We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register for streaming realtime charts, analysis tools, and prices.
| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Phoenix Spree Deutschland Limited | LSE:PSDL | London | Ordinary Share | JE00B248KJ21 | SHS NPV |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 142.00 | 139.50 | 144.50 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Real Estate Investment Trust | 26.29M | -15.44M | -0.1681 | -8.45 | 130.39M |
From Apr 2019 to Apr 2024
TIDMPSDL
RNS Number : 5019K
Phoenix Spree Deutschland Limited
22 September 2016
Phoenix Spree Deutschland Limited
(The "Company" or "PSDL")
Interim Results for the half year to 30 June 2016
Phoenix Spree Deutschland (LSE: PSDL.LN), the UK listed investment company specialising in German residential real estate, announces its Interim Results for the six months ended 30 June 2016.
First half financial highlights
Hot Features
Premium
- Profit before tax up 71.4% on H1 2015 to EUR15.7 million
- EPRA NAV per share up 6.1% in H1 2016 to EUR2.42 per share
- EPRA NAV per share total return for H1 2016 of 7.8%
- H1 dividend of 1.60p (1.92 Euro cents), up 23% on H1 2015
- Share placing successfully completed in March 2016, raising
gross proceeds of GBP38m
Operational highlights
- Portfolio value increased by 16.7% in H1 2016, and by 9.8%
on a like-for-like basis, to EUR329.8 million
- Berlin posted largest like-for-like increase at 13.7%
- Annual like-for-like rent per sqm growth of 5.7%
- Reversionary rent strategy continued: new leases signed
at 26.4% premium to passing rents
- Two properties acquired for EUR6.1m in H1 2016, with a further
four already notarised in H2 for a value of EUR33.7m
- Berlin now represents in excess of 70% of portfolio by value
Outlook
- Berlin property market outlook remains favourable, underpinned
by low interest rates and lack of supply
- Significant potential to create value through reversionary
letting and condominium sales
- Further scope for growth in property values, particularly
in Central Berlin
- Strong balance sheet, with capacity to fund attractive
pipeline of acquisition opportunities
- Company on track to deliver target annual return of 8-10%
per annum
Robert Hingley, Chairman of Phoenix Spree Deutschland, commented:
"I am delighted to announce today's results, which demonstrate further growth in rents and property values resulting in an EPRA NAV per share total return of 7.8% for the half year. The Company continues to take advantage of the strong reversionary rental potential that exists within the Company's portfolio, including the opportunity to create value through the sale of apartment blocks as condominiums. German residential property remains an attractive asset class, particularly in Berlin, and the Company is well placed to grow its portfolio in order to benefit from strong market fundamentals"
For further information please contact:
Phoenix Spree Deutschland Limited Stuart Young +44 (0)20 7292 7153 Liberum Capital Limited (Corporate Broker) Christopher Britton +44 (0)20 3100 2222 Bell Pottinger (Financial PR) Nick Lambert +44 (0)20 3772 2500 Elizabeth Snow
Chairman's Statement
The Company has built on the success of 2015 to produce another strong set of results. The first half of 2016 saw further growth in rents and property values, resulting in an EPRA NAV per share total return of 7.8% for the half year. This puts the Company well on track to achieve its target annual return per share of 8-10%.
The Company's strategy is to invest in German real estate, particularly residential property in Berlin, and to exploit its reversionary potential. In the first half, this was achieved through the re-letting of apartments at significant premiums to passing rents, and through the sale of individual apartments (condominiums) at values materially higher than for rental properties within the portfolio.
In March 2016, the Company successfully completed a GBP38 million share placing, the proceeds of which are being used to fund further property acquisitions. Since listing on the London Stock Exchange in June 2015, the Company has acquired more than EUR75 million of Berlin residential property. Further transactions are expected before the year end, and Berlin now represents over 70% of the portfolio by value.
Market conditions remain favourable, particularly in Berlin, with evidence of growing demand from investors and owner-occupiers, a limited supply of new-build property and interest rates recently reaching all-time lows. The Board remains confident that the Company is well placed to take advantage of these positive conditions and provide capital growth and dividend income to its investors. The Board is pleased to declare a dividend of 1.6p (EUR1.92 Euro cents) per share for the first half of the year, an increase of 23% over 2015.
Operational and Financial Review
Financial Highlights
Financial Summary EUR million unless otherwise stated 30-Jun-16 30-Jun-15 31-Dec-15 Gross rental income 7.6 5.4 12.1 Profit Before Tax 15.7 9.1 13.0 Pre-Exceptional Profit Before Tax 17.2 10.8 19.7 Reported EPS (EUR) 0.14 0.13 0.14 Investment Property Value 329.8 258.3 282.8 Net debt 101.6 104.9 121.0 Net LTV (1) 30.8% 40.6% 42.8% EPRA NAV per share (EUR) 2.42 2.19 2.28 EPRA NAV per share (GBP) (2) 2.02 1.55 1.67 Dividend per share (EUR cents) 1.92 1.83 3.94 Dividend per share (GBP pence) 1.60 1.30 2.90 EPRA NAV per share total return for period (EUR%) 7.8% 9.7% 10.0% EPRA NAV per share total return for period (GBP%) 22.7% -2.4% 4.5% (1) Debt less cash as a proportion of value of investment property (2) Exchange rate of 1.20 at 30 June 2016, 1.41 at 30 June 2015, 1.36 at 31 December 2015
Like-for-like portfolio value increase of 9.8%
As at 30 June 2016, the portfolio was valued at EUR329.8 million (31 December 2015: EUR282.8 million) by Jones Lang LaSalle GmbH, the Company's external property valuer. This represents an increase of 16.7% over the six-month period, equating to an average value per square metre of EUR1,775 (31 December 2015: EUR1,635) and a gross fully occupied yield of 5.2% (31 December 2015: 5.7%). Included within the portfolio are condominium properties with an aggregate value of EUR4.7m (30 June 2015: Nil) of which EUR0.4m was held for sale at the half year end.
On a like-for-like basis, after adjusting for the impact of acquisitions and disposals, the portfolio valuation rose by 9.8% per cent in the six months ended 30 June 2016, compared to an increase of 10.6% for the year ended 31 December 2015. This reflects a combination of market growth, improved rents, and the increasing impact of rising condominium values on multi-family home pricing.
By geographic segment, Berlin posted the largest like-for-like increase at 13.7%. As at 30 June 2016, Berlin represented 70.1% of the portfolio by value, up from 63.4% as at 30 June 2015.
EPRA NAV increase of 6.1%
EPRA NAV per share rose by 6.1% in the first half of 2016 to EUR2.42 (GBP2.02) (31 December 2015: EUR2.28 (GBP1.67)). After taking into account the 2015 final dividend of 2.9p (3.94 Euro cents), which was paid in June 2016, the EPRA NAV total return in the first half of 2016 was 7.8%.
