Phoenix Spree continues to rely on rent increases in Berlin
Pre-tax earnings of Phoenix Spree Deutschland declined in 2018 from €138.5mn to €56.4mn due to lower revaluation gains. The portfolio value of the residential property investor, who is listed at the London exchange and specializes mainly in Berlin, increased by 6.0 % to €645.7mn. The plus is moderate not least because properties in Northern Germany were sold to Buwog for €73.0mn. The Berlin apartments, on the other hand, appreciated by 21.4 %. Phoenix Spree points out to its investors that there is still a sizable gap between in-place and market rents. New leases signed during the period in Berlin were agreed, on average, at a 40.4 % premium to passing rents. Like-for-like, rent per square meter for existing Berlin apartments rose by 6.9 %. At the end of the year, Phoenix Spree owned 2,374 units in the capital city, where a referendum is currently pushing for the expropriation of all private housing companies with more than 3,000 apartments.
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