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Sirius Real EstateAnnouncement

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RNS Number : 0829A  Sirius Real Estate Limited  13 April 2026

 SIRIUS REAL ESTATE LIMITED

(Incorporated in Guernsey)

Company Number: 46442

JSE Share Code: SRE

LSE (GBP) Share Code: SRE

LEI: 213800NURUF5W8QSK566

ISIN Code: GG00B1W3VF54

 

13 April 2026

Sirius Real Estate Limited

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

 

Trading Update for the financial year ended 31 March 2026

 

Strong organic growth with 6.4% increase in Group like-for-like 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 U.K., provides an update on trading for its financial year
ended 31 March 2026.

 

The Group has achieved an 18.4%* year-on-year increase in rent roll, driven by
a combination of continued successful asset acquisitions and strong demand for
space at our business parks, both of which have contributed to solid organic
growth.  On a like-for-like basis, rent roll growth has accelerated in the
second half, delivering a total annual increase of 6.4%* compared to the
financial year ended 31 March 2025 and marking the twelfth consecutive year of
like-for-like rent roll growth in excess of 5%. The Group expects to deliver
full year results in line with market expectations.

 

In Germany, leasing performance has again seen a strong finish to the
financial year, with anticipated levels of move outs in the first half more
than offset by pricing gains on renewals and heightened occupier activity,
particularly in the final quarter. The Company's in-house asset management
platform was able to capture rate growth and occupancy gains over the full
year. In spite of the volatile geopolitical backdrop, we expect to see the
increase in income convert into valuation growth in the German portfolio at
the year end, supported by stable property yields.

 

In the U.K., a solid performance throughout the financial year was impacted by
prolonged political uncertainty around the Chancellor's Autumn Statement which
was delayed to the end of November 2025. This led to a slower occupational
market in the final three months of calendar year 2025, with weaker customer
confidence leading to deferred decision making, as well as the sale of smaller
spaces due to occupiers noticeably reducing their propensity to factor in
future growth ambitions. Following publication of the Autumn Statement, which
restored a degree of certainty back into the market, 2026 started very
strongly, with occupier sales metrics suggesting some catch up and mitigation
of the third quarter's weakness, nonetheless leading to reasonable
like-for-like rent roll growth in the U.K. over the whole year. We expect to
maintain property valuations in the U.K. and, overall, the Group expects to
announce a positive valuation movement at Group level at the period end.

 

During the financial year we completed on 13 asset acquisitions, with a total
investment value of €464 million. Three of those assets, Bedford,
Feldkirchen and Kiel, totalling approximately €155 million in investment,
have a significant defence component to their tenant base.  These
acquisitions fall in line with our previously stated strategy of building a
portfolio of defence-related properties in Germany and the U.K. and are
complementary to our traditional business parks. Both countries have announced
material increases in defence spend, with Germany in particular seeking to
grow spend to 5% of GDP through committed fiscal stimulus amounting to around
€400 billion. We believe this significant government funding will have a
material effect on the demand for the types of industrial space that Sirius
provides, with the urgency of the requirement making existing stock the only
feasible option at scale.

 

The Company maintains a strong balance sheet as demonstrated recently through
the renewed and enlarged €300 million revolving credit facility, supported
by existing and new banking partners.

 

In February 2026, we conducted a significantly oversubscribed £77 million
equity fundraise at a price in line with our 30 September 2025 adjusted NAV,
which was targeted at acquiring the asset in Kiel (with Rheinmetall as the
anchor tenant) and one further defence-related asset together totalling
approximately €130 million. We completed the acquisition of Kiel for a
slightly improved price of €93.4 million and did so within six weeks of the
February capital raise and before the start of the new financial year (we had
anticipated closing both transactions by Q2 2026). We have since withdrawn
from the other transaction because the seller significantly increased their
price expectations, but we are pleased to have identified from our extensive
pipeline of opportunities two alternative assets totalling approximately €30
million (the remaining 25% of the targeted spend), one of which is defence
related.

 

We expect to notarise these two remaining acquisitions in the first quarter of
the financial year and complete them in the second quarter at a better blended
yield than the 7.6% EPRA net initial yield that Kiel and the other asset would
have delivered. Given the strength of this pipeline and the quicker than
expected completion of the Kiel acquisition, which represents 75% of the
targeted spend, we remain on track to generate the anticipated levels of funds
from operations (FFO) from the fundraise proceeds.

 

Balancing the capital raising with the discipline of recycling capital from
assets where we have maximised our value add capability, in the financial year
we also agreed the sale of Pfungstadt for €30 million, at a premium to book
value, with the transaction due to complete in July 2026. In addition, we
completed on the sale of a smaller asset in Sunderland for £1.25 million,
also at a premium to book. We look forward to updating on further asset
activity over the coming months.

 

Commenting on trading during the period, Andrew Coombs, Chief Executive
Officer of Sirius Real Estate, said:  "Over the past year, our focus on
growth and asset management, as well as the quality and occupier appeal of our
properties, has enabled us once again to deliver a strong performance on
behalf of our shareholders, despite the volatile market backdrop. This has
translated into our twelfth year of like-for-like rental growth of above 5%,
as well as improving occupancy and expected overall valuations. Our balance
sheet remains strong and having shown that the debt and equity markets will
continue to support our strategy when we seek new capital, we invested €464
million into primarily resilient, income-generating assets that also offer the
opportunity to create value through our platform. Around a third of this by
value was invested into business parks that bolster our portfolio of
industrial assets let to defence-related businesses, which we expect to
continue to benefit from increased government led defence spending across
Europe and further afield."

 

Full Year Results

 

Sirius will announce results for the financial year ended 31 March 2026 on
Monday, 1 June 2026, 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 1.152, being the closing exchange rate as at 31 March
2026 and we continue to exclude Vantage Point in the U.K. from our
like-for-like rent roll metrics due to ongoing improvement works.

 

For further information:

Sirius Real Estate

Andrew Coombs, CEO / Chris Bowman, CFO

+ 44 (0)20 3059 0821

 

FTI Consulting (Financial PR)

Richard Sunderland / Ellie Sweeney / 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 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 30 September 2025, the
Group's owned portfolio comprised 153 assets let to 10,958 tenants with a
total book value of €2.8 billion, generating a total annualised rent roll of
€242.5 million. Sirius also holds a 35% stake in Titanium, its €350+
million German-focused joint venture with clients of BNP Paribas Asset
Management Alts (formerly 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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