Sirius Real Estate (LON: SRE), the leading operator of branded business parks providing conventional space and flexible workspace in Germany, announced today its interim results for the six months to 30th September 2019.
Highlights
· Profit before tax of €79.7 million for the six month period (H1 2018: €78.2 million)
· Funds from operations¹ grew by 16.3% to €27.1 million (H1 2018: €23.3 million)
· Interim dividend per share increased by 8.6%² to 1.77c (H1 2018: 1.63c)
· NAV per share increased by 7.3% to 76.18c (31 March 2019: 71.01c) – adjusted NAV³ per share up 6.7% to 80.20c (31 March 2019: 75.17c)
· Completed the sale of 65% of five assets⁴ to AXA Investment Managers – Real Assets at significant premium to previously reported book value generating around €70.0 million of funds to re-invest
· Finalised €115.4 million increase in Berlin Hyp Amber bank facility for four years with all-in fixed interest rate of 0.9% per annum⁵ generating around €90.0 million of funds to re-invest
· Completed the acquisition of three sites for €21.9 million, additional two assets notarised for acquisition for €64.6 million and three assets in exclusivity for €57.7 million
· Mature asset located in Weilimdorf notarised for disposal for €10.1 million, due to complete in April 2020
· Further funds of around €80.0 million available for investment into further acquisitions or other ventures
· Entered FTSE 250 Index
Andrew Coombs, Chief Executive Officer of Sirius Real Estate, said:
“Despite political uncertainty and economic headwinds, Sirius’ value-add business model continues to flourish due to the diversity that comes from intensive asset management and our wide range of products. Occupier demand for both conventional and flexible space remains strong while investor appetite for exposure to the German light industrial market continues to drive yields down. Part of this is fuelled by the low rates of financing available, of which we are strongly positioned to take advantage.
“With significant vacancy in our value-add portfolio and a defensive portfolio gross yield of 7.4%, there remains considerable potential to increase rent roll and capital values. Following the completion of the acquisitions that were notarised in the period, we have around €80 million of financial resources to fund future acquisitions on our own balance sheet or within the joint venture with AXA Investment Managers – Real Assets. As such, we are well positioned for a busy and progressive second half of the financial year.”