EPRA NAV per share growth in the first half, before exceptional costs associated with the share placing in Q1 2016, was 8.5%. Other factors affecting NAV growth include the costs related to recent property acquisitions and the short term impact of un-invested cash balances from the recent fund raising.
Strong rental performance
Annualised rental income as at 30 June 2016 stood at EUR15.1m (30 June 2015: EUR13.2m). Adjusting for acquisitions and disposals, this represents a like-for-like increase of 4.7% compared with 30 June 2015.
Average in place rent was EUR7.6 per sqm as at 30(th) June 2016, an increase of 5.1% compared with 30 June 2015. On a like-for-like basis, the increase was 5.7%, with Berlin and Nuremberg & Furth both experiencing a strong increase.
Reported vacancy was 11.1% at 30 June 2016 (30 June 2015: 10.3%). On an EPRA basis, which adjusts for units undergoing development and made available for sale, the vacancy rate was 3.2% (June 2015 5.6%).
New lettings' premium sustained
The Company continues to let units at a significant premium to in-place rents. During the period, 159 leases were signed, representing an annualised letting rate of 12.5% of units. The average rent achieved on new lettings was EUR9.4 per sqm, a 5.4% increase on the same period in 2015. In Berlin new leases were signed at an average rate of EUR10.9 per sqm, a 37.4% premium to passing rents and an increase of 7.2% compared to 30 June 2015.
Acquisitions and disposals
As at 31 August 2016, the Company had exchanged contracts on six Berlin property packages during 2016, consisting of 375 residential and 13 commercial units, for an aggregate purchase price of EUR39.7 million and representing an average price per square metre of EUR1,771. Two of the property packages were structured as share deals, which benefit from lower acquisition costs.
Acquisitions representing a consideration of EUR22.9 million have completed in H1 2016, consisting of four properties notarised in 2015 and one property acquired in 2016. Taking into account properties notarised but which had not completed as at 30 June 2016, the Company's Berlin properties represent 73.1% of its portfolio value, versus 70.1% as at 30 June 2016.
Including the acquisition of Boxhagenerstrasse, which completed in October 2015 for EUR16.0 million (excluding acquisition costs), as at 31 August 2016, the Company had completed or notarised 11 Berlin property acquisitions since listing on the London Stock Exchange in June 2015. In aggregate, these were acquired for EUR75.5 million and comprise 588 apartments and 27 commercial units, with a lettable area of c.40,650 sqm.
Condominium sales
Five apartments were notarised for sale during the first half of 2016, representing a sales' value of EUR1.2 million. The average value per sqm achieved was EUR3,662. Since the period end, a further two apartments have been notarised for sale. As at 31 August 2016, 55.3% of available units at the two Berlin Kreuzberg apartment blocks had been sold.
Since the half year end, marketing of the property in Boxhagenerstrasse, in Berlin Friedrichshain, has started and the first condominium sales are expected to take place within the next two months. An additional property in Friedrichshain is being considered for privatisation which, subject to final approval, is expected to contribute to condominium sales during the first half of 2017.
The Company had expected to augment condominium sales further with a project in Berlin Moabit. The process was at an advanced stage, with planning permission granted and the application to partition having been lodged with the land registry. However, in May, the Company was informed by the authorities that they would not approve the application to split this property's entry on the land registry, since the area where the property resides had subsequently been assigned to the special protection register. This property is in the process of being let, and it is expected that the rent achieved will command a significant premium to the portfolio's average rent per sqm in Berlin.
Regional overview
% Gross Fully
of rent Value occupied
fund Total Gross per per gross EPRA
by Resi Comm Total sqm rent sqm Valuation sqm yield Vacancy Vacancy
Market value Buildings units units units ('000) (EURm) (EUR) (EURm) (EUR) % % %
Berlin
(incl. Greater
Area) 70% 59 1,321 100 1,421 107.6 8.9 7.9 231.3 2,150 4.5% 12.6% 2.7%
Central
& North
Germany 18% 42 805 47 852 50.3 3.9 7.0 59.4 1,182 7.2% 7.6% 5.5%
Nuremberg
& Furth 9% 17 200 26 226 19.6 1.4 7.2 29.3 1,496 6.1% 14.4% 1.4%
Baden-Wurttemberg 3% 2 18 24 42 8.4 0.8 8.6 9.8 1,167 8.8% 4.4% 0.9%
Total 100% 120 2,344 197 2,541 185.8 15.1 7.6 329.8 1,775 5.2% 11.1% 3.2%
As at 30 June 2016, Berlin represented 70.1% of the portfolio by value, and the region has continued its strong performance in the first half, with significant growth in rents and property values. Reported average rent per let sqm stood at EUR7.9, an increase of 5.3% compared with 30 June 2015. On a like-for-like basis, the increase was 7.6%, a record for the Company. The principal driver for the increase remains the strong reversionary increase achieved on re-letting. In the first half of 2016 the average rent achieved for new leases was EUR10.9 per sqm, a 37.4% premium to the average rent per let sqm.
In Nuremberg & Furth, average rents increased by 7.7% compared with 30 June 2015 to EUR7.2 per sqm, while Northern Germany saw an increase of 4.5%. The decrease of 4.6% in Baden-Wurttemberg reflected the impact of a lease extension at the Company's office property in Holzgerlingen.
Financial Results
Reported revenue for the six-month period was EUR7.6 million (six months to 30 June 2015: EUR5.4 million). This increase represents a combination of organic growth in rental income, the impact of acquisitions, and the full consolidation of Phoenix Spree Property Fund (PSPF) for the period (in the period to 30 June 2015, PSPF was consolidated from 9 March 2015).
On an IFRS basis, the Company reported a profit before taxation for the period to 30 June 2016 of EUR15.7 million (30 June 2015 : EUR9.1 million). This is after charging a number of one off or non-cash items totalling EUR7.3m, consisting of:
- costs relating to the placing of 22.6 million shares in March 2016 of EUR1.6 million (30 June 2015: EUR1.7 million costs relating to stock market listing);
- a charge to the profit and loss account of EUR2.8 million relating to the accrual of the Property Advisor performance fee (30 June 2015: zero). The charge reflects the potential fee payable to the Property Advisor, due to the increase in EPRA NAV under the terms of the Property Advisor Agreement; and
- mark-to-market interest rate swap losses of EUR2.9m (30 June 2015: gain of EUR0.8m)
The results were positively affected by a revaluation gain of EUR21.7 million (30 June 2015: EUR9.0 million). Excluding the revaluation gain, the Company reported a loss before tax of EUR6 million (30 June 2015: profit before tax of EUR0.2m).
The Company invested EUR1.3 million in property renovations during the first half. It is expected that the majority of investment in 2016 will take place during the second half of the year.
Reported earnings per share for the period were 14c (June 2015: 13c).
