REG - Sirius Real Estate - Results for the year ended 31 March 2025
Mon 07:00
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RNS Number : 8975K Sirius Real Estate Limited 02 June 2025
SIRIUS REAL ESTATE LIMITED
(Incorporated in Guernsey)
Company Number: 46442
JSE Share Code: SRE
LSE (GBP) Share Code: SRE
LEI: 213800NURUF5W8QSK566
ISIN Code: GG00B1W3VF54
2 June 2025
Sirius Real Estate Limited
("Sirius Real Estate", "Sirius", the "Group" or the "Company")
Results for the year ended 31 March 2025
Continued FFO growth with strong operational performance driving twelfth year
of increased dividends
Sirius Real Estate, the leading owner and operator of branded business and
industrial parks providing conventional space and flexible workspace in
Germany and the UK, announces its consolidated financial results for the year
to 31 March 2025.
Operating platform continues to drive rental and FFO growth
· 75% increase in profit before tax to €201.6m (2024: €115.2m)
primarily due to an €81.0m asset management led valuation gain (2024:
€12.4m)
· 6.3%* like-for like rent roll growth to €205.6m* (2024:
€193.5m*) driven by continued strong organic growth and occupier demand in
Germany and the UK
· 11.8% increase in Funds from Operations ("FFO") to €123.2m
(2024: €110.2m) with FFO per share of 8.44c (2024: 8.95c) reflecting the
dilutionary effect of the November 2023 and July 2024 equity raises which are
not yet fully invested
· Operating profit increased by 65.2% to €215.9m (2024:
€130.7m)
· 4.7% decrease in EPRA earnings per share to 7.82c (2024: 8.21c)
· Basic earnings per share increased by 39.4% to 12.20c (2024:
8.75c), while headline earnings per share decreased by 0.7% to 8.06c (2024:
8.12c)**
Sustainable FFO growth supports 23(rd) progressive dividend payout
· Progressive H2 dividend of 3.09c per share (2024: 3.05c per
share), amounting to a 1.7% uplift in the total dividend for the financial
year to 6.15c (2024: 6.05c)
Income driven valuation gains
· Value of Investment property portfolio up 12.6% to €2,488.1m
(2024: €2,210.6m) including an €81.0m asset management led uplift
· Portfolio gross and net yields of 7.4% and 6.7% in Germany (2024:
7.5% and 6.8%) and 14.1% and 9.5% in the UK (2024: 14.1% and 9.9%)
respectively, on a like-for-like basis
· Group EPRA net initial yield of 6.9% (2024: 6.8%) with Germany
and the UK broadly stable at 6.3% and 8.9% (2024: 6.3% and 8.8%) respectively
· 7.1% increase in EPRA NTA per share to 117.61c (2024: 109.82c)
demonstrating the resilience of the portfolio
· 7.0% increase in Adjusted NAV per share to 118.89c (2024:
111.12c)
Significant market opportunity captured with €270.0m of acquisitions and
€46.3m of disposals, at a premium to book value***
· £141.5m (€168.7m) invested in six UK acquisitions (notarised
or completed) adding £12.8m (€14.3m) of annualised NOI at an average gross
yield of 10.7% and 93.2% occupancy
· €101.3m invested in Germany in six acquisitions (notarised or
completed) at a 9.9% average gross yield, with 77.2% occupancy presenting an
opportunity for future rental growth
· Disposals of four assets in the UK with limited further growth
opportunities and annualised NOI of £1.2m (€1.4m) completed for £13.7m
(€16.3m), all at premium to book value
· Post balance sheet disposal of a mature asset in Pfungstadt,
Germany with an annualised NOI of €2.2m, notarised for €30.0m at premium
to book value
Strong balance sheet with capacity for acquisitions
· Equity raise of €180.9m (€174.5m net of costs) completed in
July 2024
· Successful issuance in January 2025 of €350.0m 4% bonds due in
2032 and €59.9m tap of the bond due in November 2028
· €571.3m cash position at 31 March 2025 (2024: €214.5m)
provides capacity for acquisitions, investment and refinancing of the €400m
bond due in June 2026
· 31.4% net LTV (March 2024: 33.9%) and Net Debt to EBITDA of 5.2x,
comfortably inside our 40% and 8x target caps respectively
· 2.6% (March 2024: 2.1%) weighted average cost of debt and
weighted average debt expiry of 4.2 years (March 2024: 4.0 years) ensures
stability, efficiency and long-term flexibility
· €12.7m facility with Saarbrücken Sparkasse refinanced to 2030
at 3.264%
Outlook
· The Company is trading in line with management expectations in
the new financial year
· Sirius continues to target further growth options in both Germany
and the UK on an opportunistic basis, including recycling of mature assets and
reinvesting in value-add opportunities
· Organic growth opportunities remain strong in both markets
Commenting on the results, Andrew Coombs, Chief Executive Officer of Sirius
Real Estate, said:
"This has been another strong year of performance for Sirius during which we
have delivered for shareholders our 23(rd) consecutive increase in dividend
over a twelve-year period that has included a number of significantly
challenging macro events. The progress made in the year under review serves
as a good example of how we have achieved this track record, having
successfully raised capital both in the debt and equity markets allowing us
then to take advantage of market timing to make some €270 million of
accretive acquisitions. These have both added day one operating income and
materially increased the pipeline of organic value creation opportunities
within our portfolio. Our asset management teams across the Sirius German and
UK platforms have continued to drive strong operational results, notably with
a 6.3% growth in like-for-like rent roll which in turn supported valuation
growth and helped us deliver further profitability.
"Looking ahead we will continue to focus on extracting the latent value within
our existing portfolio, although our overriding priority for the year ahead is
ensuring we fully capitalise on the remaining window of opportunity to make
acquisitions before the next cycle begins in earnest, given we may well either
be at or near, and in some areas past, the bottom of the current cycle. We
are also working hard to ensure we are as well placed as possible to benefit
from the recently announced increases in defence spending to 2.5% of GDP in
the UK and, most notably, in Germany where the government has outlined an
expected €400bn on defence spending out of a total €900bn security and
infrastructure investment package. We believe that even if only a small part
of this flows into our asset classes, defence has the potential to become a
major growth sector and driver of demand for warehouse and manufacturing
space, where the rent is ultimately government derived. We are actively
positioning our offering to attract some of this expected business."
Notes:
*Group rent roll and rental income KPI's have been translated using a
consistent foreign currency exchange rate of GBP:EUR 1.1971, being the closing
exchange rate as at 31 March 2025.
** Variance between basic and headline earnings per share is attributable to
the gain on revaluation of investment properties being included in the
calculation of basic earnings per share and excluded from headline earnings
per share.
*** Including notarised transactions after 31 March 2025.
WEBCAST
There will be an in-person presentation for analysts/investors at 09:00 BST
(10:00 CET/ SAST) today, hosted by Andrew Coombs, Chief Executive Officer, and
Chris Bowman, Chief Financial Officer, at Berenberg's offices located at 60
Threadneedle St, London, EC2R 8HP
There will also be a live webcast available, which can be accessed via the
following link:
https://stream.brrmedia.co.uk/broadcast/681e18c4c4d6000013238321/6836b3a61193330013c6535e
(https://stream.brrmedia.co.uk/broadcast/681e18c4c4d6000013238321/6836b3a61193330013c6535e)
Webcast link:
For further information:
Sirius Real Estate
Andrew Coombs, CEO / Chris Bowman, CFO
+49 (0) 30 285 010 110
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 equity shares (commercial
companies) category of the London Stock Exchange and the premium segment of
the main board of the JSE Limited. It is a leading owner and operator of
branded business and industrial parks providing conventional space and
flexible workspace in Germany and the UK. As of 31 March 2025, the Group's
portfolio comprised 145 assets let to 10,477 tenants with a total book value
of over €2.5 billion, generating a total annualised rent roll of €221.4
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 at @SiriusRE
JSE Sponsor: PSG Capital
Chair's statement
Building a sustainable future amidst market uncertainties
As I write this report in my seventh year as Chair of Sirius, I am pleased to
share with you another strong set of results as well as an update on our
continued progress and strategic vision for the Company. As in the past, this
year has brought various challenges and opportunities which the Company has
been able to manage well, and we remain committed to delivering long-term
value to our stakeholders.
Sirius would like to extend thanks to its equity and bond holders for their
continued support, highlighted by our €174.6m capital raise in July 2024,
the €59.9m bond tap in May 2024 and most recently the €350.0m bond raise
in January 2025. These capital raises allow the Company to take advantage of a
favourable window of time in the market cycle and continue to execute its
pipeline of compelling opportunities both in Germany and in the UK. In the
past year, the Company has deployed €270m in capital into either acquired or
notarised assets to contribute to our ambitious growth plans of reaching
€150m FFO in the mid-term. The Company maintains sufficient fire power in
the short term to invest in accretive assets, with a robust pipeline of
investments ready to capture both income and opportunity, to allow the Company
to continue to grow sustainably and provide value to its shareholders.
With a clear strategy for growth and continued strong performance, the Board
has authorised its 23rd consecutive dividend increase for shareholders, over a
12 year period, paying 3.09c per share for the second half of the year. This
brings the total dividend distribution to 6.15c per share for the year ended
31 March 2025, which compares to 6.05c in the comparative previous period.
Our sustainability agenda
We are proud of the progress we continue to make in our work to build a
sustainable future. Challenges remain in our sector and, underlining the
importance we place on this subject, our Chief Executive Officer, Andrew
Coombs, continues to be responsible for chairing the Sirius Real Estate
Sustainability and Ethics Committee. We have taken strides in the current year
towards ensuring we remain environmentally responsible, being mindful of our
tenant satisfaction and continuing to grow the business in a sensible and
measured manner. We are pleased to provide more detail in our annual ESG
Report which can be found on our website.
Looking ahead
As we look forward, we aim to continue to prioritise our operational
excellence and sustainable growth, whilst being mindful of our evolving market
landscape in both Germany and the UK. Geopolitical and market uncertainty
remain as the conflict in Ukraine lingers on and key elections in Germany, the
UK and the USA have so far not quelled market uncertainty. However, there
remains plenty of opportunity as governments in Europe adapt to the changing
landscape and are committed to releasing the power of their balance sheets,
most notably that in Germany. We remain vigilant in assessing these risks, and
the impact they will have on our business, and while taking confidence from
our strong track record of adapting and thriving in the face of other
significant external challenges in recent years.
Overall, we are confident that the strength of our operating platform, balance
sheet, our experienced management team and our long-term strategic view will
enable our business to continue its growth journey in the years ahead. Sirius
is well run and adaptive and continues to be a highly investible proposition.
Thank you
On behalf of the Board, I would like to express my gratitude to everyone
across Sirius for their contributions to our successes in this financial year.
I look forward to the coming financial year with confidence in our team, our
business model and our ambition as we build on our strong foundations.
Daniel Kitchen
Chair
30 May 2025
Asset management review - Group
A platform for driving growth
Introduction
The Company continued its acquisition programme, notarising or completing on
€270.0m of assets in the period, on the back of its €59.9m November 2028
bond tap in May 2024 and oversubscribed equity financing of €174.6m (net
proceeds) in July 2024. The majority of acquisitions in the year were focused
in the UK where the Company was able to purchase both opportunity and stable
day one income at attractive yields. In addition to filling its acquisition
pipeline, the Company has been successful in recycling some of its mature or
non-core assets at or above book value in the period.
In addition to acquiring rent roll, the Company achieved strong like-for-like
rent roll growth across both jurisdictions, with a focus on capturing rate
whilst managing occupancy carefully to permit continued future growth. The
Company returned to double digit total shareholder returns, underpinned by
stabilising yields across both Germany and the UK resulting in overall NAV
growth. Through its extensive asset management activities, opportunistic
acquisitions and continued success in its asset recycling, the Company
maintains a solid foundation to provide excellent risk-adjusted returns for
its stakeholders.
Platform delivers rent roll growth across both markets
Over the past twelve months the Company was able to deliver strong rental rate
increases that were well in excess of inflation, despite expected regular
move-outs at the beginning of the period which slowed growth in occupancy
across both jurisdictions. Like-for-like rent roll at Group level increased by
6.3%* (31 March 2024: 7.2%*) with Germany and the UK providing similar levels
of support in growth. This represents the eleventh consecutive year of
like-for-like rent roll growth in excess of 5%. These increases were supported
by the Group growing its like-for-like occupancy by 0.9% to 86.5% (31 March
2024: 85.6%).
Cash collection across the Group remained robust at 98.3% (31 March 2024:
98.2%), with cash on hand at the end of the year of €571.3m (31 March 2024:
€214.5m). The Company financed €409.9m in corporate debt whilst repaying
€15.0m (excluding loan amortisation payments) in the year, resulting in a
total debt balance of €1,345.6m and a net LTV of 31.4%, leaving the Company
well within its 40% net LTV target. With a weighted average debt expiry of 4.2
years and a weighted average cost of debt of 2.6%, the Company remains poised
to capture further opportunity from its cash on hand but also from the vacancy
within its existing portfolio.
* The Company has reported the above figures using a consistent
foreign currency exchange rate of GBP:EUR 1.1971, being the closing exchange
rate as at 31 March 2025.
Key metrics:
Metric 31 March 2025 31 March 2024 Variance Variance %
Total rent roll* (€m) 221.4 196.2 25.2 12.8
Like-for-like rent roll* (€m) 205.6 193.5 12.1 6.3
Average rate (€) per sqm* 8.94 8.88 0.06 0.7
Average rate (€) per sqm like for like* 9.23 8.84 0.39 4.4
Total occupancy (%) 85.9 85.5 0.4 0.5
Like-for-like occupancy (%) 86.5 85.6 0.9 1.1
Cash collection (%) 98.3 98.2 0.1 0.1
* The Company has reported the above figures using a consistent
foreign currency exchange rate of GBP:EUR 1.1971, being the closing exchange
rate as at 31 March 2025.
Asset management review - Germany
Germany
Lettings and rental growth
The German portfolio recorded a like-for-like increase in its rent roll of
6.1% to €137.6m (31 March 2024: €129.7m) whilst the total rent roll
increased in the year by 8.1% to €140.2m (31 March 2024: €129.7m). Of this
growth, €7.9m related to organic growth and €2.6m represented the impact
from acquisitions.
The €10.5m organic growth was made up of €4.5m from uplifts from existing
tenants, either through contractual lease indexation or increases upon
renewal, as well as €3.4m from the net of move-ins over move-outs. The
latter can be further broken down into move-outs of 180,738 sqm that were
generating €17.3m of rent roll at an average rate of €8.00 per sqm being
offset by move-ins of 206,477 sqm generating €20.7m of rent roll at an
average rate of €8.36 per sqm. The combination of the above has resulted in
like-for-like rate per sqm increasing by 4.3% to €7.50 (31 March 2024:
€7.24), demonstrating the ability of the Company's operating platform to
manage the product mix and occupancy carefully alongside rates, to optimise
the returns from our lettable space.
With the Company's continued investment in its currently sub-optimal vacant
space through its capex investment programme and its ability to then let this
space, like-for-like occupancy in Germany has increased by 0.6% to 85.8% (31
March 2024: 85.2%).
The movement in rent roll is illustrated in the table below:
€m
Rent roll as at 31 March 2024 129.7
Move-outs (17.3)
Move-ins 20.7
Contracted uplifts 4.5
Disposals -
Acquisitions 2.6
Rent roll as at 31 March 2025 140.2
The ability to grow organically and generate net positive move-ins at higher
rates is supported by the Company's in-house marketing platform, which permits
the Company to strategically target the markets in which it operates and react
rapidly to changing market dynamics. The 15,216 enquiries generated during the
year were comparable to the 15,880 achieved in the twelve month to 31 March
2024. 14% conversion rate (31 March 2024: 14%) to 188,452 sqm in sales (31
March 2024: 164,629 sqm), reflects a consistent year-on-year performance
across the German portfolio.
Whilst sales to new tenants are critical, tenant retention is also a key
contributing factor to the Company's success. The Company noted several large
and expected move-outs in the normal course of business which resulted in the
sqm retention rate decreasing to 62% (31 March 2024: 79%). These known
move-outs have however been replaced in short order meaning occupancy remained
stable, demonstrating the strength of the Company's sales platform as well as
the appeal and the quality of the product it offers.
Key metrics:
Metric 31 March 2025 31 March 2024 Variance Variance %
Total rent roll (€m) 140.2 129.7 10.50 8.1%
Like-for-like rent roll (€m) 137.6 129.7 7.90 6.1%
Average rate (€) per sqm 7.50 7.24 0.26 3.6%
Average rate (€) per sqm like for like 7.55 7.24 0.31 4.3%
Total occupancy (%) 85.4% 85.2% 0.2% 0.2%
Like-for-like occupancy (%) 85.8% 85.2% 0.6% 0.7%
Cash collection (%) 98.2% 98.0% 0.2% 0.2%
Cash collection
The Company increased its billings (net of VAT) by 3.6% during the year to
€203.4m (31 March 2024: €196.3m) whilst at the same time reducing the
overall uncollected debt relating to these billings to €3.7m (31 March 2024:
€3.9m), equating to a healthy 12 months rolling cash collection rate of
98.2% (31 March 2024: 98.0%) demonstrating the strength of the operating
platforms cash collection initiatives with its tenants. During the period, the
Company wrote off €0.5m (31 March 2024: €0.2m). The Company expects to
collect most of the outstanding debt for the period over the next twelve
months through its regular debt collection activities.
Capex investment programmes
Value-add capex
The capex investment programmes on the Group's German assets have historically
been focused on the transformation of poor-quality vacant space as well as
upgrading of space returned each year as a result of move-outs, both of which
include enhancing the energy efficiency of the properties concerned. Other
than significantly improving income and valuation for the Company, these
programmes have also been integral in reducing service charge irrecoverables
as well as allowing the Company to roll out expanded product offerings such as
Smartspace or self-storage.
In the last three years the Company has transformed 253,492 sqm of space for
an investment of €30.7m. As at 31 March 2025 this space was generating
€10.8m in rent roll at 69% occupancy. Rent roll contribution is expected to
continue to grow as the remaining vacancy is filled up in due course. This
transformed space has also been a major contributor towards the large
valuation increases seen on the portfolio.
The details of the value-add capex investment programme completed in the last
3 years is detailed below:
Value-add capex Budget Actual
Sqm developed 253,492 253,492
Investment €m 34.8 30.7
Investment psm € 137 121
Rent improvement €m 13.2 10.8
Occupancy 93% 69%
Rate psm € 4.65 5.11
ROI % 38% 35%
Renewals capex
Furthermore, the Company has successfully renewed major tenants' leases by
investing in their spaces in order to retain them on site long term as well as
achieve an incremental income improvement post renewal. In the last 3 years
171,164 sqm were renewed as a result of this capex investment programme which
has resulted in an incremental increase in rent roll of €2.1m. Renewing
these leases has also improved the valuation of the assets and helped to
reduce the irrecoverable service charge position. The details of this
programme are included in the table below:
Major renewals capex
Sqm renewed 171,164
Investment €m 3.85
Incremental rent improvement €m 2.12
ROI % 55%
New builds and major investments
In addition to the value-add and renewals capex investment programmes focussed
on the existing spaces within the portfolio the Company has identified the
potential to creating new builds on excess land, as well as transforming
vacant buildings into higher quality as newly built structures.
During the period under review, the development of two new buildings at the
Berlin Gartenfeld property completed following an investment of €5.3m. These
have already been fully let and as at 31 March 2025 were generating €0.5m in
rent roll, which has contributed significantly to the €8.4m of valuation
uplift experienced at the whole site within the period. The next new built in
the same property is currently progressing towards completion and is estimated
to add an additional €0.1m of rent roll and further increasing the value of
the property by €0.3m following a €0.4m in development cost. Finally, the
Company has identified a pipeline of 16,867 sqm of newly built spaces
currently in the planning phase. The combined development cost of these
projects is estimated at €24.8m and is expected to increase the rent roll by
€2.4m as well as a €10.7m increase in valuation after development cost.
The details of the new builds and major investments capex programme have been
detailed in the table below:
New builds and major investments Completed In progress Pipeline
Sqm 3,071 891 16,867
Investment €m 5.3 1.7 24.8
Rent improvement €m 0.5 0.1 2.4
Rate psm budgeted € 10.50 11.75 11.89
Rate psm € 13.66 12.55
Occupancy 100% 100%
Yield on cost 9% 8% 10%
Value uplift* €m 2.6 0.4 10.7
IRR % 23% 14% 21%
Vacancy analysis
In addition to the capex investment programmes completed in the last three
years, the Company has identified further opportunities to increase the
value-add capex investment programme by addressing vacancy on acquired sites
as well as upgrading spaces returned each year as a result of move-outs.
Within the existing vacancy at year end, the Company has identified
approximately 70,965 sqm of such space which will require an investment of
approximately €14.9m and has an estimated rental value of €5.9m when fully
let.
Additionally, the Company plans to redevelop 2,391 sqm of structurally void
space that is unlettable in its current form through a comprehensive new build
transformation, as part of the new builds and major investments capex
programme. Upgrading these spaces allows the Company to enhance the
reversionary potential of the portfolio whilst significantly improving the
quality, desirability and hence value of not only the transformed space but of
the entire site.
The analysis below details the sub-optimal space and vacancy as at 31 March
2025 and highlights the opportunity from developing this space.
Vacancy analysis - March 2025
Total space (sqm) 1,824,307
Occupied space (sqm) 1,558,652
Vacant space (sqm) 265,655
Occupancy 85%
% of Sqm Capex ERV *
total space investment (post investment)
€m
Structural vacancy 3% 51,871 - -
Value-add capex 4% 70,965 (14.9) 5.9
Major investment new build 0% 2,391 (5.2) 0.4
Total space subject to investment 4% 73,356 (20.1) 6.3
Lettable vacancy:
Smartspace vacancy 2% 32,773 - 3.9
Other vacancy 6% 107,655 - 6.2
Total lettable space 8% 140,429 - 10.2
Total vacancy 15% 265,655 (20.1) 16.5
* See the Glossary section of the Annual Report and Accounts 2025.
The German portfolio's headline 85% occupancy rate means that in total 265,655
sqm of space is vacant as at 31 March 2025. When excluding the vacancy which
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 now or in the future is
approximately 92%.
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, uplifts on renewals and
the re-letting of space at higher rates are also expected to contribute to the
Company's rent roll growth going forward.
Whilst the Company will continue to look to asset recycling to replenish the
vacancy which is let up after transformation, the Company maintains a
risk-adjusted strategy and expects to continue to hold a significant amount of
core mature assets in order to maintain a balanced portfolio that provides a
combination of stable, long-term financeable income with value-add assets
offering growth potential.
Well-diversified income and tenant base
The resilience that a well-diversified tenant base provides has been paramount
to the Company's success during the recent experienced market disruptions,
such as the Covid-19 pandemic, the inflationary environment, the energy crisis
in Europe, or ongoing geopolitical conflict. Sirius' portfolio includes
production, storage and out of town office space that caters to multiple uses
and a range of sizes and types of tenants. The Company's business model is
underpinned by its tenant mix which provides stability through its large,
long-term anchor tenants and opportunity through the SME and flexible
individual tenants.
