Phoenix Spree Deutschland’s (PSDL’s) H122 performance was robust. Rents, property values and NAV all increased. NAV total return was 2.2% and DPS declared was unchanged. PBT was lower (€17.0m vs €20.4m in H121), but the continuing Berlin re-letting premium (33.7%) and premium to book value on condominium notarisations (19.2%) highlight the considerable value embedded in PSD’s portfolio even though volumes weakened (€3m vs €4.3m in H121) as a result of higher interest rates and increasing the cost of home ownership. PSD expects that condominium sales for the full year will be materially lower than in FY21, reducing cash flow. Rising bond yields will likely be reflected in asset values. Despite these headwinds, demographic trends remain positive, and PSD continues to benefit from significant rent reversion. With 76% of units designated as such, from a medium-term recovery in condominium sales. Gearing is modest (36% LTV) and interest costs are fixed at 2.1% until 2026. Our estimates are under review.