REG - Phoenix SpreeDeutsch - Portfolio valuation and condominium sales update
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RNS Number : 9502R Phoenix Spree Deutschland Limited 06 February 2026
6 February 2026
Phoenix Spree Deutschland Limited
(the "Company" or "PSD")
Portfolio valuation and condominium sales update
Phoenix Spree Deutschland (LSE: PSDL.LN), the UK-listed investment company
specialising in Berlin residential real estate, announces the valuation of the
portfolio of investment properties held by the Company and its subsidiaries
(the "Portfolio") as at 31 December 2025, together with an update on its
condominium sales strategy.
Highlights:
Positive Portfolio valuation momentum
· Second consecutive valuation increase: Versus the prior year, the
overall Portfolio value rose by 1.5% on a like-for-like per sqm basis.
· PRS Portfolio: Like-for-like value per sqm increased by 0.8%, the
first annual valuation increase since 2022.
· Condominium Sales Pool: Like-for-like value per sqm increased by
3.1%.
Record condominium sales
· Condominium sales outperformed target in 2025: 122 units sold for
€36.0m (2024: €9.4m), representing a 20% outperformance versus the 2025
target of €30m.
· Resilient pricing: The average notarised price during 2025 was
€4,135 per sqm, representing an average 3.9% premium to latest balance sheet
carrying values.
· Vacant units sold at significant premium to occupied: Vacant units
achieved €4,585 per sqm (+19.2% vs carrying values), while occupied units
achieved €3,913 per sqm (-3.2% vs carrying values).
· Positive start to 2026: 14 units notarised for €4.1m, with a further
26 units (€7.0m) reserved and pending notarisation.
· New additions to Condominium Sales Pool: A further 11 properties (340
units) expected to be added to the Condominium Sales Pool during H1 2026,
further supporting sales momentum.
Capital return and outlook
· Capital return: Following the full debt refinancing in December 2025,
the Company intends to return capital to shareholders in 2026 via compulsory
pro rata redemptions of Ordinary Shares.
· Pricing environment: Condominium prices are expected to remain robust
relative to PRS, underpinned by strong demand and limited new supply, due to
regulatory constraints.
· Inventory increase: Addition of 11 further properties to the
Condominium Sales Pool from the PRS Pool expected to further support
transaction volumes in 2026.
· Sales outlook: The Company remains confident of achieving at least
€55m of notarisations in 2026.
Robert Hingley, Chair of Phoenix Spree Deutschland, commented:
"Our strategy of accelerating condominium sales and reducing leverage
continues to deliver tangible results. I am pleased that we have materially
exceeded our 2025 condominium sales target and the addition of new properties
into the Condominium Sales Pool will lend further support to sales momentum in
the year ahead.
The Board and Property Advisor remain fully focussed on executing our
Portfolio realisation plan and Shareholders can expect to see their first
distributions in 2026, funded by proceeds from these condominium sales."
Portfolio valuation
The Berlin residential market demonstrated positive valuation momentum during
2025, suggestive of a recovery trend as we move into 2026. Condominium values
continue to command a significant premium over PRS values, underscoring the
relative strength of this segment. Although investor interest in the PRS
segment remains subdued, PRS valuations have now stabilised. These broader
market trends have been reflected in the year-end valuation of the Portfolio
of properties held by the Company.
Total Portfolio: Like-for-like increase of 1.5%
As at 31 December 2025, the total Portfolio value was €540.1m, with an
average value of €3,686 per sqm and a gross yield of 3.6%. On a
like-for-like basis (adjusted for disposals), the Portfolio value increased by
1.5% during the year.
Condominium Sales Portfolio: Like-for-like increase of 3.1%
As of 31 December 2025, the Condominium Sales Portfolio (40 properties, 891
units) was valued at €271.0m (€4,191 per sqm). On a like-for-like basis,
the value per sqm of these properties increased by 3.1% during the year.
PRS Portfolio: Like-for-like increase of 0.8%
As at 31 December 2025, the PRS Portfolio (33 properties, 1,190 units) was
valued at €269.1m, with an average value of €3,288 per sqm. On a
like-for-like basis, the value per sqm of these properties increased by 0.8%
during the year, marking the first annual valuation increase recorded since
the market downturn began in 2022.
