Interim report
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RNS Number : 4528WPhoenix Spree Deutschland Limited28 September 2026 28 September 2026 Phoenix Spree Deutschland Limited (the "Company" or "PSD") Interim Results for the six months ended 30 June 2026 Phoenix Spree Deutschland Limited (LSE: PSDL), the UK-listed Berlin residential property company, announces its interim results for the six months ended 30 June 2026. Condominium sales progressed in line with plan during the first half, at pricingthat supported balance sheet carrying values. The Company completed its first compulsory share redemption following theperiod end, returning £17.5m to shareholders. Third-quarter notarisations to date, however, have been below the first-half run rate, reflecting tightening financing andaffordability conditions. The Company reduced prices on selected vacant apartments in July and reset vacant asking prices more broadly from mid-September 2026, with the aim of supporting sales momentum. HIGHLIGHTS Metric (€m unless stated) Six months to 30 June 20261 Six months to 30 June 20251 Year to 31 December 2025 Realisation and cash returns Condominium sales notarised (€m) 28.1 14.6 35.9 Condominium sales notarised per sqm (€)2 4,433 4,043 4,129 Vacant condominiums notarised per sqm (€)2 4,705 5,040 4,581 Occupied condominiums notarised per sqm (€)2 4,264 3,677 3,905 Gross proceeds from sales completed in the period (€m) 24.8 8.7 22.6 Cash returned to shareholders post period end (£m)3 17.5 - - Portfolio valuation and balance sheet Portfolio valuation (€m) 518.5 548.7 540.1 Portfolio valuation per sqm (€) 3,670 3,654 3,686 IFRS NAV per share (€) 2.89 2.93 2.94 IFRS NAV per share (£)4 2.49 2.50 2.56 IFRS NAV per share total return for the period (€%) (1.7) (2.7) (2.3) EPRA NTA per share (€)5 3.36 3.49 3.40 EPRA NTA per share (£)4, 5 2.89 2.98 2.97 EPRA NTA per share total return (€%)5 (1.2) (1.7) (4.2) Net LTV (%)6 39.6 41.0 41.0 Income statement and operations Gross rental income 10.3 11.0 22.7 (Loss) / profit before tax (4.1) (7.0) (13.6) Annualised like-for-like rent per sqm growth (%)7 0.7 1.3 0.8 EPRA vacancy (%)5 3.6 2.1 4.1 1 The H1 2026 and H1 2025 figures in this table are unaudited; the figures for the year ended 31 December 2025 are extracted from the Group's auditedconsolidated financial statements for that year. 2 Gross sale prices before tax and broker fees; vacant apartments typically achieve higher pricing thanoccupied apartments. 3 Paid on 14 July 2026, after the period end. 4 Sterling figures use the GBP/EUR rate at the relevant reporting date. 5 EPRA metrics aredefined in the notes to the interim financial statements. 6 Net LTV uses nominal loan balances, excluding capitalised finance arrangement fees. 7 like-for-like movements exclude disposals and transfers between the PRS Portfolio and Condominium Sales Portfolio. Portfolio realisation strategy converting sales into shareholder returns · Notarised sales nearly doubled compared with H1 2025 to 93 apartments with an aggregate value of €28.1m (H1 2025: 51apartments / €14.6m).· The first compulsory share redemption returned £17.5m to shareholders on 14 July 2026, marking the first capital return under the current realisation programme.· Further capital returns are expected as completed sales generate surplus cash, supported by €18.2m of sales notarisedbut not completed at 30 June 2026. The timing of capital returns will follow the conversion of notarisations into completions, and remains subject to available cash, banking covenants, solvency requirements and Board approval.· Administrative expenses declined by 43% compared to H1 2025 to €1.2m and total property-level and administrativecosts declined by 14% to €8.2m, with a review of all recurring costs under way.
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Achieved H1 pricing supports balance sheet carrying values and exceeds the PRS benchmark by 41% · The 93 apartments notarised in H1 achieved an average price of €4,433 per sqm, 2.2% above the latest balance sheetcarrying values of the relevant properties.· Vacant apartments were notarised at 14.7% above those values, while occupied apartments were notarised at 4.8% below.· Achieved condominium sales' pricing was 41% above the JLL PRS Portfolio December 2025 valuation benchmark of €3,142per sqm, illustrating the continuing valuation differential between individual unit sales and bulk PRS assets. · IFRS NAV per share was £2.49 per share at 30 June 2026 (30 June 2025: £2.50). Outlook · Notarisations year to date as at 18 September 2026 totalled €33.7m, with a further €21.3m required to reach the FY 2026target of at least €55m. · Reservations of 27 units (€7.1m) at 18 September 2026 provide visibility over further activity, although these remainsubject to notarisation and completion.· Third-quarter activity has been below the first-half run rate. Tranche 5 and a further release under consideration will increase properties available for sale in H2.· In the light of tightening financing and affordability conditions, vacant asking prices, already reduced on selectedapartments in July, were reviewed unit-by-unit and reset in September at an average of approximately 9% below previously approved prices.· Committed financing remains in place until 2030 and all banking covenants were met at 30 June 2026. Robert Hingley, Chairman of Phoenix Spree Deutschland, commented: "During the first half of 2026, PSD made further progress with its orderly realisation strategy. Condominium sales tracked the Company's plan through the first half and achieved pricing that continued to support carrying values. PSD's first compulsoryshare redemption, completed following the period end, marked an important milestone in returning realised proceeds toshareholders. Sales have been slower since the half year. In the light of tightening financing and affordability conditions, the Companyreduced prices on selected apartments in July and reviewed and reset every vacant asking price in September. Despite reduced liquidity, Berlin condominium prices have held up. We remain committed to maximising value for shareholders, butour intention is to complete this programme expeditiously, not to prolong it." Half-year report and accounts The full half-year report and accounts will shortly be available on the Company's website and will be submitted to theNational Storage Mechanism in the required format. For further information, please contact: Organisation Contact Telephone Phoenix Spree Deutschland Limited Stuart Young +44 (0)20 3937 8760 Deutsche Bank AG (Corporate Broker) Hugh Jonathan +44 (0)20 7260 1263 Teneo (Financial PR) Robert Yates +44 (0)20 7645 3591 CHAIRMAN'S STATEMENT Progress during the period The first half of 2026 marked a further stage in the Company's Portfolio realisation programme. Sales activity increasedmaterially compared with the prior year, with notarisations progressing in line with the Board's plan during the period and achieved pricing that continues to support the balance sheet carrying values of the properties sold. Delivering shareholder value The Board's objective remains to maximise aggregate net proceeds for shareholders through a disciplined and orderlyrealisation of the Portfolio. The first compulsory share redemption, completed following the period end, marked the first return of realised proceeds toshareholders under the current programme. Future redemptions will continue to be assessed in light of completed sales, realised net proceeds, available cash, liquidity requirements, covenant headroom, statutory solvency requirements andBoard approval. Financial flexibility The Company's financing position remains strong. With committed financing in place until 2030 and continued compliancewith all banking covenants, sales decisions continue to be driven by achievable pricing, market conditions and the long-term interests of shareholders. Responsible business The Company's corporate responsibility framework, Better Futures, continues to guide how it engages with tenants,communities and other stakeholders during the realisation programme. Tenant communication remains a particular focus forproperties earmarked for future condominium sales, including clear and timely engagement with affected tenants and the continued application of statutory first purchase rights. Outlook
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The Board's priorities remain unchanged: maintaining price discipline, controlling costs as the Portfolio reduces in size,preserving balance sheet strength and returning surplus capital to shareholders as expeditiously as practicable. Administrative expenses fell by almost half in the first half, and further savings are targeted before the year end. Salesactivity has been slower since the half year. The Board reduced prices on selected vacant apartments in July and, astightening financing and affordability conditions persisted, reviewed and reset vacant asking prices more broadly in September. The full year 2026 target of at least €55m of notarisations remains the Board's objective, although achievement nowdepends on the rate at which current reservations and repriced apartments are notarised in the final quarter. Robert Hingley Chairman PORTFOLIO REALISATION STRATEGY AND EXECUTION The Company's managed Portfolio realisation strategy is designed to realise embedded condominium value throughindividual unit sales, which, on average, are valued at approximately 33% above the same apartments held on a bulk PRS basis. The programme balances pricing, liquidity, tenant protections and execution risk. Table: Portfolio realisation strategy at a glance Strategic pillar Approach H1 2026 execution Release inventory Legally split properties aretransferred into the Condominium Sales Pool in tranches. Tranche 5 added in H1 2026,increasing the available inventory base; further release underconsideration before year end. Capture individual-unit value Vacant and occupied units are sold individually, with vacant unitstypically commanding higherpricing. 93 units notarised for €28.1m, with achieved pricing above assetcarrying values overall. Convert notarisations into cash Completion follows notarisation,registration in the Grundbuch (theGerman land register) and release of lender security. €24.8m of completed proceedsreceived during H1 2026. Return surplus capital Compulsory share redemptions atNAV-referenced pricing, subject tocovenants, solvency requirements and Board approval. First compulsory shareredemption of £17.5mcompleted, with payment made on 14 July 2026. Balance-sheet discipline Committed long-dated financingin place until 2030; covenant headroom maintained. Net LTV 39.6%; cash balances€36.2m at 30 June 2026 (before the return of capital toshareholders on 14 July 2026). The programme is supported by an established operating platform covering sales execution, legal preparation, tenantengagement and condominium governance. This platform enables the Company to release legally prepared inventory in phases while maintaining price discipline and managing buyer demand, financing conditions, regulation and unit mix. Pricing dynamics Every category of condominium sale achieved a substantial premium to the PRS valuation benchmark in H1 2026, rangingfrom 33.8% for occupied units to 49.7% for vacant units. Vacant units achieve the highest pricing, reflecting broader buyer demand and the absence of tenancy constraints. Occupied units are sold to tenants or third-party investors at pricing thatreflects statutory protections and the limitations associated with tenanted apartments. The table below compares achievedpricing with the JLL PRS Portfolio valuation benchmark as at 30 June 2026. Table: Pricing achieved relative to PRS valuation benchmarks (H1 2026) Category Average pricing (€/sqm)1 Premium / (disc.) to PRS valuation (%)2 Vacant condominiums (H1 2026 notarisations) €4,705 49.7% Occupied condominiums - tenant purchasers (H1 2026) €4,322 37.6% Occupied condominiums - investor purchasers (H1 2026) €4,205 33.8% JLL PRS Portfolio valuation (30 June 2026) €3,142 - 1 Gross sale prices before tax and excluding broker fees. 2 Premiums are shown relative to the JLL PRS Portfolio valuation as at 30 June 2026. Tenant framework and vacancy Execution is governed by German tenancy law, including rights of first refusal and security of tenure. The Company cannotrequire tenants to vacate and relies on natural turnover, historically c.8-10% per annum. These constraints are incorporatedinto sales planning. Condominium Sales Pool During H1 2026, Tranche 5 added eight properties, comprising 227 units and 14,983 sqm, to the Condominium Sales Pool. At30 June 2026, the available Sales Pool therefore comprised 47 properties, 1,010 units and 72,266 sqm. The substantialmajority of the Portfolio identified for individual condominium sale has now been introduced into the Sales Pool. The Company is evaluating a further tranche of 5 properties, comprising 167 units and 10,837 sqm, for potential inclusion.Candidate assets are being assessed for their legal, technical and operational sale-readiness, as well as expected buyer demand and achievable pricing. No final decision has been taken on the composition or timing of the tranche. Subject to
