23 April 26

Phoenix Spree Deutschland Limited: Financial Results for the year ended 31 December 2025

Phoenix Spree Deutschland Limited (LSE: PSDL.LN), the UK-listed investment company specialising in German residential real estate, announces its results for the year ended 31 December 2025. The Board also provides an update on the execution of the Company’s managed Portfolio realisation strategy, approved by shareholders at the Extraordinary General Meeting on 12 March 2025.

HIGHLIGHTS

1 – EPRA metrics defined and calculated in the notes to the financial statements.

2 – Calculated at FX rate GBP/EUR 1:1.146416 as at 31 December 2025 (31 December 2024: GBP/EUR 1:1.2097).

3 – Net LTV uses nominal loan balances rather than the loan balances on the Consolidated Statement of Financial Position, which include capitalised finance arrangement fees.

4 – Like-for-like excludes the impact of disposals in the period.

Strategy implementation on track

• The Compulsory Redemption Facility was approved at the EGM in June 2025, establishing a clear framework for capital returns.
• In November 2025, the Company completed the refinancing of all borrowings, securing a new €255m, five-year, interest-only facility.
• The refinancing removed previous restrictions on condominium pool expansion and shareholder distributions, materially enhancing operational flexibility.
• The Condominium Sales Pool was expanded to 40 properties (861 units remaining available for sale at 31 December 2025), with a further 227 units expected to be added in H1 2026.

2025 condominium sales ahead of target

• During 2025, 122 units were notarised for €36.0m, exceeding the €30m target by 20%, and up from €9.4m in 2024.
• Average achieved pricing before disposal costs was at a 4.1% premium to the most recent property valuation prior to sale. Vacant units achieved a 18.6% premium to carrying values, while occupied units were sold at a 2.8% discount.
• Since year-end, a further 56 units have been notarised (€16.5m), with 35 units (€10.3m) under reservation.
• The Company is targeting condominium notarisations of at least €55m in 2026 and, with €16.5m already notarised since year-end and a further €10.3m under reservation, remains on track to deliver this target.

First capital return to shareholders

• The Board is delighted to announce that an aggregate of £17.5m will be returned to shareholders — the first return of capital under PSD’s managed Portfolio realisation strategy.
• This will be effected by means of a pro rata Compulsory Redemption of Ordinary Shares. All shareholders will have shares redeemed automatically, in proportion to their holdings.
• The Compulsory Redemption Price per Ordinary Share to be redeemed will be £2.56.
• Subject to continued successful implementation of the managed Portfolio realisation strategy and retention of prudent cash balances, the Board aims to make two returns of capital to shareholders annually. Further details are set out in a separate RNS announcement released today.

Portfolio valuation stabilising

• The total Portfolio was valued at €540.1m at 31 December 2025, representing a like-for-like increase of 1.5% on a per sqm basis.
• The Condominium Sales Portfolio was valued at an average of €4,191 per sqm, a like-for-like per sqm increase of 3.1%, reflecting the pricing premium achievable through individual unit sales.
• The PRS Portfolio was valued at an average of €3,288 per sqm, up 0.8%, representing the first annual like-for-like valuation increase since 2022 and indicating stabilisation in the Berlin residential market.

Cost reduction – a priority for 2026

• Cost reduction is a priority for 2026 as the Portfolio contracts through condominium sales.
• Property-level and administrative costs are expected to reduce progressively as assets are sold and net asset value declines.
• Administrative expenses in 2025 were elevated by non-recurring items, including legal, lender and other professional fees associated with the refinancing (facility negotiation, documentation and related advisory work), the acceleration of condominium sales and the continuation vote at the AGM/EGM.
• Following completion of these discrete actions, the related cost burden is expected to reduce materially.
• Capital expenditure in 2025 reflected the front-loaded preparation of four condominium tranches and is expected to fall materially in 2026 and beyond.

Outlook

• The Company enters 2026 with positive momentum, supported by an expanded condominium sales pool, completed refinancing and a clear capital return framework.
• The Berlin condominium market continues to demonstrate resilience, underpinned by structural supply-demand imbalance and improving financing conditions.
• Regular capital returns are expected to be made from net sale proceeds, subject to cash availability, associated debt repayment and covenant headroom.
• The cost base is expected to reduce materially as one-off items do not recur and the Portfolio continues to contract.
• The Board remains mindful of external uncertainties, including ongoing geopolitical tensions and conflict in the Middle East, which may affect interest rates and broader market sentiment. However, the Company’s strategy is underpinned by long-dated financing, operational flexibility and the ability to calibrate sales pacing in response to market conditions.

Robert Hingley, Chair of Phoenix Spree Deutschland, commented:

“2025 marked the shift from planning to execution, with accelerated condominium sales, completion of the refinancing and the launch of a capital return framework. Results to date support our strategy: condominium sales achieved premiums to latest carrying values.

With refinancing complete, an expanded pool of condominium assets and a clear cost reduction trajectory, the Company enters 2026 focused on disciplined delivery — maximising value from the condominium sales programme, returning capital to shareholders and reducing the cost base as the Portfolio contracts.”

Annual Report and Accounts

To read the full report, click here.

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