term 563,868 22,953 1,246,161 1,355,662 The Group's loans and credits are distributed as per 31 December as follows: Liabilities recognized at fair value Currency Rate type Expiry date 2024 2023 Convertible bonds DKK Interest-free 5 years 11,335 11,335 11,335 11,335 Market value adjustments -4,350 -5,579 Carrying amount 6,986 5,757 Liabilities recognized at amortized cost Currency Rate type Expiry date 2024 2023 Banks Debt DKK Fixed 0-1 years 563,868 0 Banks Debt DKK Fixed 2-5 years 0 618,632 Mortgage Debt DKK Variable 2-5 Years 190,616 50,822 Mortgage Debt DKK Variable 6-10 years 316,046 0 Mortgage Debt DKK Variable 11-15 years 175,631 596,489 Mortgage Debt DKK Variable 16-20 years 0 109,012Carrying amount 1,246,161 1,374,955 The nominal amounts stated in the tables represent the amount that Park Street will repay under the loan agreements by the end of these agree- ments. 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: 64 Amounts in DKK 1000s 2024 2023 Non-current financial liabilities 1,332,708 1,382,642 Current financial liabilities 22,95320,293Financial liabilities with credit institutions at 1 January 1,355,662 1,402,935 Repayment of liabilities to credit institutions -110,729 -89,995 Proceeds from assumption of liabilities to credit institutions 0 42,721 Accrued financial expenses 1,229 0 Financial liabilities with credit institutions at 31 December 1,246,161 1,355,662 Non-current financial liabilities 682,293 1,332,708 Current financial liabilities 563,868 22,953 Total financial liabilities with credit institutions at 31 December 1,246,161 1,355,662 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. 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 2024 and 2023. 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 2024 2023 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 carrying value of zero-coupon bonds in the statement of financial position is shown in the following table: Amounts in DKK 1000s 2024 2023 5,757 5,757 Fair value of financial liability at the date of issue Amortization of convertible bonds at 31 December 0 0 Fair Value adjustment recognized in the Profit and Loss 1,229 0 Fair Value adjustment of convertible bonds converted in Equity 0 0 Balance at 31 December 6,986 5,757 As stated the 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. 65 Note 24 – Provisions Amounts in DKK 1000s 2024 2023 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 (Hejrevej 8) concerning lease status as a commercial or a residential lease. Disclosure of leases There are leases hire for cars rental and printers. Amounts in DKK 1000s 2024 2023 Within 1 year from the balance sheet date 32 10 Between 1 and 5 years from the balance sheet date 126 387After 5 years from the balance sheet date 0 0 Lease hire obligations at 31 December 158 397 Minimum lease payments recognized in the profit and loss account for the year 15 44 Note 25 – Contingent assets and liabilities Disclosure of collateral The nominal pledge for the bank debt and mortgage debt given by credit institutions per 31 December 2024 amounts a total of DKK 1,295 million (31 December 2023: DKK 1,670 million), the nominal value of the loans amounts a total of DKK 1,246 million (31 December 2023: DKK 1,356 million) in the group's investment properties and domicile with a book value totalling DKK 2,378 million (31 December 2023: DKK 2,634 million). The nominal pledge for the bank debt and mortgage debt given by credit institutions per 31 December 2024 amounts a total of DKK 7.2 million (31 December 2023: DKK 7.2million), in the group's deposited mortgage deeds with a book value totalling DKK 7.4 million (31 December 2023: DKK 7.4 million). Disclosure of contingent liabilities Park Street had a legal dispute with a previous and a current 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 dilapi- dations claim and other aspects. This will be clarified as the case proceeds further with court processes. No additional significant litigations and disputes are acknowledged by the Group at 31 December 2024, other than the ones indicated in Note 25. Note 26 – Financial risks Amounts in DKK 1000s 2024 2023 Mortgages and debentures 9,08314,114 Financial assets measured at fair value through profit or loss 9,08314,114 Receivables 24,967 24,930 Financial assets measured at amortised cost 85,038 38,207Cash and receivables 110,005 63,137 66 Credit institutions -6,986-5,757 Financial liabilities measured at fair value through profit or loss -6,986 -5,757 Credit institutions 1,246,161 1,355,662 Deposits 36,932 41,849 Accounts payable 7,967 18,557 Other Debts 4,380 6,417 Financial liabilities measured at amortized cost 1,295,440 1,422,480 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 financ- ing 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. As an important part of risk management, management closely monitors the Group's liquidity reserve, which is intended to ensure that the Group can service its current and future obligations, including payment of interest and principal to lenders. The Group's debts of DKK 564 million is due before end of December 2025. Park Street is in active and advanced discussions for refinancing the current loan with