Phoenix Spree Deutschland Share Discussion Threads

[cerrito] 22/6/2022 08:05

Their buy back yesterday at 321 was a good piece of business...too bad just for 15k shares. If the euro continues to appreciate against sterling this will be good for a sterling based investor like me

[davebowler] 13/5/2022 16:00

Renting in Berlin: how living in the German capital compares to being a tenant in London hTYps://a.msn.com/r/2/AAX6l6z?m=en-gb&a=0

[spectoacc] 12/5/2022 15:20

But for being massively overweight property of varying sorts, I'd go back in here - there's a lot of downside protection whatever the economy/Putin throws at it.

[davebowler] 12/5/2022 08:58

Edison research- hTTps://www.edisongroup.com/publication/positive-return-to-core-strategy/30884/

[cerrito] 24/4/2022 15:29

Wondering in rather a desultory way if I should buy more at the reduced price of 360 but decided to remain with what I have. While to me not realistic to have in 2022 the same number of shares bought back as in 2021 ie 4.5m.shares, at the moment the share buy back programme is quite leisurely. There are as the company notes headwinds but I am not expecting to see much change in the NAV between December 2021 and June 2022. For me the big issue is that my online broker Barclays does not allow one to buy more and so I have to go through the hassle and expense of using my full service broker. I do not see myself as selling.

[davebowler] 11/4/2022 18:45

Not residential but encouraging nevertheless...hTTps://www.dailymail.co.uk/money/investing/article-10299267/MIDAS-SHARE-TIPS-UPDATE-Invest-German-growth.html?ns_mchannel=rss&ns_campaign=1490&ito=1490

[jeff h] 02/4/2022 13:07

I think he added it after I posted rambutan, but yes dave often posts research rarely seen to general investors and I am very appreciative also.

[rambutan2] 01/4/2022 21:40

Jeff, the fantastic davebowler, who is always so generous with his info, posted it ie PSDLFY22! I can confirm that it works.

[jeff h] 01/4/2022 18:40

dave - per your above link:- "Enter the passcode to watch "Phoenix Spree Deutschland Investor Webinar"

[davebowler] 01/4/2022 16:34

Webinar of results FY21 hTTps://numiscorp.zoom.us/rec/share/5qTgNfa0BGEAEfzf0X_ftPgkA6DJ_Z_CaglT9hDr1_9xLjtb0eZ33ncJl0v9hO4.W3b5XjpLIyCzUXE9 PSDLFY22!

[davebowler] 30/3/2022 09:10

Liberum; Phoenix Spree Deutschland Confident outlook Mkt Cap £361m | Share price 390.0p | Prem/(disc) -18.5% | Div yield 1.6% Event Phoenix Spree Deutschland has generated an 8.4% NAV total return in 2021. EPRA NAV was €5.65 per share at 31 December 2021 (upper end of the previously indicated range of €5.60-€5.66 per share). NAV performance has been driven by a 6.3% like-for-like revaluation gain in the period. The valuation uplift reflects increased market rents and progress in condominium splitting. The portfolio value per sqm was €4,225 at December 2021 (Jun-21: €4,075; Dec-20: €3,977). The gross fully occupied yield on the portfolio is 2.8%. Like-for-like rental growth of 3.9% for the 12 months to December 2021, maintains the company's consistent track record of uplifts. New lettings in Berlin were completed at an average 33.8% premium to passing rents. The average rent achieved on new lettings was €12.2 per sqm, representing a 4.4% increase on the prior year. Rent collection has remained robust at 97% and the EPRA vacancy rate is low at 3.1%. All of PSDL's leases had been structured to allow for the back payment of rents due for the period during which the Mietendeckel (rent freeze) was in place. PSDL has collected 95% of the back-dated rent which could be claimed from tenants. Phoenix Spree Deutschland has notarised €15.2m of condominium sales in 2021. The average price achieved was €4,988 per sqm, representing an 18.3% premium to the December 2020 book value. 75% of the Berlin portfolio has been legally split into condominiums and applications are in progress for a further 10%. Legislation is likely to impact the ability of landlords to split condominiums in future. The legislation is not retrospective and should be positive for future sale prices. Net LTV has increased marginally to 34.7% (33.1% at December 2020). Liberum view Several actions by management have demonstrated confidence in the portfolio and the outlook for improved returns. This was clearly highlighted by consistent buyback activity (€18m in 2021). The company recently completed its first acquisition since the removal of the rent freeze legislation and has also restored the level of capex investment in the portfolio to pre-rent freeze levels in order to capture the reversionary upside. Despite the rent freeze legislation, the company was still able to achieve an 8-9% NAV returns during this period. The supply-demand imbalance remains acute, as evidenced by an 11.6% year-on-year increase in condominium asking prices in H2 2021, according to JLL. We believe the shares remain undervalued at an 18.5% discount to NAV, given long-term returns are underpinned by the reversionary potential across the portfolio.

