REG - Sirius Real Estate - Half-year Report <Origin Href="QuoteRef">SRET.L</Origin> - Part 3
27/11/2017 07:05
- Part 3: For the preceding part double click ID:nRSa5180Xb
impairments were made
against any assets (31 March 2017: E4,968,000).
The weighted average lease expiry remaining across the whole portfolio at 30
September 2017 was 2.6 years (31 March 2017: 2.5 years).
As a result of the level of judgement used in arriving at the market
valuations, the amounts that may ultimately be realised in respect of any
given property may differ from the valuations shown in the statement of
financial position.
The reconciliation of surplus on revaluation above capex as per the statement
of comprehensive income is as follows:
(Unaudited)30 September 2017E000 (Unaudited)30 September 2016E000 31 March 2017E000
Surplus on revaluation above capex 36,797 26,363 50,040
Adjustment in respect of lease incentives (185) (393) (600)
Movement in Directors' discretionary impairment of non-core assets 4,968 (600) 342
Surplus on revaluation of investment properties reported in the statement of comprehensive income 41,580 25,370 49,782
Included in the surplus on revaluation of investment properties reported in
the statement of comprehensive income are gross gains of E52,527,000 and gross
losses of E10,947,000.
Other than the capital commitments disclosed in note 23 the Group is under no
contractual obligation to purchase, construct or develop any investment
property. The Group is responsible for routine maintenance to the investment
properties.
All investment properties are categorised as Level 3 fair values as they use
significant unobservable inputs. There have not been any transfers between
levels during the year. Investment properties have been classed according to
their real estate sector. Information on these significant unobservable inputs
per class of investment property is disclosed below:
As at 30 September 2017
Sector Market value (E) Technique Significant assumption Range
Business park 841,320,000 Discounted cash flow Current rental income E68k-E5,257k
Market rental income E423k-E5,625k
Gross initial yield 0.4%-16.7%
Discount factor 5.00%-8.9%
Void period (months) 12-24
Estimated capital value per sqm E255-E1,404
Other 18,930,000 Discounted cash flow Current rental income E511k-2,375k
Market rental income E899k-E3,344k
Gross initial yield 9.6%-10.1%
Discount factor 8.5%-12.0%
Void period (months) 12-24
Estimated capital value per sqm E65-E125
As at 31 March 2017
Sector Market value (E) Technique Significant assumption Range
Business park 711,320,000 Discounted cash flow Current rental income E288k-E5,655k
Market rental income E424k-E6,035k
Gross initial yield 3.8%-15.6%
Discount factor 4.75%-12.0%
Void period (months) 12-24
Estimated capital value per sqm E67-E1,261
Other 23,970,000 Discounted cash flow Current rental income E398k-1,905k
Market rental income E466k-E2,119k
Gross initial yield 3.8%-10.1%
Discount factor 6.3%-9.5%
Void period (months) 12-24
Estimated capital value per sqm E597-E941
The valuation is performed on a lease-by-lease basis due to the mixed-use
nature of the sites. This gives rise to large ranges in the inputs.
As a result of the level of judgement used in arriving at the market
valuations, the amounts which may ultimately be realised in respect of any
given property may differ from the valuations shown in the statement of
financial position. For example, an increase in market rental values of 5%
would lead to an increase in the fair value of the investment properties of
E43,920,000 and a decrease in market rental values of 5% would lead to a
decrease in the fair value of the investment properties of E44,490,000.
Similarly, an increase in the discount rates of 0.25% would lead to a decrease
in the fair value of the investment properties of E17,480,000 and a decrease
in the discount rates of 0.25% would lead to an increase in the fair value of
the investment properties of E17,660,000.
The highest and best use of properties do not differ from their current use.
13. Investment properties held for sale
(Unaudited)30 September 2017E000 (Unaudited)30 September 2016E000 31 March 2017E000
Merseburg - 5,870 -
Berlin Tempelhof land 950 - -
Munich Rupert Mayer Strasse - - 85,000
Düsseldorf - - 11,000
Balance as at period end 950 5,870 96,000
Investment properties held for sale at 30 September 2017 is E950,000 (31 March
2017: E96.0 million), representing non-income producing land that was
notarised for sale in the period. A gain of E300,000 was recognised in the
surplus on revaluation of investment properties within the consolidated
statement of comprehensive income in the period.
