Berlin residential landlord Phoenix Spree Deutschland (PSDL) gains 3% to 387.3p this morning as it announces a 43.8% increase in the valuation of its portfolio to €609.3m.
The boost, following work by external valuer Jones Lang LaSalle GmbH, reflects continuing strong demand in Germany's capital for quality rented accommodation as well as several disposals of non-core assets which were achieved at good prices.
BEST GROWTH IN DECADE RUN
It represents the most significant growth in the trust's ten year history.
The relatively modest reaction to such a big uplift in value for the investment trust reflects the 30% premium to net asset value it was trading at prior to today's announcement, suggesting the market was already pricing this news in.
Phoenix Spree was among the best performing investment trusts in 2017 with the shares up nearly 60% in the last 12 months.
BIG IN BERLIN
Chairman Robert Hingley says: 'Following profitable disposals made in the year, the portfolio is now fully focused on Berlin, where the company has acquired further assets at attractive prices.
'We will continue to grow the portfolio in Berlin, where the market outlook remains strong and where we see potential for further value and rental growth through continued investment.'
To read more about the trust and the dynamics behind the residential market in Berlin you can read this recent article from Shares.
