REG - Sirius Real Estate - Results for the year ended 31 March 2026
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RNS Number : 3342G Sirius Real Estate Limited 01 June 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
1 June 2026
Sirius Real Estate Limited
("Sirius Real Estate", "Sirius", the "Group" or the "Company")
Results for the year ended 31 March 2026
25(th) consecutive dividend increase underpinned by consistent sustainable FFO
growth and strong operational performance driving adjusted NAV ahead of
expectations
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 2026.
Operating platform continues to drive rental and FFO growth
· 4.9% increase in profit before tax to €211.4m (2025: €201.6m)
due to strong operational performance and €111.3m valuation gain in 2026
compared to €81.0m gain in the previous financial year.
· 6.4% like-for-like annualised rent roll growth to €224.2m(1,2)
(31 March 2025: €210.8m) driven by continued strong organic growth and
occupier demand in Germany and the UK.
· 8.4% increase in Funds from Operations ("FFO") to €133.5m
(2025: €123.2m) with 4.5% increase in FFO per share to €8.82c (2025:
8.44c) and progressing well towards our near term €150m FFO target as well
as contributing to the launch of our next target to €175m FFO.
· 29.0% rise in profit after tax to €229.8m (31 March 2025:
€178.2m) reflecting release of deferred tax liabilities in the German
portfolio following a phased government reduction in the corporate tax rate.
· EPRA EPS decreased by 7.8% to 7.43c (2025: 8.06c) principally due
to realised foreign exchange translation effects and finance fees to related
to recent financing activities, with the majority of these headwinds incurred
in the first half when we reported 2.84c EPRA EPS. Basic earnings per share
improved by 24.3% to 15.16c (2025: 12.20c) driven by increased earnings and
valuation gains in the period.
Over 12 years' dividend growth with 25 consecutive dividend distributions
supported by sustainable FFO growth:
· Progressive H2 dividend of 3.22c per share (2025: 3.09c per
share), amounting to a 4.1% uplift in the total dividend for the financial
year to 6.40c (2025: 6.15c).
Income driven valuation gains
· 20.5% increase in value of owned investment property portfolio up
to €2,969.4 m(3) (31 March 2025: €2,465.2m) with €111.3m (2025: €81m)
of the uplift achieved through asset management and the remaining € 369.9m
from the Company's accretive acquisitions programme.
· Portfolio gross and net yield of 7.5% and 6.8% in Germany (2025:
7.4% and 6.7%) and 12.3% and 8.7% in the UK (2025: 14.1% and 9.5%)
respectively for the period.
· Adjusted NAV per share increased by 5.0% to 124.78c (2025:
118.89c), ahead of consensus expectations.
Significant market opportunity captured with €463.3m(4) of assets completed
or notarised fuelling future rental growth and comprising:
· Nine acquisitions in Germany for €271.1m(4) (net of costs)
contributing an annualised NOI of €19.8m at an average gross yield of 8.2%
and 85.7% occupancy.
· Four transactions in the UK for £166.2m (€192.2m) adding
£10.6m (€12.2m) of annual NOI, at an average gross yield of 6.7% and 84.2%
occupancy.
· Three of the above assets (€155.8m)(4), have a strong defence
related tenant base in line with the Company's strategy
Strong balance sheet reinforces financial flexibility and provides the ability
to act decisively on acquisitions
· Cash at bank of €372.7m (2025: €571.3m) and €300m undrawn
revolving credit facility, providing abundant liquidity ahead of the repayment
of the €400.0m bond due in June 2026.
· 36.1% net LTV (2025: 31.4%) and Net Debt to EBITDA of 6.6x (2025:
5.2x).
· Successful €105m bond tap of the Group's 2028 bonds conducted in
September 2025 and oversubscribed €88.3m equity raise (€85.9m net of
costs) in February 2026, reflecting strong capital markets support for Sirius'
proposition.
· Doubled the size of our existing undrawn Revolving Credit Facility
to €300.0m while further diversifying our banking syndicate with Barclays
joining, ABN Amro, BNP Paribas and HSBC as well as providing additional
flexibility for acquisitions and capex investment and debt management.
· 2.5% (2025: 2.6%) weighted average cost of debt and weighted
average debt expiry of 3.2 years (2025: 4.2 years) ensures stability,
efficiency and long-term flexibility.
Outlook
· The Group is trading in line with management expectations in the new
financial year and while we are carefully monitoring the recent conflict in
the Middle East on our business we have not at this time seen it impact on
occupier demand.
· Sirius continues to assess further growth options in both Germany
and the UK on an opportunistic basis, including recycling of mature assets and
reinvesting in value-add opportunities.
· Defence and self storage offer particularly compelling growth
opportunities in both the UK and Germany.
1 Group rent roll and rental income KPI's have been translated
utilising a constant foreign currency exchange rate of GBP: EUR 1.1516, being
the closing exchange rate as at 31 March 2026.
2 Vantage Point has been excluded from these performance measures, to
provide transparency on underlying portfolio performance, reflecting the
asset's scale and tenant concentration at acquisition, with a single managed
out tenant representing approximately 500,000 sq ft (46,452 sqm) to enable the
Company to actively repurpose the space for future letting.
3 Including assets held for sale.
4 Including one acquisition completed after 31 March 2026.
Commenting on the results, Andrew Coombs, Chief Executive Officer of Sirius
Real Estate, said: "Sirius has delivered another strong performance over the
past year, demonstrating the continued effectiveness of the Group's asset
management programme in driving growth and value, even during times of
volatile market conditions. The 38% average return on investment we have
generated from upgrading 250,000 sqm of space just through our value add capex
programme in the last three years is a real testament to the strength of our
team in this respect. This coupled with the diversity and strength of occupier
demand for, and appeal of, the spaces we provide is reflected in the fact that
we are able to report our 12th consecutive year of like-for-like rent roll
growth above 5% today, 8.4% growth in FFO as well as a milestone 25(th)
progressive dividend payout.
"At the same time, we have continued to make good progress in our acquisition
programme, investing over €463 million into thirteen attractive assets that
sit well under Sirius' operating platform and generate resilient income
streams from day one. This included around €155 million into properties
with strong defence related or adjacent tenant bases. The projected rise in UK
and German government defence spending is expected to have a material effect
on demand for the types of industrial space Sirius provides, with the urgency
of need making existing stock the only feasible option at scale.
"Additionally, the equity and debt markets have shown continued support for
our investment proposition, as demonstrated through the oversubscribed equity
raise and successful bond tap during the period. Alongside the doubling of our
revolving credit facility in March 2026, these initiatives have reinforced
Sirius's financial flexibility and ability to act decisively when
opportunities aligned to our strategic priorities arise. While we continue to
monitor the situation in the Middle East, we have yet to see it impact our
business or occupier demand and we remain confident in our ability to continue
to deliver accretive growth on behalf of our shareholders."
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 Peel Hunt's offices located at 100
Liverpool St, London EC2M 2AT.
There will also be a live webcast available, which can be accessed via the
following link:
https://brrmedia.news/SRE_FY26 (https://brrmedia.news/SRE_FY26)
For further information:
Sirius Real Estate
Andrew Coombs, CEO / Chris Bowman, CFO
+44 (0)20 3059 0855
FTI Consulting (Financial PR)
Richard Sunderland / 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 market 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 2026, the
Group's portfolio comprised 145 assets let to 10,477 tenants with a total book
value of approximately €3.0 billion, generating a total annualised rent roll
of €258.6 million. Sirius also holds a 35% stake in Titanium, its €350+
million German-focused joint venture with BNP Paribas Asset Management 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
LEI: 213800NURUF5W8QSK566
JSE Sponsor: PSG Capital
Chair's statement
Disciplined capital allocation in an uncertain environment
The past financial year has been conducted against a backdrop of heightened
macroeconomic, geopolitical and capital markets uncertainty. Business
confidence across many sectors has been influenced by inflationary pressures,
elevated interest rates and political developments, reinforcing the importance
of disciplined decision making and a long term perspective. The Board's
overriding priority is always prudently to ensure that the Group continues to
deliver resilient performance and a well-covered and progressive dividend
whilst maintaining balance sheet strength and strategic flexibility. However,
against the wider market backdrop it is pleasing to observe consistently
strong levels of opportunity for internal and external growth as we seek to
deliver further success to our shareholders and scale the business platform.
The Board was pleased to see the Group deliver another year of strong
operational progress, including like-for-like rent roll growth of 6.4%, and
full year results in line with expectations. This performance reflects the
continued effectiveness of the Group's asset management platform across both
Germany and the UK, even as market conditions were at times volatile during
the year. This has led to our 25th consecutive increased dividend payment for
the second half of the financial year.
Throughout the year, the Board worked closely with management to oversee a
balanced approach to growth and risk. We placed emphasis on protecting the
quality and visibility of the Group's income streams, maintaining prudent
leverage and ensuring that capital allocation decisions reflected areas where
underlying demand dynamics offered greater clarity. This approach is
consistent with the Board's focus on sustainable value creation rather than
short term optimisation.
In this context, the Board supported management's decision to prioritise
selective investment in assets benefiting from defence and infrastructure
related occupier demand, particularly in Germany. Both Germany and the UK have
announced material increases in defence spending, with Germany committing very
significant fiscal stimulus. In the Board's view, such programmes are expected
to translate into more time critical, programme driven demand for industrial
space, favouring existing, adaptable stock. While defence related assets
remain a modest proportion of the overall portfolio, their inclusion reflects
a considered allocation of incremental capital to areas where income
visibility is expected to be enhanced at the margin, without altering the
fundamentally diversified nature of the Group's business.
Self-storage activity is a further example of this. Adding storage services to
existing business parks has been beneficial to occupiers and highly accretive
to income for the Group over many years. However, a site use optimisation
opportunity has allowed the Group to commence building its first stand-alone
self-storage store in Berlin Gartenfeld. This is due to open at the end of the
year and we will continue to consider further opportunities to allocate
capital to dedicated self-storage stores in both Germany and the UK. From an
overall perspective, we do not rule out the possibility of allocating capital
into the UK in the near term, particularly where defence and self-storage is
concerned; however, we continue to see Germany as the market into which the
majority of our near-term capital investment will be made.
The Board has carefully considered the Group's capital structure during the
year, recognising the need for prudence and aligning with the preferences of
our supportive shareholder base. We welcomed the strength of investor support
demonstrated through the February 2026 equity raise, the debt market support
for our bond tap in September 2025 and the increase of the Group's revolving
credit facility in March 2026. These actions reinforce the Group's financial
flexibility and ability to act decisively where opportunities align with
strategic priorities and reflect investor confidence in the Company's ability
to deliver accretive growth together with a well-covered and progressive
dividend. At the same time, the Board continues to emphasise disciplined
capital recycling, ensuring that mature and non-core assets are disposed of
where value add potential has been maximised and capital can be redeployed
more effectively elsewhere.
Importantly, the Board continues to pursue the Group's established strategy
that positions it strategically for the future. Active asset management,
disciplined leasing, portfolio diversification and a strong internal operating
platform remain central to how the Group creates value. The actions taken
during the year represent a measured evolution of capital allocation within
this framework, shaped by prevailing market conditions and informed by the
objective of improving visibility over leasing outcomes and leveraging the
scalability of the business platform. It is this adaptability that makes
Sirius an interesting proposition.
I would like to thank the Executive team and all colleagues across Germany and
the UK for their continued commitment and professionalism. Their ability to
deliver sustained organic growth while adapting to a challenging external
environment underpins the Board's confidence in the Group's long term
prospects.
Daniel Kitchen
Chair
29 May 2026
Asset management review - Group
A people-led operating platform delivering resilient income growth
Introduction
The Asset management review sets out how the Group's people-led operating
platform delivered performance across the portfolio during the year. The
review is structured around the five value drivers that underpin the Asset
Management Strategy and demonstrates how operational execution translated into
income growth, occupancy management, valuation resilience and cash generation.
During the year, the Group continued to deliver strong organic performance
across both Germany and the UK, despite an uneven macroeconomic backdrop.
Like-for-like rent roll growth remained robust, driven by leasing execution,
disciplined pricing and targeted investment into vacant and sub-optimal space.
This performance reflects the effectiveness of the Group's asset management
platform and the resilience of demand for the flexible, functional space
Sirius provides.
Alongside organic growth, asset management activity supported valuation
stability and balance sheet strength. Capital expenditure was deployed
selectively to enhance income and improve space utilisation. Cash collection
remained strong across the portfolio, supporting earnings quality and
financial resilience.
The sections below provide further detail on performance during the year,
aligned to each of the Group's five asset management value drivers.
Platform delivers rent roll growth across both markets
Active leasing execution remained the primary driver of organic income growth
across the portfolio during the year. The Group delivered 6.4% like-for-like
rent roll growth to €224.2m (31 March 2025: €210.8m), reflecting
disciplined pricing and effective management of lease events across both
operating platforms.
This performance was supported by continued strength in achieved rates. The
Group's like-for-like average rate increased to €9.39 per sqm (31 March
2025: €8.93 per sqm), demonstrating the operating platform's ability to
capture rental uplifts while maintaining appropriate flexibility for
occupiers.
Including acquisitions, total rent roll increased by 18.4% to €258.6m (31
March 2025: €218.4m), reflecting the continued deployment of capital into
income-generative assets alongside organic growth delivered through the
standing portfolio.
Occupier demand remained resilient, with like-for-like occupancy improving to
87.5% (31 March 2025: 86.5%), although total occupancy decreased slightly to
85.0% (31 March 2025: 85.9%) due to portfolio changes and the natural timing
of vacancy associated with acquisitions and asset management activity. It is
the nature of Sirius' strategy that occupancy fluctuates as we acquire sites
with lower occupancy with a view to realising the potential of the vacancy and
recycle mature more highly occupied assets.
