Phoenix SpreeDeutsch - Interim Results and Business Update

26 September 2025

Phoenix Spree Deutschland Limited
(the "Company," or "PSD")

Interim Results and Business Update

Phoenix Spree Deutschland Limited (LSE: PSDL.LN), the UK listed investment company specialising in Berlin residential real estate, announces its results for the six months ended 30 June 2025. The Board also provides a further update on the Company's strategy to significantly accelerate condominium sales, reduce debt and return capital to shareholders.

HIGHLIGHTS

Table: Financial and operational summary

€ million (unless otherwise stated)	6 Months to 30 June 2025	6 Months to 30 June 2024	Year to 31 December 2024	Year to 31 December 2023
Income Statement
Gross rental income	11.0	14.2	28.1	27.5
(Loss) before tax	(7.0)	(24.1)	(39.5)	(118.8)
Dividend per share in respect of the period	-	-	-	-
Balance Sheet
Portfolio valuation (€m)	548.7	646.4	552.8	675.6
EPRA NTA per share (€)1	3.49	3.68	3.55	3.96
EPRA NTA per share (£)1,2	2.98	3.12	2.93	3.43
EPRA NTA per share total return (€%)	(1.7)	(7.1)	(10.4)	(22.4)
Net LTV (%)3	41.0	46.4	40.3	46.3
Operational
Portfolio valuation per sqm (€)	3,654	3,488	3,633	3,598
Condominium sales notarised (€m)	14.6	5.3	9.4	7.2
Condominium sales notarised per sqm (€)	4,043	4,292	4,295	3,976
Vacant condominiums notarised per sqm (€)	5,040	4,841	5,027	4,702
Occupied Condominiums notarised per sqm (€)	3,677	3,611	3,430	3,409
Annual like-for-like rent per sqm growth (%)4	1.4	3.2	1.6	4.1
EPRA vacancy (%)	2.1	1.4	1.5	2.0

 

^{1 - EPRA metrics defined and calculated in note 21.}

^{2 - Calculated at FX rate GBP/EUR 1.16982 as at 30 June 2025 (31 December 2024: GBP/EUR 1:1.206)}

^{3 - Net LTV uses nominal loan balances (note 16) rather than the loan balances on the Consolidated Statement of Financial Position which include capitalised finance arrangement fees.}

^{4 - Like-for-like excludes the impact of disposals in the period.}

 

Strategic repositioning progressing well:

·      Portfolio realisation plan on track, prioritising the sale of individual condominiums at a significant per sqm valuation premium to equivalent PRS properties.

·      Strong progress in transitioning Private Rented Sector ("PRS") properties into the condominium sales pool, with 942 units (40 properties) made available for sale. Additional properties are expected to be added on completion of debt refinancing.

·      Year to date condominium sales of €22.4m, sales rates running ahead of target.

·      Full year condominium sales are expected to exceed €30m in 2025 and €55m in 2026.

 

Refinancing and shareholder distributions:

·      Indicative heads of terms agreed for the refinancing of all borrowings ahead of September 2026 maturity.

·      The new facility is expected to enable further properties to be added to the condominium sales pool and permit distributions to shareholders.

·      Net debt as at 30 June 2025 was at €223.5m (30 June 2024: €297.6m) with net loan-to-value (LTV) reduced to 41.0% from 46.4% as at 30 June 2024.

 

Condominium sales accelerating:

·      51 units notarised during the half-year, with a combined sales value of €14.6m, an increase of 177% compared with the same period in 2024.

·      Since the half-year end, a further 30 units have been notarised with a sales value of €7.8m, bringing total year-to-date notarisations (as at 19 September 2025) to €22.4m.

·      A further 25 units with a combined value of €7.8m are subject to reservation pending notarisation.

·      Average sale price for notarised units (vacant and occupied) during H1 was €4,043 per sqm, a 0.7% premium to latest balance sheet carry values.

·      Vacant units notarised achieved an average sale price of €5,040 per sqm, a 23.3% premium to their latest balance sheet carry values, while occupied units averaged €3,677 per sqm, an 8.1% discount to their latest balance sheet carry value.

·      To strengthen sales capacity as more condominiums come to market, the broker panel has been expanded from three to five following the appointment two additional firms.

Portfolio valuation increase:

·      Second consecutive like-for-like valuation increase: The overall Portfolio value rose by 0.6% on a like-for-like per sqm basis during the first half of 2025, reflecting stabilisation in the Berlin residential market.

·      PRS Portfolio: Achieved its first valuation increase since 2022, with a like-for-like per sqm increase of 0.8% during the first half of the financial year.

·      Condominium Sales Portfolio: Recorded a like-for-like per sqm increase of 0.7% during the first half of the financial year.

 

Outlook:

·      Continued resilience in Berlin condominium prices: Driven by cheaper mortgage finance, stronger buyer sentiment, demographic-driven demand and reduced new construction.

·      Acceleration of condominium sales momentum: Sales from further properties in the Portfolio being made available for sale are expected to drive higher transaction volumes from Q3 2025.

·      Condominium sales running ahead of plan: The Company expects to achieve full year sales of at least €30m in 2025 and in excess of €55m in 2026.

·      Refinancing: Indicative terms agreed to provide flexibility for expansion of the condominium sales pool and enabling future shareholder distributions.

·      Focus on shareholder value: Subject to successful refinancing, the Company expects to announce its first shareholder distribution with its Annual Results in April 2026.

 

Robert Hingley, Chair of Phoenix Spree Deutschland, commented:

"The progress achieved during the first half of 2025 has positioned Phoenix Spree Deutschland strongly for the remainder of the year and beyond. We are seeing good demand in the Berlin condominium market, with sales prices remaining robust and volumes meeting expectations.

Our strategic focus on accelerating condominium sales, reducing leverage, and optimising our Portfolio continues to deliver tangible results. Our debt refinancing is progressing well, with the aim to provide flexibility to return capital to shareholders. The Board and Property Advisor are fully committed to executing our strategy with a clear focus on monetising the full value of the Portfolio."

Half-year report and accounts

The half-year report and accounts will shortly be available to download from the Company's webpage www.phoenixspree.com and the National Storage Mechanism in the required format, available for inspection at https://data.fca.org.uk/#/nsm/nationalstoragemechanism.

For further information please contact:

Phoenix Spree Deutschland Limited Stuart Young	+44 (0)20 3937 8760
Deutsche Bank AG (Corporate Broker) Hugh Jonathan	+44 (0) 20 7260 1263
Teneo (Financial PR) Elizabeth Snow	+44 (0)20 7353 4200

 

 

CHAIRMAN'S STATEMENT

Introduction

During the first half of the current financial year, we have concentrated on implementing our managed Portfolio realisation strategy, focused on accelerating the sale of individual apartment units ("condominiums"). The divergence in price per square metre between condominiums and PRS properties has persisted and continues to support this strategy. While broader PRS market values now show signs of stabilisation after a prolonged downturn, condominium sales prices remain substantially higher.

 

Financial and operational performance

As of 30 June 2025, the Company's Portfolio value was €548.7m, representing a like-for-like valuation increase of 0.6% over the six-month period. This marks the second consecutive period of Portfolio valuation growth, highlighting further stabilisation in the Berlin residential market.

 

A significantly reduced fair-value loss on investment properties (-€0.7m versus -€25.1m in H1 2024) brought the operating result close to break-even at -€0.2m (H1 2024: -€20.8m). After finance costs of €6.8m, the pre-tax loss narrowed to -€7.0m (H1 2024: -€24.1m), reducing the loss per share to -€0.07 from -€0.21 in H1 2024.

 

Condominium sales volumes have continued to accelerate. In the first half of 2025, the Company notarised 51 units for €14.6m, achieving an average sales price of €4,043 per sqm, a 22% premium to the Portfolio's average PRS valuation and 0.7% above the latest balance sheet carry values.

For a more detailed update on our financial and operational performance, as well as insights into the broader market environment, please refer to the report from the Property Advisor.

Responsible business

Our corporate responsibility framework, Better Futures, continues to guide how we engage with all stakeholders. Tenant satisfaction remains a key focus, especially in rental properties earmarked for future condominium sales. We prioritise clear and timely communication with affected tenants, offer them first purchase rights, and strive to minimize any disruption caused by these transitions.

We are actively investing in our communities through partnerships with homelessness charities in Berlin and London, including The Intercultural Initiative and Laughing Hearts, as well as SPEAR, SHP, and Home-Start via our property advisor, QSix.

In line with our sustainability goals, we are advancing the testing of heating optimization systems across selected properties, aiming for completion by end-2025. If successful, we plan to expand this initiative across a significant portion of our PRS Portfolio, targeting substantial energy savings and further reducing our environmental impact.

Property Advisor

Our Property Advisor, QSix, remains committed to driving our strategic objectives forward. QSix's interests are aligned with those of our shareholders, with all net disposal fees received reinvested in the Company's shares.

