38170074 2023-12-31 38170074 2022-12-31 38170074 2023-01-01 fsa:ContributedCapitalMember 38170074 2023-01-01 fsa:RetainedEarningsMember 38170074 2023-12-31 fsa:ContributedCapitalMember 38170074 2023-12-31 fsa:RetainedEarningsMember 38170074 2023-01-01 fsa:InvestmentPropertyMember 38170074 2023-12-31 fsa:InvestmentPropertyMember 38170074 2023-12-31 fsa:LongtermEquityLoanMember 38170074 2022-12-31 fsa:LongtermEquityLoanMember 38170074 2023-12-31 fsa:LongtermMortgageLoansMember 38170074 2022-12-31 fsa:LongtermMortgageLoansMember 38170074 2023-01-01 2023-12-31 38170074 2023-01-01 2023-12-31 1 38170074 2023-01-01 2023-12-31 memberOfBoardIdentifier_executive_board_1 38170074 2023-01-01 2023-12-31 memberOfBoardIdentifier_board_of_director_1 38170074 2023-01-01 2023-12-31 memberOfBoardIdentifier_board_of_director_2 38170074 2023-01-01 2023-12-31 memberOfBoardIdentifier_board_of_director_3 38170074 2023-01-01 2023-12-31 memberOfBoardIdentifier_board_of_director_4 38170074 2023-01-01 2023-12-31 2 38170074 2022-01-01 2022-12-31 38170074 2023-01-01 2023-12-31 fsa:RetainedEarningsMember 38170074 2022-01-01 2022-12-31 fsa:RetainedEarningsMember 38170074 2023-01-01 2023-12-31 fsa:ContributedCapitalMember 38170074 2023-01-01 2023-12-31 fsa:RetainedEarningsMember 38170074 2023-01-01 2023-12-31 fsa:InvestmentPropertyMember iso4217:DKK pure Årsrapport 33771231 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab Strandvejen 44 2900 Hellerup 2023-01-01 2022-01-01 2023-12-31 2022-12-31 38170074 AG-NREP Udlejningsboliger BF 1.5 ApS Southamptongade 4 2150 Copenhagen København 2016-11-04 Nordea PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab 33771231 Strandvejen 44 2900 Hellerup Denmark 39 45 39 45 koebenhavn@pwc.dk 2024-03-01 Mark Raine Regnskabsklasse B Revisionspåtegning The Executive Board and Board of Directors have today considered and adopted the Annual Report of AG-NREP Udlejningsboliger BF 1.5 ApS for the financial year 1 January - 31 December 2023. The Annual Report is prepared in accordance with the Danish Financial Statements Act. In our opinion the Financial Statements give a true and fair view of the financial position at 31 December 2023 of the Company and of the results of the Company operations for 2023. We recommend that the Annual Report be adopted at the Annual General Meeting. 2024-03-01 Copenhagen Jacob Nowak Chemnitz Rune Højby Kock Chairman Sune Ingemann Stine Seneberg Thomas Ebbe Riise-Jakobsen To the shareholder of AG-NREP Udlejningsboliger BF 1.5 ApS Opinion In our opinion, the Financial Statements give a true and fair view of the financial position of the Company at 31 December 2023 and of the results of the Company´s operations for the financial year 1 January - 31 December 2023 in accordance with the Danish Financial Statements Act. We have audited the Financial Statements of AG-NREP Udlejningsboliger BF 1.5 ApS for the financial year 1 January - 31 December 2023, which comprise income statement, balance sheet, statement of changes in equity and notes, including a summary of significant accounting policies (”the Financial Statements”). Basis for Opinion We conducted our audit in accordance with International Standards on Auditing (ISAs) and the additional requirements applicable in Denmark. Our responsibilities under those standards and requirements are further described in the ”Auditor’s responsibilities for the audit of the Financial Statements” section of our report. We are independent of the Company in accordance with the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical requirements applicable in Denmark, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Management is responsible for the preparation of financial statements that give a true and fair view in accordance with 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 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 in preparing the Financial Statements unless Management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. Our objectives are to obtain reasonable assurance about whether the Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Financial Statements. As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the Financial Statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the 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 in preparing the Financial Statements and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the 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 Company to cease to continue as a going concern. Evaluate the overall presentation, structure and contents 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. 