Phoenix Spree Deutschland (PSDL): Rent cap deci...

Edison Investment Research Limited Phoenix Spree Deutschland (PSDL): Rent cap decision will determine strategy 07-Dec-2020 / 08:00 GMT/BST London, UK, 7 December 2020 Phoenix Spree Deutschland (PSDL): Rent cap decision will determine strategy Phoenix Spree Deutschland (PSD) is a pure play on Berlin residential property, where excess demand drives free market rent growth. H120 financial performance was robust despite the COVID-19 pandemic and the first effects of Berlin rent controls. Recent full implementation of the legislation will significantly reduce FY21 rental income and peg rents for five years, but it remains PSD's firm view that the legislation will ultimately be ruled unconstitutional and overturned. Our central scenario (shown below) assumes repeal, effective from 1 January 2021. Should this not happen, it has significant condominium optionality and our analysis highlights significant value embedded in the portfolio in either case. A c 30% discount to FY20e EPRA NAV per share compares with a five-year average of 8% since IPO. The discount is a larger c 40% to our estimated 'condominium' valuation that we would expect to be in focus should the rent cap not be repealed.  Click here to view the full report. Subscribe to Edison's content to receive reports by email. All reports published by Edison are free-to-access and available on the website. About Edison: Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world-renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisers and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting. Edison is authorised and regulated by the Financial Conduct Authority. Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities. For more information please contact Edison: Martyn King [phone] [e-mail] Learn more at www.edisongroup.com and connect with Edison on:  LinkedIn  https://www.linkedin.com/company/edison-group- Twitter   www.twitter.com/Edison_Inv_Res YouTube   https://www.youtube.com/user/EdisonITV/videos Dissemination of a CORPORATE NEWS, transmitted by EQS Group. The issuer is solely responsible for the content of this announcement.

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