The table below illustrates the diverse nature of tenant mix within the Sirius
portfolio at the end of the reporting period:
No. of Occupied % of Total % of total Rate
tenants as at sqm occupied sqm rent roll * rent roll * per sqm
31 March 2025 €m % €
Top 50 anchor tenants(1) 50 659,409 42% 51.3 37% 6.48
Smartspace SME tenants(2) 3,372 80,409 5% 9.9 7% 10.29
Other SME tenants(3) 3,077 818,834 53% 79.0 56% 8.04
Total 6,499 1,558,652 100% 140.2 100% 7.50
(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 individual tenants.
* See the Glossary section of the Annual Report and Accounts 2025.
Smartspace and First Choice
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. 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. The Company was able to increase its Smartspace offering by 5.8%
(6,153 sqm) to 111,831 sqm (31 March 2024; 105,677 sqm). Total Smartspace
occupancy increased to 72% (31 March 2024: 70%), which led to a 13.7% increase
in corresponding rent roll. Smartspace contributes €9.9m (31 March 2024:
€8.7m) or 7.1% (31 March 2024: 6.7%) to German rent roll. The improvement in
rent roll can be contributed to a combination of occupancy and rate growth
with occupied sqm increasing to 80,408 (31 March 2024: 74,076) and average
rate per sqm increasing by 5.2% to €10.29 per sqm (31 March 2024: €9.78
per sqm), with the storage product providing the most significant increase in
rate.
The table below illustrates the contribution of each of the Smartspace
products:
Smartspace product type Total Occupied Occupancy Total % of total Rate *
sqm sqm % rent roll * rent roll * per sqm
(excl. service % (excl. service
charge) charge)
€m €
First Choice office* 7,147 5,356 75% 1.3 13% 20.51
SMSP office 41,824 28,750 69% 3.6 36% 10.31
SMSP workbox 5,970 5,816 97% 0.5 5% 7.35
SMSP storage 56,483 40,393 72% 4.1 42% 8.53
SMSP container - - - 0.3 3% n/a
SMSP subtotal 111,424 80,315 72% 9.8 99% 10.28
SMSP FlexiLager 407 93 23% 0.1 1% 15.70
SMSP total 111,831 80,408 72% 9.9 100% 10.29
* See the Glossary section of the Annual Report and Accounts 2025.
Asset management review - UK
Key Metrics
Metric 31 March 2025 31 March 2024 Variance Variance %
Total rent roll (£m) 67.9 55.6 12.3 22.1
Like-for-like rent roll (£m) 56.8 53.3 3.5 6.6
Average rate (£) per sq ft 12.47 14.86 (2.39) (16.1)
Average rate (£) per sq ft like for like 15.63 14.99 0.64 4.3
Total occupancy (%) 87.3 86.6 0.70 0.8
Like-for-like occupancy (%) 89.4 87.1 2.30 2.6
Cash collection (%) 98.7 98.8 (0.1) (0.1)
Lettings and rental growth
In the UK, total rent roll increased year-on-year by 22.1% to £67.9m
(€81.2*m) (31 March 2024: £55.6m (€66.5*m)) predominantly driven by the
continuation of the asset acquisition programme. Five properties were acquired
during the year contributing £11.1m (€13.2*m) of the total £12.3m
(€14.7*m) total rent roll increase during the year. Average rental rates
decreased by 16.1% to £12.47 per sq ft (€13.39* per sqm) from £14.86 per
sq ft (€15.95* per sqm) due to the acquisition of Vantage Point in
Gloucester, which given its scale and low average rental rate per square foot,
contributes to a reduction at portfolio level but offers a opportunity to
create value going forwards.
Like-for-like rent roll increased by 6.6% year-on-year to £56.8m (€68.0*m)
(31 March 2024: £53.3m (€63.8*m)), driven by the combined effect of shift
towards an occupancy led strategy and moderate pricing uplifts.
This growth was achieved by leveraging the Company's operational platform to
deliver this growth, balancing a strategic occupancy push, which included
efforts to improve customer retention and attract new customers with pricing
initiatives across the existing tenant base. As a result, like-for-like
occupancy increased to 89.4% (31 March 2024: 87.1%) for the period.
Furthermore, the Company achieved a 4.3% increase on its average like-for-like
rental rate for the period to £15.63 per sq ft (€16.79* per sqm) from
£14.99 per sq ft (€16.09* per sqm). This positive rate growth reflects a
moderated over the year primarily due to the business shifting its focus
towards building occupancy as a result of the broader downward inflationary
pressures across the UK economy.
* The Company has reported the above figures using a consistent
foreign currency exchange rate of GBP:EUR 1.1971, being the closing exchange
rate as at 31 March 2025.
The movement in rent roll is illustrated in the table below:
£m
Rent rent roll 31 March 2024 55.6
Move-outs (17.2)
Move-ins 17.5
Contracted uplifts 3.2
Disposals (2.3)
Acquisitions 11.1
Rent roll 31 March 2025 67.9
Despite a challenging market, driven by economic and political uncertainties,
the UK operating platform continues to benefit from cross-sharing insights and
methodologies with the Sirius platform in Germany and generated an increased
number of enquiries, with 18,200 received during the period (31 March 2024:
17,108). From this, 1,338 deals (31 March 2024: 1,165) across a total 685,404
sq ft (63,676 sqm) (31 March 2024: 586,773 sq ft (54,513 sqm)) were signed
resulting in an average lease per sq ft of 512 sq ft (48 sqm) (31 March 2024:
504 sq ft (40 sqm)). This translates into an improved sales conversion rate of
7.4% (6.8%), which has made a positive impact on rental growth and contributed
to the Company's occupancy growth in the year.
Cash collection
BizSpace's 12 month rolling cash collection rate remained strong at 98.7% (31
March 2024: 98.8%) despite a 26.4% year-on-year increase in total billings,
reflecting both the impact of the Company's ongoing acquisition programme and
the strength of the its cash collection management.
Of the £67.1m (excluding VAT) (€79.9m) which was billed in the period,
£66.1m (€78.8m) or 98.7% was collected. The remaining £1.0m (€1.2m) is
expected to be collected as part of its regular collection activities over the
coming months. The increase in uncollected debt, when compared to the prior
period of £0.8m is predominantly due to large lease customers at newly
acquired sites. The Company recorded insignificant write offs in both the
current and prior periods.
Site investment
BizSpace maintains an ongoing investment programme to maintain and upgrade its
spaces and allows it to adapt to changes in tenant demand. In the period under
review, the Company invested a total of £10.9m (€13.0m) (31 March 2024:
£9.6m (€11.1m)) into its sites, focusing on a rolling EPC upgrade programme
and improving the condition of the spaces it offers to drive occupancy and
price. The Company expects to identify further opportunities to invest into
its assets in the new financial year whilst continuing to progress its
ESG-related investment in order to align itself with the wider Group.
Well-diversified income and tenant base
The UK portfolio includes light industrial, studio, out of town office space
and storage that caters to multiple usages and a range of sizes and types of
tenants. As a result, the Company's business model is underpinned by a
well-diversified tenant base.
The Company's top 100 tenants, which are typically large corporates, account
for 28.7% of the rent roll with the next 900 tenants accounting for 39.8% of
rent roll. The remaining 31.5% of rent roll relates to nearly 3,000 SME and
micro-SME tenants which occupy 22.5% of the overall estate.
The table below illustrates the diverse nature of tenant mix within the
portfolio at the end of the reporting period:
No. of Occupied % of Total % of total Rate
tenants as at sq ft m occupied sq ft rent roll rent roll per sq ft
31 March 2025 £m £
Top 100 tenants 100 2.3 42.9% 19.5 28.7% 8.34
Next 900 900 1.9 34.6% 27.0 39.8% 14.37
Remaining SME 2,978 1.2 22.5% 21.4 31.5% 17.44
Total 3,978 5.4 100.0% 67.9 100.0% 12.47
SMEs in the UK are typically defined as companies with revenues of up to
£50.0m and up to 250 employees. The Company's internal operating platform and
product offering have a strong track record of attracting and retaining
tenants in this segment of the market which is expected to continue to grow as
a result of structural trends impacting the UK market.
Financial review
Continued sustainable FFO growth
From both asset management and a disciplined, accretive acquisition programme.
"The successful organic growth achieved by Sirius this year is pleasing and
reflects our ability to drive value from the portfolio. This positive
performance sits alongside the ongoing acquisitive growth which has been made
possible from the continued support not only from its shareholders, as
demonstrated in the recent €174.6m equity raise but also from bondholders
who supported a €350.0m new issue of the Company's bonds, as well as a
€59.9m tap of one of our existing bonds."
Chris Bowman
Chief Financial Officer
Trading performance and earnings
Sirius recorded FFO of €123.2m, up 11.7% from €110.2m last year on the
back of 9.9% increase of total revenue growth to €317.5m (31 March 2024:
€288.8m) and an increase in profit before tax to €201.6m (31 March 2024:
€115.2m). The Group saw substantial organic growth with a 6.3%* increase in
like-for-like rent roll, driven by a 4.4%* rise in rates and a 1.1%
improvement in occupancy as well as a successful programme of bringing
additional space into a lettable state. The Company achieved rate increases
well above inflation, in spite of a backdrop of falling inflation in both
Germany and the UK. Including acquisitions, total rent roll grew by 12.8%.
The Company resumed its growth through acquisitions in the previous financial
year, finding ongoing opportunities in the market. In addition to realising
portfolio growth on the back of acquisitions, organic growth led to valuation
gains of owned investment property across the portfolio of €81.0m (31 March
2024: €12.4m) after capital expenditure.
* The Company has reported the above figures using a consistent
foreign currency exchange rate of GBP:EUR 1.1971, being the closing exchange
rate as at 31 March 2025.
On a per share basis, FFO per share decreased by 5.4%, which takes into
account the impact of the equity raises in July 2024 pending acquisitions.
With a focus on operational performance, excluding the impact of valuations,
adjusted EPS and diluted EPRA EPS decreased by 1.9% reflecting the timing of
raising capital and the earnings achieved from the deployment of this capital.
The positive impact of acquisitions in the period and post balance sheet are
expected to support EPRA EPS growth in the next financial year.
Earnings No. of shares 31 March 2025 Earnings No. of shares 31 March 2024 Change
€m cents per share €m cents per share %
FFO per share 123.2 1,460,013,616 8.44 110.2 1,231,991,541 8.95 (5.4)
Diluted EPRA EPS* 117.7 1,482,145,687 7.94 101.1 1,249,500,420 8.10 (1.9)
* See note 11 and the Business analysis section of the Annual Report
and Accounts 2025.
Portfolio valuation - Group
The portfolio of owned assets was independently valued at €2,469.4m by
Cushman & Wakefield LLP at 31 March 2025 (31 March 2024: €2,190.6m),
which converts to a book value of €2,488.1m (31 March 2024: €2,210.6m)
after the adjustments in relation to lease incentives and inclusion of leased
investment property. A breakdown of the movement in owned investment property
is detailed in the table below:
German UK Total investment
investment investment property
property property €m
€m €m
Owned investment properties at book value as at 31 March 2024 1,729.1 461.5 2,190.6
Additions relating to owned investment properties 39.1 109.4 148.5
Capex investment and capitalised broker fees 38.9 13.0 51.9
Disposal - (14.3) (14.3)
Gain/(deficit) on revaluation above capex investment and broker fees 87.7 (6.7) 81.0
Currency effects - 11.7 11.7
Owned investment properties as at 31 March 2025 1,894.8 574.6 2,469.4
Adjustment in respect of lease incentives (4.2) - (4.2)
Adjustment in respect of long-term leasehold liabilities 8.5 14.4 22.9
Total investment properties at book value as at 31 March 2025 1,899.1 589.0 2,488.1
Portfolio valuation - Germany
The book value of owned investment property increased by €165.7m to
€1,890.6m as at 31 March 2025. Valuation gains were driven by like-for-like
increase of €7.9m in rent roll and a small amount of yield compression. The
entire German portfolio is valued at an average gross yield of 7.4% (31 March
2024: 7.5%) which translates to a net yield of 6.7% (31 March 2024: 6.8%) and
an EPRA net yield (including estimated purchaser costs) of 6.3% (31 March
2024: 6.3%).
Yields have contracted within the entire German portfolio valuation by 10 bps
in the period to 7.4% (31 March 2024: 7.5%). The average capital value per sqm
of the portfolio has for the first time in the Company's history exceeded
€1,000 psqm at €1,008 psqm (31 March 2024: €950). When considering
vacancy of 18.4% (31 March 2024: 18.8%) remaining in its value-add asset
portfolio, which comprises circa 62% (31 March 2024: 61%) of the total
portfolio, there remains excellent opportunity for further growth,
particularly from upgrading and letting up the sub-optimal vacant space
through the Company's capex investment programmes, which is more closely
described in the Asset management review - Germany section of this report. As
the transformation of the value-add assets continues, the yield gap between
the mature and value-add assets is expected to reduce. The specifics of the
value-add and mature portfolios are detailed in the table below:
Total Book value NOI Capital Gross yield * Net yield * Vacant Rate psqm Occupancy
rent roll €m €m value % % space € * % *
€m €m/sqm * sqm *
Value-add assets 91.1 1,171.2 80.8 894 7.8% 6.9% 235,487 7.28 81.6%
Mature assets 49.1 719.4 47.0 1,270 6.8% 6.5% 30,168 7.93 94.5%
Other - - (1.4) - - - - - -
Total 140.2 1,890.6 126.4 1,008 7.4% 6.7% 265,655 7.50 85.4%
* Expressed as averages.
Portfolio valuation - UK
As at 31 March 2025, the UK portfolio was independently valued by Cushman
& Wakefield LLP at £480.0m (€574.6m) (31 March 2024: £394.7m
(€461.6m)), representing an increase of £85.3m (€113.0m) compared to the
prior year valuation. The increase in portfolio value reflects both
acquisition activity and organic growth in the portfolio more than offsetting
asset disposals. During the year we acquired five properties totalling £88.6m
(€106.1m) and disposed of four properties totalling £12.1m (€14.4m).
On a like-for-like basis, the portfolio increased in value by £8.4m (€10m)
or 2.2% to £391.3m (€468.4m), when compared to the value at 31 March 2024
of £382.9m (€458.4m).
The portfolio delivered an average gross yield of 14.1% (2024: 14.0%) and a
net yield of 9.5% (2024: 9.3%). The 20 basis point increase in net yield was
fully offset by growth in the rent roll over the year, contributing positively
to the like-for-like valuation uplift.
The average capital value of the portfolio of £77 per sq ft (€992 per sqm)
decreased compared to the 31 March 2024 position of £91 per sq ft (€1,150
per sqm) due to the transformational acquisition of Vantage Point Business
Village in Gloucestershire, which added 1.4m sq ft to the portfolio. The
average capital value of the portfolio remains well below replacement cost and
further supports the sentiment that there remains value-add potential within
the portfolio.
Total Book value NOI Capital Gross yield Net yield Vacant Rate psqft Occupancy
rent roll £m £m value % % space £ %
£m £m/sq ft sq ft
UK portfolio 67.9 480.0 45.5 76.99 14.1% 9.5% 793,583 12.47 87.3%
The UK does not have material lease incentives adjusting the investment
property values.
Net asset value
The Company has returned to double digit total shareholder accounting returns,
amounting to 12.5% (31 March 2024: 7.2%) on the back of the €81.0m valuation
surplus noted above and payment of the progressive dividend of 6.11c per share
in the financial year. On a per share basis, net asset value increased by 7.0%
in the period to 112.29c (31 March 2024: 104.96c), which once adjusted for
deferred taxes increased by 7% to 118.89c (31 March 2024: 111.12c). The
movement in NAV per share is explained in the following table:
Cents per share
NAV per share as at 31 March 2024 104.96
Recurring profit after tax 7.94
Equity raise 0.29
Gain on revaluation (net of capex) 5.37
Deferred tax charge (1.10)
Cash dividend paid (5.62)
Adjusting items(1) 0.46
NAV per share as at 31 March 2025 112.29
Deferred tax and derivatives 6.60
Adjusted NAV per share as at 31 March 2025(2) 118.89
EPRA adjustments(3) (1.28)
EPRA NTA per share as at 31 March 2025(2) 117.61
(1) Adjusting items includes items such as restructuring costs, share of
profit in associates, gains and losses on investments, share-based payments
including vesting and foreign currency effects.
(2) See Annex of 2025 annual accounts for further details.
(3) Adjusted for the potential impact of shares issued in relation to the
Company's long-term incentive programmes, intangible assets, provisions for
deferred tax and derivative financial instruments.
The EPRA NTA per share, which, like adjusted NAV per share, excludes the
provisions for deferred tax and fair value of derivative financial instruments
but also includes the potential impact of shares issued in relation to the
Company's long-term incentive programmes and excludes intangible assets, was
117.61c, an increase of 7.1% from 109.82c as at 31 March 2024.
Financing
The Company identified ongoing opportunities in the market to allocate capital
towards profitable acquisitions. In May 2024, it raised net proceeds of
€59.9m in debt through a 19.9% tap of its €300m corporate bond due in
November 2028, and €174.6m in equity in July 2024 to finance a pipeline of
assets in Germany and the UK. The Company further raised €350.0m in January
2025 with the issue of a heavily oversubscribed new bond due in January 2032,
which will primarily be used to repay the €400.0m bond due in June 2026.
This bond also provides the Company with the opportunity to tap this bond for
up to 30% (€105m), to provide the Company with additional capital. The
Company has completed or notarised transactions amounting to €153.3m (TAC)
during the period, with an additional €116.7m (TAC) post balance sheet,
bringing the total investment to €270.0m (TAC). This signifies a robust
return to acquisitive growth for the Company, with Fitch affirming its BBB
investment grade rating with a "Stable Outlook" in October 2024.
The Company's debt structure remains predominantly unsecured, with 82% of its
debt classified as such post the €350m bond issuance in January 2025, which
carries a seven-year term at a 4% interest rate. Additionally, the Company
refinanced its Saarbrücken asset with a local Sparkasse bank under a
five-year term at 3.27%, reflecting the strength of the Company's local
lending network, and the attractive rates on offer from these relationships.
As of 31 March 2025, the Company reported a weighted average cost of debt of
2.60%, a weighted average debt maturity of 4.2 years, net LTV of 31.4%
(compared to 33.9% as of 31 March 2024), and interest coverage at EBITDA level
of 6.3x (31 March 2024: 8.3x).
Net LTV, which reduces the loan balance by free cash (excluding restricted
cash balances) is calculated as follows:
Net LTV
31 March 2025 31 March 2024
€m €m
Total debt 1,345.6 955.4
Less cash and cash equivalents (not including cash restricted under (571.3) (214.5)
contractual terms)
Total 774.3 740.9
Book value of owned investment properties (including those assets held for 2,465.2 2,186.7
sale)
Net loan to value ratio (%) 31.4% 33.9%
All covenants were complied with in full during the period. A summary of the
movement in the Group's debt is set out below:
Movement in debt*
€m
Total debt as at 31 March 2024 955.4
Debt additions 409.9
Debt repayments (15.0)
Scheduled amortisation (4.7)
Total debt as at 31 March 2025 1,345.6
* Excludes loan issue costs.
Dividend
The Board has approved the Company's 23rd consecutive dividend increase over
twelve years, with 3.09 cents per share payable to shareholders for the second
half of the financial year ended 31 March 2025. Combined with the first half
dividend of 3.06 cents per share, this marks a 1.7% increase from the total
dividend of 6.05 cents declared for the previous financial year ended 31 March
2024.
Further details regarding the dividend distribution and announcement can be
found in note 27 of the Annual Report and Accounts.
Summary
The Company continued to capture organic growth across both jurisdictions and
built on the acquisition momentum which commenced in the prior period into the
year ended 31 March 2025.
The Company's balance sheet remains strong as demonstrated through its recent
equity and debt financings in the year, permitting it to continue to grow
through acquisitions whilst maintaining a healthy net LTV ratio. This has been
confirmed by Fitch in October 2024 through its BBB investment grade rating
with a stable outlook. The Company continues to deliver on its growth
objectives and continues to be well positioned to take advantage of
opportunities as they arise.
The Company's strong financial profile, along with its proven internal
operating platform, means the Company is fully capable of adapting to changing
market conditions. With acquisition firepower available, further vacancy to
develop and reversion potential to capture, as well as a defensively
positioned portfolio, the Company is well set to meet the challenges ahead and
looks forward to continuing to deliver attractive and sustainable returns for
shareholders in the future.
Chris Bowman
Chief Financial Officer
30 May 2025
DIRECTORS' RESPONSIBILITIES STATEMENT
The directors confirm that, to the best of their knowledge the preliminary
consolidated financial statements have been prepared in accordance with
international financial reporting standards, and give a true and fair view of
the assets, liabilities, financial position and profit or loss of the Group
and that this announcement includes a fair summary of the development and
performance of the business and the position of the Group. After making
enquiries, the directors considered it appropriate to adopt the going concern
basis in preparing the financial statements. The names and functions of the
Company's directors are listed on the Company's website.
Daniel Kitchen
Chairman
Principal Risks and Uncertainties
The principal risks and uncertainties faced by the Group are included on pages
61 to 62 of the Group's Annual Report and Accounts 2025 available on the
website at: www.sirius-real-estate.com (http://www.sirius-real-estate.com)
Consolidated income statement
for the year ended 31 March 2025
Notes Year ended Year ended
31 March 2025 31 March 2024
€m €m
Revenue 5 317.5 288.8
Direct costs 6 (130.8) (123.0)
Net operating income 186.7 165.8
Gain on revaluation of investment properties 13 79.4 12.2
Gain on disposal of properties 1.6 0.9
Movement in expected credit loss provision (0.3) 0.9
Administrative expenses 6 (53.9) (49.7)
Share of profit of associates 18 2.4 0.6
Operating profit 215.9 130.7
Finance income 9 13.9 6.6
Finance expense 9 (28.2) (20.8)
Change in fair value of derivative financial instruments 9 - (1.3)
Net finance expense (14.3) (15.5)
Profit before tax 201.6 115.2
Taxation 10 (23.4) (7.3)
Profit for the year after tax 178.2 107.9
Profit attributable to:
Owners of the Company 178.1 107.8
Non-controlling interest 0.1 0.1
178.2 107.9
Earnings per share
Basic earnings per share 11 12.20c 8.75c
Diluted earnings per share 11 12.02c 8.63c
All operations of the Group have been classified as continuing.