14. Goodwill
(Unaudited)30 September 2017E000 (Unaudited)30 September 2016E000 31 March 2017E000
Opening balance 3,738 3,738 3,738
Closing balance 3,738 3,738 3,738
On 30 January 2012 a transaction was completed to internalise the Asset
Management Agreement and, as a result of the consideration given exceeding the
net assets acquired, goodwill of E3,738,000 was recognised. Current business
plans indicate that the balance is unimpaired.
15. Trade and other receivables
(Unaudited)30 September 2017E000 (Unaudited)30 September 2016E000 31 March 2017E000
Trade receivables 2,088 1,808 2,837
Other receivables 14,026 5,265 4,470
Prepayments 2,063 1,503 6,983
Balance as at period end 18,177 8,576 14,290
Other receivables include lease incentives of E3,610,000 (31 March 2017:
E3,269,000).
Prepayments include costs totalling E395,000 (31 March 2017: E6,547,000)
relating to the acquisition of a new site that was notarised as at 30
September 2017.
16. Cash and cash equivalents
(Unaudited)30 September 2017E000 (Unaudited)30 September 2016E000 31 March 2017E000
Cash at bank and in hand 33,664 24,747 48,695
Balance as at period end 33,664 24,747 48,695
Cash at bank earns interest at floating rates based on daily bank deposit
rates. The fair value of cash as at 30 September 2017 is E33,664,000 (31 March
2017: E48,695,000).
As at 30 September 2017, E20,710,000 (31 March 2017: E12,753,000) of cash is
held in blocked accounts. Of this, E7,000,000 (31 March 2017: Enil) represents
proceeds from the disposal of investment property retained by the bank to
which the asset acted as security until such time as a replacement asset is
substituted into the relevant loan facility. E7,089,000 (31 March 2017:
E6,933,000) relates to deposits received from tenants. An amount of E16,000
(31 March 2017: E16,000) is cash held in escrow as required by a supplier and
E131,000 (31 March 2017: E131,000) is held in restricted accounts for office
rent deposits. An amount of E2,859,000 (31 March 2017: E2,850,000) relates to
amounts reserved for future bank loan interest and amortisation payments,
pursuant to certain of the Group's banking facilities, and an amount of
E3,615,000 (31 March 2017: E2,823,000) relates to amounts reserved for future
capital expenditure.
17. Trade and other payables
(Unaudited)30 September 2017E000 (Unaudited)30 September 2016E000 31 March 2017E000
Trade payables 6,581 4,483 5,865
Accrued expenses 11,503 9,568 12,206
Accrued interest 2,137 1,564 509
Other payables 12,826 12,148 15,383
Balance as at period end 33,047 27,763 33,963
18. Interest-bearing loans and borrowings
Effectiveinterest rate% Maturity (Unaudited)30 September 2017E000 (Unaudited)30 September 2016E000 31 March 2017E000
Current
Deutsche Genossenschafts-Hypothekenbank AG
- fixed rate facility 1.59 31 March 2021 320 320 320
Bayerische Landesbank
- hedged floating rate facility Hedged1 19 October 2020 508 508 508
SEB AG
- fixed rate facility 1.84 1 September 2022 1,180 1,180 1,180
Berlin Hyp AG/Deutsche Pfandbriefbank AG
- floating rate facility Floating2 27 April 2023 - 1,063 1,063
- fixed rate facility 1.66 27 April 2023 2,310 2,394 2,413
Berlin Hyp AG
- fixed rate facility 2.85 31 December 2019 - 828 -
- fixed rate facility 1.32 31 December 2019 - 112 -
- fixed rate facility 1.48 29 October 2023 1,773 - 1,773
K-Bonds I
- fixed rate facility 6.00 31 July 2020 1,000 1,000 1,000
Capitalised finance charges on all loans (1,065) (1,201) (1,189)
6,026 6,204 7,068
Non-current
Deutsche Genossenschafts-Hypothekenbank AG
- fixed rate facility 1.59 31 March 2021 14,200 14,520 14,360
Bayerische Landesbank
- hedged floating rate facility Hedged1 19 October 2020 23,860 24,367 24,113
SEB AG
- fixed rate facility 1.84 1 September 2022 55,755 56,640 56,050
Berlin Hyp AG/Deutsche Pfandbriefbank AG
- floating rate facility Floating2 27 April 2023 - 40,906 40,375
- fixed rate facility 1.66 27 April 2023 83,679 91,138 89,927
Berlin Hyp AG
- fixed rate facility 2.85 31 December 2019 - 33,912 -
- fixed rate facility 1.32 31 December 2019 - 4,341 -
- fixed rate facility 1.48 29 October 2023 66,613 - 67,496
K-Bonds I
- fixed rate facility 4.00 31 July 2023 45,000 45,000 45,000
- fixed rate facility 6.00 31 July 2020 2,000 3,000 3,000
Capitalised finance charges on all loans (4,448) (5,807) (5,597)