Cash collection remained strong at 98.3% (31 March 2025: 98.3%), supporting
earnings quality and reinforcing the resilience of the Group's diversified,
multi-let tenant base.
Performance by geography is outlined below.
Key metrics
Metric 31 March 2026 31 March 2025 Variance Variance %
Total rent roll(€m) 258.6 218.4 40.2 18.4%
Like-for-like rent roll (€m)(1) 224.2 210.8 13.4 6.4%
Average rate (€) per sqm 8.98 8.82 0.16 1.8%
Average rate (€) per sqm like-for-like(1) 9.39 8.93 0.46 5.2%
Total occupancy (%) 85.0 85.9 (0.9) (1.0)%
Like-for-like occupancy (%)(1) 87.5 86.5 1.0 1.2%
Cash collection (%) 98.3 98.3 - -
(1) Excluding Vantage Point, unless otherwise noted, throughout this
Strategic report. Vantage Point has been excluded from these performance
measures, to provide transparency on underlying portfolio performance,
reflecting the asset's scale and tenant concentration at acquisition, with a
single managed out tenant representing approximately 500,000 sq ft (46,452
sqm) to enable the Company to actively repurpose the space for future letting.
Asset management review - Germany
Germany
Key metrics
Metric 31 March 2026 31 March 2025 Variance Variance %
Total rent roll (€m) 165.2 140.2 25.0 17.8%
Like-for-like rent roll (€m) 150.4 140.2 10.2 7.3%
Average rate (€) per sqm 7.82 7.50 0.32 4.3%
Average rate (€) per sqm like-for-like 7.94 7.50 0.44 5.9%
Total occupancy (%) 85.5 85.4 0.1 0.1%
Like-for-like occupancy (%) 86.5 85.4 1.1 1.3%
Cash collection (%) 98.1 98.2 (0.1) (0.1)%
Lettings and rental growth
During the year, the German operating platform delivered continued strong
organic performance, supported by active leasing, disciplined pricing and
targeted capital investment across the standing portfolio. As illustrated in
the key metrics and supporting tables, like-for-like rent roll growth remained
robust, reflecting the resilience of occupier demand and the effectiveness of
the Group's established asset management model in Germany.
Total rent roll increased during the year, driven by a combination of organic
income growth and acquisitions integrated into the existing operating
platform. Like-for-like rent roll growth was achieved through a mix of
contractual uplifts, renewals and re-letting at higher rates, supported by
effective management of lease events and close engagement with tenants. This
performance demonstrates the ability of the German platform to convert leasing
activity into sustainable income growth across economic cycles.
Average achieved rates increased on a like-for-like basis, reflecting pricing
discipline and continued demand for functional, adaptable space across the
portfolio. This rate growth was achieved alongside broadly stable occupancy,
evidencing management's focus on balancing income growth with tenant retention
and affordability.
Occupancy across the portfolio remained stable during the year, with
like-for-like occupancy improving as vacant and under-utilised space was
progressively let up. The portfolio continues to comprise a mix of mature
assets and value-add assets, with remaining vacancy providing clear, defined
opportunities for further income growth through active asset management,
subject to disciplined capital deployment and tenant demand conditions. The
tables illustrate that a significant proportion of vacancy sits within
value-add assets, where targeted investment and space reconfiguration support
higher future rent roll potential.
The movement in rent roll is illustrated in the table below:
€m
Rent roll at 31 March 2025 140.2
Move-outs (20.7)
Move-ins 24.3
Contracted uplifts 6.6
Disposals 0.0
Acquisitions 14.8
Rent roll at 31 March 2026 165.2
Cash collection
Cash collection remained strong and consistent, reflecting the quality and
diversification of the German tenant base and the effectiveness of credit
control and tenant engagement processes. No single tenant or sector dominates
the rent roll, supporting income stability and reducing exposure to individual
tenant stress or sector-specific shocks.
Capex investment programme
Capital expenditure during the year was deployed selectively to protect and
grow the earnings base, with investment focused on the conversion of vacant
space, refurbishment of returned units and targeted improvements to enhance
lettability and income potential. These programmes continue to generate
attractive returns and support both near-term rent roll growth and longer-term
valuation resilience.
Value-add capex
This capex investment programme is a key driver of value creation and has
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.
Other than significantly improving income and valuation for the Company, these
programmes have also been integral in reducing service charge irrecoverables
as well as rolling out the Company's product offering such as market-aligned
Smartspace or self-storage under the brand MyLager.
In the last three years the Company has transformed 257,282 sqm of space for
an investment of €29.2m. At 31 March 2026 this space was generating €11.2m
in rent roll (at 80% occupancy). 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
three years are detailed below:
Value-add capex Budget Actual
Sqm developed 257,282 257,282
Investment (€m) 33.8 29.2
Investment psm (€) 131 113
Rent improvement (€m) 12.8 11.2
Occupancy 91% 80%
Rate psm (€) 4.56 4.52
ROI 38% 38%
The actual data above includes projects that were recently completed and are
yet to reach budgeted occupancy levels with the rental upside still to come.
Renewals capex
Furthermore, the Company has successfully renewed major tenants' leases by
investing in their spaces in order to retain them on site for longer terms as
well as achieve an incremental income improvement post renewal. In the last
three years 211,436 sqm were renewed as a result of this capex investment
programme which has resulted in an incremental increase in rent roll of
€2.7m. 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 211,436
Investment (€m) 4.9
Incremental rent improvement (€m) 2.7
ROI (%) 56%
New builds and major investments
In addition to the value-add and renewals capex investment programmes
investing into the existing spaces of the portfolio the Company has identified
the potential of creating new builds on excess land, as well as transforming
significantly structural buildings into higher-quality newly built structures.
As of 31 March 2026, an additional 891 sqm hall in the Berlin Gartenfeld
property has been completed for an investment of €1.7m and has already been
fully let generating €0.13m in annualised rental income, which has
contributed to a further increase in the value of the asset by €0.4m after
capex. The Company has a further 10,426 sqm in running projects and identified
a pipeline of 9,276 sqm of newly built spaces currently in the planning phase.
The combined development cost of these projects is estimated at €29.0m and
is expected to increase the rent roll by €2.7m as well as an €11.1m
increase in valuation after capex. When evaluating new build projects the
capital is assessed relative to acquiring new sites or other capex investment;
hence, the achieved ungeared IRRs on projects completed to date have been
highly attractive. The details of the new builds and major investments capex
investment programme have been detailed in the table below:
New builds and major investments Completed In progress Pipeline
Sqm 3,962 10,426 9,276
Investment (€m) 7.0 20.2 8.8
Rent improvement (€m) 0.6 1.8 0.9
Rate psm budgeted (€) 10.78 14.42 8.50
Rate psm (€) 13.41 - -
Occupancy 100% - -
Yield on cost 9% 9% 11%
Value uplift (€m) 3.0 7.3 3.8
Ungeared IRR 21% 19% 22%
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 programme by investing in vacancy on acquired sites as well as
upgrading spaces returned each year as a result of move-outs. Within the
existing vacancy at 31 March 2026, the Company has identified approximately
64,079 sqm of such space which will require an investment of approximately
€11.4m and has an estimated rental value of €5.3m when fully let.
Additionally, the Company plans to convert 2,391 sqm of structural void
building into a new build 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 space that is invested
into but the whole site.
The analysis below details the sub-optimal space and vacancy at 31 March 2026
and highlights the potential opportunity from developing this space.
Vacancy analysis - March 2026
Total space (sqm) 2,059,055
Occupied space (sqm) 1,760,042
Vacant space (sqm) 299,013
Occupancy 85%
% of Sqm Capex ERV
total space investment (post investment)
€m
Structural vacancy 3% 66,187 - -
Value-add capex 3% 64,079 (11.4) 5.3
Major investment new build 0% 2,391 (5.7) 0.4
Total space subject to investment 3% 66,470 (17.1) 5.7
Lettable vacancy:
Smartspace vacancy 2% 41,093 - 5.1
Other vacancy 6% 125,263 - 7.5
Total lettable space 8% 166,356 - 12.6
Total vacancy 15% 299,013 (17.1) 18.3
The German portfolio's headline 85% occupancy rate means that in total 299,013
sqm of space is vacant at 31 March 2026. When excluding the vacancy which is
subject to investment (3% of total space), and the structural vacancy which is
not economically viable to develop (3% of total space), the Company's
occupancy rate based on space that is readily lettable is approximately 91%.
Whilst the capex investment programmes are a key part of Sirius' strategy,
they represent one of several ways in which the Company can organically grow
income and capital values. A wide range of asset management capabilities
including the capturing of contractual rent increases, 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 with
growth potential.
Well-diversified income and tenant base
The German portfolio benefits from a well-diversified tenant base, with income
spread across production, storage and office uses, and a large number of SME
tenants alongside long-term anchor occupiers. This diversity underpins the
resilience of cash flows and supports consistent leasing activity across
market conditions.
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 at sqm occupied sqm rent roll rent roll per sqm
31 March 2026 €m % €
Top 50 anchor tenants (1) 50 716,308 41% 62.3 38% 7.25
Smartspace SME tenants (2) 3,840 86,737 5% 11.1 7% 10.67
Other SME tenants (3) 3,546 956,997 54% 91.8 55% 7.99
Total 7,436 1,760,042 100% 165.2 100% 7.82
(1) Mainly large national/international private and government tenants.
(2) Mainly small and medium-sized private and government tenants.
(3) Mainly small and medium-sized private and individual tenants.
Smartspace and First Choice
Smartspace products continued to play an important role within the German
portfolio, contributing higher-yielding income and supporting flexibility for
occupiers. Growth in Smartspace rent roll reflects a combination of rate
progression and incremental increases in occupied space, underlining the
effectiveness of converting previously sub-optimal or structurally vacant
areas into income-producing accommodation. While occupancy within Smartspace
moderated during the year, this reflects the ongoing expansion of the product
offering rather than a deterioration in underlying demand.
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 8,137 5,970 73% 1.4 13% 19.99
SMSP office 47,730 31,102 65% 3.9 35% 10.43
SMSP workbox 5,849 5,695 97% 0.6 5% 8.94
SMSP storage 64,762 43,970 68% 4.7 42% 8.73
SMSP container - - - 0.5 5% n/a
SMSP total 126,478 86,737 69% 11.1 100% 10.56
Overall, asset management performance in Germany during the year reflects a
mature, income-led operating platform, characterised by repeatable organic
growth, stable occupancy, disciplined capital investment and strong cash
collection. The portfolio remains well positioned to continue delivering
resilient income growth through active management of existing assets, with
clearly defined opportunities for further optimisation within the value-add
component of the estate.
Asset management review - UK
UK
Key metrics
Metric 31 March 2026 31 March 2025 Variance Variance %
Total rent roll (£m) 81.1 67.9 13.2 19.5%
Like-for-like rent roll (£m)(1) 64.1 61.3 2.8 4.6%
Average rate (£) per sq ft 11.77 12.47 (0.70) (5.6)%
Average rate (£) per sq ft like-for-like(1) 14.47 13.92 0.55 4.0%
Total occupancy (%) 83.7 87.3 (3.6) (4.1)%
Like-for-like occupancy (%)(1) 91.7 90.9 0.8 0.9%
Cash collection (%) 98.8 98.8 - -
(1) Excluding Vantage Point, unless otherwise noted, throughout this Strategic
report. Vantage Point has been excluded from these performance measures, to
provide transparency on underlying portfolio performance, reflecting the
asset's scale and tenant concentration at acquisition, with a single managed
out tenant representing approximately 500,000 sq ft (46,452 sqm) to enable the
Company to actively repurpose the space for future letting.
Lettings and rental growth
The UK operating platform delivered a year of strong rent roll growth and
resilient underlying performance, supported by acquisition-led expansion
alongside continued progress within the standing portfolio. As illustrated in
the Key metrics table, rent roll increased by 19.5% to £81.1m (€93.4m),
while like-for-like rent roll grew by 4.6%, reflecting effective leasing
execution, customer retention and disciplined asset management.
Growth during the year was driven primarily by acquisitions, which contributed
£12.0m (€13.8m) of additional rent roll, alongside continued organic
progression within the existing estate. This combination supports the Group's
UK strategy of scaling the platform to capture operational leverage, while
maintaining pricing discipline and income durability across the core
portfolio.
Movements in average rental rates must be considered in the context of
portfolio mix. As shown in the table, the average portfolio rental rate
declined by 5.6% to £11.77 per sq ft, reflecting the strategic addition of
larger-scale industrial assets acquired during the year, most notably
Hartlebury Industrial Estate, which carries a lower average rent per sq ft due
to its size and use profile. This dilution effect is a consequence of asset
mix rather than a weakening in underlying pricing.
On a like-for-like basis, excluding acquisitions, achieved rates per sq ft
increased by 4.0%, demonstrating that underlying pricing across the core UK
portfolio remains resilient and that occupancy growth has not been achieved at
the expense of pricing integrity. Like-for-like rent roll growth was driven
primarily by contractual uplifts and renewals, supported by strong customer
retention and proactive day-to-day asset management.
Occupancy trends further reinforce this distinction. While total occupancy
declined to 83.7%, reflecting the inclusion of newly acquired assets with
lower in-place occupancy at acquisition, like-for-like occupancy improved to
91.7%. This highlights improving underlying demand and the effectiveness of
void management and retention initiatives across the established estate.
