REG - Sirius Real Estate - Half-year Report
18/11/2024 07:00
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RNS Number : 5848M Sirius Real Estate Limited 18 November 2024
SIRIUS REAL ESTATE LIMITED
(Incorporated in Guernsey)
Company Number: 46442
JSE Share Code: SRE
LSE (GBP) Share Code: SRE
LEI: 213800NURUF5W8QSK566
ISIN Code: GG00B1W3VF54
18 November 2024
Sirius Real Estate Limited
("Sirius Real Estate", "Sirius", the "Group" or the "Company")
Interim results for the six months ended 30 September 2024
Strong operational results drive FFO and dividend growth
Sirius Real Estate, the leading owner and operator of branded business and
industrial parks providing conventional space and flexible workspace in
Germany and the U.K., announces its consolidated financial results for the six
months to 30 September 2024.
Strong operational platform continues to drive rental and FFO growth
• 11.7% increase in total revenue to €156.5m (30 September 2023:
€140.1m)
• 14.9% increase in total annualised rent roll and a 5.5% increase in
Group like-for-like annualised rent roll (30 September 2023: 7.7%)
• 5.8% increase in like-for-like annualised rent roll in Germany to
€129.6m (30 September 2023: €122.5m) and 4.9% in the UK to £51.6m
(€61.8(1)m) (30 September 2023: £49.2m (€58.9(1)m)) demonstrating
continued improvement of the assets and occupier demand
• 14.5% growth in funds from operations(2) (FFO) to €60.7m (30
September 2023: €53.0m) demonstrating continued strong operational
performance
• 13.7% increase in Net Operating Income(3) (NOI) to €92.4m (30
September 2023: €81.3m)
• 53.8% increase in profit before tax to €61.2m (30 September 2023:
€39.8m)
• 17.0% increase in adjusted profit before tax to €58.4m (30
September 2023: €49.9m) excluding property valuations
• 0.5% decrease in adjusted earnings per share, which excludes
valuation movements as well as other expenses not included in FFO, to 4.19c
per share (30 September 2023: 4.21c) reflecting the dilutive effect of the
equity raises in November 2023 and July 2024 pending the making of new
acquisitions
• 2.0%(4) increase in dividend per share to 3.06c (30 September
2023: 3.00c)
Valuations underpinned by income
• 1.2% increase in adjusted net asset value(3) (NAV) per share to
112.49c (31 March 2024: 111.12c per share)
• Increase in owned investment property to €2,349.0m (31 March 2024:
€2,186.7m), of which Germany contributed €65.5m and the UK €96.8m,
including a €11.5m valuation uplift in Germany and €7.9m valuation
reduction in the UK
• Group EPRA net initial yield of 6.9% (31 March 2024: 6.8%) with
Germany and the UK stable 6.3% (31 March 2024: 6.3%) and 8.8% (31 March 2024:
8.8%) respectively
• Like-for-like Group occupancy remained stable at 84.1% (30 September
2023: 84.2%) with Germany increasing to 83.6% (30 September 2024: 83.3%) and
the UK decreasing to 86.6% (30 September 2023: 88.3%)
• 4.4% increase in Germany in like-for-like average rental rate to
€7.39 per sqm (30 September 2023: €7.08 per sqm) and 7.0% increase in the
UK to £14.78 per sq ft (€15.87(1) per sqm) from £13.81 per sq ft
(€14.33(1) per sqm) at 30 September 2023
Strong balance sheet and acquisition firepower
• €174.6m in equity raised (net of costs) in July 2024 and an
additional €59.9m from its €300m 1.75% bonds due November 2028 to provide
fire power for the Company's acquisition pipeline
• Weighted average cost of debt remained stable at 2.1% in the period
(31 March 2024: 2.1%) with a weighted average debt expiry of 3.5 years (31
March 2024: 4.0 years)
• Net LTV of 30.5% (31 March 2024: 33.9%), including cash at bank of
€297.6m (31 March 2024: €214.5m)
• Fitch reaffirmed its BBB investment grade rating with "Stable
Outlook" on 31 October 2024
Successful Acquisition Programme
• €141.5m invested in acquisitions at attractive net initial yields
across Germany and the UK since 1 April 2024, with €126.1m invested in the
period of which €90.1m invested in the UK and €36.0m in Germany. Post
balance sheet, the Company invested €3.8m in the acquisition of a strategic
land parcel near its Oberhausen asset in Germany and €11.6m in the
acquisition of a business park in Carnforth, UK for a total investment of
€15.4m in the period.
Outlook
• Through its strong balance sheet and extensive operating platform,
Sirius remains well positioned to take advantage of opportunities to make
accretive acquisitions.
1 The Company has chosen to disclose certain Group rental income figures
utilising a constant foreign currency exchange rate of GBP:EUR 1.1970, being
the closing exchange rate as at 30 September 2024.
2 See note 23 of the Interim Report 2024.
3 See Glossary of Terms of the Interim Report 2024.
4 Interim dividend representing 71% of FFO (30 September 2023: 66% of
FFO).
Commenting on the period, Andrew Coombs, Chief Executive Officer of Sirius
Real Estate, said: "Sirius has continued to deliver robust performance over
the first six months of the financial year, achieving like-for-like rent roll
growth well in excess of inflation and a 14.5% year-on-year increase in FFO.
This has underpinned our decision to make our 22(nd) consecutive dividend
increase and is testament Sirius' proven ability to drive organic growth
through intensive asset management initiatives, reinforced by resilient
occupier demand for space within our portfolio, alongside the contribution
from a series of well-timed acquisitions.
"The equity and bond financings during the period demonstrate continued
support from shareholders and debt partners to finance the Company's
operations throughout the property cycle. With nearly €300m of cash and a
healthy net LTV ratio of 30.5%, we have significant sufficient firepower to
act opportunistically and make earnings accretive acquisitions as they arise,
reinforcing our ability to continue delivering strong returns and a
progressive dividend for our shareholders.
"Whilst mindful of an evolving political landscape in our two markets, the
Company's outlook remains positive: our dynamic business model, diversified
offering and strong cash position mean we are ideally positioned to continue
building scale. There remain a number of levers at our disposal that can be
pulled to unlock value and grow rental income within the current portfolio
which, combined with an active asset recycling programme and the ability to
fuel our pipeline, provides us with confidence in our prospects."
Webcast Presentation
Webcast Conference
There will be an in person presentation for analysts at 09.00am (10.00am CET/
11.00am SAST) today, hosted by Andrew Coombs, Chief Executive Officer of
Sirius Real Estate, and Chris Bowman, Chief Financial Officer. This will be
held at Berenberg's offices: 60 Threadneedle Street, London EC2R 8HP
For those unable to join in person, there will be an audio webcast
presentation, with registration available via the link below:
https://stream.brrmedia.co.uk/broadcast/6705415c5c401b3f3883061e
(https://stream.brrmedia.co.uk/broadcast/6705415c5c401b3f3883061e)
For further information:
Sirius Real Estate
Andrew Coombs, CEO / Chris Bowman, CFO
+44 (0) 20 3059 0855
FTI Consulting (Financial PR)
Richard Sunderland / Ellie Sweeney / James McEwan
+44 (0) 20 3727 1000
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 U.K. As of 30
September 2024, the Group's owned portfolio comprised 145 assets let to 10,025
tenants with a total book value of €2.4 billion, generating a total
annualised rent roll of €214 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
and BizSpace names 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 refinance or dispose of assets selectively 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.
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 X (Twitter) at @SiriusRE
JSE Sponsor
PSG Capital
Business update
Acquisition programme supports total rent roll growth
Total annualised rent roll
€214.0m(1)
14.9%
2024 €214.0m
2023 €186.2m
Net Operating Income
€92.4m
13.7%
2024 €92.4m
2023 €81.3m
Funds from operations(2)
€60.7m
14.5%
2024 €60.7m
2023 €53.0m
Profit before tax
€61.2m
53.8%
2024 €61.2m
2023 €39.8m
Interim dividend
3.06c per share
2.0%(4)
2024 3.06c
2023 3.00c
Basic earnings per share
3.92c per share
44.6%
2024 3.92c
2023 2.71c
Adjusted NAV per share
112.49c per share
1.2%
2024 112.49c
2024* 111.12c
1 The Company has chosen to disclose certain Group rental income
figures utilising a constant foreign currency exchange rate of GBP:EUR 1.1970,
being the closing exchange rate as at 30 September 2024.
2 See note 23 of the Interim Report 2024.
3 See Glossary of Terms of the Interim Report 2024.
4 Interim dividend representing 71% of FFO (30 September 2023: 66% of
FFO).
* 31 March 2024 comparative
In summary:
• Sirius continues to deliver like-for-like rent roll growth well ahead
of inflation, which coupled with the contribution from a well-timed series of
successful acquisitions has driven total rent roll growth by 14.9% year on
year. With a strong balance sheet the Company has sufficient fire power to
continue to act on accretive opportunities as they arise which should continue
to deliver strong returns and a progressive dividend to our shareholders
• The Company looks ahead with confidence and continues to trade in
line with management expectations for the full year.
Key Group highlights:
Metric 30 September 2024 30 September 2023 Movement Movement %
Total annualised rent roll* (€m) 214.0 186.2 27.8 14.9%
Like-for-like annualised rent roll* (€m) 191.4 181.4 10.0 5.5%
Average rate (€) per sqm* 8.86 8.52 0.34 4.0%
Average rate (€) per sqm like for like* 8.93 8.53 0.40 4.7%
Total occupancy (%) 84.2% 84.1% 0.1% 0.1%
Like for like occupancy (%) 84.1% 84.2% (0.1)% (0.1)%
Cash in bank (€m) 297.6 91.2 206.4 226.3%
Cash collection (%) 97.3% 97.5% (0.2)% (0.2)%
* The Company has chosen to disclose certain Group rental income
figures throughout utilising a constant foreign currency exchange rate of
GBP:EUR 1.1970, being the closing exchange rate as at 30 September 2024,
throughout this document.
Overview
The Group is pleased to report continued trading in line with expectations,
with Group total annualised rent roll increasing by 14.9%* year-on-year and
like-for-like Group annualised rent roll growth of 5.5%* compared to the prior
year.
In Germany, rent roll growth benefited from strong rate growth, well ahead of
inflation, which has normalised to pre-Covid levels, whilst occupancy reduced
slightly due to known and expected move-outs at the beginning of the period.
We see occupancy levels improving in the second half of the year as we utilise
our proprietary asset management platform to maximise the value we generate
from our space. Modest valuation uplifts in the period demonstrate the
resilience of our German portfolio, driven by rental growth and yields
stabilising.
In the UK, total rent roll growth is ahead of our German operations reflecting
the higher quantum of acquisitions compared to Germany. Occupancy contracted
slightly in the UK due to seasonal move outs, yet strong like-for-like rate
growth supported overall rent roll growth. Nonetheless the UK portfolio
experienced a modest decrease in valuation in line with an expansion in yields
in the sector.
The 5.5%* year-on-year like-for-like annualised rent roll growth reflects the
Company's ability to grow rent roll organically ahead of inflation, which has
returned to pre-crisis levels of around 2% in both Germany and the UK.
Year-on-year, like-for-like annualised rent roll in Germany increased by 5.8%
(30 September 2023: 7.0%) and total rent roll increased by 7.8% (30 September
2023: 8.9%). The UK enjoyed a boost to rent roll, as its acquisition programme
drove total year-on-year rent roll growth to 29.6% (30 September 2023: 9.0%),
whilst year-on-year like-for-like annualised rent roll increased by 4.9% (30
September 2023: 9.0%). These developments over the period have helped the
Group report a 14.5% growth in FFO to €60.7m (30 September 2023: €53.0m).
The strong trading underpins the board's confidence to declare a 2.0% increase
in the interim dividend to 3.06c per share compared to the 3.00c paid in
respect of the first half last year. Adjusted NAV per share grew 1.2% to
112.49c per share (31 March 2024: 111.12c per share) in the six-month period,
driven by acquisitive growth which led to an uplift of 7.4% in the valuation
of owned investment property to €2,349.0m from €2,186.7m as at 31 March
2024 which includes €126.1m in property acquisitions in the period.
The Group's balance sheet remains strong with a net LTV of 30.5% (31 March:
33.9%), a weighted average debt expiry of 3.5 years (31 March 2024: 4.0 years)
and a weighted average cost of debt of 2.1% (31 March 2024: 2.1%). The Company
has €297.6m of cash in the bank which following its €174.6m equity raise
(net of costs) in July 2024 is being actively deployed into our acquisition
pipeline. In addition to the equity raise in July, the Company tapped its
€300m 1.75% bonds due November 2028, issued originally on 18 November 2021,
for €59.9m of nominal value. The Company has not had any loans falling due
in the period and is expecting to refinance or repay its remaining €15.0m in
HSBC Schuldschein debt and €13.0m in secured Sparkasse debt in the final
quarter of the fiscal year. The equity and bond financing in the period
demonstrates continued support from the Company's shareholders and debt
partners to finance its operations throughout the property cycle.
* The Company has chosen to disclose certain Group rental income figures
utilising a constant foreign currency exchange rate of GBP:EUR 1.1970, being
the closing exchange rate as at 30 September 2024.
Financial performance
Excluding the effects from gains and losses from the revaluation of investment
properties, profit before tax increased by 17.0% to €58.4m (30 September
2023: €49.9m) demonstrating continued strong operational performance. Total
revenue, which comprises rental income, fee income from our investment in
associates, other income from investment properties and service charge income,
increased by 11.7% to €156.5m (30 September 2023: €140.1m). The Company
reported a profit before tax for the six-month period of €61.2m (30
September 2023: €39.8m) which includes €3.6m of gain* from investment
property revaluations of its owned assets (30 September 2023: €9.6m
deficit*).
* Net of capex and broker fees and before adjustments in relation to
lease incentives.
FFO for the six months grew to €60.7m (4.29c per share) compared to €53.0m
(4.53c per share) for the same period in the prior year. The decrease of 5.5%
on a per share basis reflects the dilutive effect of the November 2023 and
July 2024 equity raises pending the making of new acquisitions. Reported
profit after tax of €55.5m and basic earnings per share of 3.92c compares to
€31.7m and basic earnings per share of 2.71c in the prior year, reflecting
primarily higher rental income and valuations. Adjusted earnings per share,
which excludes valuation movements as other expenses not included in FFO,
decreased by 0.5% to 4.19c per share from 4.21c in the prior year, reflecting
the impact of dilution from the equity raise and the timing effects of the
acquisition programme.
The following table sets out the key earnings per share metrics:
Table 1: Earnings per share
six months six months
ended ended
30 September 2024 30 September 2023
Earnings No. of shares Cents Earnings No. of shares Cents Change
€m per share €m per share %
Basic EPS 55.5 1,415,498,735 3.92 31.7 1,169,697,061 2.71 44.6%
Diluted EPS 55.5 1,435,133,744 3.87 31.7 1,185,416,141 2.67 44.9%
Adjusted EPS 59.3 1,415,498,735 4.19 49.3 1,169,697,061 4.21 (0.5)%
Basic EPRA EPS 56.5 1,415,498,735 3.99 48.2 1,169,697,061 4.12 (3.2)%
Diluted EPRA EPS 56.5 1,435,133,744 3.94 48.2 1,185,416,141 4.07 (3.2)%
The Directors have chosen to disclose EPRA earnings, which are widely used
alternative metrics to their IFRS equivalents (further details on EPRA best
practice recommendations can be found at www.epra.com). Refer to note 2(c) for
further information.
Net asset value (NAV) per share grew to 106.74c (31 March 2024: 104.96c) in
the period whilst adjusted net asset value (adjusted NAV) per share increased
by 1.2% to 112.49c (31 March 2024: 111.12c). EPRA net tangible assets (EPRA
NTA) per share increased by 1.0% to 110.91c (31 March 2024: 109.82c). The
valuation metrics are described in more detail below and the movement in net
asset value per share in the period can be seen in the following table:
Table 2: Net assets per share
cents per share
NAV per share as at 31 March 2024 104.96
Profit after tax 3.94
Gain on revaluation of investment properties 0.23
Deferred tax charge (0.26)
Cash dividend paid (2.75)
Share-based payments including vesting (0.32)
Foreign currency 0.87
Equity raise 0.29
Adjusting items (0.22)
NAV per share as at 30 September 2024 106.74
Deferred tax and adjustments to financial derivatives* 5.75
Adjusted NAV per share as at 30 September 2024 112.49
EPRA adjustments* (1.58)
EPRA NTA per share as at 30 September 2024 110.91
* See note 11 of the Interim Report.
Lettings and rental growth
Rental growth
Germany
In Germany, like-for-like year-on-year annualised rent roll increased by 5.8%
to €129.6m (30 September 2023: €122.5m). Even as inflation normalised in
the period to pre-crisis levels hovering around 2.0%, the Company was able to
support its rent roll growth through increasing its average like-for-like
rental rate per sqm ahead of inflation by 4.4% to €7.39 per sqm from €7.08
per sqm in the prior year. Despite expected move-outs like-for-like occupancy
remained stable at 83.6% (30 September 2023: 83.3%) as well as total occupancy
at 83.8% (30 September 2023: 83.3%).
UK
In the UK, year-on-year annualised rent roll increased by 29.6% to £65.7m
(€78.6*m) (30 September 2023: £50.7m (€60.7*m)) predominantly driven by
its recent successful asset acquisition programme, with eight property
acquisitions from H1 23 contributing a total of £13.5m (€16.1*m) annualised
rent roll as at 30 September 2024. Average rental rates decreased by 8.4% to
£12.62 per sq ft (€13.55* per sqm) from £13.78 per sq ft (€14.30* per
sqm) as at 30 September 2023 due to the newly acquired Vantage Point in
Gloucester, which given its scale and low average rental rate per square foot,
with its high levels of warehousing and production, contributes to a reduction
at portfolio level.
Like-for-like year-on-year annualised rent roll increased by 4.9% to £51.6m
(€61.8*m) (30 September 2023: £49.2m (€58.9*m)). Despite a drop in
like-for-like occupancy to 86.6% (30 September 2023: 88.3%) for the period,
the Company leveraged its operational platform to grow annualised rent roll
through a focus on pricing initiatives across the existing tenant base and
replacing its move outs at a higher rates. As a result, the Company achieved a
7.0% increase on its average like-for-like rental rate in the period to
£14.78 per sq ft (€15.87* per sqm) from £13.81 per sq ft (€14.83* per
sqm) as it took advantage of replacing its move outs at a higher rate,
contributing positively to rent roll growth. The Company expects to fill this
vacant space in the next few months utilising its internal platform which
continues to see high demand in the industrial and flexible workspace markets,
as well as attract tenants at higher rates.
* The Company has chosen to disclose certain Group rental income
figures throughout utilising a constant foreign currency exchange rate of
GBP:EUR 1.1970, being the closing exchange rate as at 30 September 2024,
throughout this document.
Cash collection
As rental rates continue to increase in both Germany and in the UK, the value
of the Company's in-house team of cash collection professionals who maintain
close working relationships with tenants is key to the Company's success in
collecting its debts. The Company has been successful in maintaining
consistent cash collection rates across the Group of 97.3% (30 September 2023:
97.5%) for the period with the 12 month rolling rate at a stable 98.1% (30
September 2023: 98.1%).
Germany
The 12 month rolling cash collection rate of 97.5% is slightly lower compared
to 97.8% in the comparative prior period. In the six months to 30 September
2024, the Company increased its tenant billings by 4.2% to €101.6m
(excluding VAT) (30 September 2023: €97.5m), of which €98.1m or 96.6% was
collected, slightly behind the 97.1% collected in the prior comparative
period, mainly due to timing of collection of rents. The Company expects to
collect the majority of the €3.5m outstanding debts through its regular
collection activities over the coming months. The Company had only
insignificant write offs in the period.
UK
BizSpace's 12 month rolling cash collection rate, remained consistently strong
at 99.7% compared to 98.9% in the comparative prior period. Of the £31.3m
(excluding VAT) (€36.9m) which was billed in the period, £31.1m (€36.7m)
or 99.4% was collected. The remaining £0.2m (€0.2m) is expected to be
collected as part of its regular collection activities over the coming months.
The Company had only insignificant write offs in the period.
Portfolio valuation
Group
Total investment property book value, including leased investment properties
of €23.6m as recognised in accordance with IFRS as at 30 September 2024 was
€2,372.6m (31 March 2024: €2,210.6m). A revaluation loss of €0.6m
representing the fair value adjustment in the period was recorded in the
income statement on these leased investment properties. Owned investment
property has been independently reviewed by Cushman and Wakefield.
Germany
In addition to the €36.0m of acquisitions in the period relating to
investment property, the €29.5m increase in value of the owned investment
properties in the German portfolio was made up of €18.2m of capex investment
and €11.5m of valuation uplift and €0.2m adjustment with respect to lease
incentives on the back of the 1.2% increase in like-for-like rental income.
The portfolio is now valued on a gross yield of 7.6% and a net yield of 6.8%
compared to 7.5% and 6.8% respectively as at 31 March 2024. Despite ongoing
pressures on the commercial property market in Germany, yields are beginning
to stabilise.
As at the period end, just over 60% of the total portfolio comprised assets
benefiting from both income and value-add potential which will be realised
through Sirius' intensive asset management and selective capex investment over
the next few years. These assets now have an average occupancy of 79.8% and
are valued on a gross yield of 7.9%, compared to the Company's mature assets
which are on average around 93.9% occupied and valued on a gross yield of
6.8%. Unlocking the potential in the value-add portfolio will come from
filling up sites and stabilising their rental income. This will be achieved
through our strategy of making the properties much more appealing to a wider
market which includes the lower cost of capital investors who buy these types
of assets on much tighter yields. Hence, we would expect to see the gap
between the yields of the value-add assets and mature assets tighten as the
value-add assets approach maturity. This is why the capex investment
programme, which has so successfully and consistently improved occupancy,
rental income, service charge cost leakage and overall quality of the rent
roll and sites in general, has proven to be extremely value accretive.