Consolidated statement of comprehensive income
for the year ended 31 March 2025
Notes Year ended Year ended
31 March 2025 31 March 2024
€m €m
Profit for the year after tax 178.2 107.9
Other comprehensive income that may be reclassified to profit or loss in
subsequent periods
Foreign currency translation 26 13.4 12.9
Other comprehensive income after tax that may be reclassified to profit or 13.4 12.9
loss in subsequent periods
Other comprehensive income for the year after tax 13.4 12.9
Total comprehensive income for the year after tax 191.6 120.8
Total comprehensive income attributable to:
Owners of the Company 191.5 120.7
Non-controlling interest 0.1 0.1
191.6 120.8
Consolidated statement of financial position
as at 31 March 2025
Notes 31 March 2025 31 March 2024
€m €m
Non-current assets
Investment properties 13 2,488.1 2,210.6
Plant and equipment 14 17.8 7.8
Intangible assets 15 1.7 3.3
Right of use assets 16 10.8 12.6
Other financial assets 17 49.1 49.1
Investment in associates 18 26.1 25.2
Deferred tax assets 10 4.1 -
Total non-current assets 2,597.7 2,308.6
Current assets
Trade and other receivables 19 70.2 42.4
Cash and cash equivalents 20 604.8 244.2
Total current assets 675.0 286.6
Total assets 3,272.7 2,595.2
Current liabilities
Trade and other payables 21 (117.7) (114.7)
Interest-bearing loans and borrowings 22 (0.4) (29.6)
Lease liabilities 16 (2.4) (2.3)
Current tax liabilities 10 (7.0) (7.0)
Total current liabilities (127.5) (153.6)
Non-current liabilities
Interest-bearing loans and borrowings 22 (1,318.6) (915.5)
Lease liabilities 16 (33.6) (35.5)
Deferred tax liabilities 10 (103.4) (82.7)
Total non-current liabilities (1,455.6) (1,033.7)
Total liabilities (1,583.1) (1,187.3)
Net assets 1,689.6 1,407.9
Equity
Issued share capital 25 - -
Other reserve 26 696.2 605.7
Own shares held 25 (8.5) (8.1)
Foreign currency translation reserve 26 7.4 (6.0)
Retained earnings 993.7 815.7
Total equity attributable to the owners of the Company 1,688.9 1,407.3
Non-controlling interest 0.7 0.6
Total equity 1,689.6 1,407.9
The financial statements on pages 129 to 173 were approved by the Board of
Directors on 30 May 2025 and were signed on its behalf by:
Daniel Kitchen
Chair
Company number: 46442
Consolidated statement of changes in equity
for the year ended 31 March 2025
Notes Issued Other Own Foreign Retained Total equity Non- Total
share reserve shares currency earnings attributable controlling equity
capital €m held translation €m to the interest €m
€m €m reserve owners of €m
€m the Company
€m
As at 31 March 2023 - 516.4 (8.3) (18.9) 707.9 1,197.1 0.5 1,197.6
Profit for the year - - - - 107.8 107.8 0.1 107.9
Other comprehensive income for the year - - - 12.9 - 12.9 - 12.9
Total comprehensive income for the year - - - 12.9 107.8 120.7 0.1 120.8
Shares issued 25 167.4 (2.1 ) - - - 165.3 - 165.3
Transaction costs relating to share issues 25 (3.3 ) - - - - (3.3 ) - (3.3 )
Dividends paid 27 - (75.3 ) - - - (75.3 ) - (75.3 )
Transfer of share capital 25 (164.1 ) 164.1 - - - - - -
Share-based payment transactions 8 - 5.0 - - - 5.0 - 5.0
Value of shares withheld to settle employee tax obligations 8 - (2.2 ) - - - (2.2 ) - (2.2 )
Own shares allocated 25 - (0.2 ) 0.2 - - - - -
As at 31 March 2024 - 605.7 (8.1) (6.0) 815.7 1,407.3 0.6 1,407.9
Profit for the year 178.1 178.1 0.1 178.2
Other comprehensive income for the year - - - 13.4 - 13.4 - 13.4
Total comprehensive income for the year - - - 13.4 178.1 191.5 0.1 191.6
Shares issued 25 185.0 (4.1) - - - 180.9 - 180.9
Transaction costs relating to share issues 25 (6.3) - - - - (6.3) - (6.3)
Dividends paid 27 - (84.5) - - - (84.5) - (84.5)
Transfer of share capital 25 (178.7) 178.7 - - - - - -
Share-based payment transactions 8 - 6.5 - - - 6.5 - 6.5
Value of shares withheld to settle employee tax obligations 8 - (3.8) - - - (3.8) - (3.8)
Own shares purchased 25 - - (2.7) - - (2.7) - (2.7)
Own shares allocated 25 - (2.3) 2.3 - - - - -
As at 31 March 2025 - 696.2 (8.5) 7.4 993.8 1,688.9 0.7 1,689.6
Consolidated statement of cash flows
for the year ended 31 March 2025
Notes Year ended Year ended
31 March 2025 31 March 2024
€m €m
Operating activities
Profit for the year before tax 201.6 115.2
Gain on disposal of properties (1.6) (0.9)
Loss on disposal of plant and equipment 0.1 -
Net exchange differences in working capital (4.1) 3.4
Share-based payments expenses 8 6.5 5.0
Gain on revaluation of investment properties 13 (79.4) (12.2)
Change in fair value of derivative financial instruments 9 - 1.3
Depreciation of plant and equipment 6 2.4 1.8
Amortisation of intangible assets 6 1.3 1.5
Loss on disposal of intangible assets 15 1.2 -
Depreciation of right of use assets 6 1.8 1.8
Share of profit of associates 18 (2.4) (0.6)
Finance income 9 (13.9) (6.6)
Finance expense 9 28.2 20.8
Changes in working capital
Decrease in trade and other receivables 0.3 (0.3)
Decrease in trade and other payables (2.1) 19.0
Cash generated from operations before tax 139.9 149.2
Taxation paid (6.8) (3.1)
Cash flows from operating activities 133.1 146.1
Investing activities
Purchase of investment properties (141.5) (71.0)
Prepayments relating to investment property acquisitions (38.5) (7.1)
Capital expenditure on investment properties (48.8) (39.5)
Purchase of plant and equipment and intangible assets (13.2) (3.1)
Proceeds on disposal of properties (including assets held for sale when 19.7 46.4
applicable)
Dividends received from investment in associates 1.5 2.1
Increase in loans to associates - (0.7)
Interest received 13.7 6.6
Cash flows used in investing activities (207.1) (66.3)
Financing activities
Proceeds from issue of share capital 25 180.9 165.3
Transaction costs on issue of shares 25 (6.3) (3.3)
Shares purchased (2.7) -
Payment relating to exercise of share options 8 (3.8) (2.2)
Dividends paid to owners of the Company 27 (84.5) (75.3)
Proceeds from loans 22 409.9 228.3
Repayment of loans 22 (19.7) (248.0)
Payment of principal portion of lease liabilities (2.3) (2.2)
Capitalised loan issue costs(1) (19.5) (3.1)
Finance charges paid(1) (22.9) (16.9)
Cash flows from financing activities 429.1 42.6
Increase in cash and cash equivalents 355.1 122.4
Net foreign exchange differences 5.5 (2.5)
Cash and cash equivalents as at the beginning of the year 244.2 124.3
Cash and cash equivalents as at the year end 20 604.8 244.2
(1) To conform to the current year presentation, the capitalised loan
issue costs has been shown as a separate line and this is a reallocation from
finance charges paid for the year ended 31 March 2024.
Notes to the financial statements
for the year ended 31 March 2025
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 year ended 31 March 2025.
The principal activity of the Group is the investment in, and development of,
industrial, warehouse and office properties to provide conventional and
flexible workspace in Germany and the United Kingdom ("UK").
2. Material accounting policies information
(a) Basis of preparation and statement of compliance
The consolidated financial statements have 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 consolidated financial information is presented in euros and all values
are rounded to the nearest hundred thousand shown in millions (€m), except
where otherwise indicated.
The Company has prepared its annual consolidated financial statements in
accordance with International Financial Reporting Standards ("IFRS") as issued
by the International Accounting Standards Board ("IASB"), the Disclosure and
Transparency Rules of the United Kingdom Financial Conduct Authority, the JSE
Listings Requirements and The Companies (Guernsey) Law, 2008.
The consolidated financial statements have been prepared on the same basis as
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).
(b) Changes in accounting policies
New and amended standards and interpretations
The Group applied for the first time certain new standards, amendments and
interpretations, which are effective for annual periods beginning on or after
1 January 2024 (unless otherwise stated).
• Amendments to IAS 1 - Classification of liabilities as current or
non-current and non-current liabilities with covenants
• Amendments to IAS 7 and IFRS 7 - Disclosure: Supplier finance
arrangements
• Amendments to IFRS 16 - Lease liability in a sale and leaseback
There has been no material impact on the financial statements of adopting any
new standards, amendments and interpretations.
A number of new standards, amendments and interpretations have been issued but
are not yet effective for the Group and have not been early adopted as listed
below:
• Amendments to IAS 21 - Lack of exchangeability
• Amendments to IFRS 7 and IFRS 9 - Contracts referencing
nature-dependent electricity
• Amendments to IFRS 7 and IFRS 9 - Amendments to the classification
and measurement of financial instruments
• IFRS 19 Subsidiaries without Public Accountability
• IFRS 18 Presentation and Disclosure in Financial Statements
The application of these new standards, amendments and interpretations is not
expected to have a material impact on the Group's consolidated financial
statements with the exception of IFRS 18. The Group expects that IFRS 18, when
initially applied, may have a material impact on it presentation of financial
statements. The Group is in the process of assessment of the potential impact
on its financial statements resulting from the application of IFRS 18.
(c) Going concern
The Group has prepared its going concern assessment for the period to 31
October 2026 (the "going concern period"), a period greater than twelve
months, chosen to align with its historical application of the period and to
cover all significant upcoming refinancings.
The Group's going concern assessment is based on a forecast of the Group's
future cash flows and covenant compliance. 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 22) 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, considering factors like geopolitical instability through
potential impacts of heightened inflation, unattractive borrowing rates on
expiring debt, and outward yield movements on investment properties, as well
as the risk of tenant insolvencies and or increased move-outs which are not
replaced. The projections estimate headroom on the Group's debt facilities and
covenants based on future trading performance and valuation movements.
The recent macro trends, specifically relating to increased cost of debt, have
placed further pressure on the costs of the business, however this did not
result in any deterioration in the Group's profitability in the period ended
31 March 2025 and asset values have improved due to a combination of rent roll
growth and yield compression since the 31 March 2024 valuation. In addition,
the Group raised equity of €180.9m in July 2024, raised a further €59.9m
in May 2024 on the November 2028 corporate bond and raised €350.0m through a
corporate bond issuance in January 2025. However, the Directors continue to be
mindful of the challenging macro-factors present in the market and maintain
their perspective 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 31 March 2025, 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, repayment of the €400.0m corporate bond due in June 2026 and
refinancing of the €150.4m loan within the investment in associates as it
falls due in March 2026 (€52.6m represents the Company's 35% stake) at
market interest rates;
• only acquisitions and disposals which are contractually committed
or board approved are made, which includes five post balance sheet
acquisitions totalling €116.7m and one €30.0 post balance sheet disposal,
as specified in the Investment review section of this report.
Severe but plausible downside scenario:
• reduction in occupancy and rental income of 10% per annum from the
base case;
• reduction in service charge recovery of 10% per annum from the
base case recoverability;
• increasing cost levels at a higher rate of inflation of 3%;
• 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 the €400.0m corporate bond due in June 2026 and
repayment (rather than refinancing) of the €150.4m loan within the
investment in associates as it falls due in March 2026 (€52.6m represents
the Company's 35% stake); and
• only acquisitions and disposals which are contractually committed
or board approved are made, which includes five post balance sheet
acquisitions totalling €116.7m and one €30.0m post balance sheet disposal,
as specified in the Investment review section of this report.
The Directors are of the view that a more severe scenario arising is
implausible based upon the Group's track record of performance in challenging
scenarios, most recently through the high interest and inflationary
environment in both Germany and the UK, the Covid-19 pandemic and post
pandemic period.
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 from
31 March 2025 of 21%, before there was a loan to value covenant breach, whilst
a reduction of 32% of EBITDA or 22% reduction in contracted rent roll would be
required before any income related covenants would breach. 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 the base case scenario, the Group forecasts having sufficient free cash
available to fund the aforementioned loans falling due within the period and
its post balance sheet acquisitions. In the severe but plausible downside
scenario, the Group could utilise mitigating actions available to it which
include restricting non-REIT related dividends, reducing capital expenditure,
the disposal of assets or additional sources of financing such as rolling
credit facilities and tapping existing bonds. The restriction of non-REIT
related dividends and the reduction to capital expenditure are mitigating
actions within the control of the Directors and there is sufficient time to
implement these restrictions if required. The Group does not forecast any
material covenant breaches in the severe but plausible downside scenario
throughout the going concern period.
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, of which none have been identified.
After due consideration of the going concern assessment for the period to 31
October 2026, the Board believes it is appropriate to adopt the going concern
basis in preparing its financial statements.
(d) Basis of consolidation
The consolidated financial information comprises the financial information of
the Group as at 31 March 2025. The financial information of the subsidiaries
is prepared for the same reporting period as the Company, using consistent
accounting policies.
All intra-group balances and transactions and any unrealised income and
expenses arising from intra-group transactions are eliminated in preparing the
consolidated financial statements.
Subsidiaries are fully consolidated from the date of acquisition, being the
date on which the Group obtains control, and continue to be consolidated until
the date that such control ceases.
Non-controlling interests represent the portion of profit or loss and net
assets not held by the Group and are presented separately in the consolidated
income statement and the consolidated statement of comprehensive income and
within equity in the consolidated statement of financial position, separately
from the Company's shareholders' equity.
(e) Acquisitions
Where a property is acquired through the acquisition of corporate interests,
management considers the substance of the assets and activities of the
acquired entity in determining whether the acquisition represents the
acquisition of a business.
The Group accounts for an acquisition as a business combination where an
integrated set of activities is acquired in addition to the property (see
policy in note 2(w)). An acquired set of activities and assets is not a
business if substantially all of the fair value of the gross assets acquired
is concentrated in a single identifiable asset or group of similar
identifiable assets.
Where such acquisitions are not deemed to be an acquisition of a business,
they are not treated as business combinations. Instead, they are treated as
asset acquisitions, with the cost to acquire the corporate entity being
allocated between the identifiable assets and liabilities of the entity based
on their relative fair values on the acquisition date. Accordingly, no
goodwill arises.
(f) Foreign currency translation
The consolidated financial information is presented in euros, which is the
functional and presentational currency of the Parent Company. For each entity,
the Group determines the functional currency and items included in the
financial statements of each entity are measured using the functional
currency.
Transactions in foreign currencies are initially recorded in the functional
currency at the exchange rate ruling at the date of the transaction. Monetary
assets and liabilities denominated in foreign currencies are retranslated into
the functional currency at the exchange rate ruling at the statement of
financial position date. All differences are taken to the statement of profit
and loss. Non-monetary items that are measured in terms of historical cost in
a foreign currency are translated using the exchange rates at the dates of
the initial transactions. Non-monetary items measured at fair value in a
foreign currency are translated using the exchange rates at the date when the
fair value is determined. The gain or loss arising on translation of
non-monetary items measured at fair value is treated in line with the
recognition of the gain or loss on the change in fair value of the item (i.e.
translation differences on items whose fair value gain or loss is recognised
in other comprehensive income ("OCI") or profit or loss are also recognised in
OCI or profit or loss, respectively).
On consolidation, the assets and liabilities of foreign operations are
translated into euros at the rate of exchange prevailing at the reporting date
and their statements of profit or loss are translated at the exchange rates at
the dates of the transactions, or where appropriate, the average exchange
rates for the period. The foreign exchange differences arising on translation
for consolidation are recognised in OCI. On disposal of a foreign operation,
the component of OCI relating to that particular foreign operation is
reclassified to profit or loss.
(g) Revenue recognition
Rental income
Rental income from operating leases and licence agreements containing leases
is recognised on a straight-line basis over the term of the relevant lease
unless another systematic basis is more representative of the time pattern in
which the benefit derived from the leased asset is diminished. Fixed or
determinable rental increases, which can take the form of actual amounts or
agreed percentages, are recognised on a straight-line basis over the term of
material leases. If the increases are related to a price index to cover
inflationary cost increases, then the policy is to apply the price index from
the date it is effective on a straight-line basis over the remaining lease
term.
Lease incentives (including rent free periods, stepped rents, indexation
clauses and other types of incentive) are spread on a straight-line basis over
the lease term. Where there is a reasonable expectation that the tenant will
exercise break options, the lease incentives are spread up to the break date.
The above applies to both revenues generated from investment properties and
managed properties.
In addition to the above, the Group has entered into leases and licensing
arrangements (which meet the definition of a lease under IFRS 16 Leases ("IFRS
16")) where the revenue due from the tenant is an all-inclusive price,
representing lease income (recognised in accordance with IFRS 16) and service
charge income (recognised in accordance with IFRS 15 Revenue from Contracts
with Customers ("IFRS 15")). Management has estimated the allocation of the
revenues using the relevant service charge costs incurred and the occupancy of
the properties where all-inclusive lease and licence arrangements are in
place.
Revenue from contracts with customers
The Group's revenue from contracts with customers includes service charge
income and other income.
(i) Service charge income
The Group generates revenue from management charges and other expenses
recoverable from tenants based on the Group's right to recharge tenants for
costs incurred (with or without markup) on a day-to-day basis. These services
are specified in the lease agreements and separately invoiced. Service charge
income is recognised as revenue when the performance obligations of the
services specified in the lease agreements are met.
The Group acts as a principal in relation to these services, and records
revenue on a gross basis, as it controls the specified goods or services
before transferring them to tenants.
(ii) Other income
(ii) (a) Other income from managed properties
The Group has contractual agreements with its associate for the management of
its properties. This generates fee income which is recognised when the
services are provided to the associate at an amount that reflects the
consideration to which the Group expects to be entitled in exchange for those
services. The Group identifies itself as a principal in this arrangement as it
controls and manages the services provided to its customers.
(ii) (b) Other income from investment properties
The Group has other property related income including conferencing and
catering activities, internet, telephone and virtual office services. This
income is recognised when control of the goods or services is transferred to
the customer at an amount that reflects the consideration to which the Group
expects to be entitled in exchange for those goods or services.
(h) Leases
Group as lessor
Leases where the Group does not transfer substantially all the risks and
benefits of ownership of the asset are classified as operating leases with
rental income recognised from these leases and licence agreements containing
leases held with tenants (see policy in note 2(g)).
Group as lessee
All contracts that give the Group the right to control the use of an
identified asset over a certain period of time in return for consideration are
considered leases within the meaning of IFRS 16.
The Group, at the commencement date of the lease (i.e. the date the underlying
asset is available for use), recognises lease liabilities equal to the present
value of the future lease payments, discounted to reflect the term-specific
incremental borrowing rate if the interest rate implicit in the lease is not
readily determinable. Lease liabilities are subsequently increased by the
periodic interest expenses and reduced by the lease payments made during the
financial year.
Correspondingly, right of use assets are initially recognised at the amount of
the lease liabilities (plus any advance payments that have already been made
or any initial direct costs). Subsequently, the right of use assets are
generally measured at cost, taking depreciation (calculated straight-line over
the lease term) and impairments into account and are presented separately in
the statement of financial position except for right of use assets that meet
the definition of IAS 40 Investment Property ("IAS 40") which are presented as
investment property and subsequently measured at fair value.
The Group utilises the recognition exemptions provided by IFRS 16 and does not
apply IFRS 16 to leases with a contractual term of twelve months or less or to
leases in which the underlying asset is of low value (on a case-by-case
basis).
Lease payments associated with short-term leases and with leases of low-value
assets are recognised as expenses on a straight-line basis over the lease
term.
Right of use assets relating to office spaces are depreciated on a
straight-line basis over the shorter of the lease term and the estimated
useful lives of the assets.
(i) Income tax
Certain subsidiaries may be subject to foreign taxes in respect of foreign
sources of income. Sirius Real Estate Limited is a UK resident for tax
purposes. The Group's UK property business is a UK Real Estate Investment
Trust ("REIT"). As a result, the Group's UK property business does not pay UK
corporation tax on its profits and gains from the qualifying rental business
in the UK. Non-qualifying UK profits and gains continue to be subject to
corporation tax as normal.
Current income tax
Current income tax assets and liabilities are measured at the reporting date
at the amount expected to be recovered from or paid to the taxation
authorities. The tax rates and tax laws used to compute the amount are those
that are enacted or substantively enacted by the reporting date.
Deferred income tax
Deferred income tax is recognised on all temporary differences arising between
the tax bases of assets and liabilities and their carrying amounts in the
consolidated financial statements, with the following exceptions:
• where the temporary difference arises from the initial recognition
of goodwill or of an asset or liability in a transaction that is not a
business combination that, at the time of the transaction, does not give rise
to equal taxable and deductible temporary differences and affects neither
accounting nor taxable profit or loss;
• in respect of taxable temporary differences associated with
investments in subsidiaries and associates, where the timing of the reversal
of the temporary differences can be controlled and it is probable that the
temporary differences will not reverse in the foreseeable future; and
• deferred tax assets are only recognised to the extent that it is
probable that taxable profit will be available against which the deductible
temporary differences, carried forward tax credits or tax losses can be
utilised.
Deferred tax assets and liabilities are only offset if there is a legally
enforceable right to set off current tax assets against current tax
liabilities, they relate to income of the same taxable entity or tax group and
is taxed by the same taxation authority. Deferred tax assets and liabilities
are recognised based on tax rates (and tax laws) that have been enacted or
substantively enacted at the reporting date and are not discounted.
The Group has applied the exception in IAS 12 to recognising and disclosing
information about deferred tax assets and liabilities related to Pillar Two
income taxes.
(j) Sales tax
Revenues, expenses, assets and liabilities are recognised net of the amount of
sales tax except:
• where the sales tax incurred on a purchase of assets or services
is not recoverable from the taxation authority, in which case the sales tax is
recognised as part of the cost of acquisition of the asset or as part of the
expense item as applicable; and
• receivables and payables that are stated with the amount of sales
tax included.
The net amount of sales tax recoverable from, or payable to, the taxation
authority is included as part of receivables or payables in the statement of
financial position.
(k) Investment properties
Investment properties are properties that are either owned by the Group or
held under a lease which are held for long-term rental income and/or capital
appreciation.
Gains or losses arising from changes in the fair values of all investment
properties are included in the income statement in the period in which they
arise.
Owned investment properties
Investment properties owned by the Group are initially recognised at cost,
including transaction costs when the control of the property is transferred.
Where recognition criteria are met, the carrying amount includes subsequent
costs to add to or replace part of an investment property. Subsequent to
initial recognition, owned investment properties are stated at fair value,
which reflects market conditions at the reporting date as determined by
professional external valuer.
Long-term leasehold
Long-term leasehold liabilities associated with the ownership of property and
the resultant right of use assets are accounted for in accordance with IFRS 16
(see policy in note 2(h)). An adjustment is made to the fair value of the
investment property for such recognised long-term leasehold.
(l) Disposals of investment property
Investment property disposals are recognised when control of the property
transfers to the buyer, which typically occurs on the date of completion.
Profit or loss arising on disposal of investment properties is calculated by
reference to the most recent carrying value of the asset adjusted for
subsequent capital expenditure.
(m) Plant and equipment
Recognition and measurement
Items of plant and equipment are stated at historical cost less accumulated
depreciation and any impairment loss.
Depreciation
Where parts of an item of plant and equipment have different useful lives,
they are accounted for as separate items of plant and equipment.
Depreciation is charged in the income statement on a straight-line basis over
the estimated useful lives of an item of the fixed assets. The estimated
useful lives are as follows:
Plant and equipment three to ten years
Fixtures and fittings three to fifteen years
Depreciation methods, useful lives and residual values are reviewed at each
reporting date.
(n) Intangible assets
The Group recognises both internally developed and acquired intangible assets.
