reports
- Martyn King
Phoenix Spree Deutschland - Accelerating the unlocking of value
While the Berlin private rental market continues to be strong, Phoenix Spree Deutschland (PSD) has adapted its historical rent reversion strategy to the changes in market conditions. It plans a material increase in condominium sales, intended to accelerate the unlocking of value embedded in the portfolio, reduce borrowings and better position the company for refinancing in 2026. In this report we analyse in detail the potential impacts of this strategy on earnings, NAV and gearing, but, given th...
- Martyn King
Phoenix Spree Deutschland - One city but two tales
Phoenix Spree Deutschland’s (PSD’s) trading update contrasts the strength of the Berlin private rental sector, reflected in PSD’s increased rents and low vacancy, with the subdued investment market, which continues to weigh on property valuations. Positively, sales of individual condominiums picked up in H223, underlining the strong premium to rental values. Full year results, to 31 December 2023, are due in late April.
- Martyn King
Phoenix Spree Deutschland - To buy or to rent?
A trading update from Phoenix Spree Deutschland (PSD) shows that the core rental business remained strong in H123 although property values declined further, and transactions activity remains subdued. It notes some recent signs of improved buyer interest in the condominium market, but it remains too early to call a turn. We will review our estimates when interim results are released in late September. H123 rental growth is ahead of our expectations but revaluation indicates downwards pressure on ...
- Martyn King
Phoenix Spree Deutschland - Stress-testing the challenges
Phoenix Spree Deutschland’s (PSD’s) core rental business continues to perform well as the demand-supply balance for Berlin rented residential accommodation remains tight. However, the challenging economic backdrop has negatively affected property values, NAV and condominium sales. While DPS has been paused to maintain cash flow for value-creating portfolio investment, PSD remains conservatively financed, with 83% of debt costs fixed/hedged and no debt maturities until 2026.
- Martyn King
Phoenix Spree Deutschland - Valuation decline but sales premium contin...
While German macroeconomic conditions are challenging, the fundamental demand-supply balance for Berlin rented residential accommodation remains robust. Phoenix Spree’s (PSD’s) FY22 property values and NAV declined, but condominium sales continue to generate a strong premium to book value. We expect rental growth also when results are released in March, as the company continues to harvest strong rent reversion.
- Martyn King
Phoenix Spree Deutschland - Well positioned for market turbulence
In a challenging environment, we expect Phoenix Spree Deutschland (PSD) to show continuing rental growth but weaker capital returns from slower condominium sales and market-wide yield widening. Demographic trends remain positive, and reversionary rent potential embedded within the portfolio remains strong. Gearing is modest and debt costs are fixed.
- Martyn King
Phoenix Spree Deutschland - Progress in a more challenging environment
In an increasingly challenging environment, Phoenix Spree Deutschland (PSDL) has reported ongoing growth in rents and portfolio values for H122. Demographic trends within the Berlin residential market remain positive and the company continues to unlock reversionary rent potential. Rising interest rates and increased uncertainties have nonetheless slowed condominium notarisations. We will review our forecasts with the interim results that PSDL expects to release during the last week of September.
Phoenix Spree Deutschland (PSDL): Positive return to core strategy
Edison Investment Research Limited Phoenix Spree Deutschland (PSDL): Positive return to core strategy 13-May-2022 / 07:00 GMT/BST London, UK, 13 May 2022 Phoenix Spree Deutschland (PSDL): Positive return to core strategy Driven by a continuing housing shortage, Berlin residential property rents and condominium prices have continued to increase over the past year. Having successfully weathered the now repealed rent restrictions, we expect Phoenix Spree Deutschland (PSD) to continue to extract the significant value embedded in its portfolio successfully despite the uncertainti...
- Martyn King
Phoenix Spree Deutschland - Positive return to core strategy
Driven by a continuing housing shortage, Berlin residential property rents and condominium prices have continued to increase over the past year. Having successfully weathered the now repealed rent restrictions, we expect Phoenix Spree Deutschland (PSD) to continue to extract the significant value embedded in its portfolio successfully despite the uncertainties of rising inflation and interest rates and war in Ukraine.
- Martyn King
Phoenix Spree Deutschland - Delivering on reversion strategy
With rent restrictions (the ‘Mietendeckel’) repealed, the Berlin residential property market has remained robust, with free market rents and condominium prices increasing further amid a continuing housing shortage. FY21 performance for Phoenix Spree Deutschland (PSD) mirrors these trends and its extensive refurbishment programme targets further release of the strong rent reversion potential of its portfolio.