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satisfactory asset preparation and supportive market conditions, its inclusion would further extend the inventory availablefor individual condominium sales into 2027. Table: Condominium Sales Pool by tranche and launch profile Tranche Added to sales pool Units (30 June 2026) Sqm (30 June 2026) Properties (30 June 2026) Units at launch Sqm at launch Properties at launch1 Tranche 1 On market 2024 75 6,951 5 104 8,988 6 Tranche 2 December 2024 192 15,037 10 258 19,711 10 Tranche 3 June 2025 240 16,826 12 282 19,549 12 Tranche 4 Q4 2025 276 18,469 12 294 19,760 12 Tranche 5 H1 2026 227 14,983 8 227 14,983 8 Total 2024 - H1 2026 1,010 72,266 47 1,165 82,991 48 Figures are based on legal completion / transfer of title unless otherwise stated. Inclusion within a tranche reflects readiness for sale and does not imply a fixed execution timetable. 1 The reduction in property count since launch, from 48 to 47, reflects one property in Tranche 1 in which all units have been soldand which the Company therefore no longer owns. Sales pipeline at 30 June 2026 At 30 June 2026, 60 units notarised for an aggregate price of €18.2m had not yet completed, of which €16.4m was notarisedduring H1 2026 and €1.8m in prior periods. These are expected to contribute to H2 completions, subject to customarystatutory and financing processes. Reservations at 18 September 2026 of 27 units and €7.1m provide additional visibility over potential activity, although they remain subject to notarisation and completion. H1 2026 condominium sales achieved H1 2026 notarisations totalled 93 units for an aggregate price of €28.1m, representing slightly over half of the FY 2026 targetof at least €55m. H1 pricing remained supportive of carrying values, with the 2.2% overall premium to asset carry providing transactionevidence for the valuations underpinning NAV. Absolute pricing per sqm is not comparable between periods: vacant units achieved €4,705 per sqm in H1 2026 against€5,040 in H1 2025, reflecting the individual characteristics and micro-location of the properties from which units were sold in each period, rather than any change in market pricing. Performance against the valuation of the specific properties sold - a14.7% premium to latest balance sheet carrying values for vacant units and 2.2% in aggregate - is a more meaningfulcomparison. Sales activity since the period end and pricing action Third-quarter notarisations were below the first-half run rate. Cumulative notarisations for the year to 18 September 2026were €33.7m, against a first-half monthly average of €4.7m, leaving approximately €21.3m to be notarised in the balance ofthe year. The Company responded to slower summer demand with two pricing actions. Prices were reduced on a limited number of vacant apartments in July 2026 and, in September, the Board completed a unit-by-unit review of the vacant pool. Financing and affordability conditions tightened further during the third quarter. The European Central Bank raised its deposit facility rate by 25 basis points to 2.50% on 10 September 2026, following a sustained rise in the yield on the 10-yearGerman Federal bond, which has increased by approximately 120 basis points since the start of 2025. German consumerprice inflation was 2.9% in August 2026, with energy prices 10.5% higher year-on-year. Together, these reduce the amount anowner-occupier can borrow at a given monthly cost and lengthen decision periods, particularly for buyers who also face refurbishment costs. Notary and buyer availability is also lower in July and August. These conditions affect the Berlin marketas a whole rather than the Company's stock in particular. The September review followed the Company's own analysis of marketing periods and conversion, and direct engagementwith shareholders over the summer on the pace of vacant sales and the cost of carrying unsold apartments. It examinedeach apartment against its condition, comparable evidence, agent feedback, expected time to sale and the cost of continued holding. The July reductions were targeted at individual apartments; the September review covered the actively marketedvacant pool as a whole. Revised prices took effect from the week commencing 14 September 2026, at an average reduction of approximately 9%against previously approved prices, and within the pricing authority already delegated to the Property Advisor, whichremains unchanged. Apartments requiring works, a change of agent or further review were held outside the revised schedule. Revised prices average approximately €4,480 per sqm, above the €4,181 per sqm at which the Condominium Sales Portfolio was valued at 30 June 2026 and approximately 43% above the €3,142 per sqm PRS valuation benchmark. Berlin remainsstructurally undersupplied, with JLL recording 11,027 apartment completions in 2025, 28.2% below the prior year, againstcontinued population growth. The 60 units notarised for €18.2m and not completed at 30 June 2026, together with 27 reservations outstanding at 18September 2026, provide visibility over second-half activity, in each case subject to notarisation and completion. Viewings, offers, reservations and notarisations are monitored weekly. Sales mix The Company has sold condominiums since 2016, albeit on a smaller scale than under the current realisation programme,and vacant units have historically accounted for the majority of those notarisations. The Board targets a vacant share of 40- 50% of sales volumes over the sell-down as a whole, balancing realised pricing against the time value of proceeds.
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The vacant share fell to 33.6% in FY 2025 (41 of 122 units) as the programme-wide offering to existing tenants pulledoccupied sales forward. It rose to 36.6% in H1 2026 (34 of 93 units) as those priority windows began to expire, partially offset by new tenant demand from Tranche 5. At 30 June 2026, 154 vacant units were available for sale, representing 15.2% of theCondominium Sales Pool. The table below summarises notarisations by quarter from Q1 2026, together with the partial quarter to 18 September 2026,outstanding reservations and year-to-date sales activity by category, in each case showing achieved pricing against the latestvaluation of the properties sold. Table: 2026 condominium sales performance Category Units Sales value (€m) Average pricing (€/sqm) Premium / (disc.) to asset carry1 Vacant - Q1 2026 17 5.7 4,332 13.8% Vacant - Q2 2026 17 5.8 5,142 15.5% Vacant - H1 2026 total 34 11.4 4,705 14.7% Vacant - Q3 to 18 Sept 2026 12 3.3 4,309 16.3% Vacant - 2026 to date 46 14.7 4,610 15.0% Occupied - Q1 2026 27 7.1 4,223 -4.1% Occupied - Q2 2026 34 10.2 4,290 -5.3% Occupied - H1 2026 total 61 17.2 4,264 -4.8% Occupied - Q3 to 18 Sept 2026 8 2.3 3,513 -17.1% Occupied - 2026 to date 67 19.0 4,158 -6.5% Total notarisations - H1 2026 93 28.1 4,433 2.2% Total - Q3 to 18 Sept 2026 20 5.6 3,945 -0.1% Total notarisations - 2026 to date 113 33.7 4,344 1.9% Reservations2 - as at 18 Sept 2026 27 7.1 3,826 -8.3% Total incl. reservations - 2026 to date 140 40.9 4,243 -0.1% 1 Asset carry value is the most recent JLL valuation of the specific properties from which the units notarised during the period were sold. 2 Reservations are stated as at 18 September 2026 and remain subject to notarisation and completion. Sales velocity Sales velocity is monitored using the Average Annualised Sales Rate ("AASR"), defined below. AASR moderated during H12026 and should be interpreted alongside sales mix, programme stage and transaction timing, including seasonal effects. The movement in H1 reflected both the larger inventory base created by tranche additions and the evolving mix between vacantand occupied sales. Table: Sales velocity and absorption (AASR) Period Opening units Notarisations New units added Closing units Average annualised sales rate (%)1 Q1 2025 104 23 258 339 42.1% Q2 2025 339 28 0 311 38.3% Q3 2025 311 37 282 556 36.8% Q4 2025 556 34 294 816 32.5% Q1 2026 816 42 0 774 27.4% Q2 2026 774 51 0 723 29.8% Q3 to date 723 20 227 930 27.1% 1 AASR is calculated as notarisations annualised as a percentage of average available marketed inventory, with inventory added during a period weightedfrom the date of release. It is a monitoring measure, not a target, and is affected by tranche additions, tenant processes, sales mix and timing. The AASR table deducts units on notarisation, whereas the Condominium Sales Pool retains them until completion. The Q2 2026 closing balance of 950 unitsreconciles to the 1,010-unit Sales Pool by adding back the 60 units notarised but not completed at 30 June 2026. Converting notarised sales into cash Completed sales generated €24.8m of gross proceeds in H1 2026, close to three times the €8.7m received in H1 2025.Notarisation is the measure of contracted sales activity; cash is generated on completion. Payment follows statutory and contractual steps, including Grundbuch registration, municipal waiver of pre-emption rights, expiry of any tenant right of firstrefusal and release of lender security. Funds were received on average approximately three months after notarisation. Cash available for potential distribution therefore lags notarisations and is stated after transaction costs, apportionments,cash taxes, mandatory loan repayment and amounts retained for liquidity, working capital and programme costs. Aftermandatory debt repayment, the Group retained €8.6m of net cash in H1 2026, against an outflow of €16.8m in H1 2025. Table: From notarisations to cash available for potential distribution Metric (€m unless stated) Six months to 30 June2026 Six months to 30 June2025 Year to 31 December2025 Sales notarised in the period 28.1 14.6 35.9 Add: prior-period notarisations completed in the period 13.0 1.5 1.5 Less: sales notarised in the period but not completed at period end (16.4) (7.4) (14.8) Gross proceeds from sales completed in the period 24.8 8.7 22.6 Less: transaction costs, apportionments and cash taxes (2.5) (1.7) (4.7)