Table: JLL Valuation summary
Total Portfolio 31 December 30 June 31 December 30 June
2025 2025
2024
2024
Number of properties 73 74 74 93
Residential units 1,974 2,028 2,053 2,472
Commercial units 107 108 108 138
Total units 2,081 2,136 2,161 2,610
Total sqm ('000) 146.5 150.2 152.2 186.0
Valuation (€m) 540.1 548.7 552.8 646.4
Value per sqm (€) 3,686 3,654 3,633 3,480
LFL growth per sqm v prior 6M 0.9% 0.6% 3.8% -3.3%
LFL growth per sqm v prior year 1.5% 4.4% 0.8% -8.3%
Condominium Sales Pool 31 December 30 June 31 December 30 June
2025 2025
2024
2024
Number of properties 40 28 16 6
Residential units 829 575 341 75
Commercial units 62 47 25 8
Total units 891 622 366 83
Total sqm ('000) 64.7 46.6 29.0 7.6
Valuation (€m) 271.0 180.9 110.8 29.6
Value per sqm (€) 4,191 3,884 3,820 3,914
LFL growth per sqm v prior 6M 2.3% 0.3% 12.6% -0.1%
LFL growth per sqm v prior year 3.1% 11.6% 10.6% -2.2%
PRS Properties 31 December 30 June 31 December 30 June
2025 2025
2024
2024
Number of properties 33 46 58 87
Residential units 1,145 1,453 1,712 2,397
Commercial units 45 61 83 130
Total units 1,190 1,514 1,795 2,527
Total sqm ('000) 81.9 103.6 123.2 178.4
Valuation (€m) 269.1 367.8 442.0 616.9
Value per sqm (€) 3,288 3,550 3,589 3,461
LFL growth per sqm v prior 6M 0.0% 0.8% 1.8% -3.5%
LFL growth per sqm v prior year 0.8% 1.1% -1.4% -8.6%
All 40 properties included in Condominium Sales Pool now available for sale
The 40 properties initially approved for inclusion as condominium sales
projects were grouped into tranches, based on the degree of capital
expenditure and time required to prepare them for sale. By the end of Q4 2025,
all 40 properties (942 units) that had been designated for inclusion into the
Condominium Sales Pool at the beginning of 2025 had been made available for
sale, with 861 units remaining as at 31 December 2025.
Further expansion of the condominium sales pipeline in 2026
Following the Company's full debt refinancing, announced on 28 November 2025,
the Company expects to add a further 11 properties (340 units) into the
Condominium Sales Pool, bringing the total number of properties in the
Condominium Sales Pool to 50. After completing the required capital
expenditure to optimise sales proceeds, this additional tranche is expected to
be added in Q2 2026, with capacity to add further properties thereafter.
To support the enlarged pipeline, the Company has broadened its market
coverage by expanding its brokerage panel to five brokers. This wider
distribution capability, together with units added in H2 2025 and further
additions planned in 2026, is expected to underpin continued sales velocity in
the current year.
Table: Condominium preparation(1)
Property Group Added to Sales Pool As at 31 December 2025 As at 31 December 2024
Units Sqm Properties(2) Units Sqm Properties
Tranche 1 On market 2024 84 7,571 5 108 9,291 6
Tranche 2 December 2024 213 16,563 10 258 19,711 10
Tranche 3 June 2025 270 18,771 12 282 19,549 12
Tranche 4 Q4 2025 294 19,760 12 294 19,760 12
Total Tranches 1-4 2024 - 2025 861 62,665 39 942 68,311 40
Tranche 5 Commencing H1 26 340 21,859 11 340 21,859 11
Total Tranches 1-5 2024 - H1 2026 1,201 84,524 50 1,282 90,170 51
1. The unit count, sqm and number of properties shown at 31
December 2024 and 2025 are based on the legal completion date (transfer of
title), not the notarisation date.
2. The number of properties in Tranche 1 decreased from 6 to 5
during the year after all units in one property were sold.