Vantage Point Business Village
Vantage Point Business Village, Gloucester, acquired in April 2024, is
presented separately within the Group's UK disclosures to provide transparency
on underlying portfolio performance, reflecting the asset's scale and tenant
concentration at acquisition, with a single occupier representing
approximately 500k sq ft.
During the year, asset management activity at the site included the managed
exit of the single largest tenant and the re-letting of approximately
one-third of the resulting vacant space at a rate replacing more than half of
the previous rent. The remaining vacant space is being progressed through a
combination of subdivision, refurbishment and change-of-use initiatives.
Accordingly, Vantage Point has been excluded from the underlying LFL
performance metrics presented above for the year. Including Vantage Point, the
LFL metrics show that the rate would have increased by 8.5%, occupancy would
have decreased by 4.3% and the combined effect would have resulted in a 2.7%
rent roll growth in the UK.
The below outlines the movement in rent roll for the year.
£m
Rent roll 31 March 2025 67.9
Move-outs (13.4)
Move-ins 11.6
Contracted uplifts 3.6
Disposals (0.6)
Acquisitions 12.0
Rent roll 31 March 2026 81.1
Excluding acquisitions, higher move-outs (including Vantage Point as
referenced above) than move-ins reflect a deliberate rebalancing of customer
mix, with customers departing generally occupying higher-priced space. This
has been managed proactively through space recycling, targeted refurbishments
and repositioning activity. Contracted uplifts of £3.6m provided additional
support to the sustainability of like-for-like growth and income quality.
Despite a challenging economic and political environment, letting activity
remained robust, supported by higher enquiry volumes and increased absolute
deal numbers. While conversion rates softened slightly year-on-year, improved
enquiry flow and deal activity contributed to occupancy improvement and
reflect sound alignment between space configuration, affordability and
occupier demand.
Cash collection
The twelve month rolling cash collection remained strong at 98.8%, unchanged
year-on-year, despite the increase in total billings arising from
acquisitions. This performance reflects the resilience of the UK tenant base
and the effectiveness of the Group's credit control and customer engagement
processes.
Site investment
Capital investment continues to be deployed to protect and grow the earnings
base, with expenditure focused on maintaining asset quality, improving the
configuration of space, supporting occupancy growth and delivering targeted
value-add initiatives. Total capital expenditure of £14.4m (€16.7m) (31
March 2025: £10.9m (€13.0m)) during the year reflects the continued
emphasis on investment that supports rent roll growth, future reversion and
portfolio resilience, including selective investment in higher-yielding space
and ESG-focused initiatives to improve efficiency and mitigate regulatory and
obsolescence risk. Capital deployment also supported the integration and
optimisation of newly acquired assets and the continued expansion of the
self-storage offering.
Capital expenditure was primarily focused on improving the condition and
configuration of space, supporting occupancy levels and rental growth across
the portfolio. The increase in investment reflects the Company's continued
focus on value-add initiatives, with over 40% of total spend allocated to
projects expected to drive growth in rent roll. These initiatives include
investment to expand and enhance higher yielding space, reflecting the
evolving mix of customer demand across the portfolio.
The ESG focused investment, including energy efficiency initiatives and
projects, aims to improve EPC performance, alongside continued selective
investment to enhance the customer experience. Investment activity during the
year also reflects the expansion of the portfolio through acquisitions, with
capital expenditure supporting the integration and optimisation of newly
acquired assets, as well as continued growth in the self-storage business.
Defensive capital expenditure accounted for the remainder of the total spend.
Well-diversified income and tenant base
The UK portfolio benefits from a well-diversified tenant base, as illustrated
in the tenant analysis table, with income spread across industrial, office,
studio and storage uses. No single tenant or sector dominates the rent roll,
reducing concentration risk and supporting income stability across market
cycles. The platform continues to demonstrate a strong ability to attract and
retain SME tenants, which remain central to the UK occupier proposition.
No. of Occupied % of Total % of total Rate
tenants at sq ft m occupied sq ft rent roll rent roll per sq ft
31 March 2026 £m £
Top 100 tenants 100 3.1 45% 25.2 31% 8.06
Next 900 900 2.4 35% 31.0 38% 13.11
Remaining SME 3,300 1.4 20% 24.9 31% 17.82
Total 4,300 6.9 100% 81.1 100% 11.77
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.
Overall, the UK asset management performance during the year reflects a
platform actively transitioning from acquisition-led expansion towards
stabilisation and optimisation, with improving occupancy, robust cash
collection and increasing visibility of leasing outcomes. This positions the
UK portfolio to contribute more consistently to the Group's income base over
time.
Financial review
Sustainable FFO growth delivered through operational performance and
disciplined capital allocation
"Sirius has achieved another year of FFO growth, driven by organic and
acquisitive growth which has ensured we have been more than able to digest the
ongoing increases in finance expense. It was another year of capital raising,
with a very well-supported equity raise alongside a bond tap and the
introduction of a revolving credit facility which was later doubled to
€300m. This support sets us up for future growth and whilst we will continue
to face finance cost headwinds, we are confident of being able to continue to
deliver sector leading growth and income."
Chris Bowman
Chief Financial Officer
Trading performance and earnings
Sirius recorded funds from operations (FFO) of €133.5m, an increase of 8.4%
compared with the prior year (31 March 2025: €123.2m), reflecting the
continued conversion of rental income growth into recurring cash earnings. FFO
growth was achieved despite an increase in finance costs, demonstrating the
underlying resilience of the Group's income base and operating platform.
Total revenue increased by 9.4% to €347.5m (31 March 2025: €317.5m), while
profit before tax increased to €211.4m (31 March 2025: €201.6m). The Group
delivered strong organic growth, with like-for-like rent roll increasing by
6.4%, driven by pricing discipline, positive leasing spreads and effective
occupancy management across both Germany and the UK. Including acquisitions,
total rent roll increased by 18.4%, reflecting disciplined capital deployment
into income-producing assets.
On a diluted basis, EPRA earnings per share decreased by 8.3% compared with
the prior year. This movement primarily reflects foreign exchange translation
effects, increased share based payment charges, financing fees related to
fundraising activities and dilution from equity raised in the period.
On a per share basis, FFO per share increased by 4.5% to 8.82 cents,
reflecting earnings growth partially offset by the dilutive impact of the
February 2026 equity raise.
Earnings No. of shares 31 March 2026 Earnings No. of shares 31 March 2025 Change
€m cents per share €m cents per share %
FFO per share 133.5 1,514,459,087 8.82 123.2 1,460,013,616 8.44 4.5
Diluted EPRA EPS* 112.5 1,545,150,711 7.28 117.7 1,482,145,687 7.94 (8.3)
* See note 11 and Annex 1 - non-IFRS measures section of the Annual
Report and Accounts 2026.
Portfolio valuation - Group
The portfolio of owned assets was independently valued at €2,943.8m by
Cushman & Wakefield LLP at 31 March 2026 (31 March 2025: €2,469.4m),
which converts to a book value of €2,960.5m (31 March 2025: €2,488.1m)
after the adjustments in relation to lease incentives and inclusion of leased
investment property. Valuation movements during the year primarily reflect the
conversion of income growth and leasing execution into asset values, rather
than changes in market yields. Net valuation gains of €111.3m were recorded
after capital expenditure (31 March 2025: €81.0m), demonstrating the
earnings led nature of valuation performance across the portfolio.
German UK Total investment
investment investment property
property property €m
€m €m
Owned investment properties at 31 March 2025 1,894.7 574.7 2,469.4
Additions relating to owned investment properties 177.7 192.2 369.9
Capex investment and capitalised broker fees 33.4 16.6 50.0
Disposal* (31.0) (3.0) (34.0)
Gain/(loss) on revaluation above capex investment and broker fees 110.2 1.1 111.3
Currency effects - (22.8) (22.8)
Owned investment properties at 31 March 2026 2,185.0 758.8 2,943.8
Adjustment in respect of lease incentives (4.4) 0.0 (4.4)
Adjustment in respect of long-term leasehold liabilities 7.3 13.8 21.1
Total investment properties at book value at 31 March 2026 2,187.9 772.6 2,960.5
* Includes investment properties reclassified to assets held for sale.
Portfolio valuation - Germany
The book value, including acquisitions, of the owned German portfolio
increased by €320.0m or 16.9% from €1,890.6m to €2,210.6m. This included
an increase in valuation (above capex and broker fees) on those assets owned
in the period of €110.2m driven by a like-for-like increase of €10.2m in
rent roll and a small amount of gross yield compression (1bp). The entire
German portfolio including the acquisitions purchased in the period is valued
at an average gross yield of 7.5% (31 March 2025: 7.4%) which translates to a
net yield of 6.8% (31 March 2025: 6.7%) and an EPRA net initial yield
(including estimated purchaser costs) of 6.3% (31 March 2025: 6.3%).
Yield movement during the year was limited, underlining that valuation gains
were largely income led rather than driven by market yield compression. The
portfolio continues to comprise a mix of mature and value-add assets, with
remaining vacancy and reversionary potential providing further opportunity for
income growth through active asset management subject to disciplined capital
deployment and tenant demand conditions, as described in the Asset management
review - Germany section of this report.
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 111.8 1,415.7 98.3** 928 7.9% 6.9% 271,102 7.61 81.9%
Mature assets 53.4 794.9 51.2 1,357 6.7% 6.4% 27,911 8.31 95.5%
Total 165.2 2,210.6 149.5 1,047 7.5% 6.8% 299,013 7.82 85.5%
* Includes investment properties held for sale when applicable.
** Includes €3.2m of non-recoverable service charge from DDS
contracts.
Portfolio valuation - UK
At 31 March 2026, the UK portfolio was independently valued by Cushman &
Wakefield LLP at £658.9m (€758.8m) (31 March 2025: £480.0m (€552.8m)),
representing an increase of £178.9m (€206.0m), including assets acquired
in the period, compared to the prior year valuation. The increase in
portfolio value reflects both strategic acquisition activity and organic
like-for-like growth, which together more than offset the impact of asset
disposals from the prior year. During the year, we acquired four properties
totalling £166.2m (€192.2m); this includes the acquisition of Hartlebury
Industrial Estate for £107.0m (€123.2m) marking a significant milestone for
the portfolio, given its scale, strategic location and income-generating
profile.
In line with our active portfolio management strategy, we also disposed of two
non-core properties with a book value of £2.7m (€3.0m).
On a like-for-like basis, the portfolio increased in value by £19.6m
(€22.6m) or 4.1% to £496.9m (€572.2m) when compared to the value at 31
March 2025 of £477.3m (€549.6m) which was driven by a €2.8m (4.6%)
uplift in like-for like revenue and a 20bps net yield compression which can be
contributable to the on-going increased performance of the sites supported by
sustained tenant demand and stable rental income reflecting the continued
execution of the Company's Asset Management Strategy. The portfolio
delivered a total average gross yield of 12.3% (2025: 14.1%) and a
like-for-like net yield of 9.3% (2025: 9.5%). The 20 basis point tightening in
net yield was fully supported by a corresponding increase in the rent roll
over the year, contributing positively to the like-for-like valuation uplift.
The portfolio delivered a total average gross yield of 12.3% (2025: 14.1%) and
a like-for-like net yield of 9.3% (2025: 9.5%). The 20 basis point tightening
in net yield was fully supported by a corresponding increase in the rent roll
over the year, contributing positively to the like-for-like valuation uplift.
Total Book value NOI Capital Gross yield Net yield Vacant Rate psq ft Occupancy
rent roll £m £m value % % space £ %
£m £m/sq ft sq ft
UK portfolio 81.1 658.9 57.0 80.09 12.3 8.7 1,341,121 11.77 83.7
The UK does not have material lease incentives adjusting the investment
property values.
Net asset value
The Group delivered a total shareholder accounting return of 10.2%, reflecting
valuation performance and distributions during the year. Adjusted NAV per
share increased by 5.0% to 124.78 cents, while EPRA NTA per share increased by
4.3% to 122.71 cents, driven primarily by income led valuation gains.
Cents per share
NAV per share at 31 March 2025 112.29
Recurring profit after tax 6.29
Equity raise 0.07
Gain on revaluation (net of capex) 7.03
Deferred tax charge 1.21
Cash dividend paid (6.15)
Adjusting items (1) (1.03)
NAV per share at 31 March 2026 119.71
Deferred tax and derivatives 5.07
Adjusted NAV per share at 31 March 2026 (2) 124.78
EPRA adjustments (3) (2.07)
EPRA NTA per share at 31 March 2026 (2) 122.71
(1) Adjusting items includes items such as share of profit in associates,
gains and losses on investments, share-based payments including vesting and
foreign currency effects.
(2) See Annex 1 - non-IFRS measures section of the Annual Report and
Accounts 2026 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 but also includes the potential impact of shares
issued in relation to the Company's long-term incentive programmes and
excludes intangible assets, was 122.71c, an increase of 4.3% from 117.61c at
31 March 2025.
Financing
During the year, the Group undertook a number of financing actions to support
disciplined capital deployment while maintaining balance sheet resilience in a
volatile market environment. These actions included a targeted equity raise to
fund identified acquisition opportunities, a tap of the Company's 2028 bonds
and the introduction and subsequent doubling of the Group's revolving credit
facility, to enhance liquidity and flexibility, and the ongoing management of
the Group's predominantly unsecured debt programmes. Collectively, these
measures strengthened the Group's funding position, supported the execution of
its investment strategy and ensured continued compliance with financial
covenants while preserving financial flexibility.
The increase in net loan to value to 36.1% (31 March 2025: 31.4%) reflects the
timing of acquisitions completed during and shortly after the year end, ahead
of the full income contribution from those assets. The Group reported a
weighted average cost of debt of 2.5% (31 March 2025: 2.6%), a weighted
average debt maturity of 3.2 years (31 March 2025: 4.2 years), and interest
coverage at EBITDA level of 7.3x (31 March 2025: 6.3x).
