Sirius Sirius Real Estate

Continued FFO growth with strong operational performance driving twelfth year of increased dividends

 

 

Operating platform continues to drive rental and FFO growth

  • 75% increase in profit before tax to €201.6m (2024: €115.2m) primarily due to an €81.0m asset management led valuation gain (2024: €12.4m)
  • 6.3%* like-for like rent roll growth to €205.6m* (2024: €193.5m*) driven by continued strong organic growth and occupier demand in Germany and the UK
  • 11.8% increase in Funds from Operations (“FFO”) to €123.2m (2024: €110.2m) with FFO per share of 8.44c (2024: 8.95c) reflecting the dilutionary effect of the November 2023 and July 2024 equity raises which are not yet fully invested
  • Operating profit increased by 65.2% to €215.9m (2024: €130.7m)  
  • 4.7% decrease in EPRA earnings per share to 7.82c (2024: 8.21c)
  • Basic earnings per share increased by 39.4% to 12.20c (2024: 8.75c), while headline earnings per share decreased by 0.7% to 8.06c (2024: 8.12c)**

Sustainable FFO growth supports 23rd progressive dividend payout

  • Progressive H2 dividend of 3.09c per share (2024: 3.05c per share), amounting to a 1.7% uplift in the total dividend for the financial year to 6.15c (2024: 6.05c)

Income driven valuation gains

  • Value of Investment property portfolio up 12.6% to €2,488.1m (2024: €2,210.6m) including an €81.0m asset management led uplift
  • Portfolio gross and net yields of 7.4% and 6.7% in Germany (2024: 7.5% and 6.8%) and 14.1% and 9.5% in the UK (2024: 14.1% and 9.9%) respectively, on a like-for-like basis
  • Group EPRA net initial yield of 6.9% (2024: 6.8%) with Germany and the UK broadly stable at 6.3% and 8.9% (2024: 6.3% and 8.8%) respectively
  • 7.1% increase in EPRA NTA per share to 117.61c (2024: 109.82c) demonstrating the resilience of the portfolio
  • 7.0% increase in Adjusted NAV per share to 118.89c (2024: 111.12c)

Significant market opportunity captured with €270.0m of acquisitions and €46.3m of disposals, at a premium to book value***

  • £141.5m (€168.7m) invested in six UK acquisitions (notarised or completed) adding £12.8m (€14.3m) of annualised NOI at an average gross yield of 10.7% and 93.2% occupancy
  • €101.3m invested in Germany in six acquisitions (notarised or completed) at a 9.9% average gross yield, with 77.2% occupancy presenting an opportunity for future rental growth
  • Disposals of four assets in the UK with limited further growth opportunities and annualised NOI of £1.2m (€1.4m) completed for £13.7m (€16.3m), all at premium to book value
  • Post balance sheet disposal of a mature asset in Pfungstadt, Germany with an annualised NOI of €2.2m, notarised for €30.0m at premium to book value

Strong balance sheet with capacity for acquisitions

  • Equity raise of €180.9m (€174.5m net of costs) completed in July 2024
  • Successful issuance in January 2025 of €350.0m 4% bonds due in 2032 and €59.9m tap of the bond due in November 2028
  • €571.3m cash position at 31 March 2025 (2024: €214.5m) provides capacity for acquisitions, investment and refinancing of the €400m bond due in June 2026
  • 31.4% net LTV (March 2024: 33.9%) and Net Debt to EBITDA of 5.2x, comfortably inside our 40% and 8x target caps respectively
  • 2.6% (March 2024: 2.1%) weighted average cost of debt and weighted average debt expiry of 4.2 years (March 2024: 4.0 years) ensures stability, efficiency and long-term flexibility
  • €12.7m facility with Saarbrücken Sparkasse refinanced to 2030 at 3.264%

Outlook

  • The Company is trading in line with management expectations in the new financial year
  • 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
  • Organic growth opportunities remain strong in both markets

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

“This has been another strong year of performance for Sirius during which we have delivered for shareholders our 23rd consecutive increase in dividend over a twelve-year period that has included a number of significantly challenging macro events.  The progress made in the year under review serves as a good example of how we have achieved this track record, having successfully raised capital both in the debt and equity markets allowing us then to take advantage of market timing to make some €270 million of accretive acquisitions. These have both added day one operating income and materially increased the pipeline of organic value creation opportunities within our portfolio. Our asset management teams across the Sirius German and UK platforms have continued to drive strong operational results, notably with a 6.3% growth in like-for-like rent roll which in turn supported valuation growth and helped us deliver further profitability.

 

“Looking ahead we will continue to focus on extracting the latent value within our existing portfolio, although our overriding priority for the year ahead is ensuring we fully capitalise on the remaining window of opportunity to make acquisitions before the next cycle begins in earnest, given we may well either be at or near, and in some areas past, the bottom of the current cycle.  We are also working hard to ensure we are as well placed as possible to benefit from the recently announced increases in defence spending to 2.5% of GDP in the UK and, most notably, in Germany where the government has outlined an expected €400bn on defence spending out of a total €900bn security and infrastructure investment package. We believe that even if only a small part of this flows into our asset classes, defence has the potential to become a major growth sector and driver of demand for warehouse and manufacturing space, where the rent is ultimately government derived. We are actively positioning our offering to attract some of this expected business.”

Notes:

*Group rent roll and rental income KPI’s have been translated utilising a constant foreign currency exchange rate of GBP:EUR 1.1971, being the closing exchange rate as at 31 March 2025.

** Variance between basic and headline earnings per share is attributable to the gain on revaluation of investment properties being included in the calculation of basic earnings per share and excluded from headline earnings per share.    

*** Including notarised transactions after 31 March 2025.

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