28th Apr 2016 11:49
LONDON (Alliance News) - Phoenix Spree Deutschland Ltd on Thursday posted a big rise in pretax profit in 2015, after it saw growth in both rents and property values over the year which drove up its net asset value.
The London-listed German real estate investment firm said its pretax profit came in at EUR13.0 million for the year ended December 31 from EUR8.5 million a year earlier, even including costs relating to its listing in June.
The company said its portfolio valuation increased 15% to EUR282.8 million at year-end from EUR254.3 million a a year earlier and said its property values rose by 11% on a year-on-year basis.
Phoenix Spree said its annualised rental income rose to EUR14.1 million at December 31, up 3.2% from a year earlier.
The company reported an 11% increase in its net asset value to EUR2.28 per share from EUR2.06 per share a year earlier.
Phoenix Spree declared a maiden full year dividend of 4.2 pence per share, after proposing a final dividend of 2.9p.
The company added that, following the completion of its recent share placing in March which raised GBP36.6 million, it is able to fund "an attractive pipeline of opportunities".
"Since listing in June 2015 we have delivered against our strategic objectives of delivering value to shareholders by growing our German residential portfolio, particularly in Berlin where there is still a significant supply/demand imbalance. We have also grown rental incomes throughout the year due to the active asset management of the portfolio and unlocked further value by reselling apartment blocks as condominiums at a premium to rental property values," said Chairman Robert Hingley.
"The outlook for the German residential market remains positive and there is significant opportunity for us to continue to grow the portfolio. The recent successful fundraising will allow us to continue to strengthen our Berlin presence and to take advantages of opportunities as they arise," Hingley added.
Shares in Phoenix Spree were down 1.1% at 178.00p on Thursday.
By Hannah Boland; [email protected]; @Hannaheboland
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