UK
In addition to the €90.1m of acquisitions in the period relating to
investment property and €2.2m of disposals in the period, the €8.9m
increase in the value of owned investment properties was made up of €4.6m of
capex investment, €7.9m of valuation deficit offset by a favourable foreign
currency translation adjustment of €12.2m.
The 30 September 2024 book value of the UK portfolio, which was independently
valued by Cushman & Wakefield LLP, was £466.5m (€558.7m) (31 March
2024: £394.7m (€461.6m)), representing an average gross yield of 14.1% (31
March 2024: 14.0%), and translating to a net yield of 9.3% (31 March 2024:
9.2%). Of the £71.8m (€97.1m) increase in property value when compared to
31 March 2024, £73.5m (€94.9m) is attributed to the acquisition of 3
properties offset by the disposal of 2 properties (£1.9m, €2.2m) made
during the first half of the year.
The like-for-like value of the UK portfolio was £393.0m (€470.5m), which
was £0.2m/0.1% higher than the 31 March 2024 valuation of £392.8m
(€459.4m). Despite like-for-like values being broadly flat during the first
half of the year, the UK saw approximately 10bps of like-for-like net yield
expansion to 9.4% (March 2024: 9.3%), which was fully offset by 1.9%
like-for-like annualised rent roll growth across the same period.
The average capital value of the portfolio of £77 per sq ft (€989 per sqm)
(31 March 2024: £91 per sq ft (€1,150 per sqm) remains below replacement
cost and further supports the sentiment that there remains value-add potential
within the portfolio.
German capex investment programme
The Group's capex investment programme in relation to its German assets has
historically been focused on the transformation of poor-quality vacant space
that is typically acquired at very low cost due to it often being considered
as structural vacancy by former owners. The transformation and take up of this
space have not only resulted in significant income and valuation improvements
for the Company but have also yielded significant improvements in service
charge cost recovery and therefore further enhanced the improvements to net
operating income. The programme started in 2015 and to date 448,447 sqm of
space has been completed for an investment of €72m. As at 30 September 2024,
this space was generating €29.8m in annualised rent roll (at 72% occupancy)
as well as delivering a substantial improvement in the recovery of service
charge costs. This transformed space has also been the major contributor
towards the large valuation increases seen in the portfolio over the last 9.5
years.
In addition to the space that has been completed and let or is currently being
marketed, a total of approximately 32,900 sqm of space is either in the
process of being transformed or is awaiting approval to commence
transformation. The Group is on track to invest €5.3m into its capex
investment programme this financial year and expects to generate return on
investment via rental income alone in excess of 40%.
In addition to the capex investment programme on acquired "structural" vacant
space, Sirius continually identifies and looks for opportunities to upgrade
the space that is vacated each year as a result of move-outs. Within the
existing vacancy as at 30 September 2024, the Company has identified
approximately 54,069 sqm of vacated space that has potential to be
significantly upgraded before it is re-let. This space will require an
investment of approximately €6.7m and, at current rates, is expected to
generate greater than 50% return on investment in annualised rent roll when
re-let. Upgrading this vacated space allows the Company to enhance the
reversionary potential of the portfolio further whilst significantly improving
the quality, desirability and hence value of not only the space that is
invested into but also the whole site.
The German portfolio's headline 84% occupancy rate means that in total 295,319
sqm of space is vacant as at 30 September 2024. When excluding the vacancy
that is subject to investment (4% of total space), and the structural vacancy,
which is not economically viable to develop (3% of total space), the Company's
occupancy rate based on space that is readily lettable is approximately 91%.
Whilst the capex investment programmes are a key part of Sirius' strategy,
they represent one of several ways in which the Company can organically grow
income and capital values. A wide range of asset management capabilities
including the capturing of contractual rent increases (especially whilst
inflation is high), uplifts on renewals and the re-letting of space at higher
rates are expected to continue to contribute to the Company's annualised rent
roll growth going forward
Asset recycling, acquisitions and disposals
Recycling equity from mature assets into new value-add acquisitions has always
been a significant part of the Sirius business model. It benefits the Company
in many ways including: a) proving enhanced valuations that can also be
crystallised; b) replenishing the growth opportunity within the vacancy and
the capex investment programme; and c) being accretive to FFO per share (and
therefore dividend per share), with a consequent contribution to NAV per share
growth. This is an element of the Company's strategy which Sirius is able to
execute effectively throughout the property cycle and this has been evidenced
by the Company's continued asset recycling initiatives.
Acquisitions
The Company completed on six acquisitions in the period across the Group as
part of its continuing asset acquisition programme, with two additional
investments post balance sheet date. Utilising funds from its equity raises,
€141.5m was invested across the Group, of which €126.1m was invested in
the period. In the UK investments amounted to €101.7m of which €90.1m was
in the period and Germany rounded out the acquisition programme with €39.8m
invested of which €36.0m occurred in the period. Light industrial assets,
with day one rental income, at attractive yields, yet with value-add
opportunities were the focus in the period.
In the UK, the Company acquired the £49.7m (€58.6m) Vantage Point business
park in Gloucester in April 2024, comprising 1,464,664 sg ft (136,071 sqm of
warehouse, production, storage and conventional and service office to 70
companies at 81% occupancy at an annual rent roll of £5.1m (€6.0m). The
acquisition at an NIY of 10.2% (total acquisition costs) marks a key
milestone, being the largest ever single-site acquisition for the UK business.
Included in the total purchase price is £6.5m (€7.9m) of property plant and
equipment relating to the purchase of the solar assets on the park.
In June 2024 two acquisitions were completed as part of the acquisition
programme in Banbury and Wembley, in highly desirable locations close to good
transport networks, for a total investment of £33.2m (€39.4m). Banbury, is
a fully let industrial asset, comprising 472,910 sq ft (43,934 sqm),
generating an NOI of £2.4m (€2.8m) to two tenants on full repairing and
insuring leases at a net initial yield of 9.1%. Wembley is a multi-let light
industrial building comprised 19,145 sq ft (1,779 sqm), generating an NOI of
£0.6m (€0.7m) at a net initial yield of 9.3%. These assets bring day one
income to the business, with several areas of optimisation identified by the
asset management platform to drive growth.
Post balance sheet, the Company completed the purchase of the Carnforth site
located north of Lancaster for a total investment of £9.7m (€11.6m). The
site adds 172,151 sq ft (15,933 sqm) of light industrial space, generating an
NOI of £1.1m (€1.3m) and is let to eight tenants on full repairing and
insuring leases representing a net initial yield including acquisition costs
of 11.4%.
In Germany, the Company completed on the Klipphausen and Göppingen assets for
total additions to investment property of €34.9m. Klipphausen, which was
purchased for €14.6m of which €1.0m relates to property plant and
equipment, comprises 17,683 sqm of modern light industrial and production
space, generating €2.4m NOI at 100% occupancy. The site is located near the
highly desirable city of Dresden, presenting significant value add opportunity
through the planned move out of its main tenant. The interest in the site
generated from the Company's asset management platform has already generated
interest in leasing space exceeding the available space. Furthermore, the
Company invested €21.4m in Göppingen, which is located just south-east of
Stuttgart. The site comprised 35,132 sqm of mainly industrial space generating
an NOI of €1.5m at 87% occupancy and a net initial yield of 6.9%. In
addition, the Company purchased an office building of €1.0m adjacent to its
Dresden business as part of its "Buy Your Neighbour" campaign.
Post balance sheet, the Company completed the purchase of a 35,894 sqm
strategic land parcel for €3.8m adjacent to its 77,600 sqm Oberhausen
multi-use business park in the Ruhr area of northwest Germany, providing the
opportunity to expand the park through a potential development.
Disposals
The Company disposed of two sub-scale, non-core properties in the UK for a
combined total of £1.9m (€2.2m). These sites in Letchworth and
Hartlepoolwere both sold above book value and at a combined 7.7% premium. Both
assets, with a lettable space of just over 60,000 sq ft contributed a total
annualised NOI of approximately £0.2m, were sold in the period.
A summary of the acquisitions and disposals transacted during the period is
set out in the tables below:
Table 3a: Acquisitions - Germany
Notarised/completed for acquisition Date Total Total Annualised Annualised Occupancy Gross yield*
investment acquired rental NOI
€m sq m income €m
€m
Göppingen Apr 24 21.4 35,132 1.8 1.5 87% 8.3%
Klipphausen** Apr 24 14.6 17,683 2.4 2.4 100% 16.4%
Total 36.0 52,815 4.2 3.9 91% 11.6%
* includes purchasers costs
** includes €1.0m of property, plant and equipment
- additionally, Sirius purchased an adjacent office building to its Dresden
business park for c.€1.1m (including purchasers' costs)
- post balance sheet, the Company purchased a strategic land parcel near
Oberhausen for €3.8m (including purchasers' costs) on 30 October 2024
Table 3b: Acquisitions - UK
Notarised/completed for acquisition Date Total Total Annualised Annualised Occupancy Gross yield*
investment acquired rental NOI
£m sq ft income £m
£m
Vantage Point** Apr 24 49.7 1,464,664 5.1 5.1 81.0% 10.3%
Wembley Jun 24 6.7 19,145 0.7 0.6 97.4% 10.4%
Banbury Jun 24 26.5 472,910 2.4 2.4 100.0% 9.1%
Carnforth*** Oct 24 9.7 172,151 1.1 1.1 99.8% 11.4%
Total 92.6 2,128,870 9.3 9.2 86.9% 10.0%
* includes purchasers costs
** includes purchase of solar park for £6.5m included in property, plant and
equipment
*** completed post balance sheet date on 31 October 2024
Table 3c: Disposals - UK
Notarised/completed for disposal Date Total Total Annualised Annualised Occupancy Gross yield**
investment acquired rental NOI
£m sq ft income £m
£m
Hartlepool - Oakesway Jun 24 0.7 27,825 0.1 0.1 100.0% 9.6%
Letchworth Jul 24 1.2 32,682 0.4 0.1 63.2% 31.0%
Total 1.9 60,507 0.5 0.2 80.1% 27.0%
Net LTV and debt refinancing
Net LTV, which reduces the loan balance by free cash (excluding restricted
cash balances) in its calculation, has been reduced to 30.5% (31 March 2024:
33.9%) which is calculated as follows:
Net LTV 30 September 2024 31 March 2024
€m €m
Total debt 1,012.9 955.4
Less cash and cash equivalents (not including cash restricted under (297.6) (214.5)
contractual terms)
Total 715.3 740.9
Book value of owned investment properties (including those assets held for 2,349.0 2,186.7
sale)
Net loan to value ratio 30.5% 33.9%
The Company's balance sheet remains strong through the €59.9m, €300m Bond
tap in May 2024 and c. €174.6m equity raised (net of costs) in July 2024.
The Group maintains an average cost of debt of 2.1% and a weighted average
debt expiry of 3.5 years. The Company has less than €30.0m of debts maturing
within the next twelve months between January and March 2025.
All covenants were complied with in full during the period. A summary of the
movement in the Group's debt is set out below:
Table 4: Movement in debt*
€m
Total debt as at 31 March 2024 955.4
Debt additions 59.9
Scheduled amortisation (2.4)
Total debt as at 30 September 2024 1,012.9
* Excludes loan issue costs.
Strength of well-diversified income and tenant base
The combination of a diverse tenant base and wide range of space offerings,
which are underpinned by an established operating platform, continues to be
extremely beneficial to Sirius which should continue to allow the Company to
grow over the next few years. Sirius' portfolio includes industrial,
manufacturing, urban logistics/production, storage and out of town office
space that caters to multiple usages and a vast range of sizes and tenant
types. The diversity of the Company's tenant base ranges from large, stable
and long-term anchor tenants through to the flexible SME and private customers
who are the engine room of any economy.
Germany
The Group's large anchor tenants, representing 37% of the tenant base, are
typically multinational corporations occupying production, storage and related
office space whereas the SME and individual tenants occupy space on both a
conventional and a flexible basis including space marketed under the Company's
popular Smartspace brand which provides tenants with a fixed cost and high
degree of flexibility. The Company's largest single tenant contributes 2.1% of
total annualised rent roll whilst 7.2% of its annualised rent roll comes from
government tenants. SMEs in Germany, known there as the Mittelstand, are
typically defined as companies with revenues of up to €50.0m and up to 500
employees. SME tenants remain a key target group which the Company's internal
operating platform has demonstrated an ability to attract in significant
volumes as evidenced through the high number of enquiries that are generated
each month, mainly through the Company's own marketing channels. The wide
range of tenants that the Sirius marketing and sales team is able to attract
is a key competitive advantage and results in a significantly de-risked
business model when compared to other owners of multi-tenanted light
industrial and business park assets. The table below illustrates the diverse
nature of tenant mix within the German portfolio at the end of the reporting
period:
Table 5a: Tenant breakdown - Germany
No. of Occupied % of Annualised % of total Rate
tenants as at sqm occupied rent income* annualised per sqm
30 September sqm €m rent income* €
2024 %
Top 50 anchor tenants(1) 50 656,014 43% 50.8 37% 6.46
Smartspace SME tenants(2) 3,119 74,242 5% 9.0 7% 10.09
Other SME tenants(3) 2,955 798,168 52% 75.5 56% 7.88
Total 6,124 1,528,424 100% 135.3 100% 7.38
1 Mainly large national/international private and public tenants.
2 Mainly small and medium-sized private and public tenants.
3 Mainly small and medium-sized private and retail tenants.
* See glossary section of the Interim Report 2024.
Smartspace Germany
Sirius' Smartspace products are designed with flexibility in mind, allowing
tenants to benefit from a fixed cost which continues to be desirable even in
challenging market conditions, across a range of affordable serviced offices,
self-storage units and workboxes on a flexible basis that can be tailored to
their needs. The majority of Smartspace has been developed from space that is
either sub-optimal or considered to be structurally void by most light
industrial real estate operators. Following conversion, the area is
transformed into space that can be let at significantly higher rents than the
rest of the business park and, as a result, is highly accretive to both income
and value. In the post-pandemic environment, as businesses manage remote
working, online selling, issues with supply chains and supply shortages, the
Smartspace product line becomes even more attractive because of its
flexibility, pricing and location being on the fringes of major cities.
The fact that the Company is able to convert sub-optimal and unutilised space
into this premium, popular space and achieve rental rates well in excess of
the rest of the portfolio, means that even though Smartspace is only a small
part of Sirius' business, it is a major part of the value enhancement process
and the asset transformation, while providing a valuable service for tenants
located elsewhere on the parks as well as those just using this space.
The annualised rental income now being generated from Smartspace, excluding
the element that covers service charge costs, has increased by 12.5% to
€9.0m from €8.0m at the beginning of the period mainly due to growth in
its self-storage segment. The occupancy of Smartspace has increased in the
period to 69% (30 September 2023: 66%) whilst the rates have increased by 6.2%
in the last twelve months from €9.50 per sqm to €10.09 per sqm
demonstrating the value of this business segment to the overall Group
performance.
UK
BizSpace's top 100 tenants are larger corporate customers representing 28.3%
(30 September 2023: 23.1%) of its annualised income, whilst the remaining
71.7% of tenants are made up of SME and micro-SME. The top 100 tenants occupy
1.3m sq ft more than they did in the comparative period due to the Vantage
Point, Gloucester acquisition in April 2024 which, given its scale, has been a
key positive contributor to the increase the net lettable space of the
portfolio and the total rent roll growth in the UK. The Next 900 customers,
contribute to the largest share of annualised rent roll at 39.9% or £26.2m.
The remaining 2,901 customers, predominantly micro-SME customers, occupying on
average approximately 400 sq ft, contribute 31.8% of the annualised rent roll.
Table 5b: Tenant breakdown - UK
No. of Occupied % of Annualised % of total Rate
tenants as at sq ft m occupied rent roll* annualised per sq ft
30 September sq ft £m rent roll* £
2024 %
Top 100 tenants 100 2.2 41.6% 18.6 28.3% 8.58
Next 900 tenants 900 1.8 35.5% 26.2 39.9% 14.20
Remaining tenants 2,901 1.2 22.9% 20.9 31.8% 17.52
Total 3,901 5.2 100.0% 65.7 100.0% 12.62
* See glossary section of the Interim Report 2024.
Environmental, social and governance ("ESG")
Our ESG performance continues to progress, with a strong focus on embedding
long-term sustainability and economic viability into every decision we make.
We are advancing our decarbonisation efforts in line with the priorities
outlined in our 2023/24 Annual Report. Having maintained net zero for Scope 1
and 2 emissions in Germany and carbon neutrality for Scope 1 and 2 emissions
in the UK, our current focus is on the more complex challenge of reducing
Scope 3 emissions. We have set a mid-term ambition to reduce the Group's Scope
3 carbon emissions intensity by 45% per square metre by 2030, using a 2021/22
baseline. To support these ambitions, we are refining our short- and mid-term
decarbonisation pathway and modelling initiatives. This includes updated
scenario modelling and risk assessments for the Group, which will be
undertaken in the second half of the year, as well as creating asset-specific
plans to ensure we meet our sustainability goals. We are also aware that
reducing our Scope 3 emissions requires collaboration with our tenants and we
are starting a programme to understand how this can be best achieved.
Key sustainability initiatives - such as the roll-out of LED lighting,
photovoltaic (PV) pilot projects, and heat-replacement systems - continue to
progress in both Germany and the UK on an asset-by-asset basis. These projects
align with our energy efficiency and decarbonisation objectives and are
closely tied to improving Energy Performance Certificate (EPC) ratings for our
UK assets, in line with anticipated government regulations. We will provide
further updates on these initiatives at the year-end.
As part of our commitment to being an exceptional employer, we are
prioritising training and development, diversity, equity, and inclusion (DEI)
efforts, and employee engagement within our people strategy. We are on track
to meet our goal of 1,300 training days for the current financial year, with
improvements in the quality of training offered. Our employee engagement
initiatives, including the People@Work programme and our Workplace platform,
are ongoing, and we expect to maintain our high engagement scores. These
efforts, along with our social impact programmes like PRISMA, are crucial to
attracting and retaining the talent needed to achieve our broader corporate
objectives.
Looking ahead to the second half of the 2024/25 financial year, our priorities
include finalising the ESG double materiality assessment, which will guide
future decision-making and ESG strategy, and will be inputted into our robust
governance processes. We will also review our ESG data sourcing processes to
strengthen our programmes and support compliance with upcoming reporting
requirements. We plan to share insights from these efforts in our next annual
report.
Dividend Declaration
The Company will pay a dividend of 3.06c per share relating to the period
from 1 April 2024 to 30 September 2024 on 23 January 2025. Shareholders will
have the option to invest their dividend in a Dividend Reinvestment Plan
(DRIP). A detailed dividend announcement will be made on 18 November 2024,
including details of the ex-dividend dates, the record dates and the DRIP
alternative.
Outlook
Sirius is pleased with its trading performance in the first six months of the
financial year, which saw continued like-for-like rent roll growth well in
excess of inflation, and a 14.5% year-on-year increase in FFO. The Company
continued to execute on its capital investment programme and has made
€141.5m of acquisitions in the period and post balance sheet, including the
milestone acquisition of Vantage Point, Gloucester in the UK. The Company
remains committed to growing its dividend to shareholders and is well
positioned to continue to build its scale on the back of its strong balance
sheet, both organically through its intensive asset management initiatives,
diversified offerings and effective and dynamic business model, and through
investing the remaining proceeds of the equity raise in July 2024 in new
sites.
Andrew Coombs
Chief Executive Officer
Chris Bowman
Chief Financial Officer
15 November 2024
Statement of Directors' responsibilities
Each of the Directors, whose names and functions appear below, confirm to the
best of their knowledge that the unaudited condensed interim set of
consolidated interim financial statements have been prepared in accordance
with note 2(a), IAS 34 "Interim Financial Reporting", as issued by the IASB,
and the interim management report herein includes a fair review of the
information required by the Disclosure Guidance and Transparency Rules
("DTR"), namely:
• DTR 4.2.7 (R): an indication of important events that have occurred
during the first six months of the financial year, and their impact on the
condensed interim set of consolidated interim financial statements, and a
description of the principal risks and uncertainties for the remaining six
months of the financial year; and
• DTR 4.2.8 (R): any related party transactions that have taken place
in the six month period ended 30 September 2024 that have materially affected,
and any changes in the related party transactions described in the 2024 Annual
Report that could materially affect, the financial position or performance of
Sirius Real Estate Limited during the period.
The Directors of Sirius Real Estate Limited as at the date of this
announcement are set out below:
• Daniel Kitchen, Chairman*
• Caroline Britton, Senior Independent Director*
• Andrew Coombs, Chief Executive Officer
• Chris Bowman, Chief Financial Officer
• Mark Cherry*
• Kelly Cleveland*
• Joanne Kenrick*
* Non-Executive Directors.
A list of the current Directors is maintained on the Sirius Real Estate
Limited website: www.sirius-real-estate.com.
The Directors are responsible for the maintenance and integrity of the
corporate and financial information included on the Company's website.
Legislation in Guernsey governing the preparation and dissemination of
financial information differs from legislation in other jurisdictions.
By order of the Board
Andrew Coombs
Chief Executive Officer
Chris Bowman
Chief Financial Officer
15 November 2024
Independent review report
to Sirius Real Estate Limited
Conclusion
We have been engaged by Sirius Real Estate Limited ("the Company") to review
the condensed set of financial statements in the half-yearly financial report
for the six months ended 30 September 2024 which comprises the condensed
consolidated income statement, the condensed consolidated statement of
comprehensive income, the condensed consolidated statement of financial
position, the condensed consolidated statement of changes in equity, the
condensed consolidated statement of cash flows, and the related notes 1 to 26.
We have read the other information contained in the half yearly financial
report and considered whether it contains any apparent misstatements or
material inconsistencies with the information in the condensed set of
financial statements.