 

Outlook and priorities

The Berlin condominium market continues to demonstrate resilience, with condominium sales prices expected to remain well above equivalent PRS values. The progress achieved in the first half of 2025 positions the Company well for the remainder of the year and beyond and the Board and Property Advisor remain focused on executing the Company's strategy.

Our debt refinancing is on track with indicative terms received. The proposed facility is expected to increase the previous cap on condominium units available for sale and permit capital distributions to shareholders. More details on the refinancing will be made available in due course. At the AGM, shareholders voted to amend the Articles of the Company so that existing ordinary shares can be converted into redeemable shares and a mandatory redemption facility introduced.

On behalf of the Board, I would like to thank our shareholders, tenants, and stakeholders for their continued support.

 

STRATEGIC UPDATE

Market context

Berlin's residential sector remains divided. Condominium prices and transaction volumes have remained broadly stable, whereas private rented sector (PRS) valuations, although showing signs of stabilisation, remain significantly below their 2022 peak levels and well below current condominium prices. These contrasting pricing dynamics underscore the Company's strategic focus on condominium disposals as the best route to reduce debt and unlock shareholder value.

 

Progress on condominium preparation and marketing

The 40 properties designated for condominium sales have been organised into tranches based on their market launch dates. By 30 June 2025, a total of 648 units had been made available for purchase. For Tranche 3, tenant-purchase negotiations commenced in June, and apartments not reserved by tenants were listed publicly in early July 2025. As of 1 September 2025, one property within the Portfolio has been sold in its entirety, leaving 39 properties remaining in the Condominium Sales Portfolio.

 

Preparation of Tranche 4 is complete, and communication with tenants has begun. The units will be listed on the open market in early October, bringing the cumulative number of units made available for sale to 942 - up from 366 at the start of the financial year and 108 as of 1 December 2024.

 

To reinforce the Tranche 4 sales programme, the Company has engaged two additional brokers. They will operate alongside the existing brokers, Lübke & Kelber, Engel & Völkers, and the Company's affiliated broker, IWA.

 

The Company invested significantly in capital expenditure during the first half of the year to prepare condominium properties for sale, with total spend expected to reach €15m for the full year. This expense is a one-off and will not recur at the same level next year. Capital expenditure in 2026 is expected to be materially lower, depending on the number of additional properties added to the Condominium Sales Pool.

 

Table: Condominium tranches

Property group	Sales Status / added to market	Number of properties 1 September 2025	Units 1 September 2025	Sqm 1 September 2025	Units 31 December 2024	Sqm 31 December 2024	Potential project sales value as at 1 September 20251
Tranche 1	2024	5	86	7,721	108	9,291	€ 33.6m
Tranche 2	December 2024	10	215	16,730	258	19,711	€ 65.8m
Tranche 3	June 2025	12	269	18,707	282	19,549	€ 77.8m
Tranche 4	September 2025	12	294	19,763	294	19,760	€ 91.0m
Total		39	864	62,921	942	68,311	€ 268.3m

^{1.       Potential project sales value as at 1 September 2025 reflects the estimated sales value of properties currently in the Condominium Sales Pool over the entire duration of the sales process.  Investment properties held for sale (note 13 of the financial statements) reflects the value of properties that are expected to be sold within 12 months of the reporting date based on Management knowledge of current and historic market conditions.}

The total potential sales value of the 39 properties currently approved for condominium sales is estimated at €268.3m. This valuation reflects the June 2025 balance sheet carry value, adjusted to account for completed sales between 30 June and 31 August 2025.

Further condominium potential within the Portfolio

Twenty legally divided properties (740 units, or 36% of the Portfolio) are currently outside the active sales pool. The completion of the new debt facility is expected to provide flexibility to bring a portion of these assets into the condominium sales programme during 2026.

 

Table: Condominium potential within the Portfolio

Property status as at 01 September 2025	Number of properties	Number of units	Area (sqm)	Units as % total
Divided and in condominium sales pool	39	864	62,921	41.5%
Divided but not yet in condominium sales pool	20	740	47,424	35.5%
Total divided properties	59	1,604	110,345	77.0%
Undivided properties (PRS)	14	480	36,422	23.0%
Total properties	73	2,084	146,767	100.0%

REPORT OF THE PROPERTY ADVISOR: FINANCIAL AND OPERATIONAL HIGHLIGHTS

Financial highlights for the half year to 30 June 2025

€ million (unless otherwise stated)	6 Months to	6 Months to	Year to	Year to
	30 June 25	30 June 24	31-Dec-24	31-Dec-23
Gross rental income	11.0	14.2	28.1	27.5
Investment property fair value loss	(0.7)	(25.1)	(5.4)	(97.3)
Loss before tax	(7.0)	(24.1)	(39.5)	(118.8)
Reported EPS (€)	(0.07)	(0.21)	(0.42)	(1.07)
Investment property value	548.7	646.4	552.8	675.6
Net debt (Nominal balances)1	224.7	299.8	223.0	313.0
Net LTV (%)	41.0	46.4	40.3	46.3
IFRS NAV per share (€)	2.93	3.22	3.01	3.43
IFRS NAV per share (£)2	2.50	2.73	2.49	2.97
EPRA NTA per share (€)3	3.49	3.68	3.55	3.96
EPRA NTA per share (£)2	2.98	3.12	2.93	3.43
Dividend per share in respect of the period (€ cents)	-	-	-	-
Dividend per share in respect of the period (£ pence)	-	-	-	-
€ EPRA NTA per share total return for the period (%)	(1.7)	(7.1)	(10.4)	(22.4)
£ EPRA NTA per share total return for the period (%)2	1.6	(8.9)	(14.6)	(24.0)

^{1 - Nominal loan balances used in calculation as per note 16 rather than balances on the Consolidated Statement of Financial Position which consider Capitalised Finance Arrangement Fees in the balance as per IAS 23.}

^{2 - Calculated at FX rate GBP/EUR 1.16982 as 30 June 2025 (31 December 2024: GBP/EUR 1:1.206),}

^{3 - Further EPRA Net Asset Measures can be found in note 21}

Financial results overview

 

Profit and loss

During the six months to 30 June 2025, the Company generated gross revenues of €11.0m, down from €14.2m in the comparable period of 2024. This reduction is largely the result of disposals in the latter half of 2024. Reflecting the smaller size of the Portfolio, property expenses fell by 11% to €7.1m (H1 2024: €8.0m), resulting in a gross profit of €3.9m (H1 2024: €6.2m).

 

Administrative costs increased to €2.4m (H1 2024: €1.2m), primarily reflecting higher professional fees linked to the implementation of the condominium sale programme. A modest -€0.7m fair-value loss was recognised on investment properties, a significant improvement on the -€25.1m loss reported in H1 2024. Consequently, the operating result was close to break-even, recording a loss of -€0.2m versus a -€20.8m operating loss in H1 2024.

 

Net finance costs amounted to €6.8m (H1 2024: €3.3m). This figure includes a €1.9m adverse movement on interest-rate swaps, compared with a €1.5m gain in the prior year. After finance items, the loss before tax narrowed to -€7.0m (H1 2024: loss of -€24.1m). The basic and diluted loss per share declined to -€0.07 (-7 cents) compared with -€0.21 (H1 2024: -21 cents).

 

Balance sheet

Euro EPRA NTA per share declined by 1.7% during the first half of 2025, to €3.49 (31 December 2024: €3.68), with the decline largely reflecting additional capital expenditure required in 2025 to prepare condominium properties for sale. Sterling EPRA NTA per share increased by 1.7% during the same period, to £2.98 (31 December 2024: £2.93), primarily due to the strengthening of the Euro against the Sterling.

 

Total return

 

Euro EPRA NTA total return for the first half of 2025 was down 1.7%, compared to a decline of 7.1% in the first half of 2024. Sterling EPRA NTA total return for the same period increased by 1.6%, versus a decline of 8.9% in the first half of 2024.

 

Portfolio valuation

Condominium values remained resilient during the period and, for the first time since the decline in real estate values began in 2022, PRS valuations have risen. As at 30 June 2025, the total Portfolio value was €548.7m, with an average value of €3,654 per sqm and a gross yield of 3.2%. On a like-for-like basis (adjusted for disposals), the Portfolio value increased by 0.6% during H1 2025.

Since the total sqm of the higher-valued Condominium Sales Pool decreased (due to condominium sales) while the lower-valued PRS Properties maintained their size, the overall mix shifted slightly toward the lower-priced segment. The total Portfolio weighted average therefore increased by less than the increase in each segment.

