(Alliance News) - Germany-focused real estate investment firm Phoenix Spree Deutschland Ltd on Thursday held its interim dividend despite a drop in profit and rental income.
For the six months to the end of June, pretax profit fell by 38% to EUR12.0 million from EUR19.4 million the year before, due to a higher performance fee due to an advisor and a doubled net finance change of EUR10.6 million.
Gross rental income dropped by 9.5% to EUR10.8 million from EUR11.9 million the prior year.
Phoenix Spree's EPRA net asset value per share as at June 30 rose by 12% to EUR4.73 from EUR4.23 the same date the year before, as the company's investment portfolio was valued at EUR665.2 million, up 14% from EUR583.7 million the prior year.
Phoenix Spree declared an interim dividend of 2.35 euro cents per share, in line with the year before.
Looking ahead, Phoenix Spree said despite the upcoming changes to rental regulations in Germany, it does not expect a material impact on rental income in 2020 if implemented.
However, the company admitted further growth in rental income would become difficult to achieve.
"I am pleased with the continued strong performance in the first half of this year. However, the new rental laws proposed by the Berlin Senate have created significant market uncertainty which has been reflected in Phoenix Spree's share price. Although there are serious concerns regarding their legality and constitutionality, we have taken steps to mitigate any short-term impact on the portfolio while ensuring we maintain our strategic optionality in the event the proposals are found to be unconstitutional," said Chair Robert Hingley.
Shares in Phoenix Spree Deutschland were up 0.5% at 296.50 pence on Thursday in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Phoenix Spree D (PSDL)