a mortgage institution. Initial mortgage valuations have been conducted, and draft terms have been agreed upon in principle, pending final credit confirmation and approval from the lender. However, there remains a risk until the terms are finalized with full credit approval. As a precaution, management has engaged with the current lenders, who have expressed a positive stance towards extending the loan subject to their credit approvals. Additionally, they have indicated that there are no specific restrictions within their fund that would hinder such an extension. Overall, the lending environment remains favorable for alternative lenders when it comes to fully stabilized assets. Management remains confident that alternative financing options will be available in case of delays in securing mortgage financing. Cash reserves total at 31 December, 2024 DKK 85.0 million (31 December 2023: DKK 38.2 million). Maturity of financial liabilities is specified as follows: Contractual Amounts in DKK 1000s Carry forward balance 0 - 1 Years 2 - 3 Years 4 - 5 Years After 5 Years cash flows 2024 Non-derivative financial instruments Credit institutions 1,246,161 1,246,161 563,868 10,213 0 672,080 Trade payables 7,967 7,967 7,967 0 0 0 Deposits 36,932 36,932 26,746 5,004 2,312 2,869 Other debts 4,380 4,380 4,380 0 0 0 Total 1,295,440 1,295,440 602,962 15,217 2,312 674,950 67 2023 Non-derivative financial instruments Credit institutions 1,355,662 1,587,129 87,823 742,884 136,014 620,407 Trade payables 18,557 18,557 18,557 0 0 0 Deposits 41,849 41,849 31,664 5,004 2,312 2,869 Other debts 6,417 6,417 6,417 0 0 0 Total 1,422,485 1,653,952 144,461 747,888 138,326 623,276 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 31 December, 2024, 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 continu- ously monitored with a view to optimizing the group's exposure to interest rate risks. Park Street in 31 December 2024, 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 interest rate (per (DKK million) annum) At 31 December, 2024: Mortgage debt Cibor6 402.56% Mortgage debt F2 382.60% Mortgage debt F3 2171.37% Mortgage debt F5 3631.81% Bank debt etc. Cibor3 564 7.63% Interest-Others 24 1,15% free 1,246 3.77% Type of loan Nominal * Weighted interest rate (per (DKK million) annum) At 31 December, 2023: Mortgage debt Cibor6 88 4.26% Mortgage debt F2 40 2.60% Mortgage debt F3 219 1.33% Mortgage debt F5 385 1.15% Bank debt etc. Cibor3 624 7.63% Interest-Others 0 0.00% free 1,356 4.39% () 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 2024 is 3.77% per annum, and is based on the latest confirmed interest rates. The corresponding calculated weighted rate at 31 December, 2023 was 4.39% per annum. 68 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 2024 2023 Between 0 and 12 months 564 88 Between 2 and 3 years 10 743Between 4 and 5 years 0 136After 5 years 672 6201,246 1,587 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 2024 2023 Variable Interest rate loans: Effect on income statement -6.0 -7.1 Effect on equity -6.0 -7.1 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 –6.0 million per annum (2023: DKK –7.1 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 re- ceived. 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 31 December 2024 is further described in note 18. Group’s Cash and cash equivalents consists primarily of deposits in reputable banks (with A+ ratings). The group believes that there is no signifi- cant credit risk associated with the cash. Deposits in banks are labelled at variable interest rate. 69 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 1,246 thou- sand. 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 last year’s fair value. 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 2024 Investment and domicile properties 23,77,567 0 23,77,567 0 Total Investment and domicile proper-23,77,567 0 23,77,567 0 ties Mortgages and debentures 9,0830 9,0830 Total financial assets 9,083 0 9,0830 Credit institutions 6,986 0 0 6,986 Total financial liabilities 6,9860 0 6,9862023 Investment and domicile properties 26,34,994 0 26,34,994 0 Total Investment and domicile proper 26,34,994 0 26,34,994 0 ties Mortgages and debentures 14,114 0 14,114 0 Total financial assets 14,114 0 14,114 0 Credit institutions 5,756 0 0 5,756 Total financial liabilities 5,756 0 0 5,756 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 hierar- chy. 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): 70 Amounts in DKK million 2024 2023 Carrying amount at 1st of January 6,986 5,756 Gains / losses in the income statement 0 0 Redemptions 0 0 Transfer to Level 3 0 0 Transfer from Level 3 0 0 Balance at 31 December 6,986 5,756 Gain / loss in the income statement for liabilities held as at 31 December 0 0 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). Refinancing of current loan Park Street is in active and advanced discussions for refinancing the current loan with a mortgage institution. The mortgage valuations have initial draft terms are agreed in principle but await credit confirmation and approval on the lender side. There remains risk until the terms are finalised with a credit approval, hence the management