Table: JLL Valuation summary

Total Portfolio	30 June 2025	30 June 2024	31 December 2024	31 December 2023
Number of properties	74	93	74	95
Residential units	2,026	2,472	2,053	2,489
Commercial units	108	138	108	140
Total units	2,134	2,610	2,161	2,629
Total sqm ('000)	150.2	186.0	152.2	187.7
Valuation (€m)	548.7	646.4	552.8	675.6
Value per sqm (€)	3,654	3,480	3,630	3,598

 

Condominium Sales Pool	30 June 2025		30 June 2024		31 December 2024		31 December 2023
Number of properties	40		6		40		7
Residential units	852		75		880		92
Commercial units	62		8		62		8
Total units	914		83		942		100
Total sqm ('000)	66.3		7.6		68.3		8.9
Valuation (€m)	271.9		29.6		278.0		35.1
Value per sqm (€)	4,099		3,910		4,070		3,921
PRS Properties	30 June 2025		30 June 2024		31 December 2024		31 December 2023
Number of properties	34		87		34		88
Residential units	1,174		2,397		1,173		2,397
Commercial units	46		130		46		132
Total units	1,220		2,527		1,219		2,529
Total sqm ('000)	83.8		178.4		83.9		178.8
Valuation (€m)	276.8		616.9		274.8		640.5
Value per sqm (€)	3,302		3,457		3,277		3,582

 

Condominium Sales Portfolio like-for-like increase of 0.7%

As of 30 June 2025, the Condominium Sales Portfolio (40 properties, 914 units) was valued at €271.9m (€4,099 per sqm). The value per sqm of these properties increased by 0.7% in the half-year.

 

PRS Portfolio records first like-for-like valuation increase since 2022

As at 30 June 2025, the PRS Portfolio (34 properties, 1,220 units) was valued at €276.8m, with an average value of €3,302 per sqm. On a like-for-like basis, the value per sqm of these properties increased by 0.8% in the half-year. This marks the first valuation increase since the market downturn began in 2022.

 

Subject to a successful refinancing, it is expected that a proportion of the 20 further properties which are legally split into condominiums will be transferred to the Condominium Sales Pool and sold as condominiums. This will reduce the value of the PRS Portfolio while increasing the value of the Condominium Sales Portfolio by a larger amount.

 

Condominium notarisations and pricing

Condominium demand and prices in Berlin remain strong. During the first six months of 2025, 51 units were notarised, with a combined sales price of €14.6m, an increase of 177% compared with the same period in 2024. The average sale price for notarised units (vacant and occupied) during H1 2025 was €4,043 per sqm, a 0.7% premium to latest balance sheet carry values. Vacant units notarised achieved an average sale price of €5,040 per sqm, a 23.3% premium to their latest balance sheet carry value, while occupied units averaged €3,677 per sqm, an 8.1% discount to their latest balance sheet carry value.

 

Since 30 June, a further 30 units have been notarised with a combined sales price of €7.8m. A further 25 units €7.8m are subject to reservation pending notarisation.

 

With stock from Tranches 3 and 4 added to the market during H2 2025, the Company expects sales momentum to remain strong into the second half of the financial year and through 2026.

Table: Condominium notarisations and reservations (2025 to date)

Notarisation period / status	Units	Sales Value (€m)	Price per sqm (€)	Premium / discount to Portfolio carry value1,2	Premium / discount to asset carry value1,3
Vacant notarisations
Notarised January	0	0	0	0	-
Notarised February	4	1.45	5,293	45.8%	23.2%
Notarised March	2	0.72	5,987	64.9%	32.1%
Notarised April	4	1.06	4,402	21.3%	20.6%
Notarised May	1	0.35	4,031	11.1%	25.1%
Notarised June	5	1.40	5,253	44.7%	20.9%
Notarised July	2	0.59	4,885	33.8%	8.3%
Notarised August	1	0.30	4,076	11.7%	25.0%
Notarised to 19 September	3	0.65	4,109	12.6%	15.0%
Total vacant notarisations	22	6.53	4,861	33.7%	21.0%
Occupied notarisations
Notarised January	4	0.82	2,987	-17.7%	-24.5%
Notarised February	4	1.08	4,055	11.7%	0.5%
Notarised March	9	2.36	3,476	-4.2%	-4.4%
Notarised April	7	1.81	3,840	5.8%	-11.7%
Notarised May	3	1.05	4,323	19.1%	-0.3%
Notarised June	8	2.48	3,626	-0.1%	-8.4%
Notarised July	6	1.84	3,772	3.4%	-1.4%
Notarised August	14	3.29	3,960	6.3%	1.3%
Notarised to 19 September	4	1.16	4,882	33.8%	5.4%
Total occupied notarisations	59	15.89	3,807	4.1%	-4.8%
Total notarisations (vacant and occupied)	81	22.42	4,064	11.5%	1.7%
Total outstanding reservations	25	7.82	4,171	14.3%	9.5%
Total reservations and notarisations	106	30.24	4,091	12.4%	3.7%

1.         Carry value is determined using the most recent JLL valuation per sqm. For notarisations completed before June 30, 2025, the applicable valuation is from December 2024. For notarisations occurring after June 30, 2025, the carrying value will be based on the JLL valuation as of June 30, 2025.

2.         The Portfolio carry value is the average valuation per sqm across all assets within the Company's Portfolio.

3.         The asset carry value refers to the JLL valuation of the specific properties associated with units being notarised during the period.

Ratio of vacant to occupied sales

As at 31 August 2025, the ratio of vacant to occupied sales was low at 25.7%. This reflects the Company's strategy of initially offering units for sale to tenants. For Tranches 1 and 2, tenant demand is expected to moderate in the second half of the financial year. However, the Company expects strong demand from tenants from Tranches 3 and 4. As at 1 September 2025, there were 109 vacant units available for sale, representing 12.6% of the total stock.

 

Over an entire four-to-five-year sales cycle, the Company expects vacant units to account for between 40% and 50% of sales, driven largely by natural tenant turnover of 8-10% per annum. Condominium sales projects completed between 2016 and 2024 recorded an average vacant sale share of 58%.

 

Annual condominium sales

For 2025, we expect sales to be in excess of €30m, while the sales target for 2026 will be a minimum of €55m. This target may be adjusted depending on the timing and availability of additional properties for sale, subject to the terms of the Company's new debt facility.

 

Condominium sales velocity

The Average Annualised Sales Rate¹ (AASR) indicates how quickly inventory is being absorbed. The duration of the sell-down period for any given condominium property is significant, in that it affects both the timing and quantum of proceeds.

 

Historically, condominium sales projects have taken four to five years from the first units being placed on the market to achieve full sales completion, which represents a sales rate of between 20% and 25%. The table below shows the AASR on a monthly basis. As at end August 2025, the AASR stood at 34.9%.

 

Table: condominium sales velocity

Period	Opening units	Notarisations in month	New units made available during period	Closing units	Average annualised sales rate1
January	104	4	258	358	45.3%
February	358	8	-	350	37.2%
March	350	11	-	339	37.1%
April	339	11	-	328	37.7%
May	328	4	-	324	33.1%
June	324	13	-	311	35.7%
July	311	8	282	585	34.9%
August	585	15	-	570	34.3%

1. Average annualised sales rate is calculated by dividing the number of units sold in a given month by the total number of units available for sale at the beginning of that month. This result is then annualised, based on the number of days in the month, and averaged across historical months. To reduce volatility in the calculation, newly listed units are only included one month after marketing begins. This adjustment accounts for the typical delay before sales commence.

Key variables which are likely to influence the annualised condominium sales rate are:

·      Overall buyer confidence: This is subject to interest rates and other key macroeconomic and geopolitical considerations.

·      Condominium pricing: This has remained resilient to date, and there are no current indications suggesting a deterioration versus plan.

·      Ratio of vacant to occupied units: Vacant units command a significant premium to occupied units (in H1 2025, this premium stood at 37%). The percentage of vacant units is expected to increase in 2026, as the number of sales to tenants decline.

·      Tenant churn: Higher tenant turnover creates more vacant units, which command higher sale prices than occupied units.

·      Size of condominium sales pool: The pool shrinks as units are sold, but, subject to the terms of the Company's refinancing, additional properties are expected to be added.

·      Sales agent performance: Broker performance, actively tracked; extra agents will be deployed if required.

·      Location and property condition: Well-located, well-maintained properties fetch the highest prices per sqm and attract strong demand.

Rental income

Annualised contracted net rental income at 30 June 2025 was €17.6m, a decline of 21.4% compared with 30 June 2024. This was due to (1) a fall in the number of units following the portfolio sale of 16 properties announced on 17 December 2024, (2) a decline in the number of units within the Portfolio available for rent following condominium sales, and (3) a lower number of new leases signed during the year.

 

The Company has always managed rent-to-income multiples for new tenants conservatively and, despite current cost of living pressures, rent collection levels have remained stable.

 

Table: Rental income and vacancy rate

	30 June 2025	30 June 2024	31 Dec 2024	31 Dec 2023
Total sqm ('000)	150.2	186.0	152.2	187.8
Annualised Net Rental Income (€m)	17.6	22.4	18.0	22.3
Net Cold Rent per sqm (€)	10.7	10.5	10.7	10.4
Like-for-like rent per sqm growth (%)	1.4	3.2	1.6	4.1
Vacancy (%)	9.9	4.6	8.0	5.0
EPRA Vacancy (%)	2.1	1.4	1.5	2.0

 

 

Rental growth

As of 30 June 2025, net cold rent increased to an average of €10.7 per sqm, up from €10.5 per sqm the previous year. On a like-for-like basis, rental income per sqm grew by 1.4% in H1 2025, compared to 3.2% in H1 2024.