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Net sale proceeds received 22.2 7.0 17.9 Less: mandatory debt repayment on release of lender security (13.6) (23.8) (35.6) Net cash retained by the Group 8.6 (16.8) (17.7) Notarisations are legally committed sales, not cash receipts: cash arrives on completion, sometimes from sales notarised in earlier periods. Cash available for distribution is stated after transaction costs, cash taxes, mandatory debt repayment and amounts retained for liquidity, working capital and programmecosts. Returns require Board approval, may be funded from Group cash and are not a fixed share of period notarisations. Sterling is translated at £/€ 0.8615at 30 June 2026; the £17.5m paid on 14 July 2026 was made under the Company's first compulsory share redemption. Notarised sales have converted into completions in all but an immaterial proportion of cases. Purchaser financing, landregistry timetables and the satisfaction of statutory conditions can delay or, occasionally, prevent completion after notarisation. The proportion failing to complete has to date been de minimis by value. The Board nonetheless does not treatnotarised value as equivalent to secured cash when assessing capacity for further redemptions. Compulsory share redemption framework In April 2026, the Company announced its first compulsory share redemption, returning £17.5 million to shareholders through the redemption of approximately 7.44% of shares at £2.56 per share, the IFRS NAV per share at 31 December 2025.The redemption completed in accordance with its timetable, with a record date and effective date of 30 June 2026, an ex-entitlement date of 1 July 2026 and payment made on 14 July 2026. The redemption was effected pro rata in accordance with the Company's Articles and applicable statutory requirements, withno action required from shareholders. Future redemptions are not automatic; they will depend on completed sales, availablecash, liquidity requirements, covenant headroom, statutory solvency requirements and Board approval. Redemption amounts are therefore expected to vary between periods and should not be interpreted as a fixed, progressiveor formulaic distribution policy. The Board nonetheless intends to keep the return of surplus capital under review at each reporting date, and to return cash that is not required for liquidity, working capital, covenant headroom or programme costs. PORTFOLIO VALUATION Valuation context and market dynamics Condominium values rose 1.1% on a like-for-like basis during H1 2026, with total Portfolio values broadly stable and theBerlin residential market continuing to stabilise. The divergence between condominium and PRS assets remained thedefining valuation trend: condominium values continued to be supported by achieved individual unit pricing, while PRS valuations remained more sensitive to institutional demand, financing conditions and the regulatory environment. As at 30 June 2026, the Portfolio was valued at €518.5m, equivalent to €3,670 per sqm. On a like-for-like basis, value per sqm was 0.3% lower than at 31 December 2025, as a 1.1% increase in condominium values was offset by weaker PRS valuation.Total Portfolio value reflects valuation changes, disposals and mix, so it can fall as assets are sold even where the retainedPortfolio is stable or increasing on a like-for-like basis. Table: JLL valuation summary by Portfolio segment (30 June 2026) Metric (€m unless stated) Total Portfolio 30 June 2026 Total Portfolio 31 December 20251 Condominium Sales Portfolio 30 June 2026 Condominium Sales Portfolio 31 December 20251 PRS Portfolio 30 June 2026 PRS Portfolio 31 December 20251 Properties 73 73 47 40 26 33 Total units 2,003 2,082 1,010 892 993 1,190 Total sqm ('000) 141.1 146.5 72.3 64.7 68.9 81.9 Valuation (€m) 518.5 540.1 302.1 271.0 216.4 269.1 Value per sqm (€) 3,670 3,686 4,181 4,191 3,142 3,288 LFL growth per sqm2 (0.3)% 1.5% 1.1% 3.1% (1.2)% 0.8% 1 Prior-period figures are taken from the Company's 31 December 2025 Portfolio valuation update. 2 Like-for-like movements exclude the impact of disposals and of transfers between the PRS Portfolio and the Condominium Sales Portfolio, where applicable. The valuation evidence continues to show a clear distinction between the Condominium Sales Portfolio and the PRS Portfolio. The Condominium Sales Portfolio was valued at €4,181 per sqm at 30 June 2026, compared with €3,142 per sqmfor the PRS Portfolio, and increased by 1.1% on a like-for-like basis during the period, while PRS values declined by 1.2%,reflecting continued sensitivity to institutional demand, financing conditions and regulation. This differential of approximately 33% is the value the realisation programme is designed to capture: units held and valued on a bulk PRS basisare worth materially more when legally split and sold individually, and average H1 sales prices of €4,433 per sqm were 41%above the PRS valuation benchmark. H1 2026 FINANCIAL RESULTS Overview The first half produced €28.1m of notarised condominium sales and €24.8m of completed proceeds, alongside a €16.8mreduction in net borrowings and the first compulsory share redemption in July returned £17.5m to shareholders. IFRS NAV per share was €2.89 at 30 June 2026 and net LTV 39.6%. As the realisation programme advances, reported earnings willreflect disposal activity, valuation movements and balance sheet management more than rental income. Realised proceeds,NAV, leverage and capital returned to shareholders are the principal measures against which the Board assesses progress. Table: Key financial metrics Metric (€m unless stated) Six months to 30 June 2026 Six months to 30 June 2025 Year to 31 December 2025
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Gross rental income 10.3 11.0 22.7 Property expenses (6.9) (7.3) (15.3) Administrative expenses (1.2) (2.2) (3.3) Investment property fair value gain / (loss) (0.2) (0.7) (2.3) Gain / (loss) on disposals (1.1) (0.9) (2.9) Operating profit / (loss) 0.8 (0.2) (1.1) Reported EPS (€) (0.04) (0.07) (0.07) Investment property value 518.5 548.7 540.1 Net debt3 205.2 224.7 222.0 Net LTV (%)3 39.6 41.0 41.0 IFRS NAV per share (€) 2.89 2.93 2.94 IFRS NAV per share (£)2 2.49 2.50 2.56 EPRA NTA per share (€)1 3.36 3.49 3.40 EPRA NTA per share (£)1, 2 2.89 2.98 2.97 1 EPRA metrics are defined and calculated in the notes to the interim financial statements. 2 Sterling per-share figures are calculated using the GBP/EUR exchange rate as at the relevant reporting date. 3 Net debt and Net LTV use nominal loan balances, which exclude capitalised finance arrangement fees. Financial summary The Company moved to an operating profit of €0.8m in H1 2026 (H1 2025: €0.2m loss) and the loss before tax narrowed to€4.1m (H1 2025: €7.0m). Reported EPS improved to €(0.04) (H1 2025: €(0.07)). The result includes an investment property fair value loss of €0.2m (H1 2025: €0.7m loss) as well as the costs of supporting the realisation programme. Proceeds fromcompleted sales were €1.0m above book value; however, disposal costs, mainly sales agents' commission, were €2.1m,resulting in an overall loss on disposals of €1.1m (H1 2025: €0.9m loss). NAV, NTA and net proceeds IFRS NAV is stated after recognised disposal-related costs, financing effects and taxes, which makes it the more meaningfulmeasure of the value available to shareholders as the sell-down progresses. Further such items will crystallise as salescomplete. EPRA NTA provides a standardised measure of underlying asset value for comparability with listed real estate peers, most ofwhich operate steady-state investment models rather than pursuing a managed realisation strategy. As the sell-down advances, IFRS NAV and EPRA NTA are expected to converge as assets are disposed of, costs and taxes arecrystallised, and the balance sheet simplifies. Apartments notarised in the first half were agreed 2.2% above the latest balance sheet carrying values of the properties concerned, supporting the valuations that underpin both measures. IFRS NAV per share movement The following bridge reconciles the movement in IFRS NAV per share over the period, from €2.94 at 31 December 2025 to€2.89 at 30 June 2026. It separates recurring operating performance from valuation movements, realised disposal outcomes, tax effects and the impact of the first compulsory redemption. Investment property valuation movements were effectivelyneutral over the period. Table: IFRS NAV per share bridge (31 December 2025 to 30 June 2026) Component € per share1 IFRS NAV per share at 31 December 2025 2.94 Recurring net result for the period (0.03) Investment property valuation movement (0.00) Net gain / (loss) on disposals (0.01) Movement in deferred and current tax 0.01 Impact of first compulsory redemption (0.01) Other movements 0.00 IFRS NAV per share at 30 June 20262 2.89 1 Presented in euro. Sterling per-share equivalents are set out in the key financial metrics and KPI tables. 2 Components are rounded and may not sum precisely to the closing figure. Rental income Table: Rental income and service charge Metric Six months to 30 June 2026 (€m) Six months to 30 June 2025 (€m) Year to 31 December 2025 (€m) Rental income (net cold rent) 8.1 8.7 16.8 Service charge income2 2.2 2.3 5.9 Gross rental income1 10.3 11.0 22.7 1 Gross rental income comprises net cold rent and service charge income. 2 Service charge income represents recoveries from tenants of statutory servicecosts advanced by the Company and settled through the annual reconciliation. Gross rental income for H1 2026 was €10.3m, compared with €11.0m in H1 2025. The reduction is a direct consequence of the realisation programme: the Company has fewer income-producing units as apartments are sold, together withapartments held vacant to support refurbishment, compliance works, sale sequencing and, where possible, vacantpossession, which typically achieves higher sale prices.
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For units disposed of during H1 2026, gross sales proceeds represented approximately 29.5 times the associated annual netrental income, illustrating the capital realisation value achievable through individual unit sales. Service charge income for the period was €2.2m (H1 2025: €2.3m) and represents recoveries from tenants of statutoryservice costs advanced by the Company and settled through the annual reconciliation. These recoveries are largely neutral in economic terms, with the net position mainly reflecting non-recoverable costs on vacant apartments. Annualised rental income and vacancy On an annualised basis, contracted net rental income at 30 June 2026 was €15.8m, compared with €16.8m at 31 December2025 (30 June 2025: €17.6m). This is a point-in-time measure of the contracted rental base after completed sales and apartments held vacant ahead of sale. The reduction reflects the pace of disposals rather than any weakening in rents, whichgrew 0.7% on a like-for-like basis. Table: Annualised rental income and vacancy Metric 30 June 2026 30 June 2025 31 December 2025 Total sqm ('000) 141.1 150.2 146.5 Annualised net rental income (€m)1 15.8 17.6 16.8 Net cold rent per sqm (€) 10.7 10.8 10.8 Like-for-like rent per sqm growth (%) 0.7 1.3 0.8 Vacancy (%) 13.2 9.9 11.8 EPRA vacancy (%)2 3.6 2.1 4.1 1 Annualised net rental income represents contracted net cold rent at the relevant reporting date. 2 EPRA vacancy is calculated in accordance with EPRA reporting principles and excludes certain categories including units undergoing works or held for sale where applicable. Rental reversion and Mietspiegel support Market rents remain approximately 34.2% above passing rents on new lettings, and like-for-like rents grew 0.7% during theperiod. In-place rents averaged €10.7 per sqm (31 December 2025: €10.8; 30 June 2025: €10.8). Re-letting activity is limited as the Company balances rental income against the value of retaining vacant units forcondominium sales. Reported rental growth therefore reflects re-letting premiums on retained units and implementation of the Berlin Mietspiegel (the city's official reference-rent index) within a contracting income-producing base. The Berlin Mietspiegel, updated in May 2026, revises the reference rent framework. Based on internal analysis, the Mietspiegel indicates potential low single-digit uplifts to average in-place rents on a like-for-like Berlin Portfolio basis. Thisshould be regarded as an indication rather than a forecast. Realisation will depend on tenant eligibility, individual