Sirius Real Estate Limited (LON:SRE), the leading owner and operator of branded business and industrial parks providing conventional space and flexible workspace in Germany and the UK, has announced its consolidated financial results for the year to 31 March 2026.
Operating platform continues to drive rental and FFO growth
· 4.9% increase in profit before tax to €211.4m (2025: €201.6m) due to strong operational performance and €111.3m valuation gain in 2026 compared to €81.0m gain in the previous financial year.
· 6.4% like-for-like annualised rent roll growth to €224.2m1,2 (31 March 2025: €210.8m) driven by continued strong organic growth and occupier demand in Germany and the UK.
· 8.4% increase in Funds from Operations (“FFO”) to €133.5m (2025: €123.2m) with 4.5% increase in FFO per share to €8.82c (2025: 8.44c) and progressing well towards our near term €150m FFO target as well as contributing to the launch of our next target to €175m FFO.
· 29.0% rise in profit after tax to €229.8m (31 March 2025: €178.2m) reflecting release of deferred tax liabilities in the German portfolio following a phased government reduction in the corporate tax rate.
· EPRA EPS decreased by 7.8% to 7.43c (2025: 8.06c) principally due to realised foreign exchange translation effects and finance fees to related to recent financing activities, with the majority of these headwinds incurred in the first half when we reported 2.84c EPRA EPS. Basic earnings per share improved by 24.3% to 15.16c (2025: 12.20c) driven by increased earnings and valuation gains in the period.
Over 12 years’ dividend growth with 25 consecutive dividend distributions supported by sustainable FFO growth:
· Progressive H2 dividend of 3.22c per share (2025: 3.09c per share), amounting to a 4.1% uplift in the total dividend for the financial year to 6.40c (2025: 6.15c).
Income driven valuation gains
· 20.5% increase in value of owned investment property portfolio up to €2,969.4 m3 (31 March 2025: €2,465.2m) with €111.3m (2025: €81m) of the uplift achieved through asset management and the remaining € 369.9m from the Company’s accretive acquisitions programme.
· Portfolio gross and net yield of 7.5% and 6.8% in Germany (2025: 7.4% and 6.7%) and 12.3% and 8.7% in the UK (2025: 14.1% and 9.5%) respectively for the period.
· Adjusted NAV per share increased by 5.0% to 124.78c (2025: 118.89c), ahead of consensus expectations.
Significant market opportunity captured with €463.3m4 of assets completed or notarised fuelling future rental growth and comprising:
· Nine acquisitions in Germany for €271.1m4 (net of costs) contributing an annualised NOI of €19.8m at an average gross yield of 8.2% and 85.7% occupancy.
· Four transactions in the UK for £166.2m (€192.2m) adding £10.6m (€12.2m) of annual NOI, at an average gross yield of 6.7% and 84.2% occupancy.
· Three of the above assets (€155.8m)4, have a strong defence related tenant base in line with the Company’s strategy
Strong balance sheet reinforces financial flexibility and provides the ability to act decisively on acquisitions
· Cash at bank of €372.7m (2025: €571.3m) and €300m undrawn revolving credit facility, providing abundant liquidity ahead of the repayment of the €400.0m bond due in June 2026.
· 36.1% net LTV (2025: 31.4%) and Net Debt to EBITDA of 6.6x (2025: 5.2x).
· Successful €105m bond tap of the Group’s 2028 bonds conducted in September 2025 and oversubscribed €88.3m equity raise (€85.9m net of costs) in February 2026, reflecting strong capital markets support for Sirius’ proposition.
· Doubled the size of our existing undrawn Revolving Credit Facility to €300.0m while further diversifying our banking syndicate with Barclays joining, ABN Amro, BNP Paribas and HSBC as well as providing additional flexibility for acquisitions and capex investment and debt management.
· 2.5% (2025: 2.6%) weighted average cost of debt and weighted average debt expiry of 3.2 years (2025: 4.2 years) ensures stability, efficiency and long-term flexibility.
Outlook
· The Group is trading in line with management expectations in the new financial year and while we are carefully monitoring the recent conflict in the Middle East on our business we have not at this time seen it impact on occupier demand.
· Sirius continues to assess further growth options in both Germany and the UK on an opportunistic basis, including recycling of mature assets and reinvesting in value-add opportunities.
· Defence and self storage offer particularly compelling growth opportunities in both the UK and Germany.
1 Group rent roll and rental income KPI’s have been translated utilising a constant foreign currency exchange rate of GBP: EUR 1.1516, being the closing exchange rate as at 31 March 2026.
2 Vantage Point has been excluded from these performance measures, to provide transparency on underlying portfolio performance, reflecting the asset’s scale and tenant concentration at acquisition, with a single managed out tenant representing approximately 500,000 sq ft (46,452 sqm) to enable the Company to actively repurpose the space for future letting.
3 Including assets held for sale.
4 Including one acquisition completed after 31 March 2026.
Commenting on the results, Andrew Coombs, Chief Executive Officer of Sirius Real Estate, said: “Sirius has delivered another strong performance over the past year, demonstrating the continued effectiveness of the Group’s asset management programme in driving growth and value, even during times of volatile market conditions. The 38% average return on investment we have generated from upgrading 250,000 sqm of space just through our value add capex programme in the last three years is a real testament to the strength of our team in this respect. This coupled with the diversity and strength of occupier demand for, and appeal of, the spaces we provide is reflected in the fact that we are able to report our 12th consecutive year of like-for-like rent roll growth above 5% today, 8.4% growth in FFO as well as a milestone 25th progressive dividend payout.
“At the same time, we have continued to make good progress in our acquisition programme, investing over €463 million into thirteen attractive assets that sit well under Sirius’ operating platform and generate resilient income streams from day one. This included around €155 million into properties with strong defence related or adjacent tenant bases. The projected rise in UK and German government defence spending is expected to have a material effect on demand for the types of industrial space Sirius provides, with the urgency of need making existing stock the only feasible option at scale.
“Additionally, the equity and debt markets have shown continued support for our investment proposition, as demonstrated through the oversubscribed equity raise and successful bond tap during the period. Alongside the doubling of our revolving credit facility in March 2026, these initiatives have reinforced Sirius’s financial flexibility and ability to act decisively when opportunities aligned to our strategic priorities arise. While we continue to monitor the situation in the Middle East, we have yet to see it impact our business or occupier demand and we remain confident in our ability to continue to deliver accretive growth on behalf of our shareholders.”
WEBCAST
There will be an in-person presentation for analysts/investors at 09:00 BST (10:00 CET/ SAST) today, hosted by Andrew Coombs, Chief Executive Officer, and Chris Bowman, Chief Financial Officer, at Peel Hunt’s offices located at 100 Liverpool St, London EC2M 2AT.
There will also be a live webcast available, which can be accessed via the following link: https://brrmedia.news/SRE_FY26