Net LTV, which reduces the loan balance by free cash (excluding restricted
cash balances), is calculated as follows:
Net LTV
31 March 2026 31 March 2025
€m €m
Total debt* 1,444.8 1,345.5
Less cash and cash equivalents (not including cash restricted under (372.7) (571.3)
contractual terms)
Total 1,072.1 774.4
Book value of owned investment properties (including investment properties 2,969.4 2,465.2
held for sale when applicable)
Net loan to value ratio (%) 36.1% 31.4%
* Excludes loan issue costs.
A summary of the movement in the Group's debt is set out below:
Movement in debt*
€m
Total debt at 31 March 2025 1,345.5
Debt additions 105.0
Scheduled amortisation (5.7)
Total debt at 31 March 2026 1,444.8
* Excludes loan issue costs.
Dividend
The Board has approved the Company's 25th consecutive half yearly dividend
increase, with 3.22 cents per share payable to shareholders for the second
half of the financial year ended 31 March 2026. Combined with the first half
dividend of 3.18 cents per share, this marks a 4.1% increase from the total
dividend of 6.15 cents declared for the previous financial year ended 31 March
2025. Dividend decisions continue to be made with reference to FFO and balance
sheet capacity, rather than valuation movements.
Further details regarding the dividend distribution and announcement can be
found in note 28 of the Annual Report and Accounts.
Summary
The Group delivered another year of resilient financial performance,
characterised by strong FFO growth, disciplined capital allocation and balance
sheet strength. Organic income growth across both platforms, supplemented by
accretive acquisitions, supported cash earnings progression despite continued
finance cost headwinds.
The Company's strong financial profile, along with its proven internal
operating platform, means the Company is fully capable of taking advantage of
opportunities that arise, adapting to changing market conditions, as evidenced
by our investment into properties with defence-related tenants. With
acquisition firepower available, further vacancy to develop and reversion
potential to capture, the Company looks forward to continuing to deliver
attractive and sustainable returns for shareholders in the future.
Chris Bowman
Chief Financial Officer
29 May 2026
Statement of Directors' responsibilities
The Directors are responsible for preparing the Annual Report and Accounts in
accordance with applicable law and regulations.
The Companies (Guernsey) Law, 2008 requires the Directors to prepare financial
statements for each financial year. Under that law, they have prepared the
financial statements in accordance with International Financial Reporting
Standards (IFRS) as issued by the IASB and applicable law.
Under The Companies (Guernsey) Law, 2008 the Directors must not approve the
financial statements unless they are satisfied that they give a true and fair
view of the state of affairs of the Group and of its profit or loss for that
period.
In preparing these financial statements, the Directors are required to:
• select suitable accounting policies in accordance with IAS 8
"Accounting Policies, Changes in Accounting Estimates and Errors" and then
apply them consistently;
• make judgements and accounting estimates that are reasonable and
prudent;
• present information, including accounting policies, in a manner
that provides relevant, reliable, comparable and understandable information;
• state that the Group has complied with IFRS as issued by the IASB,
subject to any material departures disclosed and explained in the financial
statements;
• provide additional disclosures when compliance with the specific
requirements of IFRS as issued by the IASB is insufficient to enable users to
understand the impact of particular transactions, other events and conditions
on the Group's financial position and performance; and
• prepare the Group's financial statements on a going concern basis,
unless it is inappropriate to do so.
The Directors are responsible for keeping adequate accounting records that are
sufficient to show and explain the Company's transactions and disclose with
reasonable accuracy at any time the financial position of the Company and
enable them to ensure that the Annual Report and Accounts complies with The
Companies (Guernsey) Law, 2008. They are responsible for such internal control
as they determine is necessary to enable the preparation of financial
statements that are free from material misstatement, whether due to fraud or
error, and have general responsibility for taking such steps as are reasonably
open to them to safeguard the assets of the Company and to prevent and detect
fraud and other irregularities.
Responsibility statement of the Directors in respect of the Annual Report and
Accounts
Each of the Directors confirm to the best of their knowledge:
• the financial statements, prepared in accordance with IFRS as
issued by the IASB, give a true and fair view of the assets, liabilities,
financial position and profit or loss of the Company and the undertakings
included in the consolidation taken as a whole; and
• the Strategic report includes a fair review of the development and
performance of the business and the position of the Company and the
undertakings included in the consolidation taken as a whole together with a
description of the principal risks and uncertainties that they face.
Each of the Directors confirm to the best of their knowledge that the Annual
Report and Accounts, taken as a whole, is fair, balanced and understandable
and provides the information necessary for shareholders to assess the Group's
position and performance, business model and strategy.
By order of the Board
Daniel Kitchen
Chair
29 May 2026
Declaration by Group Chief Executive Officer (CEO) and Chief Financial Officer
(CFO)
for the year ended 31 March 2026 (additional declaration as required by the
JSE Listings Requirements)
Each of the Directors, whose names are stated below, hereby confirm that:
(a) the annual financial statements set out on pages 125 to 165 fairly
present in all material respects the financial position, financial performance
and cash flows of the issuer in terms of IFRS;
(b) to the best of our knowledge and belief, no facts have been omitted or
untrue statements made that would make the annual financial statements false
or misleading;
(c) internal financial controls have been put in place to ensure that
material information relating to the issuer and its consolidated subsidiaries
have been provided to effectively prepare the financial statements of the
issuer;
(d) the internal financial controls are adequate and effective and can be
relied upon in compiling the annual financial statements and we have fulfilled
our role and function as Executive Directors with primary responsibility for
implementation and execution of controls;
(e) where we are not satisfied, we have disclosed to the Audit Committee
and the auditor any deficiencies in design and operational effectiveness of
the internal financial controls, and have remediated the deficiencies; and
(f) we are not aware of any fraud involving Directors.
Andrew Coombs
CEO
29 May 2026
Chris Bowman
CFO
29 May 2026
Principal Risks and Uncertainties
The principal risks and uncertainties faced by the Group are included on pages
55 to 57 of the Group's Annual Report and Accounts 2026 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
Notes 2026 2025
€m €m
Revenue 5 347.5 317.5
Direct costs 6 (146.1) (130.8)
Net operating income 201.4 186.7
Gain on revaluation of investment properties 13 110.6 79.4
(Loss)/gain on disposal of properties (0.5) 1.6
Movement in expected credit loss provision 1.5 (0.3)
Administrative expenses 6 (63.0) (53.9)
Share of profit of associates 19 4.7 2.4
Operating profit 254.7 215.9
Finance income 9 15.3 13.9
Finance expense 9 (58.6) (28.2)
Net finance expense (43.3) (14.3)
Profit before tax 211.4 201.6
Taxation income/(expense) 10 18.4 (23.4)
Profit for the year after tax 229.8 178.2
Profit attributable to:
Owners of the Company 229.6 178.1
Non-controlling interest 0.2 0.1
229.8 178.2
Earnings per share
Basic earnings per share 11 15.16c 12.20c
Diluted earnings per share 11 14.86c 12.02c
All operations of the Group have been classified as continuing.
Consolidated statement of comprehensive income
for the year ended 31 March
Notes 2026 2025
€m €m
Profit for the year after tax 229.8 178.2
Items that may be reclassified to profit or loss in subsequent periods
Foreign currency translation 27 (24.0) 13.4
(24.0) 13.4
Other comprehensive (expense)/income for the year after tax (24.0) 13.4
Total comprehensive income for the year after tax 205.8 191.6
Total comprehensive income attributable to:
Owners of the Company 205.6 191.5
Non-controlling interest 0.2 0.1
205.8 191.6
Consolidated statement of financial position
at 31 March
Notes 2026 2025
€m €m
Non-current assets
Investment properties 13 2,960.5 2,488.1
Plant and equipment 15 19.3 17.8
Intangible assets 16 1.6 1.7
Right of use assets 17 8.9 10.8
Other financial assets 18 47.3 49.1
Investment in associates 19 30.1 26.1
Deferred tax assets 10 4.1 4.1
Total non-current assets 3,071.8 2,597.7
Current assets
Trade and other receivables 20 48.4 70.2
Cash and cash equivalents 21 410.2 604.8
Total current assets 458.6 675.0
Assets held for sale 14 30.0 -
Total assets 3,560.4 3,272.7
Current liabilities
Trade and other payables 22 (130.8) (117.7)
Interest-bearing loans and borrowings 23 (397.2) (0.4)
Lease liabilities 17 (2.2) (2.4)
Current tax liabilities 10 (2.5) (7.0)
Total current liabilities (532.7) (127.5)
Non-current liabilities
Interest-bearing loans and borrowings 23 (1,022.0) (1,318.6)
Lease liabilities 17 (29.9) (33.6)
Deferred tax liabilities 10 (84.3) (103.4)
Total non-current liabilities (1,136.2) (1,455.6)
Total liabilities (1,668.9) (1,583.1)
Net assets 1,891.5 1,689.6
Equity
Issued share capital 26 - -
Other reserve 27 694.0 696.2
Own shares held 26 (10.2) (8.5)
Foreign currency translation reserve 27 (16.6) 7.4
Retained earnings 1,223.4 993.7
Total equity attributable to the owners of the Company 1,890.6 1,688.9
Non-controlling interest 0.9 0.7
Total equity 1,891.5 1,689.6
The financial statements on pages 125 to 165 were approved by the Board of
Directors on 29 May 2026 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
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
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 26 185.0 (4.1) - - - 180.9 - 180.9
Transaction costs relating to share issues (6.3) - - - - (6.3) - (6.3)
Dividends paid 28 - (84.5) - - - (84.5) - (84.5)
Transfer of share capital 26 (178.7) 178.7 - - - - - -
Share-based payment transactions 8 - 6.5 - - - 6.5 - 6.5
Shares withheld to settle employee tax obligations 8 - (3.8) - - - (3.8) - (3.8)
Own shares purchased 26 - - (2.7) - - (2.7) - (2.7)
Own shares allocated 26 - (2.3) 2.3 - - - - -
At 31 March 2025 - 696.2 (8.5) 7.4 993.8 1,688.9 0.7 1,689.6
Profit for the year - - - - 229.6 229.6 0.2 229.8
Other comprehensive expense for the year - - - (24.0) - (24.0) - (24.0)
Total comprehensive income for the year - - - (24.0) 229.6 205.6 0.2 205.8
Shares issued 26 90.6 (2.3) - - - 88.3 - 88.3
Transaction costs relating to share issues 26 (2.4) - - - - (2.4) - (2.4)
Dividends paid 28 - (96.5) - - - (96.5) - (96.5)
Transfer of share capital 26 (88.2) 88.2 - - - - - -
Share-based payment transactions 8 - 10.2 - - - 10.2 - 10.2
Shares withheld to settle employee tax obligations 8 - (1.3) - - - (1.3) - (1.3)
Own shares purchased 26 - 0.2 (2.4) - - (2.2) - (2.2)
Own shares allocated 26 - (0.7) 0.7 - - - - -
At 31 March 2026 - 694.0 (10.2) (16.6) 1,223.4 1,890.6 0.9 1,891.5
Consolidated statement of cash flows
for the year ended 31 March
Notes 2026 2025
€m €m
Operating activities
Profit for the year before tax 211.4 201.6
Loss/(gain) on disposal of properties 0.5 (1.6)
Loss on disposal of plant and equipment - 0.1
Net foreign exchange differences in working capital 13.2 (4.1)
Share-based payments expenses 8 10.2 6.5
Gain on revaluation of investment properties 13 (110.6) (79.4)
Depreciation of plant and equipment 6 2.2 2.4
Amortisation of intangible assets 6 0.7 1.3
Loss on disposal of intangible assets 16 - 1.2
Expected credit loss (1.5) -
Depreciation of right of use assets 6 1.7 1.8
Share of profit of associates 19 (4.7) (2.4)
Finance income 9 (15.3) (13.9)
Finance expense 9 45.4 28.2
Changes in working capital
(Increase)/decrease in trade and other receivables (9.7) 0.3
Increase/(decrease) in trade and other payables 3.4 (2.1)
Cash generated from operations before tax 146.9 139.9
Taxation paid (6.3) (6.8)
Cash flows from operating activities 140.6 133.1
Investing activities
Purchase of investment properties (330.3) (141.5)
Prepayments relating to investment property acquisitions (5.3) (38.5)
Capital expenditure on investment properties (50.1) (48.8)
Purchase of plant and equipment and intangible assets (4.6) (13.2)
Proceeds on disposal of properties (including investment properties held for 5.0 19.7
sale when applicable)
Dividends received from investment in associates 0.7 1.5
Decrease in other financial assets (deposits) 0.6 -
Interest received 15.5 13.7
Cash flows used in investing activities (368.5) (207.1)
Financing activities
Proceeds from issue of share capital 26 88.3 180.9
Transaction costs on issue of shares 26 (2.4) (6.3)
Shares purchased - (2.7)
Payment relating to exercise of share options 8 (1.3) (3.8)
Dividends paid to owners of the Company 28 (89.9) (84.5)
Proceeds from interest-bearing loans and borrowings 23 105.0 409.9
Repayment of interest-bearing loans and borrowings 23 (5.7) (19.7)
Payment of principal portion of lease liabilities (2.4) (2.3)
Capitalised loan issue costs (7.7) (19.5)
Finance charges paid (36.0) (22.9)
Cash flows from financing activities 47.9 429.1
(Decrease)/increase in cash and cash equivalents (180.0) 355.1
Net foreign exchange differences (14.6) 5.5
Cash and cash equivalents at the beginning of the year 604.8 244.2
Cash and cash equivalents at the year end 21 410.2 604.8
Notes to the financial statements
for the year ended 31 March 2026
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 prime 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 2026.