leasecharacteristics and statutory constraints, including the Kappungsgrenze, which limits the pace at which rents can be increased for existing tenancies over a defined multi-year period. Vacancy Reported vacancy includes all non-income-producing units at the period end and should therefore be considered in thecontext of the sales programme. At 30 June 2026, actual vacancy was 13.2% (31 December 2025: 11.8%; 30 June 2025: 9.9%). A significant proportion relatesto units intentionally held vacant to support condominium sales, where vacant possession typically enables higher realised values than tenanted sales. The number of unsold vacant apartments increased during the period as marketing timeslengthened, and reducing that stock is a priority for the remainder of the year. EPRA vacancy was 3.6% (31 December 2025: 4.1%; 30 June 2025: 2.1%). Cost overview Total property-level and administrative costs fell 14% to €8.2m in H1 2026 (H1 2025: €9.5m; FY 2025: €18.7m), withadministrative expenses 48% lower at €1.2m. Capital expenditure was also 54% lower than in H1 2025, at €2.5m. Thereduction reflects the completion of much of the front-loaded programme preparation, together with tighter control of advisory, legal and professional spend as the Portfolio contracts. Fees payable to the Property Advisor fell 14% to €1.8m (H12025: €2.1m). The Board is actively focused on cost reduction, and not only on the savings that arise as a direct result of the Portfoliocontracting. Property-level expenses Property-level expenses were €6.9m in H1 2026 (H1 2025: €7.3m). The H1 2026 table retains the FY 2025 expense categories to support comparability. The Company is in negotiation with its external property manager, Core Immobilien, over the feescharged in respect of the Condominium Sales Portfolio. Subject to contract, reduced fees would take effect from 1 January2027 and would lower property management expenses from that date. Savings will not be linear, because WEG contributions (payments made by apartment owners to the relevant Wohnungseigentümergemeinschaft (WEG), or condominium owners'association, to fund shared building costs, reserves and other common-area obligations), repairs, maintenance andtransaction-related costs continue during the sell-down. WEG contributions are expected to reduce with the Company's ownership share in each property and cease on full exit. Table: Property level expense composition Metric Six months to 30 June 2026 (€'000) Six months to 30 June 2025 (€'000) Year to 31 December 2025 (€'000) Direct property expenses (excl. WEG) 2,381 3,253 6,552 WEG contributions 1,261 331 1,064 Repairs and maintenance 736 778 1,411 Property Advisor fee 1,821 2,127 4,276
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Property management expenses 557 553 1,043 Other property operating expenses 154 303 1,001 Total property expenses 6,910 7,345 15,348 Direct property expenses, excluding WEG, fell to €2.4m from €3.3m, while WEG contributions rose to €1.3m from €0.3m asfurther properties were legally split and brought into WEG administration. Consistent with the FY 2025 results, these movements between categories reflect ownership structure, WEG formation, execution activity and classification rather thanchanges in the underlying economic cost base. Administrative expenses Administrative expenses were €1.2m in H1 2026, 43% below the prior period (H1 2025: €2.2m; FY 2025: €3.3m). The largest movement was in legal and professional fees, at €0.6m against €1.2m. A review of recurring costs is under way, coveringsecretarial, administration and accounting support, advisory retainers and reporting requirements, external audit and otherassurance work. Where these are no longer proportionate to a company in managed realisation, the Board will seek to reduce or remove them. The realisation programme will continue to require governance, reporting, legal and professional support, albeit at a lower level. The table below summarises administrative expenses by principal category, consistent with the FY 2025 disclosures. Table: Administrative expenses Metric Six months to 30 June 2026 (€'000) Six months to 30 June 2025 (€'000) Year to 31 December 2025 (€'000) Secretarial and administration fees 460 517 760 Legal and professional fees 567 1,163 1,926 Directors' fees 136 136 256 Bank charges 27 6 33 (Loss)/ profit on foreign exchange 32 (8) (9) Depreciation 15 13 30 Impairment Charge - trade receivables 34 160 121 Other administrative expenses (10) 264 292 Other income (18) (85) (91) Total administrative expenses1 1,243 2,166 3,318 1 Administrative expenses are presented consistently with the categories used in the FY 2025 results and include recurring listed-company costs and period-specific advisory, governance and transaction-related activity. Capital expenditure Capital expenditure fell 54% to €2.5m in H1 2026 (H1 2025: €5.4m; FY 2025: €12.6m). Spend related entirely to property- specific preparation for individual condominium sales, including technical works, legal structuring, compliance requirementsand project management. With the front-loaded preparation phase largely complete, capital expenditure is expected toremain well below the 2025 level, with further reductions expected in 2027 as the Portfolio contracts and the remaining programme becomes more targeted. Table: Capital expenditure by category Metric Six months to 30 June 2026 (€m) Six months to 30 June 2025 (€m) Year to 31 December 2025 (€m) Like-for-like Portfolio1 2.5 4.5 11.4 Development / held-for-sale 0 0.7 0.4 Other 0 0.2 0.8 Total capital expenditure2 2.5 5.4 12.6 1 Like-for-like Portfolio capital expenditure relates to capitalised investment in properties held throughout the period, excluding disposals and routine maintenance. 2 Capital expenditure reconciles to the Investment Property note and includes capitalised preparation works for the condominium sales programme where applicable. Financing, liquidity and leverage Net borrowings reduced by €16.8m during the period to €205.2m, and net LTV fell to 39.6% at 30 June 2026 from 41.0% at31 December 2025. Gross borrowings were €241.4m and cash balances €36.2m (31 December 2025: €34.0m). All debtcovenants were met throughout the period. The November 2025 refinancing provides long-dated, interest-only financing aligned with the expected duration of therealisation programme. It addressed the Q4 2026 maturities and extended average remaining duration from 1.2 years at 30 June 2025 to 4.9 years at 31 December 2025 and 4.4 years at 30 June 2026, leaving no refinancing requirement before 2030. The financing structure supports the realisation programme, while maintaining liquidity and covenant headroom. Disposal proceeds will be allocated in accordance with the Board's capital allocation framework, with the timing and quantum of anydebt reduction or further redemptions dependent on completed sales and available cash. Table: Borrowings and gearing Metric 30 June 2026 30 June 2025 31 December 2025 Gross borrowings (€m) 241.4 245.8 256.0 Cash balances (€m) 36.2 21.1 34.0
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Net borrowings (€m) 205.2 224.7 222.0 Net LTV (%)1 39.6 41.0 41.0 Average remaining duration (years)2 4.4 1.2 4.9 1 Net LTV uses nominal loan balances, which exclude capitalised finance arrangement fees. 2 Average remaining duration represents the weighted averagematurity of drawn borrowings. Tax and net proceeds Tax outcomes remain sensitive to the timing, structure and sequencing of disposals. As the Portfolio is realised, cash tax charges and deferred tax estimates will affect net proceeds available for debt reduction, liquidity requirements andshareholder returns. The deferred tax liability is reassessed at each reporting date against the expected disposal timetableand applicable tax rates. The Group has accumulated German tax losses that may be available to offset future taxable profits, including profits arisingon the realisation of the Portfolio, subject to sufficient taxable profits and applicable restrictions under German tax law. The Board keeps the recoverability and utilisation of these tax attributes under review when assessing expected net proceeds. KEY PERFORMANCE INDICATORS KPIs applied for H1 2026 The Company continues to apply the KPI framework introduced for the year ended 31 December 2025. The framework isdesigned to monitor performance across three core objectives: · preserving underlying Portfolio value;· executing the Portfolio realisation programme; and· converting realised proceeds into shareholder returns. KPI definitions were unchanged during the period, so all measures remain directly comparable with those reported for FY2025. Table: Key performance indicators KPI 30 June 2026 30 June 2025 31 December 2025 LFL portfolio valuation growth (%)1 (0.3) 0.6 1.5 IFRS NAV per share (€ / £) €2.89 / £2.49 €2.93 / £2.50 €2.94 / £2.56 Share price discount to IFRS NAV per share (%)2 35.3 34.0 28.6 Condominium notarisations (€m) 28.1 14.6 35.9 Condominium sales velocity - AASR for the final quarter of the period (%) 29.8 38.3 32.5 Net loan-to-value (%)3 39.6 41.0 41.0 Cumulative cash returned to shareholders (£m)4 17.5 - - 1 Like-for-like (LFL) Portfolio valuation growth measures the movement in valuation per sqm for properties held throughout the period, excluding disposals and transfers between the PRS and Condominium Sales Portfolios. 2 Share price discount uses the sterling share price and IFRS NAV per share at the reporting date, converted at the period-end GBP/EUR rate. 3 Net loan-to-value uses nominal loan balances, which exclude capitalised finance arrangement fees. 4 Cumulative cash returned is stated in sterling, the redemption currency. The first redemption was effective 30 June 2026, paid 14 July 2026. Performance overview The H1 2026 KPI outcomes show progress against the Company's realisation framework. Condominium notarisations nearlydoubled year on year to €28.1m, Portfolio values were broadly stable on a like-for-like basis, net loan-to-value fell to 39.6% from 41.0% and the first compulsory share redemption returned £17.5m to shareholders. The Board will continue to assessprogress by reference to achieved pricing, realised net proceeds, balance sheet strength and capital returned toshareholders. OUTLOOK The Company enters the second half of 2026 with an expanded Condominium Sales Pool and an established operatingplatform to support continued execution of the Portfolio realisation programme. Condominium sales and pricing The Condominium Sales Pool is larger entering the second half following the addition of Tranche 5, and a further tranche is under consideration before the year end. Further releases replace stock as it is sold and broaden the choice available tobuyers; they will be phased so that they support the rate of sale rather than dilute it. Buyer demand is expected to remainsensitive to financing costs and household budgets following the September increase in ECB policy rates. The Board expects values to remain supported by structural undersupply in Berlin and sees the constraint on sales as one of market liquidityrather than of underlying value. The Board acted on pricing twice during the third quarter, most recently with a unit-by-unit reset of vacant asking prices inSeptember. The revised prices, which average approximately €4,480 per sqm, remain above the 30 June 2026 averagecarrying value of the Condominium Sales Portfolio. The reset is expected to shorten marketing periods and increase conversion during the fourth quarter. Viewings, offers, reservations and notarisations are monitored weekly. The Company continues to target €55 million of condominium notarisations for FY 2026. Achievement depends on the rate at which the repriced apartments convert during the fourth quarter and on the timing of completions, and the run raterequired for the remainder of the year is materially above that achieved in the third quarter.
