The fundamental demand-supply balance for Berlin rented residential accommodation remains robust but rising bond yields and challenging economic conditions have reduced investor activity and negatively affected property valuations. Phoenix Spree’s (PSD’s) FY22 portfolio valuation was 3.1% lower on a like-for-like basis, with a 5.2% H2 decline offsetting the 2.1% H1 gain. As previously indicated by the company, FY22 condominium sales were negatively affected by market conditions but positively, the premium to book value on condominium notarisations (22.4%) continued despite weaker volumes (€4.7m vs €15.2m in FY21). PSD expects to continue to benefit from rent reversion built into the portfolio and is well-placed for a medium-term recovery in condominium sales, with 76% of units designated as such. Interest costs are fixed at 2.1% until 2026. With results in late March, PSD expects to report FY22 EPRA NTA per share within a range of €5.09–5.14.