A glance at Phoenix Spree Deutschland’s (PSDL) performance in 2017 shows just how vibrant the property market is in Germany. A growing economy, a persistent supply shortfall, and an increasing population have combined to provide a shot in the arm for the residential real-estate market, reflected in significant price increases in many cities since 2009 – the starting point of the current real-estate cycle.
Some impressive metrics include a near-trebling in the valuation uplift in the portfolio to €157m (£138m), while gross rental income grew by 13.5 per cent to €18.1m. These helped to boost adjusted net asset value by an astonishing 51 per cent to 411¢
With vacancy rates of just 2.9 per cent, rents were driven higher, rising by 8.4 per cent in Berlin to €8.4 per square metre. But there remains significant reversionary value yet to be crystallised because rents on new lettings stood at €10.3 per sq m, up 7.9 per cent.
Proceeds from selling condominiums were up nearly 200 per cent at €9.5m, and as a result of acquisitions and disposals made during the year, the portfolio is now centred on property in Berlin, where new leases are being signed at a 40.1 per cent premium to in-place rents, and rose to 45.7 per cent in the last quarter of 2017.
| PHOENIX SPREE DEUTSCHLAND (PSDL) | ||||
| ORD PRICE: | 361p | MARKET VALUE: | £334m | |
| TOUCH: | 361-367p | 12-MONTH HIGH: | 399p | LOW: 242p |
| DIVIDEND YIELD: | 1.8% | TRADING PROPERTIES: | €107m | |
| DISCOUNT TO NAV: | 9% | NET DEBT: | 53% | |
| INVESTMENT PROPERTIES: | €502m | |||
| Year to 31 Dec | Net asset value (¢) | Pre-tax profit (€m) | Earnings per share (¢) | Dividend per share (¢) |
| 2014 | 216 | 8.5 | 16.0 | nil |
| 2015 | 213 | 13.0 | 14.0 | 5.8 |
| 2016 | 253 | 48.9 | 42.0 | 6.3 |
| 2017 | 396 | 138 | 121 | 7.3 |
| % change | +57 | +183 | +188 | +16 |
| Ex-div: | 7 Jun | |||
| Payment: | 29 Jun | |||
| £1=€1.144 | ||||