286,659 308,017 334,724
Total 292,685 314,221 341,792
314,221
341,792
1 This facility is hedged with a swap charged at a rate of 1.66%.
2 Tranche 2 of this facility was fully repaid in September 2017.
The Group has pledged 35 (31 March 2017: 38) investment properties to secure
several separate interest-bearing debt facilities granted to the Group. The 35
(31 March 2017: 38) properties had a combined valuation of E705,566,000 as at
30 September 2017 (31 March 2017: E774,120,000).
Deutsche Genossenschafts-Hypothekenbank AG
On 24 March 2016, the Group agreed to a facility agreement with Deutsche
Genossenschafts-Hypothekenbank AG for E16.0 million. As at 31 March 2017,
tranche 1 had been drawn down in full totalling E15.0 million. The loan
terminates on 31 March 2021. Amortisation is 2% p.a., with the remainder of
the loan due in the fifth year. The facility is charged at a fixed interest
rate of 1.59%. The facility is secured over one property asset and is subject
to various covenants with which the Group has complied.
Bayerische Landesbank
On 20 October 2015, the Group agreed to a facility agreement with Bayerische
Landesbank for E25.4 million. The loan terminates on 19 October 2020.
Amortisation is 2% p.a., with the remainder due in the fourth year. The full
facility has been hedged at a rate of 1.66% until 19 October 2020 by way of an
interest rate swap. The facility is secured over four property assets and is
subject to various covenants with which the Group has complied.
SEB AG
On 2 September 2015, the Group agreed to a facility agreement with SEB AG for
E59.0 million to refinance the two existing Macquarie loan facilities. The
loan terminates on 1 September 2022. Amortisation is 2% p.a., with the
remainder due in the seventh year. The loan facility is charged at a fixed
interest rate of 1.84%. This facility is secured over twelve of the 14
property assets previously financed through the Macquarie loan facilities;
thereby, two non-core assets were unencumbered in the refinancing process. The
facility is subject to various covenants with which the Group has complied.
Berlin Hyp AG/Deutsche Pfandbriefbank AG
On 31 March 2014, the Group agreed to a facility agreement with Berlin Hyp AG
and Deutsche Pfandbriefbank AG for E115.0 million. The loan terminates on 31
March 2019. Amortisation is 2% p.a. for the first two years, 2.5% for the
third year and 3.0% thereafter, with the remainder due in the fifth year. Half
of the facility (E55.2 million) is charged interest at 3.0% plus three months'
EURIBOR and is capped at 4.5%, and the other half (E55.2 million) has been
hedged at a rate of 4.265% until 31 March 2019. This facility is secured over
nine property assets and is subject to various covenants with which the Group
has complied. On 28 April 2016, the Group agreed to refinance this facility,
which had an outstanding balance of E110.4 million at 31 March 2016. The new
facility is split in two tranches totalling E137.0 million and terminates on
27 April 2023. Tranche 1, totalling E94.5 million, is charged at a fixed
interest rate of 1.66% for the full term of the loan. Tranche 2, totalling
E42.5 million, is charged with a floating rate of 1.57% over three months'
EURIBOR (not less than 0%) for the full term of the loan. Amortisation is set
at 2.5% across the full facility, with the remainder due in one instalment on
the final maturity date. The facility is secured over eleven property assets
and is subject to various covenants with which the Group has complied.
On 30 June 2017, the Group made a repayment of E5.75 million relating to
tranche 1 of the facility as a result of the disposal of an asset that acted
as security over the loan. On 28 September 2017, the Group repaid tranche 2 of
the facility in full, which had an outstanding balance of E41.2 million at the
time of repayment as a result of the disposal of an asset that acted as
security over the loan. The Group continues to have substitution rights
relating to the facility.
