Phoenix Spree Deutschland (PSD) is a long-term investor in mid-market residential property in Berlin, targeting reliable income and capital growth. Its core strategy is to acquire unmodernised apartment blocks that may be improved to the benefit of tenants, generating attractive returns for shareholders.
Demographic trends in the Berlin market remain positive, providing continuing support for the rental market. Rising interest rates, inflation and economic uncertainty are depressing private buyer and institutional investment demand, and continue to weigh on capital values.
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Richard Collins
COO
Stuart Young
Partner, head of public markets
Forecast net debt (€m)
N/A
Forecast gearing ratio (%)
N/A
% | 1M | 3M | 12M |
---|---|---|---|
Actual | 2.9 | 11.2 | 10.8 |
Relative | 4.8 | 11.4 | 0.0 |
52 week high/low | 182.5p/124.5p |
Phoenix’s (PSD’s) H124 results contrast the strength of the Berlin private rental sector with the subdued investment market, which continued to weigh on property valuations. H124 new lettings were at an average 31% premium to previous passing rents, while EPRA vacancy reached an all-time low of 1.4%. Property valuations continued to weaken, but at a slower rate (-3.3% like-for-like vs 5.3% in H223) and are now almost 20% below the mid-2022 peak. Condominium sales are recovering with aggregate H124 notarisations of €5.3m (H123: €2.0m) at a 23% premium to portfolio book value. Agreed changes to PSD’s financing arrangements pave the way for a significant increase in the sale of condominiums (78% of total portfolio) subject to completion of the sale of a 16-building rental portfolio and debt reduction.
Y/E Dec | Revenue (€m) | EBITDA (€m) | PBT (€m) | EPS (c) | P/E (x) | P/CF (x) |
---|---|---|---|---|---|---|
2022A | 15.7 | (36.5) | (17.5) | (16.8) | N/A | 117.2 |
2023A | 15.9 | (95.2) | (111.8) | (106.8) | N/A | 28.8 |
2024E | N/A | N/A | N/A | N/A | N/A | N/A |
2025E | N/A | N/A | N/A | N/A | N/A | N/A |