In line with its policy of paying a dividend which is equivalent to 2.5% of EPRA NAV, the Board has declared a dividend of 1.60 pence (EUR1.92 cents) per share (30 June 2015: 1.30 pence (EUR1.83 cents) for the first half of the year. The dividend is expected to be paid on or around 14 of October 2016 to shareholders on the register at close of business on 30 September 2016, with an ex-dividend date of 29 September 2016.
Balance Sheet
As at 30 June 2016, the Company had gross borrowings of EUR143.6 million (30 June 2015: EUR121.8m) and cash balances of EUR42.0 million (30 June 2015: EUR16.9 million), resulting in net debt of EUR101.6 million (30 June 2015 : EUR104.9m) and a net loan to value of 30.8% (30 June 2015: 40.6%). The increase in cash balances, and resulting fall in net loan to value, is reflective of the recent share placing which resulted in a fundraising of GBP38 million before costs. The Company is in the process of deploying these proceeds in the form of property acquisitions within the Berlin region.
In January 2016, the Company entered into a EUR16.7 million six year facility with DG Hyp relating to properties notarised during the second half of 2015. The effective interest rate on the new facility is 1.3%. As at 30 June 2016 the Company had drawn 100% of this facility.
The average interest rate payable on the Company's debt as at 30 June 2016 was 2.0% (30 June 2015: 2.2%). EUR8.4 million of debt is due for repayment in November 2016 and the Company expects to refinance this debt upon maturity.
Market outlook
The first half of 2016 has seen the Company achieve record rental prices, while experiencing good demand for its condominium sales. Demand for residential property from all of tenants, owner-occupiers and investors remains healthy. Despite recent increases, property values, on average, remain below the cost of construction. Recent declines in long term bond yields have increased the relative attraction of residential property as an investment, while reducing financing costs for property owners. For example, as at 31 August 2016, the net yield on the Company's portfolio stood at a premium of around 400bps to 10 yr bunds, which in June 2016 moved into negative territory for the first time. Population growth in most German cities, coupled with limited supply of residential property, is also supportive of further growth in rents and property values. The Company therefore believes there remains significant scope for further growth in property values and that its portfolio, with its focus on Central Berlin, is well placed to take advantage of these trends.
Key Performance Indicators
The Company has chosen a number of Key Performance Indicators (KPI's), which the Board believes may help investors understand the performance of the Company and the underlying property portfolio.
Key Performance Indicator 2016 2015 2015 2014 2013
HY FY HY
------------------------------ ----- ------ ----- ----- -----
Like-for-like property value
growth 9.8% 10.6% 5.5% 8.6% 8.8%
------------------------------ ----- ------ ----- ----- -----
Like-for-like property rent
per sqm EUR 7.7 7.4 7.2 7.1 6.8
------------------------------ ----- ------ ----- ----- -----
EPRA vacancy 3.2% 3.9% 5.6% 4.1% 8.0%
------------------------------ ----- ------ ----- ----- -----
Condominium sales EURm 1.2 4.7 - - -
------------------------------ ----- ------ ----- ----- -----
EPRA NAV per share EUR 2.42 2.28 2.19 2.06 1.92
------------------------------ ----- ------ ----- ----- -----
Dividend per share p 1.60 2.90 1.30 - -
------------------------------ ----- ------ ----- ----- -----
Forward looking statements
The interim management report contains certain forward looking
statements in respect of Phoenix Spree Deutschland Limited and
the operation of its subsidiaries. These statements and forecasts
involve risk and uncertainty because they relate to events and
depend upon circumstances that may or may not occur in the future.
There are a number of factors that could cause actual results
or developments to differ materially from those expressed or
implied by these forward looking statements and forecasts. Nothing
in this announcement should be construed as a profit forecast.
Responsibility statement
We confirm that to the best of our knowledge;
(a) the condensed set of financial statements, which has been
prepared in accordance with the applicable set of accounting
standards, gives a true and fair view of the assets, liabilities,
financial position and profit and loss of the Group, included
in the consolidation as a whole as required by DTR 4.2.4R;
(b) the condensed set of financial statements has been prepared
in accordance with IAS 34 'Interim Financial Reporting';
(c) the interim management report includes a fair review of
the information required by DTR 4.2.7R (indication of important
events during the first six months and their impact on the condensed
set of financial statements and description of principal risks
and uncertainties for the remaining six months of the year);
and
(d) the interim management report includes a fair review of
the information required by DTR 4.2.8R (disclosure of related
party transactions and changes therein).
By order of the Board of
Directors
Robert Hingley
Non-executive Director and
Chairman
Condensed Consolidated Statement of Comprehensive Income
For the six months ended 30 June
2016
Notes Six months Six months Year
ended ended ended
30 June 30 June 31 December
2016 2015 2015
(unaudited) (unaudited) (audited)
Continuing Operations EUR'000 EUR'000 EUR'000
Revenue 5 7,624 5,368 12,070
Property expenses 6 (6,324) (2,901) (7,258)
------------ ------------ ------------
Gross profit 1,300 2,467 4,812
Other operating income 57 73 261
Administrative expenses 7 (1,406) (692) (2,410)
Gain on disposal of investment property 8 422 - 670
Investment property fair value gain 15 21,662 8,979 18,148
------------ ------------ ------------
Operating profit before exceptional
costs 22,035 10,827 21,481
Exceptional items - transaction
costs 9 (1,592) (1,682) (2,256)
Exceptional items - impairment of
goodwill - - (4,493)
------------ ------------ ------------
Operating profit 20,443 9,145 14,732
Net finance charge 10 (4,788) (1,381) (3,164)
Gain on financial asset 11 - 1,368 1,395
Profit before taxation 15,655 9,132 12,963
Income tax expense 12 (3,269) (1,096) (2,640)
Profit after taxation 12,386 8,036 10,323
Other comprehensive income - - -
Total comprehensive income for the
period 12,386 8,036 10,323
============ ============ ============
Total comprehensive income attributable
to:
Owners of the parent 12,144 7,899 9,721
Non-controlling interests 242 137 602
------------ ------------ ------------
12,386 8,036 10,323
============ ============ ============
Earnings per share attributable
to the owners of the parent:
From continuing operations
Basic (EUR) 22 0.14 0.13 0.14
Diluted (EUR) 22 0.14 0.13 0.14
============ ============ ============
Condensed Consolidated Statement of Financial Position
As at 30 June 2016
Notes As at As at As at
30 June 30 June 31 December
2016 2015 2015
(unaudited) (unaudited) (audited)
EUR'000 EUR'000 EUR'000
ASSETS
Non-current assets
Goodwill 14 - 4,493 -
Investment properties 15 329,493 258,331 283,554
Property, plant and equipment 31 31 30
Deferred tax asset 12 749 284 296
