REG - Sirius Real Estate - Trading Update

Sirius Real EstateAnnouncement

17/04/2023 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230417:nRSQ3411Wa&default-theme=true

RNS Number : 3411W  Sirius Real Estate Limited  17 April 2023

SIRIUS REAL ESTATE LIMITED

(Incorporated in Guernsey)

Company Number: 46442

JSE Share Code: SRE

LSE (GBP) Share Code: SRE

LEI: 213800NURUF5W8QSK566

ISIN Code: GG00B1W3VF54

 

17 April 2023

Sirius Real Estate Limited

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

 

Trading Update for financial year ended 31 March 2023

 

8.1%* increase in Group rent roll

 

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, provides an update on trading for its financial year ended
31 March 2023.

 

In what has been a more challenging economic backdrop during the year, the
Group has achieved an 8.1%* increase in overall rent roll (7.7%* on a like for
like basis), reflecting management's ability to capture rental growth in the
current inflationary environment. For the ninth consecutive year, the Group
has achieved like for like rent roll growth in excess of 5%. Cash collection
has remained robust at above 98.5% on a rolling 12-month basis. The Group
expects to deliver full year results in line with market expectations.

 

In Germany, our rental rates grew largely in line with our rent roll,
reflecting the stable occupancy rates in the country. Our in-house asset
management platform continues to manage product mix and occupancy carefully
alongside rate to yield the best overall returns from our space.

 

In our recently acquired UK business, BizSpace, we have successfully firmed
rates to position our assets for better returns in the long term. Rent roll
growth in the UK was in line with the Group level and rental rates have
increased well in excess of inflation. We have been comfortable ceding a small
amount of occupancy in return for these higher rates and we believe this
positions the business well to take advantage of any recovery in the
macroeconomic climate.

 

The Group's balance sheet remains strong with cash reserves of €123 million
with around 90% of the Group's debt maturing in excess of three years. During
the year the Group successfully re-financed its Berlin Hyp AG €170 million
facility at a 4.26% interest rate for a 7-year term, which from commencement
in November 2023 will take the overall weighted average Group cost of debt to
1.9%. Whilst the Group is mindful of the probable higher interest expense
arising from future re-financings, it is also confident that the leverage
levels will continue to have a positive overall effect on shareholder returns,
given the relatively high yielding nature of the Group's assets and the
continued growth in the rent roll which will help to offset future increases
in financing costs.

 

During the past twelve months, the Group's acquisitions and disposals were
largely matched, at approximately €45 million of each. Acquisitions largely
completed in the first half of the year, and focused on Germany, where we have
utilised our operating platform to continue to drive value.

 

Our disposals strategy remains opportunistic and fixed on non-core or mature
assets with little upside, where we can achieve returns in excess of book
value, as evidenced through the 25% combined premium to book value achieved on
the six disposals completed during the last 12 months. This efficient
recycling of capital will continue to be a mainstay of Sirius's strategy.

 

Commenting on trading during the period, Andrew Coombs, Chief Executive
Officer of Sirius Real Estate, said: "Against a challenging market backdrop
during the year, Sirius has delivered another period of strong operational
performance. The Group expects to deliver results for the financial year ended
31 March 2023 in line with market expectations, and I look forward to the
announcement of our fully audited results on Monday June 5th."

 

Full Year Results

 

Sirius will announce results for the financial year ended 31 March 2023 on
Monday, 5 June 2023, at which time there will be an in-person presentation and
virtual webinar for analysts and investors.

 

The financial information on which this trading update is based has not been
reviewed or reported on by the Company´s external auditors or a reporting
accountant.

 

*Group rent roll has been translated utilising a constant foreign currency
exchange rate of GBP:EUR 1.1374, being the closing exchange rate as at 31
March 2023.

 

Webcast and Conference Call

There will be a live audio webcast for analysts/investors at 08:30 BST (09.30
CET/ SAST) today, hosted by Andrew Coombs, Chief Executive Officer, Alistair
Marks, Chief Investment Officer and Interim Chief Financial Officer and Tariq
Khader, UK Finance Director.

 

If you would like to join the webcast please use the registration link below:

Webcast link: https://brrmedia.news/SiriusRealEstate_TradingUpdate
(https://brrmedia.news/SiriusRealEstate_TradingUpdate)

 

For analysts/investors who would like to ask questions, there will also be a
conference call option available, via the below:

 

Dial-in UK: +44 (0) 33 0551 0200

Dial-in Germany: +49 (0) 30 3001 90612

Dial-in South Africa: Toll-Free: 0 800 980 512

Participant access code (for all participants): Quote Sirius Real Estate
when prompted by operator

 

For further information:

Sirius Real Estate

Andrew Coombs, CEO / Alistair Marks, CIO and Interim CFO

+49 (0) 30 285 010 110

 

FTI Consulting (Financial PR)

Richard Sunderland / James McEwan / Talia Shirion

+44 (0) 20 3727 1000

SiriusRealEstate@fticonsulting.com

 

NOTES TO EDITORS

About Sirius Real Estate

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

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

JSE Sponsor

PSG Capital

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTNKABDABKDFQD