REG - Sirius Real Estate - Trading Statement

Sirius Real EstateAnnouncement

06/10/2025 07:00

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RNS Number : 0843C  Sirius Real Estate Limited  06 October 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

 

6 October 2025

Sirius Real Estate Limited

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

 

Trading Update for half year ended 30 September 2025

 

Sirius continues to drive like-for-like rent roll with 5.2%* increase

 

Sirius Real Estate, the leading owner and operator of branded business and
industrial parks providing conventional space and flexible workspace in
Germany and the U.K., provides an update on trading for the six months ended
30 September 2025.

 

The Group has achieved a 15.2% year-on-year increase in rent roll, partly
driven by the ongoing successful acquisition programme which has added assets
to the portfolio that also offer opportunities for future value creation.  On
a like-for-like basis, underlying rent roll increased by 5.2%*, reflecting our
ability to continue to drive organic growth across both Germany and the U.K.
The Group remains on track to deliver full year results in line with
expectations.

 

In Germany, we have continued to generate robust like-for-like rent roll
growth in excess of 5% despite the first half, as ever, being our weaker half
with move outs and sales affected by normal seasonality. Our focus in the
first half has been on protecting occupancy and the rent roll growth we have
achieved has principally been driven by increased renewal rates. We look ahead
to the second half of the year confident of accelerating growth in underlying
rent roll, buoyed by improved economic confidence leading to increased demand
for our space. Transactional markets are notably stronger in the German
industrial segment and we expect to see this convert to growth in our asset
values this year, in line with our rent roll growth.  Our renewed optimism in
the future outlook for the German economy is also shared more broadly across
the market and we expect to be beneficiaries of this.

 

In the U.K., in spite of a more difficult economic backdrop we have been able
to deliver like-for-like rent roll growth above 5%, in line with our German
operations. This result excludes our newly acquired large scale Vantage Point
asset, where we have been executing our intended asset management plan and
actively churning the tenant base. As with Germany, the growth has been
principally rate driven and renewals focused.  Valuations continue to be held
back by the macro-economic uncertainty prevalent in the market and hence we
are expecting flat valuations in our U.K. portfolio. Our optimism in the U.K.
comes from the opportunities which are prevalent in our most recently acquired
assets, which have transformed our U.K. business into an industrial property
business of significant scale and which will help drive our financial
performance in the coming years.

 

Following a period of highly acquisitive growth in the U.K. we are now
transitioning to a phase of intense asset management of our new assets,
leveraging the strength of our platform. At Vantage Point, Gloucester,
acquired in April 2024, we have churned the site's largest tenant and re-let
one third of the resulting vacancy at a rate which replaces half the previous
rent. We are refurbishing the remaining vacant space to allow us to generate
the best possible return on investment.  Due to the scale of Vantage Point
and concentration of one single tenant at acquisition, we have excluded it
from the underlying rent roll growth stated above and will continue to do so
in the current financial year. With it included, like-for-like rent roll
growth would be comfortably positive both in the U.K. and at Group level.

 

In this calendar year the Group has secured nearly €300 million of
acquisitions across Germany and the U.K., completing the deployment of capital
from its equity raise in July 2024, with each acquisition representing an
exciting lever for growth - be it through driving occupancy and rate, tackling
service charge leakage or revising an asset's layout to match demand. This
intensive operating approach is made possible due to the strength of the
Group's platform, both at the two head office locations in London and Berlin
and at our staffed sites.  Our newly appointed Property Director - Self
Storage, Tom Lampard, is injecting significant impetus into our existing
storage offering, as well as identifying interesting new build opportunities
on our extensive bank of under-utilised land. We have also generated a number
of strong leads through our defence initiative following our strategic
appointment of Major General (Retd) Angus Fay CB. In addition, our
acquisition pipeline remains strong, particularly in Germany, and we look
forward to announcing further asset acquisitions in the coming quarter which
will be much more focused on Germany than the first half of the year.

 

The Group's balance sheet has been strengthened further in the period with the
signing of a €150 million revolving credit facility, which remains undrawn,
and combined with the €105 million tap of the 2028 bond, gives us free cash
reserves of approximately €400 million as at 30 September 2025.  Our next
debt maturity is the June 2026 €400 million bond, which we will have plenty
of liquidity to repay whilst continuing to acquire further assets in the
coming months.  We expect to achieve an increase in our property valuations
at Group level at both the half year and full year which will provide balance
sheet headroom for further asset acquisitions.

 

Commenting on trading during the period, Andrew Coombs, Chief Executive
Officer of Sirius Real Estate, said: "Sirius has had a very positive start to
the year both at an underlying level, where we have continued our long track
record of driving rental growth through our asset management platform, but
also in terms of acquisitions. We have continued to put the proceeds of our
recent equity and bond raises to work, deploying some €300 million so far
this year through timely investments into Germany and the U.K., where most
notably we acquired Hartlebury Trading Estate in Worcestershire which was
transformative for our U.K. platform, adding 18% of new space.  As well as
being accretive to net operating income from the outset, these acquisitions
also represent a significant source of future value creation as we put our
proven asset management platform to work."

 

Half Year Results

 

Sirius will announce results for the six months ended 30 September 2025 on
Monday, 17 November 2025, at which time there will be an in-person
presentation and a 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 1:1.145, being the closing exchange rate as at 30
September 2025.

 

 

For further information:

Sirius Real Estate

Andrew Coombs, CEO / Chris Bowman, CFO

+44 (0) 20 3059 0855

 

FTI Consulting (Financial PR)

Richard Sunderland / Ellie Sweeney / James McEwan

+44 (0) 20 3727 1000

SiriusRealEstate@fticonsulting.com

 

NOTES TO EDITORS

About Sirius Real Estate

Sirius is a property company listed on the 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 U.K. As of 31 March 2025, the Group's
portfolio comprised 145 assets let to 10,477 tenants with a total book value
of over €2.7 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 (Twitter) at @SiriusRE

 

JSE Sponsor

PSG Capital

 

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