2025 Condominium notarisations ahead of target
Condominium sales outperformed expectations in 2025, with the Company
exceeding its €30m sales target. The Company notarised 122 units for
€36.0m (2024: €9.4m), representing a 20% outperformance versus target.
Sales pricing remained resilient and continues to validate the latest balance
sheet valuations prepared by JLL, the Company's independent valuer. The
average notarised price at €4,135 per sqm, equates to a 3.9% premium to the
latest balance sheet carrying values. Vacant units achieved €4,585 per sqm,
a 19.2% premium to carrying values, while occupied units achieved €3,913 per
sqm, representing a 3.2% discount to carrying values.
A positive start to 2026
Since the financial year end, a further 14 units have been notarised with a
combined sales price of €4.1m. A further 26 units (€7.0m) have been
reserved and are pending notarisation. With further units from Tranche 5
expected to be added to the market during H1 2026, the Company expects sales
momentum to remain strong in 2026.
Table: 2025 condominium notarisations and reservations
Notarisation period / status Units Sales Value (€m) Price per sqm (€) Premium / discount to Portfolio carry value(1,2) Premium / discount to asset carry value(1,3)
Vacant notarisations
Notarised January 0 0 0 0 -
Notarised February 4 1.45 5,293 45.8% 23.2%
Notarised March 2 0.72 5,987 64.9% 32.1%
Notarised April 4 1.06 4,402 21.3% 20.6%
Notarised May 1 0.35 4,031 11.1% 25.1%
Notarised June 5 1.40 5,253 44.7% 20.9%
Notarised July 2 0.59 4,885 33.8% 8.3%
Notarised August 1 0.30 4,076 11.7% 25.0%
Notarised September 7 2.00 3,827 4.9% 12.9%
Notarised October 4 1.53 4,920 34.8% 29.8%
Notarised November 3 0.76 4,460 22.2% 19.5%
Notarised December 8 3.03 4,387 17.1% 11.6%
Notarised January 2026 4 1.46 4,350 17.9% 8.6%
Notarised up to 2(nd) February 2026 0 0 - - -
Total vacant notarisations 45 14.66 4,560 25.0% 18.0%
Occupied notarisations
Notarised January 4 0.82 2,987 -17.7% -24.5%
Notarised February 4 1.08 4,055 11.7% 0.5%
Notarised March 9 2.36 3,476 -4.2% -4.4%
Notarised April 7 1.81 3,840 5.8% -11.7%
Notarised May 3 1.05 4,323 19.1% -0.3%
Notarised June 8 2.48 3,626 -0.1% -8.4%
Notarised July 6 1.84 3,772 3.4% -1.4%
Notarised August 14 3.29 3,960 6.3% 1.3%
Notarised September 7 1.89 4,163 14.1% 2.6%
Notarised October 9 2.51 4,181 14.5% 0.1%
Notarised November 5 1.26 4,185 14.7% 2.7%
Notarised December 5 2.38 4,470 27.1% 1.0%
Notarised January 9 2.31 4,071 9.9% -4.7%
Notarised up to 2(nd) February 2026 1 0.34 5,268 42.8% 6.5%
Total occupied notarisations 91 25.44 3,941 7.5% -3.2%
Total notarisations (vacant and occupied) 136 40.09 4,147 13.3% 3.6%
Total outstanding reservations 26 6.98 4,227 15.3% 6.2%
Total reservations and notarisations 162 47.07 4,158 14.3% 4.5%
Ratio of vacant to occupied sales
As previously announced, the Company expects to sell a broadly equal mix of
occupied and vacant units throughout the duration of condominium sell-down
process. In 2025, the ratio of vacant to occupied unit sales was historically
low at 33.6%. This reflects the Company's strategy of initially offering units
for sale to existing tenants. Tenant demand for newly marketed units was
strong during 2025 and is expected to moderate in 2026. This is expected to be
partially offset by new tenant demand from Tranche 5 as these units become
available for sale.
As at 31 December 2025, there were 114 vacant units available for sale,
representing 13.2% of total stock.
Return optimisation and target vacant / occupied split
Since PSD's condominium sales are projected to stay below 4% of overall Berlin
market sales in any given year, market absorption is unlikely to constrain
sales velocity.