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of financial statements in the half-yearly
financial report for the six months ended 30 September 2024 is not prepared,
in all material respects, in accordance with International Accounting Standard
34 "Interim Financial Reporting", the Disclosure Guidance and Transparency
Rules of the United Kingdom's Financial Conduct Authority and the JSE Limited
Listing Requirements for condensed interim reports.
Basis for conclusion
We conducted our review in accordance with International Standard on Review
Engagements 2410 (UK) "Review of Interim Financial Information Performed by
the Independent Auditor of the Entity" (ISRE) issued by the Financial
Reporting Council. A review of interim financial information consists of
making enquiries, primarily of persons responsible for financial and
accounting matters, and applying analytical and other review procedures. A
review is substantially less in scope than an audit conducted in accordance
with International Standards on Auditing (UK) and consequently does not enable
us to obtain assurance that we would become aware of all significant matters
that might be identified in an audit. Accordingly, we do not express an audit
opinion.
As disclosed in note 2(d), the annual financial statements of the group are
prepared in accordance with International Financial Reporting Standards as
issued by the IASB. The condensed set of financial statements included in this
half-yearly financial report has been prepared in accordance with UK adopted
International Accounting Standard 34, Interim Financial Reporting, the
Disclosure Guidance and Transparency Rules of the United Kingdom's Financial
Conduct Authority and the JSE Limited Listing Requirements for condensed
interim reports.
Conclusions relating to going concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis for conclusion section of this report,
nothing has come to our attention to suggest that management have
inappropriately adopted the going concern basis of accounting or that
management have identified material uncertainties relating to going concern
that are not appropriately disclosed.
This conclusion is based on the review procedures performed in accordance with
this ISRE, however future events or conditions may cause the entity to cease
to continue as a going concern.
Responsibilities of the Directors
The Directors are responsible for preparing the half-yearly financial report
in accordance with:
- the Disclosure Guidance and Transparency Rules of the United Kingdom's
Financial Conduct Authority; and
- the JSE Limited Listing Requirements for condensed interim reports.
In preparing the half-yearly financial report, the Directors are responsible
for assessing the Group's ability to continue as a going concern, disclosing,
as applicable, matters related to going concern and using the going concern
basis of accounting unless the Directors either intend to liquidate the
Company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the review of the financial information
In reviewing the half-yearly report, we are responsible for expressing to the
Company a conclusion on the condensed set of financial statements in the
half-yearly financial report. Our conclusion, including our Conclusions
relating to going concern, are based on procedures that are less extensive
than audit procedures, as described in the Basis for conclusion paragraph of
this report.
Use of our report
This report is made solely to the Company in accordance with guidance
contained in International Standard on Review Engagements 2410 (UK) "Review of
Interim Financial Information Performed by the Independent Auditor of the
Entity" issued by the Financial Reporting Council. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other
than the Company, for our work, for this report, or for the conclusions we
have formed.
Ernst & Young LLP
London
15 November 2024
Condensed interim consolidated income statement
for the six months ended 30 September 2024
Notes Unaudited((1)) Unaudited(1)
six months six months
ended ended
30 September 30 September
2024 2023
€m €m
Revenue 4 156.5 140.1
Direct costs 5 (64.1) (58.8)
Net operating income 92.4 81.3
Gain/(loss) on revaluation of investment properties 12 2.8 (10.1)
Loss on disposal of properties (0.2) (0.0)
Movement in expected credit loss provision 5 (1.8) 0.5
Administrative expenses 5 (25.7) (24.5)
Share of profit of associates 15 1.1 0.3
Operating profit 68.6 47.5
Finance income 8 5.1 2.3
Finance expense 8 (12.5) (9.2)
Change in fair value of derivative financial instruments 8 - (0.8)
Net finance costs (7.4) (7.7)
Profit before tax 61.2 39.8
Taxation 9 (5.7) (8.1)
Profit for the period after tax 55.5 31.7
Profit attributable to:
Owners of the Company 55.5 31.7
Non-controlling interest (0.0) 0.0
55.5 31.7
Earnings per share
Basic earnings per share 10 3.92c 2.71c
Diluted earnings per share 10 3.87c 2.67c
(1) Refer to note 2(a).
All operations of the Group have been classified as continuing.
Condensed interim consolidated statement of comprehensive income
for the six months ended 30 September 2024
Notes Unaudited((1)) Unaudited (1)
six months six months
ended ended
30 September 30 September
2024 2023
€m €m
Profit for the period after tax 55.5 31.7
Other comprehensive income that may be reclassified
to profit or loss in subsequent periods
Foreign currency translation 22 13.2 7.6
Other comprehensive income after tax that may be reclassified to profit or 13.2 7.6
loss in subsequent periods
Other comprehensive income for the period after tax 13.2 7.6
Total comprehensive income for the period after tax 68.7 39.3
Total comprehensive income attributable to:
Owners of the Company 68.7 39.3
Non-controlling interest (0.0) 0.0
68.7 39.3
(1) Refer to note 2(a).
Condensed interim consolidated statement of financial position
as at 30 September 2024
Unaudited((1)) Audited
30 September 31 March
2024 2024
Notes €m €m
Non-current assets
Investment properties 12 2,372.6 2,210.6
Plant and equipment 15.2 7.8
Intangible assets 3.1 3.3
Right of use assets 13 11.7 12.6
Other non-current financial assets 14 49.1 49.1
Investment in associates 15 24.9 25.2
Total non-current assets 2,476.6 2,308.6
Current assets
Trade and other receivables 16 38.8 42.4
Cash and cash equivalents 17 329.3 244.2
Total current assets 368.1 286.6
Total assets 2,844.7 2,595.2
Current liabilities
Trade and other payables 18 (112.1) (114.7)
Interest-bearing loans and borrowings 19 (29.2) (29.6)
Lease liabilities 13 (2.4) (2.3)
Current tax liabilities 9 (5.0) (7.0)
Total current liabilities (148.7) (153.6)
Non-current liabilities
Interest-bearing loans and borrowings 19 (965.9) (915.5)
Lease liabilities 13 (34.7) (35.5)
Deferred tax liabilities 9 (86.6) (82.7)
Total non-current liabilities (1,087.2) (1,033.7)
Total liabilities (1,235.9) (1,187.3)
Net assets 1,608.8 1,407.9
Equity
Issued share capital 21 - -
Other distributable reserve 22 735.6 605.7
Own shares held 21 (5.8) (8.1)
Foreign currency translation reserve 22 7.2 (6.0)
Retained earnings 871.2 815.7
Total equity attributable to the owners of the Company 1,608.2 1,407.3
Non-controlling interest 0.6 0.6
Total equity 1,608.8 1,407.9
(1) Refer to note 2(a).
The financial statements were approved by the Board of Directors on 15
November 2024 and were signed on its behalf by:
Daniel Kitchen
Chair
Company number: 46442
Condensed interim consolidated statement of changes in equity
for the six months ended 30 September 2024
Notes Issued Other Own Foreign Retained Total equity Non- Total
share distributable shares currency earnings attributable controlling equity
capital reserve held translation €m to the interest €m
€m €m €m reserve owners of €m
€m the Company
€m
As at 31 March 2023 (audited) - 516.4 (8.3) (18.9) 707.9 1,197.1 0.5 1,197.6
Profit for the period - - - - 31.7 31.7 - 31.7
Other comprehensive income for the period - - - 7.6 - 7.6 - 7.6
Total comprehensive income for the period - - - 7.6 31.7 39.3 - 39.3
Dividends paid - (35.0) - - - (35.0) - (35.0)
Share-based payment transactions - 1.5 - - - 1.5 - 1.5
Value of shares withheld to settle employee tax obligations - (1.4) - - - (1.4) - (1.4)
Own shares allocated - (0.2) 0.2 - - - - -
As at 30 September 2023 (unaudited)((1)) - 481.3 (8.1) (11.3) 739.6 1,201.5 0.5 1,202.0
Profit for the period - - - - 76.1 76.1 0.1 76.2
Other comprehensive income for the period - - - 5.3 - 5.3 - 5.3
Total comprehensive income for the period - - - 5.3 76.1 81.4 0.1 81.5
Shares issued 167.4 (2.1) - - - 165.3 - 165.3
Transaction costs relating to share issues (3.3) - - - - (3.3) - (3.3)
Dividends paid - (40.3) - - - (40.3) - (40.3)
Transfer of share capital (164.1) 164.1 - - - - - -
Share-based payment transactions - 3.5 - - - 3.5 - 3.5
Value of shares withheld to settle employee tax obligations - - - - (0.8)
- (0.8) (0.8)
As at 31 March 2024 (audited) - 605.7 (8.1) (6.0) 815.7 1,407.3 0.6 1,407.9
Profit for the period 55.5 55.5 (0.0) 55.5
Other comprehensive income for the period 13.2 13.2 13.2
Total comprehensive income for the period - - - 13.2 55.5 68.7 (0.0) 68.7
Shares issued 21 185.0 (4.1) - - - 180.9 - 180.9
Transaction costs relating to share issues 21 (6.3) - - - - (6.3) - (6.3)
Dividends paid 23 - (41.3) - - - (41.3) (0.0) (41.3)
Transfer of share capital 21 (178.7) 178.7 - - - - - -
Share-based payment transactions 7 - 2.7 - - - 2.7 - 2.7
Value of shares withheld to settle employee tax obligations 7 - (3.8) - - - (3.8) - (3.8)
Own shares purchased 21 - - - - - - - -
Own shares allocated 21 - (2.3) 2.3 - - - - -
As at 30 September 2024 (unaudited)((1)) - 735.6 (5.8) 7.2 871.2 1,608.2 0.6 1,608.8
(1) Refer to note 2(a).
Condensed interim consolidated statement of cash flows
for the six months ended 30 September 2024
Notes Unaudited(1) Unaudited(1)
six months six months
ended ended
30 September 30 September
2024 2023
€m €m
Operating activities
Profit for the period before tax 61.2 39.8
Loss on disposal of properties 0.2 0.0
Net foreign exchange difference 2.1 (0.0)
Share-based payments 7 2.7 1.5
(Gain)/loss on revaluation of investment properties 12 (2.8) 10.1
Change in fair value of derivative financial instruments 8 - 0.8
Depreciation of plant and equipment 5 1.1 1.0
Amortisation of intangible assets 5 0.6 0.7
Depreciation of right of use assets 5 0.9 0.9
Share of profit of associates 15 (1.1) (0.3)
Finance income 8 (5.1) (2.3)
Finance expense 8 12.5 9.2
Changes in working capital
(Increase)/decrease in trade and other receivables (7.0) 1.4
(Decrease)/increase in trade and other payables (3.0) 3.4
Cash generated from operations before tax 62.3 66.2
Taxation paid (3.8) (2.0)
Cash flows from operating activities 58.5 64.2
Investing activities
Purchase of investment properties (119.0) -
Capital expenditure on investment properties (22.7) (16.4)
Purchase of plant and equipment and intangible assets (8.9) (1.3)
Proceeds on disposal of properties (including assets held for sale when 7.3
applicable)
5.5
Dividends received from investments in associates 1.4 2.0
Interest received 5.1 2.3
Cash flows used in investing activities (138.6) (6.1)
Financing activities
Proceeds from issue of share capital 21 180.9 -
Transaction costs on issue of shares 21 (6.3) -
Payment relating to exercise of share options 7 (3.8) (1.4)
Dividends paid to owners of the Company 23 (41.3) (35.0)
Proceeds from loans 19 59.9 -
Repayment of loans 19 (2.3) (22.7)
Payment of principal portion of lease liabilities (1.7) (1.1)
Capitalised loan issue costs (9.0) -
Finance charges paid (10.1) (6.8)
Cash flows from/(used in) financing activities 166.3 (67.0)
Increase/(decrease) in cash and cash equivalents 86.2 (8.9)
Net foreign exchange difference (1.1) 0.3
Cash and cash equivalents as at the beginning of the period 244.2 124.3
Cash and cash equivalents as at the period end 17 329.3 115.7
(1) Refer to note 2(a).
Notes forming part of the financial statements
for the six months ended 30 September 2024
1. General information
Sirius Real Estate Limited (the "Company") is a company incorporated in
Guernsey and resident in the United Kingdom for tax purposes, whose shares are
publicly traded on the equity shares (commercial companies) category of the
London Stock Exchange ("LSE") (primary listing) and the premium segment of the
main board of the JSE Limited ("JSE") (primary listing).
The consolidated financial information of the Company comprises that of the
Company and its subsidiaries (together referred to as the "Group" or "Sirius")
for the six month period ended 30 September 2024.
The principal activity of the Group is the investment in, and development of,
commercial and industrial property to provide conventional and flexible
workspace in Germany and the United Kingdom ("UK").
2. Accounting policies
(a) Basis of preparation and statement of compliance
The unaudited condensed interim set of consolidated financial statements has
been prepared on a historical cost basis, except for investment properties,
investment properties held for sale and derivative financial instruments,
which have been measured at fair value. The unaudited condensed interim set of
consolidated financial statements is presented in Euros and all values are
rounded to the nearest hundred thousand shown in millions (€m), except where
otherwise indicated.
The Company prepares its condensed interim set of financial statements in
accordance with the Disclosure and Transparency Rules of the United Kingdom
Financial Conduct Authority, the JSE Limited Listings Requirements, IAS 34
Interim Financial Reporting ("IAS 34") and in compliance with the framework
concepts and the measurement and recognition requirements of International
Financial Reporting Standards ("IFRS") as issued by the International
Accounting Standards Board ("IASB").
The financial information in this unaudited condensed interim set of
consolidated financial statements does not comprise statutory accounts. They
do not include all the information required for the full annual financial
statements and should be read in conjunction with the consolidated financial
statements of the Group as at and for the year ended 31 March 2024. The
unaudited condensed interim financial statements have been prepared on the
basis of the accounting policies set out in the Group's annual financial
statements for the year ended 31 March 2024 except for the changes in
accounting policies as shown in note 2(b). The financial statements for the
year ended 31 March 2024 have been prepared in accordance with IFRS issued by
the IASB. The financial information presented for the year ended 31 March 2024
is derived from the statutory accounts for that year. Statutory accounts for
the year ended 31 March 2024 were approved by the Board on 31 May 2024. The
report of the auditor on those accounts was (i) unqualified, (ii) did not
include a reference to any matters to which the auditor drew attention by way
of emphasis without qualifying its report, and (iii) did not contain a
statement under Sections 263 (2) or (3) of The Companies (Guernsey) Law, 2008.
As at 30 September 2024 the Group's unaudited condensed interim set of
consolidated financial statements reflects consistent accounting policies and
methods of computation as used in the previous financial year.
(b) Changes in accounting policies
There were several new, and amendments to, standards and interpretations which
were applicable for the first time for the Group from 1 April 2024. None of
them have had a significant impact on the condensed interim financial
statements of the Group.
(c) Non-IFRS measures
The Directors have chosen to disclose EPRA earnings, EPRA net asset value
metrics and EPRA loan to value, which are widely used alternative metrics to
their IFRS equivalents (further details on EPRA best practice recommendations
can be found at www.epra.com). Note 10 of the condensed interim financial
statements includes a reconciliation of basic and diluted earnings to EPRA
earnings. Note 11 of the condensed interim financial statements includes a
reconciliation of net assets to EPRA net asset value metrics. Note 19 of the
condensed interim financial statements includes a calculation of EPRA loan to
value ratio.
The Directors are required, as part of the JSE Limited Listings Requirements,
to disclose headline earnings; accordingly, headline earnings are calculated
using basic earnings adjusted for revaluation gains/losses and related tax,
gains/losses on disposal of properties and related tax, non-controlling
interest ("NCI") relating to revaluation (net of related tax), NCI relating to
gain/loss on disposal properties (net of related tax) and revaluation
gain/loss on investment property from associates and related tax. Note 10 of
the condensed interim financial statements includes a reconciliation between
IFRS and headline earnings.
The Directors have chosen to disclose adjusted earnings in order to provide an
alternative indication of the Group's underlying business performance; as
disclosed in note 10 of the condensed interim financial statements.
The Directors have chosen to disclose adjusted profit before tax and funds
from operations to provide an alternative indication of the Group's underlying
business performance and to facilitate the calculation of its dividend pool; a
reconciliation between profit before tax and funds from operations is included
within note 23 of the condensed interim financial statements. Within adjusted
profit before tax are adjusting items as described in note 10 of the condensed
interim financial statements gross of related tax.
The Directors have chosen to disclose adjusted net asset value in order to
assist in comparisons with similar businesses, a reconciliation between net
asset value and adjusted net asset is included within note 11 of the condensed
interim financial statements.
Further details on non-IFRS measures can be found in the Business analysis and
Annex 1 sections of this document.
(d) Going concern
The Group has prepared its going concern assessment for the period to 31 March
2026 (the "going concern period"), a period greater than twelve months and
chosen to align with its historical application of the period. The Directors
also evaluated potential events and conditions for twelve month beyond the
going concern period that may cast significant doubt on the Group's ability to
continue as a going concern. In this twelve month period maturity of its
€400.0m corporate bond falls due in June 2026, and Management have
considered this and are confident they will be able to refinance the corporate
bond prior to maturity.
The Group's going concern assessment is based on a forecast of the Group's
future cash flows. This considers Management's base case scenario and a severe
but plausible downside scenario where sensitivities are applied to model the
outcome on the occurrence of downside assumptions explained below. It
considers the Group's principal risks and uncertainties and is dependent on a
number of factors including financial performance, continued access to lending
facilities (see note 19) and the ability to continue to operate the Group's
secured and unsecured debt structure within its financial covenants.
The severe but plausible scenario models a potential downturn in the Group's
performance, including the potential impact of downside macro-factors such as
geopolitical instability, the risk of recurring energy shortages and
extraordinary inflationary pressures, pressures from sustained higher interest
rates and outward yield movements on the Group's financial position and future
prospects. The cash flow projections incorporate assumptions on future trading
performance and potential valuation movements in order to estimate the level
of headroom on the Group's debt facilities and covenants for loan to value,
debt service cover, EPRA net asset value, unencumbered assets ratios, fixed
charge ratios and occupancy ratios set out within the relevant finance
agreements.
The impact of the macro-factors above has placed further pressure on the costs
of the business, however this did not result in any deterioration in the
Group's income streams in the six months ended 30 September 2024 and asset
values remained relatively stable since the 31 March 2024 valuation. However,
the Directors continue to be mindful of the challenging macro-factors present
in the market and maintain their view held on 31 March 2024 on the severity of
the falls in valuations assessed in the severe but plausible downside scenario
in the going concern period.
The base case and severe but plausible downside scenarios include the
following assumptions applied to both the German and UK portfolios:
Base case:
» 5.5% growth per annum in rent roll at 30 September 2024,
principally from contractual increases in rents and organic growth through
lease renewals;
» increasing cost levels in line with forecast inflation of 2%;
» continuation of forecast capex investment;
» continuation of forecast dividend payments in line with historic
dividend payouts and UK REIT requirements;
» payment of contractual loan interest and loan amortisation amounts,
refinancing of €27.8m of debt facilities and 35% of €150.4m loan that sits
within the investment in associate as they fall due at market interest rates;
» only acquisitions and disposals which are contractually committed
are made, which includes two post balance sheet acquisitions totalling
€15.4m, comprised of £9.7m (€11.6m) at Carnforth (UK) and €3.8m at
Oberhausen (Germany) in October 2024.
Severe but plausible downside scenario:
» reduction in occupancy and rental income of 10% per annum from the
contracted rent roll at 30 September 2024;
» reduction in service charge recovery of 10% per annum from the
recovery levels at the balance sheet date;
» reduction in property valuations of 10% per annum;
» continuation of forecast capex investment;
» continuation of forecast dividend payments in line with historic
dividend payouts and UK REIT requirements;
» payment of contractual loan interest and loan amortisation amounts,
repayment of €27.8m of debt facilities and 35% of €150.4m loan that sits
within the investment in associate as they fall due; and
» only acquisitions and disposals which are contractually committed
are made, which includes two post balance sheet acquisition totalling €15.4m
comprised of £9.7m (€11.6m) at Carnforth (UK) and €3.8m at Oberhausen
(Germany) in October 2024.
The Directors are of the view that there is only a remote possibility of a
more severe scenario arising than the above severe but plausible downside
scenario based upon the Group's track record of performance in challenging
scenarios, most recently through the high inflationary environment in both
Germany and the UK, the Covid-19 pandemic and post pandemic period. In
addition, the Group raised equity of €180.9m in July 2024 and raised a
further €59.9m from increasing the €300.0m corporate bond in May 2024.
The severe but plausible downside scenario results in cash trap events
occurring on the Group's occupancy covenant relating to its Deutsche
Pfandbriefbank AG loan facility and Berlin Hyp AG loan facility. The cash trap
event does not have a material impact to the Group's cash flows. The Group is
not forecasting any further cash trap or defaulting events in the severe but
plausible downside scenario.
The Group has also performed a reverse stress test over the impact of a fall
in its property valuations and income reductions during the going concern
period. This showed that the Group could withstand a fall in valuations of
24%, before there was a loan to value covenant breach and a reduction of 53%
of rental income before any income related covenants would breach, levels
which the Group has not seen before. These events are considered to be remote
due to the Group's strong performance throughout most recent economic
headwinds, with the macroeconomic environment pointing towards stability. The
reductions required for the reverse stress test have never been seen by the
Group.
In each of the scenarios for going concern, the Group forecasts having
sufficient free cash available and if required, could utilise available
mitigating actions which would be available to the Group in the going concern
review period, which include restricting non-REIT related dividends, reducing
capital expenditure or the disposal of assets. The restriction of dividends or
reducing capital expenditure are within the control of the Directors and there
is sufficient time to implement these restrictions if required. The use of
such mitigating factors is not anticipated to be required.
The Directors have not identified any material uncertainties which may cast
significant doubt on the Group's ability to continue as a going concern for
the duration of the going concern period.
