Phoenix Spree Deutschland Limited: Portfolio Valuation and Business Update – August 2025
Portfolio Valuation and Business Update
Phoenix Spree Deutschland (LSE: PSDL.LN), the UK listed investment company specialising in Berlin residential real estate, announces an update on its condominium sales strategy and the valuation of the portfolio of investment properties held by the Company and its subsidiaries (the “Portfolio”) as at 30 June 2025.
Highlights:
Portfolio valuation
- Second Consecutive Valuation Increase: The overall Portfolio value rose by 0.6% on a like-for-like per sqm basis during the first half of 2025.
- PRS Portfolio: Achieved its first valuation increase since 2022, with a like-for-like per sqm increase of 0.8% during the first half of the financial year.
- Condominium Sales Portfolio: Recorded a like-for-like per sqm increase of 0.8% during the first half of the financial year.
Condominium sales
- By 24 July 2025, the Company had notarised 57 units with a combined value of €16.3m, an increase of 210% compared with the same period last year. A further 13 units (€3.8m) are subject to reservations.
- On average, units (both vacant and occupied) were notarised at a sale price of €3,993 per sqm, in line with JLL carry value for the properties from which they were sold.
- Vacant units to 24 July 2025 notarised at an average per sqm sale price of €5,010, a 22.0% premium to JLL carry value. Occupied units averaged €3,645 per sqm (7.8% discount to JLL carry value).
Outlook
- Condominium prices are expected to remain robust relative to PRS prices, supported by strong demand and limited new supply due to regulatory constraints.
- Sales from condominium tranches 3 and 4 are expected to drive higher transaction volumes in the second half of 2025, with sales to tenants continuing to support strong demand.
- The Company remains on track to achieve its previously announced target of €50m annualised condominium sales rate by the end of the financial year.
- Discussions on refinancing of the Company’s existing debt facilities are progressing well.
Robert Hingley, Chairman of Phoenix Spree Deutschland, commented:
“The progress achieved during the first half of 2025 has positioned Phoenix Spree Deutschland strongly for the remainder of the year and beyond. We are seeing good demand in the Berlin condominium market, with sales prices remaining robust and volumes exceeding expectations. This, coupled with the stabilisation of PRS valuations, demonstrates the resilience of Berlin’s residential property market.
Our strategic focus on accelerating condominium sales, reducing leverage, and optimising our Portfolio continues to deliver tangible results. We are making good progress towards our debt refinancing, which is expected to permit us to begin returning capital to shareholders. The Board and Property Advisor are fully committed to executing our strategy with a clear focus on monetising the full value of the Portfolio.”
Portfolio valuation
Condominium values remained resilient during the financial year and, for the first time since the decline in real estate values began in 2022, PRS valuations have risen.
As at 30 June 2025, the total Portfolio value was €549.2m, with an average value of €3,650 per sqm and a gross yield of 3.2%. On a like-for-like basis (adjusted for disposals), the Portfolio value increased by 0.6% during the half-year to 30 June 2025.
Since the total sqm of the higher-valued Condominium Sales Pool decreased (due to condominium sales) while the lower-valued PRS Properties maintained their size, the overall mix shifted slightly toward the lower-priced segment. The total Portfolio weighted average therefore increased by less than the 0.8 % observed inside each segment.