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PRS Portfolio The approach to the remaining PRS Portfolio will continue to be assessed in light of market conditions, institutional demand, financing considerations and the Board's objective of maximising aggregate net proceeds for shareholders. Costs Costs are expected to fall further in the second half. The review of recurring costs is due to conclude before the year end, andthe Board expects it to deliver recurring savings. Administrative expenses were already 43% lower year-on-year in the first half compared with H1 2025. Conclusion While wider economic and geopolitical uncertainty persists, the Board believes the Company is well positioned to continueexecuting the realisation programme and to complete it as promptly as the overriding objective of maximising shareholder returns allows. STATEMENT OF DIRECTORS' RESPONSIBILITIES The important events that have occurred during the period under review, the key factors influencing the condensedconsolidated financial statements and the principal factors that could impact the remaining six months of the financial yearare set out in the Chairman's Statement, the Portfolio Realisation Strategy and Execution section, the Portfolio Valuation section and the H1 2026 Financial Results section of this announcement. The principal risks and uncertainties facing the Group are substantially unchanged since the date of the Annual Report and Accounts for the year ended 31 December 2025 and continue to be as set out in that report. As at 30 June 2026, theseinclude but are not limited to: inability to sell condominiums (volumes, pricing and timing); inability to sell PRS buildings(volumes, pricing and liquidity); financing and interest rate risk; German regulatory risk; tenant affordability and rental challenges; IT and cyber security risk; reliance on third party service providers; and environmental and climate risk. Sales activity since the period end has increased the execution and timing risk associated with the realisation programme, in particular the risk that the rate of condominium notarisations does not recover sufficiently in the fourth quarter for theCompany to meet its FY 2026 target, and the risk that achieving target volumes requires further pricing action. Each of the Directors confirms that, to the best of his or her knowledge: · The condensed set of financial statements contained within the half-yearly financial report has been prepared inaccordance with UK-adopted International Accounting Standard 34, Interim Financial Reporting, and gives a true and fair view of the assets, liabilities, financial position and profit of the Group;· The half-yearly financial report includes a fair review of the information required by the FCA's Disclosure Guidance andTransparency Rule 4.2.7R, being disclosure of the important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements, together with a description of the principalrisks and uncertainties for the remaining six months of the year; and· The half-yearly financial report includes a fair review of the information required by Disclosure Guidance and Transparency Rule 4.2.8R, being disclosure of related party transactions that have taken place during the first six months of thefinancial year, how they have materially affected the financial position of the Company during the period and anychanges therein. The Directors are responsible for the maintenance and integrity of the corporate and financial information included on theCompany's website. Legislation in Jersey governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. The half-yearly financial report was approved by the Board on 25 September 2026 and the above responsibility statement was signed on its behalf by: Robert Hingley Chairman 25 September 2026 Condensed Consolidated Statement of ComprehensiveIncome For the period from 1 January 2026 to 30 June 2026 Six months ended Six months ended Year ended Notes 30 June 2026 30 June 2025 31 December 2025 (unaudited) (unaudited) (audited)
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€'000 €'000 €'000 Continuing operations Revenue 10,256 11,003 22,689 Property expenses 5 (6,910) (7,345) (15,348) Gross profit 3,346 3,658 7,341 Administrative expenses 6 (1,243) (2,166) (3,318) Loss on disposal of investment property (including investment propertyheld for sale) 7 (1,074) (941) (2,882) Investment property fair valueloss 10 (235) (704) (2,256) Operating profit / (loss) 794 (153) (1,115) Finance income (before (loss) /gain on derivatives) 8 136 2,919 4,508 Finance costs (before (loss) /gain on derivatives) 8 (5,651) (7,838) (14,862) (Loss) / gain on derivatives 8 633 (1,928) (2,116) Loss before taxation (4,088) (7,000) (13,585) Income tax credit 9 496 190 7,131 Loss after taxation (3,592) (6,810) (6,454) Other comprehensive income - - - Total comprehensive loss forthe period (3,592) (6,810) (6,454) Total comprehensive incomeattributable to: Owners of the parent (3,441) (6,802) (6,416) Non-controlling interests (151) (8) (38) (3,592) (6,810) (6,454) Earnings per share attributable to the owners of theparent: From continuing operations Basic (€) 20 (0.04) (0.07) (0.07) Diluted (€) 20 (0.04) (0.07) (0.07)
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Condensed Consolidated Statement of FinancialPosition At 30 June 2026 As at As at As at Notes 30 June 2026 30 June 2025 31 December 2025 (unaudited) (unaudited) (audited) €'000 €'000 €'000 ASSETS
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Non-current assets Investment properties 12 463,548 498,479 485,090 Property, plant andequipment 95 13 101 Other financial assets atamortised cost 14 840 816 828 Derivative financialinstruments 18 4,564 2,093 3,931 469,047 501,401 489,950 Current assets Trade and other receivables 15 12,423 10,345 7,598 Cash and cash equivalents 36,244 21,095 33,959 48,667 31,440 41,557 Investment properties - heldfor sale 13 55,000 50,220 55,000 Total assets 572,714 583,061 586,507 EQUITY AND LIABILITIES Current liabilities Borrowings 16 9,551 423 302 Trade and other payables 17 21,289 13,341 16,322 Share redemption moniespayable 20,306 - - Current tax 9 1,469 900 120 52,615 14,664 16,744 Non-current liabilities Borrowings 16 228,829 244,168 252,298 Deferred tax liability 9 44,086 53,503 46,383 272,915 297,671 298,681 Total liabilities 325,530 312,335 315,425 Equity Stated capital 19 138,824 196,578 196,578 Treasury shares - (37,448) (37,448) Retained earnings 107,185 110,240 110,626 Equity attributable to ownersof the parent 246,009 269,370 269,756 Non-controlling interest 1,175 1,356 1,326 Total equity 247,184 270,726 271,082 Total equity and liabilities 572,714 583,061 586,507
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Condensed Consolidated Statement of Changes inEquity For the period from 1 January 2026 to 30 June 2026 Attributable to the owners of the parent Statedcapital TreasuryShares Retainedearnings Total Non-controllinginterest Total equity €'000 €'000 €'000 €'000 €'000 €'000 Balance at 1 January 2025(audited) 196,578 (37,448) 117,042 276,172 1,364 277,536 Loss for the period - - (6,802) (6,802) (8) (6,810) Other comprehensive income - - - - - - Total comprehensive income forthe period - - (6,802) (6,802) (8) (6,810) Balance at 30 June 2025(unaudited) 196,578 (37,448) 110,240 269,370 1,356 270,726 Profit for the period - - 386 386 (30) 356 Other comprehensive income - - - - - - Total comprehensive income forthe period - - 386 386 (30) 356 Balance at 31 December 2025(audited) 196,578 (37,448) 110,626 269,756 1,326 271,082 Comprehensive income: Loss for the period - - (3,441) (3,441) (151) (3,592) Other comprehensive income - - - - - - Total comprehensive income forthe period - - (3,441) (3,441) (151) (3,592) Transactions with owners - recognised directly in equity: Cancellation of treasury shares (37,448) 37,448 - - - -Redemption of ordinary shares (20,306) - - (20,306) - (20,306) Balance at 30 June 2026(unaudited) 138,824 - 107,185 246,009 1,175 247,184 Treasury shares comprise the accumulated cost of shares acquired on-market.
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Condensed Consolidated Statement of Cash Flows For the period from 1 January 2026 to 30 June 2026 Notes Six months ended Six months ended Year ended 30 June 2026 30 June 2025 31 December 2025 (unaudited) (unaudited) (audited) €'000 €'000 €'000 Loss before taxation (4,088) (7,000) (13,585) Adjustments for: Finance income (136) (2,919) (4,508) Net finance charge (before loss /(gain) on derivatives) 8 5,651 7,838 14,862 Loss / (gain) on derivatives 8 (633) 1,928 2,116 Loss on disposal of investmentproperty 7 1,074 941 2,882 Investment property revaluationloss 10 235 704 2,256 Depreciation 15 13 30 Operating cash flows before movements in workingcapital 2,118 1,505 4,053 Increase in receivables (4,591) (1,661) (118) Increase in payables 1,042 1,173 1,263 Cash generated from / (used in) operating activities (1,431) 1,017 5,198 Income tax paid (452) (862) (1,821) Net cash generated from / (used in) operatingactivities (1,883) 155 3,377 Cash flow from investingactivities Proceeds on disposal of investment property (net ofdisposal costs) 19,026 7,470 20,575 Proceeds on disposal received in advance 7,391 510 3,467 Interest received 123 134 180 Capital expenditure oninvestment property 12 (2,494) (5,369) (12,218) (Acquisition) / disposals of property, plant and equipment (9) (16) (122) Net cash generated from investingactivities 24,037 2,729 11,882 Cash flow from financingactivities Interest paid on bank loans (6,299) (6,000) (10,375) Interest received on interestrate swaps 1 2,797 4,328 Termination payments receivedon swaps - - 1,497 Interest paid on interest rateswaps - (1,327) (2,222) Premium paid on interest ratecap - - (3,523) Loan arrangement fees paid - - (1,415) Repayment of bank loans (13,571) (23,779) (35,649) Drawdown on bank loanfacilities - - 19,539 Net cash (used in) financingactivities (19,869) (28,309) (27,820) Net increase in cash andcash equivalents 2,285 (25,425) (12,561) Cash and cash equivalents at beginning ofperiod/year 33,959 46,520 46,520 Exchange gains on cash andcash equivalents - - - Cash and cash equivalents at end of period/year 36,244 21,095 33,959 Reconciliation of Net Cash Flow to Movement in Debt For the period from 1 January 2026 to 30 June 2026 Six months ended Six months ended Year ended 30 June 2026 30 June 2025 31 December 2025 €'000 €'000 €'000 Cashflow from decrease in debtfinancing (13,571) (23,779) (16,110) Loan arrangement fees paid - - (1,415) Change in net debt resultingfrom cash flows (13,571) (23,779) (17,525) Non-cash changes fromdecrease in debt financing (649) 510 2,265 Movement in debt in theperiod/year (14,220) (23,269) (15,260) Debt at the start of theperiod/year 252,600 267,860 267,860 Debt at the end of theperiod/year 16 238,380 244,591 252,600
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Notes to the Condensed Consolidated FinancialStatements For the period from 1 January 2026 to 30 June 2026 1. General information The Group consists of a Parent Company, Phoenix Spree Deutschland Limited ('the Company'), incorporated in Jersey, Channel Islands and all its subsidiaries ('the Group') which areincorporated and domiciled in and operate out of Jersey and Germany. Phoenix Spree Deutschland Limited is listed under the Closed-ended investment funds category of the LondonStock Exchange. The Group invests in residential and commercial property in Germany. The registered office is at IFC 5, St Helier, Jersey, JE1 1ST, Channel Islands. 2. Basis of preparation The interim set of condensed consolidated financial statements has been prepared in accordance with the Disclosure and Transparency Rules of the Financial Conduct Authority and withIAS 34 Interim Financial Reporting as adopted by the European Union and the United Kingdom. The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements, and should be read in conjunctionwith the Group's annual financial statements for the year ended 31 December 2025. As required by the Disclosure and Transparency Rules of the Financial Conduct Authority, the financial statements have been prepared applying the accounting policies and presentationthat were applied in the preparation of the Company's published consolidated financial statements for the year ended 31 December 2025. The comparative figures for the financial year ended 31 December 2025 are extracted from but do not comprise, the Group's annual consolidated financial statements for that financialyear. The results presented in this report are unaudited and they have been prepared in accordance with the recognition and measurement principles of UK-adopted International AccountingStandards that are expected to be applicable to the next set of financial statements and on the basis of the accounting policies to be used in those financial statements. The interim condensed consolidated financial statements do not include all of the information required for full annual financial statements and accordingly, whilst the interim condensedconsolidated financial statements have been prepared in accordance with the recognition and measurement principles of the UK-adopted International Accounting Standards, it cannot beconstrued as being in full compliance with the UK-adopted International Accounting Standards. The financial information contained in this announcement does not constitute statutoryaccounts as defined by the Companies (Jersey) Law 1991. The interim condensed consolidated financial statements have not been audited or reviewed in accordance with International Standard on Review Engagements (UK) 2410. Theconsolidated financial statements for the year ended 31 December 2025 is based on the statutory accounts for the year ended 31 December 2025. The auditor reported on those accountswhich were not qualified. The interim condensed consolidated financial statements have been prepared on the basis of accounting policies applicable to a going concern. This basis presumes that funds will beavailable to finance future operations and that the realisation of assets and settlement of liabilities, will occur in the ordinary course of business. The interim condensed consolidated financial statements were authorised and approved for issue on 25 September 2026. 