The principal activity of the Group is the investment in, and development of,
industrial, warehouse, office properties and storage spaces 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 and investment properties held for
sale, that 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 2025, except for the changes in accounting policies as
shown in (b) below.
(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 2025 (unless otherwise stated).
• Amendments to IAS 21 - Lack of exchangeability.
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:
Effective for annual periods beginning on or after 1 January 2026:
• 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; and
• Annual Improvements to IFRS Accounting Standards - Volume 11 -
Clarifications, simplifications, corrections or changes to improve consistency
in:
• IFRS 1 First-time Adoption of International Financial Reporting
Standards;
• IFRS 7 Financial Instruments: Disclosures and its accompanying
Guidance on implementing IFRS 7;
• IFRS 9 Financial Instruments;
• IFRS 10 Consolidated Financial Statements; and
• IAS 7 Statements of Cash Flows.
Effective for annual periods beginning on or after 1 January 2027:
• Amendments to IAS 21 - Translation to a hyperinflationary
presentation currency;
• IFRS 19 Subsidiaries without Public Accountability; and
• 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. IFRS 18 replaces IAS 1 Presentation
of Financial Statements and becomes effective for periods beginning on, or
after, 1 January 2027 and will apply to comparative information. It introduces
new requirements for the structure of the income statement, including
classification of income and expenses into newly prescribed categories, which
may affect the presentation of operating profit. The standard also introduces
additional disclosure requirements for management-defined performance measures
(MPMs). The Group is currently assessing the impact of the new standard on its
consolidated financial statements and expects changes primarily related to
presentation and disclosures.
(c) Going concern
The Directors have assessed the Group's financial position, cash flow
forecasts and principal risks and uncertainties in determining whether it is
appropriate to prepare the financial statements on a going concern basis.
The Directors have assessed the Group's going concern for the period to
31 October 2027 (the "going concern period"), a period greater than twelve
months, chosen to align with its historical application of the period and to
cover all upcoming subsidiary audits of the Group. In performing this
assessment, the Directors have considered the Group's forecast profitability,
liquidity, the timing of debt maturities, covenant compliance and the
potential impact of external events which could adversely affect the Group's
operations.
The Directors have considered a base case forecast together with a severe but
plausible downside scenario. The base case reflects the Group's expected
operational performance, and the downside scenario applies a combination of
stresses to the base case assumptions, including reductions in occupancy and
rental income, increased irrecoverable service charge costs, elevated
inflation costs on operating costs which are not recovered from tenants and
reductions in property values. These stresses are designed to capture the
plausible risk scenarios facing the Group as a result of adverse macroeconomic
conditions, tenant distress and cost volatility which could impact the Group's
cash flows, profitability and impact on key covenants.
The assessment also considers geopolitical uncertainty and energy market
volatility. In this context, the Group's exposure to utility cost inflation is
mitigated through a combination of executed price fixing arrangements,
contractual recovery mechanisms and the application of explicit service charge
recovery stresses within the downside scenario.
The base case and severe but plausible downside scenarios include the
following assumptions applied to the portfolio:
• 5.5% growth per annum in rent roll at 31 March 2026, principally
from contractual increases in rents and organic growth through lease renewals;
• increasing cost levels in line with forecast inflation;
• continuation of forecast investment programs;
• continuation of forecast dividend payments in line with historical
dividend payouts and UK REIT requirements;
• payment of contractual loan interest and loan amortisation
amounts, as well as repayment of the €400.0m corporate bond due June 2026;
and
• only acquisitions and disposals which are contractually committed
or Board approved are made, which includes two post balance sheet acquisitions
amounting to €143.7m and one disposal amounting to €30.0m.
Severe but plausible downside scenario:
• 10% reduction in occupancy and rental income per annum from base
assumptions;
• 10% per annum reduction in service charge recovery (i.e. higher
irrecoverable) from base assumptions;
• 10% reduction in property valuations per annum; and
• cost inflation above that forecasted.
In both the base case and the severe but plausible downside scenario, the
Group is forecast to maintain sufficient liquidity to meet its liabilities as
they fall due throughout the going concern period and to remain above its
minimum working capital requirements at all times. No financial covenant
breaches occurred during the financial year and there are no forecast breaches
in either scenario.
The forecasts do not rely on the completion of any uncommitted refinancing,
equity issuance or asset disposals. In addition, the Directors have considered
the availability of mitigating actions within management control, including
the reduction or deferral of discretionary capital expenditure and
discretionary dividends, which would provide further available liquidity but
are not forecast to be required to support the going concern conclusion in the
base case and severe but plausible downside scenarios.
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 2026 of 31.4%, before there was a loan to value covenant breach,
whilst a reduction of 29.8% of EBITDA and 40.7% reduction in contracted rent
roll would be required before any income related covenants would breach. The
likelihood of these reductions materialising is remote.
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 2027, 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 at 31 March 2026. 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(x)). 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, which is typically over
time because the tenants simultaneously receive and consume the benefits
provided by the Group. The Group applies the time elapsed method to measure
progress.
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. The performance
obligation is satisfied over time because the associates simultaneously
receive and consume the benefits provided by the Group. The Group applies the
time elapsed method to measure progress.
(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 future 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
are 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 a
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 administrative
expenses. 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 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) Assets held for sale
Investment properties held for sale
Investment properties held for sale are separately disclosed at the asset's
fair value. In order for an investment property held for sale to be
recognised, the following conditions must be met:
• the asset must be available for immediate sale in its present
condition and location;
• the asset is being actively marketed;
• the asset's sale is expected to be completed within twelve months
of classification as held for sale;
• there must be no expectation that the plan for selling the asset
will be withdrawn or changed significantly; and
• the successful sale of the asset must be highly probable.
(t) 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.
(u) Trade payables
Trade payables are initially measured at fair value and are subsequently
measured at amortised cost, using the effective interest rate method.
(v) Equity instruments
Equity instruments issued by the Company are recorded at the proceeds
received, net of direct issue costs.
(w) 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 2026 will
be approved and recognised in the financial year ending 31 March 2027.
(x) 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 profit or loss of the associate, less received
dividend and any impairment in the value of individual investments.
(y) 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 the EPRA metrics which are relevant to
the Group, which include EPRA earnings, EPRA net asset value metrics and EPRA
loan to value, which are widely used metrics that provide additional
information 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
25 includes a calculation of EPRA loan to value ratio.
(ii) Headline earnings disclosure required by the JSE
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
earnings and headline earnings.
(iii) Other disclosures
The Directors have chosen to disclose funds from operations (FFO) 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 FFO is included within
note 4.
The Directors have chosen to disclose adjusted net asset value in order to
assist in comparisons with similar businesses; a reconciliation between net
asset value and adjusted net asset value is included within note 12.
The Directors have chosen to disclose net loan to value in order to help
assess risk; a calculation of net loan to value is included within note 25.
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 presented within assets
held for sale)
The fair value of the Group's owned investment properties was determined by
Cushman & Wakefield LLP (2025: 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 delivering its potential net zero pathway for
the German portfolio to 2045 benchmarked against 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
Targets initiative (SBTi), its updated assessment of exposure to, and
mitigation of, climate-related physical risk, as well as aligning with the
current 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 operating segment, which comprises the aggregate of
properties each of Germany and the UK, is provided to the chief operating
decision maker, namely the Company Board of Directors and the Executive
Committee members.
These aggregations are also considered to be the reportable segments as they
have similar economic characteristics. 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.
Year ended Year ended
31 March 2026 31 March 2025
Germany UK Total Germany UK Total
€m €m €m €m €m €m
Rental income from investment properties 149.1 56.2 205.3 134.1 47.8 181.9
Total rental income 149.1 56.2 205.3 134.1 47.8 181.9
Other income from investment properties 5.2 4.7 9.9 8.6 3.3 11.9
Service charge income from investment properties 81.1 35.3( )((1)) 116.4 71.1 33.3 (1) 104.4
Other income from managed properties 4.7 - 4.7 5.5 - 5.5
Service charge income from managed properties 11.2 - 11.2 13.8 - 13.8
Total revenue from contracts with customers 102.2 40.0 142.2 99.0 36.6 135.6
Revenue 251.3 96.2 347.5 233.1 84.4 317.5
Service charge costs relating to investment properties (90.7) (29.7) (120.4) (81.4) (25.8) (107.2)
Costs relating to managed properties (15.5) - (15.5) (15.2) - (15.2)
Non-recoverable maintenance costs (4.3) (5.9) (10.2) (4.3) (4.1) (8.4)
Direct costs (110.5) (35.6) (146.1) (100.9) (29.9) (130.8)
Net operating income 140.8 60.6 201.4 132.2 54.5 186.7
Gain/(loss) on revaluation of investment properties 109.5 1.1 110.6 86.2 (6.8) 79.4
(Loss)/gain on disposal of properties (0.7) 0.2 (0.5) (0.1) 1.7 1.6
Movement in expected credit loss provision 1.7 (0.2) 1.5 (0.2) (0.1) (0.3)
Employee costs (15.7) (11.8) (27.5) (13.9) (8.0) (21.9)
Depreciation and amortisation (3.3) (1.3) (4.6) (3.7) (1.8) (5.5)
Other administrative expenses (27.2) (3.7) (30.9) (19.2) (7.3) (26.5)
Share of profit of associates 4.7 - 4.7 2.4 - 2.4
Operating profit 209.8 44.9 254.7 183.7 32.2 215.9
Bank interest income 11.7 1.3 13.0 10.9 0.8 11.7
Finance income from associates 2.3 - 2.3 2.2 - 2.2
Amortisation of capitalised loan issue costs (8.4) - (8.4) (3.3) - (3.3)
Other finance expense (45.9) (4.3) (50.2) (20.6) (4.3) (24.9)
Net finance expense (40.3) (3.0) (43.3) (10.8) (3.5) (14.3)
Segment profit before tax 169.5 41.9 211.4 172.9 28.7 201.6
Taxation income/(expense) 16.3 2.1 18.4 (22.6) (0.8) (23.4)
Segment profit after tax 185.8 44.0 229.8 150.3 27.9 178.2
(1) Includes €28.2m (2025: €26.2m) 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 2026 31 March 2025
Germany UK Total Germany UK Total
€m €m €m €m €m €m
Segment profit for the year after tax 185.8 44.0 229.8 150.3 27.9 178.2
Adjustments for:
(Gain)/loss on revaluation of investment properties (109.5) (1.1) (110.6) (86.2) 6.8 (79.4)
Adjustment in respect of long-term leasehold liabilities (0.5) (0.0) (0.5) (1.3) - (1.3)
Loss/(gain) of disposals of properties 0.7 (0.2) 0.5 0.1 (1.7) (1.6)
Gain on revaluation of investment property from associates and related tax (1.2) - (1.2) (0.1) - (0.1)
Other expenses not included in FFO 0.5 - 0.5 0.6 - 0.6
Share-based payments 10.2 - 10.2 6.5 - 6.5
Foreign exchange effects 13.8 - 13.8 (4.1) - (4.1)
Depreciation and amortisation (excluding depreciation relating to right of use 1.8 1.1 2.9 2.2 1.5 3.7
assets)
Amortisation of capitalised loan issue costs 8.4 - 8.4 3.3 - 3.3
Adjustment in respect of IFRS 16 - (0.1) (0.1) 0.8 0.0 0.8
Adjustment for total deferred tax(1) (19.1) (1.1) (20.2) 16.8 (0.2) 16.6
Funds from operations 90.9 42.6 133.5 88.9 34.3 123.2
(1) This is total deferred tax income or expense as detailed in note 10.
For more information on funds from operations and the adjusting items, refer
to Annex 1 - Table A.
2026 2025
Germany UK Total Germany UK Total
€m €m €m €m €m €m
Segment assets
Investment properties 2,187.9 772.6 2,960.5 1,899.1 589.0 2,488.1
Investment in associates 30.1 - 30.1 26.1 - 26.1
Other non-current assets(1) 21.5 8.3 29.8 21.1 9.2 30.3
Total segment non-current assets 2,239.5 780.9 3,020.4 1,946.3 598.2 2,544.5
(1) Consists of plant and equipment, intangible assets and right of use
assets.
5. Revenue
Year ended Year ended
31 March 2026 31 March 2025
€m €m
Rental income from investment properties 205.3 181.9
Total rental income 205.3 181.9
Other income from investment properties 9.9 11.9
Service charge income from investment properties(1) 116.4 104.4
Other income from managed properties 4.7 5.5
Service charge income from managed properties 11.2 13.8
Total revenue from contracts with customers 142.2 135.6
Revenue 347.5 317.5
(1) Includes €28.2m (2025: €26.2m) 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 incurs 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 2026 31 March 2025
€m €m
Service charge costs relating to investment properties 120.4 107.2
Costs relating to managed properties(1) 15.5 15.2
Non-recoverable maintenance costs 10.2 8.4
Direct costs 146.1 130.8
(1) Costs related to managed properties comprise service charge expenses
incurred on behalf of the managed properties as well as allocated overhead
costs associated with administering and operating those properties.
Administrative expenses
Year ended Year ended
31 March 2026 31 March 2025
€m €m
Audit and non-audit fees to audit firm 1.5 2.3
Legal and professional fees 4.8 8.9
Other administration costs 9.8 (1) 4.8
Share-based payments 10.2 6.5
Payroll and staff related costs 27.5 21.9
Director fees and expenses 0.8 0.7
Depreciation of plant and equipment (see note 15) 2.2 2.4
Amortisation of intangible assets (see note 16) 0.7 1.3
Depreciation of right of use assets (see note 17) 1.7 1.8
Marketing 3.3 2.7
Other expenses not included in FFO(2) 0.5 0.6
Administrative expenses 63.0 53.9
(1) Unrealised net foreign exchange difference has been reclassed to other
finance costs in note 9.