Berlin Hyp AG
On 15 December 2014, the Group agreed to a facility agreement with Berlin Hyp
AG for E36.0 million. The loan terminates on 31 December 2019. Amortisation is
2% p.a. for the first two years, 2.4% for the third year and 2.8% thereafter,
with the remainder due in the fifth year. The facility is charged at a fixed
interest rate of 2.85%. This facility is secured over three property assets
and is subject to various covenants with which the Group has complied. On 28
April 2016, the Group agreed to add an additional tranche to this facility,
which had an outstanding balance of E35.1 million at 31 March 2016. The
additional tranche of E4.5 million brings the total loan to E39.6 million. The
maturity of the additional loan tranche is coterminous with the existing loan
at 31 December 2019. Amortisation is 2.5% per annum, with the remainder due at
maturity. The additional loan tranche is charged with a fixed interest rate of
1.32% for the full term of the loan. The original facility agreement was
amended to include one previously unencumbered property asset located in
Würselen. The terms of the original loan are unchanged and the loan continues
to be subject to various covenants with which the Group has complied.
On 20 October 2016, the Group concluded an agreement with Berlin Hyp AG to
refinance and extend this facility that had an outstanding balance of E39.2
million at 30 September 2016. The new facility totals E70.0 million and
terminates on 29 October 2023. Amortisation is 2.5% per annum, with the
remainder due at maturity. The facility is charged with an all-in fixed
interest rate of 1.48% for the full term of the loan. The facility is secured
over six property assets which include the recent acquisitions in Dresden and
Wiesbaden which were added to the security pool in order to increase the
facility. The loan is subject to various covenants with which the Group has
complied.
K-Bonds
On 1 August 2013, the Group agreed to a facility agreement with K-Bonds for
E52.0 million. The loan consists of a senior tranche of E45.0 million and a
junior tranche of E7.0 million. The senior tranche has a fixed interest rate
of 4% p.a. and is due in one sum on 31 July 2023. The junior tranche has a
fixed interest rate of 6% and terminates on 31 July 2020. The junior tranche
is amortised at E1.0 million p.a. over a seven year period. This facility is
secured over four properties and is subject to various covenants with which
the Group has complied.
19. Financial instruments
Fair values
Set out below is a comparison by category of carrying amounts and fair values
of all of the Group's financial instruments that are carried in the financial
statements:
(Unaudited)30 September 2017 (Unaudited)30 September 2016 31 March 2017
CarryingamountE000 FairvalueE000 CarryingamountE000 FairvalueE000 CarryingamountE000 FairvalueE000
Financial assets
Cash 33,664 33,664 24,747 24,747 48,695 48,695
Trade receivables 2,088 2,088 1,808 1,808 2,837 2,837
Derivative financial instruments - - - - - -
Financial liabilities
Trade payables 6,581 6,581 4,483 4,483 5,865 5,865
Derivative financial instruments 334 334 599 599 341 341
Interest-bearing loans and borrowings:
Floating rate borrowings - - 41,969 41,969 41,438 41,438
Floating rate borrowings - hedged* 24,367 24,367 24,875 24,875 24,621 24,621
Fixed rate borrowings 273,831 278,563 254,385 256,458 282,519 288,288
* The Group holds interest rate swap contracts designed to manage the
interest rate and liquidity risks of expected cash flows of its borrowings
with the variable rate facility with Bayerische Landesbank. Please refer to
note 18 for details of swap and cap contracts.
20. Issued share capital
Authorised Numberof shares SharecapitalE
Ordinary shares of no par value Unlimited -
As at 30 September 2017 Unlimited -
Issued and fully paid Numberof shares SharecapitalE
As at 31 March 2016 751,984,887 -
Issued ordinary shares 125,488,040 -
Issued Treasury Shares 313,608 -
As at 31 March 2017 877,786,535 -
Issued ordinary shares 47,879,972 -
Issued Treasury Shares 487,166 -
As at 30 September 2017 926,153,673 -
Holders of the ordinary shares are entitled to receive dividends and other
distributions and to attend and vote at any general meeting. Shares held in
treasury are not entitled to receive dividends or to vote at general
meetings.
Pursuant to a scrip dividend offering on 13 January 2017, the Company issued
11,027,524 ordinary shares at an issue price of E0.5055, resulting in the
Company's overall issued share capital being 852,858,815 ordinary shares, of
which 1,062,058 were held in treasury. The total number of ordinary shares
with voting rights in the Company at this date was 851,796,757.