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. Hellerup 2024-03-01 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab Mikael Johansen State Authorised Public Accountant mne23318 Kristian Rath State Authorised Public Accountant mne42817 -18147626 6075939 -16472405 7935851 507 451 6016938 5070813 -22488836 2865489 -2498356 796119 -19990480 2069370 -19990480 2069370 122232749 140358398 122232749 140358398 122232749 140358398 112044 446526 102809 127551 0 79619 21958 26726 236811 680422 1883498 1699183 2120309 2379605 124353058 142738003 1940000 1940000 -4777133 15213347 -2837133 17153347 0 2282212 0 2282212 46757763 40798987 76294945 78159041 123052708 118958028 1868020 1450364 381323 421706 537499 1093805 1350635 1378541 6 0 4137483 4344416 127190191 123302444 124353058 142738003 1940000 15213347 0 -19990480 1940000 -4777133 The Company's key activity is to conduct business with planning, development, construction and rental of the property for the purpose of resale as well as other related activities. 507 451 507 451 4958775 4533917 1053180 529629 4983 7267 OtherFinanceExpenses 6016938 5070813 0 -79619 -2282213 969676 -216143 -93938 -2498356 796119 116699638 21978 116721616 23658759 -18147626 5511133 122232749 Assumptions underlying the determination of fair value of investment properties Investment properties are measured at fair value. The fair value is calculated by using generally accepted valuation methods (DCF´s calculations) based on Management´s expectations for future cash flows, return requirements etc. The fair value adjustment for the year has been recognised in the Income Statement. The fair value of Upcycle Studios has been calculated based on the following assumptions: The fair value of investment properties amounts to 122232749 Value adjustment, income statement -18147626 Average WACC 6.13% Average inflation assumption 2% Exit yield 4.13% Budget period 10 Terminal period 11 Average vacancy, budget period 0% Average rent increase, budget period 1,493 Sqm 3,907 Rental income per sqm year 1 1,493 The fair value of Upcycle Studios has been calculated based on the following assumptions: The estimates applied are based on information and assumptions considered reasonable by Management but which are inherently uncertain and unpredictable. Actual events or circumstances will probably differ from the assumptions made in the calculations as often assumed events do not occur as expected. Such difference may be material. 0 0 46757763 40798987 46757763 40798987 0 0 63745664 66965165 12549281 11193876 76294945 78159041 1868020 1450364 Payments due within 1 year are recognised in short-term debt. Other debt is recognised in long-term debt. The debt falls due for payment as specified below: Subordinate loan capital Mortgage loans 0 0 Charges and security The following assets have been placed as security with mortgage credit institutes: Investment properties with a carrying amount of 122232749 140358398 Other contingent liabilities The group companies are jointly and severally liable for tax on the jointly taxed incomes etc of the Group. The total amount of corporation tax payable is disclosed in the Annual Report of Komplementarselskabet NSF II Denmark ApS, which is the management company of the joint taxation purposes. Moreover, the group companies are jointly and severally liable for Danish withholding taxes by way of dividend tax, tax on royalty payments and tax on unearned income. Any subsequent adjustments of corporation taxes and withholding taxes may increase the Company's liability. Consolidated Financial Statements The Company is included in the Group Annual Report of the Parent Company of the smallest group: Name Place of registered office NREP NSF II Holding 2 S.á.r.l. Luxembourg The Annual Report of AG-NREP Udlejningsboliger BF 1.5 ApS for 2023 has been prepared in accordance with the provisions of the Danish Financial Statements Act applying to enterprises of reporting class B as well as selected rules applying to reporting class C. The accounting policies applied remain unchanged from last year. The Financial Statements for 2023 are presented in DKK. 1 All expenses incurred to achieve the earnings for the year are recognised in the income statement, including depreciation, amortisation, impairment losses and provisions as well as reversals due to changed accounting estimates of amounts that have previously been recognised in the income statement. Assets are recognised in the balance sheet when it is probable that future economic benefits attributable to the asset will flow to the Company, and the value of the asset can be measured reliably. Liabilities are recognised in the balance sheet when it is probable that future economic benefits will flow out of the Company, and the value of the liability can be measured reliably. Assets and liabilities are initially measured at cost. Subsequently, assets and liabilities are measured as described for each item below. Danish kroner is used as the presentation currency. All other currencies are regarded as foreign currencies. Transactions in foreign currencies are translated at the exchange rates at the dates of transaction. Gains and losses arising due to differences between the transaction date rates and the rates at the dates of payment are recognised in financial income and expenses in the income