(2) This is mostly legal case costs relating to the legal case mentioned
in note 22.
Other administration costs include net foreign exchange loss of €0.6m as a
result of decreasing British pound sterling (GBP) rates throughout the year
(2025: €4.1m 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 2026 31 March 2025
€m €m
Audit fees to audit firm:
Audit of consolidated financial statements 1.1 1.2
Audit of subsidiary undertakings 0.3 0.3
Total audit fees 1.4 1.5
Audit related assurance services 0.1 0.8
Total fees for non-audit services 0.1 0.8
Total fees 1.5 2.3
7. Employee costs and numbers
Year ended Year ended
31 March 2026 31 March 2025
€m €m
Wages and salaries 35.4 33.3
Social security costs 5.5 5.1
Defined contribution pension scheme 0.5 0.4
Share-based payments 10.2 6.5
Other employment costs 0.7 0.9
Total 52.3 46.2
The above employee costs are costs recognised in both administrative expenses
of €47.0m (2025: €41.3m) and direct costs of €5.3m (2025: €4.9m).
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 Coöperatief B.A. The average number of people employed by
the Group during the year was 470 (2025: 459), expressed in full-time
equivalents. In addition, at 31 March 2026, the Board of Directors consists of
seven Non-Executive Directors (2025: six) and two Executive Directors (2025:
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:
July 2024 July 2025
grant grant
Share price at grant date - € 1.13 1.09
Exercise price - € nil nil
Expected volatility(1) - % 30.5 27.1
Expected life - years 2.82 2.89
Expected dividend yield(2) - % nil nil
Risk-free rate based on European treasury bonds rate of return - % 2.53 p.a. 1.92 p.a.
Fair value per share (TNR)(3) - € 1.13 1.12
Fair value per share (TSR)(4) - € 0.62 0.71
Weighted average fair value of share - € 0.96 0.98
Number of share awards granted 6,897,473 9,140,600
(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) The dividend yield has been set to nil as there is an intention to pay
dividend equivalents on the awards granted.
(3) 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%.
(4) 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.
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 during the
current and prior reporting periods:
July 2024 July 2024 (UK) July 2024 (UK align) July 2025
grant grant grant grant
Share price at grant date - € 1.13 1.13 1.13 1.09
Exercise price - € n/a n/a n/a nil
Expected volatility(1) - % 30.5 30.5 30.5 27.1
Expected life - years 2.92 3.59 1.59 2.89
Expected dividend yield(2) - % nil nil nil nil
Risk-free rate based on European treasury bonds rate of return - % 2.53 p.a. 2.53 p.a. 3.14 p.a. 1.92 p.a.
Fair value per share (TNR)(3) - € 1.13 1.13 1.13 1.12
Fair value per share (TSR)(4) - € 0.70 0.62 0.94 0.71
Weighted average fair value of share - € 0.99 0.96 1.07 0.98
Number of share awards granted 3,854,000 2,360,750 480,000 1,972,200
(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) The dividend yield has been set to nil as there is an intention to pay
dividend equivalents on the awards granted.
(3) 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%.
(4) 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.
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 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.
EMSP
In May 2025 the new equity-settled Employee Matching Share Plan (EMSP) was
launched which allows eligible employees to purchase shares in the market
which are held by the Employee Benefit Trust (partnership shares) annually
and, after three years' service (or on leaving employment if allowable),
receive free matching shares at one for one.
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 2026 31 March 2025
€m €m
LTIP 6.2 3.2
SIP 3.0 2.4
DBP 0.9 0.9
EMSP 0.1 -
Total 10.2 6.5
An amount of €10.2m (2025: €6.5m) is recognised in the other reserve as
per the consolidated statement of changes in equity. In addition, an amount of
€1.3m (2025: €3.8m) 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 2026 31 March 2025
Number of Number of
share awards share awards
Balance outstanding at the beginning of the year (nil exercisable) 25,142,207 19,260,260
Maximum granted 12,394,395 14,505,055
Forfeited (159,947) (861,044)
Exercised (1,985,187) (3,531,554)
Shares surrendered to cover employee tax obligations (849,469) (2,835,123)
Expired (1,053,159) (1,395,387)
Balance outstanding at year end (nil exercisable) 33,488,840 25,142,207
The weighted average remaining contractual life for the share awards
outstanding at year end was 1.38 years (2025: 1.43 years). The exercise price
for share awards exercised during the reporting period and outstanding at year
end was €nil (2025: €nil).
The following table details the vesting of share awards between each plan:
Year ended Year ended
31 March 2026 31 March 2025
LTIP SIP DBP EMSP Total LTIP SIP DBP EMSP Total
Shares exercised 1,318,254 226,953 438,449 1,531 1,985,187 1,482,979 1,792,827 255,748 - 3,531,554
Weighted average share price - € 1.15 1.15 1.15 1.13 1.15 1.18 1.13 1.18 - 1.15
Shares surrendered to cover employee tax obligations 534,270 198,224 116,287 688 849,469 1,291,178 1,321,479 222,466 - 2,835,123
Amount paid for the participants' tax liabilities - €m 0.7 0.4 0.2 0.0 1.3 1.6 1.9 0.3 - 3.8
9. Finance income and finance expense
Year ended Year ended
31 March 2026 31 March 2025
€m €m
Bank interest income 13.0 11.7
Finance income from associates 2.3 2.2
Finance income 15.3 13.9
Bank loan interest expense (35.6) (23.5)
Interest expense related to lease liabilities (see note 17) (1.0) (1.1)
Amortisation of capitalised loan issue costs (8.4) (3.3)
Total interest expense (45.0) (27.9)
Bank charges (0.4) (0.3)
Net foreign exchange difference (13.2) ((1)) -
Other finance costs (13.6) (0.3)
Finance expense (58.6) (28.2)
Net finance expense (43.3) (14.3)
(1) This is the unrealised net foreign currency translation loss on
monetary assets held in foreign currency.
10. Taxation
Consolidated income statement
Year ended Year ended
31 March 2026 31 March 2025
€m €m
Current income tax
Current income tax expense (4.8) (5.8)
Adjustments in respect of prior periods(1) 3.0 (1.0)
Total current income tax expense (1.8) (6.8)
Deferred tax
Relating to origination and reversal of temporary differences (20.0) (20.7)
Relating to recognition of deferred tax assets on tax losses - 4.1
Relating to effects from enacted future changes of German tax rate(1) 40.2 -
Total deferred tax income/(expense) 20.2 (16.6)
Income tax income/(expense) 18.4 (23.4)
(1) For detailed explanation of these line items see the below
reconciliation table.
The German corporation tax rate of 15.825% is used in the tax reconciliation
for the Group. The German corporation tax rate is the most appropriate rate to
use as the majority of profits are allocated to Germany. 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 2026 31 March 2025
€m €m
Profit before tax 211.4 201.6
Current tax using the German corporation tax rate of 15.825% (2025: 15.825%) 33.5 31.9
Effects of:
Deductible interest on internal financing(1) (5.5) (4.9)
Tax exempt gain from selling of investments and dividends(2) (0.7) (0.4)
Non-deductible expenses(3) 2.2 1.0
Change in unrecognised deferred tax - tax effect of utilisation of tax losses (2.4) (3.8)
not previously recognised
Adjustments in respect of prior periods(4) (3.0) 1.0
German trade tax - 0.6
Tax exempt income under UK REIT regime(5) (7.2) (6.0)
Difference in foreign tax rates(6) 4.9 4.0
Effects from enacted future changes of German tax rate(7) (40.2) -
Total income tax (income)/expense (18.4) 23.4
(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.
(3) Non-deductible expenses include inter alia adviser and corporate fees,
depreciation and bonus expenses as well as non-deductible interest expenses
under the UK Corporate Interest Restriction rules.
(4) The prior year's adjustments were made to reflect potential tax
exposures from tax audits for prior financial years. In the current year, the
Group benefits from tax reliefs resulting from immediate depreciation of capex
and effects from group relief, based on the tax returns filed for prior years.
(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. A UK REIT is not subject to taxation on its UK property rental
business if it pays Property Income Distributions (PID) of at least 90% of the
taxable profits from its UK property rental business within twelve months of
the end of each accounting period.
(6) As the UK corporation tax rate at 31 March 2026 was 25% (2025: 25%),
this item shows the difference between this rate and the German corporation
tax rate of 15.825% used in the above reconciliation.
(7) The changes in German tax legislation (see next page) and the
respective remeasurement of the deferred tax liability have led to a decrease
in the deferred tax liability by €40.2m at 31 March 2026. The decrease
reflects a one-off non-cash adjustment.
Deferred tax assets and liabilities
Recognised deferred tax assets and liabilities are attributable to the
following:
Consolidated statement Consolidated
of financial position
income statement
2026 2025 Year ended Year ended
€m €m 31 March 2026 31 March 2025
€m €m
Additions and release of deferred tax liabilities from acquisitions - - 1.1 -
Revaluation of owned investment property (102.0) (126.7) 24.7 ((1)) (19.4)
Lease incentives (0.5) (0.7) 0.2 (0.0)
Fixed asset temporary differences - 0.1 (0.1) 0.1
Lease liabilities 1.4 3.3 (1.9) (0.3)
Right of use assets (1.1) (3.0) 1.9 0.4
Recognised tax losses offset against temporary differences 17.9 23.6 (5.7) (1.4)
Losses available for offsetting against future taxable income 4.1 4.1 - 4.0
Deferred tax income/(expense) 20.2 (16.6)
Net deferred tax liabilities (80.2) (99.3)
Reflected in the consolidated statement of financial position:
Deferred tax assets 4.1 4.1
Deferred tax liabilities (84.3) (103.4)
(1) Deferred tax liabilities attributable to revaluation of owned
investment properties decreased by €24.7m, which is mainly attributable to
the reduced German tax rate resulting in deferred tax liabilities decreasing
by €40.2m, as indicated in the first table above.
In the prior year, a deferred tax asset of €4.1m on available tax losses was
recognised in regard to the UK business. The Group expects to generate future
taxable profits which are not tax exempt under the UK REIT regime, allowing
the available carried forward losses to be recovered against those profits.
In July 2025, the "Act for an Immediate Tax-Based Investment Programme to
Strengthen Germany as Business Location" was enacted, reducing the German
corporate income tax rate by one percentage point per year from 15% down to
10% by 2032 (plus 5.5% solidarity surcharge). Deferred taxes relating to the
German business are therefore remeasured estimating the realisation of
properties over the reduction period 2028 to 2032.
The Group has not recognised a deferred tax asset on €94.3m (2025:
€104.8m) 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
(2025: €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.
The following is the analysis of the deferred tax balances (after offset) by
jurisdiction:
Assets Liabilities Net
2026 2025 2026 2025 2026 2025
€m €m €m €m €m €m
UK 4.1 4.1 - - 4.1 4.1
Germany 19.3 27.0 (103.6) (130.4) (84.3) (103.4)
Deferred tax assets/(liabilities) 23.4 31.1 (103.6) (130.4) (80.2) (99.3)
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
2026 2025 2026 2025 2026 2025
€m €m €m €m €m €m
UK - - - (1.1) - (1.1)
Germany - - (1.7) (5.4) (1.7) (5.4)
Cyprus - - (0.8) (0.5) (0.8) (0.5)
Current tax liabilities - - (2.5) (7.0) (2.5) (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 2026 31 March 2025
€m €m
Earnings attributable to the owners of the Company
Basic earnings 229.6( )((1)) 178.1
Diluted earnings 229.6( )((1)) 178.1
EPRA earnings 112.5 117.7
Diluted EPRA earnings 112.5 117.7
Headline earnings 99.3 117.7
Diluted headline earnings 99.3 117.7
Number of shares
Weighted average number of ordinary shares for the purpose of basic, EPRA and 1,514,459,087 1,460,013,616
headline earnings per share
Weighted average effect of grant of share awards 30,691,624 22,132,071
Weighted average number of ordinary shares for the purpose of diluted 1,545,150,711 1,482,145,687
earnings, diluted EPRA earnings and diluted headline earnings per share
Earnings per share
Basic earnings per share 15.16c 12.20c
Diluted earnings per share 14.86c 12.02c
EPRA earnings per share 7.43c 8.06c
Diluted EPRA earnings per share 7.28c 7.94c
Headline earnings per share 6.56c 8.06c
Diluted headline earnings per share 6.43c 7.94c
(1) Basic earnings and diluted earnings increased by €51.5m, which is
mainly attributable to the reduced German tax rate resulting in deferred tax
liabilities decreasing by €40.2m. Refer to note 10.
For the calculation of basic, headline, EPRA and diluted earnings per share
the number of shares does not include 9,296,302 own shares held (2025:
7,743,647 shares), which are held by an Employee Benefit Trust on behalf of
the Group.
EPRA earnings
Year ended Year ended
31 March 2026 31 March 2025
€m €m
Basic and diluted earnings attributable to owners of the Company 229.6 178.1
Deduct gain on revaluation of investment properties (110.6) (79.4)
Add loss/(deduct gain) on disposal of properties (net of related tax) 0.5 (1.6)
Deferred tax in respect of EPRA earnings adjustments (19.1) 20.6
Adjustments related to non-operating and exceptional items 13.2( )((1)) -
NCI relating to revaluation (net of related tax) 0.1 0.1
NCI relating to gain on disposal of properties (net of related tax) 0.0 0.0
Add loss/(deduct gain) on revaluation of investment property from associates 0.2 (0.8)
Tax in relation to the revaluation gains/losses on investment property from (1.4) 0.7
associates
EPRA earnings 112.5 117.7
(1) This is the unrealised net foreign currency translation loss on
monetary assets held in foreign currency.
