Initiation of Coverage by Edison Inv. Research

09 December 2020

Phoenix Spree Deutschland Limited

("PSD" or the "Company")

Initiation of Coverage by Edison Investment Research

Phoenix Spree Deutschland Limited (LSE: PSDL.LN), the UK listed investment company specialising in Berlin residential real estate, announces that equity research company, Edison, has initiated coverage on the Company.

Edison has been engaged to produce regular, in-depth research on the Company. The intention is to raise the visibility of the Company and enable investors to develop an improved understanding of the business.  Edison's research is read on a free-to-access basis by individuals and institutions across the globe. A full copy of the research will shortly be made available on the Company website and can be accessed at:

https://www.edisongroup.com/publication/rent-cap-decision-will-determine-strategy/28399/

Edison Writes: "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 assumes repeal. 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a larger c40% to our estimated 'condominium' valuation that we would expect to be in focus should the rent cap not be repealed."

Edison is authorised and regulated by the Financial Conduct Authority, 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.

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