2.1 Going concern The interim condensed consolidated financial statements have been prepared on a going concern basis which assumes the Group will be able to meet its liabilities as they fall due for theforeseeable future. The Directors have prepared forecasts for the Company in light of the continuing global inflationary pressures and rising interest rates, the conclusion of which was thatthere were no concerns. These condensed consolidated financial statements have therefore been prepared on a going concern basis. 2.2 New standards andinterpretations There are currently no new standards, amendments or interpretations effective for annual periods beginning on or after 1 January 2026 that are required to be adopted by the Group. 3. Critical accounting estimates and judgements The preparation of condensed consolidated financial statements in conformity with IFRS requires the Group to make certain critical accounting estimates and judgements. In the process ofapplying the Group's accounting policies, management has decided the following estimates and assumptions have a significant risk of causing a material adjustment to the carryingamounts of assets and liabilities within the financial period; i) Estimate of fair value of investment properties The valuation of the Group's property portfolio is inherently subjective due to, among other factors, the individual nature of each property, its location and condition, and expected futurerentals. The valuation as at 30 June 2026, which has been used to prepare these financial statements is based on the rules, regulations and market as at that date. The fair valueestimates of investments properties are detailed in note 12. The best evidence of fair value is current prices in an active market of investment properties with similar leases and other contracts. In the absence of such information, the Groupdetermines the amount within a range of reasonable fair value estimates. In making its estimate, the Group considers information from a variety of sources, including: a) Discounted cash flow projections based on reliable estimates of future cash flows, derived from the terms of any existing lease and other contracts, and (where possible) from externalevidence such as current market rents for similar properties in the same location and condition, and using discount rates that reflect current market assessments of the uncertainty in theamount and timing of the cash flows. b) Current prices in an active market for properties of different nature, condition or location (or subject to different lease or other contracts), adjusted to reflect those differences. c) Recent prices of similar properties in less active markets, with adjustments to reflect any changes in economic conditions since the date of the transactions that occurred at those prices. The Directors remain ultimately responsible for ensuring that the valuers are adequately qualified, competent and base their results on reasonable and realistic assumptions. The Directorshave appointed Jones Lang LaSalle GmbH ('JLL') as the real estate valuation experts who determine the fair value of investment properties using recognised valuation techniques and theprinciples of IFRS 13. Further information on the valuation process can be found in note 12. For further information with regard to the movement in the fair value of the Group's investment properties, refer to the management report on pages 6 to 7. ii) Judgment in relation to the recognition of assets held for sale Management has made an assumption in respect of the likelihood of investment properties - held for sale, being sold within 12 months, in accordance with the requirement of IFRS 5.Management considers that based on historical and current experience that it is highly probable that the properties will be sold within 12 months. Investment properties held for sale are all expected to be sold within 12 months of the reporting date based on management knowledge of current and historic market conditions. Whilewhole properties have been valued under a condominium scenario in note 12, only units expected to be sold have been transferred to assets held for sale. Notes to the Condensed Consolidated FinancialStatements For the period from 1 January 2026 to 30 June 2026 3. Critical accounting estimates and judgements (continued) iii) Judgement in relation to disposal activity Investment property included within disposal activity are presented in accordance with IAS 40. The Group applies judgement in determining whether investment properties undergoingdevelopment prior to disposal should continue to be classified as investment property or be reclassified as inventory. In making this judgement, management considered: the Group's primary business model of long‐term rental ownership;
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the absence of an intention to acquire properties for development and resale; the extended holding periods prior to disposal; the selective nature of disposals as part of a capital recycling strategy to release value and return capital to investors; and the limited, non‐substantive nature of refurbishment works undertaken prior to sale Management concluded that these activities do not constitute development for sale in the ordinary course of business, and that the properties continue to meet the definition of investmentproperty under IAS 40. Where investment property included within the disposal activity meet the definition as held for sale they are presented in accordance with IFRS 5. iv) Estimate of fair value of derivative financial instruments The valuation of the Group's derivative financial instruments are inherently linked to changes in EURIBOR rates. The estimation of fair value of such instruments is complex and requiressignificant assumptions to be made. Valuations are based upon commercially reasonable industry and market practices for valuing similar financial instruments. Certain inputs to the credit valuation models may be based onassumptions and best estimates that are not readily observable in the marketplace. In the calculation of the fair value of the derivative financial instruments, certain valuations may be provided by third parties. The information provided is based on prevailing market dataand derived from models based on well recognized financial principles and reasonable estimates about relevant future market conditions at the time of the report being developed. v) Estimate of deferred tax liability on revaluation of properties The deferred tax liability arising on the revaluation of investment properties represents a significant accounting estimate, as it depends on assumptions regarding both future tax rates andthe timing of property disposals. Deferred tax is measured by applying the German corporation tax rates expected to be in effect at the time the related temporary differences are anticipated to reverse, including thesolidarity surcharge. Under legislation enacted in Germany, the corporation tax base rate is scheduled to reduce from 15% to 10% between 2028 and 2032, in decrements of 1% perannum. Including the solidarity surcharge, the effective corporation tax rate applicable to expected disposal gains consequently ranges from approximately 15.8% for disposals anticipatedin 2026 and 2027 to approximately 12.7% for disposals expected from 2030 onwards. At 30 June 2026, the deferred tax liability reflects these enacted rates applied to the Group's expected disposal timetable under its current realisation strategy. This results in a blendedeffective tax rate of approximately 15.6% being applied to the revaluation surplus. The deferred tax liability is inherently sensitive to assumptions regarding the timing of disposals. Properties sold earlier in the realisation programme will crystallise tax at higher rates,whereas properties disposed of later will benefit from the scheduled reductions in corporation tax rates. Accordingly, the deferred tax liability represents the Group's current best estimatebased on the expected sequencing and timing of disposals, rather than a fixed or certain obligation. The estimate is reviewed at each reporting date and revised where necessary to reflectchanges in tax legislation, market conditions or the Group's realisation strategy. 4. Segmental information The Group has identified two operating segments based on the nature of activities and the information reviewed by the Chief Operating Decision Maker ("CODM"). These compriseinvestment property held for rental income and property disposal activity undertaken as part of the Group's capital recycling strategy. During 2025, a strategy was implemented to maximise value through a managed, multi-year realisation process, but with full flexibility as to whether assets are ultimately sold as individualunits, disposed of in bulk, or retained for rental over the medium term. Noting there is no requirement or commitment to sell specific assets within a defined timeframe. This activity ismonitored separately by management given its differing risk and return profile, and as this activity has become material to the Group's financial performance it is therefore reported as aseparate operating segment classified as Investment property - Disposals. In prior periods, property disposals were not managed as a distinct business activity and discrete financial information in respect of such activities was not regularly reviewed by the Group'schief operating decision maker. Accordingly, comparative segment information has not been restated. The Group does not operate a property development business. Development work is carried out to ensure assets are maintained in a condition where they can be retained and continue togenerate rental income, or sold, if and when market conditions are attractive. There is no substantial transformation of the assets, no structural redevelopment, and no change in theunderlying use of the properties. The assets continue to be operated as income-generating private rented sector units throughout. The Group expects capital recycling activity to increase in future periods. The classification of such properties will continue to be assessed based on the Group's business model andintended use of the assets. The Group's principal reportable segments under IFRS 8 were as follows: Reportable segment Operations Investment property - RentalThe Investment property - Rental segment comprises properties held and operated for medium‐term rental purposes. These assets generaterecurring rental income and are held for capital appreciation. Individual disposal of units within these properties is not legally or technicallypossible, and the portfolio within this segment is managed exclusively as medium‐term rental.Investment property - DisposalsThe Investment property - Disposals segment comprises properties that are also held for long‐term rental income and capital appreciation, butwhere individual unit disposal is legally and technically possible. These properties are managed under a flexible, multi‐year value realisationstrategy, which allows the Group to optimise returns over time. Central administrative costs and financing activities are managed on a group-wide basis and are not allocated to operating segments. These costs are reported as Unallocated costs. For the period from 1 January 2026 to 30 June 2026 Rental Disposals Unallocated costs Total €'000 €'000 €'000 €'000 Revenue 4,546 5,710 - 10,256 Property expenses (3,313) (3,597) - (6,910) Administrative expenses - - (1,243) (1,243) Loss on disposal of investmentproperties (including investmentproperty held for sale) - (1,074) - (1,074) Investment property revaluation(loss) / gain (550) 315 - (235) Finance income (before (loss) /gain on derivatives) - - 136 136 Finance costs (before (loss) /gain on derivatives) - - (5,651) (5,651) Gain / (loss) on derivatives - - 633 633 Income tax (expense) / credit - - 496 496 683 1,354 (5,629) (3,592) Notes to the Condensed Consolidated FinancialStatements For the period from 1 January 2026 to 30 June 2026 4. Segmental information (continued) For the year ended 31 December 2025 Rental Disposals Unallocated costs Total €'000 €'000 €'000 €'000 Revenue 12,825 9,864 - 22,689 Property expenses (9,563) (5,785) - (15,348) Administrative expenses - - (3,318) (3,318) Loss on disposal of investmentproperties (including investmentproperty held for sale) - (2,882) - (2,882) Investment property revaluation(loss) / gain (3,416) 1,160 - (2,256) Finance income (before (loss) /gain on derivatives) - - 4,508 4,508 Finance costs (before (loss) /gain on derivatives) - - (14,862) (14,862) Gain / (loss) on derivatives - - (2,116) (2,116) Income tax (expense) / credit - - 7,131 7,131 (154) 2,357 (8,657) (6,454) In accordance with IFRS 8, the Group discloses segment assets and liabilities only where such information is regularly provided to the CODM. The CODM does not receive separatebalance sheet information for each segment; only the allocation of properties between the Rental and Disposal segments is reported. As a result, segment assets and segment liabilitiesare not disclosed. Segment assets are measured consistently with the financial statements. Condominiums in privatisation are reported within the Disposal segment. All other investment properties arereported within the Rental segment.
