Phoenix Spree Deutschland

Overview
Price performance
Financials
Research
Thematics

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.

Latest Insights

Real Estate |
Outlook

26.06.24

Phoenix Spree Deutschland — Accelerating the unlocking of value

Real Estate |
Update

19.02.24

Phoenix Spree Deutschland — One city but two tales

Real Estate |
Update

14.08.23

Phoenix Spree Deutschland — To buy or to rent?

Real Estate |
Update

31.05.23

Phoenix Spree Deutschland — Stress-testing the challenges

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Sector

Real Estate

Equity Analyst

Martyn King

Director, Financials

Key Management

Richard Collins

COO
Stuart Young

Partner, head of public markets

Balance Sheet

Forecast net debt (€m)

N/A

Forecast gearing ratio (%)

N/A

Share Price Performance

Price Performance
%	1M	3M	12M
Actual	(1.0)	9.9	6.5
Relative	2.5	12.6	(1.4)
52 week high/low	182.5p/124.5p

Financials

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.