Intangible assets acquired separately are measured on initial recognition at
cost. Following initial recognition, intangible assets are carried at cost
less any accumulated amortisation and accumulated impairment losses.
Intangible assets with a definite useful life are amortised on a straight-line
basis over their respective useful lives. Their useful lives are between three
and five years. Any amortisation of these assets is recognised as such under
administrative expenses in the consolidated income statement.
Development expenditures on an individual project are recognised as an
intangible asset when the Group can demonstrate:
• the technical feasibility of completing the intangible asset so
that the asset will be available for use or sale;
• its intention to complete and its ability and intention to use or
sell the asset;
• how the asset will generate future economic benefits;
• the availability of resources to complete the asset; and
• the ability to measure reliably the expenditure during
development.
Following initial recognition of the development expenditure as an asset, the
asset is carried at cost less any accumulated amortisation and accumulated
impairment losses. Amortisation of the asset begins when development is
complete, and the asset is available for use. It is amortised over the period
of expected future benefit. Amortisation is recorded in cost of sales. During
the period of development, the asset is tested for impairment annually.
(o) Trade and other receivables
Trade receivables include rent and service charge receivables that do not
contain significant financing components and are measured at the transaction
price. Other receivables are initially measured at fair value plus transaction
costs. Subsequently, trade and other receivables are measured at amortised
cost and are subject to impairment. The Group applies the simplified
impairment model of IFRS 9 Financial Instruments in order to determine
expected credit losses in trade and other receivables, including lease
incentives.
The Group assesses on a forward-looking basis the expected credit losses
associated with its trade and other receivables. A provision for impairment is
made for the lifetime expected credit losses on initial recognition of the
receivable. If collection is expected in more than one year, the balance is
presented within non-current assets.
(p) Treasury Shares and shares issued to the Employee Benefit Trust
Own equity instruments are deducted from equity. No gain or loss is recognised
in the income statement on the purchase, sale, issue or cancellation of the
Group's equity instruments.
(q) Equity-settled share-based payments
The fair value of equity-settled share-based payments to employees is
determined at the date of grant and is recognised in employee costs (note 7)
on a straight-line basis, together with a corresponding increase in equity
(other reserve) over the period that individuals are providing service to the
Group in respect of the awards. The cumulative expense recognised for
equity-settled transactions at each reporting date until the vesting date
reflects the extent to which the vesting period has expired and the Group's
best estimate of the number of equity instruments that will ultimately vest.
The expense or credit in the statement of profit or loss for a period
represents the movement in cumulative expense recognised as at the beginning
and end of that period.
For share awards granted under the LTIP and SIP, the fair values are
determined by Monte-Carlo and Black-Scholes models (see note 8).
The amount recognised as an expense is adjusted to reflect the number of
awards for which the related service and non-market vesting conditions are
expected to be met, such that the amount ultimately recognised as an expense
is based on the number of awards that meet the related service and non-market
performance conditions at the vesting date.
(r) Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and in hand, demand deposits
and other short-term, highly liquid investments with original maturities of
three months or less that are readily convertible to a known amount of cash
and are subject to an insignificant risk of change in value.
(s) Bank borrowings
Interest-bearing bank loans and borrowings are initially recorded at fair
value net of directly attributable transaction costs.
Subsequent to initial recognition, interest-bearing loans and borrowings are
measured at amortised cost using the effective interest rate method.
When debt refinancing exercises are carried out, existing liabilities will be
treated as being extinguished when the new liability is substantially
different from the existing liability. In making this assessment, the Group
will consider the transaction as a whole, taking into account both qualitative
and quantitative characteristics in order to make the assessment.
(t) Trade payables
Trade payables are initially measured at fair value and are subsequently
measured at amortised cost, using the effective interest rate method.
(u) Equity instruments
Equity instruments issued by the Company are recorded at the proceeds
received, net of direct issue costs.
(v) Dividends
Interim dividend distributions to shareholders are recognised in the financial
statements when paid. Final dividend distributions to the Company's
shareholders are recognised as a liability in the consolidated financial
information in the period in which the dividends are approved by the
shareholders. The final dividend relating to the year ended 31 March 2025 will
be approved and recognised in the financial year ending 31 March 2026.
(w) Business combinations
(i) Subsidiary undertakings
Business combinations are accounted for using the acquisition method at the
acquisition date, which is the date on which control is transferred to the
Group. Control is achieved when the Group is exposed, or has rights, to
variable returns from its involvement with the investee and has the ability to
affect those returns through its power over the investee. In assessing
control, the Group takes into consideration potential voting rights that
currently are exercisable, as well as other factors including Board
representation. The financial statements of subsidiaries are included in the
consolidated financial statements from the date that control passes.
(ii) Associates
Associates are those entities over which the Group has significant influence,
but which are not subsidiary undertakings or joint ventures. The results and
assets and liabilities of associates are incorporated in these financial
statements using the equity method of accounting. Investments in associates
are carried in the balance sheet at cost as adjusted by post-acquisition
changes in the Group's share of the net assets of the associate, less any
impairment in the value of individual investments.
(x) Non-IFRS measures
Further details on non-IFRS measures can be found in the Annex 1 section of
the financial statements.
(i) EPRA 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 11 includes a reconciliation of basic and
diluted earnings to EPRA earnings. Note 12 includes a reconciliation of net
assets to EPRA net asset value metrics. Note 24 includes a calculation of EPRA
loan to value ratio.
(ii) Earnings disclosure required by the JSE Limited
The Directors are required, as part of the JSE Listings Requirements, to
disclose headline earnings; in order to provide an alternative indication of
the Group's underlying business performance. Headline earnings are calculated
in accordance with the circular titled Headline Earnings issued by SAICA, as
amended from time to time. Note 11 includes a reconciliation between IFRS and
headline earnings.
(iii) Other earnings disclosures
The Directors have chosen to disclose funds from operations in order 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 or loss after tax and funds from operations is
included within note 4.
The Directors have chosen to no longer disclose adjusted earnings and adjusted
profit after tax as an alternative performance measure because they concluded
that these performance measures do not provide relevant information that best
represents the Group's financial position and its operating and strategic
priorities. The primary focus is on the performance measures mentioned under
policy note (x) which provide transparent and accurate reflection of the
Group's financial performance and are widely used and recognised across the
industry.
By streamlining disclosures, the Directors aim to align reporting practices
with industry standards and regulatory expectations, ensuring that investors
and analysts can assess the Company's financial position without reliance on
supplemental metrics.
This decision is also in line with the Company's commitment to providing
clear, concise, and relevant financial information that best represents its
operational and strategic priorities.
3. Critical accounting judgements, key and other sources of estimation
uncertainty
Critical accounting judgements
In the process of applying the Group's accounting policies, which are
described in note 2, the Directors have made the following judgements that
have the most significant effect on the amounts recognised in the financial
information:
Acquisition and disposal of properties
Property transactions can be complex in nature and material to the financial
statements. To determine when an acquisition or disposal should be recognised,
management considers whether the Group assumes or relinquishes control of the
property, and the point at which this is obtained or relinquished.
Consideration is given to the terms of the acquisition or disposal contracts
and any conditions that must be satisfied before the contract is fulfilled. In
the case of an acquisition, management must also consider whether the
transaction represents an asset acquisition or business combination.
Key sources of estimation uncertainty
The key assumptions concerning the future and other key sources of estimation
uncertainty at the reporting date that have a significant risk of causing a
material adjustment to the carrying amounts of assets and liabilities within
the next financial year are discussed below:
Valuation of investment properties (including those recognised within assets
held for sale)
The fair value of the Group's owned investment properties was determined by
Cushman & Wakefield LLP (2024: Cushman & Wakefield LLP), an
independent valuer.
The Cushman & Wakefield LLP valuation approach is explained in note 13.
As a result of the level of estimation used in arriving at the market
valuations, the amounts which may ultimately be realised in respect of any
given property may differ from the valuations shown on the statement of
financial position. Refer to note 13 for further information, including
sensitivity analysis.
Other sources of estimation uncertainty
The following areas of estimation uncertainty are not presented to comply with
the requirements of paragraph 125 of IAS 1 as it is not expected there is a
risk of a material adjustment to the carrying amount of assets and liabilities
within the next financial year. They are presented as additional disclosure of
estimates used in the accounts.
Sustainability
In preparing the financial statements, management considered the impact of
climate change, taking into account the relevant disclosures in the Strategic
report, including those made in accordance with the recommendations of the
Task Force on Climate-related Financial Disclosures. The Group also considered
the work performed to date in preparing its potential net zero pathway for the
German portfolio to 2045 based on the Carbon Risk Real Estate Monitor
("CRREM") methodology, the leading global standard for operational
decarbonisation of real estate assets, and in line with the Science Based
Target initiative ("SBTi") and the Energy Performance Certificate ("EPC")
regulatory requirements for the UK. These considerations included a limited
exposure in relation to the investment properties, based on the current
climate-related requirements. On this basis, the Directors concluded that
climate change did not have a material impact on the financial reporting
judgements and estimates for the period, consistent with this assessment this
is not expected to have a significant impact on the Group's going concern of
viability assessment.
4. Operating segments
Information on each segment, which are considered to be each geographical
location, is provided to the chief operating decision maker, namely the
Company Board of Directors and the Executive Committee members.
These are considered 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 is disclosed in note 13
owing to the range in values of key inputs and assumptions underpinning the
property valuation.
There are no sales between reportable segments. There is no single tenant that
makes up more than 10% of a reportable segment's revenue or Group revenue.
The Directors have enhanced the information provided in the reportable segment
disclosure this year in to better reflect the information provided to the
Board on the underlying operating segments and to provide further information
on material elements of those segments. The comparative information has been
amended to be consistent with the information provided this year. This has
resulted in the segment results now including disaggregation of direct costs,
employee costs per segment and a reconciliation from segment profit/(loss)
after tax to FFO.
From these additional enhancements there is no change to the segment profit
for Germany and the UK.
Year ended Year ended
31 March 2025 31 March 2024
Germany UK Total Germany UK Total
€m €m €m €m €m €m
Rental income from investment properties 134.1 47.8 181.9 127.6 37.4 165.0
Total rental income 134.1 47.8 181.9 127.6 37.4 165.0
Other income from investment properties 8.6 3.3 11.9 3.9 0.9 4.8
Service charge income from investment properties 71.1 33.3(1) 104.4 73.4 25.9 99.3
Other income from managed properties 5.5 - 5.5 4.6 - 4.6
Service charge income from managed properties 13.8 - 13.8 15.1 - 15.1
Total revenue from contracts with customers 99.0 36.6 135.6 97.0 26.8 123.8
Revenue 233.1 84.4 317.5 224.6 64.2 288.8
Service charge costs relating to investment properties (81.4) (25.8) (107.2) (78.8) (20.8) (99.6)
Costs relating to managed properties (15.2) - (15.2) (16.3) - (16.3)
Non-recoverable maintenance costs (4.3) (4.1) (8.4) (4.2) (2.9) (7.1)
Direct costs (100.9) (29.9) (130.8) (99.3) (23.7) (123.0)
Net operating income 132.2 54.5 186.7 125.3 40.5 165.8
Gain/(loss) on revaluation of investment properties 86.2 (6.8) 79.4 40.8 (28.6) 12.2
(Loss)/gain on disposal of properties (0.1) 1.7 1.6 0.9 (0.0) 0.9
Movement in expected credit loss provision (0.2) (0.1) (0.3) 0.9 (0.0) 0.9
Employee costs (13.9) (8.0) (21.9) (18.6) (5.2) (23.8)
Depreciation and amortisation (3.7) (1.8) (5.5) (4.1) (1.0) (5.1)
Other administrative expenses (19.2) (7.3) (26.5) (16.3) (4.5) (20.8)
Share of profit of associates 2.4 - 2.4 0.6 - 0.6
Operating profit 183.7 32.2 215.9 129.5 1.2 130.7
Bank interest income 10.9 0.8 11.7 3.3 1.1 4.4
Finance income from associates 2.2 - 2.2 2.2 - 2.2
Amortisation of capitalised finance costs (3.3) - (3.3) (3.5) - (3.5)
Other finance expense (20.6) (4.3) (24.9) (13.0) (4.3) (17.3)
Change in fair value of derivative financial instruments - - - (1.3) - (1.3)
Net finance expense (10.8) (3.5) (14.3) (12.3) (3.2) (15.5)
Segment profit/(loss) before tax 172.9 28.7 201.6 117.2 (2.0) 115.2
Taxation (22.6) (0.8) (23.4) (7.1) (0.2) (7.3)
Segment profit/(loss) after tax 150.3 27.9 178.2 110.1 (2.2) 107.9
(1) Includes €26.2m (2024: €21.4m) 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 following table shows the reconciliation from segment profit or loss after
tax with funds from operations by segment:
Year ended Year ended
31 March 2025 31 March 2024
Germany UK Total Germany UK Total
€m €m €m €m €m €m
Segment profit/(loss) for the year after tax 150.3 27.9 178.2 110.1 (2.2) 107.9
Adjustments for:
Gain on revaluation of investment properties (86.2) 6.8 (79.4) (40.8) 28.6 (12.2)
Adjustment in respect of long-term leasehold liabilities (1.3) - (1.3) (0.9) - (0.9)
Gain of disposals of properties 0.1 (1.7) (1.6) (0.9) 0.0 (0.9)
(Gain)/loss on revaluation of investment property from associates and related (0.1) - (0.1) 1.6 - 1.6
tax
Other expenses not included in FFO 0.6 - 0.6 0.9 - 0.9
Share-based payments 6.5 - 6.5 5.0 - 5.0
Change in fair value of financial derivatives - - - 1.3 - 1.3
Foreign exchange effects (4.1) - (4.1) (3.4) - (3.4)
Depreciation and amortisation (excluding depreciation relating to IFRS 16) 2.2 1.5 3.7 2.3 1.0 3.3
Amortisation of financing fees 3.3 - 3.3 3.5 - 3.5
Adjustment in respect of IFRS 16 0.8 0.0 0.8 0.6 - 0.6
Add back total deferred tax 16.8 (0.2) 16.6 2.5 - 2.5
Add back current tax relating to disposals - - - 1.0 - 1.0
Funds from operations 88.9 34.3 123.2 82.8 27.4 110.2
For more information on funds from operations, refer to Annex 1.
31 March 2025 31 March 2024
Germany UK Total Germany UK Total
€m €m €m €m €m €m
Segment assets
Investment properties 1,899.1 589.0 2,488.1 1,735.0 475.6 2,210.6
Investment in associates 26.1 - 26.1 25.2 - 25.2
Other non-current assets(1) 21.1 9.2 30.3 20.8 2.9 23.7
Total segment non-current assets 1,946.3 598.2 2,544.5 1,781.0 478.5 2,259.5
(1) Consists of plant and equipment, intangible assets and right of use
assets.
5. Revenue
Year ended Year ended
31 March 2025 31 March 2024
€m €m
Rental income from investment properties 181.9 165.0
Total rental income 181.9 165.0
Other income from investment properties 11.9 4.8
Service charge income from investment properties(1) 104.4 99.3
Other income from managed properties 5.5 4.6
Service charge income from managed properties 13.8 15.1
Total revenue from contracts with customers 135.6 123.8
Revenue 317.5 288.8
(1) Includes €26.2m (2024: €21.4m) 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 its associate. As part of this, service
charge income from managed properties is generated which relates to costs the
Group incur to provide the associate with necessary services.
A reconciliation of the revenue from contracts with customers by segment is
disclosed in the segment information (see note 4).
6. Operating profit
The following items have been charged in arriving at operating profit:
Direct costs
Year ended Year ended
31 March 2025 31 March 2024
€m €m
Service charge costs relating to investment properties 107.2 99.6
Costs relating to managed properties 15.2 16.3
Non-recoverable maintenance costs 8.4 7.1
Direct costs 130.8 123.0
Administrative expenses
Year ended Year ended
31 March 2025 31 March 2024
€m €m
Audit and non-audit fees to audit firm 2.3 1.4
Legal and professional fees 8.9 5.5
Other administration costs 4.8 4.1
Share-based payments 6.5 5.0
Employee costs 21.9 23.8
Director fees and expenses 0.7 0.7
Depreciation of plant and equipment (see note 14) 2.4 1.8
Amortisation of intangible assets (see note 15) 1.3 1.5
Depreciation of right of use assets (see note 16) 1.8 1.8
Marketing 2.7 3.2
Other expenses not included in FFO(1) 0.6 0.9
Administrative expenses 53.9 49.7
(1) This is legal case costs relating to the legal case mentioned in note
21.
Other administration costs include net foreign exchange gains of €4.1m as a
result of increasing British pound sterling ("GBP") rates throughout the year
(2024: €3.4m gain as a result of increasing GBP rate throughout the year).
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 4).
Audit fees and non-audit fees to audit firm
The following services have been provided by the Group's auditor:
Year ended Year ended
31 March 2025 31 March 2024
€m €m
Audit fees to audit firm:
Audit of consolidated financial statements 1.2 1.0
Audit of subsidiary undertakings 0.3 0.3
Total audit fees 1.5 1.3
Audit related assurance services 0.8 0.1
Total fees for non-audit services 0.8 0.1
Total fees 2.3 1.4
7. Employee costs and numbers
Year ended Year ended
31 March 2025 31 March 2024
€m €m
Wages and salaries(1) 33.3 28.9
Social security costs 5.1 5.0
Defined contribution pension scheme 0.4 0.4
Share-based payments(1) 6.5 5.0
Other employment costs 0.9 0.9
Total 46.2 40.2
(1) To conform to the current year presentation, the share-based payments
has been shown as a separate line and this is a reallocation from wages and
salaries for the year ended 31 March 2024.
All employees are employed directly by one of the following Group subsidiary
companies: Sirius Facilities GmbH, 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 year was 459 (2024: 428), expressed in
full-time equivalents. In addition, as at 31 March 2025, the Board of
Directors consists of six Non-Executive Directors (2024: six) and two
Executive Directors (2024: two).
8. Equity-settled share-based payments
LTIP
The LTIP is for the benefit of the Executive Directors and the Senior
Management Team. 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 adjusted net
asset value per share ("TNR") (two-thirds of award) and relative total
shareholder return ("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 during the
current and prior reporting periods:
June 2023 September 2023 July 2024
grant
grant
grant
TNR TSR TNR TSR TNR TSR
Valuation methodology Black- Monte- Black- Monte- Black- Monte-
Scholes Carlo Scholes Carlo Scholes Carlo
Calculation for 2/3 ordinary 1/3 ordinary 2/3 ordinary 1/3 ordinary 2/3 ordinary award 1/3 ordinary award
award award award award
Total charge for the award - €m 2.9 0.8 6.6
Expected lapse rate 0% 0% 0% 0% 0% 0%
Share price at grant date - € 1.04 1.04 1.03 1.03 1.13 1.13
Exercise price - € nil nil nil nil nil nil
Expected volatility - %(1) 32.7 32.7 31.4 31.4 30.5 30.5
Expected life - years 2.97 2.97 2.68 2.68 2.82 2.82
Performance projection period - years 2.81 2.81 2.52 2.52 2.55 2.55
Expected dividend yield - % 5.52 5.52 5.47 5.47 nil (5) nil (5)
Risk-free rate based on European treasury bonds rate of return - % 2.65 p.a. 2.65 p.a. 3.05 p.a. 3.05 p.a. 2.53 p.a. 2.53 p.a.
Fair value per share - € 0.88 (2) 0.59 (3) 0.89 (2) 0.71 (3) 1.13(2), (6) 0.62(3), (6)
Weighted average fair value of share - €(4) 0.77 0.83 0.96
Number of share awards granted 2,462,171 1,231,086 604,001 302,001 4,598,315 2,299,158
(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).
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:
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 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 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 projection period - years 2.81 2.81 2.81 2.81 2.57 2.57
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 share awards granted 1,333,333 666,667 333,333 166,667 426,667 213,333
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- Monte-
Scholes 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 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 projection period - years 2.55 2.55 2.55 2.55 0.55 0.55
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 share awards granted 2,569,333 1,284,667 1,573,833 786,917 320,000 160,000
(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.
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 as disclosed in the
Annual Report in the Remuneration report. 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.
Share-based payments expense
The following table analyses the total share-based payments expense recognised
in the consolidated income statement between each plan:
Year ended Year ended
31 March 2025 31 March 2024
€m €m
LTIP 3.2 2.5
SIP 2.4 1.5
DBP 0.9 1.0
Total 6.5 5.0
An amount of €6.5m (2024: €5.0m) is recognised in other reserves as per
the consolidated statement of changes in equity. In addition, an amount of
€3.8m (2024: €2.2m) has been paid for participants' tax liabilities in
relation to share-based payment plans.
Number of share awards and vesting
Movements in the number of awards outstanding are as follows:
Year ended Year ended
31 March 2025 31 March 2024
Number of Number of
share awards share awards
Balance outstanding as at the beginning of the year (nil exercisable) 19,260,260 14,478,647
Maximum granted during the year 14,505,055 9,410,131
Forfeited during the year (861,044) (1,218,500)
Exercised during the year (3,531,554) (2,059,541)
Shares surrendered to cover employee tax obligations (2,835,123) (1,350,477)
Expired during the year (1,395,387) -
Balance outstanding as at year end (nil exercisable) 25,142,207 19,260,260
The weighted average remaining contractual life for the share awards
outstanding as at year end was 1.43 years (2024: 1.42 years). The exercise
price for share awards exercised during the reporting period and outstanding
as at year end was €nil (2024: €nil).
The following table details the vesting of share awards between each plan:
Year ended Year ended
31 March 2025 31 March 2024
LTIP SIP DBP Total LTIP SIP DBP Total
Shares exercised 1,482,979 1,792,827 255,748 3,531,554 1,859,000 - 200,541 2,059,541
Weighted average share price - € 1.18 1.13 1.18 1.15 1.02 - 1.02 1.02
Shares surrendered to cover employee tax obligations 1,291,178 1,321,479 222,466 2,835,123 1,241,000 - 109,477 1,350,477
Amount paid for the participants' tax liabilities - €m 1.6 1.9 0.3 3.8 2.1 - 0.1 2.2
9. Finance income, finance expense and change in fair value of derivative
financial instruments
Year ended Year ended
31 March 2025 31 March 2024
€m €m
Bank interest income 11.7 4.4
Finance income from associates 2.2 2.2
Finance income 13.9 6.6
Bank loan interest expense (23.5) (15.9)
Interest expense related to lease liabilities (see note 16) (1.1) (1.1)
Amortisation of capitalised finance costs (3.3) (3.5)
Total interest expense (27.9) (20.5)
Bank charges (0.3) (0.3)
Other finance costs (0.3) (0.3)
Finance expense (28.2) (20.8)
Change in fair value of derivative financial instruments - (1.3)
Net finance expense (14.3) (15.5)
10. Taxation
Consolidated income statement
Year ended Year ended
31 March 2025 31 March 2024
€m €m
Current income tax
Current income tax charge (5.8) (3.7)
Current income tax charge relating to disposals of investment properties - (1.0)
Adjustments in respect of prior periods (1.0) (0.1)
Total current income tax (6.8) (4.8)
Deferred tax
Relating to origination and reversal of temporary differences (20.7) (2.5)
Relating to recognition of deferred tax assets on tax losses 4.1 -
Total deferred tax (16.6) (2.5)
Income tax charge reported in the income statement (23.4) (7.3)
The German corporation tax rate of 15.825% is used in the tax reconciliation
for the Group. Taxation for other jurisdictions is calculated at the rates
prevailing in each jurisdiction.