statement. Receivables, payables and other monetary items in foreign currencies that have not been settled at the balance sheet date are translated at the exchange rates at the balance sheet date. Any differences between the exchange rates at the balance sheet date and the rates at the time when the receivable or the debt arose are recognised in financial income and expenses in the income statement. Revenue from rental income is recognised in the income statement at amounts relating to the financial year when revenue can be measured reliably and it is probable that the economic benefits will flow to the Company. Revenue is recognised exclusive of VAT and net of discounts. Revenue is measured at the consideration received and is recognised exclusive of VAT and net of discounts relating to sales Other external expenses comprise expenses for premises, sales as well as office expenses, etc. With reference to section 32 of the Danish Financial Statements Act, gross profit/loss is calculated as a summary of revenue and other external expenses. Financial income and expenses are recognised in the income statement at the amounts relating to the financial year. Tax for the year consists of current tax for the year and changes in deferred tax for the year. The tax attributable to the profit for the year is recognised in the income statement, whereas the tax attributable to equity transactions is recognised directly in equity. The Company is jointly taxed with Danish Group Enterprises. The tax effect of the joint taxation is allocated to enterprises in proportion to their taxable incomes. Investment properties constitute land and buildings held to earn a return on the invested capital by way of current operating income and/or capital appreciation on sale. On acquisition investment properties are measured at cost comprising the acquisition price and costs of acquisition. The cost of own constructed assets comprises the acquisition price and expenses directly related to the acquisition, including costs of acquisition and indirect expenses for labour, materials, components and supsuppliers up until the time when the asset is ready for use. Interest expenses on loans contracted directly for financing the construction of properties are recognised in cost over the construction period. In Management’s opinion the classification of the properties as investment properties did not cause any difficulties. Fair value is the amount for which the property could be exchanged between knowledgeable, willing parties in an arm's length transaction on the balance sheet date. The determination of fair value involves material accounting estimates. The fair value of investment properties has been assessed by the independent assessor firm Colliers at 31 December 2023 The estimates applied are based on information and assumptions considered reasonable by Management but which are inherently uncertain and unpredictable. Actual events or circumstances will probably differ from the assumptions made in the calculations as often assumed events do not occur as expected. Such difference may be material. The assumptions applied are disclosed in the notes. Discounted Cash Flow model The fair value of investment properties has been determined at 31 December 2023 for each property by using a Discounted Cash Flow model under which expected future cash flows are discounted to present value. The calculations are based on property budgets for the coming years. Allowance has been made for developments in rentals, vacancies, operating expenses, maintenance and administration, etc. The individual, budgeted cash flows are discounted at an individually fixed discount rate added a terminal value. The value thus calculated is adjusted for any non-operating assets such as cash and cash equivalents, deposits, etc if they are not shown separately in the balance sheet. The value thus calculated is adjusted for any non-operating assets such as cash and cash equivalents, deposits, etc if they are not shown separately in the balance sheet. Fair value is the amount for which the property could be exchanged between knowledgeable, willing parties in an arm's length transaction on the balance sheet date. The determination of fair valueinvolves material accounting estimates. After the initial recognition investment properties are measured at fair value. Value adjustments of investment properties are recognised in the income statement. Fair value is the amount for which the property could be exchanged between knowledgeable, willing parties in an arm's length transaction on the balance sheet date. The determination of fair value involves material accounting estimates. Investment properties constitute land and buildings held to earn a return on the invested capital by way of current operating income and/or capital appreciation on sale. On acquisition investment properties are measured at cost comprising the acquisition price and costs of acquisition. The cost of own constructed assets