Pursuant to an equity raise of E15.0 million on 7 March 2017, the Company
issued 25,989,778 ordinary shares at an issue price of E0.5771, resulting in
the Company's overall issued share capital being 878,848,593 ordinary shares,
of which 1,062,058 were held in treasury. The total number of ordinary shares
with voting rights in the Company at this date was 877,786,535. Costs
associated with the equity raise amounted to E446,000.
On 7July 2017, the Company issued 487,166 ordinary shares out of treasury to
the Company's two Executive Directors and some of the Group's Senior
Management Team, pursuant to the Company's MSP incentive scheme. This resulted
in the Company's overall issued share capital being 878,848,593 ordinary
shares, of which 574,892 were held in treasury. The total number of ordinary
shares with voting rights in the Company at this date was 878,273,701.
Pursuant to an equity raise of E25.0 million on 4 August 2017, the Company
issued 39,888,185 ordinary shares at an issue price of £0.56, resulting in the
Company's overall issued share capital being 918,736,778 ordinary shares, of
which 574,892 were held in treasury. The total number of ordinary shares with
voting rights in the Company at this date was 918,161,886. Costs associated
with the equity raise amounted to E612,000.
Pursuant to a scrip dividend offering on 18 August 2017, the Company issued
7,991,787 ordinary shares at an issue price of £0.5621, resulting in the
Company's overall issued share capital being 926,728,565 ordinary shares, of
which 574,892 were held in treasury. The total number of ordinary shares with
voting rights in the Company at this date was 926,153,673.
The Company holds 574,892 of its own shares, which are held in treasury (31
March 2017: 1,062,058). During the period 487,166 shares were issued from
treasury.
No shares were bought back in the year.
21. Other reserves
Other distributable reserve
The other distributable reserve was created for the payment of dividends and
for the buyback of shares and is E488,801,000 in total at 30 September 2017
(31 March 2017: E470,318,000).
22. Dividends
In November 2016, the Company announced a dividend of 1.39c per share, with a
record date of 16 December for UK shareholders and 15 December 2016 for South
African shareholders, and payable on 20 January 2017. On the record date,
841,831,291 shares were in issue, of which 1,062,058 were held in treasury and
840,769,233 were entitled to participate in the dividend. Holders of
401,207,527 shares elected to receive the dividend in ordinary shares under
the Scrip Dividend Alternative, representing a dividend of E5,577,000, while
holders of 439,561,706 shares opted for a cash dividend with a value of
E6,182,000. The total dividend was E11,759,000.
On 4 July 2017, the Company announced a dividend of 1.53c per share, with a
record date of 14 July 2017 for UK and South African shareholders and payable
on 18 August 2017. On the record date, 878,848,593 shares were in issue, of
which 574,892 were held in treasury and 878,273,701 were entitled to
participate in the dividend. Holders of 329,660,344 shares elected to receive
the dividend in ordinary shares under the Scrip Dividend Alternative,
representing a dividend of E5,044,000, while holders of 548,613,357 shares
opted for a cash dividend with a value of E8,378,000. The total dividend was
E13,422,000.
The Group's profit attributable to the equity holders of the Company for the
six months to 30 September 2017 was E50.9 million (30 September 2016: E32.9
million). The Board indicated the possibility, in the Annual Report for the
year ended 31 March 2017, of temporarily increasing the dividend pay-out ratio
from its policy of paying 65% of FFO* in order to maintain dividend growth
trajectory whilst the proceeds from high income producing mature assets are
reinvested. The Board has declared a final dividend of 1.56c per share for the
period ended 30 September 2017, representing a temporary increase in the
pay-out ratio of 75% of FFO. The dividend will be paid on 19 January 2018,
with the ex-dividend dates being 13 December 2017 for shareholders on the
South African register and 14 December 2017 for shareholders on the UK
register. It is intended that dividends will continue to be paid on a
semi-annual basis and offered to shareholders in cash or scrip form.
The dividend paid per the statement of changes in equity is the value of the
cash dividend.
* Adjusted profit before tax adjusted for depreciation, amortisation of
financing fees, current tax receivable/incurred and tax relating to
disposals.
