Berlin residential property landlord enjoys a strong 2018

German residential property investor Phoenix Spree Deutschland (PSDL) seems able to brush off the country’s economic struggles after it reported a 14% increase in the value of its portfolio during 2018.

Its focus on a relatively buoyant Berlin property market also delivered strong rental growth of 7.4%. The investment trust benefits from its exposure to a city with falling unemployment, an undersupply of rental properties and population growth.

By renovating its properties, many of which are upwards of 70 years old, Phoenix can push through rent increases in a tightly regulated market.

At 351p the shares trade at a 4.7% discount to net asset value and yield 1.9%.

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