Business
Statement Re Share Price Movement
Statement Re Share Price Movement.
About this update from Phoenix Spree Deutschland Ltd
[{"type":"text","content":"\n\n13 March 2024\n \n \nPhoenix Spree Deutschland Limited\n(the \"Company\", the \"Group\" or \"PSD\")\n \nStatement Re Share Price movement\n \nThe 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.\n \nThe 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.\n \nThe 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.\n \nStrong rental market\n· Growing shortage of available rental property in Berlin continues to drive strong market rental growth.\n· 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.\n· Berlin EPRA vacancy of 1.6 per cent (2022: 2.4 per cent) at a record low.\n· New rent table (Mietspiegel), expected to be released in May 2024 and result in material in-place rent growth.\n \nCondominium sales accelerating\n· 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.\n· A strong start to 2024 to date, with 4 further condominiums notarised for a combined value of €1.9 million.\n· 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.\n \nStrategy and Outlook\n· Strategy of increasing asset sales (both as individual condominiums a...