Phoenix Spree D Company Research (PSDL)

The completion of amendments to its financing arrangements allows Phoenix Spree Deutschland (PSD) to increase condominium sales materially, exploiting the wide valuation gap between investment valuations and condominium sales values. This is core to the orderly asset realisation strategy, which the board has identified as the best way to unlock the value embedded in PSD’s portfolio and maximise shareholder returns. Shareholders will be able to consider the merits of this approach in a continuation vote to be held on 12 March. Our updated analysis indicates that a managed portfolio realisation can be achieved in line with the current EPRA NTA, to which the share price is at a c 45% discount.