Loans and receivables 16 1,409 1,355 1,382
331,682 264,494 285,262
Current assets
Investment properties - held
for sale 15 354 - -
Trade and other receivables 2,037 2,051 2,286
Cash and cash equivalents 42,039 16,876 12,757
44,430 18,927 15,043
Total assets 376,112 283,421 300,305
============ ============ ============
EQUITY AND LIABILITIES
Current liabilities
Borrowings 17 8,418 4,327 11,523
Trade and other payables 935 1,732 2,684
Current tax 9 - -
9,362 6,059 14,207
Non-current liabilities
Borrowings 17 135,218 117,471 122,278
Derivative financial instruments 18 4,734 1,843 1,869
Other financial liabilities 19 3,113 - -
Deferred tax liability 12 14,500 9,198 10,786
------------ ------------ ------------
157,565 128,512 134,933
------------ ------------ ------------
Total liabilities 166,927 134,571 149,140
------------ ------------ ------------
Equity
Stated capital 21 164,230 115,150 115,150
Share based payment reserve 20 4,101 - 1,264
Retained earnings 40,854 31,539 32,125
------------ ------------ ------------
Equity attributable to owners
of the parent 209,185 146,689 148,539
Non-controlling interest - 2,161 2,626
Total equity 209,185 148,850 151,165
------------ ------------ ------------
Total equity and liabilities 376,112 283,421 300,305
============ ============ ============
Condensed Consolidated Statement of Changes in Equity
For the six months ended 30 June
2016
Attributable to the owners of the
parent
Share
based
Stated payment Retained Non-controlling Total
capital reserve earnings Total interest equity
EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000
Balance at 1 January 2015 67,708 8,949 23,640 100,297 (4) 100,293
Comprehensive income:
Profit for the period - - 7,899 7,899 137 8,036
Other comprehensive income - - - - - -
--------- --------- ---------- -------- ---------------- --------
Total comprehensive income
for the period - - 7,899 7,899 137 8,036
Transactions with owners
- recognised directly in
equity:
Issue of share capital 39,052 - - 39,052 - 39,052
Performance fee 8,390 (8,390) - - - -
Synthetic equity fee - (559) - (559) - (559)
Acquisition of subsidiary - - - - 2,028 2,028
Balance at 30 June 2015 115,150 - 31,539 146,689 2,161 148,850
Comprehensive income:
Profit for the period - - 1,822 1,822 465 2,287
Other comprehensive income - - - - - -
--------- --------- ---------- -------- ---------------- --------
Total comprehensive income
for the period - - 1,822 1,822 465 2,287
Transactions with owners
- recognised directly in
equity:
Dividends paid - - (1,236) (1,236) - (1,236)
Performance fee - 1,264 - 1,264 - 1,264
Balance at 31 December
2015 115,150 1,264 32,125 148,539 2,626 151,165
Comprehensive income:
Profit for the period - - 12,144 12,144 242 12,386
Other comprehensive income - - - - - -
--------- --------- ---------- -------- ---------------- --------
Total comprehensive income
for the period - - 12,144 12,144 242 12,386
Transactions with owners
- recognised directly in
equity:
Issue of share capital 49,080 - - 49,080 - 49,080
Dividends paid - - (3,414) (3,414) - (3,414)
Performance fee - 2,837 - 2,837 - 2,837
Recognition of redemption
liability - - (1) (1) (2,868) (2,869)
Balance at 30 June 2016 164,230 4,101 40,854 209,185 - 209,185
========= ========= ========== ======== ================ ========
Condensed Consolidated Statement of Cash Flows
For the six months ended 30 June 2016
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2016 2015 2015
(unaudited) (unaudited) (audited)
EUR'000 EUR'000 EUR'000
Profit before tax 15,655 9,132 12,963
Adjustments for:
Net finance charge 4,788 1,381 3,164
Gain on disposal of investment property (422) - (670)
Investment property revaluation gain (21,662) (8,979) (18,148)
Gain on financial asset - (1,368) (1,395)
Depreciation 5 - 6
Performance fee charge 2,837 - 1,264
Impairment of goodwill - - 4,493
------------ ------------ ------------
Operating cash flows before movements
in working capital 1,201 166 1,677
Decrease/(Increase) in receivables 481 (323) 1,807
(Decrease)/Increase in payables (1,749) (3,533) 1,250
Cash (used in)/generated from operating
activities (67) (3,690) 4,734
Income tax (paid)/received - (19) 5
------------ ------------ ------------
Net cash (used in)/generated from operating
activities (67) (3,709) 4,739
Cash flow from investing activities
Proceeds on disposal of investment property 2,277 - 5,502
Acquisition of subsidiary - 1,165 1,165
Bank interest received 102 13 6
Capital expenditure on investment property (1,303) (1,253) (3,934)
Property additions (25,183) - (17,413)
Additions to property, plant and equipment (6) - (23)
Loans to partners - - (1,365)
Net cash used in investing activities (24,113) (75) (16,062)
Cash flow from financing activities
Interest paid on bank loans (1,756) (2,228) (3,978)
Repayment of bank loans (6,815) (46,000) (46,000)
Drawdown on bank loan facilities 16,650 65,833 72,266
Share issue 49,080 - -
Cash settled Synthetic equity fee - (559) (559)
Dividends paid (3,414) - (1,236)
Net cash generated from financing activities 53,745 17,046 20,493
Net increase in cash and cash equivalents 29,565 13,262 9,170
Cash and cash equivalents at beginning
of period 12,757 3,583 3,583
Exchange (losses)/gains on cash and
cash equivalents (283) 31 4
Cash and cash equivalents at end of
period 42,039 16,876 12,757
============ ============ ============
Notes to the Condensed Consolidated Financial Statements
For the six months ended 30 June 2016
1. General information
Phoenix Spree Deutschland Limited is a public limited company which
is listed on the premium segment of the main market of the London
Stock Exchange and is incorporated and domiciled in Jersey, and operates
out of Jersey and Germany. The Group's principal activity is the
holding of investment properties located in Germany. The Company's
ordinary shares were admitted to trading on the London Stock Exchange
on 15 June 2015.
The registered office of the company is 13-14 Esplanade, St. Helier,
Jersey JE1 1BD.
2. Basis of preparation
The interim condensed set of consolidated financial statements has
been prepared in accordance with the Disclosure and Transparency
Rules of the Financial Conduct Authority and with IAS 34 Interim
Financial Reporting as adopted by the European Union.
The interim condensed financial statements do not include all the
information and disclosures required in the annual financial statements,
and should be read in conjunction with the Group's annual financial
statements for the year ended 31 December 2015.
As required by the Disclosure and Transparency Rules of the Financial
Conduct Authority, the financial statements have been prepared applying
the accounting policies and presentation that were applied in the
preparation of the Company's published consolidated financial statements
for the year ended 31 December 2015.
The comparative figures for the financial year ended 31 December
2015 are extracted from but do not comprise, the Group's annual financial
statements for that financial year.
The condensed interim financial statements were authorised and approved
for issue on 20th September 2016.
The condensed interim financial statements are neither audited nor
reviewed and do not constitute statutory accounts within the meaning
of Section 105 of the Companies (Jersey) Law 1991.