[jonwig] 25/3/2022 09:00

Should we expect this to perform poorly so long as the situation with Russia is uncertain? Will Berliners be able to pay for their rent and their heating bills?

[cerrito] 21/2/2022 10:03

https://www.telegraph.co.uk/investing/shares/questor-rent-controls-berlin-no-cheap-fund-stands-benefit/ Featured in Questor in the DT a couple of days back.

[spectoacc] 14/2/2022 09:52

Finally sold the last today - only because of liquidity fears over Ukraine. Good luck holders and HODL'ers.

[cerrito] 12/2/2022 19:58

Thanks for that feedback . I have read the Edison report and I thought it was an excellent review.

[jonwig] 11/2/2022 09:50

carlopig - "The question was totally ignored. " They've no choice, if they give you an answer they have to give it to everyone. Mind, most companies find a form of words which is at least civil.

[carlopig] 11/2/2022 09:15

They also emphasized the gap between selling condos above NAV and using proceeds to do share buybacks (alongside new debt facility) at discount to NAV. Makes sense. I specifically asked whether they thought PSD was a target for acquirers like KKR and other PE that have been looking at buying portfolios in the space. The question was totally ignored. Make your own judgement.

[davebowler] 11/2/2022 09:02

Hi Cerrito It was an encouraging update but no revelations particularly. They made this point -as does the Edison research- .... 75% of the Berlin portfolio has been split into condominiums, less than 5% is valued as such..... This is just out. hTTps://www.edisongroup.com/publication/delivering-on-reversion-strategy/30513

[cerrito] 09/2/2022 19:09

Thanks davebowler for alerting me to the Numis update. Too bad timing does not work for me and any feedback appreciated

[davebowler] 08/2/2022 09:42

Numis 30 min update this Thursday at 3.15 hTTps://numiscorp.zoom.us/webinar/register/WN_NQywPcHsQB66LnD0Rsu3KA

[davebowler] 08/2/2022 09:40

Liberum; Event Phoenix Spree Deutschland's portfolio value rose by 3.7% on a like-for-like basis in H2 2021 to €801.5m. The valuation uplift reflects increased market rents and progress in condominium splitting. Based on the valuation uplift, the EPRA NAV per share is expected to be within a range of €5.60-€5.66 at 31 December 2021, representing a NAV total return of 7.5-8.6% for 2021. The portfolio value per sqm was €4,225 at December 2021 (Jun-21: €4,075; Dec-20: €3,977). Eight of the properties have been valued as condominiums, with a total value of €39m. The gross fully occupied yield on the portfolio is 2.8%. Phoenix Spree Deutschland has notarised 23 condominium sales in H2 2021 for a total of €10.9m. The pace of condominium sales has picked up considerably from the first half of the year (€4.3m in H1). The average price achieved was €5,031 per sqm, representing a 19.1% premium to the December 2020 book value. 75% of the Berlin portfolio has been legally split into condominiums and applications are in progress for a further 10%. Legislation is likely to impact the ability of landlords to split condominiums in future. The legislation is not retrospective and should be positive for future sale prices. The removal of the Mietendeckel has led to the resumption of uplifts on new lettings (28% uplift to passing rents on new leases in December 2021). The company achieved a rent collection rate of 97% in 2021. All of PSDL's leases had been structured to allow for the back payment of rents due for the period during which the Mietendeckel (rent freeze) was in place. PSDL has collected 95% of the €2.1m of back-dated rent which could be claimed from tenants. Liberum view The resumption of the asset management strategy to capture the significant reversionary potential across the portfolio will underpin the long-term return profile. Despite the rent freeze legislation, the company was still able to achieve an 8-9% NAV returns during this period. The risk of new legislation remains the key concern, but the company's flexible strategy and efficient capital allocation should enable it to deliver value for shareholders. The material level of buybacks demonstrates a clear belief in the value of the underlying portfolio. Transaction activity continues to highlight institutional investor demand for Berlin assets. Heimstaden acquired a €5.3bn portfolio of German residential assets (80% in Berlin) from Akelius in September 2021 at a 22% premium to book value. The supply-demand imbalance remains acute, as evidenced by a 9.7% increase in condominium asking prices in the nine months to September 2021. We believe the shares are materially undervalued at a 20.5% discount to NAV.

[jonwig] 08/2/2022 08:19

Cerrito - I'd turn the question on its head, and ask what proportion of your portfolio do you want invested in the UK?

[cerrito] 08/2/2022 07:40

Solid results and well done for what they have done with condominiums. For me this is largely a FX play and how many of one's assets do you want to have in Euros. The difference in performance of the EPRA NAV in Euros and sterling says it all. I do not see myself buying or selling and like everyone else on this board will go back to sleep.

[jonwig] 16/10/2021 07:10

Edison note: https://www.edisongroup.com/publication/good-h1-growth-and-return-to-core-strategy/30033/

[jonwig] 14/10/2021 07:14

It seems that Goldman Sachs has appeared with a 5.3% stake (two successive announcements today).