 

This slower growth reflects the Company's strategic emphasis on condominium sales, which prioritises capital expenditure on condominium projects over PRS properties. Other contributing factors include the termination of a lease with a municipality in order to redevelop and subsequently sell the property.

 

EPRA vacancy remains low

Reported vacancy as at 30 June 2025 was 9.9% (30 June 2024: 4.6%), reflecting an increase in units undergoing refurbishment or notarised for sale. On an EPRA basis, adjusting for units undergoing refurbishment, the vacancy rate was 2.1% (30 June 2024: 1.4%).

 

Residential reversionary re-letting premium steady at 35%

Market rents are at record levels, with new lettings across the Portfolio during the year signed at an average premium of 32.9% to passing rents (H1 2024: 28.7%) or €14.6 per sqm (H1 2024: €13.9 per sqm). For residential units only, new lettings were signed at an average 36.0% premium (H1 2024: 33.2%) or €14.6 per sqm (H1 2024: €13.8 per sqm).

 

During H1 2025, 45 new leases were signed (H1 2024: 120 new leases), representing an annualised reletting rate of approximately 6.3% of occupied units. (H1 2024: 9.9%). The year-on-year decline is primarily attributed to more condominium units being made available for sale.

 

Furnished living

The Company is launching a short-term, furnished-living programme to meet growing tenant demand for flexible, ready-to-occupy homes while remaining fully compliant with all relevant housing regulations. As furnished leases include additional services, fittings and turn-key convenience, they are assessed differently from standard long-term contracts; this allows rents to reflect the added value provided, keeps apartments continuously occupied and well maintained, and aligns with both rent-control and vacancy requirements.

 

Implementation is progressing through a series of three-year supply agreements with a leading Berlin furnished living operator. Eleven contracts have already been completed, four more are scheduled to follow once kitchen installations and minor refurbishments are finished, and discussions covering a further six units are under way. Although the current focus is on centrally located one and two-room flats, the Company is evaluating a broader mix of unit types at appropriate price points.

 

Portfolio investment

During H1 2025, the Company invested €5.4m in the Portfolio (H1 2024: €2.6m), all of which is recognised as capital expenditure. For the full year, the Company expects capital expenditure to total €15m.

 

A further €0.7m (H1 2024: €1.0m) was spent on routine maintenance, expensed through the income statement. No properties were acquired during the period.

 

The step-up in capital expenditure reflects the works undertaken to prepare properties earmarked for condominium sales. Following the portfolio disposal completed in December 2024, the Company retains sufficient cash reserves to fund works required to optimise sale values for Tranches 1-4 in the condominium pipeline.

 

Table: EPRA Capital Expenditure (€m)

Capex category	30 June 2025	30 June 2024	31 Dec 2024	31 Dec 2023
Acquisitions	0.0	0.0	0.0	5.6
Like-for-like Portfolio	5.2	2.3	4.5	5.9
Development	0.0	0.0	0.5	3.0
Other	0.2	0.3	0.2	0.5
Total Capital Expenditure	5.4	2.6	5.2	15.0

 

Refinancing of debt

The Company has received indicative heads of terms to refinance all Company borrowings which mature in Q4 2026. Proceeds will repay the existing Natixis loan and the two Berliner Sparkasse facilities. The terms proposed, if approved, will increase the pool of assets from which condominiums can be sold, and remove the distribution blocker to allow the Company to make capital repayments to shareholders.

 

The Company is working towards completing the refinancing before the year end.

 

Debt and gearing

As at 30 June 2025, the Company had gross borrowings of €245.8m (31 December 2024: €269.6m) and cash balances of €21.1m (31 December 2024: €46.5m), resulting in net debt of €224.7m (31 December 2024: €223.1m) and a net loan-to-value ratio on the Portfolio of 41.0% (31 December 2024: 40.3%). The reduction in gross debt during the period was principally a consequence of the portfolio sale of the 16 properties in December 2024 and the subsequent repayment of €38.8m of associated Berliner Sparkasse debt. Further reductions also occurred through condominium sales during the period, although this represented a smaller amount.

Table: Borrowings and leverage

Balance sheet category	30 June 2025	30 June 2024	31 Dec 2024	31 Dec 2023
Gross borrowings1	€245.8m	€318.1m	€269.6m	€324.0m
Cash balances	€21.1m	€18.3m	€46.5m	€11.0m
Net borrowings	€224.7m	€299.8	€223.1m	313.0m
Net LTV	41.0%	46.4%	40.3%	46.3%
Average remaining duration	1.2 years	2.3 years	1.8 years	2.8 years

^{1 - Nominal loan balances used in calculation as per note 16 rather than balances on the Consolidated Statement of Financial Position which consider Capitalised Finance Arrangement Fees in the balance as per IAS 23}

The vast majority (97%) of the Company's debt has a fixed interest rate through a combination of fixed rate facilities and interest rate hedging. As at 30 June 2025, the blended interest rate of the Company's debt was 2.8% (31 December 2024: 2.5%). The increase in the all-in cost of funds reflects the impact of the Natixis loan restructuring in January, which resulted in an increased margin to accommodate changes in the facility structure, enabling the sale of condominiums across a larger number of properties.

 

OUTLOOK

Macro backdrop: Implications for Berlin condominium demand

Following the ECB's third consecutive 25 bp rate cut on 5 June 2025 to 2.0%, ten-year Bund yields have fallen to 2.3% (as at 30 August 2025). Banks have trimmed fixed-rate mortgage rates by 35-40 bp since May, broadening affordability for first-time buyers and owner-occupiers.

 

Lower financing costs and improved risk sentiment have supported a pick-up in condominium transactions. Data published by the Berlin Committee of Valuers indicate July-August condominium closings were up 18% year-on-year and Jones Lang Lasalle now expects aggregate condominium transaction values in 2025 to be approximately 20% higher than in 2024. The volume of PRS transactions, by contrast, remains muted.

 

Market dynamics: Demand continues to outstrip supply

Net immigration into Germany was estimated at 450,000 in the seven months to July, with c.23,000 settling in Berlin. The Federal Statistical Office now forecasts full-year net inflows of 580,000-600,000. By contrast, new supply of housing continues to contract: residential building permits fell 28% year-on-year in the first seven months, and 2025 completions are now expected at only 160,000-165,000 units, far below the Federal target of 400,000. Construction costs for multi-family buildings remain materially higher than market values in most locations, including Berlin. The economics of new development therefore remain unattractive, reinforcing the scarcity value of existing stock.

 

Regulatory environment: Stable but restrictive

No additional rent-control initiatives have been made since June, leaving the previously announced measures (extension of the Mietpreisbremse to 2029, reduction of the modernisation pass-through to 7% of capital expenditure, and the nationwide condominium-conversion moratorium through 2030) in force. On 19 August 2025, the Federal Constitutional Court dismissed a legal challenge to the conversion ban, reducing the prospect of near-term regulatory reversal. Because the Company's existing inventory is exempt from these restrictions, the scarcity value of its saleable stock is reinforced.

 

Capital return and discount to NAV

The Company has received indicative terms for a new debt facility, which is expected to allow shareholder distributions alongside ongoing debt reduction. The Company is working towards completing the refinancing before the year end.

 

At the current share price, the implied Portfolio valuation of €2,859 per sqm remains 29% below achieved condominium sale prices. Management believes that continuing to crystallise value through condominium sales, combined with the upcoming share redemption programme, is the most effective route to narrowing the persistent discount of the share price to NAV.

 

KEY PERFORMANCE INDICATORS

For the six months ended 30 June 2025, the Company has continued to focus on the recalibrated key performance indicators ("KPIs") introduced in 2024, which better align with its strategic priorities and evolving market conditions.

The new KPIs emphasise transparency around the Company's accelerated condominium sales strategy. Condominium sales velocity offers greater visibility into transaction activity. The inclusion of a share price discount to EPRA NTA addresses the persistent valuation gap, demonstrating management accountability for closing the disconnect between underlying asset values and equity market pricing. The addition of net loan-to-value (LTV) reinforces the Company's commitment to deleveraging. Like-for-like Portfolio valuation, EPRA NTA per share and condominium sales have been retained as KPIs.