Identification of business risks
The Group's principal risks and uncertainties are consistent with
those noted in the Annual Report for the year ended 31 December 2015
being compliance with financial covenants on bank borrowing, tenant
default, liquidity, interest rate hedging instruments and interest
rate movements on bank borrowings. The Directors consider that the
significant areas of judgement made by management that have significant
effect on the Group's performance and estimates with a significant
risk of material adjustment in the second half of the year are unchanged
from those identified in the Annual Report for the year ended 31
December 2015.
Going concern
The interim condensed financial statements have been prepared on
a going concern basis which assumes the Group will be able to meet
its liabilities as they fall due for the foreseeable future. The
directors have prepared cash flow forecasts which show that the cash
generated from operating activities will provide sufficient cash
headroom for the foreseeable future.
3. Critical accounting judgements and estimates
The preparation of condensed consolidated financial statements in
conformity with IFRS requires the Group to make certain critical
accounting estimates and judgements. In the process of applying the
Group's accounting policies, management has decided the following
estimates and assumptions have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities recognised
in the condensed consolidated financial statements.
i) Estimate of fair value of investment properties
The best evidence of fair value is current prices in an active market
for similar properties and other contracts. In the absence of such
information, the Group determines the amount within a range of reasonable
fair value estimates. In making its judgement, the Group considers
information from a variety of sources including:
a) Current prices in an active market, and its third party independent
experts, for properties of different nature, condition or location
(or subject to different lease or other contracts), adjusted to reflect
those differences.
b) Recent prices of similar properties in less active markets, with
adjustments to reflect any changes in economic conditions since the
date of the transactions that occurred at those prices.
c) Discounted cash flow projections based on reliable estimates of
future cash flows, derived from the terms of any existing lease and
other contracts, and (where possible) from external evidence such
as current market rents for similar properties in the same location
and condition, and using discount rates that reflect current market
assessments of the uncertainty in the amount and timing of the cash
flows.
Principal assumptions for management's estimation of fair value of
investment property
If information on current or recent prices or assumptions underlying
the discounted cash flow approach is not available, the fair values
of investment properties are determined using discounted cash flow
techniques. The Group uses its third party independent experts and
assumptions that are mainly based on market conditions existing at
each reporting date. The principal assumptions underlying management's
estimation of fair value are those related to: the receipt of contractual
rentals; expected future market rentals; void periods; maintenance
requirements; and appropriate discount rates. These valuations are
regularly compared to actual market yield data and actual transactions
by the Group and those reported by the market. The expected future
market rentals are determined on the basis of current market rentals
for similar properties in the same location and condition.
4. Segmental Information
Information reported to the Board of Directors, which is the chief
operating decision maker, for the purposes of resource allocation
and assessment of segment performance is focussed on the different
revenue streams that exist within the Group. The Group's principal
reportable segments under IFRS 8 are therefore as follows:
-- Residential
-- Commercial
All revenues are earned in Germany with property and administrative
expenses incurred in Jersey and Germany.
4. Segmental Information (continued)
31 December 2015 (audited)
Residential Commercial Unallocated Total
EUR'000 EUR'000 EUR'000 EUR'000
Goodwill - - - -
Investment property 235,350 48,204 - 283,554
Loans and receivables - - 1,382 1,382
Other assets 12,486 2,557 326 15,369
Liabilities (113,283) (23,202) (12,655) (149,140)
------------ ----------- ------------ ----------
Net assets 134,553 27,559 (10,947) 151,165
============ =========== ============ ==========
Residential Commercial Unallocated Total
EUR'000 EUR'000 EUR'000 EUR'000
Revenue 10,018 2,052 - 12,070
Property expenses (6,024) (1,234) - (7,258)
Other operating income - - 261 261
Administrative expenses - - (2,410) (2,410)
Gain on disposal of investment
property 670 - - 670
Investment property fair
value gain 15,062 3,086 - 18,148
Operating profit 19,726 3,904 (2,149) 21,481
------------ ----------- ------------ ----------
Exceptional costs (2,256)
Impairment of goodwill (4,493)
Net finance charge (3,164)
Gain on financial asset 1,395
Income tax expense (2,640)
Profit for the year 10,323
==========
30 June 2015 (unaudited)
Residential Commercial Unallocated Total
EUR'000 EUR'000 EUR'000 EUR'000
Goodwill - - 4,493 4,493
Investment property 214,415 43,916 - 258,331
Loans and receivables - - 1,355 1,355
Other asset 15,709 3,218 315 19,242
Liabilities (102,530) (21,000) (11,041) (134,571)
------------ ----------- ------------ ----------
Net assets 127,594 26,134 (4,878) 148,850
============ =========== ============ ==========
Residential Commercial Unallocated Total
EUR'000 EUR'000 EUR'000 EUR'000
Revenue 4,455 913 - 5,368
Property expenses (2,408) (493) - (2,901)
Other operating income - - 73 73
Administrative expenses - - (692) (692)
Gain on disposal of investment - - - -
property
Investment property fair
value gain - - 8,979 8,979
Operating profit 2,047 420 8,360 10,827
------------ ----------- ------------ ----------
Exceptional costs (1,682)
Net finance charge (1,381)
Gain on financial asset 1,368
Income tax expense (1,096)
Profit for the period 8,036
==========
4. Segmental Information (continued)
30 June 2016 (unaudited)
Residential Commercial Unallocated Total
EUR'000 EUR'000 EUR'000 EUR'000
Goodwill - - - -
Investment property 273,479 56,014 - 329,493
Loans and receivables - - 1,409 1,409
Other assets 37,559 7,620 31 45,210
Liabilities (135,958) (27,847) (3,122) (166,927)
------------ ------------------- ------------------- ------------------
Net assets 175,080 35,787 (1,682) 209,185
============ =================== =================== ==================
Residential Commercial Unallocated Total
EUR'000 EUR'000 EUR'000 EUR'000
Revenue 6,328 1,296 - 7,624
Property expenses (5,249) (1,075) - (6,324)
Other operating income - - 57 57
Administrative expenses - - (1,406) (1,406)
Gain on disposal of investment
property 422 - - 422
Investment property fair
value gain 17,979 3,683 - 21,662
Operating profit 19,480 3,904 (1,349) 22,035
------------ ------------------- ------------------- ------------------
Exceptional costs (1,592)
Net finance charge (4,788)
Gain on financial asset -
Income tax expense (3,269)
Profit for the period 12,386
==================
5. Revenue
30 June 30 June 31 December
2016 2015 2015
(unaudited) (unaudited) (audited)
EUR'000 EUR'000 EUR'000
Rental income 7,624 5,368 12,070
=================== =================== ====================
6. Property expenses
30 June 30 June 31 December
2016 2015 2015
(unaudited) (unaudited) (audited)
EUR'000 EUR'000 EUR'000
Property management expenses 529 419 942
Repairs and maintenance 543 426 921
Doubtful debt expense 130 (46) 153
Other property expenses 742 1,030 1,404
Property advisors' fees and expenses 1,543 1,072 2,574
Property advisors' performance
fee 2,837 - 1,264
6,324 2,901 7,258
============ ============ ============
7. Administrative expenses
30 June 30 June 31 December
2016 2015 2015
(unaudited) (unaudited) (audited)
EUR'000 EUR'000 EUR'000
Secretarial & administration
fees 304 82 400
Legal & professional fees 587 493 1,386
Directors' fees 44 - 108
Accountancy fees 121 96 319
Audit fees 51 37 156
Bank charges 11 15 39
Loss/(profit) on foreign
exchange 283 (31) (4)
Depreciation 5 - 6
1,406 692 2,410
============ ============ ============
8. Gain on disposal of investment property
30 June 30 June 31 December
2016 2015 2015
(unaudited) (unaudited) (audited)
EUR'000 EUR'000 EUR'000
Net proceeds 2,277 - 5,502
Book value of disposals (1,855) - (4,832)
422 - 670
==================== ==================== ====================
9. Exceptional costs
30 June 30 June 31 December
2016 2015 2015
(unaudited) (unaudited) (audited)
EUR'000 EUR'000 EUR'000
Professional fees associated
with stock market listing,
share placing and acquisition
of subsidiaries 1,592 1,682 2,256
1,592 1,682 2,256
=================== =================== ===================
Exceptional costs have been defined as those costs directly attributable
to the listing and share placing on the London Stock Exchange and
any costs directly associated with the acquisition of subsidiaries.