The Directors also evaluated potential events and conditions beyond the going
concern period that may cast significant doubt on the Group's ability to
continue as a going concern and noted the €400.0m bond coming due in June
2026. The Directors are of the view there is a high probability of securing
the refinancing of this bond when it falls due, due to discussions with banks
being sufficiently progressed to commence refinancing well in advance of its
maturity date, appetite for corporate debt in the real estate sector
strengthening and strong appetite for the Group's corporate debt as evidenced
through its recent corporate bond tap, consistent BBB stable Fitch rating and
strong balance sheet and importantly the Group's strong track record in
previously refinancing maturing debt. As such, the Directors deem the
possibility of not refinancing its €400.0m bond when it comes due to be
remote.
After due consideration of the going concern assessment for the period to 31
March 2026, the Board believes it is appropriate to adopt the going concern
basis in preparing its financial statements.
(e) Principal risks and uncertainties
The key risks that could affect the Group's medium-term performance and the
factors which mitigate these risks have not changed substantially from those
set out on pages 66 to 71 of the Group's Annual Report and Accounts 2024 and
have been assessed in line with the requirements of the 2018 UK Corporate
Governance Code. The risks are set out below. The Board is satisfied that the
Group continues to operate within its risk profile for the remaining six
months of the financial year.
Principal risks summary
Risk area Principal risk(s)
1. Macroeconomic • Sticky inflationary pressure.
environment • Uncertainty on timing of economic recovery in Europe and the UK.
and markets • Reliance on specific industries and Small and Medium-sized
Enterprise market.
2. Financing • Availability and pricing of equity capital.
• Compliance with loan facility covenants.
• Cost of debt and leverage on returns.
3. Valuation • Susceptibility of property market to change in value.
• ESG requirements impacting valuations.
• Capex initiatives generating required returns.
4. Acquisitive growth • Lack of accretive opportunities available in the market.
• Increased competition for high-yielding assets leading to pricing
pressure.
5. Organic growth • Tenant retention.
• Tenant demand for offering of space.
6. Tenant • Decline in demand for space and product offering.
• Delays in cash collection and tenant insolvencies.
• Affordability of product mix.
7. Regulatory and tax • Compliance with regulatory and tax obligations.
8. People • Inability to recruit and retain talent with the appropriate skill set
to meet strategic
objectives of the Group.
9. Systems and data • System failures, breaches and loss of data resulting in business
interruptions, leading
to financial and operational downtime and reputational damage.
10. ESG • Unforeseen costs relating to physical and transition risks (the
transition to net zero).
• Failure to meet stakeholder expectations in adapting to ongoing
trends.
• Changes in regulatory environment as regulation evolves over time.
11. Foreign currency • Translation risk associated with holding assets in a foreign
currency.
• Impact on LTV and other key performance indicators.
3. Operating segments
Information on each operating segment, which are considered to be each
investment property, is provided to the chief operating decision maker, namely
the Group's Senior Management Team.
The investment properties are then aggregated into reportable segments with
similar economic characteristics - which the Directors consider is best
achieved by aggregating into German properties and UK properties.
Further disaggregation of the investment properties valuation methods is
disclosed in note 12 owing to the range in values of key inputs and
assumptions underpinning the property valuation.
Information by reportable segment includes revenues and direct expenses,
gains/losses on property valuations, gains/losses on property disposals,
depreciation and amortisation, movement in expected credit loss provision,
other administrative expenses and the Group's share of profit of associates.
Finance income and expenses are also presented in the reportable segments.
Income taxes are not reported to the Senior Management Team on a segmented
basis and are therefore not allocated to the reportable segments. There are no
sales between the reportable segments. There is no single tenant that makes up
more than 10% of a reportable segment's revenue or Group revenue.
Unaudited six months Unaudited six months
ended 30 September 2024 ended 30 September 2023
Germany UK Total Germany UK Total
€m €m €m €m €m €m
Rental income from investment properties 69.0 23.6 92.6 62.5 17.7 80.2
Other income from investment properties 1.9 0.6 2.5 1.9 0.4 2.3
Service charge income from investment properties 36.9 16.0(1) 52.9 37.2 12.0(1) 49.2
Other income from managed properties 3.5 - 3.5 3.1 - 3.1
Service charge income from managed properties 5.0 - 5.0 5.3 - 5.3
Revenue 116.3 40.2 156.5 110.0 30.1 140.1
Direct costs (50.6) (13.5) (64.1) (48.5) (10.3) (58.8)
Net operating income 65.7 26.7 92.4 61.5 19.8 81.3
Gain/(loss) on revaluation of investment properties 10.7 (7.9) 2.8 8.4 (18.5) (10.1)
Loss on disposal of properties (0.2) (0.0) (0.2) (0.0) - (0.0)
Depreciation and amortisation (1.9) (0.7) (2.6) (2.1) (0.5) (2.6)
Movement in expected credit loss provision (1.8) (0.0) (1.8) 0.5 (0.0) 0.5
Other administrative expenses (15.6) (7.5) (23.1) (16.8) (5.1) (21.9)
Share of profit of associates 1.1 - 1.1 0.3 - 0.3
Operating profit/(loss) 58.0 10.6 68.6 51.8 (4.3) 47.5
Finance income 4.7 0.4 5.1 1.5 0.8 2.3
Amortisation of capitalised finance costs (1.5) - (1.5) (1.5) - (1.5)
Other finance expense (8.6) (2.4) (11.0) (5.6) (2.1) (7.7)
Change in fair value of derivative financial instruments - - - (0.8) - (0.8)
Net finance costs (5.4) (2.0) (7.4) (6.4) (1.3) (7.7)
Segment profit/(loss) for the period before tax 52.6 8.6 61.2 45.4 (5.6) 39.8
(1) Includes €11.8m (30 September 2023: €9.5m) that is an
apportionment of the UK inclusive rent amount that the Directors consider to
represent the income related to property expenses that would be recovered via
a service charge mechanism in a traditional lease arrangement, in accordance
with Group accounting policies.
Unaudited 30 September 2024 Audited 31 March 2024
Germany UK Total Germany UK Total
€m €m €m €m €m €m
Segment assets
Investment properties 1,799.8 572.8 2,372.6 1,735.0 475.6 2,210.6
Investment in associates 24.9 - 24.9 25.2 - 25.2
Other non-current assets(1) 65.0 10.1 75.1 20.8 2.9 23.7
Total segment non-current assets 1,889.7 582.9 2,472.6 1,781.0 478.5 2,259.5
(1) Consists of plant and equipment, intangible assets, right of use
assets and loans to associates.
4. Revenue
Unaudited Unaudited
six months six months
ended ended
30 September 30 September
2024 2023
€m €m
Rental income from investment properties 92.6 80.2
Other income from investment properties 2.5 2.3
Service charge income from investment properties(1) 52.9 49.2
Other income from managed properties 3.5 3.1
Service charge income from managed properties 5.0 5.3
Total revenue 156.5 140.1
(1) Includes €11.8m (30 September 2023: €9.5m) that is an
apportionment of the UK inclusive rent amount that the Directors consider to
represent the income related to property expenses that would be recovered via
a service charge mechanism in a traditional lease arrangement, in accordance
with Group accounting policies.
The Group manages properties for the investment in associate. As part of this,
service charge income from managed properties is generated which relates to
costs the Group incur to provide the investment with associate with necessary
services.
A reconciliation of the revenue from contracts with customers with the amounts
disclosed in the segment information (see note 3) is as follows:
Unaudited six months Unaudited six months
ended 30 September 2024 ended 30 September 2023
Germany UK Total Germany UK Total
€m €m €m €m €m €m
Rental income from investment properties 69.0 23.6 92.6 62.5 17.7 80.2
Total rental income 69.0 23.6 92.6 62.5 17.7 80.2
Other income from investment properties 1.9 0.6 2.5 1.9 0.4 2.3
Service charge income from investment properties 36.9 16.0(1) 52.9 37.2 12.0(1) 49.2
Other income from managed properties 3.5 - 3.5 3.1 - 3.1
Service charge income from managed properties 5.0 - 5.0 5.3 - 5.3
Total revenue from contracts with customers 47.3 16.6 63.9 47.5 12.4 59.9
Total revenue 116.3 40.2 156.5 110.0 30.1 140.1
(1) Includes €11.8m (30 September 2023: €9.5m) that is an
apportionment of the UK inclusive rent amount that the Directors consider to
represent the income related to property expenses that would be recovered via
a service charge mechanism in a traditional lease arrangement, in accordance
with Group accounting policies.
5. Operating profit
The following items have been charged in arriving at operating profit:
Direct costs
Unaudited Unaudited
six months six months
ended ended
30 September 30 September
2024 2023
€m €m
Service charge costs relating to investment properties 54.4 48.8
Costs relating to managed properties 5.9 6.5
Non-recoverable maintenance costs 3.8 3.5
Direct costs 64.1 58.8
Movement in expected credit loss provision
Unaudited Unaudited
six months six months
ended ended
30 September 30 September
2024 2023
€m €m
Expected credit loss recognised 9.6 8.2
Expected credit loss reversed (7.8) (8.7)
Movement in expected credit loss provision 1.8 (0.5)
The expected credit loss provision has increased during the period mainly due
to the increase of gross trade receivables.
Administrative expenses
Unaudited Unaudited
six months six months
ended ended
30 September 30 September
2024 2023
€m €m
Audit and non-audit fees to audit firm 0.9 0.6
Legal and professional fees 2.7 3.0
Other administration costs 1.4 2.8
Share-based payments 2.7 1.5
Employee costs 13.2 11.7
Director fees and expenses 0.2 0.3
Depreciation of plant and equipment 1.1 1.0
Amortisation of intangible assets 0.6 0.7
Depreciation of right of use assets (see note 13) 0.9 0.9
Marketing 1.3 1.7
Other expenses not included in FFO 0.7 0.3
Administrative expenses 25.7 24.5
Other administration costs include net foreign exchange gain in amount of
€2.1m as a result of increasing British pound sterling ("GBP") rates
throughout the period (30 September 2023: €0.02m losses as a result of
declining GBP rates throughout the period).
Other expenses not included in FFO relate to the following:
Unaudited Unaudited
six months six months
ended ended
30 September 30 September
2024 2023
€m €m
Legal case costs(1) 0.7 0.3
Total 0.7 0.3
(1) The legal case costs amounting to €0.7m relates to the legal case
mentioned in note 18 (30 September 2023: €0.3m).
Other expenses not included in FFO are items outside the normal course of
business and therefore have been identified as expenses not included in the
FFO calculation (see note 21).
6. Employee costs and numbers
Unaudited Unaudited
six months six months
ended ended
30 September 30 September
2024 2023
€m €m
Wages and salaries 19.3 15.4
Social security costs 2.5 2.5
Defined contribution pension scheme 0.2 0.2
Other employment costs 0.4 0.4
Total 22.4 18.5
Included in the costs related to wages and salaries for the period are
share-based payments of €2.7m (30 September 2023: €1.5m) (see note 7). The
costs for all periods include those relating to Executive Directors.
All employees are employed directly by one of the following Group subsidiary
companies: Sirius Facilities GmbH, Sirius Facilities (UK) Limited, Curris
Facilities & Utilities Management GmbH, SFG NOVA GmbH, Sirius Renewable
Energy GmbH, Sirius Finance (Cyprus) Limited, BizSpace Limited, BizSpace II
Limited, M25 Business Centres Limited and Sirius Corporate Services B.V. The
average number of people employed by the Group during the period was 459 (30
September 2023: 407) expressed in full-time equivalents. In addition, as at 30
September 2024, the Board of Directors consists of five Non-Executive
Directors (30 September 2023: six) and two Executive Directors (30 September
2023: two).
7. Employee schemes
Equity-settled share-based payments
2018 LTIP
The LTIP for the benefit of the Executive Directors and the Senior Management
Team was approved in 2018. Awards granted under the LTIP are made in the form
of nil-cost options which vest after the three year performance period with
vested awards being subject to a further holding period of two years. Awards
are split between ordinary and outperformance awards. Ordinary awards carry
both adjusted net asset value per share ("TNR") (two-thirds of award) and
relative total shareholder return ("TSR") (one-third of award) performance
conditions and outperformance awards carry a sole TNR performance condition.
Awards are equity settled. The employees' tax obligation will be determined
upon the vesting date of the share issue.
The following assumptions were used in calculating the fair value per share
for the TNR and TSR elements of the awards that were granted:
June 2019 June 2020
grant
grant
TNR TSR TNR TSR
Valuation methodology Black-Scholes Monte-Carlo Black-Scholes Monte-Carlo
Calculation for 2/3 ordinary award/ 1/3 ordinary 2/3 ordinary 1/3 ordinary award
outperformance award award award
Total charge for the award - €m 2.1 2.3
Expected lapse rate 0% 0% 0% 0%
Share price at grant date - € 0.73 0.73 0.84 0.84
Exercise price - € nil nil nil nil
Expected volatility - %(1) 23.8 23.8 38.5 38.5
Performance projection period - years 2.80 2.67 2.79 2.67
Expected dividend yield - % 4.56 4.56 4.28 4.28
Risk-free rate based on European (0.695) p.a. (0.695) p.a. (0.68) p.a. (0.68) p.a.
Expected outcome of performance conditions - % 100/25 100 88.8 n/a
Fair value per share - € 0.643 0.340 0.745 0.564
Weighted average fair value of share - €(2) 0.54 0.68
Number of shares granted 2,506,667/690,000 1,253,333(3) 2,400,000 1,200,000
Forfeited during the performance period - 500,000
(1) Assumptions considered in this model include: expected volatility of
the Company's share price, as determined by calculating the historical
volatility of the Company's share price over the period immediately prior to
the date of grant and commensurate with the expected life of the awards;
dividend yield based on the actual dividend yield as a percentage of the share
price at the date of grant; performance projection period; risk-free rate; and
correlation between comparators.
(2) Charges for the awards are based on fair values calculated at the
grant date and expensed on a straight-line basis over the period that
individuals are providing service to the Group in respect of the awards.
(3) Another 93,039 share awards have been granted throughout the
performance period as part of dividend equivalents.
The June 2019 grant vested on 18 July 2022. Vesting was at partial level for
all participants resulting in the exercise of 1,620,093 shares with a weighted
average share price of €1.02 at the date of exercise. 1,391,585 shares have
been surrendered in relation to the partial settlement of certain
participants' tax liabilities arising in respect of the vesting. An amount of
€1.7m was paid for the participants' tax liabilities. The remaining
1,531,361 shares vested on 23 November 2022. Final vesting resulted in the
exercise of 811,621 shares with a weighted average share price of €1.02 at
the date of exercise. 719,740 shares have been surrendered in relation to the
settlement of certain participants' tax liabilities arising in respect of the
vesting. An amount of €0.8m was paid for the participants' tax liabilities
in the year ended 31 March 2024.
The June 2020 grant vested on 22 May 2023. Vesting resulted in the exercise of
1,859,000 shares with a weighted average share price of €1.02 at the date of
exercise. 1,241,000 shares have been surrendered in relation to the partial
settlement of certain participants' tax liabilities arising in respect of the
vesting. An amount of €1.3m was paid for the participants' tax liabilities.
2021 LTIP
The LTIP for the benefit of the Executive Directors and the Senior Management
Team was approved in 2021. Awards granted under the LTIP are made in the form
of nil-cost options which vest after the three year performance period with
vested awards being subject to a further restricted period of two years when
shares acquired on exercise cannot be sold. Awards are subject to TNR
(two-thirds of award) and relative TSR (one-third of award) performance
conditions. Awards are equity settled. The employees' tax obligation will be
determined upon the vesting date of the share issue.
The following assumptions were used in calculating the fair value per share
for the TNR and TSR elements of the awards that were granted:
August 2021 July 2022 June 2023
grant
grant grant
TNR TSR TNR TSR TNR TSR
Valuation methodology Black-Scholes Monte-Carlo Black-Scholes Monte-Carlo Black-Scholes Monte-Carlo
Calculation for 2/3 ordinary award 1/3 ordinary award 2/3 ordinary award 1/3 ordinary award 2/3 ordinary award 1/3 ordinary award
Total charge for the award - €m 4.7 2.6 2.9
Expected lapse rate 0% 0% 0% 0% 0% 0%
Share price at grant date - € 1.39 1.39 1.05 1.05 1.04 1.04
Exercise price - € nil nil nil nil nil nil
Expected volatility - %(1) 40.5 40.5 41.2 41.2 32.7 32.7
Expected life - years 2.91 2.91 2.95 2.95 2.97 2.97
Performance projection period - years 2.66 2.66 2.70 2.70 2.81 2.81
Expected dividend yield - % 2.79 2.79 4.21 4.21 5.52 5.52
Risk-free rate based on European treasury bonds rate of return - % (0.817) p.a. (0.817) p.a. 0.609 p.a. 0.609 p.a. 2.65 p.a. 2.65 p.a.
Fair value per share - € 1.28 (2) 0.84 (3) 0.93 (2) 0.40 (3) 0.88(2) 0.59(3)
Weighted average fair value of share - €(4) 1.13 0.75 0.77
Number of shares granted 2,769,413 1,384,706 2,320,019 1,160,009 2,462,171 1,231,086
Forfeited during the performance period 1,379,962 635,000 -
September 2023 July 2024 grant
grant
TNR TSR TNR TSR
Valuation methodology Black-Scholes Monte-Carlo Black-Scholes Monte-Carlo
Calculation for 2/3 ordinary award 1/3 ordinary award 2/3 ordinary 1/3 ordinary
award award
Total charge for the award - €m 0.8 6.6
Expected lapse rate 0% 0% 0% 0%
Share price at grant date - € 1.03 1.03 1.13 1.13
Exercise price - € nil nil nil nil
Expected volatility - %(1) 31.4 31.4 30.5 30.5
Expected life - years 2.68 2.68 2.82 2.82
Performance projection period - years 2.52 2.52 2.55 2.55
Expected dividend yield - % 5.47 5.47 nil (5) nil(5)
Risk-free rate based on European treasury bonds rate of return - % 3.05 p.a. 3.05 p.a. 2.53 p.a. 2.53 p.a.
Fair value per share - € 0.89 (2) 0.71 (3) 1.13 (2),(6) 0.62(3),(6)
Weighted average fair value of share - €(4) 0.83 0.96
Number of shares granted 604,001 302,001 4,598,315 2,299,158
Forfeited during the performance period - -
(1) Expected volatility of the Company's share price was determined by
calculating the historical volatility of the Company's share price over the
period immediately prior to the date of grant, commensurate with the term to
the end of the performance period.
(2) In accordance with IFRS 2 Share-based Payment ("IFRS 2"), TNR is classed
as a non-market performance condition. As such, the fair value has been
calculated using a Black-Scholes model and does not take the expected outcome
of the performance condition into account. The Company currently estimates the
expected vesting outcome for the TNR award to be 100%.
(3) In accordance with IFRS 2, relative TSR is classed as a market-based
performance condition. As such, projected performance and the likelihood of
achieving the condition have been taken into account when calculating the fair
value using a Monte-Carlo model. The model also uses assumptions for the
expected volatility of comparator companies, the pairwise correlation between
comparator companies and TSR performance between the start of the performance
period and the date of grant.
(4) Charges for the awards are based on fair values calculated at the grant
date and expensed on a straight-line basis over the period that individuals
are providing service to the Group in respect of the awards.
(5) The dividend yield has been set to nil as there is an intention to pay
dividend equivalents on the awards granted in July 2024.
(6) The fair value for the awards backs out the impact of the 100% of
maximum vesting schedule for these awards by scaling back the vesting schedule
by 1.33. This fair value is then applied to the total number of awards
(including the multiplier).
The August 2021 grant vested on 24 May 2024. Vesting resulted in the exercise
of 1,482,979 shares with a weighted average share price of €1.18 at the date
of exercise. 1,291,178 shares have been surrendered in relation to the partial
settlement of certain participants' tax liabilities arising in respect of the
vesting. An amount of €1.6m was paid for the participants' tax liabilities.
2021 SIP
A SIP for the benefit of senior employees was approved in 2021. Awards granted
under the SIP are made in the form of a conditional right to receive a
specified number of shares for nil cost which vest after the three year
performance period with vested awards being subject to a further restricted
period of one year when shares cannot be sold. Awards are subject to TNR
(two-thirds of award) and relative TSR (one-third of award) performance
conditions. Awards are equity settled. The employees' tax obligation will be
determined upon the vesting date of the share issue.
The following assumptions were used in calculating the fair value per share
for the TNR and TSR elements of the awards that were granted:
September 2021 April 2022 August 2022
grant grant grant
TNR TSR TNR TSR TNR TSR
Valuation methodology Black-Scholes Monte-Carlo Black-Scholes Monte-Carlo Black-Scholes Monte-Carlo
Calculation for 2/3 ordinary 1/3 ordinary 2/3 ordinary award 1/3 ordinary award 2/3 ordinary award 1/3 ordinary award
award award
Total charge for the award - €m 3.7 0.03 1.5
Expected lapse rate 0% 0% 0% 0% 0% 0%
Share price at grant date - € 1.49 1.49 1.51 1.51 1.13 1.13
Exercise price - € n/a n/a n/a n/a n/a n/a
Expected volatility - %(1) 40.7 40.7 32.5 32.5 29.7 29.7
Expected life - years 3.48 3.48 2.92 2.92 2.58 2.58
Performance 2.56 2.56 2.00 2.00 1.66 1.66
projection period - years
Expected dividend yield - % 2.60 2.60 2.93 2.93 3.96 3.96
Risk-free rate based on European treasury bonds rate of return - % (0.737) p.a. (0.737) p.a. (0.074) p.a. (0.074) p.a. 0.184 p.a. 0.184 p.a.