Table: H1 2025 key performance indicators

Key performance indicators (2024)	30 June 2025	30 June 2024	31 December 2024	31 December 2023
LFL Portfolio valuation growth (%)	0.6	(3.3)	0.8	(11.9)
EPRA NTA per Share (€)	3.49	3.68	3.55	3.96
Share price discount to EPRA NTA (%)1	44.6	49.5	42.2	50.7
Condominium notarisations (€m)	14.6	5.3	9.4	7.2
Condominium sales velocity - LTM (%)	35.7	35.8	34.0	26.5
Net loan to value (%)	41.0%	46.4	40.3	46.3

1 For any given period, share price discount to EPRA NTA is calculated using the Sterling share price and €/£ exchange rate at the end of the period

 

Statement of Directors' responsibilities

The important events that have occurred during the period under review, the key factors influencing the condensed consolidated financial statements and the principal factors that could impact the remaining six months of the financial year are set out in the Chairman's Statement and the Property Advisor Report.

 

Since the date of the Annual Report for the year ended 31 December 2024, capital and investment markets have continued to react cautiously to historically high interest rates and economic uncertainty more generally and sentiment in the Berlin PRS real estate market remains weak.

 

The principal risks considered are substantially unchanged since the date of the Annual Report for the year ended 31 December 2024 and continue to be as set out in that report. As at 30 June 2025, these include, but are not limited to:

 

•.     Economic and geopolitical risk

•      Financing and interest rate risk

·      Valuation risk

·      Inability to sell properties, including condominiums

·      Share price discount to NAV

·      German property law risk

·      German tenancy law risk

·      Tenant affordability and tenant rental challenges

·      IT and cyber security risk

·      Outsourcing risk

·      Environmental risk

 

The Directors confirm that, to the best of their knowledge:

 

• The condensed set of financial statements contained within this half-yearly financial report have been prepared in accordance with International Accounting Standard ("IAS") 34 'Interim Financial Reporting' and give a true and fair view of the assets, liabilities, financial position and profit of the Group; and

 

• The half-yearly financial report includes a fair review of the information required by the FCA's Disclosure and Transparency Rule 4.2.7R being disclosure of important events that have occurred during the first six months of the financial year, their impact on the condensed set of financial statements and a description of the principal risks and uncertainties for the remaining six months of the year; and

 

• The half-yearly financial report includes a fair review of the information required by the Disclosure and Transparency Rule 4.2.8R being disclosure of related party transactions during the first six months of the financial year, how they have materially affected the financial position of the Company during the period and any changes therein.

 

The half-yearly financial report was approved by the Board on 25 September 2025 and the above responsibility statement was signed on its behalf by:

 

 

Director

25 September 2025

 

