Phoenix Spree Deutschland (LSE: PSDL.LN), the UK listed investment company specialising in German residential real estate, announces its Interim Results for the six months ended 30 June 2016.

First half financial highlights

  • Profit before tax up 71.4% on H1 2015 to €15.7 million
  • EPRA NAV per share up 6.1% in H1 2016 to €2.42 per share
  • EPRA NAV per share total return for H1 2016 of 7.8%
  • H1 dividend of 1.60p (1.92 Euro cents), up 23% on H1 2015
  • Share placing successfully completed in March 2016, raising gross proceeds of £38m

Operational highlights

  • Portfolio value increased by 16.7% in H1 2016, and by 9.8% on a like-for-like basis, to €329.8 million
  • Berlin posted largest like-for-like increase at 13.7%
  • Annual like-for-like rent per sqm growth of 5.7%
  • Reversionary rent strategy continued: new leases signed at 26.4% premium to passing rents
  • Two properties acquired for €6.1m in H1 2016, with a further four already notarised in H2 for a value of €33.7m
  • Berlin now represents in excess of 70% of portfolio by value

Outlook

  • Berlin property market outlook remains favourable, underpinned by low interest rates and lack of supply
  • Significant potential to create value through reversionary letting and condominium sales
  • Further scope for growth in property values, particularly in Central Berlin
  • Strong balance sheet, with capacity to fund attractive pipeline of acquisition opportunities
  • Company on track to deliver target annual return of 8-10% per annum

Robert Hingley, Chairman of Phoenix Spree Deutschland, commented:

“I am delighted to announce today’s results, which demonstrate further growth in rents and property values resulting in an EPRA NAV per share total return of 7.8% for the half year. The Company continues to take advantage of the strong reversionary rental potential that exists within the Company’s portfolio, including the opportunity to create value through the sale of apartment blocks as condominiums. German residential property remains an attractive asset class, particularly in Berlin, and the Company is well placed to grow its portfolio in order to benefit from strong market fundamental.”

For further information please contact:

Phoenix Spree Deutschland
Stuart Young                                                                         +44 (0)20 3937 8760

Liberum Capital Limited (Corporate Broker) 
Richard Crawley                                                                   +44 (0)20 3100 2222
Christopher Britton

Bell Pottinger (Financial PR)  
Elizabeth Snow                                                                     +44 (0)20 3772 2500