- Martyn King
Phoenix Spree Deutschland - Delivering on reversion strategy
With rent restrictions (the ‘Mietendeckel’) repealed, the Berlin residential property market has remained robust, with free market rents and condominium prices increasing further amid a continuing housing shortage. FY21 performance for Phoenix Spree Deutschland (PSD) mirrors these trends and its extensive refurbishment programme targets further release of the strong rent reversion potential of its portfolio.
- Martyn King
Phoenix Spree Deutschland - Good H1 growth and return to core strategy
Although rent controls (the ‘Mietendeckel’), ruled unlawful and repealed in April 2021, disrupted the Berlin residential property market, this has not prevented free market rents and condominium prices from increasing further amid a continuing housing shortage. Against this background, H121 results from Phoenix Spree Deutschland (PSD) showed good progress as it resumes its core rent reversion strategy.
- Martyn King
Phoenix Spree Deutschland - Good H1 growth and return to core strategy
Although rent controls (the ‘Mietendeckel’), ruled unlawful and repealed in April 2021, disrupted the Berlin residential property market, this has not prevented free market rents and condominium prices from increasing further amid a continuing housing shortage. Against this background, H121 results from Phoenix Spree Deutschland (PSD) showed good progress as it resumes its core rent reversion strategy.
- Martyn King
Phoenix Spree Deutschland - Flexibility to extract value
The repeal of the Berlin rent cap (the ‘Mietendeckel’), ruled unconstitutional, is a significant positive for Phoenix Spree Deutschland (PSD). It allows a resumption of its core reversionary rent strategy, providing greater flexibility in the extraction of the value embedded in the portfolio. With a continuing discount to net assets, the board has stepped up the share repurchase programme, aiming to ensure that the share price better reflects its view of intrinsic value and the improved outlook.
- Martyn King
Phoenix Spree Deutschland - Continuing strong returns despite rent cap
The Berlin rent cap has disrupted the market, but with a continuing housing shortage and new investment curtailed, free-market rents and condominium prices continued to increase in FY20, driving continuing strong returns for Phoenix Spree Deutschland (PSD). As discussed in detail in our December initiation note, pending a resolution of the rent cap legal challenge, PSD has sought to mitigate the effects while maintaining strategic flexibility; a resolution, which PSD expects by mid-year, will de...
- Martyn King
Phoenix Spree Deutschland - H220 valuation growth and NAV exceeds fore...
The Berlin residential property market remained resilient in H220 despite COVID-19 and introduction of the rent cap. Phoenix Spree Deutschland (PSD) saw a 6.3% like-for-like increase in FY20 valuations, supporting strong growth in EPRA NAV per share, above our forecast. As discussed in detail in our December initiation note, pending a resolution of the rent cap legal challenge, PSD has sought to mitigate the effects while maintaining strategic flexibility; a resolution, which PSD expects by mid-...
- Martyn King
Phoenix Spree Deutschland - Continuing to realise embedded value
H220 condominium sales increased strongly at a healthy c 20% average premium to book value and disposal proceeds have supported continuing share repurchases at a c 30% discount to net asset value (NAV), enhancing value creation. As discussed in detail in our December initiation note, pending a resolution of the rent cap legal challenge, so far Phoenix Spree Deutschland (PSD) has sought to mitigate the effects while maintaining strategic flexibility; a resolution, which PSD expects mid-year, will...
Phoenix Spree Deutschland (PSDL): Rent cap decision will determine str...
Edison Investment Research Limited Phoenix Spree Deutschland (PSDL): Rent cap decision will determine strategy 07-Dec-2020 / 08:00 GMT/BST London, UK, 7 December 2020 Phoenix Spree Deutschland (PSDL): Rent cap decision will determine strategy Phoenix Spree Deutschland (PSD) is a pure play on Berlin residential property, where excess demand drives free market rent growth. H120 financial performance was robust despite the COVID-19 pandemic and the first effects of Berlin rent controls. Recent full implementation of the legislation will significantly reduce FY21 rental income and ...
Phoenix Spree Deutschland Ltd: 1 director maiden bought
A director at Phoenix Spree Deutschland Ltd maiden bought 7,337 shares at 271p and the significance rating of the trade was 52/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last ...
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