Condensed Consolidated Statement of Comprehensive Income
For the period from 1 January 2025 to 30 June 2025
											Six months ended		Six months ended		Year ended
							Notes				30 June 2025		30 June 2024		31 December 2024
											(unaudited)		(unaudited)		(audited)
											€'000		€'000		€'000
Continuing operations
Revenue											11,003		14,179		28,126
Property expenses							5				(7,135)		(8,022)		(15,755)
Gross profit											3,868		6,157		12,371
Administrative expenses							6				(2,376)		(1,243)		(3,811)
Loss on disposal of investment property (including investment property held for sale)							7				(941)		(536)		(3,194)
Investment property fair value loss							10				(704)		(25,148)		(5,416)
Operating profit / (loss)											(153)		(20,770)		(50)
Finance income (before (loss) / gain on interest rate swaps)							8				2,919		4,580		9,091
Finance costs (before (loss) / gain on interest rate swaps)							8				(7,838)		(9,350)		(18,156)
(Loss) / gain on interest rate swaps							8				(1,928)		1,452		(4,775)
Loss on disposal of subsidiary													-		(25,601)
Loss before taxation											(7,000)		(24,088)		(39,491)
Income tax credit							9				190		3,876		(607)
Loss after taxation											(6,810)		(20,212)		(40,098)
Other comprehensive income											-		-		-
Total comprehensive loss for the period											(6,810)		(20,212)		(40,098)
Total comprehensive income attributable to:
Owners of the parent											(6,802)		(19,446)		(38,895)
Non-controlling interests											(8)		(766)		(1,203)
											(6,810)		(20,212)		(40,098)
Earnings per share attributable to the owners of the parent:
From continuing operations
Basic (€)							20				(0.07)		(0.21)		(0.42)
Diluted (€)							20				(0.07)		(0.21)		(0.42)
Condensed Consolidated Statement of Financial Position
At 30 June 2025
											As at		As at		As at
							Notes				30 June 2025		30 June 2024		31 December 2024
											(unaudited)		(unaudited)		(audited)
											€'000		€'000		€'000
ASSETS
Non-current assets
Investment properties							12				498,479		525,008		516,902
Property, plant and equipment											13		10		9
Other financial assets at amortised cost							14				816		816		828
Derivative financial instruments							18				2,093		10,248		4,021
											501,401		536,082		521,760
Current assets
Trade and other receivables							15				10,345		13,492		8,309
Cash and cash equivalents											21,095		18,253		46,520
											31,440		31,745		54,829
Investment properties - held for sale							13				50,220		121,422		35,918
Total assets											583,061		689,249		612,507
EQUITY AND LIABILITIES
Current liabilities
Borrowings							16				423		1,371		407
Trade and other payables							17				13,341		21,698		11,656
Current tax							9				900		1,375		1,589
											14,664		24,444		13,652
Non-current liabilities
Borrowings							16				244,168		314,474		267,453
Deferred tax liability							9				53,503		52,909		53,866
											297,671		367,383		321,319
Total liabilities											312,335		391,827		334,971
Equity
Stated capital							19				196,578		196,578		196,578
Treasury shares											(37,448)		(37,448)		(37,448)
Retained earnings											110,240		136,491		117,042
Equity attributable to owners of the parent											269,370		295,621		276,172
Non-controlling interest											1,356		1,801		1,364
Total equity											270,726		297,422		277,536
Total equity and liabilities											583,061		689,249		612,507
Condensed Consolidated Statement of Changes in Equity
For the period from 1 January 2025 to 30 June 2025
					Attributable to the owners of the parent
					Stated capital		Treasury Shares		Retained earnings		Total		Non-controlling interest		Total equity
					€'000		€'000		€'000		€'000		€'000		€'000
Balance at 1 January 2024 (audited)					196,578		(37,448)		155,937		315,067		2,567		317,634
Loss for the period					-		-		(19,446)		(19,446)		(766)		(20,212)
Other comprehensive income					-		-		-		-		-		-
Total comprehensive income for the period					-		-		(46,614)		(46,614)		(414)		(47,028)
Balance at 30 June 2024 (unaudited)					196,578		(37,448)		136,491		295,621		1,801		297,422
Loss for the period					-		-		(19,449)		(19,449)		(437)		(19,886)
Other comprehensive income					-		-		-		-		-		-
Total comprehensive income for the period					-		-		(19,449)		(19,449)		(437)		(19,886)
Balance at 31 December 2024 (audited)					196,578		(37,448)		117,042		276,172		1,364		277,536
Loss for the period					-		-		(6,802)		(6,802)		(8)		(6,810)
Other comprehensive income					-		-		-		-		-		-
Total comprehensive income for the period					-		-		(6,802)		(6,802)		(8)		(6,810)
Balance at 30 June 2025 (unaudited)					196,578		(37,448)		110,240		269,370		1,356		270,726
Treasury shares comprise the accumulated cost of shares acquired on-market.
Condensed Consolidated Statement of Cash Flows
For the period from 1 January 2025 to 30 June 2025
							Notes				Six months ended		Six months ended		Year ended
											30 June 2025		30 June 2024		31 December 2024
											(unaudited)		(unaudited)		(audited)
											€'000		€'000		€'000
Loss before taxation											(7,000)		(24,088)		(39,491)
Adjustments for:
Finance income											(2,919)		(4,580)		(9,091)
Net finance charge (before loss / (gain) on interest rate swaps)							8				7,838		9,350		18,156
Loss / (gain) on interest rate swaps							8				1,928		(1,452)		4,775
Loss on disposal of investment property							7				941		536		3,194
Loss on disposal of subsidiary											-		-		25,601
Investment property revaluation loss							10				704		25,148		5,416
Depreciation											13		25		55
Operating cash flows before movements in working capital											1,505		4,939		8,615
(Increase) / decrease in receivables											(1,661)		(658)		712
Increase in payables											1,173		2,210		967
Cash generated from / (used in) operating activities											1,017		6,491		10,294
Income tax paid											(862)		(7)		(44)
Net cash generated from / (used in) operating activities											155		6,484		10,250
Cash flow from investing activities
Proceeds on disposal of investment property (net of disposal costs)											7,470		6,047		19,909
Proceeds on disposal received in advance											510		7,498		64
Interest received											134		41		48
Capital expenditure on investment property							12				(5,369)		(2,593)		(5,160)
(Acquisition) / disposals of property, plant and equipment											(16)		(24)		(53)
Subsidiary disposal in year:
Net proceeds received on disposal of subsidiary											-		-		31,884
Subsidiary disposal costs											-		-		(1,562)
Net cash generated from investing activities											2,729		10,969		45,130
Cash flow from financing activities
Interest paid on bank loans											(6,000)		(7,530)		(14,676)
Interest received on interest rate swaps											2,797		4,551		9,043
Interest paid on interest rate swaps											(1,327)		(1,380)		(2,775)
Repayment of bank loans											(23,779)		(5,857)		(54,085)
Drawdown on bank loan facilities											-		18		42,635
Net cash (used in) financing activities											(28,309)		(10,198)		(19,858)
Net increase in cash and cash equivalents											(25,425)		7,255		35,522
Cash and cash equivalents at beginning of period/year											46,520		10,998		10,998
Exchange gains on cash and cash equivalents											-		-		-
Cash and cash equivalents at end of period/year											21,095		18,253		46,520
Reconciliation of Net Cash Flow to Movement in Debt
For the period from 1 January 2025 to 30 June 2025
											Six months ended		Six months ended		Year ended
											30 June 2025		30 June 2024		31 December 2024
											€'000		€'000		€'000
Cashflow from increase in debt financing											(23,779)		(5,839)		(11,450)
Change in net debt resulting from cash flows											(23,779)		(5,839)		(11,450)
Non-cash changes from increase in debt financing											510		441		1,085
Loans relinquished on disposal of subsidiary undertaking											-		-		(43,018)
Movement in debt in the period/year											(23,269)		(5,398)		(53,383)
Debt at the start of the period/year											267,860		321,243		321,243
Debt at the end of the period/year							16				244,591		315,845		267,860
Notes to the Condensed Consolidated Financial Statements
For the period from 1 January 2025 to 30 June 2025
1. General information
The Group consists of a Parent Company, Phoenix Spree Deutschland Limited ('the Company'), incorporated in Jersey, Channel Islands and all its subsidiaries ('the Group') which are incorporated and domiciled in and operate out of Jersey and Germany. Phoenix Spree Deutschland Limited is listed under the Equity Shares (Commercial Companies) category of the London Stock Exchange.
The Group invests in residential and commercial property in Germany.
The registered office is at IFC 5, St Helier, Jersey, JE1 1ST, Channel Islands.
2. Basis of preparation
The interim set of condensed 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 and the United Kingdom.
The interim condensed consolidated 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 2024.
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 2024.
The comparative figures for the financial year ended 31 December 2024 are extracted from but do not comprise, the Group's annual consolidated financial statements for that financial year.
The results presented in this report are unaudited and they have been prepared in accordance with the recognition and measurement principles of UK-adopted International Accounting Standards that are expected to be applicable to the next set of financial statements and on the basis of the accounting policies to be used in those financial statements.
The interim condensed consolidated financial statements do not include all of the information required for full annual financial statements and accordingly, whilst the interim condensed consolidated financial statements have been prepared in accordance with the recognition and measurement principles of the UK-adopted International Accounting Standards, it cannot be construed as being in full compliance with the UK-adopted International Accounting Standards. The financial information contained in this announcement does not constitute statutory accounts as defined by the Companies (Jersey) Law 1991.
The interim condensed consolidated financial statements have not been audited or reviewed in accordance with International Standard on Review Engagements (UK) 2410. The consolidated financial statements for the period ended 31 December 2024 is based on the statutory accounts for the period ended 31 December 2024. The auditor reported on those accounts which were not qualified.
The interim condensed consolidated financial statements have been prepared on the basis of accounting policies applicable to a going concern. This basis presumes that funds will be available to finance future operations and that the realisation of assets and settlement of liabilities, will occur in the ordinary course of business.
The interim condensed consolidated financial statements were authorised and approved for issue on 25 September 2025.
2.1 Going concern
The interim condensed consolidated 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 forecasts for the Company in light of the continuing global inflationary pressures and rising interest rates, the conclusion of which was that there were no concerns. These condensed consolidated financial statements have therefore been prepared on a going concern basis.
2.2 New standards and interpretations
There are currently no new standards, amendments or interpretations effective for annual periods beginning on or after 1 January 2025 that are required to be adopted by the Group.
3. Critical accounting estimates and judgements
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 within the financial period;
i) Estimate of fair value of investment properties
The valuation of the Group's property portfolio is inherently subjective due to, among other factors, the individual nature of each property, its location and condition, and expected future rentals. The valuation as at 30 June 2025, which has been used to prepare these financial statements is based on the rules, regulations and market as at that date.  The fair value estimates of investments properties are detailed in note 12.
The best evidence of fair value is current prices in an active market of investment properties with similar leases 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 estimate, the Group considers information from a variety of sources, including:
a) 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.
