Phoenix SpreeDeutsch - Berlin Mietspiegel and Company Updates

Phoenix Spree Deutschland

Today 07:00

RNS Number : 1710I
  
Phoenix Spree Deutschland Limited
  
15 June 2026
  
 


Phoenix Spree Deutschland Limited
(the "Company" or "PSD")
 
Berlin Mietspiegel provides supportive backdrop; condominium sales and first capital return mark further strategic progress.
 
Phoenix Spree Deutschland Limited (LSE: PSDL), the UK-listed investment company specialising in Berlin residential real estate, announces the impact of the updated Berlin Mietspiegel together with an update on its condominium sales strategy and capital return programme.
 
Highlights
·    The updated Berlin Mietspiegel is supportive and indicates the potential for incremental like-for-like rental growth across the Portfolio
·    €23.1m of condominium sales were notarised in the five months to 31 May 2026. Activity continued throughout the period and is tracking in line with the Company's full-year 2026 target of €55m.
·    Sales pricing has remained resilient, supporting the latest balance sheet valuations prepared by JLL, the Company's independent valuer.
·    As previously announced, the Company intends to implement its first compulsory share redemption, returning £17.5m (£2.56 per share) to shareholders.
Updated Berlin Mietspiegel provides supportive rental backdrop
The updated Berlin Mietspiegel (rent table), announced in May 2026, provides a revised framework for determining local reference rents and a supportive backdrop for rental income across the Portfolio. On a pro forma basis, the implied uplift equates to a low single-digit percentage of current in-place rent when measured on a like-for-like Berlin portfolio basis.
 
Based on internal analysis, the Mietspiegel implies a potential uplift to average in place rents relative to current levels; however, this reflects a theoretical upper range rather than a forecast. Realisation will depend on tenant eligibility, individual lease characteristics and statutory constraints, including the Kappungsgrenze, and is expected to be phased over time rather than immediate.
 
Condominium sales progressing in line with target
The Company continues to make progress in executing its accelerated condominium sales programme. In the five months to 31 May 2026, condominium sales with an aggregate value of €23.1m were notarised. On an annualised basis, this is consistent with the Company's target of €55m of notarisations for the current financial year.
 
Table: Condominium Notarisations




Notarisation period / status


Units


Sales value (€m)


Price per sqm (€)


Premium / discount to Portfolio carry value


Premium / discount to asset carry value




Vacant notarisations


31


10.4


4,713


27.7%


15.8%




Occupied notarisations


47


12.8


4,210


14.0%


-5.4%




Total notarisations


78


23.1


4,422


19.8%


3.1%




Outstanding reservations


19


5.9


4,382


18.9%


1.3%




Total reservations and notarisations


97


29.0


4,413


19.6%


2.7%




 
The average notarised price during the period was €4,422 per sqm, representing an average 3.1% premium to the latest balance sheet carrying values. A further 19 units (€5.9m) have been reserved and are pending notarisation, providing visibility on near-term completions and supporting continued progress through the remainder of the year.
 
Vacant units continue to achieve materially higher pricing than occupied units, consistent with prior periods. Vacant units achieved an average price of  €4,713 per sqm, representing a 15.8% premium to carrying values, while occupied units achieved an average price of €4,210 per sqm, representing a 5.4% discount to carrying values.
 
Disposal strategy supports deleveraging and shareholder returns
The Company remains focused on the orderly realisation of its Portfolio through condominium disposals, with proceeds supporting continued deleveraging of the balance sheet and capital returns to shareholders. The expansion of the Condominium Sales Pool, including the addition of further units in 2026, together with active management of the sales platform, is expected to support transaction volumes over the medium term.
 
First compulsory redemption marks capital return milestone
As previously announced, the Company will return an aggregate amount of £17.5m to shareholders through a pro rata compulsory redemption of Ordinary Shares at a price of £2.56 per Ordinary Share.
 
·    Relevant percentage redeemed: up to 7.45% of issued share capital
·    Record date: 30 June 2026
·    Ex-entitlement date: 1 July 2026
·    Expected payment date: by 14 July 2026
 
The compulsory redemption establishes a clear and repeatable mechanism for returning capital to shareholders as value is realised through ongoing asset disposals.
 
Outlook
The Board expects transaction volumes to be supported by the continued roll-out of the Condominium Sales Pool and the existing pipeline of reserved units, including additional inventory expected to contribute to activity in the second half of 2026.
 
The Board remains confident in the continued execution of the Company's strategy, including ongoing deleveraging and further capital returns to shareholders.
 
Robert Hingley, Chair of Phoenix Spree Deutschland, commented:
"The updated Berlin Mietspiegel provides a modest but positive backdrop for rental growth over time, subject to the normal regulatory constraints on rent adjustments in Berlin, alongside the continued reversion value captured through re-letting activity.
 
Condominium sales remain central to our strategy, with continued transaction activity and resilient pricing reflecting the underlying strength of demand in the Berlin residential market.
 
The announcement of our first compulsory share redemption marks an important milestone, demonstrating the Company's ability to convert realised value into tangible returns for shareholders and supporting confidence in the continued execution of our strategy."
 
For further information, please contact:




Organisation


Contact


Telephone




Phoenix Spree Deutschland Limited


Stuart Young


+44 (0)20 3937 8760




Deutsche Bank AG, London Branch (Corporate Broker)


Hugh Jonathan


+44 (0)20 7260 1263




Teneo (Financial PR)


Robert Yates, Elizabeth Snow


+44 (0)20 7353 4200




 




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