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For the period from 1 January 2026 to 30 June 2026 Rental Disposals Unallocated costs Total €'000 €'000 €'000 €'000 Investment properties 216,430 247,118 - 463,548 Property, plant and equipment - - 95 95 Other financial assets atamortised cost - - 840 840 Derivative financial instruments - - 4,564 4,564 Trade and other receivables - - 12,423 12,423 Cash and cash equivalents - - 36,244 36,244 Investment properties - held forsale - 55,000 - 55,000 216,430 302,118 54,166 572,714 For the year ended 31 December 2025 Rental Disposals Unallocated costs Total €'000 €'000 €'000 €'000 Investment properties 269,120 215,970 - 485,090 Property, plant and equipment - - 101 101 Other financial assets atamortised cost - - 828 828 Derivative financial instruments - - 3,931 3,931 Trade and other receivables - - 7,598 7,598 Cash and cash equivalents - - 33,959 33,959 Investment properties - held forsale - 55,000 - 55,000 269,120 270,970 46,417 586,507 5. Property expenses 30 June 2026 30 June 2025 31 December 2025 (unaudited) (unaudited) (audited) €'000 €'000 €'000 Property managementexpenses 557 553 1,043 Repairs and maintenance 736 778 1,411 Direct property expenses 3,642 3,584 7,617 Property Advisors' fees andexpenses 1,821 2,127 4,276 Other property operatingexpenses 154 303 1,001 6,910 7,345 15,348 6. Administrative expenses 30 June 2026 30 June 2025 31 December 2025 (unaudited) (unaudited) (audited) €'000 €'000 €'000 Secretarial & administrationfees 460 517 760 Legal & professional fees 567 1,163 1,926 Directors' fees 136 136 256 Bank charges 27 6 33 Loss / (profit) on foreignexchange 32 (8) (9) Depreciation 15 13 30 Impairment charge - tradereceivables 34 160 121 Other administrative expenses (10) 264 292 Other income (18) (85) (91) 1,243 2,166 3,318 Notes to the Condensed Consolidated FinancialStatements For the period from 1 January 2026 to 30 June 2026 7. Gain / (loss) on disposal of investment property (including investment property held for sale) Notes 30 June 2026 30 June 2025 31 December 2025 (unaudited) (unaudited) (audited) €'000 €'000 €'000 Disposal proceeds 24,815 8,704 22,656 Book value of disposals 12 (23,801) (8,786) (22,692) Disposal costs (2,088) (859) (2,846) (1,074) (941) (2,882) Where there has been a partial disposal of a property, the net book value of the asset sold is calculated on a per square metre rate, based on the December valuation. 8. Net finance income /(charge) 30 June 2026 30 June 2025 31 December 2025 (unaudited) (unaudited) (audited) €'000 €'000 €'000 Interest income 135 122 180 Interest income on derivatives 1 2,797 4,328 Finance income 136 2,919 4,508 Interest expense on swaps - (1,327) (2,222) Interest expense on bankborrowings (5,651) (6,511) (12,640) Finance cost (5,651) (7,838) (14,862) Fair value loss on interest rateswap - (1,928) (2,524) Fair value gain on interest rate cap 633 - 408 (4,882) (6,847) (12,470) 9. Income tax (credit) /expense 30 June 2026 30 June 2025 31 December 2025 (unaudited) (unaudited) (audited) The tax (credit) / charge for theperiod is as follows: €'000 €'000 €'000 Current tax charge 1,801 173 352 Deferred tax credit - origination and reversal of temporary differences (2,297) (363) (7,483) (496) (190) (7,131)
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The tax charge for the year can be reconciled to the theoretical tax charge on the profit in the condensed consolidated statement of comprehensive income as follows: 30 June 2026 30 June 2025 31 December 2025 (unaudited) (unaudited) (audited) €'000 €'000 €'000 Loss before tax on continuing operations (4,088) (7,000) (13,585) Tax at German income tax rate of 15.8% (2025: 15.8%) (647) (1,108) (2,146) Income not taxable 170 149 455 Effect of changes in tax rates applied to deferred taxbalances - - (6,834) Tax effect of losses brought forward (19) 769 1,394 Total tax (credit) for the period /year (496) (190) (7,131) Reconciliation of current tax liabilities 30 June 2026 30 June 2025 31 December 2025 (unaudited) (unaudited) (audited) €'000 €'000 €'000 Balance at beginning of period/year 120 1,589 1,589 Tax paid (452) (862) (1,821) Current tax charge 1,801 173 352 Balance at end of period/year 1,469 900 120 Notes to the Condensed Consolidated FinancialStatements For the period from 1 January 2026 to 30 June 2026 9. Income tax (credit) / expense (continued) Reconciliation of deferred tax Capitalgains onproperties Derivatives Tax loss carry-forward Total (Liabilities) Liability Asset Net liabilities €'000 €'000 €'000 €'000 Balance at 1 January 2025 (58,461) (636) 5,231 (53,866) Charged to the statement ofcomprehensive income 58 305 - 363 Deferred tax liability at 30 June2025 (58,403) (331) 5,231 (53,503) Charged to the statement ofcomprehensive income 6,958 (291) 453 7,120 Deferred tax liability at 31December 2025 (51,445) (622) 5,684 (46,383) Charged to the statement ofcomprehensive income 2,321 (100) 76 2,297 Deferred tax liability at 30June 2026 (49,124) (722) 5,760 (44,086) 10. Investment property fair value (loss) / gain 30 June 2026 30 June 2025 31 December 2025 (unaudited) (unaudited) (audited) €'000 €'000 €'000 Investment property fair value loss (235) (704) (2,256) Further information on investment properties is shown in note 12. 11. Dividends 30 June 2026 30 June 2025 31 December 2025 (unaudited) (unaudited) (audited) €'000 €'000 €'000 Amounts recognised as distributions to equity holders in theperiod: No interim dividend was paid for the years ended 31 December 2025 and 31 December2024. - - -No final dividend was paid for the years ended 31 December 2025 and 31 December2024. - - - The Board are not proposing to declare a dividend for the first half of the year (six months to 30 June 2025: Nil cents, Nil pence). 12. Investment properties 30 June 2026 30 June 2025 31 December 2025 (unaudited) (unaudited) (audited) Fair value €'000 €'000 €'000 Balance at beginning ofperiod/year 540,090 552,820 552,820Capital expenditure 2,494 5,369 12,218Disposals (23,801) (8,786) (22,692)Fair value loss (235) (704) (2,256) Investment properties at fair value - as set out in the report by JLL 518,548 548,699 540,090Assets considered as "Held forsale" (Note 13) (55,000) (50,220) (55,000) Balance at end of period/year 463,548 498,479 485,090 The property portfolio was valued at 30 June 2026 by the Group's independent valuers, JLL, in accordance with the methodology described below. The valuations were performed inaccordance with the current Appraisal and Valuation Standards, 8th edition (the 'Red Book') published by the Royal Institution of Chartered Surveyors (RICS). The valuation of the property Portfolio is performed on a building-by-building basis and the source information on the properties including current rent levels, void rates and non-recoverablecosts was provided to JLL by the Property Advisors QSix Residential Limited. Assumptions with respect to rental growth, adjustments to non-recoverable costs and the future valuation of
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these are those of JLL. Such estimates are inherently subjective and actual values can only be determined in a sales transaction. JLL also uses data from comparable market transactionswhere these are available alongside their own assumptions. Having reviewed the JLL report, the Directors are of the opinion that this represents a fair and reasonable valuation of the properties and have consequently adopted this valuation in thepreparation of the condensed consolidated financial statements. The valuations have been prepared by JLL on a consistent basis at each reporting date and the methodology is consistent and in accordance with IFRS which requires that the 'highest andbest use' value is taken into account where that use is physically possible, legally permissible and financially feasible for the property concerned, and irrespective of the current or intendeduse. All properties are valued as Level 3 measurements under the fair value hierarchy (see note 22) as the inputs to the discounted cash flow methodology which have a significant effect on therecorded fair value are not observable. Additionally, JLL perform reference checks back to comparable market transactions to confirm the valuation model. The unrealised fair value gain or loss in respect of investment property is disclosed in the condensed consolidated statement of comprehensive income as 'Investment property fair valuegain or loss'. Valuations are undertaken using the discounted cash flow valuation technique as described below and with the inputs set out as follows: Notes to the Condensed Consolidated FinancialStatements For the period from 1 January 2026 to 30 June 2026 12. Investment properties(continued) Discounted cash flow methodology (DCF) The fair value of investment properties is determined using discounted cash flows. Under the DCF method, a property's fair value is estimated using explicit assumptions regarding the benefits and liabilities of ownership over the asset's life including an exit or terminalvalue. As an accepted method within the income approach to valuation the DCF method involves the projection of a series of cash flows on a real property interest. To this projected cashflow series, an appropriate, market-derived discount rate is applied to establish the present value of the income stream associated with the real property. The duration of the cash flow and the specific timing of inflows and outflows are determined by events such as rent reviews, lease renewal and related lease up periods, re-letting,redevelopment, or refurbishment. The appropriate duration is typically driven by market behaviour that is a characteristic of the class of real property. Periodic cash flow is typically estimated as gross income less vacancy, non-recoverable expenses, collection losses, lease incentives, maintenance cost, agent and commission costs andother operating and management expenses. The series of periodic net operating incomes, along with an estimate of the terminal value anticipated at the end of the projection period, isthen discounted. The Group categorises all investment properties in thefollowing three ways; Rental Scenario 'Rental Scenario' properties have been valued under the Discounted Cashflow Methodology and are included in the Investment properties line in the Non-current assets section of theCondensed Consolidated Statement of Financial Position. In general, the market participants are willing to pay higher prices for properties where physical and legal requirements arefulfilled and it is financially feasible to sell units individually. In these cases, the market values are still calculated on a rental basis but are adjusted to reflect the described potential increasein value. JLL calculates the market value of these assets in what is referred to as a 'Privatisation potential', which includes a deduction to the rental scenario discount rate for eachcompleted step met when transitioning from the Rental Scenario to the Condominium Scenario. Properties expected to be sold in the coming year from these assets are considered heldfor sale under IFRS 5 and can be seen in note 13. Condominium Scenario Included in this valuation scenario are properties that have the potential or the benefit of all relevant permissions required to sell apartments individually (condominiums), and have beenapproved for sale by the Board. Units expected to be sold in the coming year from these assets are considered held for sale under IFRS 5 and can be seen in note 13. The market value ofthe Privatisation potential of these assets is reported under this Condominium Scenario. Disposal Scenario Where properties have been notarised for sale prior to the reporting date, but have not completed; they are held at their notarised disposal value. These assets are considered held for saleunder IFRS 5 as set out in note 13. The table below sets out the assets valued using these 3scenarios: 30 June 2026 30 June 2025 31 December 2025 (unaudited) (unaudited) (audited) €'000 €'000 €'000 Rental scenario 216,430 276,322 269,120 Condominium scenario 281,704 272,377 256,075 Disposal scenario 20,414 - 14,895 Total 518,548 548,699 540,090 13. Investment properties -Held for sale 30 June 2026 30 June 2025 31 December 2025 (unaudited) (unaudited) (audited) €'000 €'000 €'000 Fair value - held for sale investment properties At beginning of period/year 55,000 35,918 35,918Transferred from investmentproperties 23,486 22,595 49,942 Transferred to investmentproperties - - (9,723) Capital expenditure - 653 395 Properties sold (23,801) (8,786) (22,692) Valuation (loss) / gain on assetsheld for sale 315 (160) 1,160 At end of period/year 55,000 50,220 55,000 Investment properties are re-classified as current assets and described as 'held for sale' in three different situations: properties notarised for sale at the reporting date, properties where atthe reporting date the Group has obtained and implemented all relevant permissions required to sell individual apartment units, and efforts are being made to dispose of the assets('condominium'); and properties which are being marketed for sale but have currently not been notarised. Properties notarised for sale by the reporting date are valued at their disposal price (disposal scenario), and other properties are valued using the condominium or rental scenarios (seenote 12) as appropriate. Investment properties held for sale are all expected to be sold within 12 months of the reporting date based on Management knowledge of current and historic market conditions.