Fair value per share - € 1.36 (2) 0.92 (3) 1.39 (2) 0.89 (3) 1.02 (2) 0.46 (3)
Weighted average fair value of share - €(4) 1.21 1.22 0.83
Number of shares granted 2,049,667 1,024,833 20,000 10,000 1,166,667 583,333
Forfeited during the performance period 969,608 30,000 670,586
June 2023 (UK) June 2023 September 2023
grant grant grant
TNR TSR TNR TSR TNR TSR
Valuation methodology Black-Scholes Monte-Carlo Black-Scholes Monte-Carlo Black-Scholes Monte-Carlo
Calculation for 2/3 ordinary 1/3 ordinary 2/3 ordinary 1/3 ordinary 2/3 ordinary 1/3 ordinary
award award award award award award
Total charge for the award - €m 1.5 0.4 0.4
Expected lapse rate 0% 0% 0% 0% 0% 0%
Share price at grant date - € 1.04 1.04 1.04 1.04 1.03 1.03
Exercise price - € n/a n/a n/a n/a n/a n/a
Expected volatility - %(1) 32.7 32.7 32.7 32.7 31.3 31.3
Expected life - years 3.73 3.73 2.97 2.97 3.49 3.49
Performance 2.81 2.81 2.81 2.81 2.57 2.57
projection period - years
Expected dividend yield - % 5.52 5.52 5.52 5.52 5.60 5.60
Risk-free rate based on European treasury bonds rate of return - % 2.65 p.a. 2.65 p.a. 2.65 p.a. 2.65 p.a. 2.82 p.a. 2.82 p.a.
Fair value per share - € 0.85 (2) 0.56(3) 0.88 (2) 0.60(3) 0.85 (2) 0.6 5(3)
Weighted average fair value of share - €(4) 0.77 0.77 0.78
Number of shares granted 1,333,333 666,667 333,333 166,667 426,667 213,333
Forfeited during the performance period 250,000 - -
July 2024 July 2024 (UK) July 2024 (UK align)
grant grant grant
TNR TSR TNR TSR TNR TSR
Valuation methodology Black-Scholes Monte-Carlo Black-Scholes Monte-Carlo Black-Scholes Monte-Carlo
Calculation for 2/3 ordinary 1/3 ordinary 2/3 ordinary award 1/3 ordinary award 2/3 ordinary award 1/3 ordinary award
award award
Total charge for the award - €m 3.8 2.3 0.5
Expected lapse rate 0% 0% 0% 0% 0% 0%
Share price at grant date - € 1.13 1.13 1.13 1.13 1.13 1.13
Exercise price - € n/a n/a n/a n/a n/a n/a
Expected volatility - %(1) 30.5 30.5 30.5 30.5 30.5 30.5
Expected life - years 2.92 2.92 3.59 3.59 1.59 1.59
Performance 2.55 2.55 2.55 2.55 0.55 0.55
projection period - years
Expected dividend yield - % nil (5) nil (5) nil (5) nil (5) nil (5) nil (5)
Risk-free rate based on European treasury bonds rate of return - % 2.53 p.a. 2.53 p.a. 2.53 p.a. 2.53 p.a. 3.14 p.a. 3.14 p.a.
Fair value per share - € 1.13 (2);(6) 0.70 (3),(6) 1.13 (2);(6) 0.62 (3),(6) 1.13 (2),(6) 0.94 (3);(6)
Weighted average fair value of share - €(4) 0.99 0.96 1.07
Number of shares granted 2,569,333 1,284,667 1,573,833 786,917 320,000 160,000
Forfeited during the performance period - - -
(1) Expected volatility of the Company's share price was determined by
calculating the historical volatility of the Company's share price over the
period immediately prior to the date of grant, commensurate with the term to
the end of the performance period.
(2) In accordance with IFRS 2, TNR is classed as a non-market performance
condition. As such, the fair value has been calculated using a Black-Scholes
model and does not take the expected outcome of the performance condition into
account. The Company currently estimates the expected vesting outcome for the
TNR award to be 100%.
(3) In accordance with IFRS 2, relative TSR is classed as a market-based
performance condition. As such, projected performance and the likelihood of
achieving the condition have been taken into account when calculating the fair
value using a Monte-Carlo model. The model also uses assumptions for the
expected volatility of comparator companies, the pairwise correlation between
comparator companies and TSR performance between the start of the performance
period and the date of grant.
(4) Charges for the awards are based on fair values calculated at the grant
date and expensed on a straight-line basis over the period that individuals
are providing service to the Group in respect of the awards.
The August 2022 UK grants vested on 19 June 2024. Vesting resulted in the
exercise of 535,960 shares with a weighted average share price of €1.14 at
the date of exercise. 475,290 shares have been surrendered in relation to the
partial settlement of certain participants' tax liabilities arising in respect
of the vesting. An amount of €1.1m was paid for the participants' tax
liabilities.
The August 2022 Germany grants vested on 29 July 2024. Vesting resulted in the
exercise of 34,179 shares with a weighted average share price of €1.13 at
the date of exercise. 23,985 shares have been surrendered in relation to the
partial settlement of certain participants' tax liabilities arising in respect
of the vesting. An amount of €0.02m was paid for the participants' tax
liabilities.
The September 2021 grant vested on 29 July 2024. Vesting resulted in the
exercise of 1,222,688 shares with a weighted average share price of €1.13 at
the date of exercise. 822,204 shares have been surrendered in relation to the
partial settlement of certain participants' tax liabilities arising in respect
of the vesting. An amount of €0.8m was paid for the participants' tax
liabilities.
Deferred Bonus Plan
The Deferred Bonus Plan ("DBP") is subject to rules approved by the Board and
to the Directors' Remuneration Policy (approved by shareholders triennially)
for Executive Directors of Sirius Real Estate Limited and two members of the
Senior Management Team within the Group.
The participants are subject to annual performance bonus conditions and
objectives to be agreed by the Remuneration Committee. At the end of the
applicable financial year, and on receipt of an annual performance bonus, as
determined by the Remuneration Committee, 50% or 65% depending on the
participants are awarded as cash with the remainder transferred into shares in
the Company. Of the remaining 50% or 35% for certain participants to be
transferred in shares, half is deferred for one year and the remaining half is
deferred for two years.
On 6 June 2023 an amount of 194,194 shares vested with a weighted average
share price of €1.02 at the date of exercise. 109,477 shares have been
surrendered in relation to the partial settlement of certain participants' tax
liabilities arising in respect of the vesting. An amount of €0.1m was paid
for the participants' tax liabilities.
On 7 July 2023 an amount of 6,347 shares vested with a weighted average share
price of €1.02 at the date of exercise. No shares have been surrendered in
relation to the settlement of tax liabilities arising in respect of the
vesting.
On 10 June 2024 an amount of 255,748 shares vested with a weighted average
share price of €1.18 at the date of exercise. 222,466 shares have been
surrendered in relation to the partial settlement of certain participants' tax
liabilities arising in respect of the vesting. An amount of €0.3m was paid
for the participants' tax liabilities.
Number of share awards
Movements in the number of awards outstanding are as follows:
Unaudited Audited
six months ended year ended
30 September 2024
31 March 2024
Number of Weighted Number of Weighted
share awards average share awards average
exercise exercise
price price
€m €m
Balance outstanding as at the beginning of the period (nil exercisable) 19,260,260 - 14,478,647 -
Maximum granted during the period 13,986,368 - 9,410,131 -
Forfeited during the period (1,680,387) - (1,218,500) -
Exercised during the period (3,531,554) - (2,059,541) -
Shares surrendered to cover employee tax obligations (2,835,123) - (1,350,477) -
Balance outstanding as at period end (nil exercisable) 25,199,564 - 19,260,260 -
The weighted average remaining contractual life for the share awards
outstanding as at 30 September 2024 was 1.87 years (31 March 2024: 1.42
years).
Employee benefit schemes
A reconciliation of share-based payments and employee benefit schemes and
their impact on the condensed interim consolidated income statement is as
follows:
Unaudited Unaudited
six months six months
ended ended
30 September 30 September
2024 2023
€m €m
Charge relating to 2021 LTIP - August 2021 grant (0.3) 0.2
Charge relating to 2021 LTIP - July 2022 grant 0.4 0.2
Charge relating to 2021 LTIP - June 2023 grant 0.5 0.3
Charge relating to 2021 LTIP - September 2023 grant 0.1 0.0
Charge relating to 2021 LTIP - July 2024 grant 0.4 -
Charge relating to 2021 SIP - September 2021 grant - 0.2
Charge relating to 2021 SIP - April 2022 grant 0.0 0.0
Charge relating to 2021 SIP - August 2022 grant 0.5 0.2
Charge relating to 2021 SIP - June 2023 grant 0.2 0.2
Charge relating to 2021 SIP - September 2023 grant 0.1 0.0
Charge relating to 2021 SIP - July 2024 grant 0.4 -
DBP 0.4 0.2
Total condensed interim consolidated income statement charge relating to 2.7 1.5
share-based payments
An amount of €2.7m (30 September 2023: €1.5m) is recognised in other
distributable reserves as per the condensed interim consolidated statement of
changes in equity. In addition, an amount of €3.8m (30 September 2023:
€1.4m) has been paid for participants' tax liabilities in relation to
share-based payment schemes
8. Finance income, finance expense and change in fair value of derivative
financial instruments
Unaudited Unaudited
six months six months
ended ended
30 September 30 September
2024 2023
€m €m
Bank interest income 4.0 1.2
Finance income from associates 1.1 1.1
Finance income 5.1 2.3
Bank loan interest expense (10.3) (6.8)
Interest expense related to lease liabilities (see note 13) (0.5) (0.6)
Amortisation of capitalised finance costs (1.5) (1.5)
Total interest expense (12.3) (8.9)
Bank charges (0.2) (0.3)
Other finance costs (0.2) (0.3)
Finance expense (12.5) (9.2)
Change in fair value of derivative financial instruments - (0.8)
Net finance expense (7.4) (7.7)
The change in fair value of derivative financial instruments reflects the
change in the market valuation of these financial instruments.
9. Taxation
Condensed interim consolidated income statement
Unaudited Unaudited
six months six months
ended ended
30 September 30 September
2024 2023
€m €m
Current income tax
Current income tax charge (2.0) (2.6)
Adjustment in respect of prior periods 0.2 (0.3)
Total current income tax (1.8) (2.9)
Deferred tax
Relating to origination and reversal of temporary differences (3.9) (5.2)
Total deferred tax (3.9) (5.2)
Income tax charge reported in the income statement (5.7) (8.1)
Deferred tax assets and liabilities
Recognised deferred tax assets and liabilities are attributable to the
following:
Condensed interim consolidated statement of financial position Condensed interim consolidated income statement
Unaudited Audited Unaudited Unaudited
30 September 31 March six months six months
2024 2024 ended ended
30 September 30 September
2024 2023
€m €m €m €m
Revaluation of owned investment property (111.0) (107.3) (3.7) (3.6)
Lease incentives (0.7) (0.7) (0.0) -
Fixed asset temporary differences (0.0) (0.0) 0.0 0.1
Effects of derivative financial instruments - - - 0.1
Fair value adjustment on leased investment properties (assets) 3.4 3.6 (0.2) -
Fair value adjustment on leased investment properties (liabilities) (3.2) (3.4) 0.2 -
Recognised tax losses offset against temporary differences 24.9 25.1 (0.2) (1.8)
Deferred tax income/(expense) (3.9) (5.2)
Deferred tax liabilities (86.6) (82.7)
The Group has not recognised a deferred tax asset on €201.4m (31 March 2024:
€191.2m) of tax losses carried forward and future share scheme deductions as
it is not considered probable that future profits will be available to offset
the deferred tax asset against. There is no expiration date on the losses and
future share scheme tax deductions will convert to tax losses on realisation.
A change in ownership of the Group may result in restriction on the Group's
ability to use tax losses in certain tax jurisdictions.
A deferred tax liability is recognised on temporary differences of €nil (31
March 2024: €nil) relating to the unremitted earnings of overseas
subsidiaries as the Group is able to control the timing of the reversal of
these temporary differences and it is probable that they will not reverse in
the foreseeable future.
Deferred tax assets and liabilities are offset when there is a legally
enforceable right to offset current tax assets against current tax liabilities
and when they relate to income taxes levied by the same taxation authority and
the Group intends to settle its current tax assets and liabilities on a net
basis.
The following is the analysis of the deferred tax balances (after offset) by
jurisdiction:
Assets Liabilities Net
Unaudited Audited Unaudited Audited Unaudited Audited
30 September 31 March 30 September 31 March 30 September 31 March
2024 2024 2024 2024 2024 2024
€m €m €m €m €m €m
UK - - - - - -
Germany 28.3 28.7 (114.9) (111.4) (86.6) (82.7)
Cyprus - - - - - -
Deferred tax assets/(liabilities) 28.3 28.7 (114.9) (111.4) (86.6) (82.7)
Current tax assets and liabilities
The following is the analysis of the current tax balances (after offset) by
jurisdiction:
Assets Liabilities Net
Unaudited Audited Unaudited Audited Unaudited Audited
30 September 31 March 30 September 31 March 30 September 31 March
2024 2024 2024 2024 2024 2024
€m €m €m €m €m €m
UK - - - - - -
Germany - - (4.6) (6.5) (4.6) (6.5)
Cyprus - - (0.4) (0.5) (0.4) (0.5)
Current tax liabilities - - (5.0) (7.0) (5.0) (7.0)
10. Earnings per share
The calculation of the basic, diluted, EPRA, headline and adjusted earnings
per share are based on the following data:
Unaudited Unaudited
six months six months
ended ended
30 September 30 September
2024 2023
€m €m
Earnings attributable to the owners of the Company
Basic earnings 55.5 31.7
Diluted earnings 55.5 31.7
EPRA earnings 56.5 48.2
Diluted EPRA earnings 56.5 48.2
Headline earnings 56.5 47.5
Diluted headline earnings 56.5 47.5
Adjusted
Basic earnings 55.5 31.7
(Deduct gain)/add loss on revaluation of investment properties (2.8) 10.1
Add loss on disposal of properties 0.2 0.0
Tax in relation to the revaluation gains/losses of investment properties and 3.9 5.3
gains/losses on disposal of properties above less REIT related tax effects
NCI relating to revaluation (net of related tax) 0.0 (0.0)
NCI relating to gain on disposal of properties (net of related tax) - (0.0)
(Deduct gain)/add loss on revaluation of investment property from associates (0.4) 0.5
Tax in relation to the revaluation gains/losses on investment property from 0.1 (0.1)
associates above
Headline earnings after tax 56.5 47.5
Add change in fair value of derivative financial instrument (net of related - 0.7
tax and NCI)
Deduct loss on revaluation of leased investment properties (net of related (0.6) (0.7)
tax)
Add adjusting items (net of related tax and NCI) 3.4 1.8
Adjusted earnings after tax 59.3 49.3
Number of shares
Weighted average number of ordinary shares for the purpose of basic, headline, 1,415,498,735 1,169,697,061
adjusted and basic EPRA earnings per share
Weighted average number of ordinary shares for the purpose of diluted 1,435,133,744 1,185,416,141
earnings, diluted headline earnings, diluted adjusted earnings and diluted
EPRA earnings per share
Basic earnings per share 3.92c 2.71c
Diluted earnings per share 3.87c 2.67c
Basic EPRA earnings per share 3.99c 4.12c
Diluted EPRA earnings per share 3.94c 4.07c
Headline earnings per share 3.99c 4.06c
Diluted headline earnings per share 3.94c 4.01c
Adjusted earnings per share 4.19c 4.21c
Adjusted diluted earnings per share 4.13c 4.16c
Adjusting items in the above table are made up from the following (as stated
within administrative expenses):
Notes Unaudited Unaudited
six months six months
ended ended
30 September 30 September
2024 2023
€m €m
Other expenses not included in FFO 5 0.7 0.3
Share-based payments 5 2.7 1.5
Adjusting items 3.4 1.8
The following table shows the reconciliation of basic to headline earnings,
separately disclosing the impact before tax (gross column) and after tax (net
column):
Unaudited six months Unaudited six months
ended 30 September 2024 ended 30 September 2023
Gross Net Gross Net
€m €m €m €m
Basic earnings 55.5 31.7
(Deduct gain)/add loss on revaluation of investment properties (2.8) 1.1 10.1 15.4
Add loss on disposal of properties 0.2 0.2 0.0 0.0
NCI relating to revaluation 0.0 0.0 0.0 (0.0)
NCI relating to gain on disposal of properties - - (0.0) (0.0)
(Deduct gain)/add loss on revaluation of investment property from associates (0.4) (0.3) 0.5 0.4
Headline earnings 56.5 47.5
EPRA earnings
Unaudited Unaudited
six months six months
ended ended
30 September 30 September
2024 2023
€m €m
Basic and diluted earnings attributable to owners of the Company 55.5 31.7
(Deduct gain)/add loss on revaluation of investment properties (2.8) 10.1
Add loss on disposal of properties (net of related tax) 0.2 0.0
Change in fair value of derivative financial instruments - 0.8
Deferred tax in respect of EPRA earnings adjustments 3.9 5.2
NCI relating to revaluation (net of related tax) 0.0 (0.0)
NCI relating to gain on disposal of properties (net of related tax) - (0.0)
(Deduct gain)/add loss on revaluation of investment property from associates (0.4) 0.5
Tax in relation to the revaluation gains/losses on investment property from 0.1 (0.1)
associates
EPRA earnings 56.5 48.2
For more information on EPRA earnings refer to Annex 1.
For the calculation of basic, headline, adjusted, EPRA and diluted earnings
per share the number of shares does not include 5,243,647 own shares held (30
September 2023: 7,292,222 shares), which are held by an Employee Benefit Trust
on behalf of the Group.
The weighted average number of shares for the purpose of diluted, diluted
EPRA, diluted headline and adjusted diluted earnings per share is calculated
as follows:
Unaudited Unaudited
six months six months
ended ended
30 September 30 September
2024 2023
Weighted average number of ordinary shares for the purpose of basic, basic 1,415,498,735 1,169,697,061
EPRA, headline and adjusted earnings per share
Weighted average effect of grant of share awards 19,635,009 15,719,080
Weighted average number of ordinary shares for the purpose of diluted, diluted 1,435,133,744 1,185,416,141
EPRA, diluted headline and adjusted diluted earnings per share
11. Net asset value per share
Unaudited Audited
30 September 31 March
2024 2024
€m €m
Net asset value
Net asset value for the purpose of assets per share (total equity attributable 1,608.2 1,407.3
to the owners of the Company)
Deferred tax liabilities (see note 9) 86.6 82.7
Adjusted net asset value attributable to the owners of the Company 1,694.8 1,490.0
Number of shares
Number of ordinary shares for the purpose of net asset value per share and 1,506,613,743 1,340,848,147
adjusted net asset value per share
Number of ordinary shares for the purpose of EPRA NRV, NTA and NDV per share 1,531,813,307 1,360,108,407
Net asset value per share 106.74c 104.96c
Adjusted net asset value per share 112.49c 111.12c
EPRA NRV EPRA NTA EPRA NDV
Unaudited 30 September 2024 €m €m €m
Net asset value as at period end (basic) 1,608.2 1,608.2 1,608.2
Diluted net asset value at fair value 1,608.2 1,608.2 1,608.2
Group
Deferred tax in respect of fair value movements on investment properties 86.6 86.6((1)) n/a
Intangibles n/a (3.1) n/a
Fair value of fixed interest rate debt n/a n/a 84.7
Real estate transfer tax 182.1 n/a n/a
Investment in associate
Deferred tax in respect of fair value movements on investment properties 7.2 7.2((1)) n/a
Fair value of fixed interest rate debt n/a n/a 4.3
Real estate transfer tax 9.5 n/a n/a
Total EPRA NRV, NTA and NDV 1,893.6 1698.9 1,697.2
EPRA NRV, NTA and NDV per share 123.62c 110.91c 110.80c
EPRA NRV EPRA NTA EPRA NDV
Audited 31 March 2024 €m €m €m
Net asset value as at period end (basic) 1,407.3 1,407.3 1,407.3
Diluted net asset value at fair value 1,407.3 1,407.3 1,407.3
Group
Deferred tax in respect of fair value movements on investment properties 82.7 82.7((1)) n/a
Intangibles n/a (3.3 ) n/a
Fair value of fixed interest rate debt n/a n/a 114.7
Real estate transfer tax 170.3 n/a n/a
Investment in associate
Deferred tax in respect of fair value movements on investment properties 7.0 7.0( (1)) n/a
Fair value of fixed interest rate debt n/a n/a 6.7
Real estate transfer tax 9.4 n/a n/a
Total EPRA NRV, NTA and NDV 1,676.7 1,493.7 1,528.7
EPRA NRV, NTA and NDV per share 123.28c 109.82c 112.40c
(1) The Group intends to hold onto the investment properties and has
excluded such deferred taxes for the whole portfolio as at period end except
for, when applicable, deferred tax in relation to assets held for sale.
For more information on adjusted net asset value and EPRA NRV, NTA and NDV,
refer to Annex 1.
The number of ordinary shares for the purpose of EPRA NRV, NTA and NDV per
share is calculated as follows:
Unaudited Audited
30 September 31 March
2024 2024
Number of ordinary shares for the purpose of net asset value per share and 1,506,613,743 1,340,848,147
adjusted net asset value per share
Effect of grant of share awards 25,199,564 19,260,260
Number of ordinary shares for the purpose of EPRA NRV, NTA and NDV per share 1,531,813,307 1,360,108,407
The number of shares does not include 5,243,647 own shares held (31 March
2024: 7,292,222 shares), which are held by an Employee Benefit Trust on behalf
of the Group.
12. Investment properties
The movement in the book value of investment properties is as follows:
Unaudited Audited
30 September 31 March
2024 2024
€m €m
Total investment properties at book value as at the beginning of the period 2,210.6 2,123.0
Additions - owned investment properties 126.1 74.1
Capital expenditure and broker fees 22.7 37.7
Disposals (2.2) (48.9)
Gain on revaluation of owned investment properties 3.6 12.4
Adjustment in respect of lease incentives (0.2) 0.7
Loss on revaluation of leased investment properties (0.6) (0.9)
Foreign exchange differences 12.6 12.5
Total investment properties at book value as at period end(1) 2,372.6 2,210.6
(1) Excluding assets held for sale when applicable.
