Phoenix Spree’s (PSD’s) FY23 results contrast the strength of the Berlin private rental sector, reflected in increased rents and low occupancy, with the subdued investment market, which continued to weigh on property valuations. FY23 new lettings were at a record €13.7/sqm, 5.9% above the FY22 average, and a 31% premium to passing rents and in-place rents of €10.4/sqm continue to offer significant reversionary potential. Sales of individual condominiums picked up in H223, underlining the strong premium to rental values. FY24 has started well, with €3.4m of notarisations at the time of reporting, with two rental properties also notarised for €4.8m. PSD is seeking to modify its financing arrangements to significantly increase the number of individual condominium units (78% of the total portfolio) that can be made available for sale, to unlock value and pay down debt. It aims for sales of >€50m by 2025. FY23 valuations were 11.9% lower on a l-f-l basis and EPRA net tangible assets/share fell to €3.96 (H123: €4.46). LTV was 46.3%.