Park Street Nordicom A/S – Annual Report 2017

In 2017 Park Street Nordicom achieved EBVAT (earnings before value adjustments and tax) of DKK 25.9 million (2016: DKK 24.9 million) which was in line with management expectations for the period. Overall Profit for 2017 after tax is DKK 360.1 million against DKK 43.5 million in 2016 driven by a net revaluation of investment properties of DKK 259.6 million and one-off profits of DKK 89.7 million related to debt conversion into equity, debt restructuring and debt fair value adjustments. The Group Equity at 31st December 2017 is DKK 554.9 million compared to DKK -33.1 million as at 31 December 2016.

The restructuring of Park Street Nordicom A/S including recapitalisation, implementation of new financial terms and merger of subsidiary entities has been completed.

The Board of Directors of Park Street Nordicom A/S today discussed and approved the Annual Report 2017, which contained the following:

The period in outline

• Yearly result was a profit of DKK 360.1 million (2016: DKK 43.5 million).
• For 2017 Park Street Nordicom achieved EBVAT (earnings before value adjustments and tax) of DKK 25.9 million (2016: DKK 24.9 million) which was in line with management expectations for the period. The EBVAT until last quarter were lower than those achieved in 2016; however since the beginning of the 4^th quarter of 2017 EBVAT improved due to the reduction of financial expenses due to lower margins on mortgage loans as a consequence of new financing terms agreed and conversion of debt into class B shares.
• The vacancy rate (by rental value) in investment properties was 11.4% in 2017 against 11.6% in 2016.
• During the period, Park Street Nordicom sold:
  • Randlevvej, Odder (2 plots).
  • Halfdans Vænge, Næstved (5 plots)
• A total net adjustment of DKK 259.6 million in the value of investment properties was included in the income statement (2016: DKK 0.3 million). A new evaluation has been made for 2017 adjusting the yield and the estimated profit and loss for the entire portfolio of Park Street Nordicom A/S.
• Two additional adjustments of DKK 89.7 million were recorded in 2017. A positive adjustment of DKK 34.1 million (2016: DKK -10.7 million) due to a change of the fair value of the mortgage debt, bank debt and convertible bonds. A final positive adjustment of DKK 55.6 million was booked (2016: 0 million) corresponding to the debt relief linked to the sale of two investment properties and agreements with the financial institutions involved in the restructuring process.
• The Group's equity was positive at DKK 554.9 million at 31 December 2017 (31 December 2016: DKK -33.1 million).
• Park Street Nordicom's net cash flow in 2017 was DKK -59.3 million (2016: DKK 37.8 million), primarily driven by DKK 118.3 million repayments of liabilities during the year.

Subsequent events after December 31, 2017

As stated in the Nasdaq announcement of 27 of February 2018, a cash capital injection of DKK 50 million and debt a nominal amount of DKK 92.69 million were converted into class B shares, representing a total capital increase of DKK 142.69 million class B shares.

Park Street NordAc Sarl, a controlled company of Park Street Asset Management Ltd, subscribed to all the new class B shares in connection with the capital increase. The Group’s current total share capital has a nominal amount of DKK 67,513,732, divided into class A shares of a nominal amount of DKK 12,207,858 and class B shares of a nominal amount of DKK 55,485,874.00. The equity as of 28^th March 2018 is DKK 715.6 million, including a budgeted profit after tax of DKK 18 million for the first three months of 2018.

Management comments on the Annual report

In connection with Annual Report 2017, CEO Pradeep Pattem states the following:
”2017 has represented a key milestone for Park Street Nordicom with the recapitalisation, implementation of new financial terms with credit institutions and completion of the merger of subsidiary entities. The focus for 2018 will be on reducing the vacancy, streamlining of the operations, perform selective redevelopments and developing external capital partnerships to expand the assets under management. The company expects that the EBVAT for the year 2018 will be within the range DKK 80-90 million.”

Attached files

The Annual Report 2017 and the Statement of the mandatory review of Corporate Governance, cf. section 107b of the Danish Financial Statement Act, is attached to this announcement.

Copenhagen,

Andrew La Trobe                           Pradeep Pattem
Chairman                                       CEO

Further information 

For further information please contact Pradeep Pattem, CEO at nordicom@nordicom.dk

Company Website: www.psnas.com

Telephone Number: +45 33 33 93 03

?

Corporate governance statement - Annual Report 2017 (final)

Park Street Nordicom AS Annual Report 2017