The reconciliation of the valuation carried out by the external valuer to the
carrying values shown in the condensed interim consolidated statement of
financial position is as follows:
Unaudited Audited
30 September 31 March
2024 2024
€m €m
Owned investment properties at market value per valuer's report(1) 2,353.1 2,190.6
Adjustment in respect of lease incentives (4.1) (3.9)
Leased investment property market value 23.6 23.9
Total investment properties at book value as at period end(1) 2,372.6 2,210.6
(1) Excluding assets held for sale when applicable.
The fair value (market value) of the Group's owned investment properties at
period end has been arrived at on the basis of a valuation carried out at that
date by Cushman & Wakefield LLP (31 March 2024: Cushman & Wakefield
LLP), an independent valuer accredited by the Royal Institution of Chartered
Surveyors ("RICS"). The fee arrangement with Cushman & Wakefield LLP for
the valuation of the Group's properties is fixed, subject to an adjustment for
acquisitions and disposals.
The value of each of the properties has been assessed in accordance with the
RICS valuation standards on the basis of market value. The methodology and
assumptions used to determine the fair value of the properties are consistent
with the previous period.
The weighted average lease expiry remaining across the owned portfolio in
Germany as at period end was 2.6 years (31 March 2024: 2.7 years). The
weighted average lease expiry remaining across the owned portfolio in the UK
as at period end was 1.31 years (31 March 2024: 1.17 years). Licence
agreements in the UK are rolling and are included in the valuation.
.
The reconciliation of loss or gain on revaluation as per the condensed interim
consolidated income statement is as follows:
Unaudited Unaudited
six months six months
ended ended
30 September 30 September
2024 2023
€m €m
Gain/(loss) on revaluation of owned investment properties 3.6 (9.6)
Adjustment in respect of lease incentives (0.2) 0.2
Loss on revaluation of leased investment properties (0.6) (0.7)
Gain/(loss) on revaluation of investment properties reported in the income 2.8 (10.1)
statement
Included in the loss or gain on revaluation of investment properties reported
in the income statement are gross gains of €36.9m and gross losses of
€34.1m (30 September 2023: gross gains of €28.6m and gross losses of
€38.7m).
Other than the capital commitments disclosed in note 25, the Group is under no
contractual obligation to purchase, construct or develop any investment
property. The Group is responsible for routine maintenance of 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 period. Investment properties have been classed according to
their asset type. Information on these significant unobservable inputs per
class of investment property is disclosed below (excluding leased investment
properties).
The valuation for investment properties (including assets classified as held
for sale when applicable) is performed on a lease-by-lease basis due to the
mixed-use nature of the sites using:
» the discounted cash flow ("DCF") technique for the German portfolio;
or
» a blended approach of an initial DCF on the net operating income for a
period, reflecting the all-inclusive leases typically used in the BizSpace
business, followed by a capitalised income basis (where income is capitalised
by an appropriate yield which reflects the age, location, ownership, customer
base and agreement type) for the UK portfolio.
This gives rise to large ranges in the inputs.
Market Current rental Market rental Occupancy Gross Net Discount Void period
value rate per sqm rate per sqm % initial yield initial yield rate months
€m € € % % %
Unaudited 30 September 2024 Low High Low High Low High Low High Low High Low High Low High
Traditional business parks
Mature 400.6 2.88 8.87 2.80 8.53 88.1 100.0 5.1 9.8 4.3 7.6 4.5 7.0 6 15
Value add 640.5 2.29 10.36 3.91 8.07 48.8 100.0 3.7 9.7 1.2 6.6 4.6 7.4 9 18
Total traditional business parks 1,041.1 2.29 10.36 2.80 8.53 48.8 100.0 3.7 9.8 1.2 7.6 4.5 7.4 6 18
Modern business parks
Mature 200.7 5.67 9.79 4.42 10.59 85.5 100.0 5.2 6.9 4.2 5.8 4.4 5.4 6 12
Value add 276.8 3.92 7.85 4.31 8.79 59.9 92.1 4.5 8.4 3.2 7.1 4.8 6.8 6 18
Total modern business parks 477.5 3.92 9.79 4.31 10.59 59.9 100.0 4.5 8.4 3.2 7.1 4.4 6.8 6 18
Office
Mature 54.8 8.88 14.21 9.68 11.19 89.9 91.7 4.9 9.0 3.8 7.6 4.9 5.3 9 9
Value add 221.3 5.71 10.54 6.63 12.20 59.1 87.0 4.5 9.1 2.8 6.4 5.4 7.1 12 15
Total office 276.1 5.71 14.21 6.63 12.20 59.1 91.7 4.5 9.1 2.8 7.6 4.9 7.1 9 15
Total Germany 1,794.7 2.29 14.21 2.80 12.20 48.8 100.0 3.7 9.8 1.2 7.6 4.4 7.4 6 18
Current rental Market rental Occupancy Net initial yield Void period
Market rate per sqm rate per sqm % % months
value € €
€m
Unaudited 30 September 2024 Low High Low High Low High Low High Low High
Total mixed-use schemes 208.1 1.31 25.99 3.67 48.92 46.8 98.3 0.4 16.0 4 12
Total office 142.4 4.06 43.51 8.42 26.84 57.4 100.0 3.4 20.7 4 12
Total industrial 207.7 3.30 5.53 4.62 26.85 57.4 100.0 3.9 10.8 4 12
Total UK 558.2 1.31 43.51 3.67 48.92 46.8 100.0 0.4 20.7 4 12
Market Current rental Market rental Occupancy Gross Net Discount Void period
value rate per sqm rate per sqm % initial yield initial yield rate months
€m € € % % %
Audited Low High Low High Low High Low High Low High Low High Low High
31 March 2024
Traditional business parks
Mature 392.4 2.88 9.09 2.75 7.99 89.5 100.0 4.9 9.9 4.1 7.6 4.4 7.1 6 15
Value add 572.0 3.81 8.56 3.85 7.82 57.1 98.4 4.5 9.2 1.7 6.3 4.5 7.3 9 18
Total traditional business parks
964.4 2.88 9.09 2.75 7.99 57.1 100.0 4.5 9.9 1.7 7.6 4.4 7.3 6 18
Modern business parks
Mature 230.6 5.67 11.20 4.30 10.35 94.4 100.0 5.5 9.7 4.6 8.8 4.3 5.4 6 12
Value add 258.5 4.69 10.84 4.22 8.65 58.0 87.3 5.3 8.6 4.0 6.9 5.3 6.8 9 18
Total modern business parks
489.1 4.69 11.20 4.22 10.35 58.0 100.0 5.3 9.7 4.0 8.8 4.3 6.8 6 18
Office
Mature 46.9 12.27 15.52 9.66 11.14 90.9 93.5 7.4 8.7 6.2 7.3 4.9 4.9 9 9
Value add 228.6 7.47 12.46 6.60 12.20 54.4 89.2 4.0 9.4 2.3 6.9 5.3 7.1 9 15
Total office 275.5 7.47 15.52 6.60 12.20 54.4 93.5 4.0 9.4 2.3 7.3 4.9 7.1 9 15
Total Germany 1,729.0 2.88 15.52 2.75 12.20 54.4 100.0 4.0 9.9 1.7 8.8 4.3 7.3 6 18
Current rental Market rental Occupancy Net initial yield Void period
Market rate per sqm rate per sqm % % months
value € €
€m
Audited 31 March 2024 Low High Low High Low High Low High Low High
Total mixed-use schemes 153.2 0.56 28.74 5.69 47.89 46.6 96.6 1.4 13.3 4 12
Total office 136.5 1.28 45.29 8.16 26.23 46.7 100.0 1.3 16.0 4 12
Total industrial 171.9 2.12 12.70 3.40 14.14 56.2 99.9 4.4 11.9 4 12
Total UK 461.6 0.56 45.29 3.40 47.89 46.6 100.0 1.3 16.0 4 12
As a result of the level of judgement and estimates used in arriving at the
market valuations, the amounts which may ultimately be realised in respect of
any given property may differ from valuations shown in the statement of
financial position. Key inputs are considered to be inter-related whereby
changes in one key input can result in changes in other key inputs. The impact
of changes in relation to the key inputs is also shown in the table below:
Unaudited 30 September 2024 Change of 5% Change of 0.25% Change of 0.5% Change of 0.5%
Market in market rental rates in discount rates in gross initial yield in net initial yield
value €m €m €m €m
€m
Increase Decrease Increase Decrease Increase Decrease Increase Decrease
Total traditional business parks 1,041.1 52.2 (52.6) (20.4) 20.5 (78.0) 92.3 (101.1) 127.9
Total modern business parks 477.5 22.4 (22.3) (9.6) 10.1 (33.7) 39.5 (41.0) 50.1
Total office 276.1 14.1 (14.2) (5.7) 5.8 (19.8) 23.4 (26.3) 33.3
Market value Germany 1,794.7 88.7 (89.1) (35.7) 36.4 (131.5) 155.2 (168.4) 211.3
Market Change of 5% Change of 0.5%
Unaudited 30 September 2024 value in market rental rates in net initial yield
€m €m €m
Increase Decrease Increase Decrease
Total mixed-use schemes 208.1 8.6 (8.0) (12.6) 15.0
Total office 142.4 4.1 (4.3) (6.0) 6.4
Total industrial 207.7 8.7 (8.4) (12.9) 15.1
Market value UK 558.2 21.4 (20.7) (31.5) 36.5
Audited Change of 5% Change of 0.25% Change of 0.5% Change of 0.5%
31 March 2024
Market in market rental rates in discount rates in gross initial yield in net initial yield
value €m €m €m €m
€m
Increase Decrease Increase Decrease Increase Decrease Increase Decrease
Total traditional business parks 964.4 48.0 (47.7) (18.8) 19.1 (72.0) 85.1 (91.9) 115.5
Total modern business parks 489.1 23.2 (23.3) (9.7) 9.8 (33.7) 39.3 (41.0) 49.4
Total office 275.5 13.7 (14.1) (5.3) 5.6 (19.4) 22.9 (25.5) 32.2
Market value Germany
1,729.0 84.9 (85.1) (33.8) 34.5 (125.1) 147.3 (158.4) 197.1
Change of 5% Change of 0.5%
Market in market rental rates in net initial yield
value €m €m
€m
Audited 31 March 2024 Increase Decrease Increase Decrease
Total mixed-use schemes 153.2 5.7 (5.8) (8.8) 9.8
Total office 136.5 3.9 (4.3) (5.8) 6.1
Total industrial 171.9 6.8 (6.9) (10.6) 12.0
Market value UK 461.6 16.4 (17.0) (25.2) 27.9
13. Right of use assets and lease liabilities
Set out below are the carrying amounts of right of use assets (excluding those
classified as investment properties) recognised and the movements during the
period:
Office Total
€m €m
As at 31 March 2023 (audited) 14.4 14.4
Depreciation expense (0.9) (0.9)
As at 30 September 2023 (unaudited) 13.5 13.5
Depreciation expense (0.9) (0.9)
Foreign exchange differences 0.0 0.0
As at 31 March 2024 (audited) 12.6 12.6
Depreciation expense (0.9) (0.9)
Foreign exchange differences 0.0 0.0
As at 30 September 2024 (unaudited) 11.7 11.7
In addition to office spaces the Group is also counterparty to long-term
leasehold agreements and head leases relating to commercial property. Right of
use assets amounting to €23.6m (31 March 2024: €23.9m) are classified as
investment properties, of which €22.0m (31 March 2024: €21.8m) relate to
long-term leasehold and €1.6m (31 March 2024: €2.1m) relate to commercial
property.
Set out below are the carrying amounts of lease liabilities and the movements
during the period:
Unaudited Audited
30 September 31 March
2024 2024
€m €m
Balance as at the beginning of the period (37.8) (39.6)
Accretion of interest (0.5) (1.1)
Payments 1.7 3.3
Foreign exchange differences (0.5) (0.4)
Total (37.1) (37.8)
Current lease liabilities as at period end (2.4) (2.3)
Non-current lease liabilities as at period end (34.7) (35.5)
The following table sets out the carrying amount, by maturity, of the Group's
lease liabilities:
Unaudited 30 September 2024 Within 1 year 1-5 years 5+ years Total
€m €m €m €m
Commercial property(1) (0.2) (0.9) - (1.1)
Long-term leasehold(1) (0.2) (1.1) (20.7) (22.0)
Office space (2.0) (7.5) (4.5) (14.0)
Total (2.4) (9.5) (25.2) (37.1)
Audited 31 March 2024 Within 1 year 1-5 years 5+ years Total
€m €m €m €m
Commercial property(1) (0.2) (1.0) - (1.2)
Long-term leasehold(1) (0.2) (1.1) (20.5) (21.8)
Office space (1.9) (7.5) (5.4) (14.8)
Total (2.3) (9.6) (25.9) (37.8)
(1) These lease liabilities relate to right of use assets recorded as
investment properties.
The overall weighted average discount rate used for the period is 2.8% (31
March 2024: 2.8%).
14. Other non-current financial assets
Unaudited Audited
30 September 31 March
2024 2024
€m €m
Deposits 4.0 4.0
Loans to associates 45.1 45.1
Balance as at period end 49.1 49.1
Loans to associates relate to shareholder loans granted to associates by the
Group. The loans terminate on 31 December 2026 and are charged at a fixed
interest rate. The expected credit loss has been considered based on multiple
factors such as history of repayments, forward looking budgets and forecasts.
Based on the assessment the expected credit loss was immaterial.
15. Investment in associates
The principal activity of the associates is the investment in, and development
of, commercial property located in Germany and to provide conventional and
flexible workspace. Since the associates are individually immaterial the Group
is disclosing aggregated information for the associates.
The following table illustrates the summarised financial information of the
Group's investment in associates:
Unaudited Audited
30 September 31 March
2024 2024
€m €m
Current assets 28.7 29.7
Non-current assets(1) 362.8 360.7
Current liabilities (25.6) (24.9)
Non-current liabilities (299.6) (298.7)
Equity 66.3 66.8
Unrecognised accumulated losses 4.8 5.3
Subtotal 71.1 72.1
Group's share in equity - 35% 24.9 25.2
(1) Non-current assets are only investment properties. These are valued using
the same methodology as the German investment properties as stated in note 12.
Unaudited Unaudited
six months six months
ended ended
30 September 30 September
2024 2023
€m €m
Net operating income 12.9 9.8
Loss on revaluation of investment properties (0.7) (3.3)
Administrative expense (3.4) (1.8)
Operating profit 8.8 4.7
Net finance costs (4.3) (4.4)
Profit before tax 4.5 0.3
Taxation (0.9) (0.5)
Unrecognised (profit)/loss (0.5) 1.1
Total profit and comprehensive income for the period after tax 3.1 0.9
Group's share of profit for the period - 35% 1.1 0.3
Included within the non-current liabilities are shareholder loans amounting to
€128.8m (31 March 2024: €128.8m). As at period end no contingent
liabilities existed (31 March 2024: none). The associates had contracted
capital expenditure for development and enhancements of €2.8m as at period
end (31 March 2024: €3.0m).
The following table illustrates the movement in investment in associates:
Unaudited Audited
30 September 31 March
2024 2024
€m €m
Balance as at the beginning of the period 25.2 26.7
Dividend received (1.4) (2.1)
Share of profit 1.1 0.6
Balance as at period end 24.9 25.2
16. Trade and other receivables
Unaudited Audited
30 September 31 March
2024 2024
€m €m
Gross trade receivables 25.4 20.7
Expected credit loss provision (9.6) (7.8)
Net trade receivables 15.8 12.9
Other receivables 17.4 20.6
Prepayments 5.6 8.9
Balance as at period end 38.8 42.4
Other receivables include primarily accrued income of €5.4m (31 March 2024:
€4.5m), lease incentives of €4.1m (31 March 2024: €3.9m), accrued income
from investment in associates of €4.5m (31 March 2024: €3.7m) and as at 31
March 2024 a receivable regarding the disposal of Stoke of €3.5m.
As at period end there were no prepayments for acquisitions costs, for the
year ended 31 March 2024, prepayments included costs of €7.1m relating to
the acquisitions of new sites in Dresden, Germany (€1.0m), Klipphausen,
Germany (€1.4m) and Gloucestershire, UK (€4.7m).
17. Cash and cash equivalents
Unaudited Audited
30 September 31 March
2024 2024
€m €m
Cash at bank 61.1 125.3
Short-term investments 236.5 89.2
Cash restricted under contractual terms:
- Deposit for bank guarantees 3.1 3.0
- Deposits received from tenants 28.6 26.7
Balance as at period end 329.3 244.2
Cash at bank earns interest at floating rates based on daily bank deposit
rates. The fair value of cash as at period end is €329.3m (31 March 2024:
€244.2m).
Short-term investments are an investment in Money Market Funds. The Group
invests only in highly liquid products with short maturities, which are
readily convertible to a known amount of cash and that are subject to an
insignificant risk of changes in value.
Tenants' deposits are legal securities of tenants retained by the Group
without the right to use these cash deposits for purposes other than strictly
tenant related transactions (e.g. move-out costs, costs due to non-compliance
with certain terms of the lease agreement or late rent/service charge
payments). The tenants' deposits meet the definition of cash as the Group can
access these deposits on demand.
Cash is held by reputable banks and the Group assessed the expected credit
loss to be immaterial.
18. Trade and other payables
Unaudited Audited
30 September 31 March
2024 2024
€m €m
Trade payables 5.3 14.6
Accrued expenses 43.7 43.9
Provisions 3.8 3.1
Interest and amortisation payable 6.6 6.2
Tenant deposits 28.6 26.8
Unearned revenue 14.4 11.5
Other payables 9.7 8.6
Balance as at period end 112.1 114.7
The Group have recognised a provision of €3.8m (31 March 2024: €3.1m) for
an ongoing legal claim in relation to a property which was sold during 2017.
The recognised provision as at 31 March 2024 has been reassessed and the
provision has increased by €0.7m as at 30 September 2024.The provision
amount represents the Directors best estimate of the potential outflow at the
present time, however, the Directors recognise there is uncertainty relating
to this amount. The expected timing of settlement of this provision is less
than 12 months and is not discounted due to the expected timing of settlement.
Unearned revenue includes service charge amounts of €2.4m (31 March 2024:
€2.5m). Service charge income is only recognised as income when the
performance obligations are met.
Included within other payables are credit balances due to tenants in relation
to over collections of service charge in amount of €3.9m (31 March 2024:
€4.7m).
The following table breaks down the balance of accrued expenses:
Unaudited Audited
30 September 31 March 2024
2024 €m
€m
Costs relating to service charge 28.1 23.2
Bonuses 5.4 6.8
Costs relating to non-recurring projects - 0.8
Administrative costs 2.2 5.4
Other costs 8.0 7.7
Total 43.7 43.9
19. Interest-bearing loans and borrowings
Interest rate Loan maturity date Unaudited Audited
% 30 September 31 March 2024
2024 €m
€m
Current
Berlin Hyp AG
- fixed rate facility 4.26 31 October 2030 2.7 2.6
Saarbrücken Sparkasse
- fixed rate facility 1.53 28 February 2025 13.0 13.5
Deutsche Pfandbriefbank AG
- fixed rate facility 4.25 31 December 2030 1.3 1.3
Schuldschein
- floating rate facility Floating(1) 6 January 2025 5.0 5.0
- fixed rate facility 1.70 3 March 2025 10.0 10.0
Capitalised finance charges on all loans (2.8) (2.8)
29.2 29.6
Non-current
Berlin Hyp AG
- fixed rate facility 4.26 31 October 2030 164.9 166.3
Deutsche Pfandbriefbank AG
- fixed rate facility 4.25 31 December 2030 56.1 56.7
Corporate bond I
- fixed rate 1.125 22 June 2026 400.0 400.0
Corporate bond II
- fixed rate 1.75 24 November 2028 359.9 300.0
Capitalised finance charges on all loans (15.0) (7.5)
965.9 915.5
Total 995.1 945.1
(1) This unsecured facility has a floating rate of 1.70% over six month
EURIBOR (not less than 0%).
The movement of loans and borrowings for the period ended 30 September 2024
comprised of €2.3m repayment of loans, €59.9m loan drawdowns and €(7.5)m
net movement of capitalisation of finance charges being €(9.0)m new
capitalised finance charges and €1.5m amortisation of finance charges (31
March 2024: €248.1m, €228.3m and €0.4m respectively).
The Group has pledged 15 (31 March 2024: 15) investment properties to secure
several separate interest-bearing debt facilities granted to the Group. The 15
(31 March 2024: 15) properties had a combined valuation of €537.2m as at
period end (31 March 2024: €528.3m).
The Group's loans are subject to various covenants, which include interest
cover ratio, loan to value, debt service cover, occupancy, etc. as stipulated
in the loan agreements.
During the period, the Group did not breach any of its loan covenants, nor did
it default on any of its obligations under its loan agreements and the Group
has a sufficient level of headroom as at period end.
Refer to note 2(d) where the Group discloses forecast covenant compliance with
regard to management's going concern assessment.
Berlin Hyp AG
On 1 November 2023, the Group agreed to a facility agreement with Berlin Hyp
AG for €170.0m. The loan terminates on 31 October 2030. Amortisation is 1.5%
per annum with the remainder due in one instalment on the final maturity date.
The loan facility is charged at a fixed interest rate of 4.26%. This facility
is secured over nine property assets. No changes to the terms of the facility
have occurred during the six month period ended 30 September 2024.
