Sirius

Sirius represents a unique opportunity for investors to gain exposure to the attractive German light industrial and office real estate sector through a market leading owner and operator with a track record of active management and value creation.

Germany is a highly attractive market with strong fundamentals

  • The German economy is the largest in Europe and characterised by strong GDP growth, low unemployment and high levels of investment and consumer spending
  • 99% of German companies are SMEs, the core customer of Sirius
  • Assets can be acquired at attractive yields and at capital values well below replacement cost
  • Sirius seeks to buy assets with the potential to create value, predominantly through the asset management process by filling vacant space and converting space to higher value uses
  • Sirius maintains overall group LTV at 40% or less, financing new acquisitions with up to 50% LTV using long-term, low interest debt and subsequently blending them with unencumbered assets in the portfolio
  • Unlike its competitors, Sirius has a fully integrated operating platform incorporating in-house marketing and sales functions that allows it to lower risk and increase returns

Sirius has a well-structured portfolio

  • Sirius owns a portfolio of close to €1bn of property assets
  • Sirius owns and manages a substantial portfolio of mixed use real estate assets located in and around the “big seven” German markets
  • Sirius has a well-diversified tenant base with the top 50 tenants generating 45% of annual income
  • Future value enhancement to come from developing and letting the 21% of vacant space in the portfolio that is currently valued at an attractive 8.1% gross yield

Operating with a proven business model and solid track record

  • Sirius has proven capability in transforming assets through its capex investment programmes, which deliver returns in excess of 40% and enhance income and capital values
  • Highly-developed in-house marketing and sales capability that targets prospective tenants directly using online and offline techniques that reduce the overall cost of acquiring customers and minimises dependency on third party agents
  • Dedicated service charge team delivers best-in-class cost recovery by utilising advanced measurement and cost allocation techniques
  • The Company is led by a team of highly experienced individuals who have been tested over the full real estate investment cycle

Delivering a stable and attractive return profile

  • Sirius has delivered a total shareholder accounting return in excess of 15% over the last three years
  • The Group’s policy of distributing 65% of FFO as dividends ensures it maintains a well-covered dividend and provides the head-room to flex pay-out ratios as required
  • Dividend yield ca. 5%
  • Defensive gross yield of 8.1% with valuation gains mainly resulting from improvements in income
  • Further value and income enhancement to come from a combination of asset recycling, filling vacant space in recently acquired assets, implementation and completion of accretive capex investment programmes and reductions in service charge leakage

 

 

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