b) Current prices in an active market for properties of different nature, condition or location (or subject to different lease or other contracts), adjusted to reflect those differences.
c) 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.
The Directors remain ultimately responsible for ensuring that the valuers are adequately qualified, competent and base their results on reasonable and realistic assumptions. The Directors have appointed Jones Lang LaSalle GmbH ('JLL') as the real estate valuation experts who determine the fair value of investment properties using recognised valuation techniques and the principles of IFRS 13. Further information on the valuation process can be found in note 12.
For further information with regard to the movement in the fair value of the Group's investment properties, refer to the management report on pages 6 to 7.
Notes to the Condensed Consolidated Financial Statements For the period from 1 January 2025 to 30 June 2025
ii) Judgment in relation to the recognition of assets held for sale
In accordance with the requirement of IFRS 5, Management has made an assumption in respect of the likelihood of investment properties - held for sale, being sold within the following 12 months. Management considers that based on historical and current experience of the market since 30 June 2025, the properties can be reasonably expected to sell within this timeframe.
4.   Segmental information
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating-decision maker.  The chief operating-decision maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Board of Directors. The Board has identified residential and commercial property as two distinct operating segments.  As commercial property does not currently account for more than 10% of either the combined revenue, combined profit or combined assets, the Board has considered the combined operations of the Group as a whole as the only operating segment.
5.   Property expenses
										30 June 2025		30 June 2024		31 December 2024
											(unaudited)		(unaudited)		(audited)
											€'000		€'000		€'000
Property management expenses											553		655		1,306
Repairs and maintenance											778		952		1,957
Impairment charge - trade receivables											160		(63)		1,178
Direct property expenses											3,093		4,122		6,199
Property Advisors' fees and expenses											2,127		2,025		4,315
Other property operating expenses											424		331		800
											7,135		8,022		15,755
6.   Administrative expenses
										30 June 2025		30 June 2024		31 December 2024
											(unaudited)		(unaudited)		(audited)
											€'000		€'000		€'000
Secretarial & administration fees											517		431		689
Legal & professional fees											1,373		487		2,044
Directors' fees											136		174		272
Bank charges											6		16		26
(Profit) / loss on foreign exchange											(8)		9		22
Depreciation											13		25		55
Other administrative expenses											424		198		797
Other income											(85)		(97)		(94)
											2,376		1,243		3,811
7.  Gain / (loss) on disposal of investment property (including investment property held for sale)
							Notes			30 June 2025		30 June 2024		31 December 2024
											(unaudited)		(unaudited)		(audited)
											€'000		€'000		€'000
Disposal proceeds											8,704		6,664		18,768
Book value of disposals							12				(8,786)		(6,582)		(20,971)
Disposal costs											(859)		(618)		(991)
											(941)		(536)		(3,194)
Where there has been a partial disposal of a property, the net book value of the asset sold is calculated on a per square metre rate, based on the December valuation.
8.  Net finance income / (charge)
										30 June 2025		30 June 2024		31 December 2024
											(unaudited)		(unaudited)		(audited)
											€'000		€'000		€'000
Interest income											122		29		48
Swap cancellation income											-		-		388
Interest income on swaps											2,797		4,551		8,655
Finance income											2,919		4,580		9,091
Interest expense on swaps											(1,327)		(1,380)		(2,775)
Interest expense on bank borrowings											(6,511)		(7,970)		(15,381)
Finance cost											(7,838)		(9,350)		(18,156)
Fair value loss on interest rate swap											(1,928)		1,452		(4,775)
											(6,847)		(3,318)		(13,840)
Notes to the Condensed Consolidated Financial Statements
For the period from 1 January 2025 to 30 June 2025
9.  Income tax (credit) / expense
										30 June 2025		30 June 2024		31 December 2024
											(unaudited)		(unaudited)		(audited)
The tax (credit) / charge for the period is as follows:											€'000		€'000		€'000
Current tax charge											173		526		777
Deferred tax credit - origination and reversal of temporary differences											(363)		(4,402)		(170)
											(190)		(3,876)		607
The tax charge for the year can be reconciled to the theoretical tax charge on the profit in the condensed consolidated statement of comprehensive income as follows:
										30 June 2025		30 June 2024		31 December 2024
											(unaudited)		(unaudited)		(audited)
											€'000		€'000		€'000
Loss before tax on continuing operations											(7,000)		(24,088)		(39,491)
Tax at German income tax rate of 15.8% (2024: 15.8%)											(1,108)		(3,812)		(6,240)
Income not taxable											149		85		505
Tax effect of losses brought forward											769		(149)		6,342
Total tax (credit) for the period / year											(190)		(3,876)		607
Reconciliation of current tax liabilities
										30 June 2025		30 June 2024		31 December 2024
											(unaudited)		(unaudited)		(audited)
											€'000		€'000		€'000
Balance at beginning of period/year											1,589		856		856
Tax paid											(862)		(7)		(44)
Current tax charge											173		526		777
Balance at end of period/year											900		1,375		1,589
Reconciliation of deferred tax
											Capital gains on properties		Interest rate swaps		Total
											Liability		Liability	Net liabilities
											€'000		€'000		€'000
Balance at 1 January 2024											(55,919)		(1,392)		(57,311)
Charged to the statement of comprehensive income											4,632		(230)		4,402
Deferred tax liability at 30 June 2024											(51,287)		(1,622)		(52,909)
Deferred tax liability disposal											3,275		-		3,275
Charged to the statement of comprehensive income											(5,218)		986		(4,232)
Deferred tax liability at 31 December 2024											(53,230)		(636)		(53,866)
Charged to the statement of comprehensive income											58		305		363
Deferred tax liability at 30 June 2025											(53,172)		(331)		(53,503)
10.  Investment property fair value (loss) / gain
										30 June 2025		30 June 2024		31 December 2024
											(unaudited)		(unaudited)		(audited)
											€'000		€'000		€'000
Investment property fair value loss											(704)		(25,148)		(5,416)
Further information on investment properties is shown in note 12.
Notes to the Condensed Consolidated Financial Statements
For the period from 1 January 2025 to 30 June 2025
11.  Dividends
										30 June 2025		30 June 2024		31 December 2024
											(unaudited)		(unaudited)		(audited)
											€'000		€'000		€'000
Amounts recognised as distributions to equity holders in the period:
No interim dividend was paid for the years ended 31 December 2024 and 31 December 2023.											-		-		-
No final dividend was paid for the years ended 31 December 2024 and 31 December 2023.											-		-		-
The Board are not proposing to declare a dividend for the first half of the year (six months to 30 June 2024: Nil cents, Nil pence).
12.  Investment properties
										30 June 2025		30 June 2024		31 December 2024
											(unaudited)		(unaudited)		(audited)
Fair value											€'000		€'000		€'000
Balance at beginning of period/year											552,820		675,567		675,567
Capital expenditure											5,369		2,593		5,160
Disposals											(8,786)		(6,582)		(122,491)
Fair value loss											(704)		(25,148)		(5,416)
Investment properties at fair value - as set out in the report by JLL											548,699		646,430		552,820
Assets considered as "Held for sale" (Note 13)											(50,220)		(121,422)		(35,918)
Balance at end of period/year											498,479		525,008		516,902
The property portfolio was valued at 30 June 2025 by the Group's independent valuers, JLL, in accordance with the methodology described below. The valuations were performed in accordance with the current Appraisal and Valuation Standards, 8th edition (the 'Red Book') published by the Royal Institution of Chartered Surveyors (RICS).
The valuation of the property Portfolio 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 QSix Residential 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. JLL also uses data from comparable market transactions where these are available alongside their own assumptions.
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 the condensed consolidated financial statements.
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.
All properties are valued as Level 3 measurements under the fair value hierarchy (see note 22) as the inputs to the discounted cash flow methodology which have a significant effect on the recorded fair value are not observable. Additionally, JLL perform reference checks back to comparable market transactions to confirm the valuation model.
The unrealised fair value gain or loss in respect of investment property is disclosed in the condensed consolidated statement of comprehensive income as 'Investment property fair value gain or loss'.
Valuations are undertaken using the discounted cash flow valuation technique as described below and with the inputs set out as follows:
Discounted cash flow methodology (DCF)
The fair value of investment properties is determined using discounted cash flows.
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.
Notes to the Condensed Consolidated Financial Statements
For the period from 1 January 2025 to 30 June 2025
12.  Investment properties (continued)
The Group categorises all investment properties in the following three ways;
Rental Scenario
'Rental Scenario' properties have been valued under the Discounted Cashflow Methodology and are included in the Investment properties line in the Non-current assets section of the Condensed Consolidated Statement of Financial Position. In general, the market participants are willing to pay higher prices for properties where physical and legal requirements are fulfilled and it is financially feasible to sell units individually. In these cases, the market values are still calculated on a rental basis but are adjusted to reflect the described potential increase in value. JLL calculates the market value of these assets in what is referred to as a 'Privatisation potential', which includes a deduction to the rental scenario discount rate for each completed step met when transitioning from the Rental Scenario to the Condominium Scenario. Properties expected to be sold in the coming year from these assets are considered held for sale under IFRS 5 and can be seen in note 13.
Condominium Scenario
Included in this valuation scenario are properties that have the potential or the benefit of all relevant permissions required to sell apartments individually (condominiums), and have been approved for sale by the Board. Units expected to be sold in the coming year from these assets are considered held for sale under IFRS 5 and can be seen in note 13. The market value of the Privatisation potential of these assets is reported under this Condominium Scenario.
Disposal Scenario
Where properties have been notarised for sale prior to the reporting date, but have not completed; they are held at their notarised disposal value. These assets are considered held for sale under IFRS 5 as set out in note 13.
The table below sets out the assets valued using these 3 scenarios:
										30 June 2025		30 June 2024		31 December 2024
											(unaudited)		(unaudited)		(audited)
											€'000		€'000		€'000
Rental scenario											276,322		609,450		274,790
Condominium scenario											272,377		29,580		278,030
Disposal scenario											-		7,400		-
Total											548,699		646,430		552,820
13.  Investment properties - Held for sale
										30 June 2025		30 June 2024		31 December 2024
											(unaudited)		(unaudited)		(audited)
											€'000		€'000		€'000
Fair value - held for sale investment properties
At beginning of period/year											35,918		60,594		60,594
Transferred from investment properties											22,595		108,312		32,667
Transferred to investment properties											-		(38,800)		(39,675)