had discussions with current lenders who remain positive for an extension of loan such their credit ap- provals, and also noted that there are no specific restrictions they see with their fund for such an extension. Overall the lending environment is positive for alternative lenders for full stable assets and the management is confident of alternative financing in the events of delay in getting mort- gage financing concluded. Note 27 – Non-current operating items, etc. Amounts in DKK 1000s 2024 2023 Depreciation and amortization -1,401 -2,556 Profit/loss on sale of operating assets -855 -2,535 Total regulation -2,256 -5,091 Note 28 – Change in operating capital Amounts in DKK 1000s 2024 2023 Change in receivables 4,807 3,664 Change in deposit -4,9173,993Change in trade payables -13,353-780Change in total working capital -13,463 6,877 Note 29 – 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 2024 2023 Other related parties Software expenses 2,448 1,338 There have been no other transactions, etc. with related parties during the period. 71 Note 30 – Subsequent Events Subsequent events after 31 December 2024 Park Street has sold one asset Stagehovej to a total amount of DKK 28 million. From the balance sheet date until the date of presentation of this Annual Report no additional events have occurred other than the above men- tioned which significantly affect the assessment of the annual report. Note 31 – Accounting policies Statement of IFRS compliance The annual report for the period 1 January to 31 December 2024 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 2024 is prepared in accordance with IFRS accounting standards as adopted by the EU and requirements according to the Danish Financial Statements Act. The Company has implemented the following new amendments or new standards (IFRS) for financial year 2024 which is effective from 1 janurary 2024 • Classification of Liabilities as Current or Non-Current (with Covenants) - amendments to IAS 1 • Sale and Leaseback – amendments to IFRS 16 • Supplier Financing Arrangements – amendments to IAS 7 and IFRS 7 The annual report has been approved by the Board of Directors on 4 April 2025. The annual report shall be submitted to Park Street A/S share- holders for approval at the Annual General Meeting that will take place on 28 April 2025. At the time of publication of this annual report, a number of new or revised standards and interpretations have been issued, but they have not yet come into effect and have not been approved by the EU. IASB has issued a new international accounting standard that replaces IAS 1 as of January 1, 2027. The replacement of IAS 1 is IFRS 18 and will affect the Group in terms of the presentation and information in the annual report. The new standard sets more explicit requirements for the presentation of performance measures, information on management-defined performance measures, as well as fewer changes and clarifications. Among other things, the general principles for the presentation of financial statements in IAS 1 are the same in IFRS 18. Further new and revised standards and interpretations are not expected to have a significant impact on the annual report for the coming financial years. 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 reas- sessed 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 subsidiar- ies, which have been prepared in accordance with the Group's accounting policies, the elimination of intercompany income and expenses, share- holdings, balances, dividends and gains and losses on transactions, taken between the consolidated companies. 72 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 associ- ated 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 prop- erty 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 pro- ject, calculated borrowing costs on the basis of an average interest rate of the group's loans except for loans recorded at the acquisition of specif- ic 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. 73 74 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 meas- ured 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). 75 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 cash- generating 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 recovera- ble 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. Revaluation reserve Reserve for revaluation includes the accumulated revaluation of domicile. The reserve is reduced by transfer to the profit for the year, as deprecia- tion and write-downs are made on the properties written up or for sale. Share Premium The share premium account represents the excess amount received over the nominal value of shares issued. In accordance with IAS 1.79(b), the balance of the share premium account may be used for specific purposes, including: • Issuing fully paid bonus shares, • Writing off preliminary expenses, • Covering share issue costs, or • Any other permitted capital adjustments. 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. 76 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. 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 repay- ment 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. 