Maiden half-year results from Phoenix Spree Deutschland (PSDL) saw the German residential real estate landlord deliver a strong performance, with pre-tax profit up 87 per cent at €9.1m (£6.7m), almost entirely as a result of a €9m valuation uplift, while adjust net asset value (NAV) rose 6.3 per cent to 219¢ a share. And after stripping out exceptional items, NAV grew by 8.1 per cent to 223¢.
In a busy six months, the company refinanced a large part of its long-term borrowings, securing a €68m seven-year loan facility at a fixed 1.8 per cent. It also acquired its sister fund, Phoenix Spree Property Fund (PSPF), for €41.5m, and moved from Aim to a main market listing in London.
Strong demand for rental property meant that new leases were signed at a 24.6 per cent premium to rents already in place. Rental income grew by 2 per cent organically, but jumped by two-thirds when including the PSPF acquisition. Organic growth would have been more without the effects of an ongoing apartment upgrade programme.
