SIRIUS REAL ESTATE
LIMITED
(Incorporated in
Guernsey)
Company Number: 46442
JSE Share Code: SRE
LSE (GBP) Share Code: SRE
LEI: 213800NURUF5W8QSK566
ISIN Code: GG00B1W3VF54
7 October 2024
Sirius Real Estate
Limited
("Sirius Real Estate",
"Sirius", the "Group" or the "Company")
Trading Update for half year
ended 30 September 2024
5.5%* increase in Group
like-for-like rent roll
Sirius Real Estate, the leading
owner and operator of branded business and industrial parks
providing conventional space and flexible workspace in Germany and
the U.K., provides an update on trading for the six months ended 30
September 2024.
The Group has achieved a 14.9%*
year-on-year increase in rent roll, partly driven by the ongoing
successful asset acquisition programme. On a like-for-like
basis, rent roll increased by 5.5%*, reflecting our ability to
continue to drive organic growth across both Germany and the U.K.
The Group remains on track to deliver full year results in line
with expectations.
In Germany, which has marginally
outperformed the U.K., rent roll growth particularly benefited from
stronger rates, despite expected regular move-outs at the beginning
of the period which slowed growth in occupancy. We expect to see
occupancy strengthen in line with seasonal trends in the second
half of the Company's financial year. With inflation now back to
pre-Covid levels, we have again demonstrated the strength of our
in-house asset management platform by leveraging product mix and
occupancy carefully alongside rates to optimise yield and the best
overall returns from our space. We expect to see our property
values increase in Germany this year as the transactional market is
notably more active and confidence in the real estate sector
further improves.
In the U.K., like-for-like rates
continue to grow strongly, ahead of overall rent roll growth, but
similar to what we have seen in Germany, some seasonal move outs
have impacted occupancy. We expect to see valuations
stabilise, in contrast to recent periods, and believe the improving
transactional market will build further confidence. Overall, we
expect to announce a positive valuation movement at Group level at
the period end.
In July 2024, the Group successfully
completed an equity fundraising of €180 million (£152.5 million) to
provide funds to execute on a pipeline of attractive acquisition
opportunities, following the successful deployment of the proceeds
of our November 2023 fundraise. We are in exclusivity on
several promising asset acquisitions in both Germany and the U.K.
and we expect to notarise and/or complete on a number of those in
the coming months.
The Group's balance sheet remains
strong with free cash reserves of approximately €297 million as at
30 September 2024 and no significant debt maturities until
June 2026. The Group's weighted average cost of debt is 2.1%, with
a weighted average debt expiry of 3.5 years. This follows the
successful bond issuance in May 2024 of €59.9 million nominal value
notes which were consolidated and form a single series with the
€300 million 1.75% bonds due November 2028.
Commenting on trading during the period, Andrew Coombs, Chief
Executive Officer of Sirius Real Estate, said:
"During the first half of
our financial year we have continued to perform well, with our
asset management team once again driving like-for-like rent roll
growth well ahead of inflation. This organic growth alongside
the rental contribution from the well timed series of acquisitions
we have made in recent months combined to drive an almost 15%
increase in overall rent roll, underlining the continued demand for
space within our portfolio. Bolstered by our successful bond
issuance in May and equity raise in July, our balance sheet remains
strong and we are well placed to continue to act on opportunities
to make accretive acquisitions arising from the current market
conditions."
Half
Year Results
Sirius will announce results for the
six months ended 30 September 2024 on Monday, 18 November 2024, at
which time there will be an in-person presentation and a virtual
webinar for analysts and investors.
The financial information on which
this trading update is based has not been reviewed or reported on
by the Company´s external auditors or a reporting
accountant.
*Group rent
roll has been translated utilising a constant foreign currency
exchange rate of GBP:EUR 1.197, being the closing exchange rate as
at 30 September 2024.
For
further information:
Sirius Real Estate
Andrew Coombs, CEO / Chris Bowman,
CFO
+44 (0) 20 3059 0855
FTI
Consulting (Financial
PR)
Richard Sunderland / Ellie Sweeney /
James McEwan
+44 (0) 20 3727 1000
SiriusRealEstate@fticonsulting.com
NOTES TO EDITORS
About Sirius Real Estate
Sirius is a property company listed
on the main and premium market of the London Stock Exchange and the
main board of the JSE Limited. It is a leading owner and operator
of branded business and industrial parks providing conventional
space and flexible workspace in Germany and the U.K. As of 31 March
2024, the Group's portfolio comprised 142 assets let to 9,654
tenants with a total book value of over €2 billion, generating a
total annualised rent roll of €194.7 million. Sirius also holds a
35% stake in Titanium, its €350+ million German-focused joint
venture with clients of AXA IM Alts.
The Company's strategy centres on
acquiring business parks at attractive yields and integrating them
into its network of sites - both under the Sirius and BizSpace
names and alongside a range of branded products. The business then
seeks to reconfigure and upgrade existing and vacant space to
appeal to the local market via intensive asset management and
investment and may then choose to refinance or dispose of assets
selectively once they meet maturity, to release capital for new
investment. This active approach allows the Company to generate
attractive returns for shareholders through growing rental income,
improving cost recoveries and capital values, and enhancing returns
through securing efficient financing terms.
For more information, please
visit: www.sirius-real-estate.com
Follow us on LinkedIn
at https://www.linkedin.com/company/siriusrealestate/
Follow us on X (Twitter) at
@SiriusRE
JSE Sponsor
PSG Capital