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 Park Street | Park Street A/S Financial Statements 77 Park Street | Park Street A/S Financial Statements 78 2024 PARK STREET A/S FINANCIAL STATEMENTS Park Street | Park Street A/S Financial Statements 79 Income statement Note Amounts in DKK 1000s 2024 2023 2 Net sales 73,643 95,811 3 Operating expenses -19,118 -22,728 Gross profit 54,525 73,083 4 Employee benefit expenses -8,326 -10,700 Other expenses -12,324 -7,592 6 Depreciation, amortisation and impairment -209 -737 Operating profit (EBIT) 33,666 54,053 7 Financial income 11,942 5,840 7 Financial expenses -22,453 -17,248 Earnings before value adjustments (EBVAT) 23,156 42,645 8 Income / Loss from subsidiaries -1,951 27,099 9 Adjustment to fair value, net 4,655 -105,746 Gains realised on the sale of investment properties -1,747 -2,535 Result before tax 24,113 -38,536 10 Tax on profit for the period -17,193 11,471 Result for the period 6,920 -27,065 Park Street | Park Street A/S Financial Statements 80 Statement of comprehensive income Note Amounts in DKK 1000s 2024 2023 Result for the period 6,920 -27,065 Other comprehensive income: Items that cannot be reclassified to the income statement: Fair value adjustment of domicile properties 0 0 Tax on fair value adjustment of domicile properties 0 0 Other comprehensive income after tax 0 0 Comprehensive income for the period 6,920 -27,065 Distributed as follows Parent's shareholders 6,920 -27,065 Comprehensive income for the period 6,920 -27,065 Park Street | Park Street A/S Financial Statements 81 Statement of financial position Note Amounts in DKK 1000s 2024 2023 ASSETS Non-current assets Intangible assets Capitalised Leasing Fees 346 439 346 439 Property, plant and equipment 12 Investment properties 994,813 1,214,789 Machinery and equipment 0 -124 994,813 1,214,665 Financial assets 11 Investment in subsidiaries 497,346 492,183 Deposits 161 161 497,508 492,344 Total non-current assets 1,492,666 1,707,449 Current assets 13 Intercompany receviables 165,296 240,182 14 Trade and other current receivables 109,920 17,903 Income tax receivable 0 2,332 Prepaid expenses and accrued income 400 0 Cash and short-term deposits 62,226 14,732 Total current assets 337,842 275,149 Total assets 1,830,508 1,982,597 Equity Share capital 57,175 57,175 Share Premium 289,260 289,260 Accumulated profit 616,045 713,524 Total equity 962,479 1,059,959 LIABILITIES Non-current liabilities 15 Deferred tax 239,610 233,842 16 Borrowings 575,838 629,465 Deposits 140 7,200 815,589 870,507 Current liabilities Provisions 400 400 16 Current borrowings 22,567 22,567 Trade and other payables 5,240 7,079 Deposits 20,675 20,675 Income tax payable 2,060 0 Other liabilities 1,499 1,410 52,441 52,131 Total liabilities 868,030 922,639 Total equity and liabilities 1,830,508 1,982,598 Park Street | Park Street A/S Financial Statements 82 Statement of equity Amounts in DKK 1000s Share capital Revaluation reserve Accumulated profit Share Premium Equity Total Statement of equity for 2024: Equity as at 1 January 2024 57,175 0 713,524 289,260 1,059,959 Comprehensive income for the period Result for the period 0 0 6,920 0 6,920 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 6,920 0 6,920 Transactions with owners Repurchase own shares 0 0 -104,400 0 -104,400 Capital reduction 0 0 0 0 0 Total transactions with owners 0 0 -104,400 0 -104,400 Equity as at 31 December 2024 57,175 0 616,045 289,260 962,479 Statement of equity for 2023: Equity as at 1 January 2023 57,175 0 740,589 289,260 1,087,024 Comprehensive income for the period Result for the period 0 0 -27,065 0 -27,065 Comprehensive income for the period 0 0 -27,065 0 - 27,065 Transactions with owners Repurchase own shares 0 0 0 0 0 Cash reduction 0 0 0 0 0 Total transactions with owners 0 0 0 0 0 Other adjustments Depreciation of revalued value of domiciles Equity as at 31 December 2023 57,175 0 713,524 289,260 1,059,959 Park Street | Park Street A/S Financial Statements 83 Statement of cash flows Note Amounts in DKK 1000s 2024 2023 Operating profit (EBIT) 33,666 54,063 Reversal of depreciations and amortisations 209 737 Change in other operating capital -26,949 -31,417 Cash flows concerning primary operations 6,926 23,383 Financial expenses paid -10,510 -17,248 Paid Corporate Tax -7,148 0 Total cash flow from operating activities -10,733 6,125 Cash flow from investing activities Improvements to investment properties -3,049 14,040 Sales of investment properties 220,750 76,400 Purchases of other property, plant and equipment -219 0 Total cash flow from investing activities 217,482 90,440 Cash flow from financing activities Repurchase Own Shares -104,400 0 Repayment of liabilities to credit institutions -54,856 -30,728 Repayment of debt from disposal of assets 0 -58,272 Total cash flow from financing activities -159,256 -89,000 Total cash flow for the period 47,494 7,565 Liquid assets as at 1 January 14,732 7,167 Liquid assets at the end of the period 62,226 14,732 Liquid assets at the end of the period Cash and short term deposit 62,226 14,732 Liquid assets at the end of the period 62,226 14,732 Park Street | 84 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 income