Saarbrücken Sparkasse
On 28 March 2018, the Group agreed to a facility agreement with Saarbrücken
Sparkasse for €18.0m. The loan terminates on 28 February 2025. Amortisation
is 4.0% per annum with the remainder due in one instalment on the final
maturity date. The facility is charged at a fixed interest rate of 1.53%. The
facility is secured over one property asset. No changes to the terms of the
facility have occurred during the six month period ended 30 September 2024.
Deutsche Pfandbriefbank AG
On 1 January 2024, the Group agreed to a facility agreement with Deutsche
Pfandbriefbank AG for €58.3m. The loan terminates on 31 December 2030.
Amortisation is 2.1% per annum with the remainder due in one instalment on the
final maturity date. The loan facility is charged at a fixed interest rate of
4.25%. This facility is secured over five property assets. No changes to the
terms of the facility have occurred during the six month period ended 30
September 2024.
Schuldschein
On 2 December 2019, the Group agreed new loan facilities in the form of an
unsecured Schuldschein for €20.0m. On 25 February 2020, the Group agreed new
loan facilities in the form of an unsecured Schuldschein for €30.0m. In
total the unsecured facility amounts to €50.0m spread over five tranches and
is charged at a blended interest rate of 1.60% and average maturity of 2.6
years with no amortisation. The first and second tranches totalling €15.0m
were repaid during the twelve month period ended 31 March 2023.
On 30 June 2023, the Group repaid an amount of €20.0m resulting in a
remaining €15.0m for the loan facility. No changes to the terms of the
facility have occurred during the six month period ended 30 September 2024.
Corporate bond I
On 22 June 2021, the Group raised its inaugural corporate bond for €400.0m.
The bond, which is listed on the Luxembourg Stock Exchange, has a term of five
years and an interest rate of 1.125% due annually on its anniversary date,
with the principal balance due on 22 June 2026. No changes to the terms of the
facility have occurred during the six month period ended 30 September 2024.
Corporate bond II
On 24 November 2021, the Group issued its second corporate bond for €300.0m.
The bond, which is listed on the Luxembourg Stock Exchange, has a term of
seven years and an interest rate of 1.75% due annually on its anniversary
date, with the principal balance due on 24 November 2028.
On 17 May 2024, the Group issued a bond tap for €59.9m to be consolidated
and form a single series with the €300.0m corporate bond above with the same
conditions attached.
EPRA loan to value ("LTV")
Proportionate consolidation
Unaudited 30 September 2024 Group Investment in associates Total
€m €m €m
Interest-bearing loans and borrowings((1)) 235.2 52.3 287.5
Corporate bonds 759.9 - 759.9
Net payables((2)) 74.3 5.7 80.0
Cash and cash equivalents (329.3) (6.6) (335.9)
Net debt (a) 51.4 791.5
740.1
Investment properties 2,372.6 127.0 2,499.6
Plant and equipment 15.2 - 15.2
Intangible assets 3.1 - 3.1
Loan to associates 45.1 - 45.1
Total property value (b) 2,436.0 127.0 2,563.0
EPRA LTV (a/b) 30.4% 40.5% 30.9%
Proportionate consolidation
Audited 31 March 2024 Group Investment in associates Total
€m €m €m
Interest-bearing loans and borrowings((1)) 245.1 52.2 297.3
Corporate bonds 700.0 - 700.0
Net payables((2)) 75.3 5.9 81.2
Cash and cash equivalents (244.2) (7.4) (251.6)
Net debt (a) 776.2 50.7 826.9
Investment properties 2,210.6 126.2 2,336.8
Plant and equipment 7.8 - 7.8
Intangible assets 3.3 - 3.3
Loan to associates 45.1 - 45.1
Total property value (b) 2,266.8 126.2 2,393.0
EPRA LTV (a/b) 34.2% 40.2% 34.6%
(1) Excludes corporate bonds as shown as a separate line.
(2) This is made up of deposits, trade and other receivables, derivative
financial instruments, trade and other payables and current tax liabilities.
20. Financial instruments
Fair values
Set out below is a comparison by category of carrying amounts and fair values
of all the Group's financial instruments that are carried in the financial
statements (excluding assets held for sale and liabilities directly associated
with assets held for sale when applicable):
Unaudited Audited
30 September 2024 31 March 2024
Fair value Carrying Fair Carrying Fair
hierarchy amount value amount value
level €m €m €m €m
Financial assets
Cash and cash equivalents 329.3 329.3 244.2 244.2
Trade and other receivables(1) 33.1 33.1 33.5 33.5
Loans to associates 2 45.1 45.1 45.1 45.1
Financial liabilities
Trade and other payables 50.2 50.2 56.2 56.2
Interest-bearing loans and borrowings(2)
Floating rate borrowings 2 5.0 5.0 5.0 5.0
Fixed rate borrowings 2 1,007.9 923.2 950.4 835.7
(1) This is made up of net trade receivables, other receivables (excluding
lease incentives) and deposits.
(2) Excludes loan issue costs.
All amounts in the table above are carried at amortised cost.
Fair value hierarchy
For financial assets or liabilities measured at amortised cost and whose
carrying value is a reasonable approximation to fair value there is no
requirement to analyse their value in the fair value hierarchy.
The below analyses financial instruments measured at fair value into a fair
value hierarchy based on the valuation technique used to determine fair value:
Level 1: quoted prices (unadjusted) in active markets for identical assets or
liabilities;
Level 2: inputs other than quoted prices included within Level 1 that are
observable for the asset or liability, either directly (i.e. as prices) or
indirectly (i.e. derived from prices); and
Level 3: inputs for the asset or liability that are not based on observable
market data (unobservable inputs).
The fair values of the loans and borrowings have been calculated based on a
discounted cash flow model using the prevailing market rates of interest.
21. Issued share capital
Authorised Number Share
of shares capital
€m
Ordinary shares of no par value Unlimited -
As at 30 September 2024 (unaudited) and 31 March 2024 (audited) Unlimited -
Issued and fully paid Number Share
of shares capital
€m
As at 31 March 2023 (audited) 1,168,371,222 -
Issued ordinary shares 1,859,000 -
Transfer of share capital to other distributable reserves - -
Shares issued to the Employee Benefit Trust - -
Shares allocated by the Employee Benefit Trust 200,541 -
As at 30 September 2023 (unaudited) 1,170,430,763 -
Issued ordinary shares 170,417,384 164.1
Transfer of share capital to other distributable reserves - (164.1)
Shares issued to the Employee Benefit Trust - -
Shares allocated by the Employee Benefit Trust - -
As at 31 March 2024 (audited) 1,340,848,147 -
Issued ordinary shares 163,717,021 178.7
Transfer of share capital to other distributable reserves - (178.7)
Shares issued to the Employee Benefit Trust - -
Shares allocated by the Employee Benefit Trust 2,048,575 -
As at 30 September 2024 (unaudited) 1,506,613,743 -
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.
For details of the share capital movements refer to the issued share capital
column of the statement of changes in equity.
Pursuant to an equity raise of €180.9m on 11 July 2024, the Company issued
162,234,042 ordinary shares at an issue price of £0.94, resulting in the
Company's overall issued share capital being 1,511,857,390 ordinary shares.
Costs associated with the equity raise amounted to €6.3m. The net proceeds
of the equity raise was €174.6m.
In addition, during the period the Company issued 1,482,979 shares in relation
to the exercise of the LTIP 2021 (August 2021 grant) as per note 7.
Treasury shares held by the Employee Benefit Trust are disclosed as own shares
held. During the period nil shares were acquired and 2,048,575 were allocated
by the Employee Benefit Trust in relation to the issue of SIP and DBP shares
as per note 7. A total of 5,243,647 own shares purchased at an average share
price of €1.1061 are held by the Employee Benefit Trust (31 March 2024:
7,292,222 shares purchased at an average share price of €1.1108). The total
number of shares with voting rights was 1,511,857,390 (31 March 2024:
1,348,140,369). No votes are cast in respect of the shares held in the
Employee Benefit Trust in connection with the Company's share plans and
dividends paid and payable are subject to a standing waiver.
The LTIP, SIP and DBP shares were issued at nil-cost, and the fair value of
€4.1m for these shares recorded in the share capital account has been
transferred back to the other distributable reserves.
All shares issued in the period were issued under general authority. No shares
were bought back in the period (31 March 2024: none) and there are no Treasury
Shares held directly by the Company at the period end (31 March 2024: none).
22. Other reserves
Other distributable reserve
This reserve comprises of amounts in relation to scrip dividends transfers
from share capital, share-based payment transactions, equity raises and the
share buy-backs. The balance of €735.6m in total at period end (31 March
2024: €605.7m) is considered distributable.
Foreign currency translation reserve
The Group holds a foreign currency translation reserve which relates to
foreign currency translation effect during the course of the business with the
UK segment.
The following table illustrates the movement in the foreign currency
translation reserve:
Unaudited Audited
30 September 31 March
2024 2024
€m €m
Balance as at the beginning of the period (6.0) (18.9)
Foreign currency translation 13.2 12.9
Balance as at period end 7.2 (6.0)
The movement in the period of €13.2m gain is a result of an increasing
GBP/EUR rate which is higher at period end compared with 31 March 2024 (31
March 2024: €12.9m gain).
23. Dividends
On 3 June 2024, the Company announced a dividend of 3.05c per share, with a
record date of 28 June 2024 for UK shareholders and 28 June 2024 for South
African ("SA") shareholders and payable on 25 July 2024. On the record date,
1,349,623,348 shares were in issue. Since there were no shares held in
treasury, 1,349,623,348 shares (including shares held by the Employee Benefit
Trust) were entitled to participate in the dividend. The Company's Employee
Benefit Trust waived its rights to the dividend. The Company offered a
dividend reinvestment plan ("DRIP") to shareholders as an alternative to a
cash dividend. DRIP allows shareholders to reinvest the dividend to purchase
additional shares in the Company in the open market, not newly issued shares
by the Company. The total value of the dividend paid including that used for
the DRIP was €41.3m.
On 20 November 2023, the Company announced a dividend of 3.00c per share, with
a record date of 15 December 2023 for UK shareholders and 14 December 2023 for
SA shareholders and payable on 25 January 2024. On the record date,
1,348,140,369 shares were in issue. Since there were no shares held in
treasury, 1,348,140,369 shares (including shares held by the Employee Benefit
Trust) were entitled to participate in the dividend. The Company's Employee
Benefit Trust waived its rights to the dividend. The Company offered a DRIP to
shareholders as an alternative to a cash dividend. The total value of the
dividend paid including that used for the DRIP was €40.3m.
On 5 June 2023, the Company announced a dividend of 2.98c per share, with a
record date of 14 July 2023 for the UK and SA shareholders and payable on 17
August 2023. On the record date, 1,177,722,985 shares were in issue. Since
there were no shares held in treasury, 1,177,722,985 shares (including shares
held by the Employee Benefit Trust) were entitled to participate in the
dividend. The Company's Employee Benefit Trust waived its rights to the
dividend, reducing the total dividend (payable in cash) from €35.1m to
€34.9m (€35.0m as at settlement date).
The Group's profit attributable to the equity holders of the Company for the
period was €55.5m (30 September 2023: €31.7m). The Board has authorised a
dividend relating to the six month period ended 30 September 2024 of 3.06c per
share, representing 71% of FFO((1)).
It is expected that, for the dividend authorised relating to the six month
period ended 30 September 2024, the ex-dividend date will be 11 December 2024
for shareholders on the SA register and 12 December 2024 for shareholders on
the UK register. It is further expected that the record date will be 13
December 2024 for shareholders on both the SA register and the UK register and
the dividend will be paid on 23 January 2025. A detailed dividend announcement
will be made on 18 November 2024, including details of a DRIP alternative.
(1) Adjusted profit before tax adjusted for foreign exchange effects,
depreciation and amortisation (excluding depreciation relating to IFRS 16),
amortisation of financing fees, adjustments in respect of IFRS 16 and current
tax receivable/incurred.
The dividend per share was calculated as follows:
Unaudited Unaudited
six months six months
ended ended
30 September 30 September
2024 2023
€m €m
Reported profit before tax 61.2 39.8
Adjustments for:
(Gain)/loss on revaluation of investment properties (2.8) 10.1
Loss on revaluation of leased investment properties (0.6) (0.7)
Loss on disposal of properties 0.2 0.0
(Gain)/loss on revaluation of investment property from associates and related (0.3) 0.4
tax
Other adjusting items(1) 3.4 1.8
Change in fair value of financial derivatives - 0.8
Adjusted profit before tax 61.1 52.2
Adjustments for:
Foreign exchange effects(2) (2.1) -
Depreciation and amortisation (excluding depreciation relating to IFRS 16) 1.7 1.7
Amortisation of financing fees 1.5 1.5
Adjustment in respect of IFRS 16 0.3 0.5
Current taxes incurred (see note 9) (1.8) (2.9)
Funds from operations, six months ended 30 September 60.7 53.0
Dividend pool, six months ended 30 September(3) 46.0 35.1
Dividend per share, six months ended 30 September 3.06c 3.00c
(1) Includes the effect of other expenses not included in FFO and share
awards. See note 7 for details.
(2) Management decided to exclude foreign exchange effects from the funds from
operations calculation.
(3) Calculated as 71% of FFO of 3.06c per share (30 September 2023: 3.00c per
share using 66% of FFO), based on average number of shares outstanding of
1,415,498,735 (30 September 2023: 1,169,697,061).
For more information on adjusted profit before tax and funds from operations,
refer to Annex 1.
Calculations contained in this table are subject to rounding differences.
24. Related parties
Related parties are defined as those persons and companies that control the
Group, or that are controlled, jointly controlled or subject to significant
influence by the Group.
Key management personnel
Fees paid to people considered to be key management personnel (the Company
Board of Directors (excluding the Senior Independent Director) and the
Executive Committee members) of the Group during the period include:
Condensed interim consolidated income statement Unaudited Unaudited
30 September six months
2024 ended
€m 30 September
2023
€m
Directors' fees 0.2 0.3
Salary and employee benefits 1.8 2.9
Share-based payments 1.4 1.0
Total 3.4 4.2
Included within salary and employee benefits are pension contributions
amounting to €0.1m (30 September 2023: €0.1m).
There are no payables as at 30 September 2024 from Directors' fees and salary
and employee benefits (31 March 2024: €nil).
Associates
The following balances and transactions with associates exist as at the
reporting date:
Condensed interim consolidated statement of financial position Unaudited Audited
30 September 31 March
2024 2024
€m €m
Loans to associates 45.1 45.1
Trade and other receivables 5.5 4.6
Total 50.6 49.7
Trade and other receivables relate to amounts owed from the services supplied
to the associates and are due to be settled in the normal course of business.
As a result of unchanged credit quality, no material expected credit losses
have been recognised in the period.
Condensed interim consolidated income statement Unaudited Unaudited
six months six months
ended ended
30 September 30 September
2024 2023
€m €m
Services supplied 8.5 8.4
Interest income 1.1 1.1
Total 9.6 9.5
Services provided to associates primarily relate to the provision of property
and asset management services. Providing these services, the Group generated
service charge and other income from managed properties of €8.5m (30
September 2023: €8.4m) as shown in note 4.
A performance fee arrangement is in place between the associates and the
Group. Within services supplied, the performance fee was €2.2m (30 September
2023: €0.8m).
For details regarding the investment in associates, including dividends
received, see note 15.
25. Capital and other commitments
As at period end, the Group had contracted capital expenditure for development
and enhancements on existing properties of €24.5m (31 March 2024: €20.9m)
and no capital commitments (31 March 2024: €nil).
The above noted were committed but not yet provided for in the financial
statements.
26. Post balance sheet events
On 31 October 2024, the Group notarised the acquisition of an asset in
Carnforth, UK, for £9.7m (€11.6m) which includes transaction costs. The
multi-let park comprises 15,993 sqm of space with eight tenants on full
repairing and insuring leases. The site also has planning permission for 3,252
sqm of new industrial space. The transaction completed in October 2024.
On 10 July 2024, the Group notarised the acquisition of an asset in
Oberhausen, Germany, for €3.8m which includes transaction costs. The
acquisition secures 35,894 sqm of prime development land adjacent to existing
77,600 sqm multi-use business park in the Ruhr region. The transaction
completed in October 2024.
Business analysis
Non-IFRS measures
Unaudited Unaudited
six months six months
ended ended
30 September 30 September
2024 2023
€m €m
Total profit for the period attributable to the owners of the Company 55.5 31.7
(Deduct gain)/add loss on revaluation of investment properties (2.8) 10.1
Add loss on disposal of properties (net of related tax) 0.2 0.0
Change in fair value of derivative financial instruments - 0.8
Deferred tax in respect of EPRA earnings adjustments 3.9 5.2
NCI relating to revaluation (net of related tax) 0.0 (0.0)
NCI relating to (loss)/gain on disposal of properties (net of related tax) - (0.0)
(Deduct gain)/add loss on revaluation of investment property from associates (0.4) 0.5
Tax in relation to the revaluation gains/losses on investment property from 0.1 (0.1)
associates above
EPRA earnings 56.5 48.2
Deduct change in deferred tax relating to derivative financial instruments - 0.1
Deduct change in fair value of derivative financial instruments - (0.8)
NCI in respect of the above - -
Headline earnings after tax 56.5 47.5
Add change in fair value of derivative financial instruments (net of related - 0.7
tax and NCI)
Deduct loss on revaluation of leased investment properties (net of related (0.6) (0.7)
tax)
Add adjusting items(1) (net of related tax and NCI) 3.4 1.8
Adjusted earnings after tax 59.3 49.3
(1) See note 10 of the Interim Report.
For more information on EPRA earnings refer to Annex 1.
Unaudited Unaudited
six months six months
ended ended
30 September 30 September
2024 2023
€m €m
EPRA earnings 56.5 48.2
Weighted average number of ordinary shares 1,415,498,735 1,169,697,061
EPRA earnings per share (cents) 3.99 4.12
Headline earnings after tax 56.5 47.5
Weighted average number of ordinary shares 1,415,498,735 1,169,697,061
Headline earnings per share (cents) 3.99 4.06
Adjusted earnings after tax 59.3 49.3
Weighted average number of ordinary shares 1,415,498,735 1,169,697,061
Adjusted earnings per share (cents) 4.19 4.21
Annex 1 - non-IFRS measures
Basis of preparation
The Directors of Sirius Real Estate Limited have chosen to disclose additional
non-IFRS measures; these include EPRA earnings, adjusted net asset value, EPRA
net reinstatement value, EPRA net tangible assets, EPRA net disposal value,
EPRA loan to value, adjusted profit before tax and funds from operations
(collectively "Non-IFRS Financial Information").
The Directors have chosen to disclose:
• EPRA earnings to assist in comparisons with similar businesses in the
real estate sector. EPRA earnings is a definition of earnings as set out by
the European Public Real Estate Association. EPRA earnings represents earnings
after adjusting for (when applicable) gains/losses on revaluation of
investment properties, gains/losses on disposal of properties (net of related
tax), recoveries from prior disposals of subsidiaries (net of related tax),
refinancing costs, exit fees and prepayment penalties, goodwill impairment,
acquisition costs in relation to business combination, changes in fair value
of derivative financial instruments (collectively the "EPRA earnings
adjustments"), deferred tax in respect of the EPRA earnings adjustments, NCI
relating to revaluation (net of related tax), NCI relating to gains/losses on
disposal of properties (net of related tax), gains/losses on revaluation of
investment property from associates and the related tax thereon. The
reconciliation between basic and diluted earnings and EPRA earnings is
detailed in table A below.
• Adjusted net asset value to assist in comparisons with similar
businesses. Adjusted net asset value represents net asset value after
adjusting for derivative financial instruments at fair value and net deferred
tax asset/liability. The reconciliation for adjusted net asset value is
detailed in table B below.
• EPRA net reinstatement value ("EPRA NRV") to assist in comparisons
with similar businesses in the real estate sector. EPRA NRV is a definition of
net asset value as set out by the European Public Real Estate Association.
EPRA NRV represents net asset value after adjusting for (when applicable)
derivative financial instruments at fair value, deferred tax relating to
valuation movements and derivative financial instruments and real estate
transfer tax presented in the Valuation Certificate (for the entire
consolidated Group including wholly owned entities and investment in
associates). The reconciliation for EPRA NRV is detailed in table C below.
• EPRA net tangible assets ("EPRA NTA") to assist in comparisons with
similar businesses in the real estate sector. EPRA NTA is a definition of net
asset value as set out by the European Public Real Estate Association. EPRA
NTA represents net asset value after adjusting for (when applicable)
derivative financial instruments at fair value, deferred tax relating to
valuation movements (excluding that relating to assets held for sale when
applicable) and derivative financial instruments, goodwill and other
intangible assets (for the entire consolidated Group including wholly owned
entities and investment in associates). The reconciliation for EPRA NTA is
detailed in table C below.
• EPRA net disposal value ("EPRA NDV") to assist in comparisons with
similar businesses in the real estate sector. EPRA NDV is a definition of net
asset value as set out by the European Public Real Estate Association. EPRA
NDV represents net asset value after adjusting for (when applicable) goodwill
and the fair value of fixed interest rate debt (for the entire consolidated
Group including wholly owned entities and investment in associates). The
reconciliation for EPRA NDV is detailed in table C below.
• EPRA loan to value ("EPRA LTV") to assist in comparisons with similar
businesses in the real estate sector. EPRA LTV is a definition of loan to
value ratio as set out by the European Public Real Estate Association. EPRA
LTV represents net debt to total property value as defined in note 19. It
includes all capital which is not equity as debt, irrespective of its IFRS
classification, and is based upon proportional consolidation, therefore
including the Group's share in the net debt and net assets of associates.
Assets are included at fair value, net debt at nominal value. The
reconciliation for EPRA LTV is detailed in table D below.
• Adjusted profit before tax to provide an alternative indication of
the Group's underlying business performance. Accordingly, it adjusts for the
effect of the gains/losses on revaluation of investment properties,
gains/losses on revaluation of leased investment properties, gains/losses on
disposal of properties, gains/losses on revaluation of investment property
from associates and related tax, other adjusting items and change in fair
value of derivative financial instruments. The reconciliation for adjusted
profit before tax is detailed in table E below.
