Sirius

The year ended 31 March 2018 delivered record organic rental growth whilst recycling and reinvesting in assets for the future

  • €75.8m Gross annualised rental income at 31 March 2017
  • €89.6m Profit before tax
  • 3.16c Total dividend for the year
  • €931.2m Portfolio book value
  • 64.18c EPRA NAV per share
  • 40.8% Loan to value ratio
  • €5.37 Average rate per sqm
  • 79.7% Occupancy

Completion of the reinvestment of disposal and equity raise proceeds

Successful recycling of €103.0 million of proceeds relating to the disposal of three mature assets, that were generating €6.7 million of annual net operating income on 90% occupancy, into thirteen new assets costing €163.7 million initially generating €8.3 million of annual net operating income on 58% occupancy. These new assets provide the Company with close to 80,000sqm of vacant or sub-optimal space to invest into and continue generating returns as the capex investment programme has been producing over the last three years.

Exceptional organic rental income growth and lettings

The Company delivered an exceptional 6.2% increase in like-for-like annualised rental income. This is the highest ever organic annualised rental income increase that the Company has achieved and is partly indicative of a strong market, but more importantly how well Sirius’s asset management platform is able to capture demand. Total Company annualised rental income grew from €71.0 million at the start of the period to €79.5 million when factoring in two acquisitions that completed on 1 April 2018.

Original capex investment programme substantially complete with excellent returns

The original capex investment programme commenced just over three years ago and is focused on transforming over 200,000sqm of vacant or sub-optimal space. As at 31 March 2018 the original programme is substantially complete with over 186,000sqm of this space fully refurbished and either let or being marketed for let. A total of €18.8 million has been invested into this space and, at 82% occupancy, it is generating €10.9 million of annualised rental income representing an income return on investment of 58%. Whilst there is still a little to go to finish the original programme, the focus now switches to the acquisitions capex investment programme which has gained momentum from the opportunistic acquisitions that completed during the last two financial years.

Substantial valuation increases seen again

The assets that were owned for the entire period increased in book value from €719.5 million to €803.9 million which represents an €84.4 million or 11.6% like-for-like valuation increase. The acquisitions that completed in the year were valued at €127.5 million which is 7.6% higher than their purchase price (excluding acquisition costs) and only marginally lower than the total acquisition costs. Including the assets located in Saarbrücken and Düsseldorf II that completed on 1 April 2018, the Group’s portfolio has a book value of €967.5 million. The core assets within the portfolio are now valued on a gross yield of 8.1% and net yield of 7.4%.

 

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