and 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 Intercompany receviables Note 14 Trade and other current receivables Note 15 Deferred taxes Note 16 Borrowings Note 17 Contingent assets and liabilities Note 18 Financial risks Note 19 Change in other working capital Note 20 Related parties Note 21 Events after the balance sheet date Note 22 Accounting policies Park Street | 85 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 2024 2023 Rental income 60,957 83,877 Sales of other services 12,686 11,934 73,643 95,811 Note 3 - Operating expenses Amounts in DKK 1000s 2024 2023 Operating expenses, investment properties 19,118 22,723 Operating expenses, other services 0 5 19,118 22,728 Note 4 – Employee benefits expenses Amounts in DKK 1000s 2024 2023 Salary 7,673 9,770 Contribution based pension () 318 486 Other social security costs 26 80 Other staff costs 309 364 8,326 10,700 Average number of employ- ees 7 10 () 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. Park Street | 86 Note 5 – Auditor’s fees The auditor appointed in 2024 and 2023 is PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab. Their fees can be specified as follows: Amounts in DKK 1000s 2024 2023 Statutory audit 781 811 Tax and VAT advice 278 243 1,059 1,054 Fees for non-audit services delivered by PricewaterhouseCoopers, Statsautoriseret Revisionspartnerselskab, include taxation and VAT services. Note 6 – Depreciation, amortisation and impairment Amounts in DKK 1000s 2024 2023 Depreciation, software 93 632 Depreciation, inventory and fixed assets 115 105 208 737 Note 7 – Financial expenses and income Financial expenses Amounts in DKK 1000s 2024 2023 Interest expenses, liabilities to credit institutions measured at amortized cost 22,375 17,187 Other interest costs and fees 77 74 Borrowing costs 0 -13 22,453 17,248 Financial income Amounts in DKK 1000s 2024 2023 Financial income 11,942 5,840 11,942 5,840 Note 8 – Year’s result in subsidiary companies Amounts in DKK 1000s 2024 2023 Income / Loss from subsidiaries -1,951 27,099 -1,951 27,099 Park Street | 87 Note 9 – Adjustments to fair value, net Amounts in DKK 1000s 2024 2023 Fair value adjustment, investment properties 4,655 -105,746 4,655 -105,746 Note 10 – Tax on profit for the year and other comprehensive income Amounts in DKK 1000s 2024 2023 Annual tax can be divided as follows: Current tax on profit of the year 8,970 0 Current tax, previous years 2,455 0 Changes in deferred taxes 5,768 -11,471 17,193 -11,471 Tax on profit for the year can be explained as follows: Estimated tax at a tax rate of 22% 5,305 -8,478 Adjustment of deferred tax assets and liabilities 11,888 -2,993 17,193 -11,471 Effective tax rate 71.30% 29.77% Note 11 – Investment in subsidiaries See accounting policies on note 21 of the Parent’s Financial Statements. Receivables considered part of the overall investment in the subsidiary are written down by any remaining negative equity value. Amounts in DKK 1000s 2024 2023 Cost price at 1 January 404,144 404,144 Additions 0 0 Cost price at 31 December 404,144 404,144 Value adjustments at 1 January 107,086 79,987 Share of profit/loss for the year after tax -1,951 27,099 Value adjustments at 31 December 105,135 107,086 Carrying amount at 1 January 511,230 484,131 Investments with negative equity offset against intercompany receivables -11,933 0 Carrying amount at 31 December 497,346 511,230 Park Street | 88 List of subsidiaries: Subsidiaries Registered Address Equity PSN ApS Amaliegade 6, 2 tv, 1256 København K 100% Pulse Glostrup P/S Amaliegade 6, 2 tv, 1256 København K 100% Pulse Taastrup P/S Amaliegade 6, 2 tv, 1256 København K 100% Phoam Studio ApS Amaliegade 6, 2 tv, 1256 København K 100% Pulse Living ApS Amaliegade 6, 2 tv, 1256 København K 100% Albuen ApS Amaliegade 6, 2 tv, 1256 København K 100% PS I ApS Amaliegade 6, 2 tv, 1256 København K 100% PS Hold Co P/S Amaliegade 6, 2 tv, 1256 København K 100% Pulse N P/S Amaliegade 6, 2 tv, 1256 København K 100% Pulse O P/S Amaliegade 6, 2 tv, 1256 København K 100% Ballerup Hotel P/S Amaliegade 6, 2 tv, 1256 København K 100% Toldbuen P/S Amaliegade 6, 2 tv, 1256 København K 100% Svanevej P/S Amaliegade 6, 2 tv, 1256 København K 100% Park Street Nordicom UK Ltd 85, Great Portland Street, London, W1W 7LT, England 100% Note 12 – Investment properties Amounts in DKK 1000s 2024 2023 Balance at 1 of January 1,214,789 1,398,722 Costs incurred for improvements 3,049 0 Adjustment to fair value, net 4,655 -105,746 Additions fixed assests 0 0 Depreciation of fixed assets 0 0 Retirement on sale -227,679 -78,187 Balance at 31 December 994,813 1,214,789 Fair value hierarchy for investment: Amounts in DKK 1000s Level 1 Level 2 Level 3 Total At 31 December 2024: Investment properties 0 0 994,813 1,214,789 0 0 994,813 1,214,789 At 31 December 2023: Investment properties 0 1,214,789 1,214,789 0 0 1,214,789 1,214,789 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 2024 and 2023 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. Park Street | 89 The net income of the investment portfolio is as follows: Amounts in DKK 1000s 2024 2023 Rental income from investment properties 60,957 83,877 Operating expenses, investment properties -19,118 -22,723 Net income from investment properties 41,838 61,154 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 2024 2023 Remaining termination within 1 year from the balance sheet date 2,429 583 Remaining termination between 1 and 5 years from the balance sheet date 0 916 Remaining termination after 5 years from the balance sheet date 56,838 56,442 59,267 57,941 The accumulated minimum lease payments for commercial rentals during the non- cancellable period can be shown as follows: Amounts in DKK 1000s 2024 2023 Before 1 Year 37,138 37,263 Before 2 Years 3,444 10,095 Before 3 years 5,618 4,740 Before 4 years 755 2,330 Before 5 years 2,990 0 After 5 years 5,290 16,167 Total accumulated minimum lease payments 55,235 70,594 Note 13 – Intercompany receviables Park Street has the following receviables: Amounts in DKK 1000s 2024 2023 Intercompany receviables at 1 January 240,182 212,321 Repayment of the year -74,886 0 Additions - Intercompany loans 0 27,861 Financial assets at amortized cost at 31 December 165,296 240,182 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 (175 million utilized at 31.12.23) 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 (5 million uti- lized at 31.12.24) with an annual interest rate of 7.5% payable at the maturity date of the loan. Park Street | 90 Note 14 – Trade and other current receivables Amounts in DKK 1000s 2024 2023 Receivable Rental Income 5,019 8,003 Deposited funds in banks 383 383 Other Receivables 12,023 9,517 Receivable from related party 92,495 74,886 Receivables at 31 December 109,920 92,789 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 2,164 2,165 Additional provisions 2,692 0 Reversal 0 -1 4,856 2,164 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 312 1,305 Between 30 and 90 days 799 2,278 Over 90 days 3,908 4,420 5,019 8,003 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 15 – Deferred Taxes Amounts in DKK 1000s 2024 2023 Deferred tax liabilities at 1st of January 233,842 247,723 Correction from previous years 0 -2,410 Recognized in the income statement 5,768 -11,471 Deferred tax liabilities at 31 December 239,610 233,842 Deferred tax is recognized in the balance sheet as follows: Deferred tax (asset) 0 0 Deferred tax (liability) -239,610 -233,842 Deferred tax at 31 December -239,610 -233,842 Deferred tax recognized in the balance The calculation of deferred taxes included DKK 12.5 million relating to tax losses carried forward from Group companies. Based on budget ac- counting and tax profits in the period 2025-2027 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 239.6 million (taxable value) per 31 December 2024 (2023: DKK 233.8 million). Park Street | 91 Amounts in DKK 1000s Balance 1/1 Recognized in the income statement Recognized in another comprehensive income Balance 31/12 2024 Software -214 290 0 76 Investment and residential properties 260,190 -7,986 0 252,204 Fixtures and fittings -363 123 0 -240 Receivables -612 -391 0 -1,003 Provisions -176 171 0 -5 Credit institutions 3,041 -1,923 0 1,118 Tax losses carryforward -28,024 15,484 0 -12,540 233,842 5,768 0 239,610 Amounts in DKK 1000s Balance 1/1 Recognized in the income statement Recognized in another comprehensive income Balance 31/12 2023 Software 98 -312 0 -214 Investment and residential properties 277,897 -17,707 0 260,190 Fixtures and fittings -388 25 0 -363 Receivables -612 0 0 -612 Provisions -88 -88 0 -176 Credit institutions 1,131 1,910 0 3,041 Tax losses carryforward -30,315 2,291 0 -28,024 247,723 -13,881 0 233,842 There are no deferred tax assets not recognized in the balance. Note 16 – Borrowings Amounts in DKK 1000s 2024 2023 Credit institutions, nominal 602,755 657,612 Market value adjustments -4,350 -5,579 598,405 652,033 The liabilities are thus included in the balance sheet: Credit institutions, long-term 575,838 629,465 Credit institutions, short-term 22,567 22,567 598,405 652,032 Park Street | 92 The Group's loans and credits are distributed as per 31 December as follows: Liabilities recognized at fair value Currency Rate type Expiry date 2024 2023 Convertible bonds DKK Interest-free 5 years 11,335 11,335 11,335 11,335 Market value adjustments -4,350 -5,579 Carrying amount 6,986 5,756 Liabilities recognized at amortized cost Currency Rate type Expiry date 2024 2023 Mortgage Debt DKK Variable 2-5 years 158,022 50,822 Mortgage Debt DKK Variable 6-10 years 280,031 0 Mortgage Debt DKK Variable 11-15 years 160,352 596,489 Mortgage Debt DKK Variable 16-20 years 0 0 Carrying amount 598,405 647,311 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 2024 2023 Non-current financial liabilities 629,465 720,686 Current financial liabilities 22,567 20,347 Financial liabilities with credit institutions at 1 January 652,033 741,032 Repayment of liabilities to credit institutions -54,856 -89,000 Accrued financial expenses 1,229 Financial liabilities with credit institutions at 31 December 598,405 652,032 Non-current financial liabilities 575,838 629,465 Current financial liabilities 22,567 22,567 Total financial liabilities with credit institutions at 31 December 598,405 652,033 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 23 of the consolidated financial