Phoenix Spree Deutschland Announces First Capital Return and Exceeds Sales Target in 2025

Phoenix Spree condominium sales beat target and validate the strategy

The standout operational number is the €36.0 million of condominium sales notarised in 2025, ahead of the company’s €30 million target and sharply above €9.4 million in 2024. “Notarised” in Germany means legally signed off, so these are serious sales rather than vague pipeline claims.

Even better, pricing held up. Average achieved pricing before disposal costs was at a 4.1% premium to the most recent valuation before sale. That is exactly the sort of evidence you want if management is arguing that selling individual flats beats selling whole rented blocks.

• 122 units notarised in 2025 for €36.0 million
• Average sales price of €4,132 per sqm
• Vacant units sold at €4,585 per sqm, an 18.6% premium to carrying values
• Occupied units sold at €3,909 per sqm, a 2.8% discount to carrying values

That last point is worth pausing on. Vacant flats are the gold standard here because they attract owner-occupiers and stronger pricing. Occupied flats still sell, but they come with tenant protections and therefore weaker economics.

Since the year-end, the company has already notarised a further 56 units for €16.5 million, with another 35 units worth €10.3 million under reservation. Against a 2026 target of at least €55 million of notarisations, that is a good start.

Berlin residential valuation stabilisation gives Phoenix Spree a better backdrop

The total portfolio value slipped to €540.1 million from €552.8 million, so the headline balance sheet still went backwards. But that does not tell the full story because the company has been selling assets.

On a like-for-like basis, adjusted for disposals, valuation per square metre rose 1.5%. That is a useful sign that the Berlin market may be stabilising after a painful reset.

• Condominium Sales Portfolio value per sqm: €4,191, up 3.1% like-for-like
• PRS portfolio value per sqm: €3,288, up 0.8% like-for-like

PRS means Private Rental Sector – the blocks held mainly for rent rather than split and sold unit by unit. The important takeaway is that condominiums still command a clear premium over PRS valuations, and that pricing gap is the whole logic behind the company’s sell-down plan.

Phoenix Spree refinancing removes a major obstacle to shareholder distributions

Another big positive was the refinancing completed in November 2025. The company replaced its old borrowing structure with a new €255 million, five-year, interest-only facility.

Why does that matter? Because the old debt arrangements limited how many condominiums could be sold and restricted shareholder distributions. The new facility removes those restrictions and gives the company more room to execute its strategy properly.

Net debt ended the year at €222.0 million, little changed from €223.1 million. Net loan-to-value edged up to 41.0% from 40.3%, so leverage is still meaningful, but the maturity profile is much better and the refinancing risk has been pushed out.

In short, the balance sheet is no longer the main problem. Execution is.

What still looks weak in Phoenix Spree’s 2025 results

This was not a clean set of numbers. Gross rental income fell to €22.7 million from €28.1 million, and both IFRS NAV and EPRA NTA per share declined in euro terms.

Some of that is deliberate. When the company sells flats and does not re-let empty ones, rental income naturally shrinks. But investors still need to accept that this is a contracting business, not a growing one.

There are a few pressure points worth watching:

• IFRS vacancy rose to 11.8% from 8.0%
• EPRA vacancy rose to 4.1% from 1.5%
• Portfolio valuation fell in absolute terms
• Occupied unit sales were below asset carrying value
• Capital returns depend on sale proceeds, tax, debt paydown and covenant headroom

The company also still traded at a big discount to its assets at 31 December 2025. The share price discount to IFRS NAV was 28.6%, while the discount to EPRA NTA was 43.2%. That tells you the market still wants proof, not promises.

My view on Phoenix Spree Deutschland shares after the 2025 RNS

This update looks more positive than the headline loss and falling rental income might suggest. The company beat its sales target, sold vacant units at strong premiums, stabilised valuations, fixed the debt structure and announced a real cash return.

That is solid progress. More importantly, it supports the argument that Phoenix Spree can unlock more value through individual flat sales than through a wholesale disposal of rented blocks.

The catch is that this remains an execution story. If sales slow, if pricing softens, or if costs and taxes eat more of the proceeds than hoped, future capital returns could disappoint. Management has improved the setup, but it still needs to deliver quarter after quarter.

What Phoenix Spree investors should watch in 2026

• Whether the company reaches its at least €55 million 2026 sales target
• How much of those sales come from higher-margin vacant units
• Whether costs and capital expenditure fall materially as promised
• How quickly further capital returns are announced
• Whether the discount to NAV starts to narrow as cash comes back to shareholders

My bottom line: this was a meaningful step forward. Phoenix Spree has moved from talking about value realisation to actually doing it, and for a discounted property stock, that is exactly what shareholders needed to see.