Phoenix Spree Deutschland Ltd said on Wednesday it suspended its dividend.
The Berlin, Germany-based residential real estate investor said its net asset value per share at December 31 was at €4.50, down 5.1% from €4.74 in 2021.
Phoenix Spree’s EPRA net tangible asset per share total return was negative 8.4%. It was a worse outcome than the total return of positive 8.4% achieved in 2021.
The company said it was suspending dividends ‘to preserve cash and support its core business’. It declared no final dividend, compared to 5.15 euro cents in 2021.
The total dividend was down 69% to 2.35 euro cents, which was the interim dividend declared in September, from 7.50 euro cents the year prior.
Phoenix Spree said it swung to a pretax loss of €17.5 million from a profit of €45.3 million. This result reflects the non-cash impact of a €42.2 million revaluation loss, the company said.
Meanwhile, Phoenix Spree’s revenue increased slightly by 0.4% to €25.9million from €25.8million.
Looking ahead, the company said it remains well positioned, with a strong balance sheet and conservative debt financing. Its rental values are well-supported by positive demographic trends that within the Berlin property market.
Chair Robert Hingley said: ‘Although our core rental business continues to thrive, PSD has not been immune from these broader trends, and the board has therefore taken the decision to suspend the dividend.
‘Whilst the speed of recovery in transaction volumes and buyer sentiment is uncertain, the company will seek to resume dividends as soon as the outlook becomes clearer.’
Shares were down 7.4% at 201.00 pence in London on Wednesday morning.
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