The reconciliation of the effective tax rate is explained below:
Year ended Year ended
31 March 2025 31 March 2024
€m €m
Profit before tax 201.6 115.2
Current tax using the German corporation tax rate of 15.825% (2024: 15.825%) 31.9 18.2
Effects of:
Deductible interest on internal financing(1) (4.9) (5.3)
Tax exempt (gain)/loss from selling of investments and dividends(2) (0.4) 0.2
Non-deductible expenses(3) 1.0 0.5
Change in unrecognised deferred tax - tax effect of utilisation of tax losses (3.8) (8.5)
not previously recognised(4)
Adjustments in respect of prior periods 1.0 0.1
German trade tax 0.6 0.2
Tax exempt income under REIT regime(5) (6.0) 1.8
Difference in foreign tax rates(6) 4.0 0.1
Total income tax charge in the income statement 23.4 7.3
(1) Deductible interest on internal financing relates to the tax effect
for the group regarding the intra-group financing, specifically to the
interest expense treated as tax-deductible in Germany and the interest income
treated as taxable in Cyprus.
(2) The dividend income received by the Group is tax exempt. In the prior
year, tax has been due on a restructuring within the Group.
(3) Non-deductible expenses include inter alia adviser and corporate fees
as well as depreciation.
(4) Going forward, the Group expects income from residual business
activities which are not exempt under the REIT regime. It has therefore
recognised a deferred tax asset on available tax losses in the UK. Due to
adjustments of available tax losses in course of tax audits, the amount of
unrecognised tax losses has decreased within the financial year.
(5) The income from property rental business and profits from disposal of
assets generated by BizSpace Group are exempt from UK tax due to the UK REIT
regime.
(6) As the UK corporation tax rate at 31 March 2025 was 25% (2024: 25%),
this item shows the difference between this rate and the German corporation
tax rate of 15.825% used in the above reconciliation.
Deferred tax assets and liabilities
Recognised deferred tax assets and liabilities are attributable to the
following:
Consolidated statement Consolidated
of financial position
income statement
31 March 2025 31 March 2024 Year ended Year ended
€m €m 31 March 2025 31 March 2024
€m €m
Revaluation of owned investment property (126.7) (107.3) (19.4) (7.8)
Lease incentives (0.7) (0.7) (0.0) 0.0
Fixed asset temporary differences 0.1 (0.0) 0.1 0.1
Effects of derivative financial instruments - - - 0.2
Lease liabilities resulting from IFRS 16 3.3 3.6 (0.3) (0.3)
Right of use assets in accordance to IFRS 16 (3.0) (3.4) 0.4 0.4
Recognised tax losses offset against temporary differences 23.6 25.1 (1.4) 4.9
Losses available for offsetting against future taxable income 4.1 - 4.0 -
Deferred tax expense (16.6) (2.5)
Net deferred tax liabilities (99.3) (82.7)
Reflected in the consolidated statement of financial position:
Deferred tax assets 4.1 -
Deferred tax liabilities (103.4) (82.7)
Within the current year a deferred tax asset of €4.1m on available tax
losses has been recognised in regard to the UK business. The Group expects
profits within future periods which do not benefit from the REIT exemptions
and will be set off against the available carried forward losses.
The Group has not recognised a deferred tax asset on €104.8m (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
(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
31 March 2025 31 March 2024 31 March 2025 31 March 2024 31 March 2025 31 March 2024
€m €m €m €m €m €m
UK 4.1 - - - 4.1 -
Germany 27.0 28.7 (130.4) (111.4) (103.4) (82.7)
Cyprus - - - - - -
Deferred tax assets/(liabilities) 31.1 28.7 (130.4) (111.4) (99.3) (82.7)
The deferred tax asset in Germany refers to the available tax losses which are
set off against temporary differences and therefore reduce the deferred tax
charge and future taxable charges.
Current tax assets and liabilities
The following is the analysis of the current tax balances (after offset) by
jurisdiction:
Assets Liabilities Net
31 March 2025 31 March 2024 31 March 2025 31 March 2024 31 March 2025 31 March 2024
€m €m €m €m €m €m
UK - - (1.1) - (1.1) -
Germany - - (5.4) (6.5) (5.4) (6.5)
Cyprus - - (0.5) (0.5) (0.5) (0.5)
Current tax liabilities - - (7.0) (7.0) (7.0) (7.0)
11. Earnings per share
The calculations of the basic, diluted, EPRA and headline earnings per share
are based on the following data:
Year ended Year ended
31 March 2025 31 March 2024
€m €m
Earnings attributable to the owners of the Company
Basic earnings 178.1 107.8
Diluted earnings 178.1 107.8
EPRA earnings 117.7 101.1
Diluted EPRA earnings 117.7 101.1
Headline earnings 117.7 100.0
Diluted headline earnings 117.7 100.0
Number of shares
Weighted average number of ordinary shares for the purpose of basic, EPRA and 1,460,013,616 1,231,991,541
headline earnings per share
Weighted average effect of grant of share awards 22,132,071 17,508,879
Weighted average number of ordinary shares for the purpose of diluted 1,482,145,687 1,249,500,420
earnings, diluted EPRA earnings and diluted headline earnings per share
Earnings per share
Basic earnings per share 12.20c 8.75c
Diluted earnings per share 12.02c 8.63c
EPRA earnings per share 8.06c 8.21c
Diluted EPRA earnings per share 7.94c 8.10c
Headline earnings per share 8.06c 8.12c
Diluted headline earnings per share 7.94c 8.01c
For the calculation of basic, headline, EPRA and diluted earnings per share
the number of shares does not include 7,743,647 own shares held (2024:
7,292,222 shares), which are held by an Employee Benefit Trust on behalf of
the Group.
EPRA earnings
Year ended Year ended
31 March 2025 31 March 2024
€m €m
Basic and diluted earnings attributable to owners of the Company 178.1 107.8
Deduct gain on revaluation of investment properties (79.4) (12.2)
(Deduct gain)/add loss on disposal of properties (net of related tax) (1.6) 0.1
Change in fair value of derivative financial instruments - 1.3
Deferred tax in respect of EPRA earnings adjustments 20.6 2.5
NCI relating to revaluation (net of related tax) 0.1 0.0
NCI relating to gain on disposal of properties (net of related tax) 0.0 0.0
(Deduct gain)/add loss on revaluation of investment property from associates (0.8) 1.6
Tax in relation to the revaluation gains/losses on investment property from 0.7 (0.0)
associates
EPRA earnings 117.7 101.1
For more information on EPRA earnings refer to Annex 1.
Headline earnings
The following table shows the reconciliation of basic to headline earnings,
separately disclosing the impact before tax (gross column) and after tax (net
column):
Year ended Year ended
31 March 2025 31 March 2024
Gross Net Gross Net
€m €m €m €m
Basic and dilute earnings attributable to owners of the Company 178.1 107.8
Deduct gain on revaluation of investment properties (79.4) (58.8) (12.2) (9.5)
(Deduct gain)/add loss on disposal of properties (1.6) (1.6) (0.9) 0.1
NCI relating to revaluation 0.1 0.1 0.0 0.0
NCI relating to gain on disposal of properties 0.0 0.0 0.0 0.0
(Deduct gain)/add loss on revaluation of investment property from associates (0.8) (0.1) 1.6 1.6
Headline earnings 117.7 100.0
12. Net asset value per share
31 March 2025 31 March 2024
€m €m
Net asset value
Net asset value for the purpose of assets per share (total equity attributable 1,688.9 1,407.3
to the owners of the Company)
Net deferred tax liabilities (see note 10) 99.3 82.7
Adjusted net asset value attributable to the owners of the Company 1,788.2 1,490.0
Number of shares
Number of ordinary shares for the purpose of net asset value per share and 1,504,113,743 1,340,848,147
adjusted net asset value per share
Effect of grant of share awards 25,142,207 19,260,260
Number of ordinary shares for the purpose of EPRA NRV, NTA and NDV per share 1,529,255,950 1,360,108,407
Net asset value per share 112.29c 104.96c
Adjusted net asset value per share 118.89c 111.12c
The number of shares does not include 7,743,647 shares own shares held (2024:
7,292,222 shares), which are held by an Employee Benefit Trust on behalf of
the Group.
31 March 2025 EPRA NRV EPRA NTA EPRA NDV
€m €m €m
Net asset value as at year end (basic) 1,688.9 1,688.9 1,688.9
Diluted net asset value at fair value 1,688.9 1,688.9 1,688.9
Group
Derivative financial instruments at fair value - - n/a
Deferred tax in respect of fair value movements on investment properties 103.3 103.3(1) n/a
Intangible assets as per note 15 n/a (1.7) n/a
Fair value of fixed interest rate debt n/a n/a 86.4
Real estate transfer tax 191.2 n/a n/a
Investment in associates
Deferred tax in respect of fair value movements on investment properties 8.0 8.0(1) n/a
Fair value of fixed interest rate debt n/a n/a 3.3
Real estate transfer tax 9.6 n/a n/a
Total EPRA NRV, NTA and NDV 2,001.0 1,798.5 1,778.6
EPRA NRV, NTA and NDV per share 130.85c 117.61c 116.31c
31 March 2024 EPRA NRV EPRA NTA EPRA NDV
€m €m €m
Net asset value as at year 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
Derivative financial instruments at fair value - - n/a
Deferred tax in respect of fair value movements on investment properties 82.7 82.7 (1) n/a
Intangible assets as per note 15 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 associates
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 year 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.
13. Investment properties
The movement in the book value of investment properties is as follows:
31 March 2025 31 March 2024
€m €m
Total investment properties at book value as at the beginning of the year 2,210.6 2,123.0
Owned investment properties movements
Additions 148.5 74.1
Capital expenditure 51.9 37.7
Disposals (14.3) (48.9)
Gain on revaluation 81.0 12.4
Adjustment in respect of lease incentives (0.3) 0.7
Other movements
Adjustment in respect of long-term leasehold liabilities (1.3) (0.9)
Foreign exchange differences 12.0 12.5
Total investment properties at book value as at year end(1) 2,488.1 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 consolidated statement of financial position is
as follows:
31 March 2025 31 March 2024
€m €m
Owned investment properties at market value per valuer's report(1) 2,469.4 2,190.6
Adjustment in respect of lease incentives (4.2) (3.9)
Adjustment in respect of long-term leasehold liabilities 22.9 23.9
Total investment properties at book value as at year end(1) 2,488.1 2,210.6
(1) Excluding assets held for sale when applicable.
The reconciliation of loss or gain on revaluation as per the consolidated
income statement is as follows:
Year ended Year ended
31 March 2025 31 March 2024
€m €m
Gain on revaluation of owned investment properties 81.0 12.4
Adjustment in respect of lease incentives (0.3) 0.7
Adjustment in respect of long-term leasehold liabilities (1.3) (0.9)
Gain on revaluation of investment properties 79.4 12.2
Included in the loss or gain on revaluation of investment properties are gross
gains of €130.2m and gross losses of €50.8m (2024: gross gains of €76.4m
and gross losses of €64.2m).
Other than the capital commitments disclosed in note 30, 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 current or prior period.
Owned investment properties
The fair value (market value) of the Group's owned investment properties as at
year end has been arrived at on the basis of a valuation carried out at that
date by Cushman & Wakefield LLP (2024: Cushman & Wakefield LLP), an
independent valuer accredited by the Royal Institute 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 owned 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 values of these properties are
consistent with the prior period.
The approach to valuation for owned investment properties (including assets
classified as held for sale) is as follows:
• German portfolio
Discounted cash flow model which uses the net operating income and applies a
discount rate for the income period of ten to fourteen years. After ten to
fourteen years, a determining residual value (exit scenario) is calculated,
discounted to present value.
• UK portfolio
A blended approach of a discounted cash flow on the net operating income for a
period, reflecting the all-inclusive leases typically used in these
properties, 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 subject property.
Information on significant unobservable inputs per class of owned investment
property is disclosed below. The Directors have enhanced the disclosures
provided in respect of the significant unobservable inputs to the property
valuations, and the sensitivity information in respect of those inputs, to
better reflect the approach used by the external valuers. The comparative
information has been amended to be consistent with the information provided
the current period. In addition to this, the Directors have included the
weighted average on each significant unobservable input to provide further
useful information in the financial statements. There is no impact on the
property valuation presented in the financial statements in either period.
Market Market rental rate Discount factor Capitalisation factor Market growth
value per sqm % % % p.a.
€m €
31 March 2025 Low High Weighted average Low High Weighted average Low High Weighted average Low High Weighted average
Traditional business parks
Mature 445.9 2.84 8.83 6.45 4.5 6.9 5.0 5.1 7.6 5.8 1.0 1.0 1.0
Value add 661.7 4.07 8.28 5.64 4.5 7.1 5.9 5.5 7.8 6.7 1.0 1.0 1.0
Total traditional business parks 1,107.6 2.84 8.83 5.90 4.5 7.1 5.5 5.1 7.8 6.3 1.0 1.0 1.0
Modern business parks
Mature 209.7 4.65 10.61 8.17 4.4 5.1 4.5 5.1 6.5 5.4 1.0 1.0 1.0
Value add 291.7 4.53 9.06 6.87 5.0 6.6 5.7 5.4 7.8 6.5 1.0 1.0 1.0
Total modern business parks 501.4 4.53 10.61 7.29 4.4 6.6 5.2 5.1 7.8 6.1 1.0 1.0 1.0
Office
Mature 65.3 9.01 11.51 10.47 4.9 5.0 4.9 5.5 6.0 5.8 1.0 1.0 1.0
Value add 220.6 6.73 12.21 8.58 5.1 7.0 5.9 5.9 7.4 6.4 1.0 1.0 1.0
Total office 285.9 6.73 12.21 8.90 4.9 7.0 5.7 5.5 7.4 6.3 1.0 1.0 1.0
Total Germany 1,894.9 2.84 12.21 6.56 4.4 7.1 5.5 5.1 7.8 6.2 1.0 1.0 1.0
Market Market rental rate Equivalent yield
value per sqm %
€m €
31 March 2025 Low High Weighted average Low High Weighted average
Total mixed-use schemes 224.7 3.68 49.03 8.72 5.9 12.9 9.0
Total office 136.8 9.12 37.35 18.87 9.0 12.9 10.6
Total industrial 213.1 4.69 26.84 7.11 6.3 11.4 8.7
Total UK 574.6 3.68 49.03 9.30 5.9 12.9 9.3
31 March 2024 Market Market rental rate Discount factor Capitalisation factor Market growth
value per sqm % % % p.a.
€m €
Low High Weighted average Low High Weighted average Low High Weighted average Low High Weighted average
Traditional business parks
Mature 392.4 2.75 7.99 6.07 4.4 7.1 4.9 5.2 7.8 5.8 1.0 1.0 1.0
Value add 572.0 3.85 7.82 5.33 4.5 7.3 5.9 5.5 7.8 6.6 1.0 1.0 1.0
Total traditional business parks 964.4 2.75 7.99 5.57 4.4 7.3 5.5 5.2 7.8 6.3 1.0 1.0 1.0
Modern business parks
Mature 230.6 4.30 10.35 7.76 4.3 5.4 4.6 5.1 6.4 5.4 1.0 1.0 1.0
Value add 258.5 4.22 8.65 6.49 5.3 6.8 6.0 6.1 7.8 6.7 1.0 1.0 1.0
Total modern business parks 489.1 4.22 10.35 6.95 4.3 6.8 5.3 5.1 7.8 6.1 1.0 1.0 1.0
Office
Mature 46.9 9.66 11.14 10.81 4.9 4.9 4.9 5.6 5.6 5.6 1.0 1.0 1.0
Value add 228.6 6.60 12.20 8.40 5.3 7.1 5.9 5.9 7.4 6.4 1.0 1.0 1.0
Total office 275.5 6.60 12.20 8.68 4.9 7.1 5.7 5.6 7.4 6.3 1.0 1.0 1.0
Total Germany 1,729.0 2.75 12.20 6.56 4.3 7.3 5.5 5.1 7.8 6.2 1.0 1.0 1.0
31 March 2024 Market Market rental rate Equivalent yield
value per sqm %
€m €
Low High Weighted average Low High Weighted average
Total mixed-use schemes 153.2 5.69 47.89 15.68 5.9 11.9 9.1
Total office 136.5 8.16 26.23 16.84 9.0 12.9 10.3
Total industrial 171.9 3.40 14.14 6.54 6.1 11.0 8.4
Total UK 461.6 3.40 47.89 10.75 5.9 12.9 9.3
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:
31 March 2025 Market Change of 5% Change of 0.25% Change of 0.25% Change of 0.5%
value in market rental rates in discount factor in capitalisation factor in market growth p.a.
€m €m €m €m €m
Increase Decrease Increase Decrease Increase Decrease Increase Decrease
Total traditional business parks 1,107.6 54.1 (54.6) (21.6) 21.7 (25.6) 27.4 31.9 (31.7)
Total modern business parks 501.4 22.9 (23.1) (9.9) 9.9 (11.9) 12.9 15.3 (14.9)
Total office 285.9 14.4 (14.6) (5.7) 5.9 (6.7) 7.1 9.4 (8.9)
Market value Germany 1,894.9 91.4 (92.3) (37.2) 37.5 (44.2) 47.4 56.6 (55.5)
31 March 2025 Market Change of 5% Change of 0.5%
value in market rental rates in equivalent yield
€m €m €m
Increase Decrease Increase Decrease
Total mixed-use schemes 224.7 9.1 (8.8) (13.0) 12.4
Total office 136.8 4.3 (4.0) (5.5) 6.3
Total industrial 213.1 8.4 (8.3) (12.9) 12.2
Market value UK 574.6 21.8 (21.1) (31.4) 30.9
31 March 2024 Market Change of 5% Change of 0.25% Change of 0.25% Change of 0.5%
value in market rental rates in discount factor in capitalisation factor in market growth p.a.
€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 (22.5) 24.2 29.7 (29.1)
Total modern business parks 489.1 23.2 (23.3) (9.7) 9.8 (11.5) 12.5 14.9 (14.7)
Total office 275.5 13.7 (14.1) (5.3) 5.6 (6.2) 6.8 8.6 (8.3)
Market value Germany 1,729.0 84.9 (85.1) (33.8) 34.5 (40.2) 43.5 53.2 (52.1)
31 March 2024 Market Change of 5% Change of 0.5%
value in market rental rates in equivalent yield
€m €m €m
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
The weighted average lease expiry remaining across the owned portfolio in
Germany as at year end was 2.7 years (2024: 2.7 years). The weighted average
lease expiry remaining across the owned portfolio in the UK as at year end was
1.4 years (2024: 1.17 years). Licence agreements in the UK are rolling and are
included in the valuation.
14. Plant and equipment
Plant and Fixtures Total
equipment and fittings €m
€m €m
Cost
As at 31 March 2024 3.9 11.0 14.9
Additions in year 12.0 0.3 12.3
Disposals in year (0.1) (0.4) (0.5)
Foreign exchange differences 0.2 0.1 0.3
As at 31 March 2025 16.0 11.0 27.0
Depreciation
As at 31 March 2024 (1.4) (5.7) (7.1)
Charge for year (1.4) (1.0) (2.4)
Disposals in year 0.1 0.3 0.4
Foreign exchange differences (0.1) - 0.1
As at 31 March 2025 (2.8) (6.4) (9.2)
Net book value as at 31 March 2025 13.2 4.6 17.8
Cost
As at 31 March 2023 2.7 10.1 12.8
Additions in year 1.3 1.0 2.3
Disposals in year (0.2) (0.2) (0.4)
Foreign exchange differences 0.1 0.1 0.2
As at 31 March 2024 3.9 11.0 14.9
Depreciation
As at 31 March 2023 (1.0) (4.6) (5.6)
Charge for year (0.7) (1.1) (1.8)
Disposals in year 0.1 0.1 0.2
Foreign exchange differences 0.2 (0.1) 0.1
As at 31 March 2024 (1.4) (5.7) (7.1)
Net book value as at 31 March 2024 2.5 5.3 7.8
15. Intangible assets
Software and Total
licences with €m
definite useful life
€m
Cost
As at 31 March 2024 12.3 12.3
Additions in year 0.9 0.9
Disposals in year (1.2) (1.2)
Foreign exchange differences 0.0 0.0
As at 31 March 2025 12.0 12.0
Amortisation
As at 31 March 2024 (9.0) (9.0)
Charge for year (1.3) (1.3)
Disposals in year - -
Foreign exchange differences (0.0) (0.0)
As at 31 March 2025 (10.3) (10.3)
Net book value as at 31 March 2025(1) 1.7 1.7
Cost
As at 31 March 2023 11.6 11.6
Additions in year 0.8 0.8
Disposals in year - -
Foreign exchange differences (0.1) (0.1)
As at 31 March 2024 12.3 12.3
Amortisation
As at 31 March 2023 (7.5) (7.5)
Charge for year (1.5) (1.5)
Disposals in year - -
Foreign exchange differences 0.0 0.0
As at 31 March 2024 (9.0) (9.0)
Net book value as at 31 March 2024(1) 3.3 3.3
(1) Included in the net book value is an amount of €0.6m relating to
intangible assets under development not yet amortised (2024: €1.3m). All
other development projects are expected to finalise in the next financial
year.
16. Right of use assets and lease liabilities
Set out below are the carrying amounts of right of use assets (excluding those
classified under investment properties) recognised and the movements during
the year:
Office Total
€m €m
As at 31 March 2023 14.4 14.4
Depreciation expense (1.8) (1.8)
Foreign exchange differences 0.0 0.0
As at 31 March 2024 12.6 12.6
Depreciation expense (1.8) (1.8)
Foreign exchange differences 0.0 0.0
As at 31 March 2025 10.8 10.8
Set out below are the carrying amounts of lease liabilities and the movements
during the year:
31 March 2025 31 March 2024
€m €m
Balance as at the beginning of the year (37.8) (39.6)
Accretion of interest (1.1) (1.1)
Lease modifications (0.1) -
Payments 3.4 3.3
Foreign exchange differences (0.4) (0.4)
Total (36.0) (37.8)
Current lease liabilities as at year end (2.4) (2.3)
Non-current lease liabilities as at year end (33.6) (35.5)
The following table sets out the carrying amount, by maturity, of the Group's
lease liabilities:
31 March 2025 Within 1 year 1-5 years 5+ years Total
€m €m €m €m
Long-term leasehold(1) (0.4) (1.9) (20.6) (22.9)
Office (2.0) (7.5) (3.6) (13.1)
Total (2.4) (9.4) (24.2) (36.0)
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 (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.
Maturity analysis of lease liabilities using contractual undiscounted payments
is disclosed in note 23.
The overall weighted average discount rate used for the year is 2.9% (2024:
2.8%).
During the year expenses paid for leases of low-value assets and short-term
leases which are recognised straight-line over the lease term (included in
administrative expenses) amounted to €0.7m (2024: €0.5m).
In addition to leases of low-value assets and payments resulting from
short-term leases that are included in the cash flow from operating
activities, interest payments and repayments of lease liabilities totalling
€3.4m (2024: €3.3m) were incurred for the year and are included in the
cash flow from financing activities.
