Sirius Real Estate Confident After Strong Set Of Annual Results.
LONDON (Alliance News) - Sirius Real Estate Ltd on Monday reported a "particularly successful year", with the company's rent roll showing strong growth.
Sirius registered 7.1% growth in the rent roll for the 12 months to March, to EUR87.8 million, while the like-for-like book value rose 13% to EUR1.13 billion.
Net asset value per share at the end of the year was 71.01 euro cents, 13% higher on the year prior, while EPRA net asset value was up 17% to 74.82 cents.
Sirius' pretax profit climbed 62% to EUR144.7 million, helped by a EUR99.9 billion property revaluation gain.
The Germany-focused business park owner is paying a final dividend of 1.73 cents, giving a total of 3.36 cents, up 6.3% on the year before.
Chief Executive Andrew Coombs said: "This has been a particularly successful year for the business on many fronts. As well as generating a strong total shareholder accounting return of 19% and high like-for-like annualised rent roll growth of 7.1%, we've significantly reshaped the portfolio to focus on our seven key cities."
"We also agreed an exciting new venture with AXA IM - Real Assets which will enable us to consider larger assets and portfolios of assets with a wider range of return profiles than we could previously. These achievements are testimony to the quality of our in-house platform and the strength of the team."
"Having successfully achieved the previously stated goal of increasing the company's gross assets to in excess of EUR1 billion our focus will now shift to funds from operations growth. We are confident the resilience of the varied sectors of the Germany economy within which we operate and the strength of our business model will continue to help us achieve strong returns for our shareholders well into the future," Coombs added.
Sirius also on Monday announced a new acquisition, paying EUR6.5 million for a business park in Teningen, north of the German city of Freiburg.
It has a gross lettable area of 20,000 square metres. There are currently seven tenants, and the site is 88% occupied with an annual net operating income of EUR542,000.
"This is our first investment in the area around Freiburg which, while not within our primary target of Germany's seven key cities, has some very attractive characteristics particularly given its location close to the French and Swiss borders," said Coombs.
"The asset has significant asset management potential, playing to the strengths of our integrated business model and track record of achieving both efficiencies and maximising occupation. There is also the potential to develop around 2,000 square metres of additional space from surplus land."
London shares were 0.6% higher Monday morning at 64.20p each, while Johannesburg shares were 1.6% higher at ZAR11.90.
By George Collard; firstname.lastname@example.org
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|Date:||Jun 3, 2019|
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