comprises the acquisition price and expenses directly related to the acquisition, including costs of acquisition and indirect expenses for labour, materials, components and supsuppliers up until the time when the asset is ready for use. Interest expenses on loans contracted directly for financing the construction of properties are recognised in cost over the construction period. In Management’s opinion the classification of the properties as investment properties did not cause any difficulties. Fair value is the amount for which the property could be exchanged between knowledgeable, willing parties in an arm's length transaction on the balance sheet date. The determination of fair value involves material accounting estimates. The fair value of investment properties has been assessed by the independent assessor firm Colliers at 31 December 2023 The estimates applied are based on information and assumptions considered reasonable by Management but which are inherently uncertain and unpredictable. Actual events or circumstances will probably differ from the assumptions made in the calculations as often assumed events do not occur as expected. Such difference may be material. The assumptions applied are disclosed in the notes. Discounted Cash Flow model The fair value of investment properties has been determined at 31 December 2023 for each property by using a Discounted Cash Flow model under which expected future cash flows are discounted to present value. The calculations are based on property budgets for the coming years. Allowance has been made for developments in rentals, vacancies, operating expenses, maintenance and administration, etc. The individual, budgeted cash flows are discounted at an individually fixed discount rate added a terminal value. The value thus calculated is adjusted for any non-operating assets such as cash and cash equivalents, deposits, etc if they are not shown separately in the balance sheet. The value thus calculated is adjusted for any non-operating assets such as cash and cash equivalents, deposits, etc if they are not shown separately in the balance sheet. Fair value is the amount for which the property could be exchanged between knowledgeable, willing parties in an arm's length transaction on the balance sheet date. The determination of fair valueinvolves material accounting estimates. After the initial recognition investment properties are measured at fair value. Value adjustments of investment properties are recognised in the income statement. Fair value is the amount for which the property could be exchanged between knowledgeable, willing parties in an arm's length transaction on the balance sheet date. The determination of fair value involves material accounting estimates. The carrying amounts of intangible assets and property, plant and equipment and investments are reviewed on an annual basis to determine whether there is any indication of impairment other than that expressed by amortisation and depreciation. If so, the asset is written down to its lower recoverable amount. Receivables are measured in the balance sheet at the lower of amortised cost and net realisable value, which corresponds to nominal value less provisions for bad debts. Prepayments comprise prepaid expenses concerning rent, insurance premiums, subscriptions and interest. Deferred income tax is measured using the balance sheet liability method in respect of temporary differences arising between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes on the basis of the intended use of the asset and settlement of the liability, respectively. Deferred tax assets, including the tax base of tax loss carry-forwards, are measured at the value at which the asset is expected to be realised, either by elimination in tax on future earnings or by set-off against deferred tax liabilities within the same legal tax entity. Deferred tax is measured on the basis of the tax rules and tax rates that will be effective under the legislation at the balance sheet date when the deferred tax is expected to crystallise as current tax. Any changes in deferred tax due to changes to tax rates are recognised in the income statement or in equity if the deferred tax relates to items recognised in equity. Current tax liabilities and receivables are recognised in the balance sheet as the expected taxable income for the year adjusted for tax on taxable incomes for prior years and tax paid on account. Extra payments and repayment under the on-account taxation scheme are recognised in the income statement in financial income and expenses. Loans, such as mortgage loans, are recognised initially at the proceeds received net of transaction expenses incurred. Subsequently, the loans are measured at amortised cost; the difference between the proceeds and the nominal value is recognised as an interest expense in the income statement over the loan period. Other debts are measured at amortised cost, substantially corresponding to nominal value.