The dividend per share was calculated as follows:
(Unaudited)30 September 2017Em (Unaudited)30 September 2016Em 31 March 2017Em
Reported profit before tax 54.7 37.5 76.4
Adjustments for:
Surplus on revaluation (41.6) (25.4) (49.8)
Loss/(gain) on disposals 0.8 - (0.1)
Other adjusting items* 3.6 3.9 8.9
Change in fair value of financial derivatives - 0.1 (0.1)
Adjusted profit before tax 17.5 16.1 35.3
Adjustments for:
Depreciation 0.6 0.4 0.9
Amortisation of financing fees 0.6 0.6 1.2
Current taxes (incurred) (see note 9) (2.3) - (0.3)
Add back current tax relating to disposals 2.1 - -
Funds from Operations, year ended 31 March n/a n/a 37.1
Funds from Operations, six months ended 30 September 18.5 17.1 17.1
Funds from Operations, six months ended 31 March n/a n/a 20.0
Dividend pool, six months ended 30 September** 14.4 11.7 11.7
Dividend pool, six months ended 31 March n/a n/a 13.4
DPS, six months ended 30 September 1.56c 1.39c 1.39c
DPS, six months ended 31 March n/a n/a 1.53c
* Includes expenses relating to the main market move, restructuring
costs, the management LTIP gross of related tax
** Calculated as 75% of FFO of 2.07c per share (30 September 2016: 2.13c
per share using 65% of FFO; 31 March 2017: 2.38c per share using 65% of FFO),
based on average number of shares outstanding of 894,104,933 (30 September
2016: 803,512,009; 31 March 2017: 846,641,989).
23. Capital and other commitments
As at 30 September 2017, the Group had contracted capital expenditure on
existing properties of E6,378,000 (31 March 2017: E5,951,000) and commitments
of E2,461,000 (31 March 2017: E2,732,000) derived from office rental
contracts.
These commitments have not yet been provided for in the financial statements.
24. Post balance sheet events
On 3 November 2017, the Group notarised the acquisition of a property located
in Frickenhausen. Total acquisition costs are expected to be E11.2 million.
The property is a mixed-use business park and has a net lettable area of
28,594 sqm. The property is 49.6% occupied and let to 19 tenants, producing an
annual income of E800,839 and having a remaining weighted average lease term
of 2.9 years.
On 30 October 2017, the Group agreed to a facility agreement with SEB AG for
E30.0 million. The loan terminates on 30 October 2024 and is secured over
three property assets. The loan facility comprises a E23.0 million acquisition
facility and a E7.0 million capex facility. The acquisition and capex
facilities will initially have a margin of 1.88% which steps down to 1.78% at
the point at which occupancy of the portfolio exceeds 50% and to 1.68% at the
point occupancy of the portfolio exceeds 70%. E20.0 million of the acquisition
facility has been drawn down and hedged by way of a swap at an all-in fixed
interest rate of 2.58%. There is a requirement to hedge the remaining E3.0
million of the acquisition facility upon draw down. The capex facility is
charged at a floating rate of margin over 6 month EURIBOR. Amortisation is
calculated as 2% of the acquisition facility with the first repayment relating
to the quarter ending 31 March 2019 with the remainder due in the seventh
year.
Business Analysis
Table 5: Non-IFRS measures
(Unaudited)30 September 2017E000 (Unaudited)30 September 2016E000 31 March 2017E000
Reported profit for the period 50,909 32,877 66,936
Surplus on revaluation of investment properties (41,580) (25,370) (49,782)
Loss/(gain) on disposal of properties (including tax) 2,868 - (79)
Change in fair value of derivative financial instruments (7) 126 (133)
Deferred tax in respect of EPRA adjustments 1,890 4,738 9,245
EPRA earnings 14,080 12,371 26,188
Deduct non-controlling interest (24) (15) (25)
Add change in deferred tax relating to derivative financial instruments 22 40 23
Add change in fair value of derivative financial instruments 7 (126) 133
Headline earnings after tax 14,085 12,270 26,319
Add/deduct change in fair value of derivative financial instruments net of related tax (29) 86 (156)
Add adjusting items*, net of related tax 3,265 3,794 8,801
Adjusted earnings after tax 17,321 16,150 34,964
* See Note 10 of the Interim Report.
