30th Jan 2020 15:22
(Alliance News) - Phoenix Spree Deutschland Ltd said Thursday the value of its portfolio as the end of 2019 rose over the year, leading to expectations of a increase in net asset value.
As at December 31, the Berlin-focused real estate investor reported its total portfolio value at EUR730.2 million, up 13% from EUR645.7 million on the same date a year before.
On a like-for-like basis, the portfolio value increased by 7.1%, due to market rental growth and active portfolio management.
Due to the increase value of its portfolio, Phoenix Spree expects to report EPRA net asset value per share in the range of EUR4.90 to EUR4.96, a 7.0% to 8.3% increase from EUR4.58 the prior year.
Looking at the Berlin property market, Phoenix Spree noted that the Berlin Senate passed a draft bill for the new rent price cap, which is to be adopted and come into force in early February.
The company said it remains of the view that the new price cap is "unconstitutional and illegal", and has raised concerns on whether the state of Berlin has the authority to pass the legislation, as it deviates from existing German federal law.
Overall however, Phoenix Spree said it is not clear what impact the rent controls will have on future property prices.
"I am pleased with the continued performance of the portfolio and the progress made in mitigating any short-term impact on the portfolio during the period of uncertainty created by the proposed rent controls," said Chair Robert Hingley.
"Supported by our strong balance sheet, we remain well placed to take advantage of selective acquisition opportunities and share buy-backs, while maintaining our strategic optionality in the event the rent control proposals are found to be unconstitutional," Hingley added.
Shares in Phoenix Spree Deutschland were up 0.8% at 316.00 pence on Thursday in London.
By Dayo Laniyan; [email protected]
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