Table: JLL Valuation summary
| Total Portfolio | 30 June 2025 | 30 June 2024 | 31 December 2024 | 31 December 2023 |
| Number of properties | 74 | 93 | 74 | 95 |
| Residential units | 2,028 | 2,535 | 2,053 | 2,489 |
| Commercial units | 108 | 138 | 108 | 140 |
| Total units | 2,136 | 2,673 | 2,161 | 2,629 |
| Total sqm (‘000) | 150.2 | 186.0 | 152.2 | 187.7 |
| Valuation (€m) | 549.2 | 646.4 | 552.8 | 675.6 |
| Value per sqm (€) | 3,650 | 3,480 | 3,630 | 3,598 |
| Condominium Sales Pool | 30 June 2025 | 30 June 2024 | 31 December 2024 | 31 December 2023 |
| Number of properties | 40 | 6 | 40 | 7 |
| Residential units | 854 | 75 | 880 | 92 |
| Commercial units | 62 | 8 | 62 | 8 |
| Total units | 916 | 83 | 942 | 100 |
| Total sqm (‘000) | 66.4 | 7.6 | 68.3 | 8.9 |
| Valuation (€m) | 272.4 | 29.6 | 278.0 | 35.1 |
| Value per sqm (€) | 4,102 | 3,910 | 4,070 | 3,921 |
| PRS Properties | 30 June 2025 | 30 June 2024 | 31 December 2024 | 31 December 2023 |
| Number of properties | 34 | 87 | 34 | 88 |
| Residential units | 1,174 | 2,460 | 1,173 | 2,397 |
| Commercial units | 46 | 130 | 46 | 132 |
| Total units | 1,220 | 2,590 | 1,219 | 2,529 |
| Total sqm (‘000) | 83.8 | 178.4 | 83.9 | 178.8 |
| Valuation (€m) | 276.8 | 616.9 | 274.8 | 640.5 |
| Value per sqm (€) | 3,302 | 3,457 | 3,277 | 3,582 |
Condominium Sales Portfolio like-for-like increase of 0.8%
As of 30 June 2025, the Condominium Sales Portfolio (40 properties, 916 units) was valued at €272.4m (€4,102 per sqm). The value per sqm of these properties increased by 0.8% in the half-year.
PRS Portfolio records first like-for-like valuation increase since 2022
As at 30 June 2025, the PRS Portfolio (34 properties, 1,220 units) was valued at €276.8m, with an average value of €3,302 per sqm. On a like-for-like basis, the value per sqm of these properties increased by 0.8% in the half-year. This marks the first valuation increase recorded since the market downturn began in 2022.
Progress on condominium preparation and marketing
The 40 properties currently approved for inclusion as condominium sales projects have been grouped into tranches, based on the degree of capital expenditure required to prepare them for sale.
Units available for sale rose from 366 on 1 January 2025 to 648 by 30 June 2025. Tenant-purchase discussions for Tranche 3 began in June, with apartments not reserved by tenants publicly listed in early July. Reflecting this, no condominiums from Tranche 3 were notarised as at 30 June 2025. Preparations for Tranche 4 are on schedule, with preparatory capital expenditure due to finish by late September 2025, after which marketing will commence.
By the end of December 2025, a total of 942 units will have been made available for sale, up from 366 units at the start of the financial year and 108 at the beginning of December 2024.
Table: Condominium preparation
| Property group | Sales Status | Number of properties | Units as at 1 Jan 2025 | Sqm as at 1 Jan 2025 | Potential project sales value1 |
| Tranche 1 | On market 2024 | 6 | 108 | 9,291 | €41.3m |
| Tranche 2 | Added December 2024 | 10 | 258 | 19,711 | €78.5m |
| Tranche 3 | Added June 2025 | 12 | 282 | 19,549 | €82.6m |
| Tranche 4 | Commencing Q3 2025 | 12 | 294 | 19,760 | €96.0m |
| Total | 40 | 942 | 68,311 | €298.4m |
- Estimated value at beginning of condominium sales pivot based on assessment of individual assets by QSix, Engel & Völkers and Lübke Kelber.
Condominium notarisations and pricing
Condominium demand in Berlin remains firm, and pricing has held steady. By 24 July 2025, the Company had either notarised or reserved 57 units with a combined value of €16.3m, an increase of 210% compared with the same period last year. A further 13 units have been reserved for sale, for an aggregate sale price of €3.8m.
Notarised transactions so far in 2025 have achieved an average price of €3,993 per sqm in line with the JLL carry value for the condominium assets from which these units were sold. Vacant units were sold at an average of €5,010 per sqm (a premium of 22.0% to JLL carry value), while occupied units averaged €3,645 per sqm, 7.7% below carry value.
With stock from Tranches 3 and 4 coming to market, the Company expects sales momentum to accelerate in the second half of the financial year.