(Unaudited)30 September 2017E000 (Unaudited)30 September 2016E000 31 March 2017E000
EPRA earnings 14,080 12,371 26,188
Weighted average number of ordinary shares 894,104,933 803,512,009 822,957,685
EPRA earnings per share 1.57 1.54 3.18
Headline earnings after tax 14,085 12,270 26,319
Weighted average number of ordinary shares 894,104,933 803,512,009 822,957,685
Headline earnings per share 1.58 1.53 3.20
Adjusted earnings after tax 17,321 16,150 34,964
Weighted average number of ordinary shares 894,104,933 803,512,009 822,957,685
Adjusted earnings per share 1.94 2.01 4.25
Table 6:EPRA Net Assets per share at 30 September 17
E cents per share
Adjusted NAV per share at 31 March 17 58.82
Equity raise and Share awards 0.07
Recurring profit before tax 1.90
Surplus on revaluation 4.49
Scrip and Cash Dividend Paid (1.41)
Non Recurring Items (0.46)
Adjusted NAV per share at 30 September 17 63.40
EPRA Adjustments (1.53)
EPRA Net Assets per share at 30 September 17 61.87
Table 7: Original capex investment programme
Original capex investment programme progress sqm Investment budgetedE Actual spendE Annualisedrental incomeincreasebudgetedE Annualisedrental incomeincreaseachieved toSeptember 2017E Occupancybudgeted% Occupancy achieved% Rate per sqmbudgetedE Rate per sqmachievedE
Completed 173,519 19,582,000 16,258,000 9,957,000 9,660,000 85% 83% 5.63 5.59
In progress 23,097 5,938,000 844,000 1,652,000 133,000 88% - 6.77 -
To be commenced 7,060 815,000 1,000 304,000 - 67% - 5.36 -
Total 203,676 26,335,000 17,103,000 11,913,000 9,793,000 85% - 5.73 -
* E0.7 million of further spending on completed projects is expected.
Table 8: New acquisition capex investment
Newacquisition capexinvestment programmeprogress sqm InvestmentbudgetedE ActualspendE Annualisedrental incomeincreasebudgetedE Annualisedrental incomeincreaseachieved toSeptember 2017E Occupancy budgeted% Occupancyachieved% Rate per sqmbudgetedE Rate per sqmachievedE
Completed 12,153 1,892,000 1,009,000 1,654,000 1,149,000 91% 68% 12.46 11.65
In progress 13,376 5,239,000 365,000 1,010,000 - 84% - 7.49 -
To be commenced 53,721 12,388,000 1,000 3,994,000 - 81% - 7.65 -
Total 79,250 19,519,000 1,375,000 6,658,000 1,149,000 83% - 8.44 -
Table 9: Smartspace
Smartspace product type Totalsqm Occupiedsqm Occupancy% Annualisedrental income(excl. servicecharge)E % of totalannualisedrental income Rate per sqm(excl. service charge)E
Smartspace Office 30,268 24,378 81% 2,305,000 51% 7.88
Smartspace Workbox 6,268 4,699 75% 344,000 8% 6.09
Smartspace Storage 29,855 21,411 72% 1,510,000 34% 5.88
Subtotal 66,391 50,488 76% 4,159,000 93% 6.86
Smartspace Flexilager 11,998 5,268 44% 323,000 7% 5.11
Smartspace total 78,389 55,755 71% 4,482,000 100% 6.70
Table 10: Acquisitions progress
Site Dateacquired TotalacquisitioncostE Market value(rounded)E Market valueincrease% Annualisedacquisitionrental incomeE Annualisedrental incomeat September 2017E Annualisedrental incomeincrease%
Mahlsdorf Dec-14 19,574,000 25,500,000 30% 1,786,000 2,052,000 15%
Potsdam Dec-14 29,353,000 37,200,000 27% 2,347,000 2,797,000 19%
Bonn II Feb-15 3,316,000 6,850,000 107% 531,000 390,000 (27)%
Aachen I Jan-15 18,693,000 24,400,000 31% 1,751,000 2,220,000 27%
Ludwigsburg Sep-15 7,443,000 11,800,000 59% 969,000 1,305,000 35%
Weilimdorf Sep-15 5,699,000 5,730,000 1% 511,000 511,000 0%
Heidenheim Sep-15 18,320,000 22,700,000 24% 1,846,000 1,956,000 6%
Cölln Parc Oct-15 18,586,000 19,700,000 6% 1,469,000 1,480,000 1%
Aachen II Nov-15 7,340,000 7,370,000 0% 532,000 561,000 5%
Mainz Mar-16 25,074,000 28,400,000 13% 2,219,000 2,490,000 12%
Markgröningen May-16 8,720,000 15,300,000 75% 1,322,000 1,378,000 4%
Krefeld May-16 13,475,000 13,800,000 2% 1,219,000 1,219,000 0%
Dresden Sep-16 28,600,000 30,000,000 5% 2,781,000 2,890,000 4%
Total 204,193,000 248,750,000 22% 19,283,000 21,249,000 10%
