13
March 2024
Phoenix Spree Deutschland
Limited
(the "Company", the "Group"
or "PSD")
Statement Re Share Price
movement
The Board of Phoenix Spree
Deutschland Limited (LSE: PSDL.LN), the UK listed investment
company specialising in Berlin residential real estate, notes the
recent movement in the Company's share price.
The board believes that this
reflects index reweighting ahead of the removal of the Company from
the FTSE EPRA index, which will become effective on Monday
18th March. The Board can confirm that it is not aware
of any adverse material change relating to the Company's trading,
which remains consistent with the business update issued on 7
February, highlights of which are reiterated below.
The Board considers the current
share price, which values the Company at a 67 per cent
discount to the most recently published EPRA NTA, and implies a
value per square metre of approximately half the cost of
construction, does not reflect the value of the underlying assets
within the Portfolio.
Strong rental market
·
Growing shortage of available rental property in
Berlin continues to drive strong market rental growth.
·
New lettings across the Portfolio signed at an
average premium of 31 per cent to passing rents, or €13.7 per sqm,
a new record high, and a 5.9 per cent increase versus
2022.
·
Berlin EPRA vacancy of 1.6 per cent (2022: 2.4 per
cent) at a record low.
·
New rent table (Mietspiegel), expected to be
released in May 2024 and result in material in-place rent
growth.
Condominium sales accelerating
·
Condominiums notarised for sale during H2 2023 of
€5.2 million, a 206 per cent increase versus H2 2022, resulting in
total sales of €7.2m for 2023.
·
A strong start to 2024 to date, with 4 further
condominiums notarised for a combined value of €1.9
million.
·
Material gap between the per sqm valuation of
condominium units versus rental unit equivalents, with sales prices
per sqm of €4,885 per vacant unit compared to a portfolio average
of €3,587 per sqm for rental units held within the
portfolio.
Strategy and Outlook
·
Strategy of increasing asset sales (both as
individual condominiums and multi-unit assets), reducing debt and,
ultimately, returning excess capital to investors from disposals
remains the Company's priority.
·
Since the onset of the current real estate
downturn, there has been a significant widening in the valuation
premium that condominium units command versus their rental
equivalents.
·
With over 1,900 units, representing 77 per cent of
the Portfolio, now split as condominiums, PSD is uniquely placed in
the listed marketplace to benefit from this trend.
·
The company is examining strategic options, which
will allow for a significant increase in the number of individual
units which can be made available for sale in the
future.
Full Year Results
The Company will report its
full-year results, together with a comprehensive update on its
strategy, on 30 April 2024.
For
further information, please
contact:
|
Phoenix Spree Deutschland
Limited
Stuart
Young
|
+44 (0)20 3937 8760
|
|
Numis Securities Limited (Corporate
Broker)
David Benda
|
+44 (0)20 3100 2222
|
|
Teneo (Financial
PR)
Lizzie Snow / Annushka
Shivnani
|
+44 (0)20 7353 4200
|