Table: Condominium notarisations and reservations (2025 to date)
| Notarisation period / status | Units | Sales Value (€m) | Price per sqm (€) | Premium / discount to Portfolio carry value1,2 | Premium / discount to asset carry value1,3 |
| 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 to 24 July | 1 | 0.25 | 4,481 | 22.8% | 0.0% |
| Total vacant notarisations | 17 | 5.23 | 5,010 | 38.0% | 22.0% |
| 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 to 24 July | 5 | 1.50 | 3,507 | -3.9% | -5.8% |
| Total occupied notarisations | 40 | 11.09 | 3,645 | 0.3% | -7.8% |
| Total notarisations (vacant and occupied) | 57 | 16.31 | 3,993 | 9.9% | 0.1% |
| Total outstanding reservations | 13 | 3.78 | 4,436 | 21.8% | 13.3% |
| Total reservations and notarisations | 70 | 20.09 | 4,070 | 12.0% | 2.3% |
- Carry value is determined using the most recent JLL valuation per sqm. For notarisations completed before June 30, 2025, the applicable valuation is from December 2024. For notarizations occurring after June 30, 2025, the carrying value will be based on the JLL valuation as of June 30, 2025.
- The Portfolio carry value represents the average valuation per sqm across all assets within the Company’s Portfolio.
- The asset carry value refers to the JLL valuation of the specific properties associated with units being notarised during the period.
Ratio of vacant to occupied sales
The ratio of vacant to occupied sales is currently low at 29.8%. This reflects our strategy of initially offering units for sale to tenants. For tranches 1 and 2, tenant demand is expected to moderate in the second half of the financial year. However, the Company expects strong demand from tenants from Tranches 3 and 4 in the second half of the financial year.
Over an entire four-to-five-year sales cycle, the Company expects vacant units to account for between 40% and 50% of sales, driven largely by natural tenant turnover of 8-10% per annum. Condominium sales projects completed between 2016 and 2024 recorded an average vacant sale share of 58%.
Further condominium potential within the Portfolio
Twenty legally divided buildings (739 units, or 34% of the Portfolio) are currently outside the active sales pool. Securing new debt should provide the flexibility to bring a portion of these assets into the condominium sales programme during 2026.
Table: Condominium potential within the Portfolio
| Property status as at 31 December 2024 | Number of properties | Starting Number of units | Area (sqm) | Units as % total |
| Divided and in condominium sales pool | 40 | 942 | 68,312 | 43.6% |
| Divided but not yet in condominium sales pool | 20 | 739 | 47,432 | 34.2% |
| Total divided properties | 60 | 1,681 | 115,744 | 77.8% |
| Undivided properties (PRS) | 14 | 480 | 36,422 | 22.2% |
| Total properties | 74 | 2,161 | 152,166 | 100.0% |
Outlook
The Company remains focused on executing its strategic plan, with condominium sales expected to maintain strong momentum as new units are added to the Condominium Sales Portfolio. Sales completed during the first half of the year confirmed the JLL valuation for these assets, and achieved a 40% premium to the per sqm value of unsplit PRS properties. This underscores the significant additional value that can be generated through the Company’s condominium sales strategy.
Significant progress has been made in putting in place a refinancing package designed to provide greater flexibility in meeting the Company’s mid-term objectives. Indicative offers have already been received from potential lenders and, once finalised, this financing package is expected to support the introduction of a capital return policy linked to condominium sale proceeds, commencing in 2026.
The implied value of the Portfolio, based on the current share price, currently stands at €2,760 per sqm, compared to average gross condominium sales prices of €4,009 per sqm achieved during the year to date. The Company is confident that ongoing condominium sales at prices consistent with their current valuation, ultimately coupled with capital returns to shareholders, will help reduce the share price discount to Net Asset Value.
Interim Results
The Company intends to publish its interim results for the twelve months to 30 June 2025 on 26 September 2025.
For further information, please contact:
Phoenix Spree Deutschland Limited +44 (0) 20 3937 8760
Stuart Young
Deutsche Numis (Corporate Broker) +44 (0) 20 7260 1000
Hugh Jonathan
Teneo (Financial PR) +44 (0) 20 7353 4200 Elizabeth Snow