• Funds from operations to assist in comparisons with similar
businesses and to facilitate the Group's dividend policy which is derived from
adjusted profit before tax. Accordingly, funds from operations excludes
depreciation and amortisation (excluding depreciation relating to IFRS 16),
net foreign exchange differences, amortisation of financing fees, adjustment
in respect of IFRS 16 and current tax excluding tax on disposals. The
reconciliation for funds from operations is detailed in table E below.
The Non-IFRS Financial Information is presented in accordance with the JSE
Limited Listings Requirements and The Guide on Pro forma Financial Information
issued by SAICA. The Non-IFRS Financial Information is the responsibility of
the Directors. The Non-IFRS Financial Information has been presented for
illustrative purposes and, due to its nature, may not fairly present the
Group's financial position or result of operations. The Non-IFRS Financial
Information required by the JSE Limited Listings Requirements solely relates
to Headline Earnings Per Share and not EPRA.
The Non-IFRS measures included in the Interim Report 2024 have not been
reviewed nor reported on by the independent auditor. The starting point for
all the Non-IFRS Financial Information has been extracted from the Group's
unaudited condensed interim set of consolidated financial statements for the
six months ended 30 September 2024 (the "consolidated financial statements").
Table A - EPRA earnings
Unaudited Unaudited
six months six months
ended ended
30 September 30 September
2024 2023
€m €m
Basic and diluted earnings attributable to owners of the Company(1) 55.5 31.7
(Deduct gain)/add loss on revaluation of investment properties(2) (2.8) 10.1
Add loss on disposal of properties (net of related tax)(3) 0.2 0.0
Change in fair value of derivative financial instruments(4) - 0.8
Deferred tax in respect of EPRA earnings adjustments(5) 3.9 5.2
NCI relating to revaluation (net of related tax)(6) 0.0 (0.0)
NCI relating to gain on disposal of properties (net of related tax)(7) - (0.0)
(Deduct gain)/add loss on revaluation of investment property from (0.4) 0.5
associates(8)
Tax in relation to the revaluation gains/losses on investment property from 0.1 (0.1)
associates(9)
EPRA earnings(10) 56.5 48.2
Notes:
(1) Presents the profit attributable to owners of the Company which has been
extracted from the unaudited condensed interim consolidated income statement
within the consolidated financial statements.
(2) Presents the gain or loss on revaluation of investment properties which
has been extracted from the unaudited condensed interim consolidated income
statement within the consolidated financial statements.
(3) Presents the gain or loss on disposal of properties (net of related tax)
which has been extracted from note 10 within the consolidated financial
statements.
(4) Presents the change in fair value of derivative financial instruments
which has been extracted from the unaudited condensed interim consolidated
income statement within the consolidated financial statements.
(5) Presents deferred tax in respect of EPRA earning adjustments which has
been extracted from note 9 within the consolidated financial statements.
(6) Presents the non-controlling interest relating to revaluation (net of
related tax) which has been extracted from note 10 within the consolidated
financial statements.
(7) Presents the non-controlling interest relating to gain or loss on disposal
of properties (net of related tax) which has been extracted from note 10
within the consolidated financial statements.
(8) Presents the gain or loss on revaluation of investment property from
associates which has been extracted from note 10 within the consolidated
financial statements.
(9) Presents tax in relation to the revaluation gains/losses on investment
property from associates which has been extracted from note 10 within the
consolidated financial statements.
(10) Presents the EPRA earnings for the period.
Table B - Adjusted net asset value
Unaudited Audited
30 September 31 March
2024 2024
€m €m
Net asset value
Net asset value for the purpose of assets per share (total equity attributable
to the owners of the Company)(1)
1,608.2 1,407.3
Deferred tax liabilities(2) 86.6 82.7
Adjusted net asset value attributable to the owners of the Company((3)) 1,694.8 1,490.0
Notes:
(1) Presents the net asset value for the purpose of assets per share (total
equity attributable to the owners of the Company) which has been extracted
from the unaudited condensed interim consolidated statement of financial
position within the consolidated financial statements.
(2) Presents the net deferred tax liabilities or assets which have been
extracted from the unaudited condensed interim consolidated statement of
financial position within the consolidated financial statements.
(3) Presents the adjusted net asset value attributable to the owners of the
Company as at period end.
Table C - EPRA net asset measures
Unaudited 30 September 2024 EPRA NRV EPRA NTA EPRA NDV
€m €m €m
Net asset value as at period end (basic)(1) 1,608.2 1,608.2 1,608.2
Diluted EPRA net asset value at fair value 1,608.2 1,608.2 1,608.2
Group
Deferred tax in respect of fair value movements on investment properties(2) 86.6 86.6* n/a
Intangibles(3) n/a (3.1) n/a
Fair value of fixed interest rate debt(4) n/a n/a 84.7
Real estate transfer tax(5) 182.1 n/a n/a
Investment in associate
Deferred tax in respect of fair value movements on investment properties(2)
7.2 7.2* n/a
Fair value of fixed interest rate debt(4) n/a n/a 4.3
Real estate transfer tax(5) 9.5 n/a n/a
Total EPRA NRV, NTA and NDV(6) 1,893.6 1,698.9 1,697.2
Audited 31 March 2024 EPRA NRV EPRA NTA EPRA NDV
€m €m €m
Net asset value as at period end (basic)(1) 1,407.3 1,407.3 1,407.3
Diluted EPRA net asset value at fair value 1,407.3 1,407.3 1,407.3
Group
Deferred tax in respect of fair value movements on investment properties(2) 82.7 82.7* n/a
Intangibles(3) n/a (3.3) n/a
Fair value of fixed interest rate debt(4) n/a n/a 114.7
Real estate transfer tax(5) 170.3 n/a n/a
Investment in associate
Deferred tax in respect of fair value movements on investment properties(2) 7.0 7.0 * n/a
Fair value of fixed interest rate debt(4) n/a n/a 6.7
Real estate transfer tax(5) 9.4 n/a n/a
Total EPRA NRV, NTA and NDV(6) 1,676.7 1,493.7 1,528.7
* The Group intends to hold onto the investment properties and has
excluded such deferred taxes for the whole portfolio as at period end except
for, when applicable, deferred tax in relation to assets held for sale.
Notes:
(1) Presents the net asset value for the purpose of assets per share (total
equity attributable to the owners of the Company) which has been extracted
from the unaudited condensed interim consolidated statement of financial
position within the consolidated financial statements.
(2) Presents for the Group the net deferred tax liabilities or assets which
have been extracted from note 9 of the consolidated financial statements and
for EPRA NTA only the additional credit adjustment for the deferred tax
expense relating to assets held for sale of €nil (31 March 2024: €nil).
For investment in associates the deferred tax income/(expense) arising on
revaluation gains/losses amounted to €nil (31 March 2024: €nil).
(3) Presents intangibles which has been extracted from the unaudited condensed
interim consolidated statement of financial position within the consolidated
financial statements.
(4) Presents the fair value of financial liabilities and assets on the
unaudited condensed interim consolidated statement of financial position, net
of any related deferred tax.
(5) Presents the add-back of purchasers' costs to reflect the value prior to
any deduction of purchasers' costs, as shown in the Valuation Certificate of
Cushman & Wakefield LLP.
(6) Presents the EPRA NRV, EPRA NTA and EPRA NDV, respectively, as at period
end.
Table D - EPRA LTV metric
Proportionate consolidation
Unaudited 30 September 2024 Group Investment in associates Total
€m €m €m
Interest-bearing loans and borrowings((1)) 235.2 52.3 287.5
Corporate bonds((2)) 759.9 - 759.9
Net payables((3)) 74.3 5.7 80.0
Cash and cash equivalents((4)) (329.3) (6.6) (335.9)
Net debt (a)((5)) 740.1 51.4 791.5
Investment properties((6)) 2,372.6 127.0 2,499.6
Plant and equipment((7)) 15.2 - 15.2
Intangible assets((8)) 3.1 - 3.1
Loan to associates((9)) 45.1 - 45.1
Total property value (b)((10)) 2,436.0 127.0 2,563.0
EPRA LTV (a/b)((11)) 30.4% 40.5% 30.9%
Proportionate consolidation
Audited 31 March 2024 Group Investment in associates Total
€m €m €m
Interest-bearing loans and borrowings((1)) 245.1 52.2 297.3
Corporate bonds((2)) 700.0 - 700.0
Net payables((3)) 75.3 5.9 81.2
Cash and cash equivalents((4)) (244.2) (7.4) (251.6)
Net debt (a)((5)) 776.2 50.7 826.9
Investment properties((6)) 2,210.6 126.2 2,336.8
Plant and equipment((7)) 7.8 - 7.8
Intangible assets((8)) 3.3 - 3.3
Loan to associates((9)) 45.1 - 45.1
Total property value (b)((10)) 2,266.8 126.2 2,393.0
EPRA LTV (a/b)((11)) 34.2% 40.2% 34.6%
Notes:
(1) Presents the interest-bearing loans and borrowings which have been
extracted from the unaudited condensed interim consolidated statement of
financial position within the consolidated financial statements less the
corporate bonds which have been extracted from note 19 within the consolidated
financial statements.
(2) Presents the corporate bonds which have been extracted from note 19 within
the consolidated financial statements.
(3) Presents the net payables, which is the sum of trade and other
receivables, trade and other payables, current tax liabilities (all of which
have been extracted from the unaudited condensed interim consolidated
statement of financial position within the consolidated financial statements)
and deposits which have been extracted from note 16 within the consolidated
financial statements.
(4) Presents the cash and cash equivalents which have been extracted from the
unaudited condensed interim consolidated statement of financial position
within the consolidated financial statements.
(5) Presents the net debt, which is the sum of interest-bearing loans and
borrowings, corporate bonds, and net payables, less cash and cash equivalents.
(6) Presents the investment properties values which have been extracted from
the unaudited condensed interim consolidated statement of financial position
within the consolidated financial statements.
(7) Presents the plant and equipment which have been extracted from the
unaudited condensed interim consolidated statement of financial position
within the consolidated financial statements.
(8) Presents the intangible assets which have been extracted from the
unaudited condensed interim consolidated statement of financial position
within the consolidated financial statements.
(9) Presents the loan to associates which has been extracted from note 14
within the consolidated financial statements.
(10) Presents the total property value, which is the sum of investment
properties, assets held for sale, plant and equipment, intangible assets and
loan to associates.
(11) Presents the EPRA LTV which is net debt divided by total property value
in percentage.
Table E - Adjusted profit before tax and funds from operations
Unaudited Unaudited
six months six months
ended ended
30 September 30 September
2024 2023
€m €m
Reported profit before tax((1)) 61.2 39.8
Adjustments for:
(Gain)/loss on revaluation of investment properties(2) (2.8) 10.1
Loss on revaluation of leased investment properties(3) (0.6) (0.7)
Loss on disposal of properties(4) 0.2 0.0
(Gain)/loss on revaluation of investment property from associates and related (0.3) 0.4
tax(5)
Other adjusting items(6) 3.4 1.8
Change in fair value of financial derivatives(7) - 0.8
Adjusted profit before tax(8) 61.1 52.2
Adjustments for:
Foreign exchange effects(9) (2.1) -
Depreciation and amortisation (excluding depreciation relating to IFRS 16)(10) 1.7 1.7
Amortisation of financing fees(11) 1.5 1.5
Adjustment in respect of IFRS 16(12) 0.3 0.5
Current taxes incurred(13) (1.8) (2.9)
Funds from operations(14) 60.7 53.0
Notes:
(1) Presents profit before tax which has been extracted from the unaudited
condensed interim consolidated income statement within the consolidated
financial statements.
(2) Presents the gain or loss on revaluation of investment properties which
has been extracted from the unaudited condensed interim consolidated income
statement within the consolidated financial statements.
(3) Presents the gain or loss on revaluation of leased investment properties
which has been extracted from note 12 within the consolidated financial
statements.
(4) Presents the gain or loss on disposal of properties which has been
extracted from the unaudited condensed interim consolidated income statement
within the consolidated financial statements.
(5) Presents the gain or loss on revaluation of investment property from
associates and related tax which has been extracted from note 10 within the
consolidated financial statements.
(6) Presents the total adjusting items which has been extracted from note 10
within the consolidated financial statements.
(7) Presents the change in fair value of derivative financial instruments
which has been extracted from the unaudited condensed interim consolidated
income statement within the consolidated financial statements.
(8) Presents the adjusted profit before tax for the period.
(9) Presents the net foreign exchange gains or losses as included in other
administration costs in note 5 within the consolidated financial statements.
(10) Presents depreciation of plant and equipment and amortisation of
intangible assets which have been extracted from note 5 within the
consolidated financial statements.
(11) Presents amortisation of capitalised finance costs which has been
extracted from note 8 within the consolidated financial statements.
(12) Presents the differential between the expense recorded in the unaudited
condensed interim consolidated income statement for the period relating to
head leases in accordance with IFRS 16 amounting to €2.0m (30 September
2023: €2.2m) and the actual cash expense recorded in the unaudited condensed
interim consolidated statement of cash flow for the period amounting to
€1.7m (30 September 2023: €1.7m).
(13) Presents the total current income tax which has been extracted from note
9 within the consolidated financial statements.
(14) Presents the funds from operations for the period
Glossary of terms
Adjusted earnings after tax is the earnings attributable to the owners of the Company, adjusted for the
effect of the gains/losses on revaluation of investment properties and related
tax (also to associates net of related tax), gains/losses on disposal of
properties and related tax, NCI relating to revaluation (net of related tax),
NCI relating to gains/losses on disposal properties (net of related tax),
changes in fair value of derivative financial instruments (net of related tax
and NCI), gains/losses on revaluation of leased investment properties (net of
related tax) and adjusting items (net of related tax and NCI)
Adjusted net asset value is the total equity attributable to the owners of the Company adjusted for net
deferred tax liabilities/assets
Adjusted profit before tax is the reported profit before tax adjusted for the effect of gains/losses on
revaluation of investment properties, gains/losses on revaluation of lease
investment properties, gains/losses on disposal of properties, gains/losses on
revaluation of investment property from associates and related tax, other
adjusting items and changes in fair value of derivative financial instruments
Annualised acquisition net operating income is the income generated by a property less directly attributable costs at the
date of acquisition expressed in annual terms. Please see "annualised rent
roll" definition below for further explanatory information
Annualised acquisition rent roll is the contracted rental income of a property at the date of acquisition
expressed in annual terms. Please see "annualised rent roll" definition below
for further explanatory information
Annualised rent roll is the contracted rental income of a property at a specific reporting date
expressed in annual terms. Unless stated otherwise the reporting date is 30
September 2024. Annualised rent roll should not be interpreted nor used as a
forecast or estimate. Annualised rent roll differs from rental income
described in note 4 of the Interim Report and reported within revenue in the
unaudited condensed interim consolidated income statement for reasons
including:
• annualised rent roll represents contracted rental income at a specific
point in time expressed in annual terms;
• rental income as reported within revenue represents rental income
recognised in the period under review; and
• rental income as reported within revenue includes accounting
adjustments including those relating to lease incentives
Capital value is the market value of a property divided by the total sqm of a property
Company is Sirius Real Estate Limited, a company incorporated in Guernsey and resident
in the United Kingdom for tax purposes, whose shares are publicly traded on
the equity shares (commercial companies) category of the London Stock Exchange
(primary listing) and the premium segment of the main board of the JSE
Limited (primary listing)
Cumulative total return is the return calculated by combining the movement in investment property
value net of capex with the total net operating income less bank interest over
a specified period of time
EPRA European Public Real Estate Association
EPRA earnings is earnings after adjusting for (when applicable) gains/losses on revaluation
of investment properties, gains/losses on disposal of properties (net of
related tax), recoveries from prior disposals of subsidiaries (net of related
tax), refinancing costs, exit fees and prepayment penalties, goodwill
impairment, acquisition costs in relation to business combinations, changes in
fair value of derivative financial instruments (collectively the "EPRA
earnings adjustments"), deferred tax in respect of the EPRA earnings
adjustments, NCI relating to revaluation (net of related tax), NCI relating to
gains/losses on disposal properties (net of related tax), gains/losses on
revaluation of investment property from associates and the related tax thereon
EPRA loan to value is the ratio of net debt to total property value as defined in note 19. It
includes all capital which is not equity as debt, irrespective of its IFRS
classification, and is based upon proportional consolidation, therefore
including the Group's share in the net debt and net assets of associates.
Assets are included at fair value, net debt at nominal value
EPRA net reinstatement value is the net asset value after adjusting for (when applicable) derivative
financial instruments at fair value, deferred tax relating to valuation
movements and derivative financial instruments and real estate transfer tax
presented in the Valuation Certificate, including the amounts of the above
related to the investment in associates
EPRA net tangible assets is the net asset value after adjusting for (when applicable) derivative
financial instruments at fair value, deferred tax relating to valuation
movements (excluding that relating to assets held for sale when applicable)
and derivative financial instruments, goodwill and other intangible assets,
including the amounts of the above related to the investment in associates
EPRA net disposal value is the net asset value after adjusting for (when applicable) goodwill and the
fair value of fixed interest rate debt, including the amounts of the above
related to the investment in associates
EPRA net initial yield is the annualised rent roll based on the cash rents passing at reporting date,
less non-recoverable property operating expenses, divided by the market value
of the property, increased with (estimated) purchasers' costs
EPRA net yield is the net operating income generated by a property expressed as a percentage
of its value plus purchase costs
ERV is the estimated rental value which is the annualised rental income at 100%
occupancy
Executive Committee is made up of the CEO, CFO, CMIO, COO, CIO and GHRO as set out on page 78 of
the Group's Annual Report and Accounts 2024
Funds from operations ("FFO") is adjusted profit before tax adjusted for depreciation and amortisation
(excluding depreciation relating to IFRS 16), amortisation of financing fees,
net foreign exchange differences, adjustment in respect of IFRS 16 and current
tax excluding tax on disposals
Geared IRR is an estimate of the rate of return taking into consideration debt
Gross loan to value ratio is the ratio of principal value of total debt to the aggregated value of owned
investment property (including assets held for sale when applicable)
Group comprises that of the Company and its subsidiaries
Like for like refers to the manner in which metrics are subject to adjustment to make them
directly comparable. Like-for-like adjustments are made in relation to
annualised rent roll, rate and occupancy and eliminate the effect of asset
acquisitions and disposals that occur in the reporting period
LTIP Long Term Incentive Plan
LTV loan to value
Net loan to value ratio is the ratio of principal value of total debt less cash, excluding that which
is restricted in contractual terms, to the aggregate value of owned investment
property (including assets held for sale when applicable)
Net operating income is the rental, service charge and other income generated from investment and
managed properties 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
Operating cash flow on investment (geared) is an estimate of the rate of return based on operating cash flows and taking
into consideration debt
Operating cash flow on investment (ungeared) is an estimate of the rate of return based on operating cash flows
Operating profit is the net operating income adjusted for gains/losses on revaluation of
investment properties, gains/losses on disposal of properties, movement in
expected credit loss provision, administrative expenses and share of profit of
associates
Rate for the German portfolio is rental income per sqm expressed on a monthly basis
as at a specific reporting date
for the UK portfolio is rental income (includes estimated service charge
element) per sqm expressed on a monthly basis as at a specific reporting date
in EUR
for the UK portfolio is rental income (includes estimated service charge
element) per sq ft expressed on an annual basis as at a specific reporting
date in GBP
Senior Management Team as set out on page 78 of the Group's Annual Report and Accounts 2024
SIP Share Incentive Plan
Sirius comprises that of the Company and its subsidiaries
Total debt is the aggregate amount of the interest-bearing loans and borrowings
Total shareholder accounting return is the return obtained by a shareholder calculated by combining both movements
in adjusted NAV per share and dividends paid
Total return is the return for a set period of time combining valuation movement and income
generated
Ungeared IRR is an estimate of the rate of return
Weighted average cost of debt is the weighted effective rate of interest of loan facilities expressed as a
percentage
Weighted average debt expiry is the weighted average time to repayment of loan facilities expressed in
years
Corporate directory
SIRIUS REAL ESTATE LIMITED
(Incorporated in Guernsey)
Company Number: 46442
JSE Share Code: SRE
LSE (GBP) Share Code: SRE
LEI: 213800NURUF5W8QSK566
ISIN Code: GG00B1W3VF54
Registered office
Plaza House
Fifth Floor
Admiral Park
St Peter Port
Guernsey GY1 2HU
Channel Islands
Registered number
Incorporated in Guernsey under The Companies (Guernsey) Law, 2008, under
number 46442
Company Secretary
A Gallagher
Sirius Real Estate Limited
Plaza House
Fifth Floor
Admiral Park
St Peter Port
Guernsey GY1 2HU
Channel Islands
UK solicitors
Penningtons Manches Cooper LLP
125 Wood Street
London EC2V 7AW
United Kingdom
Financial PR
FTI Consulting LLP
200 Aldersgate Street
London EC1A 4HD
United Kingdom
JSE sponsor
PSG Capital Proprietary Limited
1st Floor, Ou Kollege Building
35 Kerk Street
Stellenbosch 7600
South Africa
Joint broker
Peel Hunt LLP
100 Liverpool Street
London EC2M 2AT
United Kingdom
Joint broker
Berenberg
60 Threadneedle Street
London EC2R 8HP
United Kingdom
Property valuer
Cushman & Wakefield LLP
Rathenauplatz 1
60313 Frankfurt am Main
Germany
Independent auditor
Ernst & Young LLP
1 More London Place,
London SE1 2AF
United Kingdom
Guernsey solicitors
Carey Olsen (Guernsey) LLP
PO Box 98
Carey House
Les Banques
St Peter Port
Guernsey GY1 4BZ
Channel Islands
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