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Notes to the Condensed Consolidated FinancialStatements For the period from 1 January 2026 to 30 June 2026 14. Other financial assets atamortised cost 30 June 2026 30 June 2025 31 December 2025 (unaudited) (unaudited) (audited) €'000 €'000 €'000 Non-current Balance at beginning ofperiod/year 828 828 828 Repayment of loan interest - (24) (24) Accrued interest 12 12 24 Balance at end of period/year 840 816 828 The Group entered into a loan agreement with the minority interest of Accentro Real Estate AG in relation to the acquisition of the assets as share deals. This loan bears interest at 3% perannum. These financial assets are considered to have low credit risk and any loss allowance would be immaterial. None of these financial assets were either past due or impaired. 15. Trade and otherreceivables 30 June 2026 30 June 2025 31 December 2025 (unaudited) (unaudited) (audited) €'000 €'000 €'000 Current Trade receivables 617 542 642 Service charges receivable 7,459 8,030 5,342 Less: impairment provision (299) (856) (265) Net receivables 7,777 7,716 5,719 Prepayments and accruedincome 828 845 309 Other receivables 3,818 1,784 1,570 12,423 10,345 7,598 16. Borrowings 30 June 2026 30 June 2025 31 December 2025 (unaudited) (unaudited) (audited) €'000 €'000 €'000 Current liabilities Bank loans - NATIXISPfandbriefbank AG* 9,551 120 302 Bank loans - Berliner Sparkasse - 303 - 9,551 423 302 Non-current liabilities Bank loans - NATIXISPfandbriefbank AG** 228,829 225,504 252,298 Bank loans - Berliner Sparkasse - 18,664 - 228,829 244,168 252,298 238,380 244,591 252,600 * Nominal value of the borrowings as at 30 June 2026 was €10,242,000 (31 December 2025: €992,000, 30 June 2025: €1,123,000). ** Nominal value of the borrowings as at 30 June 2026 was €231,187,000 (31 December 2025: €255,000,000, 30 June 2025: €225,705,000). For further information on borrowings, refer to the management report on page 10. 17. Trade and other payables 30 June 2026 30 June 2025 31 December 2025 (unaudited) (unaudited) (audited) €'000 €'000 €'000 Trade payables 2,746 2,563 4,800 Accrued liabilities 3,121 1,975 2,635 Service charges payable 8,031 8,229 5,420 Advanced payment received onaccount 7,391 574 3,467 21,289 13,341 16,322 Notes to the Condensed Consolidated FinancialStatements For the period from 1 January 2026 to 30 June 2026 18. Derivative financialinstruments 30 June 2026 30 June 2025 31 December 2025 (unaudited) (unaudited) (audited) €'000 €'000 €'000 Interest rate swaps - carried at fair value through profit or loss At beginning of period/year - 4,021 4,021 Fair value movement throughprofit or loss - (1,928) (2,524) Termination payments received - - (1,497)
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At end of period/year - 2,093 - The notional principal amounts of the outstanding interest rate swap contracts at 30 June 2026 were €Nil (December 2025: €Nil, June 2025: €219,000,000). 30 June 2026 30 June 2025 31 December 2025 (unaudited) (unaudited) (audited) €'000 €'000 €'000 Interest rate caps - carried at fair value through profit or loss At beginning of period/year 3,931 - - Premium paid - - 3,523 Fair value movement through profit or loss 633 - 408 At end of period/year 4,564 - 3,931 The notional principal amount of the outstanding interest rate cap contract at 30 June 2026 was €204,000,000 (December 2025: €204,000,000). The base rate of the contract is based on 3Months EURIBOR and interest is capped at 2%. The interest rate cap matures on 28 November 2030. 19. Stated capital 30 June 2026 30 June 2025 31 December 2025 (unaudited) (unaudited) (audited) €'000 €'000 €'000 Issued and fully paid: At reporting date 138,824 196,578 196,578 138,824 196,578 196,578 The number of shares in issue at 30 June 2026 was 84,991,571 (including Nil Treasury Shares), 31 December 2025: 100,751,410 (including 8,924,047 as Treasury Shares), 30 June 2025:100,751,410 (including 8,924,047 as Treasury Shares). During the period to 30 June 2026 the Company cancelled 8,924,047 treasury shares with a carrying amount of €37.5 million. The cancellation resulted in a reduction in share capital of€37.5 million and the elimination of the Treasury Share reserves. The transaction had no impact on Total equity. On 30 June 2026, 6,835,792 ordinary shares were compulsorily redeemed at a price of £2.56 per share. The redemption resulted in a reduction in issued share capital of £17.5 million(€20.3 million). Following the redemption of the ordinary shares and the cancellation of the Treasury shares, the number of ordinary shares in issue decreased from 100,751,410 to84,991,571. 20. Earnings per share 30 June 2026 30 June 2025 31 December 2025 (unaudited) (unaudited) (audited) Earnings for the purposes of basic earnings per share being net profit attributable toowners of the parent (€'000) (3,441) (6,802) (6,416)Weighted average number of ordinary shares for the purposes of basic earnings pershare (Number) 91,827,363 91,827,363 91,827,363 Effect of dilutive potential ordinary shares (Number) - - - Weighted average number of ordinary shares for the purposes of diluted earnings pershare (Number) 91,827,363 91,827,363 91,827,363 Earnings per share (€) (0.04) (0.07) (0.07)Diluted earnings per share (€) (0.04) (0.07) (0.07) 21. Net asset value per share and EPRA Net Tangible Assets (NTA) 30 June 2026 30 June 2025 31 December 2025 (unaudited) (unaudited) (audited) Net assets (€'000) 246,009 269,370 269,756 Number of participating ordinaryshares 84,991,571 91,827,363 91,827,363 Net asset value per share (€) 2.89 2.93 2.94 EPRA NTA 30 June 2026 30 June 2025 31 December 2025 (unaudited) (unaudited) (audited) Net assets (€'000) 246,009 269,370 269,756 Add back deferred tax assets and liabilities, derivative financial instruments and sharebased payment reserves (€'000) 39,522 51,410 42,452 EPRA NTA (€'000) 285,531 320,780 312,208 EPRA NTA per share (€) 3.36 3.49 3.40 Notes to the Condensed Consolidated FinancialStatements For the period from 1 January 2026 to 30 June 2026 22. Financial instruments The Group is exposed to the risks that arise from its use of financial instruments. This note describes the objectives, policies and processes of the Group for managing those risks and themethods used to measure them. Further quantitative information in respect of these risks is presented throughout the condensed consolidated financial statements. Principal financial instruments The principal financial instruments used by the Group, from which financial instrument risk arises, are as follows: • financial assets • cash and cash equivalents • trade and other receivables • trade and other payables • borrowings • derivative financial instruments The Group held the following financial assets at each reporting date: 30 June 2026 30 June 2025 31 December 2025 (unaudited) (unaudited) (audited) €'000 €'000 €'000 Held at amortised cost Trade and other receivables - current 11,595 9,500 7,289 Cash and cash equivalents 36,244 21,095 33,959 Other financial assets atamortised cost 840 816 828 48,679 31,411 42,076 Fair value through profit orloss Derivative financial assets 4,564 2,093 3,931 4,564 2,093 3,931 53,243 33,506 46,007 The Group held the following financial liabilities at each reporting date: 30 June 2026 30 June 2025 31 December 2025
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(unaudited) (unaudited) (audited) €'000 €'000 €'000 Held at amortised cost Borrowings payable: current 9,551 423 302 Borrowings payable: non-current 228,829 244,168 252,298 Share redemption monies payable 20,306 - - Trade and other payables 21,289 13,341 16,322 279,975 257,932 268,922 279,975 257,932 268,922 Fair value of financialinstruments The fair values of the financial assets and liabilities are not materially different to their carrying values due to the short term nature of the current assets and liabilities or due to thecommercial variable rates applied to the long term liabilities. The interest rate cap is expected to mature during November 2030. The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique: Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities; Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly; and Level 3: techniques which use inputs which have a significant effect on the recorded fair value that are not based on observable market data. During each of the reporting periods, there were no transfers between valuation levels. Group fair values 30 June 2026 30 June 2025 31 December 2025 (unaudited) (unaudited) (audited) €'000 €'000 €'000 Financial (liabilities) / assets Interest rate caps - Level 2 - current - - - Interest rate caps - Level 2 - non-current 4,564 - 3,931 4,564 - 3,931 The valuation basis for the investment properties is disclosed in note 12. Notes to the Condensed Consolidated FinancialStatements For the period from 1 January 2026 to 30 June 2026 23. Related partytransactions Related party transactions not disclosed elsewhere are as follows: QSix Residential Limited is the Group's appointed Property Advisor. No Directors of QSix Residential Limited currently sit on the Board of PSD, although its Principals retain a shareholdingin the Company. For the six month period ended 30 June 2026, an amount of €1,821,173 (December 2025: €4,275,890, June 2025: €2,126,671) was payable to QSix Residential Limited.At 30 June 2026 €1,031,822 (December 2025: €1,513,753, June 2025: €236,681) was outstanding. Apex Financial Services (Alternative Funds) Limited, the Company's administrator provided administration and company secretarial services to PSDL and its subsidiaries during 2025 and2026. For the six month period ended 30 June 2026, an amount of €353,813 (December 2025: €759,832, June 2025: €374,857) was payable to Apex Financial Services (AlternativeFunds) Limited. At 30 June 2026 €Nil (December 2025: €Nil, June 2025: €Nil) was outstanding. 24. Events after the reportingdate Between 1 July 2026 and 18 September 2026, the Group notarised 20 condominium units for aggregate proceeds of €5.6m, at an average of €3,945 per sqm. The Company's firstcompulsory redemption had a record date and effective date of 30 June 2026 and an ex-entitlement date of 1 July 2026. 6,835,792 redeemable ordinary shares were compulsorilyredeemed at £2.56 per share. The shares ceased to be classified as equity at the reporting date and the redemption consideration of £17.5m (€20.3m) is presented within redemptionmonies payable at 30 June 2026. Payment was made to shareholders on 14 July 2026 in accordance with the Articles. There have been no other events after the reporting date requiringadjustment to, or disclosure in, the condensed consolidated interim financial statements.
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Professional Advisors Property Advisor QSix Residential Limited 167 Wardour Street London W1F 8WR Administrator Apex Financial Services (Alternative Funds) Limited Company Secretary IFC 5 and Registered Office St Helier Jersey JE1 1ST Registrar MUFG Corporate Markets (Jersey) Limited IFC 5 St. Helier Jersey JE1 1ST Principal Banker Barclays Private Clients International Limited 13 Library Place St. Helier Jersey JE4 8NE UK Legal Advisor Stephenson Harwood LLP 1 Finsbury Circus London EC2M 7SH Jersey Legal Advisor Mourant 22 Grenville Street St. Helier Jersey JE4 8PX German Legal Advisor Mittelstein Rechtsanwälte as to property law Alsterarkaden 20 20354 Hamburg Germany German Legal Advisor Mittelstein Rechtsanwälteas to general matters Alsterarkaden 20 20354 Hamburg Germany German Legal Advisor as Taylor Wessing PartnerschaftsgesellschaftmbB to German partnership law Thurn-und-Taxis-Platz 660313 Frankfurta.M. Germany Sponsor and Broker Deutsche BankAG 21 Moorfields LondonEC2Y 9DB Independent Property Valuer Jones Lang LaSalle GmbH Rahel-Hirsch-Strasse 10 10557 Berlin Germany Auditor RSM UK AuditLLP25 FarringdonStreetLondon EC4A4AB
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