TIDMSRE
RNS Number : 0475P
Sirius Real Estate Limited
09 October 2023
SIRIUS REAL ESTATE LIMITED
(Incorporated in Guernsey)
Company Number: 46442
JSE Share Code: SRE
LSE (GBP) Share Code: SRE
LEI: 213800NURUF5W8QSK566
ISIN Code: GG00B1W3VF54
9 October 2023
Sirius Real Estate Limited
("Sirius Real Estate", "Sirius", the "Group" or the
"Company")
Trading Update for the six months ended 30 September 2023
7.7%* increase in like for like rent roll and trading in line
with expectations
Sirius Real Estate, the leading owner and operator of branded
business and industrial parks providing conventional space and
flexible workspace in Germany and the UK, provides an update on
trading for the six months ended 30 September 2023.
Against a backdrop of negative headlines referencing challenging
economic conditions in both Germany and the UK, the Group is
pleased to report continued strong trading in line with
expectations, with like-for-like rent roll growth compared to the
prior year of 7.7%*.
In Germany, occupancy remains stable and we continue to achieve
rental rate growth ahead of inflation as we utilise our proprietary
asset management platform to maximise the value of our space. The
sale of Kassel at above book value, which we announced on 3 October
2023, together with strong trading across the German portfolio,
underpins our expectation that valuations for the period end will
again outrun any negative yield expansion.
In the UK we continue to focus on driving value from BizSpace.
Rent roll growth is ahead of our German operations reflecting the
ongoing demand for our affordable, well located space and the
higher inflationary backdrop in the UK. Occupancy in the UK was
higher than six months prior and it is particularly pleasing to
report UK rent roll has exceeded GBP50 million for the first time,
buoyed by a record new business sales month in September.
The Group's balance sheet remains robust with cash reserves of
EUR112 million of which EUR88 million is unrestricted. During the
period the Group re-financed its Deutsche Pfandbriefbank (PBB) loan
facility, seven months in advance of it falling due on 31 December
2023. The new facility, amounting to EUR58.3 million, has a term of
seven years at a fixed interest rate of 4.25%. The Group further
paid down its expiring Schuldschein debt of EUR20 million in the
period. From the commencement of the new PBB facility at the end of
December 2023, the Group will have a weighted average cost of debt
of 2.1% and a weighted average debt expiry of 4.2 years.
The Group remains active on acquisitions and disposals, with two
UK acquisitions in the period running at a 9.6% net initial yield
("NIY") (total acquisition costs) and a disposal in Germany at a
6.0% NIY. Our disposals strategy remains opportunistic and focused
on non-core or mature assets with little upside, where we have
continued to achieve returns in excess of book value. We remain
disciplined in our approach to acquisitions and continue to see a
healthy pipeline of potential opportunities across Germany and the
UK.
During the period we were pleased to welcome Chris Bowman to the
Group as CFO. Following a handover period Chris has assumed all CFO
responsibilities from Alistair Marks, who had been acting as
interim CFO.
Alistair Marks, who stepped down from the Sirius board in July
2023, will be leaving the Group at the end of March 2024 having
been with Sirius since inception in 2007, becoming CFO in 2012,
following internalisation and more recently as CIO. Alistair's
contribution to the Group has been absolutely invaluable, helping
to ensure the Group emerged from the global financial crisis and
then prospered in the years following, growing from a small AIM
company into the FTSE250 company it is today. Succession plans are
well advanced through internal promotion to ensure Alistair's CIO
responsibilities are seamlessly taken forward. The management team
wishes Alistair and his family well in their new life abroad.
Commenting on trading during the period, Andrew Coombs, Chief
Executive Officer of Sirius Real Estate, said:
"I firstly want to thank Alistair Marks for his contribution to
the success of Sirius. Alistair and I have worked together for the
last 13 years and I would like to recognise Alistair's contribution
to so much of what we have achieved as a management team over the
last decade. I'm also pleased to say the success of Sirius has
allowed us to attract the talent required to continue the Group's
growth and I look ahead with confidence. Our performance in the
first half, trading in line with expectations against the backdrop
of challenging conditions in both our markets, demonstrates the
strength of the Sirius platform and our people."
Full Year Results
Sirius will announce results for the six months ended 30
September 2023 on Monday, 20 November 2023, at which time there
will be an in-person presentation and 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 1.1566, being the closing
exchange rate as at 30 September 2023.
For further information:
Sirius Real Estate
Andrew Coombs, CEO / Chris Bowman, CFO
+44 (0) 20 3727 1000
FTI Consulting (Financial PR)
Richard Sunderland / James McEwan / Talia Shirion / Sebastian
Duran De Huerta
+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 UK. As of 31 March 2023, the Group's
portfolio comprised 140 assets let to 9,201 tenants with a total
book value of over EUR2 billion, generating a total annualised rent
roll of EUR178.3 million. Sirius also holds a 35% stake in
Titanium, its EUR350+ 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.
JSE Sponsor
PSG Capital
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END
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