Site Dateacquired Acquisitionoccupancy% September 2017occupancy% Occupancyincrease% Capex sinceacquisition toSeptember 2017E
Mahlsdorf Dec-14 85% 91% 6% 1,301,000
Potsdam Dec-14 85% 99% 14% 496,000
Bonn II Feb-15 76% 59% (18)% 202,000
Aachen I Jan-15 75% 91% 16% 1,317,000
Ludwigsburg Sep-15 68% 79% 11% 876,000
Weilimdorf Sep-15 100% 100% 0% 55,000
Heidenheim Sep-15 83% 86% 3% 409,000
Cölln Parc Oct-15 90% 95% 6% 188,000
Aachen II Nov-15 97% 100% 3% 8,000
Mainz Mar-16 83% 92% 9% 517,000
Markgröningen May-16 67% 74% 7% 281,000
Krefeld May-16 94% 89% (4)% 44,000
Dresden Sep-16 66% 68% 2% 429,000
Total 78% 83% 5% 6,123,000
Glossary of terms
Adjusted NAV is the assets attributable to the equity holders of the Company
adjusted for deferred tax and derivative financial instruments
Annualised rental income is the contracted rental income of a property at a
specific reporting date expressed in annual terms
Capital value is the market value of a property divided by the total sqm of a
property
Funds from operations is reported profit before tax adjusted for property
revaluation, gain/loss on disposals, change in the fair value of derivative
financial instruments, adjusting items, depreciation, amortisation of
financing fees and current tax receivable/incurred
Gross loan to value ratio is the ratio of principle value of total debt to the
aggregated value of investment property
Gross yield is the annualised rental income generated by a property expressed
as a percentage of its value
Like-for-like refers to the manner in which metrics are subject to adjustment
in order to make them directly comparable. Like for like adjustments are
typically made in relation to annualised rental income, rate and occupancy and
eliminate the effect of asset acquisitions and disposals that occur in the
reporting period
Net loan to value ratio is the ratio of principle value of total debt less
cash, excluding that which is restricted, to the aggregate value of investment
property
Net operating income is the income generated by a property less directly
attributable costs
Net yield is the net operating income generated by a property expressed as a
percentage of its value
Occupancy is the percentage of total lettable space occupied as at reporting
date
Rate is rental income per sqm expressed on a monthly basis as at a specific
reporting date
Total debt is the aggregate amount of the Company's interest bearing loans and
borrowings
Total shareholder return based on adjusted NAV is the return obtained by a
shareholder calculated by combining both movements in adjusted NAV per share
plus dividends paid
Total return is the return for a set period of time combining valuation
movement and income generated
Corporate directory
Registered office
Trafalgar Court
2nd Floor
East Wing
Admiral Park
St Peter Port
Guernsey GY1 3EL
Channel Islands
Registered number
Incorporated in Guernsey under the Companies (Guernsey) Law, 2008, as amended,
under number 46442
Company Secretary
A L Bennett
Sirius Real Estate Limited
Trafalgar Court
2nd Floor
East Wing
Admiral Park
St Peter Port
Guernsey GY1 3EL
UK solicitors
Norton Rose Fulbright LLP
3 More London Riverside
London SE1 2AQ
Financial PR
Novella Communications
1a Garrick House
Carrington Street
London W1J 7AF
Johannesburg Stock Exchange sponsor
PSG Capital Proprietary Limited
1st Floor, Ou Kollege
35 Kerk Street
Stellenbosch
7600
South Africa
Joint broker
Peel Hunt LLP
Moor House
120 London Wall
London EC2Y 5ET
Berenberg
60 Threadneedle Street
London EC2R 8HP
Property valuer
Cushman & Wakefield LLP
Rathenauplatz 1
60313 Frankfurt am Main
Germany
Independent auditors
KPMG LLP
15 Canada Square
London
E14 5GL
Guernsey solicitor
Carey Olsen
Carey House
Les Banques
St Peter Port
Guernsey GY1 4BZ
This information is provided by RNS
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