The primary driver of investor returns is pricing: vacant units command a
significant per sqm valuation premium over occupied units. Maximising
time-valued returns from sales proceeds therefore requires a deliberate
balance between selling vacant and occupied units. Accelerating sales of
occupied units can increase near-term volumes, but materially reduces overall
investor returns from the sales process by depleting the higher-value vacant
inventory which could be made available for sale over time.
Vacant units depend on a natural tenant turnover of roughly 8-10% annually.
Therefore, to achieve the target mix effectively, a four-to-five-year sales
window per property is predicted to deliver the highest returns, with natural
turnover driving vacant units to an expected 40-50% of total sales. This is
slightly more conservative than the 58% average of vacant units sold achieved
in condominium sales projects completed between 2016 and 2024.
Condominium sales velocity
The Average Annualised Sales Rate (AASR) measures the pace at which inventory
is sold. The sell-down period is important because it affects both the timing
and amount of sales proceeds.
Although the Company has sold condominiums since 2015 (albeit on a
significantly smaller scale), the commencement of the accelerated condominium
sales strategy in 2025 marked the first year where tenants were offered the
first right of refusal to buy their apartment.
Reflecting early, tenant-led purchases, the 2025 year-end AASR was 30.2%,
implying a sell-down period of around three years. As tenant offerings are
time-limited, sales velocity in properties released for sale in 2025 is
expected to moderate in 2026. Consistent with this, the Company expects a
higher proportion of vacant, higher value, unit sales in 2026, and an AASR
trending towards 20-25% over time.
Table: Average annualised sales rate (AASR)
Period Opening Notarisations in month Made Closing Average
units
available
units
annualised
sales rate1
January 25 104 4 258 358 45.3%
February 25 358 8 - 350 37.2%
March 25 350 11 - 339 37.1%
April 25 339 11 - 328 37.7%
May 25 328 4 - 324 33.1%
June 25 324 13 - 311 35.7%
July 25 311 8 282 585 34.9%
August 25 585 15 - 570 34.3%
September 25 570 14 - 556 33.8%
October 25 556 13 294 837 33.2%
November 25 837 8 - 829 31.2%
December 25 829 13 - 816 30.2%
January 26 816 13 - 803 29.3%
Return of capital through share redemption programme
In line with the managed realisation strategy approved by shareholders on 12
March 2025, and supported by the enhanced flexibility provided by the debt
refinancing, the Company plans to return capital to shareholders through a
programme of compulsory pro rata redemptions of Ordinary Shares.
The Company expects that the proceeds from condominium sales will be returned
to shareholders twice yearly, subject to available cash, market conditions and
covenant headroom.
The Company intends that returns to shareholders will be made on a net
proceeds basis (rather than gross). Net proceeds reflect the cash available
for distribution after deductions associated with executing sales and managing
the wind-down, including:
1. Broker sales fees and other disposal-related costs
2. Repayment of debt
3. Any crystallised tax charges arising from disposals
Accordingly, the cash returned to shareholders is expected to align more
closely with an IFRS-based measure of equity (which reflects realised cash
movements and liabilities as they arise) than with EPRA measures, which align
with a long-term hold scenario and may exclude certain items that are not
expected to crystallise if assets are retained indefinitely.
The Company will provide further information on the first redemption alongside
its full year Results on 23 April 2026.
Outlook
Lower mortgage rates - driven by interest-rate cuts - have eased
debt-servicing costs for buyers, reinforcing already solid demand and helping
keep condominium prices high relative to private-rented stock. The planned
addition of further properties to the Condominium Sales Pool is expected to
further bolster transaction volumes and the Company remains confident in its
ability to achieve at least €55 million in notarisations for 2026.
Annual Results
The Company expects to announce its annual results for the financial year
ended 31 December 2025 on 23 April 2026.
For further information please contact:
Phoenix Spree Deutschland Limited +44 (0)20 3937 8760
Stuart Young
Deutsche Bank AG (Corporate Broker) +44 (0) 20 7260 1263
Hugh Jonathan
Teneo (Financial PR) +44 (0)20 7353 4200
Robert Yates, Elizabeth Snow
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