REG - Sirius Real Estate - AGM Statement

Sirius Real EstateAnnouncement

06/07/2022 07:00

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RNS Number : 4328R  Sirius Real Estate Limited  06 July 2022

SIRIUS REAL ESTATE LIMITED

(Incorporated in Guernsey)

Company Number: 46442

JSE Share Code: SRE

LSE (GBP) Share Code: SRE

LEI: 213800NURUF5W8QSK566

ISIN Code: GG00B1W3VF54

 

6 July 2022

Sirius Real Estate Limited

("Sirius Real Estate", "Sirius" or the "Company")

AGM Statement

 

Sirius Real Estate, the leading owner and operator of branded business and
industrial parks providing conventional space and flexible workspace in
Germany and the UK, will hold its Annual General Meeting today ("AGM") at 10am
(UK time) / 11am (SAST) at 33 St James's Square, London SW1Y 4JS.  At the
AGM, the Company's chairman, Daniel Kitchen, will make the following statement
as an update on current trading:

 

"Following another positive set of annual results for the year ended 31 March
2022, leading to a 20% total accounting return including a 16.1% increase in
dividend for shareholders, the new financial year has begun as planned despite
the ongoing economic uncertainty and inflationary environment prevalent in
both our markets and across Europe, and we continue to trade in line with
expectations.

 

"Whilst the Company will not be alone in feeling the impact of inflation on
its cost base this year, a combination of forward purchase agreements,
volume-based discounts, and the use of selected suppliers continue to act as
effective mitigants and provide us with a competitive advantage.

 

"The Company's financial profile was considerably enhanced as a result of last
year's corporate bond issuances, as part of its strategy to transition towards
unsecured debt, which allowed it to lock in low rates on extended maturities
ahead of anticipated rises in interest rates this year. These resulted in a
reduction in the Company's average cost of debt to 1.4%, a lengthening of its
weighted average term of debt to 4.3 years and an increase in the value of
unencumbered properties to €1.6 billion, as of 31 March 2022. Having
slightly increased leverage to 41.6% at 31 March 2022 following the
acquisition of BizSpace, the Company remains committed to targeting a net
loan-to-value ("LTV") of below 40%, and will see leverage reduce through a
combination of income-led capital growth, transformative capital investment
and selective asset recycling.

 

"In respect of asset recycling, we expect to complete the previously announced
sale of the Camberwell property in London in July 2022, which we had agreed at
a 94% premium to the valuation at the time of its acquisition last year as
part of the BizSpace portfolio, and we are currently working on some further
asset recycling opportunities in both the UK and Germany.

 

"The Company remains focused on the execution of its strategy based on
intensive asset management and increasing net operating income which is
expected to underpin its recently presented earnings ambitions. With a wide
range of workspaces, flexible contracts and low average rents, the Company is
defensively positioned with an attractive proposition for its tenants and is
well placed to meet the continued changes in occupier space requirements and
to capture reversionary potential. Similarly, with a large percentage of the
Company's tenancy agreements including inflation indexations, the Company is
confident in its ability to generate further increases in average rental rates
in the coming financial year."

 

For further information:

Sirius Real Estate

Andrew Coombs, CEO / Diarmuid Kelly, CFO / Alistair Marks, CIO

+49 (0) 30 285010110

 

FTI Consulting (Financial PR)

Richard Sunderland / James McEwan / Talia Jessener

+44 (0) 20 3727 1000

SiriusRealEstate@fticonsulting.com (mailto:SiriusRealEstate@fticonsulting.com)

 

NOTES TO EDITORS

About Sirius Real Estate

Sirius is a property company listed on the main and premium market of the
London Stock Exchange and the main board of the JSE Limited. It is a leading
owner and operator of branded business and industrial parks providing
conventional space and flexible workspace in Germany and the UK. As of 31
March 2022, and following the acquisition of BizSpace, a leading UK provider
of regional flexible workspace, the Group's portfolio comprised 140 assets let
to 9,452 tenants with a total book value of over €2 billion, generating a
total annualised rent roll of €167.1 million. Sirius also holds a 35% stake
in Titanium, its €350+ million German-focused joint venture with clients of
AXA IM Alts.

 

The Company's strategy centres on acquiring business parks at attractive
yields and integrating them into its network of sites - both under the Sirius
name and alongside a range of branded products. The business then seeks to
reconfigure and upgrade existing and vacant space to appeal to the local
market via intensive asset management and investment and may then choose to
selectively refinance or dispose of assets once they meet maturity, to release
capital for new investment. This active approach allows the Company to
generate attractive returns for shareholders through growing rental income,
improving cost recoveries and capital values, and enhancing returns through
securing efficient financing terms. The Company has a strong track record for
growing its income and has delivered like-for-like rent roll growth in excess
of 5% for the last eight consecutive years.

 

For more information, please visit: www.sirius-real-estate.com
(http://www.sirius-real-estate.com/)

Follow us on LinkedIn at https://www.linkedin.com/company/siriusrealestate/
(https://www.linkedin.com/company/siriusrealestate/)

Follow us on Twitter at @SiriusRE

 

JSE Sponsor

PSG Capital

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