24th Sep 2021 09:33
(Alliance News) - Phoenix Spree Deutschland Ltd on Friday reported a rise in rental income and pretax profit in the first half of 2021, as the Berlin residential landlord celebrated the removal of rent controls.
Shares were down 1.0% to 400.16 pence in London on Friday morning. They are up 26% year-to-date.
Revenue increased 7.5% year-on-year to EUR12.9 million from EUR12.0 million. Pretax profit - which includes the rising value of the company's properties - jumped 34% to EUR20.4 million from EUR15.3 million.
The company benefited from a ruling by Germany's supreme court in April, which struck down Berlin's 'Mietendeckel' rent controls. That allowed PSD to buy back more shares, claim backdated rent and raise prices, as well as increasing the value of its portfolio.
The firm recorded a EUR16.0 million investment property fair value gain in the first half, giving it a net asset value per share of EUR4.54 on June 30, up from EUR4.48 on December 31.
PSD left its interim dividend unchanged at 2.35 cents per share. It has paid a total of 7.5 cents per share in dividends every year since 2018.
Looking ahead, PSD said the German federal election on Sunday remains uncertain, with several coalition permutations possible. Nevertheless, rents and property values will continue to rise thanks to the housing shortage, demographic trends, and inward migration to Berlin as Covid restrictions lift.
"I am pleased to report another period of solid performance and growth. Despite the further market disruption caused by the combined effects of Covid-19, the Mietendeckel and its subsequent reversal, the portfolio delivered further valuation gains reflecting the strong demand for living space in Berlin," Chair Robert Hingley said.
By Ivan Edwards; [email protected]
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