state- ments. Information on estimates and judgments related to the determination of fair value of financial liabilities is disclosed in note 1 of the Consoli- dated Financial Statements. As stated in these notes mortgage and bank debt have been recognized at amortised cost in 2024. No reversal of fair value adjustments in 2024. Zero-coupon bonds (former Convertible bonds) See note 23 in the Consolidated Financial Statements. Park Street | 93 Note 17 – Contingent assets and liabilities Disclosure of collateral The nominal pledge for the bank debt and mortgage debt given by credit institutions per 31 December, 2024 amount a total of DKK 598 million (31 December 2023: DKK 652 million), the nominal value of the loans amounts a total of DKK 598 million (31 December 2023: DKK 652 million) in the group's investment properties and domicile with a book value totalling DKK 995 million (31 December 2023: DKK 1,233 million). The nominal pledge for the bank debt and mortgage debt given by credit institutions per 31 December, 2024 amount a total of DKK 7.4 million (31 December 2023: DKK 7.4 million), in the group's deposited mortgage deeds with a book value totalling DKK 7.4 million (31 December 2023: DKK 7.4 million). Disclosure of contingent liabilities Park Street had a legal dispute with a previous and a current 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 dilapi- dations claim and other aspects. This will be clarified as the case proceeds further with court processes.. No additional significant litigations and disputes are acknowledged by the Group at 31 December, 2024. Lease hire agreements There are lease hire agreements for cars rental and printers. 2024 2023 Within 1 year from the balance sheet date 32 10 Between 1 and 5 years from the balance sheet date 126 422 After 5 years from the balance sheet date 0 0 Lease hire obligations at 31 December 158 432 Minimum lease payments recognized in the profit and loss account for the year 15 31 Note 18 – Financial risks Amounts in DKK 1000s 2024 2023 Mortgages and debentures 7,412 7,412 Intercompany loan 157,883 157,883 Financial assets measured at amortized cost 165,295 165,295 Receivables 109,920 92,789 Cash and equivalents 62,226 14,732 Loan and receivables 172,146 107,521 Credit institutions 6,986 5,757 Financial liabilities measured at fair value through profit or loss 6,986 5,757 Credit institutions 598,405 652,033 Deposits 20,816 27,876 Accounts payable 5,240 7,079 Other Debts 1,498 881 Financial liabilities measured at amortized cost 625,959 687,869 Park Street | 94 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 financ- ing 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 31 December, 2024 DKK 62.2 million (31 December 2023: DKK 14.7 million). 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 2024 Non-derivative financial instruments Credit institutions 598,405 615,382 16,977 10,213 0 588,193 Trade payables 5,240 5,240 5,240 0 0 0 Deposits 20.816 20.816 7,900 10,583 1,570 764 Other debts 1,498 1,498 1,498 0 0 0 Total 625,959 642,936 31,614 20,796 1,570 588,957 2023 Non-derivative financial instruments Credit institutions 652,033 883,500 75,642 385,618 82,141 340,098 Trade payables 7,079 7,079 7,079 0 0 0 Deposits 27,876 27,876 14,960 10,583 1,570 764 Other debts 881 881 881 0 0 0 Total 687,869 919,336 98,562 396,201 83,711 340,862 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 31 December, 2024 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 continu- ously monitored with a view to optimizing the group's exposure to interest rate risks. Park Street at 31 December, 2024 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. Park Street | 95 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 (DKK million) * Weighted interest rate (per annum) At 31 December, 2024: Mortgage debt Cibor6 40 2.56% Mortgage debt F2 38 2.60% Mortgage debt F3 123 1.38% Mortgage debt F5 366 1.81% Others Others 31 1.15% 598 1.79% At 31 December, 2023: Mortgage debt Cibor6 88 4.26% Mortgage debt F2 40 2.60% Mortgage debt F3 110 1.28% Mortgage debt F5 390 1.15% Bank debt etc. Fixed 25 1.15% Others Others 0 - 653 2.98% The calculated weighted interest rate for all Park Street loans at 31 December 2024 was 1.79% per annum and is based on the latest confirmed interest rates. The corresponding calculated weighted rate at 31 December 2023 was 2.98% 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 2024 2023 Between 0 and 12 months 0 76 Between 2 and 3 years 10 386 Between 4 and 5 years 0 82 After 5 years 588 340 598 884 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 2024 2023 Variable Interest rate loans: Effect on income statement -0.4 -1.0 Effect on equity -0.4 -1.0 Park Street | 96 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 –0.4 million per annum (2023 DKK -1.0 million). Currency risk The company exposure is very limited to changes in currency rates. Credit risk The Company'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 31 December, 2024, 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). 