Dato for ledelsens godkendelse af årsrapporten:2023-12-08
Ledelsespåtegning:Statement by the Board of Directors
Beskrivelse af usikkerhed ved indregning eller måling:Recognition and measurement uncertaintiesInvestments in property investments are measured at fair value. The measurement includes accountingestimates and is, therefore, subject to uncertainty.
Beskrivelse af usædvanlige forhold, der kan have påvirket indregningen eller målingen:Uncertainty in the global markets driven by geopolitical risksThe financial year 2022/23 has been one of continued uncertainty on the back of geopolitical issuesaround the world and not least in Europe with the Russian war against Ukraine. In addition, we have seen tight labour markets and wage inflation during the year and a generally highinflationary environment. However, we are starting to see inflation levels coming down due to decreas-ing energy prices and within the real estate construction industry, we also see the cost of raw materialsreturning to normal prices. In reaction to increased inflation, the rising interest rates have impacted real estate capital markets ma-terially, leading to a significant drop in transaction volumes across the globe. With the magnitude of in-creased interest rates the risk premium for real estate has expanded and sellers and buyers are stillsomewhat separated on the market, although some markets have adjusted more quickly like the UnitedKingdom. Traditional bank debt availability is much more limited and at lower loan to value ratios, whichhas had an impact on both prices and transaction activity. As a consequence, we have experienced lim-ited sales activities in PMM Global V9s portfolio during the financial year. The aftermath of Covid-19 has had severe effect on some of the traditional strong cosmopolitan officemarkets, especially in the US, where office usage levels are far from prior levels and office occupiers arereconsidering their space requirements. On top of this, ESG matters and the decarbonization demand isbeing emphasized by occupiers, investors and not least by regulatory environmental requirements. Thisrequires additional CAPEX measures to be taken into consideration especially for older office stock. All these external factors influence the pricing of real estate and the reduced liquidity makes it more dif-ficult for valuers to determine fair value. The increase in base interest rates, margin pressure and re-duced leverage levels have had and will for some markets still have an impact on real estate valuations. For some markets and especially within residential and industrial, we have seen rental inflation partiallyoff-set some of the aforementioned negative price adjustments. However, the end result varies depend-ing on sector, project type and location of the specific assets. In light of the difficult and uncertain times described above we have been able to take advantage of themarket and completed two attractive investments, one within residential in Berlin, Germany and onewithin industrial in Birmingham, UK during the financial year for PMM Global V. Hence, the portfolio hasgrown to a total of 11 active investments at the end of the financial year. These 11 investments hold atotal of 138 underlying assets. PMM Global V still has approximately 9% of its capital to commit and has identified three specific invest-ments, which will be completed within nine months from the end of the financial year in accordance withthe Fund documentation.
Statement by Management on the annual report
Identifikation af den godkendte årsrapport:Today, the Management has discussed and approved the annual report of PMM Global V K/ S for thefinancial year 1 October 2022 - 30 September 2023.
Management's review
Beskrivelse af virksomhedens væsentligste aktiviteter:Business reviewPMM Global V K/S' business concept is investment in and management of indirect investments in foreignproperty via international partners.