The Berlin residential property market remained resilient in H220 despite COVID-19 and introduction of the rent cap. Phoenix Spree Deutschland (PSD) saw a 6.3% like-for-like increase in FY20 valuations, supporting strong growth in EPRA NAV per share, above our forecast. As discussed in detail in our December initiation note, pending a resolution of the rent cap legal challenge, PSD has sought to mitigate the effects while maintaining strategic flexibility; a resolution, which PSD expects by mid-year, will determine the strategy for extracting the value embedded in its portfolio.