17. Other financial assets (non-current)
31 March 2025 31 March 2024
€m €m
Deposits 4.0 4.0
Loans to associates 45.1 45.1
Balance as at year 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, current financial position of the
borrower, forward-looking budgets and forecasts. Based on the assessment the
expected credit loss was immaterial.
18. 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 of the associates.
The following table illustrates the summarised financial information of the
Group's investment in associates:
31 March 2025 31 March 2024
€m €m
Current assets 31.0 29.7
Non-current assets(1) 364.6 360.7
Current liabilities (24.0) (24.9)
Non-current liabilities (302.0) (298.7)
Equity 69.6 66.8
Unrecognised accumulated losses 5.0 5.3
Subtotal 74.6 72.1
Group's share in equity - 35% 26.1 25.2
(1) Non-current assets are only investment properties. These are valued
using the same methodology as the German owned investment properties as stated
in note 13.
Year ended Year ended
31 March 2025 31 March 2024
€m €m
Net operating income 24.8 21.7
Loss on revaluation of investment properties (0.4) (7.0)
Administrative expense (5.0) (3.8)
Operating profit 19.4 10.9
Net finance expense (8.6) (8.7)
Profit before tax 10.8 2.2
Taxation (3.7) (0.6)
Unrecognised loss (0.3) 0.2
Total profit and comprehensive income for the year after tax 6.8 1.8
Group's share of profit for the year - 35% 2.4 0.6
Included within the non-current liabilities are shareholder loans amounting to
€128.8m (2024: €128.8m). As at year end no contingent liabilities existed
(2024: none). The associates had contracted capital expenditure for
development and enhancements of €1.5m as at year end (2024: €3.0m).
The following table illustrates the movement in investment in associates:
31 March 2025 31 March 2024
€m €m
Balance as at the beginning of the year 25.2 26.7
Dividend received (1.5) (2.1)
Share of profit 2.4 0.6
Balance as at year end 26.1 25.2
19. Trade and other receivables
31 March 2025 31 March 2024
€m €m
Gross trade receivables 20.3 20.7
Expected credit loss provision (8.1) (7.8)
Net trade receivables 12.2 12.9
Other receivables 17.2 20.6
Prepayments 40.8 8.9
Balance as at year end 70.2 42.4
Other receivables include primarily accrued income of €3.9m (2024: €4.5m),
lease incentives of €4.2m (2024: €3.9m) and accrued income from associates
of €6.6m (2024: €3.7m). Based on the assessment the expected credit loss
was immaterial for other receivables. In the prior year there was a receivable
regarding the Stoke disposal of €3.5m included in other receivables.
Included in prepayments of €40.8m, there were €38.5m prepayments relating
to the acquisitions of new sites in Maintal, Germany (€0.7m), München,
Germany (€13.3m), Reinsberg, Germany (€19.7m) and Southampton, UK (€4.8m
(£4.1m)). In the prior year, there were €7.1m prepayments for acquisition
costs.
20. Cash and cash equivalents
31 March 2025 31 March 2024
€m €m
Cash at bank 68.4 125.3
Short-term investments 502.9 89.2
Cash restricted under contractual terms:
- Deposit for bank guarantees 3.1 3.0
- Deposits received from tenants 30.4 26.7
Balance as at year end 604.8 244.2
Cash at bank earns interest at floating rates based on daily bank deposit
rates.
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.
21. Trade and other payables
31 March 2025 31 March 2024
€m €m
Trade payables 13.3 14.6
Accrued expenses 39.2 43.9
Provisions 4.0 3.1
Interest and amortisation payable 8.2 6.2
Tenant deposits 30.2 26.8
Unearned revenue 15.2 11.5
Other payables 7.6 8.6
Balance as at year end 117.7 114.7
The Group has recognised a provision of €4.0m (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 €0.9m as at 31 March 2025 including a reclassification of
€0.3m from accrued expenses. 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 contract liabilities representing service charge
amounts of €2.3m (2024: €2.5m). Service charge income is only recognised
as income when the performance obligations are met. All unearned revenue of
the prior year was recognised as revenue in the current year.
Included within other payables are credit balances due to tenants in relation
to over collections of service charge in amount of €2.2m (2024: €4.7m).
The following table breaks down the balance of accrued expenses:
31 March 2025 31 March 2024
€m €m
Costs relating to service charge 18.1 23.2
Bonuses 8.6 6.8
Administrative costs 2.1 5.4
Capital expenditure(1) 7.8 4.7
Other costs(1) 2.6 3.8
Total 39.2 43.9
(1) To conform to the current year presentation, capital expenditure has
been shown as a separate line, this is a reallocation from other costs for the
year ended 31 March 2024. Other costs now includes costs relating to
non-recurring projects for the year ended 31 March 2024.
22. Interest-bearing loans and borrowings
Interest rate Loan maturity date 31 March 2025 31 March 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 - 13.5
- fixed rate facility 3.264(1) 30 October 2041 0.6 -
Deutsche Pfandbriefbank AG
- fixed rate facility 4.25 31 December 2030 1.3 1.3
Schuldschein
- floating rate facility Floating(2) 6 January 2025 - 5.0
- fixed rate facility 1.70 3 March 2025 - 10.0
Capitalised finance charges on all loans (4.2) (2.8)
0.4 29.6
Non-current
Berlin Hyp AG
- fixed rate facility 4.26 31 October 2030 163.5 166.3
Saarbrücken Sparkasse
- fixed rate facility 3.264(1) 30 October 2041 12.1 -
Deutsche Pfandbriefbank AG
- fixed rate facility 4.25 31 December 2030 55.4 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
Corporate bond III
- fixed rate 4.00 22 January 2032 350.0 -
Capitalised finance charges on all loans (22.3) (7.5)
1,318.6 915.5
Total 1,319.0 945.1
(1) This facility has a fixed rate of 3.264% until 28 February 2030 at
which point a new interest rate can be negotiated.
(2) This unsecured facility had a floating rate of 1.70% over six month
EURIBOR (not less than 0%).
The movement of loans and borrowings for the year comprised of €19.8m
repayment of loans, €409.9m loan drawdowns and €16.2m net movement of
capitalisation of finance charges being €19.5m new capitalised finance
charges and €3.3m amortisation of finance charges (2024: €248.1m,
€228.3m and €0.4m respectively).
The borrowings (excluding capitalised loan issue cost) are repayable as
follows:
31 March 2025 31 March 2024
€m €m
On demand or within one year 4.6 32.4
In the second year 404.7 4.0
In the third to tenth years inclusive 936.2 919.0
Total 1,345.5 955.4
The Group has pledged 15 (2024: 15) investment properties to secure several
separate interest-bearing debt facilities granted to the Group. The 15 (2024:
15) properties had a combined valuation of €560.7m as at year end (2024:
€528.3m).
Group debt covenants
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 year, 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 year end.
Refer to note 2(c) 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. Amortisation is 1.5% per annum with the remainder due in six
years. This facility is secured over nine property assets. No changes to the
terms of the facility have occurred during the year ended 31 March 2025.
Saarbrücken Sparkasse
On 28 March 2018, the Group agreed to a facility agreement with Saarbrücken
Sparkasse for €18.0m. The loan terminated on 28 February 2025. Amortisation
was 4.0% per annum with the remainder due in one instalment on the final
maturity date. The facility was charged at a fixed interest rate of 1.53%. The
facility was secured over one property asset. The facility was repaid in full
during the year.
On 1 March 2025, the Group concluded an agreement with Saarbrücken Sparkasse
to refinance the existing facility with a new facility which amounts to
€12.7m. The new facility is a separate financial instrument to the existing
facility. Amortisation is 4.0% per annum with the remainder due in one
instalment on the final maturity date. The facility is secured over one
property asset.
Deutsche Pfandbriefbank AG
On 1 January 2024, the Group agreed to a facility agreement with Deutsche
Pfandbriefbank AG for €58.3m. Amortisation is 2.1% per annum with the
remainder due in one instalment on the final maturity date. This facility is
secured over five property assets.
Schuldschein
On 2 December 2019, the Group agreed to new loan facilities in the form of
unsecured Schuldschein for €20.0m. On 25 February 2020, the Group agreed new
loan facilities in the form of unsecured Schuldschein for €30.0m. In total
the unsecured facility amounted to €50.0m spread over five tranches and was
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 year 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. The remaining facility was repaid in
full during the year.
Corporate bond I
On 22 June 2021, the Group raised its inaugural corporate bond for €400.0m.
The bond, which is listed at the Luxembourg Stock Exchange, has a term of five
years, with the principal balance coming due on 22 June 2026. No changes to
the terms of the facility have occurred during the year ended 31 March 2025.
Corporate bond II
On 24 November 2021, the Group issued its second corporate bond for €300.0m.
The bond, which is listed at the Luxembourg Stock Exchange, has a term of
seven years with the principal balance coming 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.
Corporate bond III
On 22 January 2025, the Group issued its third corporate bond for €350.0m.
The bond, which is listed at the Luxembourg Stock Exchange, has a term of
seven years, with the principal balance coming due on 22 January 2032.
23. Financial instruments
Risk management
The Group's principal financial liabilities comprise bank loans and trade
payables. The Group has various financial assets, i.e. net trade receivables,
other receivables (includes deposits and excludes lease incentives), loans to
associates, and cash and cash equivalents.
The main risks arising from the Group's financial instruments are credit risk,
liquidity risk and market risk.
Credit risk
Credit risk arises when a failure by counterparties to discharge their
obligations could reduce the amount of future cash inflows from financial
assets on hand at the reporting date. The credit risk on liquid funds is
limited because the counterparties are banks with high credit ratings assigned
by international credit rating agencies. The risk management policies employed
by the Group to manage these risks are discussed below.
In the event of a default by an occupational tenant, the Group will suffer a
rental shortfall and incur additional costs, including expenses incurred to
try and recover the defaulted amounts and legal expenses in maintaining,
insuring and marketing the property until it is re-let. During the year, the
Group monitored the tenants in order to anticipate and minimise the impact of
defaults by occupational tenants, as well as to ensure that the Group has a
diversified tenant base. The credit risk on tenants is also addressed through
the performance of credit checks, collection of deposits and regular
communication with the tenants.
Included in loans to associates are loans provided to associate entities from
Group entities. During the year the Group assessed credit risk relating to
loans to associates by reviewing business plans and monitoring cash collection
rates and the operational performance of each associate in order to anticipate
and minimise the impact of any impairment.
Included in other receivables are lease incentives. During the year the Group
monitored tenants in order to anticipate and minimise the impact of defaults
and move-outs from tenants who received lease incentives. The maximum credit
risk exposure for other receivables excludes lease incentives.
The carrying amount of financial assets represents the maximum credit
exposure.
The ageing of trade receivables at the statement of financial position date
was:
31 March 2025 31 March 2024
Gross Impairment Gross Impairment
€m €m €m €m
0-30 days 6.9 (0.9) 8.4 (1.0)
31-120 days (past due) 1.5 (0.3) 1.1 (0.2)
More than 120 days 11.9 (6.9) 11.2 (6.6)
Total 20.3 (8.1) 20.7 (7.8)
The expected credit loss provision account for trade receivables is used to
record impairment losses unless the Group believes that no recovery of the
amount owing is possible; at that point the amounts considered irrecoverable
are written off against the trade receivables directly.
Rental income from tenant leases is generally due one month in advance. The
exception is service charge balancing billing, which is due ten days after it
has been invoiced. Included in the Group's trade receivables are debtors with
carrying amounts of €12.2m (2024: €12.9m) that are outstanding at the
reporting date for which the Group has not provided significant impairment as
there has not been a significant change in credit quality and the amounts are
still considered recoverable.
Liquidity risk
Liquidity risk is the risk that an entity may encounter difficulty in
fulfilling its financial obligations, which require the settlement through
cash payments or the transfer of another financial asset. This risk arises
when the maturities of assets and liabilities are not aligned. While an
unmatched position can enhance profitability, it may also increase the
likelihood of losses. The Group has procedures with the objective of
minimising such losses, such as maintaining sufficient cash and other highly
liquid current assets and having available an adequate amount of committed
credit facilities. The Group prepares cash flow forecasts and continually
monitors its ongoing commitments compared to available cash. Cash and cash
equivalents are placed with financial institutions on a short-term basis which
allows immediate access. This reflects the Group's desire to maintain a high
level of liquidity in order to meet any unexpected liabilities that may arise
due to the current financial position. Similarly, accounts receivable are due
either in advance (e.g. rents and recharges) or within ten days (e.g. service
charge reconciliations), further bolstering the Group's management of
liquidity risk.
The table below summarises the maturity profile of the Group's financial
liabilities, based on contractual undiscounted payments:
31 March 2025 Interest-bearing Trade Lease Total
loans(1) and other liabilities €m
€m payables €m
€m
Undiscounted amounts payable in:
6 months or less (18.4) (59.3) (1.7) (79.4)
6 months-1 year (20.8) - (1.7) (22.5)
1-2 years (435.7) - (3.5) (439.2)
2-5 years (455.2) - (9.6) (464.8)
5-10+ years (593.9) - (92.8) (686.7)
(1,524.0) (59.3) (109.3) (1,692.6)
Interest 178.5 - 73.3 251.8
(1,345.5) (59.3) (36.0) (1,440.8)
31 March 2024 Interest-bearing Trade Lease Total
loans(1) and other liabilities €m
€m payables €m
€m
Undiscounted amounts payable in:
6 months or less (12.3) (56.2) (1.7) (70.2)
6 months-1 year (40.0) - (1.7) (41.7)
1-2 years (23.2) - (3.4) (26.6)
2-5 years (755.0) - (9.9) (764.9)
5-10+ years (220.3) - (93.6) (313.9)
(1,050.8) (56.2) (110.3) (1,217.3)
Interest 95.4 - 72.5 167.9
(955.4) (56.2) (37.8) (1,049.4)
(1) Excludes loan issue costs.
Market risk
The Group is exposed to market risks from changes in foreign currency exchange
rates and changes in interest rates.
(i) Foreign currency risk
The Group's exposure to currency risk relates primarily to the Group's
exposure to the GBP and to a lesser extent the South African rand. This
exposure is driven primarily by the UK operations. In addition thereto, the
Group has dividend obligations in both the GBP and South African rand. The
foreign currency risk in relation to the GBP is mitigated as a result of the
BizSpace Group generating GBP denominated income in order to fund its
obligations when they come due and, in addition, the Group's GBP dividend
obligations. The Group holds small deposits in South African rand for the
purposes of working capital and dividend obligations. Dividends are
distributed semi-annually, minimising foreign currency risk.
(ii) Interest rate risk
The Group's exposure to interest rate risk relates primarily to the Group's
long-term floating rate debt obligations. The Group's policy is to mitigate
interest rate risk by ensuring that a minimum of 80% of its total borrowing is
at fixed or capped interest rates by taking out fixed rate loans or derivative
financial instruments to hedge interest rate exposure, or interest rate caps.
A change in interest will only have an impact on floating rate loans due to
the fact that the other loans have a general fixed interest rate or they are
effectively fixed by a swap. All financial instruments of the Group have fixed
interest rates and thus there is currently no exposure to interest rate risk.
In the previous year, the Group was exposed to an interest rate risk on
€5.0m, associated with the Schuldschein loan, which has now been fully
repaid during the year.
Fair values
Set out below is a comparison by category of carrying amounts and fair values
of all of the Group's financial instruments that are carried in the financial
statements (excluding assets held for sale and liabilities directly associated
with assets held for sale when applicable):
Fair value 31 March 2025 31 March 2024
hierarchy level
Carrying Fair Carrying Fair
amount value amount value
€m €m €m €m
Financial assets
Cash and cash equivalents 604.8 604.8 244.2 244.2
Trade and other receivables(1) 29.2 29.2 33.5 33.5
Loans to associates 2 45.1 45.7 45.1 45.1
Financial liabilities
Trade and other payables 59.3 59.3 56.2 56.2
Interest-bearing loans and borrowings(2)
Floating rate borrowings 2 - - 5.0 5.0
Fixed rate borrowings 2 1,345.5 1,259.7 950.4 835.7
(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 to associates and loans and borrowings have been
calculated based on a discounted cash flow model using the prevailing market
rates of interest as at 31 March 2025.
24. Capital management
For the purpose of the Group's capital management, capital includes all equity
reserves attributable to the equity holders of the Parent. The Group seeks to
enhance shareholder value both by investing in the business so as to improve
the return on investment and by managing the capital structure. The Group
manages its capital structure and in doing so takes into consideration the
impact of changes in economic conditions. The Group assesses its capital
management through the total shareholder accounting return, net loan to value
("LTV") and EPRA LTV as set out in the tables below:
Total shareholder accounting return
31 March 2025 31 March 2024
€ €
Movement in adjusted NAV per share 7.76c 1.91c
Dividend paid per share, six months ended 30 September 3.06c 3.00c
Dividend paid per share, six months ended 31 March 3.05c 2.98c
Total 13.87c 7.89c
Adjusted NAV per share for prior year 111.12c 109.21c
Total shareholder accounting return % 12.5% 7.2%
Net LTV
31 March 2025 31 March 2024
€m €m
Carrying amount of interest-bearing loans and borrowings 1,319.0 945.1
Unamortised borrowing costs 26.5 10.3
Less cash and cash equivalents (not including cash restricted under (571.3) (214.5)
contractual terms)
Total 774.2 740.9
Book value of owned investment properties(1) 2,465.2 2,186.7
Net LTV 31.4% 33.9%
(1) Includes assets held for sale when applicable.
EPRA LTV
Proportionate
consolidation
Group Investment Total
in associates
31 March 2025 €m €m €m
Interest-bearing loans and borrowings(1) 209.1 52.6 261.7
Corporate bonds 1,109.9 - 1,109.9
Net payables(2) 50.5 5.9 56.4
Cash and cash equivalents (604.8) (7.4) (612.2)
Net debt (a) 764.7 51.1 815.8
Investment properties 2,488.1 127.6 2,615.7
Plant and equipment 17.8 - 17.8
Intangible assets 1.7 - 1.7
Loan to associates 45.1 - 45.1
Total property value (b) 2,552.7 127.6 2,680.3
EPRA LTV (a/b) 30.0% 39.9% 30.4%
Proportionate
consolidation
Group Investment Total
in associates
31 March 2024 €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, trade and
other payables and current tax liabilities.
To maintain or adjust the capital structure, the Group may undertake a number
of actions including but not limited to share issuances and changes to its
distribution policy to shareholders. The transfer of amounts recorded in share
capital to other reserves is to increase the equity reserves attributable to
the owners of the Company. The Group's distribution policy takes into account
the concept of solvency under The Companies (Guernsey) Law, 2008. The Group is
not subject to externally imposed capital requirements other than those
related to the covenants of the bank loan facilities. There have been no
breaches of the financial covenants of any interest-bearing loans and
borrowings in the current year (note 2(c)).
25. Issued share capital
Authorised Number Share
of shares capital
€m
Ordinary shares of no par value Unlimited -
As at 31 March 2025 and 31 March 2024 Unlimited -
Issued and fully paid Number Share
of shares capital
€m
As at 31 March 2023 1,168,371,222 -
Issued ordinary shares 172,276,384 164.1
Transfer of share capital to other reserve - (164.1)
Shares issued to Employee Benefit Trust - -
Shares allocated by the Employee Benefit Trust 200,541 -
As at 31 March 2024 1,340,848,147 -
Issued ordinary shares 163,717,021 178.7
Transfer of share capital to other reserve - (178.7)
Shares issued to Employee Benefit Trust (2,500,000) -
Shares allocated by the Employee Benefit Trust 2,048,575 -
As at 31 March 2025 1,504,113,743 -
Holders of the ordinary shares are entitled to receive dividends 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 were €174.6m.
In addition, during the year the Company issued 1,482,979 (2024: 2,431,714)
shares in relation to the exercise of the LTIP as per note 8.
Shares held by the Employee Benefit Trust are disclosed as own shares held.
During the year 2,500,000 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 8. A total of 7,743,647 own shares purchased at an average share
price of €1.0977 are held by the Employee Benefit Trust (2024: 7,292,222 own
shares purchased at an average share price of €1.1108). The total number of
shares with voting rights was 1,511,857,390 (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 reserves.
All shares issued in the year were issued under general authority. No shares
were bought back in the year (2024: none) and there are no Treasury Shares
held directly by the Company at the year end (2024: none).
26. Other and foreign currency translation reserves
Other reserve
This reserve comprises of amounts in relation to scrip dividend transfers from
share capital, share-based payment transactions, equity raises and share
buybacks. The balance of €696.2m in total at year end (2024: €605.7m) is
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 shows the movement in the foreign currency translation
reserve:
31 March 2025 31 March 2024
€m €m
Balance as at the beginning of the year (6.0) (18.9)
Foreign currency translation 13.4 12.9
Balance as at year end 7.4 (6.0)
The movement in the year of €13.4m gain is a result of an increasing GBP/EUR
rate which is higher at current year end compared with 31 March 2024 (2024:
€12.9m gain).
27. Dividends
On 18 November 2024, the Company announced a dividend of 3.06c per share, with
a record date of 13 December 2024 for the UK and South African ("SA")
shareholders and payable on 23 January 2025. On the record date, 1,511,857,390
shares were in issue. Since there were no shares held in treasury,
1,511,857,390 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 €43.2m.
On 3 June 2024, the Company announced a dividend of 3.05c per share, with a
record date of 28 June 2024 for the UK and 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 DRIP to shareholders as an alternative to a cash dividend.
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
year was €178.1m (2024: €122.4m). The Board has authorised a dividend in
respect of the second half of the financial year ended 31 March 2025 of 3.09c
per share representing 72% of FFO, an increase of 1.3% on the equivalent
dividend last year, which represented 69% of FFO. The total dividend for the
year is 6.15c, an increase of 1.7% on the 6.05c total dividend for the year
ended 31 March 2024.
It is expected that, for the dividend authorised relating to the six month
period ended 31 March 2025, the ex-dividend date will be 26 June 2025 for
shareholders on the UK register and 25 June 2025 for shareholders on the SA
register. It is further expected that for shareholders on both registers the
record date will be 27 June 2025 and the dividend will be paid on 24 July
2025. A detailed dividend announcement will be made on 2 June 2025, including
details of a DRIP alternative.
The dividend paid per the statement of changes in equity is the value of the
cash dividend.
The dividend per share was calculated as follows:
Year ended Year ended
31 March 2025 31 March 2024
€m €m
Funds from operations, year ended 31 March(1) 123.2 110.2
Funds from operations, six months ended 30 September 60.7 53.0
Funds from operations, six months ended 31 March 62.5 57.2
Dividend pool, six months ended 30 September 46.0 35.1
Dividend pool, six months ended 31 March(2) 46.4 40.9
Dividend per share, six months ended 30 September 3.06c 3.00c
Dividend per share, six months ended 31 March 3.09c 3.05c
(1) The calculation of funds from operations is shown in note 4.
(2) Calculated as 72% of FFO of 4.28c per share (2024: 4.42c per share
using 69% of FFO) based on average number of shares outstanding of
1,460,013,616 (2024: 1,294,286,020).
For more information on funds from operations, refer to note 4 and Annex 1.