10. Net finance charge
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2016 2015 2015
(unaudited) (unaudited) (audited)
EUR'000 EUR'000 EUR'000
Interest income (102) (13) (6)
Loss/(gain) on interest
rate swap 2,865 (834) (808)
Interest payable on bank
borrowings 1,640 1,213 2,853
Finance arrangement fees 141 28 138
Finance cost of redemption 244 - -
liability
Early termination fee - 987 987
4,788 1,381 3,164
==================== ===================== ====================
11. Financial assets at fair value through profit
and loss
As at As at As at
30 June 30 June 31 December
2016 2015 2015
(unaudited) (unaudited) (audited)
EUR'000 EUR'000 EUR'000
Equity interest in Phoenix
Spree Property Fund GmbH
and Co.KG:
Balance at the beginning
of the period - 36,859 36,859
Gain on financial asset - 1,368 1,395
Acquisition of subsidiary - (38,227) (38,254)
- - -
=============== ============ ============
12. Taxation
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2016 2015 2015
(unaudited) (unaudited) (audited)
The tax charge for the
period is as follows: EUR'000 EUR'000 EUR'000
Current tax charge 8 8 (24)
Deferred tax charge 3,261 1,088 2,664
Current tax charge for
the period 3,269 1,096 2,640
=============== ============ ==================
Capital gains Interest Total
on properties rate swaps
The movement in respect EUR'000 EUR'000 EUR'000
of deferred taxation is
as follows:
(Liability) Asset (Net liability)
Balance at 1 January 2015 (3,211) 237 (2,974)
Acquisition of subsidiary (5,011) 159 (4,852)
Movement for the period (976) (112) (1,088)
--------------- ------------ ------------------
Deferred tax at 30 June
2015 (9,198) 284 (8,914)
Movement for the period (1,588) 12 (1,576)
--------------- ------------ ------------------
Deferred tax at 31 December
2015 (10,786) 296 (10,490)
Movement for the period (3,714) 453 (3,261)
--------------- ------------ ------------------
Deferred tax at 30 June
2016 (14,500) 749 (13,751)
=============== ============ ==================
13. Dividends
As at As at As at
30 June 30 June 31 December
2016 2015 2015
(unaudited) (unaudited) (audited)
EUR'000 EUR'000 EUR'000
Dividends on participating shares
proposed for approval (not recognised
as a liability at 30 June 2016)
Proposed interim dividend for the
year ended 31 December 2016 of 1.60p
(1.92 Euro cents) (2015: 1.30p (1.83
Euro cents)) per share 1,771 1,202 -
Proposed final dividend for the year
ended 31 December 2015 of 2.90p (3.94
Euro cents) (2014: Nil) per share - - 3,639
============ ============ ============
Amounts recognised as distributions
to equity holders in the period:
Interim dividend for the year ended
31 December 2015 of 1.3p (2014: Nil)
per share - - 1,236
Final dividend for the year ended
31 December 2015 of 2.9p (2014: Nil)
per share 3,414 - -
============ ============ ============
14. Goodwill
EUR'000
Cost:
1 January 2015 193
Acquisition of subsidiary 4,493
--------
At 30 June 2015, 31 December 2015 and 30 June
2016 4,686
========
Accumulated impairment losses:
At 1 January 2015 (193)
Impairment charge for the
period -
--------
At 30 June 2015 (193)
Impairment charge for the
period (4,493)
--------
At 31 December 2015 and 30 June 2016 (4,686)
========
Carrying amount:
At 30 June 2015 4,493
========
At 31 December 2015 -
========
At 30 June 2016 -
========
15. Investment properties
EUR'000
Fair Value
At 1 January 2015 115,192
Capital expenditure 1,253
Additions on acquisition 132,907
Revaluation gain 8,979
----------------
At 30 June 2015 258,331
Capital expenditure 2,681
Disposals (4,832)
Property additions 17,413
Revaluation gain 9,169
----------------
Investment properties at fair value - as set out in the
report by JLL 282,762
Properties notarised for sale not completed
at year end 792
----------------
At 31 December 2015 283,554
Capital expenditure 1,303
Disposals (1,855)
Reclassified as investment properties -
held for sale (354)
Property additions 25,183
Revaluation gain 21,662
----------------
At 30 June 2016 329,493
================
The property portfolio was valued at 30 June 2016 by the Group's
independent valuers, Jones Lang LaSalle GmbH ("JLL"), in accordance
with the methodology described below.
The valuation is performed on a building-by-building basis and
the source information on the properties including current rent
levels, void rates and non-recoverable costs was provided to JLL
by the Property Advisors PMM Partners (UK) Limited. Assumptions
with respect to rental growth, adjustments to non-recoverable costs
and the future valuation of these are those of JLL. Such estimates
are inherently subjective and actual values can only be determined
in a sales transaction.
Having reviewed the JLL report, the Directors are of the opinion
that this represents a fair and reasonable valuation of the properties
and have consequently adopted this valuation in the preparation
of this financial information.
The valuations have been prepared by JLL on a consistent basis
at each reporting date and the methodology is consistent and in
accordance with IFRS, which requires that the 'highest and best
use' value is taken into account where that use is physically possible,
legally permissible and financially feasible for the property concerned,
and irrespective of the current or intended use.
Discounted cash flow method (DCF)
Under the DCF method, a property's fair value is estimated using
explicit assumptions regarding the benefits and liabilities of
ownership over the asset's life including an exit or terminal value.