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 2026 31 March 2025
Gross Net Gross Net
€m €m €m €m
Basic and diluted earnings attributable to owners of the Company 229.6 178.1
Deduct gain on revaluation of investment properties (110.6) (129.7)((1)) (79.4) (58.8)
Add loss/(deduct gain) on disposal of properties 0.5 0.5 (1.6) (1.6)
NCI relating to revaluation 0.1 0.1 0.1 0.1
NCI relating to gain on disposal of properties 0.0 0.0 0.0 0.0
Add loss/(deduct gain) on revaluation of investment property from associates 0.2 (1.2) (0.8) (0.1)
Headline earnings 99.3 117.7
(1) This amount includes €40.2m attributable to the reduced German tax
rate. Refer to note 10.
12. Net asset value per share
2026 2025
€m €m
Net asset value
Net asset value for the purpose of assets per share (total equity attributable 1,890.6 1,688.9
to the owners of the Company)
Net deferred tax liabilities (see note 10) 80.2 99.3
Adjusted net asset value attributable to the owners of the Company 1,970.8 1,788.2
Number of shares
Number of ordinary shares for the purpose of net asset value per share and 1,579,369,538 1,504,113,743
adjusted net asset value per share
Effect of grant of share awards 33,488,840 25,142,207
Number of ordinary shares for the purpose of EPRA NRV, NTA and NDV per share 1,612,858,378 1,529,255,950
Net asset value per share 119.71c 112.29c
Adjusted net asset value per share 124.78c 118.89c
The number of shares does not include 9,296,302 shares own shares held (2025:
7,743,647 shares), which are held by an Employee Benefit Trust on behalf of
the Group.
2026 EPRA NRV EPRA NTA EPRA NDV
€m €m €m
Net asset value at year end (basic) 1,890.6 1,890.6 1,890.6
Diluted net asset value at fair value 1,890.6 1,890.6 1,890.6
Group
Deferred tax in respect of fair value movements on investment properties 84.3 83.7 ((1)) n/a
Intangible assets as per note 16 n/a (1.6) n/a
Fair value of fixed interest rate debt n/a n/a 84.9
Real estate transfer tax 228.9 n/a n/a
Investment in associates
Deferred tax in respect of fair value movements on investment properties 6.5 6.5 ((1)) n/a
Fair value of fixed interest rate debt n/a n/a 18.3
Real estate transfer tax 9.7 n/a n/a
Total EPRA NRV, NTA and NDV 2,220.0 1,979.2 1,993.8
EPRA NRV, NTA and NDV per share 137.64c 122.71c 123.62c
2025 EPRA NRV EPRA NTA EPRA NDV
€m €m €m
Net asset value 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
Deferred tax in respect of fair value movements on investment properties 103.3 103.3 (1) n/a
Intangible assets as per note 16 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
(1) The Group intends to hold onto the investment properties and has
excluded such deferred taxes for the whole portfolio at year end except for,
when applicable, deferred tax in relation to investment properties 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:
2026 2025
€m €m
Total investment properties at book value at the beginning of the year 2,488.1 2,210.6
Owned investment properties movements
Additions 369.9 148.5
Capital expenditure 50.0 51.9
Disposals (4.0) (14.3)
Reclassified as investment properties held for sale (see note 14) (30.0) -
Gain on revaluation 111.3 81.0
Adjustment in respect of lease incentives (0.2) (0.3)
Other movements
Adjustment in respect of long-term leasehold liabilities (0.5) (1.3)
Derecognition of long-term leasehold liabilities (0.8) -
Foreign exchange differences (23.3) 12.0
Total investment properties at book value at year end((1)) 2,960.5 2,488.1
(1) Excluding investment properties 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:
2026 2025
€m €m
Owned investment properties at market value per valuer's report(1) 2,943.8 2,469.4
Adjustment in respect of lease incentives separately recognised (4.4) (4.2)
Adjustment in respect of long-term leasehold liabilities separately recognised 21.1 22.9
Total investment properties at book value at year end((1)) 2,960.5 2,488.1
(1) Excluding investment properties 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 2026 31 March 2025
€m €m
Gain on revaluation of owned investment properties 111.3 81.0
Adjustment in respect of lease incentives (0.2) (0.3)
Adjustment in respect of long-term leasehold liabilities (0.5) (1.3)
Gain on revaluation of investment properties 110.6 79.4
Included in the loss or gain on revaluation of investment properties are gross
gains of €152.7m and gross losses of €42.1m (2025: gross gains of
€130.2m and gross losses of €50.8m).
Other than the capital commitments disclosed in note 31, 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.
Whilst the valuations were appropriate at 31 March 2026, changes to
macro-economic conditions could affect future valuations.
Owned investment properties
The fair value (market value) of the Group's owned investment properties at
year end has been arrived at on the basis of a valuation carried out at that
date by Cushman & Wakefield LLP (2025: 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 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.
2026 Market Market rental rate per sqm Discount factor Capitalisation factor Market growth
value € % % % p.a.
€m
Low High Weighted Low High Weighted Low High Weighted Low High Weighted
average average average average
Traditional business parks
Mature 450.4 2.92 9.15 6.57 4.4 6.5 4.8 4.9 7.5 5.7 1.0 1.0 1.0
Value add 822.4 3.14 8.46 5.71 4.4 7.3 5.7 5.4 8.0 6.5 1.0 1.0 1.0
Total traditional business parks 1,272.8 2.92 9.15 5.94 4.4 7.3 5.4 4.9 8.0 6.2 1.0 1.0 1.0
Modern business parks
Mature 267.9 4.80 11.21 8.88 4.3 6.4 4.8 5.2 6.8 5.7 1.0 1.0 1.0
Value add 339.1 4.70 21.25 7.36 4.6 6.8 5.5 4.6 7.3 6.4 1.0 1.0 1.0
Total modern business parks 607.0 4.70 21.25 7.88 4.3 6.8 5.2 4.6 7.3 6.1 1.0 1.0 1.0
Office
Mature 77.9 9.36 11.64 10.74 4.5 4.8 4.7 5.5 5.8 5.7 1.0 1.0 1.0
Value add 227.3 6.96 12.35 8.78 5.0 6.5 5.6 5.6 7.3 6.3 1.0 1.0 1.0
Total office 305.2 6.96 12.35 9.15 4.5 6.5 5.3 5.5 7.3 6.2 1.0 1.0 1.0
Total Germany (1) 2,185.0 2.92 21.25 6.73 4.3 7.3 5.3 4.6 8.0 6.2 1.0 1.0 1.0
(1) Excluding investment properties held for sale when applicable.
2026 Market Market rental rate per sqm Equivalent yield
value € %
€m
Low High Weighted average Low High Weighted average
Total mixed-use schemes 343.0 4.93 48.89 8.42 5.9 12.9 8.7
Total office 155.1 9.80 35.97 17.11 9.0 12.4 10.6
Total industrial 260.7 4.49 25.35 7.16 6.3 11.3 8.5
Total UK 758.8 4.49 48.89 8.99 5.9 12.9 9.1
2025 Market Market rental rate per sqm Discount factor Capitalisation factor Market growth
value € % % % p.a.
€m
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) 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
(1) Excluding investment properties held for sale when applicable.
2025 Market Market rental rate per sqm Equivalent yield
value € %
€m
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
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:
2026 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 1,272.8 62.4 (63.2) (25.6) 26.0 (29.9) 32.0 38.5 (37.9)
Total modern business parks 607.0 28.8 (29.0) (16.3) 8.3 (15.1) 16.0 14.3 (21.9)
Total office 305.2 16.1 (15.7) (6.0) 6.8 (7.1) 8.3 10.3 (9.3)
Market value Germany((1)) 2,185.0 107.3 (107.9) (47.9) 41.1 (52.1) 56.3 63.1 (69.1)
(1) Excluding investment properties held for sale when applicable.
2026 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 343.0 14.2 (14.2) (22.0) 25.0
Total office 155.1 6.4 (3.3) (5.5) 9.2
Total industrial 260.7 10.4 (9.5) (15.7) 19.4
Market value UK 758.8 31.0 (27.0) (43.2) 53.6
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) 1,894.9 91.4 (92.3) (37.2) 37.5 (44.2) 47.4 56.6 (55.5)
(1) Excluding investment properties held for sale when applicable.
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
The weighted average lease expiry remaining across the owned portfolio in
Germany at year end was 2.8 years (2025: 2.7 years). The weighted average
lease expiry remaining across the owned portfolio in the UK at year end was
2.2 years (2025: 1.4 years). Licence agreements in the UK are rolling and are
included in the valuation.
14. Assets held for sale
Investment properties held for sale
2026 2025
€m €m
Pfungstadt 30.0 -
Balance at year end 30.0 -
The disclosures regarding valuation in note 13 are also applicable to
investment properties held for sale.
Pfungstadt in the German reporting segment was a notarised disposal in May
2025 and is expected to complete in the second quarter of financial year
2026/2027. The disposal forms part of the Group's strategy to recycle capital
from a mature asset into investments with higher expected returns.
15. Plant and equipment
Plant and Fixtures Total
equipment and fittings €m
€m €m
Cost
At 31 March 2025 16.0 11.0 27.0
Additions in year 3.5 0.4 3.9
Disposals in year (0.0) (0.1) (0.1)
Foreign exchange differences (0.3) (0.2) (0.5)
At 31 March 2026 19.2 11.1 30.3
Depreciation
At 31 March 2025 (2.8) (6.4) (9.2)
Charge for year (1.3) (0.9) (2.2)
Disposals in year 0.0 0.1 0.1
Foreign exchange differences 0.1 0.2 0.3
At 31 March 2026 (4.0) (7.0) (11.0)
Net book value at 31 March 2026 15.2 4.1 19.3
Cost
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
At 31 March 2025 16.0 11.0 27.0
Depreciation
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)
At 31 March 2025 (2.8) (6.4) (9.2)
Net book value at 31 March 2025 13.2 4.6 17.8
16. Intangible assets
Software and Total
licences with €m
definite useful life
€m
Cost
At 31 March 2025 12.0 12.0
Additions in year 0.7 0.7
Disposals in year - -
Foreign exchange differences (0.1) (0.1)
At 31 March 2026 12.6 12.6
Amortisation
At 31 March 2025 (10.3) (10.3)
Charge for year (0.7) (0.7)
Disposals in year - -
Foreign exchange differences 0.0 0.0
At 31 March 2026 (11.0) (11.0)
Net book value at 31 March 2026((1)) 1.6 1.6
Cost
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
At 31 March 2025 12.0 12.0
Amortisation
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)
At 31 March 2025 (10.3) (10.3)
Net book value at 31 March 2025((1)) 1.7 1.7
(1) Included in the net book value is an amount of €1.1m relating to
intangible assets under development not yet amortised (2025: €0.6m). All
other development projects are expected to finalise in the next financial
year.
17. Right of use assets and lease liabilities
Set out below are the carrying amounts of right of use assets (excluding those
presented as investment properties) recognised and the movements during the
year:
Office Total
€m €m
At 31 March 2024 12.6 12.6
Depreciation expense (1.8) (1.8)
Foreign exchange differences 0.0 0.0
At 31 March 2025 10.8 10.8
Depreciation expense (1.7) (1.7)
Lease modifications (0.2) (0.2)
Foreign exchange differences (0.0) (0.0)
At 31 March 2026 8.9 8.9
Set out below are the carrying amounts of lease liabilities and the movements
during the year:
2026 2025
€m €m
Balance at the beginning of the year (36.0) (37.8)
Accretion of interest (1.0) (1.1)
Lease modifications 0.9 (0.1)
Payments 3.4 3.4
Foreign exchange differences 0.6 (0.4)
Total (32.1) (36.0)
Current lease liabilities (2.2) (2.4)
Non-current lease liabilities (29.9) (33.6)
The following table sets out the carrying amount, by maturity, of the Group's
lease liabilities:
2026 Within 1 year 1-5 years 5+ years Total
€m €m €m €m
Long-term leasehold(1) (0.3) (1.1) (19.7) (21.1)
Office (1.9) (7.5) (1.6) (11.0)
Total (2.2) (8.6) (21.3) (32.1)
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)
(1) These lease liabilities relate to right of use assets presented as
investment properties.
Maturity analysis of lease liabilities using contractual undiscounted payments
is disclosed in note 24.
The overall weighted average discount rate used for the year is 3.0% (2025:
2.9%).
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 (2025: €0.7m).
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 (2025: €3.4m) were incurred for the year and are included in the
cash flow from financing activities.
18. Other financial assets (non-current)
2026 2025
€m €m
Deposits 2.2 4.0
Loans to associates 45.1 45.1
Other financial assets 47.3 49.1
Loans to associates relate to shareholder loans granted to associates by the
Group. The loans terminate on 31 December 2031 and are charged at a fixed
interest rate of 5.0%. 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.
