Sirius Sirius Real Estate

Strong operational results drive FFO and a 4% increase in dividend

 

 

Operating platform continues to drive rental and FFO growth

•    56.8% increase in profit after tax to €87.0m (30 September 2024: €55.5m) due to strong operational performance, valuation gain and release of deferred tax liabilities in the German portfolio as the German government enacted an annual 1% reduction on the corporate tax rate from 2028 until 2032 from 15% to 10%

•    15.2% total rent roll growth to €242.5m1 (30 September 2024: €210.5m) highlighting the impact of acquisitions in the period, supported by a 5.2% like-for-like rent roll growth to €211.7m1 (30 September 2024: €201.2m) driven by continued strong organic growth and occupier demand in Germany and the UK

•    6.6% growth in funds from operations (“FFO”) to €64.7m (30 September 2024: €60.7m) with FFO per share of 4.30c (2024: 4.29c) reflecting the dilutionary effect of the July 2024 equity raise before Sirius sees the corresponding growth from acquisitions in future periods

•    6.0% decrease in profit before tax to €57.5m (30 September 2024: €61.2m) primarily due to a net foreign exchange loss of €14.2m on sterling cash reserves held in anticipation of UK investments made in the period

•    Basic earnings per share increased by 47.2% to 5.77c (30 September 2024: 3.92c) reflecting the strong 56.8% growth in profit after tax and the higher shares in issue following the equity issuance in July 2024 while headline earnings and EPRA earnings per share decreased by 28.8% to 2.84c (30 September 2024: 3.99c) primarily due to foreign currency translation loss of €14.2m in the period

Sustainable FFO growth supports 24th progressive dividend payout

•    Progressive H1 dividend of 3.18c per share (30 September 2024: 3.06c) amounting to a 4.0% increase in dividend per share

Valuations underpinned by income

•    Value of owned investment property portfolio up 12.2% to €2,765.4m2 (31 March 2025: €2,465.2m) driven by €295.0m in acquisitions in the period and a €14.4m asset management led uplift in valuations

•    Portfolio gross and net yields of 7.5% and 6.7% in Germany (31 March 2025: 7.4% and 6.7%) and 12.3% and 8.8% in the UK (31 March 2025: 14.1% and 9.5%) respectively for the period

•    Group EPRA net initial yield of 6.8% (31 March 2025: 6.9%) with Germany stable at 6.2% and the UK at a tighter yield of 8.3%, reflecting the industrial focused acquisition activity (31 March 2025: 6.3% and 8.9%) respectively

•    0.9% decrease in Adjusted NAV per share to 117.84c (31 March 2025: 118.89c), with valuation gains being offset by unrealised foreign currency translation effects in the period on the Group’s UK assets being converted into the euro based reporting currency

•    1.4% decrease in EPRA NTA per share to 115.94c (31 March 2025: 117.61c), again valuation gains having been offset by unrealised foreign currency translation effects

Strong balance sheet

•    2.5% (31 March 2025: 2.6%) weighted average cost of debt and weighted average debt expiry of 3.7 years (31 March 2025: 4.2 years) ensures stability, efficiency and long-term flexibility

•    New 5 year €150.0m undrawn Revolving Credit Facility from a syndicate of three banks, ABN Amro, BNP Paribas and HSBC, providing capacity for acquisitions and capex investment, as well as efficient cash management

•    An additional €105.0m capital raised from its €359.9m 1.75% bonds due in November 2028 to provide fire power for the Group’s acquisition pipeline

•    38.3% net LTV (31 March 2025: 31.4%) (higher as available cash was invested into property) and Net Debt to EBITDA of 6.7x, within our 40.0% net LTV and 8x target caps respectively

•    €389.0m cash position at 30 September 2025 (31 March 2025: €571.3m) as well as €150.0m undrawn RCF provides capacity for acquisitions and capex investment as well as repayment of the €400.0m bond due in June 2026

•    Fitch reaffirmed its BBB investment grade rating with “Stable Outlook” in October 2025

Outlook

•    The Group is trading in line with management expectations

•    Sirius continues to target further growth options, particularly in Germany on an opportunistic basis, using existing firepower as well as recycling of mature assets to reinvest in value-add opportunities

1     The Group has chosen to disclose certain Group rental income figures utilising a constant foreign currency exchange rate of GBP:EUR 1.1450, being the closing exchange rate as at 30 September 2025.

2      Including assets held for sale

Commenting on the period, Andrew Coombs, Chief Executive Officer of Sirius Real Estate, said: “Over the first half of the year Sirius has delivered another strong performance, demonstrating the platform’s continued ability to asset manage value and drive rental income from the highly resilient portfolio that we have assembled and which comprises assets that appeal to a broad range of occupiers. Our like-for-like rent roll growth was again above 5% and helped us drive a 6.6% growth in FFO, while our value add and tenant renewal capex investment programmes have now achieved average returns on investment of 41% and 54% over the last three years respectively.

At the same time, we have continued to make good progress in our acquisition programme, investing almost €340m so far this year, including the purchase of a significant estate in Hartlebury which has been transformatory for our BizSpace business in the UK.  Importantly, with the proceeds of our 2024 capital raise now fully invested and overall rent roll 15.2% ahead of the same period last year, we expect these well timed acquisitions to begin to flow through to FFO and earnings growth on a per share basis in the second half and beyond.

Sirius remains favourably positioned to continue to build scale by utilising its strong balance sheet for acquisitions and organically through its intensive asset management initiatives and diversified offerings.  With the business performing well and a confident outlook we are pleased to be delivering our 24th consecutive increased dividend to shareholders.”

Important

Please select your jurisdiction of residence:

Location

Please select the jurisdiction in which you are presently located:

Telephone

The international dialling code for my primary residence is:

Disclaimer – Important

Viewing the materials you seek to access may not be lawful in certain jurisdictions.  In other jurisdictions, only certain categories of person may be allowed to view such materials.  Any person who wishes to view these materials must first satisfy themselves that they are not subject to any local requirements that prohibit or restrict them from doing so.

The information contained in this website, including any material you may hereafter access, does not constitute an offer of securities for sale in the United States or any other jurisdiction. Securities may not be offered or sold in the United States absent registration under the U.S. Securities Act of 1933, as amended, or an exemption from registration.  No public offering or sale of securities in the United States is contemplated. The information contained in this website, including any material you may hereafter access, is not to be provided by you to any other person, in electronic form or otherwise, and is not to be accessed, published, copied, forwarded or otherwise disseminated in or into the United States.

If you are not permitted to view materials on this webpage or are in any doubt as to whether you are permitted to view these materials, please exit this webpage.

By proceeding, you agree to comply with the terms set out above and confirm that you are a resident of the country you identified earlier and you are accessing this website from within the country you identified earlier, and you additionally represent, warrant and agree that you are not accessing this website from within the United States.

No Access

Thank you for your interest.  Legal restrictions prevent us from allowing you further access to this website.

If you believe you are a resident of, and located in, a jurisdiction where viewing is permitted by law, and you can confirm that to us, please contact us.

Return Home