Calculations contained in this table are subject to rounding differences.
28. Notes to cash flow
Changes in liabilities arising from financing activities
Reconciliation of movements of liabilities arising from financing activities:
Changes in
31 March 2024 Cash flows fair values Other (1) 31 March 2025
€m €m €m €m €m
Interest-bearing loans and borrowings 945.1 370.6 - 3.3 1,319.0
Lease liabilities 37.8 (3.4) - 1.6 36.0
Total 982.9 367.2 - 4.9 1,355.0
31 March 2023 Cash flows Changes in Other (1) 31 March 2024
€m €m fair values €m €m
€m
Interest-bearing loans and borrowings 964.4 (22.8) - 3.5 945.1
Lease liabilities 39.6 (3.3) - 1.5 37.8
Derivative financial instruments (1.3) - 1.3 - -
Total 1,002.7 (26.1) 1.3 5.0 982.9
(1) Amortisation of capitalised finance charges on all loans, foreign
exchange differences, lease modifications and accretion of interest on lease
liabilities.
29. 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 and the Executive Committee members) of the Group during
the year include:
Consolidated income statement Year ended Year ended
31 March 2025 31 March 2024
€m €m
Directors' fees 0.7 0.5
Salary and employee benefits 5.8 6.4
Share-based payments 3.6 3.0
Total 10.1 9.9
Included within salary and employee benefits are pension contributions
amounting to €0.2m (2024: €0.2m).
There are no payables as at year end from Directors' fees and salary and
employee benefits (2024: €nil).
Directors' emoluments have been disclosed in the Annual Report in the
Remuneration report under the "Single figure table" and in the additional
disclosures in respect of the single figure table section on pages 103 and
104.
Associates
The following balances and transactions with associates exist as at the
reporting date:
Consolidated statement of financial position 31 March 2025 31 March 2024
€m €m
Loans to associates 45.1 45.1
Trade and other receivables 6.3 4.6
Total 51.4 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 year.
Consolidated income statement Year ended Year ended
31 March 2025 31 March 2024
€m €m
Services supplied(1) 17.9 18.9
Performance fee(1) 1.4 0.8
Interest income 2.2 2.2
Total 21.5 21.9
(1) To conform to the current year presentation, the performance fee has
been shown as a separate line and this is a reallocation from services
supplied for the year ended 31 March 2024.
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 €19.3m (2024:
€19.7m) as shown in note 5.
For details regarding the investment in associates, including dividends
received, see note 18.
30. Capital and other commitments
As at year end, the Group had contracted capital expenditure for development
and enhancements on existing properties of €18.7m (2024: €20.9m). In
addition, the Group has notarised acquisitions of investment properties
totalling EUR 116.4m (see note 33), of which EUR 38.5m has already been paid
(see note 19), with the remaining commitment amounting to EUR 77.9m.
The above noted were committed but not yet provided for in the financial
statements.
31. Operating lease arrangements
Group as lessor
All properties leased by the Group are under operating leases and the future
minimum lease payments receivable under non-cancellable leases are as follows:
31 March 2025 31 March 2024
€m €m
Less than 1 year 169.0 147.9
1-2 years 106.2 92.5
2-3 years 70.0 62.7
3-4 years 45.5 44.2
4-5 years 32.1 25.6
More than 5 years 51.7 50.9
Total 474.5 423.8
32. List of subsidiary undertakings and investments in associates
The Group consists of 118 subsidiary companies (2024: 118 subsidiary
companies). All subsidiaries are consolidated in full in accordance with IFRS.
The principal activity of the subsidiaries is the investment in, and
development of, industrial, warehouse and office properties to provide
conventional and flexible workspace in Germany and the UK. Immaterial
subsidiary companies are not disclosed in the table below.
Company name Country Ownership at Ownership at
of incorporation 31 March 2025 31 March 2024
% %
BizSpace Developments Ltd(1) UK 100.00 100.00
BizSpace Holdings Ltd UK 100.00 100.00
BizSpace II Ltd UK 100.00 100.00
BizSpace Ltd UK 100.00 100.00
BizSpace Property I Ltd UK 100.00 100.00
Hamsard 3767 Ltd(2) UK 100.00 N/a
Curris Facilities & Utilities Management GmbH Germany 100.00 100.00
DDS Aspen B.V. Netherlands 100.00 100.00
DDS Bagnut B.V. Netherlands 100.00 100.00
DDS Business Centres B.V. Netherlands 100.00 100.00
DDS Conferencing & Catering GmbH Germany 100.00 100.00
DDS Elm B.V. Netherlands 100.00 100.00
DDS Fir B.V. Netherlands 100.00 100.00
DDS Hawthorn B.V. Netherlands 100.00 100.00
DDS Hazel B.V. Netherlands 100.00 100.00
DDS Hyacinth B.V. Netherlands 100.00 100.00
DDS Lark B.V. Netherlands 100.00 100.00
DDS Mulberry B.V. Netherlands 100.00 100.00
DDS Rose B.V. Netherlands 100.00 100.00
Helix Investments Ltd(1, 3) Jersey 100.00 100.00
Helix Property Ltd Jersey 100.00 100.00
M25 Business Centres Ltd UK 100.00 100.00
Marba Bamboo B.V. Netherlands 100.00 100.00
Marba Cherry B.V. Netherlands 100.00 100.00
Marba Daffodil B.V. Netherlands 100.00 100.00
Marba Lavender B.V. Netherlands 100.00 100.00
Marba Olive B.V. Netherlands 100.00 100.00
Marba Sunflower B.V. Netherlands 100.00 100.00
Marba Violin B.V. Netherlands 100.00 100.00
Marba Willstätt B.V. Netherlands 100.00 100.00
SFG NOVA Construction and Services GmbH Germany 100.00 100.00
Sirius Alder B.V. Netherlands 100.00 100.00
Sirius Aloe GmbH & Co. KG Germany 100.00 100.00
Sirius Aster GmbH & Co. KG Germany 100.00 100.00
Sirius Beech B.V. Netherlands 100.00 100.00
Sirius Birch GmbH & Co. KG Germany 100.00 100.00
Sirius Coöperatief B.A.(3) Netherlands 100.00 100.00
Sirius Dahlia GmbH & Co. KG Germany 100.00 100.00
Sirius Facilities GmbH Germany 100.00 100.00
Sirius Finance (Cyprus) Ltd.(3, 4) Cyprus 100.00 100.00
Sirius Four B.V. Netherlands 100.00 100.00
Sirius Frankfurt Erste GmbH & Co. KG Germany 100.00 100.00
Sirius Frankfurt Zweite GmbH & Co. KG Germany 100.00 100.00
Sirius Jasmine GmbH & Co. KG Germany 100.00 100.00
Sirius Juniper B.V. Netherlands 100.00 100.00
Sirius Krefeld Erste GmbH & Co. KG Germany 100.00 100.00
Sirius Lily B.V. Netherlands 100.00 100.00
Sirius Narcissus GmbH & Co. KG Germany 100.00 100.00
Sirius Oak B.V. Netherlands 100.00 100.00
Sirius Orange B.V. Netherlands 100.00 100.00
Sirius Pepper GmbH & Co. KG Germany 100.00 100.00
Sirius Pine B.V. Netherlands 100.00 100.00
Sirius Renewable Energy GmbH Germany 100.00 100.00
Sirius Tamarack B.V. Netherlands 100.00 100.00
Sirius Three B.V. Netherlands 100.00 100.00
Sirius Tulip B.V. Netherlands 100.00 100.00
Sirius UK1 Ltd(3) UK 100.00 100.00
Sirius UK2 Ltd(1, 3) UK 100.00 100.00
Sirius Willow B.V. Netherlands 100.00 100.00
Marba Bonn B.V. Netherlands 100.00 99.73
Marba Bremen B.V. Netherlands 99.73 99.73
Marba Cedarwood B.V. Netherlands 99.73 99.73
Marba Chestnut B.V. Netherlands 99.73 99.73
Marba Dutch Holdings B.V. Netherlands 99.73 99.73
Marba Foxglove B.V. Netherlands 99.73 99.73
Marba Hornbeam B.V. Netherlands 99.73 99.73
Marba Königswinter B.V. Netherlands 99.73 99.73
Marba Maintal B.V. Netherlands 99.73 99.73
Marba Marigold B.V. Netherlands 99.73 99.73
Marba Merseburg B.V. Netherlands 99.73 99.73
Marba Mimosa B.V. Netherlands 99.73 99.73
Marba Regensburg B.V. Netherlands 99.73 99.73
Marba Saffron B.V. Netherlands 99.73 99.73
Marba Troisdorf B.V. Netherlands 99.73 99.73
Sirius Acerola GmbH & Co. KG Germany 99.73 99.73
Sirius Almond GmbH & Co. KG Germany 99.73 99.73
Sirius Bluebell GmbH & Co. KG Germany 99.73 99.73
Sirius Cypress GmbH & Co. KG Germany 99.73 99.73
Sirius Grape GmbH & Co. KG Germany 99.73 99.73
Sirius Hibiscus GmbH & Co. KG Germany 99.73 99.73
Sirius Indigo GmbH & Co. KG Germany 99.73 99.73
Sirius Mayflower GmbH & Co. KG Germany 99.73 99.73
Sirius Oyster GmbH & Co. KG Germany 99.73 99.73
Verwaltungsgesellschaft Gewerbepark Bilderstöckchen GmbH Germany 94.15 94.15
(1) During the year ended 31 March 2025 Helix Investments Ltd issued
86,800,000 preference shares of nominal value £1.00 (€1.17) each (2024:
BizSpace Ltd issued 20,744,551 preference shares of nominal value £1.00
(€1.15) each) that were fully subscribed to by Sirius UK2 Ltd. The funds
raised were used to finance the acquisition of assets to the investment
property portfolio. During the year ended 31 March 2025, following the
restructuring the 186,837,500 preference shares of nominal value £1.00
(€1.19) each previously issued by BizSpace Developments Ltd and subscribed
to by Sirius UK2 Ltd. were redeemed. Helix Investments Ltd issued 191,726,182
preference shares of nominal value £1.00 (€1.19) each that were fully
subscribed to by Sirius UK2 Ltd.
(2) Hamsard 3767 Ltd was acquired during the year as part of the Vantage,
Gloucester deal.
(3) Subsidiary company directly held by the Parent entity, Sirius Real
Estate Limited.
(4) During the year ended 31 March 2025 Sirius Finance (Cyprus) Ltd issued
33,000,000 ordinary shares of nominal value €1.00 each (2024: 63,000,000
ordinary shares of nominal value €1.00 each) that were fully subscribed to
by the parent entity, Sirius Real Estate Limited. The funds raised were used
to enable the acquisition of assets to the investment property portfolio.
Investment in associates which are accounted for with the equity method:
Company name Country Ownership at Ownership at
of incorporation 31 March 2025 31 March 2024
% %
DDS Daisy B.V. Netherlands 35.00 35.00
DDS Edelweiss B.V. Netherlands 35.00 35.00
DDS Lime B.V. Netherlands 35.00 35.00
DDS Maple B.V. Netherlands 35.00 35.00
Sirius Boxwood B.V. Netherlands 35.00 35.00
Sirius Laburnum B.V. Netherlands 35.00 35.00
Sirius Orchid B.V. Netherlands 35.00 35.00
Sirius Pear B.V. Netherlands 35.00 35.00
33. Post balance sheet events
On 14 January 2025, the Group notarised the acquisition of an asset in
Reinsberg, for €22.0m. The mixed-use single tenant business park comprises
36,936 sqm of industrial, storage and office space and is 76% occupied. The
transaction completed in April 2025.
On 12 December 2024 the Group notarised the acquisition of an asset in
Munich-Neuaubing for €13.3m. The mixed-use multi-tenant business park
comprises 10,107 sqm of storage and is 71% occupied. The site is adjacent to
our existing property in Munich-Neuaubing. The transaction completed in April
2025.
On 26 March 2025 the Group notarised the acquisition of an asset in
Mönchengladbach for €17.2m. The mixed-use multi-tenant business park
comprises 70,899 sqm of industrial, storage and office space and is 66%
occupied. The transaction is expected to be completed in the second quarter of
fiscal year 2025/2026.
On 28 May 2025 the Group notarised the acquisition of an asset in Lübeck for
€12.7m. The mixed-use multi-tenant business park comprises 14,810 sqm of
industrial, storage and office space and is 88% occupied. The transaction is
expected to be completed in the second quarter of 2025.
On 11 March 2025 the Group notarised the acquisition of an asset in Chalcroft,
UK, for £43.0m (€51.5m). The mixed-use multi-tenant business park comprises
36,770 sqm of storage and industrial space and is 86% occupied. The
transactions is expected to complete in the second quarter of fiscal year
2025/2026.
On 28 May 2025 the Group notarised the disposal of an asset in Pfungstadt for
a sale price of €30.0m. The transactions is expected to complete in the
fourth quarter of fiscal year 2025/2026. The book value of the property as of
31 March 2025 was €28.6m.
Business analysis (Unaudited Information)
Geographical property analysis - owned investment properties
Germany
March 2025 No. of Total sqm Occupancy Rate psqm Rent roll % of Value Gross Net WALE WALE
owned 000 € €m portfolio by €m (2) yield yield rent sqm
properties rent roll
Frankfurt 16 341 88.5% 7.94 28.8 21% 368.0 7.8% 7.2% 2.9 3.0
Berlin 4 107 96.0% 9.48 11.7 8% 184.5 6.3% 6.3% 2.7 2.8
Stuttgart 10 368 90.7% 5.71 22.9 16% 295.1 7.7% 7.0% 2.9 2.9
Cologne 8 147 92.5% 9.11 14.9 11% 194.5 7.7% 7.4% 2.8 3.0
Munich 3 126 83.1% 9.31 11.7 8% 206.7 5.7% 5.1% 1.8 1.7
Düsseldorf 15 374 78.3% 7.31 25.7 18% 327.4 7.8% 6.9% 2.8 3.0
Hamburg 4 93 78.1% 5.93 5.1 4% 71.3 7.2% 6.4% 1.6 1.4
Other 10 268 79.8% 7.56 19.4 14% 243.1 8.0% 7.0% 3.0 3.0
Total Germany 70 1,825 85.4% 7.50 140.2 100% 1,890.6 7.4% 6.7% 2.7 2.8
UK
March 2025 No. of Total sqm Occupancy Rate psqm Rent roll % of Value Net WALE WALE
owned 000 € (1) €m (1) portfolio by €m (2) yield rent sqm
properties rent roll
Midlands 11 92 93.5% 12.39 12.8 16% 95.2 9.5% 1.1 1.9
North 11 58 93.0% 13.42 8.7 11% 56.4 9.5% 0.8 1.3
North East and North 13 92 89.9% 8.81 8.8 11% 64.5 8.6% 1.6 1.8
North West 15 119 91.7% 11.65 15.2 19% 107.9 10.5% 1.1 1.7
South East 14 37 87.3% 36.13 14.0 17% 124.8 6.9% 1.5 1.6
South West 11 181 78.0% 12.82 21.7 26% 125.8 11.5% 1.0 1.4
Total UK 75 579 87.3% 13.39 81.2 100% 574.6 9.5% 1.4 1.6
(1) The Group's UK business charges licence customers an all-inclusive
rate, which includes an implicit element of service charge.
(2) Book value of owned investment properties including assets held for
sale when applicable.
Usage analysis
Germany
Usage Total % of total Occupied % of % of Vacant Rate psqm
sqm sqm sqm occupied Rent roll rent roll sqm €
sqm €m
Office 588,300 32.3% 483,764 31.0% 51.4 36.7% 104,536 8.85
Storage 578,912 31.7% 493,764 31.7% 33.7 24.0% 85,148 5.69
Production 399,902 21.9% 372,537 23.9% 24.7 17.6% 27,365 5.53
Smartspace 111,831 6.1% 80,409 5.2% 9.9 7.1% 31,422 10.29
Other(1) 145,362 8.0% 128,178 8.2% 20.5 14.6% 17,184 13.30
Total Germany 1,824,307 100.0% 1,558,652 100.0% 140.2 100.0% 265,655 7.50
UK
Usage Total % of total Occupied % of Rent roll % of Vacant Rate psqm
sqm sqm sqm occupied €m (3) rent roll sqm € (3)
sqm
Office 149,695 25.8% 117,928 23.3% 43.2 53.1% 31,767 30.51
Workshop 410,265 70.8% 374,606 74.1% 35.1 43.2% 35,659 7.81
Storage 1,507 0.3% 938 0.2% 0.2 0.3% 569 19.61
Other(2) 17,723 3.1% 11,992 2.4% 2.7 3.4% 5,731 18.93
Total UK 579,190 100.0% 505,464 100.0% 81.2 100.0% 73,726 13.39
(1) Other includes: catering, other usage, residential and technical
space, land and car parking.
(2) Other includes: aerials, car parking, retail units, yards, catering
and residential.
(3) The Group's UK business charge licence customers an all-inclusive
rate, which includes an implicit element of service charge.
Lease expiry profile of future minimum lease payments receivable under
non-cancellable leases
Germany by income
Office Production Storage Smartspace Other (1) Adjustments Total
€m €m €m €m €m in relation to €m
lease incentives
€m
Less than 1 year 46.0 23.9 29.3 6.6 17.0 (0.8) 122.0
Between 1 and 5 years 77.5 47.4 50.1 2.0 27.4 (0.2) 204.2
More than 5 years 9.9 8.5 10.2 0.1 8.0 0.0 36.7
Total 133.4 79.8 89.6 8.7 52.4 (1.0) 362.9
Germany by sqm
Office Production Storage Smartspace Other (1) Total
sqm sqm sqm sqm sqm sqm
Less than 1 year 132,991 104,318 177,762 72,420 31,743 519,234
Between 1 and 5 years 283,679 191,041 248,217 11,674 76,730 811,341
More than 5 years 67,094 77,178 67,785 35 15,985 228,077
Total 483,764 372,537 493,764 84,129 124,458 1,558,652
(1) Other includes: catering, other usage, residential and technical
space, land and car parking.
UK by income
Office Workshop Storage Other (2) Adjustments Total
€m €m €m €m in relation to €m
lease incentives
€m
Less than 1 year 12.1 6.7 0.1 0.6 - 19.5
Between 1 and 5 years 23.1 32.8 0.0 1.3 - 57.2
More than 5 years 14.5 9.2 0.0 3.0 - 26.7
Total 49.7 48.7 0.1 4.9 - 103.4
UK by sqm
Office Workshop Storage Other (2) Total
sqm sqm sqm sqm sqm
Less than 1 year 75,120 188,519 1,398 10,643 275,680
Between 1 and 5 years 32,781 145,732 - 3,460 181,973
More than 5 years 7,026 18,813 - 2 25,841
Total 114,927 353,064 1,398 14,105 483,494
(2) Other includes: aerials, car parking, retail units, yards, catering
and residential.
The Group's UK business provides flexible leases that represent approximately
61% of rent roll and conventional leases that represent 39% of rent roll.
Escalation profile per usage
Germany
The Group's German business' primary source of revenue relates to leasing
contracts with tenants. The Group's German business realises escalations as a
result of renewals, inflation linked indexations and contractually agreed
uplifts. Approximately 29.5% of contracts in place at 31 March 2025 are
subject to contractual uplifts. The average contractual uplifts over the
coming twelve months split by usage are detailed as follows:
Usage Increase in %
Office 4.64%
Storage 4.57%
Production 5.33%
Smartspace 9.91%
Other(1) 5.60%
Total 5.08%
(1) Other includes: catering, other usage, residential and technical
space, land and car parking.