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 2024 Mortgages and debentures 7,412 0 0 7,412 Intercompany loan 157,883 157,883 Total financial assets 165,295 0 0 165,295 Credit institutions 6,986 0 0 6,986 Total financial liabilities 6,986 0 0 6,986 Park Street | 97 2023 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 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 2024 2023 Carrying amount per. 1 January 6,986 5,757 Gains / losses in the income statement 0 0 Balance at 31 December 6,986 5,757 Gain / loss in the income statement for liabilities held at 31 December 0 0 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 19 – Changes in other working capital Amounts in DKK 1000s 2024 2023 Change in receivables -16,302 -26,960 Change in deposit -8,896 -1,152 Change in trade payables -1,751 -3,305 Change in total working capital -26,949 -31,417 Note 20 – Related parties Park Street Asset Management Ltd. (London, England) has controlling influence in Park Street A/S by virtue of its shareholding of 71.79% 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 2024 2023 Other related parties Software expenses 2,448 1,338 There have been no other transactions, etc. with related parties during the period. Park Street | 98 Note 21 – 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 acquisi- tion 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 ” Re- serve 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 dis- posal or winding up. The gains or losses are included in the income statement. Park Street | 99 PROPERTY OVERVIEW Park Street Group owns at 31 December 2024, 39 properties. # Property Type Address ZIP City 1 Office 1 C, Vilhelmskildevej 5700 Svendborg 2 Glostrup 2600 Glostrup 3 23-35, Birkemose Allé 23-35 6000 Kolding 4 6, Toldbuen 4700 Næstved 5 275, Svendborgvej 5000 Odense 6 Retail Mosede Centret 2670 Greve 7 27, Immerkær 2650 Hvidovre 8 Sjællandsgade 12,16,18 7100 Vejle 9 Hotel 13, Algade 4000 Roskilde 10 Ballerup Idrætsby Hotel 2750 Ballerup 11 Residential 29, Tåsingegade 2100 København 12 8-10, Hejrevej 2400 København 13 Office 21, Birkemose Allé 6000 Kolding 14 4, Kirsebærgården 3450 Lillerød 15 Residential - Project 2, Selsmosevej 2630 Taastrup 16 39, Skibsegen 3070 Snekkersten 17 Storage 78, Vordingborgvej 4700 Næstved 18 78-82, Vordingborgvej 4700 Næstved 19 Office Dannebrogsgade 2, 5000 Odense 20 Omøvej 9 4700 Næstved 21 6, Jernbanegade 6 4000 Roskilde 22 Residential 21, Nørregade 4700 Rinsted 23 Nørregade 31-33 4100 Ringsted 24 33-35, Jernbanegade 6000 Kolding 25 2, Søndergade Struer 26 Grønings Have Havnestaden 27 Retail Ros Have 8, 10, 12, 18 4000 Roskilde 28 11, Ros Have 4000 Roskilde 29 13, Ros Have 4000 Roskilde 30 20, Prøvestensvej 3000 Helsingør 31 2, L.C. Worsøesvej 6780 Holbæk 32 3, Banetorvet 3450 Lillerød 33 10, Dyssegårdsvej 4700 Næstved 34 13-19, Nørregade 4100 Ringsted 35 27A+B, Nørregade 4100 Ringsted Park Street | 100 36 102, Silkeborgvej 7400 Herning 37 2 A-B, Engdahlsvej 7400 Herning 38 19A, Albuen 6000 Kolding 39 Storage 7-13, Blegdammen 4700 Næstved Annual reportAuditor's report on audited financial statementsParsePort XBRL Converter2024-01-012024-12-312023-01-012023-12-31Reporting class DOpinionBasis for Opinion213800VGJC18MRKMZC332024-01-012024-12-31cmn:ConsolidatedMember213800VGJC18MRKMZC332024-01-012024-12-31213800VGJC18MRKMZC332023-01-012023-12-31213800VGJC18MRKMZC332024-12-31213800VGJC18MRKMZC332023-12-31213800VGJC18MRKMZC332023-12-31ifrs-full:IssuedCapitalMember213800VGJC18MRKMZC332024-01-012024-12-31ifrs-full:IssuedCapitalMember213800VGJC18MRKMZC332024-12-31ifrs-full:IssuedCapitalMember213800VGJC18MRKMZC332023-12-31ifrs-full:RevaluationSurplusMember213800VGJC18MRKMZC332024-01-012024-12-31ifrs-full:RevaluationSurplusMember213800VGJC18MRKMZC332024-12-31ifrs-full:RevaluationSurplusMember213800VGJC18MRKMZC332023-12-31ifrs-full:RetainedEarningsMember213800VGJC18MRKMZC332024-01-012024-12-31ifrs-full:RetainedEarningsMember213800VGJC18MRKMZC332024-12-31ifrs-full:RetainedEarningsMember213800VGJC18MRKMZC332023-12-31ifrs-full:SharePremiumMember213800VGJC18MRKMZC332024-01-012024-12-31ifrs-full:SharePremiumMember213800VGJC18MRKMZC332024-12-31ifrs-full:SharePremiumMember213800VGJC18MRKMZC332022-12-31ifrs-full:IssuedCapitalMember213800VGJC18MRKMZC332023-01-012023-12-31ifrs-full:IssuedCapitalMember213800VGJC18MRKMZC332022-12-31ifrs-full:RevaluationSurplusMember213800VGJC18MRKMZC332023-01-012023-12-31ifrs-full:RevaluationSurplusMember213800VGJC18MRKMZC332022-12-31ifrs-full:RetainedEarningsMember213800VGJC18MRKMZC332023-01-012023-12-31ifrs-full:RetainedEarningsMember213800VGJC18MRKMZC332022-12-31ifrs-full:SharePremiumMember213800VGJC18MRKMZC332023-01-012023-12-31ifrs-full:SharePremiumMember213800VGJC18MRKMZC332022-12-31213800VGJC18MRKMZC332024-01-012024-12-31cmn:ConsolidatedMember1213800VGJC18MRKMZC332024-01-012024-12-31cmn:ConsolidatedMember1213800VGJC18MRKMZC332024-01-012024-12-31cmn:ConsolidatedMember2213800VGJC18MRKMZC332024-01-012024-12-31cmn:ConsolidatedMember3213800VGJC18MRKMZC332024-01-012024-12-31cmn:ConsolidatedMember4213800VGJC18MRKMZC332024-01-012024-12-31cmn:ConsolidatedMember5213800VGJC18MRKMZC332024-01-012024-12-31cmn:ConsolidatedMember1213800VGJC18MRKMZC332024-01-012024-12-31cmn:ConsolidatedMember2213800VGJC18MRKMZC332023-01-012023-12-31cmn:ConsolidatedMemberiso4217:DKKiso4217:DKKxbrli:sharesxbrli:pure