Phoenix Spree Deutschland: Full year results for the twelve months ended 31st December 2016
2015 was a landmark year for Phoenix Spree Deutschland (LSE: PSDL.LN), the UK listed investment company specialising in German residential real estate, which today announces its full year results for the year ended 31 December 2015.
The acquisition of Phoenix Spree Property Fund, a successful debt refinancing and the listing on the Main Market of the London Stock Exchange in June 2015 have provided the Company with a platform from which to take advantage of the structurally attractive German residential market.
FINANCIAL HIGHLIGHTS
- Pre-exceptional Profit Before Tax up 132% to €19.7 million (31 December 2014: €8.5 million)1
- Portfolio value rose by 15.3% from €245.3m to €282.8m during the year, or 10.6% on a like-for-like basis2
- 2015 EPRA NAV per share grew by 10.7% to €2.28 (£1.67) (31 December 2014: €2.06 (£1.60))
- Strong letting performance Rent per square metre rose by 9.5% to €7.5 (4.8% on a like-for-like basis)2
- Average rent on new lettings for the overall portfolio was €8.9 per sqm, a 9.8% increase over 2014. In Berlin, new leases were signed at an average of €10.3 per sqm, a 10.6% increase over 2014
- Final Dividend of 2.9p, giving a total dividend of 4.2p for the financial year
OPERATIONAL HIGHLIGHTS
- Acquisition of Phoenix Spree Property Fund and debt refinancing completed
- Successful transition to the London Stock Exchange – share price increased by 18%3 since listing TO 31 March 2016
- Condominium sales strategy launched – 20 apartments notarised in H2 2015
- As at 31 December 2015, five Berlin residential properties notarised for acquisition with an aggregate consideration of €35.8m and expected to increase the Fund’s rental income by c.5.4%
- Recent share placing raised £36.6 million after costs to fund attractive pipeline of acquisition opportunities
OUTLOOK
- Outlook for the German residential market, in particular Berlin, remains positive
- Demand for property continues to grow due to population growth and ongoing process of urbanisation, driving an upward trend in rents and property prices
- Supply of rental housing is restricted to a limited number of high-value areas
- Further scope for market rental growth and yield compression
- Residential prices remain below the cost of construction
- Opportunity to improve rental incomes through active asset management
- Further condominium sales programmes are planned for the year ahead
I am delighted to announce our first set of full year results since our introduction to the stock market. Since listing in June 2015 we have delivered against our strategic objectives of delivering value to shareholders by growing our German residential portfolio, particularly in Berlin where there is still a significant supply/demand imbalance. We have also grown rental incomes throughout the year due to the active asset management of the portfolio and unlocked further value by reselling apartment blocks as condominiums at a premium to rental property values.
The outlook for the German residential market remains positive and there is significant opportunity for us to continue to grow the portfolio. The recent successful fundraising will allow us to continue to strengthen our Berlin presence and to take advantages of opportunities as they arise.
Robert Hingley
CHAIRMAN OF PHOENIX SPREE
- Excluding exceptional items relating to the acquisition of PSPF, stock market listing and impairment of goodwill.
- Includes PSPF properties for 2014 and 2015. Like-for-like adjusts for acquisitions and disposals made during 2015.
- Share price at June 2015 listing £1.50. Share price as at 31 March 2016 £1.77.
For further information please contact
Phoenix Spree Deutschland
Stuart Young
+44 (0)20 3937 8760
Liberum Capital Limited (Corporate Broker)
Richard Crawley
Christopher Britton
+44 (0)20 3100 2222
Bell Pottinger (Financial PR)
Elizabeth Snow
+44 (0)20 3772 2500