UK
The Group's UK business' primary source of revenue relates to leasing
contracts and licence fee agreements with tenants. The Group's UK business
realises escalations as a result of renewals, inflation linked indexations and
contractually agreed uplifts. Of the lease contracts in place at 31 March
2025, approximately 40.3% are subject to contractual uplifts. The average
contractual lease contract uplifts over the coming twelve months split by
usage are detailed as follows:
Usage Increase in %
Office 4.3%
Workshop 6.4%
Total 5.7%
Property profile March 2025*
Germany
Property and location Total Office Storage Production Other (1) Rate psqm
sqm sqm sqm sqm sqm €
Aachen I 24,513 12,895 2,246 5,510 3,862 9.73
Aachen II 9,788 1,402 6,669 1,511 206 6.96
Alzenau 66,432 27,746 7,396 24,088 7,202 7.51
Bochum 56,440 12,690 36,027 3,965 3,758 5.22
Bochum II 4,259 3,502 479 12 266 9.06
Bonn 9,055 3,087 2,411 477 3,080 9.52
Bonn - Dransdorf 19,210 5,367 6,891 1,665 5,287 8.39
Buxtehude 28,854 1,120 10,831 13,420 3,483 4.52
Cölln Parc 13,547 5,948 3,425 2,868 1,306 11.33
Cologne 30,023 2,628 13,710 3,125 10,560 6.81
Dreieich 13,008 7,299 2,929 - 2,780 8.38
Dreieich II 5,605 194 2,592 - 2,819 6.99
Dresden 58,472 25,436 17,820 11,170 4,046 9.39
Düsseldorf - Sud 1,238 425 420 - 393 8.24
Düsseldorf II 21,441 2,814 12,318 1,970 4,339 7.53
Düsseldorf III 9,898 4,433 4,949 - 516 8.24
Erfurt 34,277 20,967 10,610 171 2,529 11.80
Essen 23,726 7,574 11,970 - 4,182 4.14
Essen II 15,481 5,892 4,718 2,325 2,546 7.40
Fellbach 11,679 8,543 1,830 627 679 9.51
Fellbach II 26,435 1,748 16,113 340 8,234 6.33
Frankfurt 9,785 4,601 233 - 4,951 10.15
Frankfurt III 4,310 2,225 484 68 1,533 12.63
Frankfurt Röntgenstraße 10,085 4,903 1,370 - 3,812 14.82
Freiburg Teningen 5,525 3,846 555 36 1,088 12.72
Frickenhausen 20,803 7,106 6,234 5,578 1,885 5.72
Friedrichsdorf 28,012 5,966 8,476 10,743 2,827 6.08
Gartenfeld 17,603 6,427 5,489 3,074 2,613 8.51
Grasbrunn 28,595 5,810 10,791 5,925 6,069 10.21
Hallbergmoss 35,935 2,314 5,776 27,276 569 4.80
Hamburg Lademannbogen 14,359 7,267 4,734 - 2,358 13.07
Hanover 18,714 12,241 2,874 - 3,599 12.23
Heidenheim 10,533 7,677 1,010 - 1,846 10.38
Heiligenhaus 22,762 8,112 3,958 6,344 4,348 7.75
Köln Porz 46,843 8,415 15,420 13,828 9,180 5.08
Köln Rodenkirchen 44,810 19,596 7,534 12,364 5,316 5.40
Krefeld 17,858 954 129 16,051 724 7.56
Krefeld II 21,219 15,213 2,321 279 3,406 12.54
Krefeld III 19,861 9,918 6,689 2,178 1,076 8.20
Ludwigsburg 11,345 7,044 2,520 594 1,187 7.91
Mahlsdorf 6,147 2,893 325 2,171 758 8.53
Mahlsdorf II 9,709 4,542 3,332 999 836 8.85
Maintal Mitte 28,467 6,608 10,062 3,587 8,210 7.60
Mannheim 29,432 11,636 10,762 1,963 5,071 9.07
Mannheim II 12,800 5,769 1,263 1,906 3,862 8.63
Mannheim III 11,026 462 4,523 5,685 356 5.86
Markgröningen 70,023 13,378 20,821 27,913 7,911 5.60
Munich - Neuaubing 14,707 6,260 3,986 586 3,875 7.05
Nabern II 3,048 2,276 741 - 31 8.43
Neckartenzlingen 58,356 4,532 30,853 20,337 2,634 3.95
Neu-Isenburg 93,282 12,730 32,206 32,184 16,162 8.46
Neuruppin 5,578 1,620 491 2,376 1,091 9.25
Neuss 51,577 15,296 19,466 14,087 2,728 4.97
Neuss II 8,186 5,752 1,165 - 1,269 13.13
Norderstedt 22,959 1,404 7,629 13,133 793 5.67
Nürnberg 17,629 13,368 1,277 182 2,802 13.56
Oberhausen 33,652 7,959 17,198 6,058 2,437 6.21
Offenbach Carl Legien-Strasse 12,627 3,052 7,507 172 1,896 5.46
Offenbach I 14,153 2,323 3,241 7,532 1,057 7.69
Öhringen 83,862 41,102 29,911 1,130 11,719 7.71
Pfungstadt 45,422 9,893 9,316 17,680 8,533 6.59
Potsdam 15,038 3,489 2,459 2,351 6,739 7.88
Potsdam II 18,902 1,969 7,448 8,772 713 4.96
Rastatt 32,796 6,698 12,229 9,867 4,002 6.77
Rostock 36,037 12,490 12,720 4,956 5,871 9.51
Saarbrücken 244 165 71 - 8 13.90
Schenefeld 20,305 5,068 8,173 2,200 4,864 7.17
Solingen 18,656 8,116 1,941 6,606 1,993 7.10
Stuttgart - Kirchheim 47,100 28,802 9,757 2,264 6,277 10.09
Wiesbaden 40,494 10,283 26,500 1,961 1,750 5.81
Total 1,824,307 588,300 578,912 399,902 257,193 7.50
UK
Property and location Total Office Workshop Storage Other (2) Rate psqm
sqm sqm sqm sqm sqm € (3)
Albion Mills Business Centre 14,889 5,351 5,338 866 3,334 8.49
Altrincham 4,498 1,442 2,768 - 288 16.49
Ashford 1,824 1,823 - - 1 49.72
Barnsley 43,934 - 43,934 - - 5.53
Barnsley Carlton 6,791 708 5,915 - 168 8.78
Basingstoke 10,314 10,183 - - 131 27.85
Birmingham Tyseley 11,219 901 10,170 - 148 8.50
Bradford - Dudley Hill 1,304 1,303 - - 1 53.52
Bristol Equinox 3,911 3,911 - - - 16.68
Bury 2,039 1,266 546 - 227 34.87
Camberwell - Lomond 16,198 303 15,756 - 139 7.31
Cardiff 1,627 1,599 - - 28 42.35
Cheadle 2,663 2,058 605 - - 30.40
Christchurch 3,094 - 3,094 - - 4.85
Consett 1,621 1,621 - - - 19.67
Coventry 4,852 3,512 555 - 785 13.22
Design Works 1,021 491 510 - 20 33.88
Didcot 3,788 1,000 2,648 - 140 11.95
Dinnington 2,733 2,732 - - 1 23.88
Doncaster 2,148 1,406 715 - 27 43.41
Dorking 15,891 3,998 11,368 - 525 5.88
Egham 1,002 927 - - 75 25.24
Fareham 1,758 1,758 - - - 50.57
Gateshead 13,160 - 11,927 - 1,233 4.58
Gloucester 20,516 3,053 16,320 113 1,030 6.42
Gloucester - Barnwood 3,304 3,022 24 257 1 34.95
Hartlepool - Oakesway 5,463 - 5,462 - 1 8.85
Hebburn 4,265 4,262 - - 3 32.50
Hemel Hempstead 1,372 1,230 - - 142 29.69
Hooton 2,939 2,225 643 - 71 31.95
Hove 2,365 - 2,364 - 1 7.80
Huddersfield (Linthwaite) 3,059 2,857 201 - 1 29.60
Islington Studio 2,076 2,042 - - 34 15.54
Leeds - Brooklands 3,726 - 3,725 - 1 8.71
Leeds - Wortley 1,993 1,992 - - 1 31.48
Letchworth 3,488 1,324 2,164 - - 20.10
Littlehampton 1,999 1,767 - - 232 32.37
Liverpool 3,293 2,162 1,085 - 46 31.38
London Colney 1,645 1,644 - - 1 38.47
M25 Business Centre 8,815 - 8,675 - 140 9.85
Maidstone 5,660 2,273 3,353 - 34 19.60
Manchester - Trafford Park 4,592 1,703 2,806 - 83 27.36
Manchester - Newton Heath 3,591 3,529 14 - 48 29.09
Manchester - Old Trafford 6,649 379 6,158 - 112 16.06
Milton Keynes 4,289 4,289 - - - 19.64
New Addington - Croydon 4,689 57 4,631 - 1 10.87
Newcastle - Amber Court 12,618 1,110 11,410 - 98 7.89
Northampton - K2 5,527 1,313 4,013 - 201 9.65
Northampton - KG 4,128 4,110 - - 18 37.86
Nottingham - Arnold 4,545 9 4,533 - 3 8.38
Nottingham - Park Row 5,495 5,465 - - 30 25.27
Nottingham - Roden 2,147 542 1,604 - 1 30.39
Oldham - Hollinwood 18,307 - 18,306 - 1 4.65
Perivale 6,561 6,412 - - 149 20.01
Peterlee 5,319 1,741 3,577 - 1 9.86
Poole 22,127 527 21,416 - 184 4.82
Preston 16,163 - 14,442 - 1,721 4.47
Rochdale (Fieldhouse) 4,487 1,374 3,112 - 1 16.01
Rochdale (Moss Mill) 9,261 108 9,152 - 1 10.05
Rotherham 1,927 - 1,927 - - 11.22
Sandy Business Park 2,238 2,238 - - - 14.96
Sheffield (Cricket) 1,689 1,688 - - 1 47.33
Shipley 4,295 4,109 169 - 17 37.37
Solihull 3,775 - 3,775 - - 6.76
Spectrum House 2,636 2,634 - - 2 16.85
Stanley 6,771 339 6,396 - 36 16.59
Sunderland - North Sands 2,300 - 2,299 - 1 44.16
Swindon 2,600 2,542 - - 58 63.84
The Ivories 123,836 21,787 98,684 - 3,365 4.75
Theale 20,814 619 18,443 - 1,752 5.74
Wakefield 3,829 - 3,829 - - 12.02
Warrington - Craven Court 1,779 - 1,779 - - 32.57
Wimbledon 3,293 1,172 1,569 271 281 26.59
Wolverhampton - Willenhall 5,271 581 4,340 - 350 11.08
Total 579,188 149,695 410,265 1,507 17,721 13.39
* Excluding commercial leased investment properties.
(1) Other includes: Smartspace, catering, other usage, residential and
technical space, land and car parking.
(2) Other includes: aerials, car parking, retail units, yards, catering
and residential.
(3) The Group's UK business charges licence customers an all-inclusive
rate, which includes an implicit element of service charge.
Annex 1 - Non-IFRS Measures
Basis of preparation
The Directors of Sirius Real Estate Limited have disclosed 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, headline earnings and funds from operations (collectively,
"Non-IFRS Financial Information").
The Directors have disclosed:
• EPRA earnings in order to assist in comparisons with similar
businesses in the real estate sector as a measure of a company's underlying
operating results and an indication of the extent to which current dividend
payments are supported by earnings. EPRA earnings is a definition of earnings
as set out by the European Public Real Estate Association defined as earnings
from operational activities. The reconciliation between basic and diluted
earnings and EPRA earnings is detailed in table A below showing all line item
adjustments.
• Adjusted net asset value in order to assist in comparisons with
similar businesses. Adjusted net asset value represents net asset value after
adjusting for net deferred tax asset/liability. The reconciliation for
adjusted net asset value is detailed in table B below.
• EPRA net reinstatement value ("EPRA NRV") in order 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 defined as the net asset value adjusted to reflect the value
required to rebuild the entity and assuming that entities never sell assets.
The reconciliation for EPRA NRV is detailed in table C below showing all line
item adjustments.
• EPRA net tangible assets ("EPRA NTA") in order 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 defined as the net asset value adjusted to reflect that entities
buy and sell assets, thereby crystallising certain levels of unavoidable
deferred tax. The reconciliation for EPRA NTA is detailed in table C below
showing all line item adjustments.
• EPRA net disposal value ("EPRA NDV") in order 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 defined as the net asset value adjusted to reflect the
shareholders' value under a disposal scenario, where deferred tax, financial
instruments and certain other adjustments are calculated to the full extent of
their liability, net of any resulting tax. The reconciliation for EPRA NDV is
detailed in table C below showing all line item adjustments.
• EPRA loan to value ("EPRA LTV") in order 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
defined as debt divided by market value of property including any capital
which is not equity as debt irrespective of its IFRS classification; it is
calculated on proportional consolidation; and assets are included at fair
value and net debt at nominal value. The reconciliation for EPRA LTV is
detailed in table D below showing all line item adjustments.
• Headline earnings in order to provide an alternative indication of
the Group's underlying business performance as required by the Listings
Requirements. Headline earnings represents earnings after excluding
"separately identifiable re-measurements", net of related tax (both current
and deferred) and related NCI, other than re-measurements specifically
included in headline earnings ("included re-measurements"), as defined by the
circular titled Headline Earnings issued by SAICA. The reconciliation for
headline earnings is detailed in table E below showing all line item
adjustments.
• Funds from operations in order to assist in comparisons with
similar businesses and to facilitate the Group's dividend policy which is
derived from profit or loss after tax. Accordingly, funds from operations
exclude non-cash items and any one-off non-operations related cash items to
show the net cash flow from operations. The reconciliation for funds from
operations is detailed in table F below showing all line item adjustments.
The Non-IFRS Financial Information is presented in accordance with the JSE
Listings Requirements as well as The Guide on Pro forma Financial Information
and the Headline Earnings Circular 1/2023, 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.
Ernst & Young Inc have issued an independent auditor's report on certain
of the Non-IFRS Financial Information for the year ended 31 March 2025 which
is included on page 120 to 128 of the Annual Report and Accounts 2025.The
starting point for all the Non-IFRS Financial Information has been extracted,
without adjustment, from the audited Group's consolidated financial statements
for the year ended 31 March 2025 (the "consolidated financial statements").
Table A - EPRA earnings
Year ended Year ended
31 March 2025 31 March 2024
€m €m
Basic and diluted earnings attributable to owners of the Company(1) 178.1 107.8
Deduct gain on revaluation of investment properties(2) (79.4) (12.2)
(Deduct gain)/add loss on disposal of properties (net of related tax)(3) (1.6) 0.1
Change in fair value of derivative financial instruments(4) - 1.3
Deferred tax in respect of EPRA earnings adjustments(5) 20.6 2.5
NCI relating to revaluation (net of related tax)(6) 0.1 0.0
NCI relating to gain on disposal of properties (net of related tax)(7) 0.0 0.0
(Deduct gain)/add loss on revaluation of investment property from (0.8) 1.6
associates(8)
Tax in relation to the revaluation gains/losses on investment property from 0.7 (0.0)
associates(9)
EPRA earnings(10) 117.7 101.1
Notes:
(1) Presents the profit attributable to owners of the Company which has
been extracted from the 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 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 11 within the consolidated financial
statements.
(4) Presents the change in fair value of derivative financial instruments
which has been extracted from the consolidated income statement within the
consolidated financial statements.
(5) Presents deferred tax in respect of EPRA earning adjustments which has
been extracted from note 11 within the consolidated financial statements.
(6) Presents the non-controlling interest relating to revaluation (net of
related tax) which has been extracted from note 11 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
11 within the consolidated financial statements.
(8) Presents the gain or loss on revaluation of investment property from
associates which has been extracted from note 11 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 11 within the
consolidated financial statements.
(10) Presents the EPRA earnings for the year.
Table B - Adjusted net asset value
31 March 2025 31 March 2024
€m €m
Net asset value
Net asset value for the purpose of assets per share (total equity attributable 1,688.9 1,407.3
to the owners of the Company)(1)
Net deferred tax liabilities(2) 99.3 82.7
Adjusted net asset value attributable to owners of the Company(3) 1,788.2 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 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 note 10 within the consolidated financial statements.
(3) Presents the adjusted net asset value attributable to the owners of
the Company as at year end.
Table C - EPRA net asset measures
31 March 2025 EPRA NRV EPRA NTA EPRA NDV
€m €m €m
Net asset value as at year end (basic)(1) 1,688.9 1,688.9 1,688.9
Diluted EPRA net asset value at fair value 1,688.9 1,688.9 1,688.9
Group
Deferred tax in respect of EPRA fair value movements on investment 103.3 103.3* n/a
properties(2)
Intangibles(3) n/a (1.7) n/a
Fair value of fixed interest rate debt(4) n/a n/a 86.4
Real estate transfer tax(5) 191.2 n/a n/a
Investment in associates
Deferred tax in respect of EPRA fair value movements on investment 8.0 8.0* n/a
properties(2)
Fair value of fixed interest rate debt(4) n/a n/a 3.3
Real estate transfer tax(5) 9.6 n/a n/a
Total EPRA NRV, NTA and NDV(6) 2,001.0 1,798.5 1,778.6
31 March 2024 EPRA NRV EPRA NTA EPRA NDV
€m €m €m
Net asset value as at year 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 EPRA fair value movements on investment 82.7 82.7* n/a
properties(2)
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 associates
Deferred tax in respect of EPRA fair value movements on investment 7.0 7.0* n/a
properties(2)
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 year 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 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 10 within 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 (2024:
€nil). For investment in associates the deferred tax income/(expense)
arising on revaluation losses/gains amounted to (€0.7m) (2024: €nil).
(3) Presents intangibles which has been extracted from the consolidated
statement of financial position within the consolidated financial statements.
(4) Presents the fair value of financial liabilities and assets on the
consolidated statement of financial position, net of any related deferred tax.
(5) Presents the add-back of purchasers' costs in order 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 year
end.
Table D - EPRA LTV
Proportionate
consolidation
31 March 2025 Group Investment in Total
€m associates €m
€m
Interest-bearing loans and borrowings(1) 209.1 52.6 261.7
Corporate bonds(2) 1,109.9 - 1,109.9
Net payables(3) 50.5 5.9 56.4
Cash and cash equivalents(4) (604.8) (7.4) (612.2)
Net debt (a)(5) 764.7 51.1 815.8
Investment properties(6) 2,488.1 127.6 2,615.7
Plant and equipment(7) 17.8 - 17.8
Intangible assets(8) 1.7 - 1.7
Loan to associates(9) 45.1 - 45.1
Total property value (b)(10) 2,552.7 127.6 2,680.3
EPRA LTV (a/b)(11) 30.0% 39.9% 30.4%
Proportionate
consolidation
31 March 2024 Group Investment in Total
€m associates €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 consolidated statement of financial position within the
consolidated financial statements less the corporate bonds which have been
extracted from note 24 within the consolidated financial statements.
(2) Presents the corporate bonds which have been extracted from note 24
within the consolidated financial statements.
(3) Presents the net payables, which are the sum of trade and other
receivables, trade and other payables, current tax liabilities (all of which
have been extracted from the consolidated statement of financial position
within the consolidated financial statements) and deposits which have been
extracted from note 19 within the consolidated financial statements.
(4) Presents the cash and cash equivalents which have been extracted from
the 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 consolidated statement of financial position within the consolidated
financial statements.
(7) Presents the plant and equipment which have been extracted from the
consolidated statement of financial position within the consolidated financial
statements.
(8) Presents the intangible assets which have been extracted from the
consolidated statement of financial position within the consolidated financial
statements.
(9) Presents the loan to associates which has been extracted from note 17
within the consolidated financial statements.
(10) Presents the total property value, which is the sum of investment
properties, 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 - Headline earnings
The following table shows the reconciliation of basic to headline earnings,
separately disclosing the impact before tax (gross column) and after tax (net
column):
Year ended Year ended
31 March 2025 31 March 2024
Gross Net Gross Net
€m €m €m €m
Basic earnings and diluted earnings attributable to owners of the Company(1) 178.1 107.8
Deduct gain on revaluation of investment properties(2) (79.4) (58.8) (12.2) (9.5)
(Deduct gain)/add loss on disposal of properties(3) (1.6) (1.6) (0.9) 0.1
NCI relating to revaluation(4) 0.1 0.1 0.0 0.0
NCI relating to gain on disposal of properties(5) 0.0 0.0 0.0 0.0
(Deduct gain)/add loss on revaluation of investment property from (0.8) (0.1) 1.6 1.6
associates(6)
Headline earnings(7) 117.7 100.0
Notes:
(1) Presents the profit attributable to owners of the Company which has
been extracted from the 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 consolidated income statement within the
consolidated financial statements (for the gross column) less any related
deferred tax movement which has been extracted from note 10 within the
consolidated financial statements (for the net column).
(3) Presents the gain or loss on disposal of properties which has been
extracted from the consolidated income statement within the consolidated
financial statements (for the gross column) less any related current tax which
has been extracted from note 10 within the consolidated financial statements
(for the net column).
(4) Presents the non-controlling interest relating to revaluation (for the
gross column) less any related tax (for the net column) both of which have
been extracted from note 11 within the consolidated financial statements.
(5) Presents the non-controlling interest relating to gain or loss on
disposal of properties (for the gross column) less any related tax (for the
net column) both of which have been extracted from note 11 within the
consolidated financial statements.
(6) Presents the gain or loss on revaluation of investment property from
associates (for the gross column) less any related tax (for the net column)
which has been extracted from note 11 within the consolidated financial
statements.
(7) Presents the headline earnings for the year.
Table F - Funds from operations
Year ended Year ended
31 March 2025 31 March 2024
€m €m
Profit for the year after tax(1) 178.2 107.9
Adjustments for:
Gain on revaluation of investment properties(2) (79.4) (12.2)
Adjustment in respect of long-term leasehold liabilities(3) (1.3) (0.9)
Gain of disposals of properties(4) (1.6) (0.9)
(Gain)/loss on revaluation of investment property from associates and related (0.1) 1.6
tax(5)
Other expenses not included in FFO(6) 0.6 0.9
Share-based payments(7) 6.5 5.0
Change in fair value of financial derivatives(8) - 1.3
Foreign exchange effects(9) (4.1) (3.4)
Depreciation and amortisation (excluding depreciation relating to IFRS 16)(10) 3.7 3.3
Amortisation of financing fees(11) 3.3 3.5
Adjustment in respect of IFRS 16(12) 0.8 0.6
Add back of total deferred tax(13) 16.6 2.5
Add back current tax relating to disposals(14) - 1.0
Funds from operations(15) 123.2 110.2
Notes:
(1) Presents profit or loss after tax which has been extracted from the
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 consolidated income statement within the
consolidated financial statements.
(3) Presents the adjustment in respect of long-term leasehold liabilities
which has been extracted from note 13 within the consolidated financial
statements.
(4) Presents the gain or loss on disposal of properties which has been
extracted from the 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 11 within the
consolidated financial statements.
(6) Presents other expenses not included in FFO as included in other
administration costs in note 6 within the consolidated financial statements.
(7) Presents share-based payments as included in other administration
costs in note 6 within the consolidated financial statements.
(8) Presents the change in fair value of derivative financial instruments
which has been extracted from the consolidated income statement within the
consolidated financial statements.
(9) Presents the net foreign exchange gains or losses as included in other
administration costs in note 6 within the consolidated financial statements.
(10) Presents depreciation of plant and equipment and amortisation of
intangible assets which have been extracted from note 6 within the
consolidated financial statements.
(11) Presents amortisation of capitalised finance costs which has been
extracted from note 9 within the consolidated financial statements.
(12) Presents the differential between the expense recorded in the
consolidated income statement for the year relating to head leases in
accordance with IFRS 16 amounting to €4.2m (2024: €3.9m) and the actual
cash expense recorded in the consolidated statement of cash flows for the year
amounting to €3.4m (2024: €3.3m).
(13) Presents the total deferred tax expense which has been extracted from
note 10 within the consolidated financial statements.
(14) Presents the current income tax charge relating to disposals of
investment properties which has been extracted from note 10 within the
consolidated financial statements.
(15) Presents the funds from operations for the year.
Glossary of terms
Adjusted net asset value is the total equity attributable to the owners of the Company adjusted for net
deferred tax liabilities/assets
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 adjusted earnings in order to assist in comparisons with similar businesses
in the real estate sector as a measure of the Group's underlying operating
results and an indication of the extent to which current dividend payments are
supported by earnings (EPRA earnings is detailed in note 11 showing all line
item adjustments)
EPRA loan to value is a loan to value ratio defined as debt divided by market value of property
including any capital which is not equity as debt irrespective of its IFRS
classification; it is calculated on proportional consolidation; and assets are
included at fair value and net debt at nominal value (EPRA LTV is detailed in
note 22 showing all line item adjustments)
EPRA net reinstatement value is the net asset value adjusted to reflect the value required to rebuild the
Group and assuming that the Group never sell assets (EPRA NRV is detailed in
note 12 showing all line item adjustments)
EPRA net tangible assets is the net asset value adjusted to reflect that the Group buy and sell assets,
thereby crystallising certain levels of unavoidable deferred tax (EPRA NTA is
detailed in note 12 showing all line item adjustments)
EPRA net disposal value is the net asset value adjusted to reflect the shareholders' value under a
disposal scenario, where deferred tax, financial instruments and certain other
adjustments are calculated to the full extent of their liability, net of any
resulting tax (EPRA NDV is detailed in note 12 showing all line item
adjustments)
EPRA net initial yield is the 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, COO, Chief Marketing and Impact Officer ("CMIO"),
Chief Investment Officer ("CIO") and Group HR Officer ("GHRO")
Funds from operations ("FFO") is profit after tax adjusted for non-cash and non-operational items, including
revaluations on investment properties, share-based payments, depreciation and
amortization, financing fees, foreign exchange differences and other
non-recurring items. Refer to Note 4 of the financial statements for further
information.
Geared IRR is an estimate of the rate of return taking into consideration debt
Group comprises the Company and its subsidiaries
Headline earnings is earnings after excluding "separately identifiable re-measurements", net of
related tax (both current and deferred) and related NCI, other than
re-measurements specifically included in headline earnings ("included
re-measurements"), as defined by the circular titled Headline Earnings issued
by SAICA (headline earnings is detailed in note 11 showing all line item
adjustments).
Like-for-like refers to the manner in which metrics are subject to adjustment in order to
make them directly comparable. Like-for-like adjustments are made in relation
to 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 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 sales 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 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; and
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
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 31
March 2025. Rent roll should not be interpreted or used as a forecast or
estimate. Rent roll differs from rental income described in note 5 of the
Annual Report and reported within revenue in the audited consolidated income
statement for reasons including:
• 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
Senior Management Team is made up of the Executive Committee members and certain Directors within the
Group
SIP Share Incentive Plan
Sirius comprises 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, as amended,
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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