Phoenix Spree Deutschland (PSDL) H2 2024 earnings summary

Executive summary

• Transitioned from growth-through-acquisition to a managed portfolio realisation, focusing on accelerated condominium sales to maximise value and reduce debt.

• Completed €75.9m sale of a 385-unit portfolio, amended debt terms to allow more condominium sales, and reduced net debt by €89.9m, lowering net LTV from 46.3% to 40.3%.

• Shareholders approved continuation and strategic shift at the March 2025 EGM, enabling a significant increase in units available for sale.

• Portfolio value stabilised, with first like-for-like valuation increase since 2022 downturn; condominium values remain resilient.

Financial highlights

• Gross rental income rose to €28.1m (2023: €27.5m); loss before tax narrowed to €39.5m (2023: €111.8m).

• Portfolio valuation at €552.8m (2023: €675.6m); like-for-like value up 0.8% year-over-year.

• EPRA NTA per share declined to €3.55 (2023: €3.96); total return per share (10.4)% in euros.

• Net LTV reduced to 40.3% (2023: 46.3%).

• Condominium sales notarised increased 31% to €9.4m; vacant units sold at €5,027/sqm, a 39.3% premium to portfolio average.

Outlook and guidance

• Targeting €50m annualised condominium sales by end of 2025.

• Ongoing refinancing discussions to further increase sales flexibility and enable capital returns.

• Expectation that condominium prices will remain significantly above PRS property values.

• Market rebound expected to be gradual; ongoing macroeconomic and geopolitical risks may impact investor sentiment.