As an accepted method within the income approach to valuation the
DCF method involves the projection of a series of cash flows on
a real property interest. To this projected cash flow series, an
appropriate, market-derived discount rate is applied to establish
the present value of the income stream associated with the real
property.
The duration of the cash flow and the specific timing of inflows
and outflows are determined by events such as rent reviews, lease
renewal and related lease up periods, re-letting, redevelopment,
or refurbishment. The appropriate duration is typically driven
by market behaviour that is a characteristic of the class of real
property. Periodic cash flow is typically estimated as gross income
less vacancy, non-recoverable expenses, collection losses, lease
incentives, maintenance cost, agent and commission costs and other
operating and management expenses. The series of periodic net operating
incomes, along with an estimate of the terminal value anticipated
at the end of the projection period, is then discounted.
The frequency of inflows and outflows (monthly, quarterly, annually)
is contract and market-derived.
An appropriate discount rate is then applied to the cash flow.
If the frequency of the time points selected for the cash flow
is, for example, quarterly, the discount rate must be the effective
quarterly rate and not a nominal rate. The DCF method assumes that
cash outflows occur in the same period that expenses are recorded.
The exit yield is normally separately determined and differs from
the discount rate.
The discount rate reflects the opportunity and risk aspects of
the market yield demanded by investors, and consist of an interest
rate for a risk-free investment, as well as a premium, to account
for specific investment risks associated with real estate investments.
The exit yield (capitalisation rate) is used to capitalise the
stabilised net operating income at year 10 in to perpetuity, as
it is assumed that properties are kept in stock aftyer the detailed
10 year planning period. The exit yield is based on each property's
individual discount rate.
Comparable Valuation Method
Where the Group has identified properties that may be suitable
for disposal in the medium term, the valuation is based on comparable
values for properties with similar attributes in a disposal scenario.
This includes the Company's properties identified for privatisation.
The table below sets out the assets valued using the discounted
cash flow method versus comparable valuations:
As at As at As at
30 June 30 June 31 December
2016 2015 2015
EUR'000 EUR'000 EUR'000
DCF Method 325,197 258,331 269,842
Comparable Valuation
Method 4,296 - 12,920
------------ -------- ----------------
Total 329,493 258,331 282,762
============ ======== ================
Investment properties - held for sale EUR'000
Fair Value
At 1 January 2016 -
Reclassified from investment
properties 354
At 30 June 2016 354
===============
Investment properties are re-classified as current assets, and
described as 'held for sale' when at the balance sheet date the
group has obtained and implemented all relevant permissions required
to sell individual units, and contracts for sale have been notarised.
16. Loans and receivables
As at As at As at
30 June 30 June 31 December
2016 2015 2015
(unaudited) (unaudited) (audited)
EUR'000 EUR'000 EUR'000
Loans issued - initial recognition
at fair value 1,338 1,338 1,338
Accrued interest 71 17 44
---------------- --------------- -------------
1,409 1,355 1,382
================ =============== =============
The Group entered into loan agreements with Mike Hilton and Paul
Ruddle in connection with the acquisition of PSPF. The loans bear
interest at 4% per annum, and have a maturity of less than five
years.
17. Borrowings
As at As at As at
30 June 30 June 31 December
2016 2015 2015
(unaudited) (unaudited) (audited)
EUR'000 EUR'000 EUR'000
Current liabilities
Bank loans - Hypothekenbank Frankfurt - 4,327 -
AG
Bank loans - EuroHypo AG - - 2,978
Bank loans - Deutsche Hypothekenbank
AG 8,418 - 8,545
------------ ------------------- ------------
8,418 4,327 11,523
Non-current liabilities
Bank loans - Deutsche Genossenschafts-Hypothekenbank
AG 132,275 104,662 119,262
Bank loans - Deutsche Hypothekenbank - 9,721 -
AG
Bank loans - Kreissparkasse Boblingen
District Savings Bank 2,943 3,088 3,016
------------ ------------------- ------------
135,218 117,471 122,278
143,636 121,798 133,801
============ =================== ============
During the period, the group re-financed its bank borrowings and
drew down EUR16,650,000 (six months ended 30 June 2015: EUR65,833,000
and year ended 31 December 2015 EUR72,266,000). The terms of the
loan are interest at a rate of three-month EURIBOR plus a margin
and the final maturity date is on 31 January 2022. Interest rate
risk is hedged by the use of interest rate swaps.
18. Derivative financial instruments
As at As at As at
30 June 30 June 31 December
2016 2015 2015
(unaudited) (unaudited) (audited)
EUR'000 EUR'000 EUR'000
Interest rate swaps - carried
at fair value through profit
or loss
Balance at start of period 1,869 1,496 1,496
From acquisition - 1,181 1,181
Loss/(gain) in movement in fair
value through profit or loss 2,865 (834) (808)
------------ ------------ ------------
Balance at end of period 4,734 1,843 1,869
============ ============ ============
19. Other financial liabilities
As at As at As at
30 June 30 June 31 December
2016 2015 2015
(unaudited) (unaudited) (audited)
EUR'000 EUR'000 EUR'000
Balance at start of period - - -
Recognition of redemption liability 2,869 - -
Finance cost on redemption liability 244 - -
------------ ------------ ------------
Balance at end of period 3,113 - -
============ ============ ============
The redemption liability relates to the put option held by the minority
shareholders of PSPF for the purchase of the minority interest in
PSPF. The option period starts on 6 June 2020. The valuation of
the purchase price will be based on the last published financial
results as at the date the option is put to the parent.
