Phoenix Spree Deutschland (LSE: PSDL.LN), the UK listed investment company specialising in Berlin residential real estate, today announces its interim year results for the six months ended 30 June 2018.  Highlights below. For a full copy of the RNS announcement please click HERE or visit the PSD website HERE.


Financial highlights

  • Annualised like-for-like rental income up 11.4% to €14.5 million (six months to 30 June 2017: €13.1 million).
  • Following the sale of Nuremberg & Fürth and Northern German portfolios, reported gross rental income of €9.1 million (six months to 30 June 2017: €9.5 million).
  • Strong like-for-like rent per sqm growth of 9.9% (six months to 30 June 2017 5.0%).
  • EPRA NAV per share up 2.9% in H1 2018 to €4.23 per share (31 December 2017: €4.11).
  • EPRA NAV per share total return in H1 2018 of 4.1% (six months to 30 June 2017: 23.7%).
  • Profit before tax down 69.3% year-on-year to €19.4 million (six months to 30 June 2017 €63.1 m), due to lower net valuation gains after exceptionally strong prior year.
  • Net loan to value of 25.8% at 30 June 2018 (31 December 2017: 31.6%). Average debt maturity now exceeds 8.1 years, with average interest rate of 2.1%.
  • Increased first half dividend of €2.35 cents (GBP 2.1 pence), up 3.1% year-on-year (30 June 2017: €2.28 cents (GBP 2.0 pence)).

Operational highlights

  • Like-for-like Portfolio value, adjusting for impact of acquisitions net of disposals, increased by 5.4% in H1 2018. Berlin like-for-like increase of 5.3% in H1 2018.
  • Aggregate reported Portfolio value decreased by 4.2% to €583.7 million (31 December 2017: €609.3 million), reflecting impact of previously announced North German asset disposals.
  • EPRA vacancy declined to 2.8% (30 June 2017: 3.7%).
  • Condominium sale completions up 9.2% to € 5.7 million (six months to 30 June 2017: €5.2 million). Average achieved value per sqm of €4,477 on sold units, a 34.9% premium to Berlin average value per sqm at 30 June 2018, based on Jones Lang LaSalle valuation.
  • Investment of €3.4 million in Berlin renovations and modernisations during H1 2018, a new six-month high.
  • Significant embedded value remains within the Portfolio: new leases in Berlin signed at an average 40.6% premium to passing rents.

Transition to pure-play Berlin portfolio now complete

  • Targeted acquisition and disposal strategy has created a focussed Berlin portfolio, offering potential for greater economies of scale.
  • Disposal of Central and Northern Germany portfolio completed in April 2018 for €73.0 million, a 26% premium to the Jones Lang LaSalle valuation as at 30 June 2017.
  • Contracts to acquire 173 units notarised in H1 2018 for an aggregate value of €27.6 million, representing an average price per sqm of €2,423.
  • As at 25th September, contracts to acquire a further 37 units notarised for an aggregate value of €6.5 million, representing an average price per sqm of €2,230.


  • Berlin demographic trends remain favourable with continuing population growth and job creation, a supply-demand imbalance of available rental stock and a high cost of new-build.
  • Yield compression in the Berlin market is expected to moderate, after a multi-year period of declining property yields.
  • Significant potential remains in the Portfolio to create value through reversionary letting and condominium sales.
  • Potential for further value enhancing acquisitions, helped by strong balance sheet with long-term fixed rate debt and low interest rates.

Robert Hingley, Chairman of Phoenix Spree Deutschland, commented:

“I am pleased to announce that the Company has maintained its record of consistent increases in underlying rental growth, property values and EPRA NAV. The Company has continued successfully to concentrate and enlarge its presence in Berlin following the sale of our Northern German portfolio. Despite increased competition, the Company has made further value-enhancing Berlin acquisitions and the strength of our balance sheet will enable us to continue to grow the Portfolio through further, selective acquisitions.

Berlin property values have grown at a significant rate in recent years and, although the demographics remain compelling, this suggests that scope for further market yield compression is now more limited.  However, the Board continues to see significant embedded value within the Portfolio, as demonstrated in the first half of the year by improving rents and further condominium sales at a premium to the Portfolio’s rental property valuations. The Board looks forward to the second half of this year with confidence.”