Sirius Sirius Real Estate

Sirius grows FFO growth to exceed €100 million FFO ambition and supports 29% dividend increase

Record like-for-like rental growth drives 9th consecutive year of dividend increase

Rental growth delivers further FFO and dividend increases

  • 7.3% increase in total revenue to €140.1 million (30 September 2022: €130.6 million)
  • 7.7% increase in Group like-for-like rent roll (30 September 2022: 6.9%)
  • 7.0% in like-for-like annualised rent roll in Germany to €122.5 million (30 September 2022: €114.5 million) and 9.0% in the UK to £50.7 million (€58.6 million) (30 September 2022: £46.5 million (€53.8 million)) demonstrating the quality of the assets and continued occupier demand
  • Sirius remains on track to deliver its tenth consecutive year of greater than 5% like-for-like rent roll increases at Group level
  • 9.3% growth in funds from operations¹ to €53.0 million (30 September 2022: €48.5 million)
  • 2.0% increase in adjusted profit before tax to €49.9 million (30 September 2022: €48.9 million) excluding property valuations demonstrating continued strong operational performance
  • 13.5% increase in adjusted earnings per share, which excludes valuation movements as well as exceptional items, to 4.21c per share (30 September 2022: 3.71c) reflecting the positive year on year operational development, with basic EPRA earnings per share up 16.7% to 4.12c per share (30 September 2022: 3.53c)
  • 11.1%² increase in dividend per share to 3.00c (30 September 2022: 2.70c)
  • 0.4% increase in EPRA NTA per share to 108.51c (31 March 2023: 108.11c per share)
  • The book value of owned investment property increased in Germany by €13.0 million (30 September 2022: €29.7 million), whilst book value decreased in the UK by €6.1 million (30 September 2022: €23.2 million decrease) representing a 1.8% like-for-like valuation growth and 2.1% like-for-like decrease respectively 
  • Increase in owned investment property to €2,112.8 million (31 March 2023: €2,107.3 million) including assets held for sale of €7.3 million
  • Group EPRA net yield to 6.7% (30 September 2022: 6.4%)
  • Like-for-like Group occupancy remained stable at 84.5% (30 September 2022: 84.4%) highlighting the Group’s ability to manage its tenant base and vacancy, especially in Germany where the tenant retention rate rose to 78% compared to 65% in the prior year
  • 7.2% increase in Germany in like-for-like average rental rate to €7.02 per sqm (30 September 2022: €6.55 per sqm) and 9.0% increase in the UK to £13.78 per sq ft (€14.303 per sqm) from £12.64 per sq ft at 30 September 2022, highlighting the high reversion potential within the UK portfolio in particular 

Strong Balance Sheet

  • Weighted average cost of debt remained stable at 1.4% in the period (31 March 2023: 1.4%) with a weighted average debt expiry of 3.3 years, increasing to 2.1% with a weighted average debt expiry of 4.2 years following Berlin Hyp AG and Deutsche Pfandbriefbank AG financing
  • Net LTV of 40.8% (31 March 2023: 41.6%), including unrestricted cash balance of €91.2 million (31 March 2023: €138.6 million)
  • Fitch reaffirmed its BBB investment grade rating with “Stable Outlook” on 20 October 2023

Successful Post Balance Sheet Asset Recycling, including two disposals at 5% average premium to book value

  • Recycling of approximately in total €100 million, in four post balance sheet transactions, comprising €47.4 million of disposals in Germany and €52.9 million of acquisitions in the UK demonstrating that the Company’s assets remain desirable and opportunities remain in the market

Outlook

  • Sirius remains well positioned to navigate the current macro-economic climate due to its intensive asset management initiatives  together with over 4 years weighted average debt expiries cushioning the impact of higher interest rates affecting many in our sector
  • As such, the Company continues to expect to trade in line with management         expectations for the full year.

 

Commenting on the period, Andrew Coombs, Chief Executive Officer of Sirius Real Estate, said:

“The business has delivered another six months of strong operational performance. Dividend and FFO growth is being supported by continued robust trading, with occupier demand for our high quality affordable products underpinning rental growth and keeping us on track to deliver our tenth consecutive year of greater than 5% like-for-like rent roll increases. 

“Our balance sheet is strong, as evidenced by Fitch’s recent reaffirmation of our BBB investment grade rating and stable outlook, providing flexibility to leverage future opportunities as they arise. We recycled c. €100 million of assets through four post balance sheet transactions, making €47.4 million of disposals in Germany and €52.9 million of acquisitions in the UK, highlighting our ability to crystallise returns from our mature assets. Furthermore, there are many further levers we can pull to unlock value and grow rental income through our successful asset management platform.

“We continue to be mindful of the uncertain market backdrop, however, our asset management and marketing initiatives continue to give us confidence in the Group’s growth prospects. Looking ahead, our outlook is positive and we remain confident in our ability to continue to deliver attractive risk-adjusted returns to shareholders."



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