Capital expenditure											653		304		239
Properties sold											(8,786)		(6,582)		(20,971)
Valuation (loss) / gain on assets held for sale											(160)		(2,406)		3,064
At end of period/year											50,220		121,422		35,918
Investment properties are re-classified as current assets and described as 'held for sale' in three different situations: properties notarised for sale at the reporting date, properties where at the reporting date the Group has obtained and implemented all relevant permissions required to sell individual apartment units, and efforts are being made to dispose of the assets ('condominium'); and properties which are being marketed for sale but have currently not been notarised.
Properties notarised for sale by the reporting date are valued at their disposal price (disposal scenario), and other properties are valued using the condominium or rental scenarios (see note 12) as appropriate.
Investment properties held for sale are all expected to be sold within 12 months of the reporting date based on Management knowledge of current and historic market conditions.
14.  Other financial assets at amortised cost
										30 June 2025		30 June 2024		31 December 2024
											(unaudited)		(unaudited)		(audited)
											€'000		€'000		€'000
Non-current
Balance at beginning of period/year											828		828		828
Repayment of loan interest											(24)		(24)		(24)
Accrued interest											12		12		24
Balance at end of period/year											816		816		828
The Group entered into a loan agreement with the minority interest of Accentro Real Estate AG in relation to the acquisition of the assets as share deals. This loan bears interest at 3% per annum.
These financial assets are considered to have low credit risk and any loss allowance would be immaterial.
None of these financial assets were either past due or impaired.
Notes to the Condensed Consolidated Financial Statements
For the period from 1 January 2025 to 30 June 2025
15.  Trade and other receivables
										30 June 2025		30 June 2024		31 December 2024
											(unaudited)		(unaudited)		(audited)
											€'000		€'000		€'000
Current
Trade receivables											542		716		749
Service charges receivable											8,030		9,911		5,779
Less: impairment provision											(856)		(234)		(696)
Net receivables											7,716		10,393		5,832
Prepayments and accrued income											845		905		283
Other receivables											1,784		2,194		2,194
											10,345		13,492		8,309
16.  Borrowings
										30 June 2025		30 June 2024		31 December 2024
											(unaudited)		(unaudited)		(audited)
											€'000		€'000		€'000
Current liabilities
Bank loans  -  NATIXIS Pfandbriefbank AG*											120		343		106
Bank loans  -  Berliner Sparkasse											303		1,028		301
											423		1,371		407
Non-current liabilities
Bank loans  -  NATIXIS Pfandbriefbank AG**											225,504		257,279		248,635
Bank loans  -  Berliner Sparkasse											18,664		57,195		18,818
											244,168		314,474		267,453
											244,591		315,845		267,860
* Nominal value of the borrowings as at 30 June 2025 was €1,123,000 (31 December 2024: €1,109,000, 30 June 2024: €1,355,000).
** Nominal value of the borrowings as at 30 June 2025 was €225,705,000 (31 December 2024: €249,333,000, 30 June 2024: €258,493,000).
For further information on borrowings, refer to the management report on page 10.
17.  Trade and other payables
										30 June 2025		30 June 2024		31 December 2024
											(unaudited)		(unaudited)		(audited)
											€'000		€'000		€'000
Trade payables											2,563		3,004		3,985
Accrued liabilities											1,975		1,743		2,129
Service charges payable											8,229		9,453		5,478
Advanced payment received on account											574		7,498		64
											13,341		21,698		11,656
18.  Derivative financial instruments
										30 June 2025		30 June 2024		31 December 2024
											(unaudited)		(unaudited)		(audited)
											€'000		€'000		€'000
Interest rate swaps - carried at fair value through profit or loss
At beginning of period/year											4,021		8,796		8,796
Loss in movement in fair value through profit or loss											(1,928)		1,452		(4,775)
At end of period/year											2,093		10,248		4,021
The notional principal amounts of the outstanding interest rate swap contracts at 30 June 2025 were €219,000,000 (December 2024: €219,000,000, June 2024: €230,683,750). At 30 June 2025 the fixed interest rates vary from 1.008% to 3.210% (December 2024: 1.008% to 3.210%, June 2024: 0.775% to 3.210%) above the main factoring Euribor rate.
Notes to the Condensed Consolidated Financial Statements
For the period from 1 January 2025 to 30 June 2025
18.  Derivative financial instruments (continued)
Maturity analysis of interest rate swaps
										30 June 2025		30 June 2024		31 December 2024
											€'000		€'000		€'000
Less than 1 year											-		-		2,738
Between 1 and 2 years											2,093		-		1,345
Between 2 and 5 years											-		10,248		-
											2,093		10,248		4,083
19.  Stated capital
										30 June 2025		30 June 2024		31 December 2024
											(unaudited)		(unaudited)		(audited)
											€'000		€'000		€'000
Issued and fully paid:
At reporting date											196,578		196,578		196,578
											196,578		196,578		196,578
The number of shares in issue at 30 June 2025 was 100,751,410 (including 8,924,047 as Treasury Shares), 31 December 2024: 100,751,410 (including 8,924,047 as Treasury Shares), 30 June 2024: 100,751,410 (including 8,924,047 as Treasury Shares).
20.  Earnings per share
										30 June 2025		30 June 2024		31 December 2024
											(unaudited)		(unaudited)		(audited)
Earnings for the purposes of basic earnings per share being net profit attributable to owners of the parent (€'000)											(6,802)		(19,446)		(38,895)
Weighted average number of ordinary shares for the purposes of basic earnings per share (Number)											91,827,363		91,827,363		91,827,363
Effect of dilutive potential ordinary shares (Number)											-		-		-
Weighted average number of ordinary shares for the purposes of diluted earnings per share (Number)											91,827,363		91,827,363		91,827,363
Earnings per share (€)											(0.07)		(0.21)		(0.42)
Diluted earnings per share (€)											(0.07)		(0.21)		(0.42)
21.  Net asset value per share and EPRA Net Tangible Assets (NTA)
										30 June 2025		30 June 2024		31 December 2024
											(unaudited)		(unaudited)		(audited)
Net assets (€'000)											269,370		295,621		276,172
Number of participating ordinary shares											91,827,363		91,827,363		91,827,363
Net asset value per share (€)											2.93		3.22		3.01
EPRA NTA
										30 June 2025		30 June 2024		31 December 2024
											(unaudited)		(unaudited)		(audited)
Net assets (€'000)											269,370		295,621		276,172
Add back deferred tax assets and liabilities, derivative financial instruments and share based payment reserves (€'000)											51,410		42,661		49,845
EPRA NTA (€'000)											320,780		338,282		326,017
EPRA NTA per share (€)											3.49		3.68		3.55
Notes to the Condensed Consolidated Financial Statements
For the period from 1 January 2025 to 30 June 2025
22.  Financial instruments
The Group is exposed to the risks that arise from its use of financial instruments. This note describes the objectives, policies and processes of the Group for managing those risks and the methods used to measure them. Further quantitative information in respect of these risks is presented throughout the condensed consolidated financial statements.
Principal financial instruments
The principal financial instruments used by the Group, from which financial instrument risk arises, are as follows:
• financial assets
• cash and cash equivalents
• trade and other receivables
• trade and other payables
• borrowings
• derivative financial instruments
The Group held the following financial assets at each reporting date:
										30 June 2025		30 June 2024		31 December 2024
											(unaudited)		(unaudited)		(audited)
											€'000		€'000		€'000
Held at amortised cost
Trade and other receivables - current											9,500		12,587		8,026
Cash and cash equivalents											21,097		18,255		46,520
Loans and receivables											816		816		828
											31,413		31,658		55,374
Fair value through profit or loss
Derivative financial asset - interest rate swaps											2,093		10,248		4,021
											2,093		10,248		4,021
											33,506		41,906		59,395
The Group held the following financial liabilities at each reporting date:
										30 June 2025		30 June 2024		31 December 2024
											(unaudited)		(unaudited)		(audited)
											€'000		€'000		€'000
Held at amortised cost
Borrowings payable: current											423		1,371		407
Borrowings payable: non-current											244,168		314,474		267,453
Trade and other payables											13,341		21,698		11,656
											257,932		337,543		279,516
											257,932		337,543		279,516
Fair value of financial instruments
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 during September 2026.
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.
Notes to the Condensed Consolidated Financial Statements
For the period from 1 January 2025 to 30 June 2025
22.  Financial instruments (continued)
Group fair values
										30 June 2025		30 June 2024		31 December 2024
											(unaudited)		(unaudited)		(audited)
											€'000		€'000		€'000
Financial (liabilities) / assets
Interest rate swaps - Level 2 - current											-		-		-
Interest rate swaps - Level 2 - non-current											2,093		10,248		4,021
											2,093		10,248		4,021
The valuation basis for the investment properties is disclosed in note 12.
23.  Related party transactions
Related party transactions not disclosed elsewhere are as follows:
QSix Residential Limited is the Group's appointed Property Advisor. No Directors of QSix Residential Limited currently sit on the Board of PSD, although its Principals retain a shareholding in the Company. For the six-month period ended 30 June 2025, an amount of €2,126,671 (€2,126,671 Management Fees and €Nil Other expenses and fees) (December 2024: €4,296,112 (€4,293,070 Management fees and €3,042 Other expenses and fees), June 2024: €2,019,859 (€2,016,817 Management Fees and €3,042 Other expenses and fees)) was payable to QSix Residential Limited. At 30 June 2025 €236,681 (December 2024: €1,113,429, June 2024: €40,235) was outstanding.
Apex Financial Services (Alternative Funds) Limited, the Company's administrator provided administration and company secretarial services to PSDL and its subsidiaries in 2024. For the six-month period ended 30 June 2025, an amount of €374,857 (December 2024: €688,502, June 2024: €335,467) was payable to Apex Financial Services (Alternative Funds) Limited. At 30 June 2025 €Nil (December 2024: €Nil, June 2024: €Nil) was outstanding.
Dividends paid to Directors in their capacity as a shareholder amounted to €Nil (December 2024: €Nil, June 2024: €Nil).
24.  Events after the reporting date
Since the reporting date, the Company has completed sales of 20 condominium units that were notarised at the reporting date with a value of €5.6m. The Company exchanged contracts on 30 condominium units for a total of €7.8m, of which 1 unit has competed with a value of €0.1m.
Professional Advisors
Property Advisor			QSix Residential Limited
			54-56 Jermyn Street
			London SW1Y 6LX
Administrator			Apex Financial Services (Alternative Funds) Limited
Company Secretary			IFC 5
and Registered Office			St Helier
			Jersey JE1 1ST
Registrar			MUFG Corporate Markets (Jersey) Limited
			IFC 5
			St. Helier
			Jersey JE1 1ST
Principal Banker			Barclays Private Clients International Limited
			13 Library Place
			St. Helier
			Jersey JE4 8NE
UK Legal Advisor			Stephenson Harwood LLP
			1 Finsbury Circus
			London EC2M 7SH
Jersey Legal Advisor			Mourant
			22 Grenville Street
			St. Helier
			Jersey JE4 8PX
German Legal Advisor			Mittelstein Rechtsanwälte
as to property law			Alsterarkaden 20
			20354 Hamburg
			Germany
German Legal Advisor			Mittelstein Rechtsanwälte
as to general matters			Alsterarkaden 20
			20354 Hamburg
			Germany
German Legal Advisor as			Taylor Wessing Partnerschaftsgesellschaft mbB
to German partnership law			Thurn-und-Taxis-Platz 6
			60313 Frankfurt a.M.
			Germany
Sponsor and Broker			Deutsche Bank AG
			21 Moorfields
			London
			EC2Y 9DB
Independent Property Valuer			Jones Lang LaSalle GmbH
			Rahel-Hirsch-Strasse 10
			10557 Berlin
			Germany
Auditor			RSM UK Audit LLP
			25 Farringdon Street
			London EC4A 4AB