The recognition of the redemption liability has been accounted for
as a reduction in the Non-Controlling Interest with the remainder
of the recognition against the Groups retained earnings. Also see
the Condensed Consolidated Statement of Changes in Equity for the
recognition accounting
20. Share based payment reserves
Synthetic Performance Share based
equity fee fee payment
total
EUR'000 EUR'000 EUR'000
Balance at 1 January 2015 559 7,607 8,166
Fee charge for the period - 783 783
Equity settled during the period - (8,390) (8,390)
Cash settled during the period (559) - (559)
------------ ------------ ------------
Balance at 30 June 2015 (unaudited) - - -
Fee charge for the period - 1,264 1,264
------------ ------------ ------------
Balance at 31 December 2015 (audited) - 1,264 1,264
Fee charge for the period - 2,837 2,837
------------ ------------ ------------
Balance at 30 June 2016 (unaudited) - 4,101 4,101
============ ============ ============
21. Stated capital
As at As at As at
30 June 30 June 31 December
2016 2015 2015
(unaudited) (unaudited) (audited)
EUR'000 EUR'000 EUR'000
Issued and fully paid:
40,522,364 participating
shares of no par value,
issued at a consideration
of GBP1 each 60,027 60,027 60,027
5,896,369 participating
shares of no par value,
issued at a consideration
of GBP1.11 each 7,681 7,681 7,681
19,237,484 participating
shares of no par value,
issued at a consideration
of GBP1.46 each 39,052 39,052 39,052
4,216,080 participating
shares of no par value,
issued at a consideration
of GBP1.44 each 8,390 8,390 8,390
115,150 115,150 115,150
============ ============
22,619,047 participating
shares of no par value,
issued at a consideration
of GBP1.68 each on 4 March
2016 49,080
164,230
============
22. Earnings per share
Year ended Year ended Year ended
30 June 30 June 31 December
2016 2015 2015
(unaudited) (unaudited) (audited)
Earnings for the purposes
of basic earnings per share
being net profit attributable
to owners of the parent
(EUR'000) 12,144 7,899 9,721
Weighted average number
of ordinary shares for the
purposes of basic earnings
per share (Number) 84,661,574 59,635,559 69,872,297
Effect of dilutive potential
ordinary shares (Number) 2,075,930 - 638,818
Weighted average number
of ordinary shares for the
purposes of diluted earnings
per share (Number) 86,737,504 59,635,559 70,511,115
Earnings per share (EUR) 0.14 0.13 0.14
Diluted earnings per share
(EUR) 0.14 0.13 0.14
23. Net asset value per share and
EPRA net asset value
30 June 30 June 31 December
2016 2015 2015
(unaudited) (unaudited) (audited)
Net assets (EUR'000) 209,185 146,689 148,539
Number of participating ordinary
shares 92,491,344 69,872,197 69,872,298
Net asset value per share (EUR) 2.26 2.10 2.13
EPRA net asset value 30 June 30 June 31 December
2016 2015 2015
(unaudited) (unaudited) (audited)
Net assets (EUR'000) 209,185 146,689 148,539
Add back deferred tax assets and
liabilities, derivative financial
instruments, goodwill, redemption
liability and share based payment
reserves 14,384 6,264 11,095
EPRA net asset value (EUR'000) 223,569 152,953 159,634
EPRA net asset value per share
(EUR) 2.42 2.19 2.28
24. Financial instruments
Fair value of financial instruments
With the exception of the variable rate borrowings, the fair values
of the financial assets and liabilities are not materially different
to their carrying values due to the short term nature of the current
assets and liabilities or due to the commercial variable rates applied
to the long term liabilities.
The interest rate swap was valued externally by the respective counterparty
banks by comparison with the market price for the relevant date.
The interest rate swaps are expected to mature between February
2019 and February 2022.
The Group uses the following hierarchy for determining and disclosing
the fair value of financial instruments by valuation technique:
Level 1: quoted (unadjusted) prices in active markets for identical
assets or liabilities;
Level 2: other techniques for which all inputs which have a significant
effect on the recorded fair value are observable, either directly
or indirectly; and
Level 3: techniques which use inputs which have a significant effect
on the recorded fair value that are not based on observable market
data.
During each of the reporting periods, there were no transfers between
valuation levels.
25. Related party transactions
Related party transactions not disclosed elsewhere are as follows:
R Prosser is a director of Estera Fund Administrators (Jersey) Limited
which provides administration services to the Company.
A Weaver is a partner of the Jersey law firm, Appleby, which provides
legal services to the Company and a member of Appleby group.
During the six month period ended 30 June 2016, an amount of EUR378,664
(June 2015: EUR432,160 and December 2015: EUR718,721) was payable
to Estera Fund Administrators (Jersey) Limited for accounting, administration
and secretarial services. At June 2016, EUR330,229 (June 2015: EUR370,680
and December 2015: EUR125,671) was outstanding.
During the six month period ended 30 June 2016, an amount of EUR39,523
(June 2015: EUR348,770 and December 2015: EUR375,595) was payable
to Appleby, law firm for legal and professional services. At June
2016 EUR30,354 (June 2015: EURNil and December 2015: EUR11,352)
was outstanding.
M Northover is a Director and shareholder of PMM Partners (UK) Limited,
the Company's appointed Property Advisor. During the six month period
ended 30 June 2016, an amount of EUR1,543,000 (June 2015: EUR1,072,000
and December 2015: EUR2,574,000) was payable to PMM Partners (UK)
Limited. At June 2016 EURNil (June 2015: EURNil and December 2015:
EURNil) was outstanding.
The Property Advisor is also entitled to an asset and estate management
performance fee. The charge for the period in respect of the performance
fee was EUR2,837,000 (June 2015: EURNil and December 2015 EUR1,264,000).
In March 2015, the group also entered into an option agreement to
acquire the remaining 5.2% interest in Phoenix Spree Property Fund
GmbH & Co.KG from the remaining partners being M Hilton and P Ruddle,
both Directors of PMM Partners (UK) Limited. The options are excisable
on the fifth anniversary of the majority interest acquisition for
a period of three months thereafter at the fair value of the remaining
interest.
The Group entered into a loan agreement with M Hilton and P Ruddle
in connection with the acquisition of PSPF. At the period end an
amount of EUR704,500 (June 2015: EUR677,500 and December 2015: EUR691,000)
each was owed to the Group. The loans bear interest of 4% per annum.
26. Subsequent events
On 1 July 2016, the Group acquired 94.9% of Invador Grundbesitz
GmbH, a company incorporated in Germany, for a consideration of
EUR8,604,000. The company owns the residential properties at Gottlieb-Dunkel-Straße
53-58, Bergholzstraße 15 and Tempelhofer Weg 2a-2g.
Provisional fair value is based on the latest available Provisional
results and estimates. The fair values of the business
combination will be set out in the annual report and accounts
for the year ending 31 December 2016.
fair value
EUR'000
Investment properties 15,100
Trade and other receivables 178
Trade and other payables (7,003)
Deferred tax (1,300)
--------------
Net assets 6,975
Non-controlling interest (356)
Goodwill 1,985
Fair value of consideration 8,604
==============
Cash consideration (8,604)
Cash acquired 47
Cash outflow arising on acquisition (8,557)
==============
On 1 July 2016, the Group acquired 94.9% of Laxpan Mueller GmbH,
a company incorporated in Germany for a consideration of EUR8,857,000.
The company owns the residential properties at Müllerstraße
122a-c and Lüderitzstraße 48,48a-h,50,52.
Provisional fair value is based on the latest available Provisional
results and estimates. The fair values of the business
combination will be set out in the annual report and accounts
for the year ending 31 December 2016.
fair value
EUR'000
Investment properties 14,000
Trade and other receivables 411
Trade and other payables (5,555)
Deferred tax (900)
--------------
Net assets 7,956
Non-controlling interest (406)
Goodwill 1,307
Fair value of consideration 8,857
==============
Cash consideration (8,857)
Cash acquired 96
Cash outflow arising on acquisition (8,761)
==============
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR DFLFLQKFZBBQ
(END) Dow Jones Newswires
September 22, 2016 02:01 ET (06:01 GMT)
1 Year Phoenix Spree Deutschland Chart |
1 Month Phoenix Spree Deutschland Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