19. 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:
2026 2025
€m €m
Current assets 32.8 31.0
Non-current assets(1) 365.8 364.6
Current liabilities (17.9) (24.0)
Non-current liabilities (297.7) (302.0)
Equity 83.0 69.6
Unrecognised accumulated losses 3.1 5.0
Subtotal 86.1 74.6
Group's share in equity - 35% 30.1 26.1
(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 2026 31 March 2025
€m €m
Net operating income 28.4 24.8
Loss on revaluation of investment properties (3.5) (0.4)
Administrative expense (3.3) (5.0)
Operating profit 21.6 19.4
Net finance expense (8.8) (8.6)
Profit before tax 12.8 10.8
Taxation 2.6 (3.7)
Unrecognised profit (1.9) (0.3)
Total profit and comprehensive income for the year after tax 13.5 6.8
Group's share of profit for the year - 35% 4.7 2.4
Included within the non-current liabilities are shareholder loans amounting to
€128.8m (2025: €128.8m). At year end no contingent liabilities existed
(2025: none). The associates had contracted capital expenditure for
development and enhancements of €1.9m at year end (2025: €1.5m).
The following table illustrates the movement in investment in associates:
2026 2025
€m €m
Balance at the beginning of the year 26.1 25.2
Dividend received (0.7) (1.5)
Share of profit 4.7 2.4
Balance at year end 30.1 26.1
20. Trade and other receivables
31 March 2026 31 March 2025
€m €m
Gross trade receivables(1) 18.3 20.3
Expected credit loss provision(2) (6.6) (8.1)
Net trade receivables 11.7 12.2
Other receivables 28.9 17.2
Prepayments 7.8 40.8
Trade and other receivables 48.4 70.2
(1) The amount of trade receivables includes receivables from contracts
with customers of €8.4m (2025: €13.1m).
(2) The amount of expected credit loss provision includes expected credit
losses in relation to contracts with customers of €3.5m (2025: €5.4m).
Other receivables primarily include accrued income of €16.5m (2025:
€3.9m), which includes €13.5m of accrued service charge income. In the
prior year, accrued service charge income was presented within trade
receivables. Other receivables also includes lease incentives of €4.4m
(2025: €4.2m) and accrued income from associates of €2.4m (2025: €6.6m).
Based on the assessment the expected credit loss was immaterial for other
receivables.
Included in prepayments of €7.8m, there are €5.3m prepayments mainly
relating to the acquisition of a new site in Kiel, Germany. In the prior year,
there were €38.5m prepayments for acquisitions of new sites.
21. Cash and cash equivalents
2026 2025
€m €m
Cash at bank 156.1 68.4
Short-term investments 216.6 502.9
Cash restricted under contractual terms:
- Deposits for bank guarantees 3.1 3.1
- Deposits received from tenants 34.4 30.4
Cash and cash equivalents 410.2 604.8
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 are subject to an
insignificant risk of changes in value.
Deposits for bank guarantees represents cash balances placed with banks as
collateral for guarantees issued to suppliers. While these deposits are
subject to certain usage restrictions, they are classified as cash and cash
equivalents as they are maintained with banks and are readily convertible to
known amounts of cash upon the release or expiry of the related guarantees.
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.
22. Trade and other payables
2026 2025
€m €m
Trade payables 11.1 13.3
Accrued expenses 45.5 39.2
Provisions - 4.0
Interest payable 8.9 8.2
Tenant deposits 34.4 30.2
Unearned revenue 18.6 15.2
Other payables 12.3 7.6
Trade and other payables 130.8 117.7
The following table breaks down the balance of accrued expenses:
2026 2025
€m €m
Costs relating to service charge 22.2 18.1
Bonuses 8.2 8.6
Administrative costs 3.0 2.1
Capital expenditure 7.7 7.8
Other costs 4.4 2.6
Total 45.5 39.2
During the year, the Group settled a legal claim in relation to a property
which was sold during 2017 for €4.5m and the provision was utilised.
Unearned revenue includes contract liabilities representing service charge
amounts of €3.4m (2025: €2.3m). Contract liabilities relate to service
charges received in advance, reflecting consideration received for services to
be rendered in the subsequent month. 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 mainly in
relation to over collections of service charge in amount of €3.4m (2025:
€2.2m).
23. Interest-bearing loans and borrowings
Interest rate Loan maturity date 2026 2025
% €m €m
Current
Berlin Hyp AG 4.26 31 October 2030 2.9 2.7
Saarbrücken Sparkasse 3.264 (1) 30 October 2041 0.6 0.6
Deutsche Pfandbriefbank AG 4.25 31 December 2030 1.2 1.3
Corporate bond I 1.125 22 June 2026 400.0 -
Capitalised loan issue costs (7.5) (4.2)
397.2 0.4
Non-current
Berlin Hyp AG 4.26 31 October 2030 160.6 163.5
Saarbrücken Sparkasse 3.264 (1) 30 October 2041 11.5 12.1
Deutsche Pfandbriefbank AG 4.25 31 December 2030 53.1 55.4
Corporate bond I 1.125 22 June 2026 - 400.0
Corporate bond II 1.75 24 November 2028 464.9 359.9
Corporate bond III 4.00 22 January 2032 350.0 350.0
Capitalised loan issue costs (18.1) (22.3)
1,022.0 1,318.6
Total 1,419.2 1,319.0
(1) This facility has a fixed rate of 3.264% until 28 February 2030 at
which point a new interest rate can be negotiated.
All loans and borrowings are at a fixed interest rate.
The movement of loans and borrowings for the year comprised of €5.7m
repayment of loans, €105.0m loan drawdowns and €0.9m net movement of
capitalisation loan issue costs, being €7.7m new capitalised loan issue
costs and €8.6m amortisation of loan issue costs (2025: €19.8m, €409.9m
and €16.2m respectively).
The borrowings (excluding unamortised capitalised loan issue costs) are
repayable as follows:
2026 2025
€m €m
On demand or within one year 404.7 4.6
In the second year 4.8 404.7
In the third to tenth years inclusive 1,035.3 936.2
Total 1,444.8 1,345.5
The Group has pledged 15 (2025: 15) investment properties to secure several
separate interest-bearing debt facilities granted to the Group. The 15 (2025:
15) properties had a combined valuation of €604.5m at year end (2025:
€560.7m).
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 at year end.
Refer to note 2(c) where the Group discloses forecast covenant compliance with
regard to management's going concern assessment.
Loan details
No changes to the terms of the facilities listed below have occurred during
the current year unless otherwise indicated.
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 one
instalment on the final maturity date. This facility is secured over nine
property assets.
Saarbrücken Sparkasse
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. 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.
Corporate bond I
On 22 June 2021, the Group raised its inaugural corporate bond for €400.0m.
The bond is listed at the Luxembourg Stock Exchange, with the principal
balance coming due on 22 June 2026.
Corporate bond II
On 16 September 2025, the Group issued a bond tap of €105.0m to be
consolidated and form a single series with the €300.0m corporate bond issued
on 24 November 2021 and the €59.9m bond tap issued on 17 May 2024. The
consolidated corporate bond is listed at the Luxembourg Stock Exchange with
the principal balance coming due on 24 November 2028.
Corporate bond III
On 22 January 2025, the Group issued its third corporate bond for €350.0m.
The bond is listed at the Luxembourg Stock Exchange, with the principal
balance coming due on 22 January 2032.
Revolving credit facility
On 20 June 2025, the Group entered into an unsecured €150.0m revolving
credit facility (RCF) with ABN AMRO Bank N.V., BNP Paribas S.A., and HSBC
Continental Europe S.A. On 17 March 2026, the facility was amended to increase
the total facility amount to €300.0m, extend the facility's maturity to 16
March 2029, and add Barclays Bank PLC as an additional lender. All other terms
of the agreement remained unchanged.
The facility includes two one-year extension options at the lenders'
discretion and incorporates accordions allowing it to be upsized by up to an
additional €100.0m. At the reporting date, no amounts have been drawn down.
Drawdowns and repayments are at the Group's discretion, with each loan
repayable by the end of its lending period. The facility carries a floating
interest rate based on EURIBOR plus a margin linked to the Group's credit
rating, at the reporting date being 1.2%.
24. 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 (including deposits and excluding 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 ageing of trade receivables at the reporting date was:
2026 2025
Gross Impairment Gross Impairment
€m €m €m €m
0-30 days 4.9 (0.8) 6.9 (0.9)
31-120 days (past due) 2.2 (0.4) 1.5 (0.3)
More than 120 days 11.2 (5.4) 11.9 (6.9)
Total 18.3 (6.6) 20.3 (8.1)
The gross carrying amounts of trade receivables disclosed in the table above
represent the Group's maximum exposure to credit risk at the reporting date,
without taking into account any collateral held or other credit enhancements.
The Group holds collateral as credit enhancements in the form of bank
guarantees and tenant deposits. Bank guarantees are typically issued by
reputable financial institutions and are callable in the event of tenant
default. Tenant deposits represent cash deposits received from tenants at the
commencement of lease agreements and are held by the Group for the duration of
the lease term.
These credit enhancements are considered in measuring expected credit losses,
as they mitigate potential credit risk exposure. There were no significant
changes in the nature, quality or extent of collateral held during the
reporting period, nor were there changes in the Group's collateral policies.
For certain trade receivables, no loss allowance has been recognised because
the value of the related bank guarantees or tenant deposits is assessed to
fully cover the outstanding exposure.
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 €18.3m (2025: €20.3m) that are outstanding at the
reporting date for which the Group has provided impairment of €6.6m (2025:
€8.1m). These receivables are subject to lifetime ECL measurement in
accordance with IFRS 9. Although the balances are credit impaired, they
continue to be recognised as the Group expects to recover a portion of the
outstanding amounts.
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, trade receivables 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:
2026 Interest-bearing Trade Lease Total
loans (1) and other liabilities €m
€m payables €m
€m
Undiscounted amounts payable in:
6 months or less (411.7) (66.7) (1.6) (480.0)
6 months-1 year (29.3) - (1.6) (30.9)
1-2 years (36.5) - (2.9) (39.4)
2-5 years (750.4) - (9.1) (759.5)
5-10+ years (374.5) - (86.4) (460.9)
(1,602.4) (66.7) (101.6) (1,770.7)
Interest 157.6 - 69.5 227.1
(1,444.8) (66.7) (32.1) (1,543.6)
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)
(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. The majority of
the Group's denominated assets relate to cash balances.
At 31 March 2026, if the currency unit had weakened 5% against the GBP with
all other variables held constant, pre-tax profit for the year would have been
€8.9m (2025: €18.5m) lower. If the currency unit had strengthened 5%
against the GBP, with all other variables held constant, pre-tax profit would
have been €8.9m (2025: €18.5m) higher.
(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 interest-bearing loans and borrowings of the
Group have fixed interest rates and thus there is currently no exposure to
interest rate risk.
Fair values
Set out below is a comparison by category of carrying amounts and fair values
of the Group's financial instruments that are carried in the financial
statements at amortised cost but where the carrying value is not a reasonable
approximation to fair value (excluding any financial assets held for sale and
financial liabilities directly associated with financial assets held for sale
when applicable):
2026 2025
Fair value
hierarchy level
Carrying Fair Carrying Fair
amount value amount value
€m €m €m €m
Financial assets
Loans to associates 2 45.1 44.2 45.1 45.7
Financial liabilities
Interest-bearing loans and borrowings(1)
Fixed rate borrowings 2 1,444.8 1,359.0 1,345.5 1,259.7
(1) Excludes loan issue costs.
The fair values of the loans to associates and interest-bearing loans and
borrowings have been calculated based on a discounted cash flow model using
the prevailing market rates of interest at 31 March 2026.
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 categorised 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).
25. 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
2026 2025
€ €
Movement in adjusted NAV per share 5.90c 7.76c
Dividend paid per share, six months ended 30 September 3.18c 3.06c
Dividend paid per share, six months ended 31 March 3.09c 3.05c
Total 12.17c 13.87c
Adjusted NAV per share for prior year 118.89c 111.12c
Total shareholder accounting return 10.2% 12.5%
Net LTV
2026 2025
€m €m
Carrying amount of interest-bearing loans and borrowings 1,419.2 1,319.0
Unamortised capitalised loan issue costs 25.6 26.5
Less cash and cash equivalents (not including cash restricted under (372.7) (571.3)
contractual terms)
Total 1,072.1 774.2
Book value of owned investment properties(1) 2,969.4 2,465.2
Net LTV 36.1% 31.4%
(1) Includes investment properties held for sale when applicable.
EPRA LTV
Proportionate
consolidation
Group Investment Total
in associates
2026 €m €m €m
Interest-bearing loans and borrowings(1) 204.3 52.6 256.9
Corporate bonds 1,214.9 - 1,214.9
Net payables(2) 82.7 3.2 85.9
Cash and cash equivalents (410.2) (8.4) (418.6)
Net debt (a) 1,091.7 47.4 1,139.1
Investment properties 2,960.5 128.0 3,088.5
Assets held for sale 30.0 - 30.0
Plant and equipment 19.3 - 19.3
Intangible assets 1.6 - 1.6
Loan to associates 45.1 - 45.1
Total property value (b) 3,056.5 128.0 3,184.5
EPRA LTV (a/b) 35.7% 37.0% 35.8%
Proportionate
consolidation
Group Investment Total
in associates
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% 40.0% 30.4%
(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 and the UK REIT capital
requirements. There have been no breaches of the financial covenants of any
interest-bearing loans and borrowings in the current year (note 2(c)).
26. Issued share capital
Authorised Number Share
of shares capital
€m
Ordinary shares of no par value Unlimited -
At 31 March 2026 and 31 March 2025 Unlimited -
Issued and fully paid Number Share
of shares capital
€m
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 -
At 31 March 2025 1,504,113,743 -
Issued ordinary shares 76,808,450 88.3
Transfer of share capital to other reserve - (88.3)
Shares issued to Employee Benefit Trust (2,235,923) -
Shares allocated by the Employee Benefit Trust 683,268 -
At 31 March 2026 1,579,369,538 -
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 €88.3m on 17 February 2026, the Company
issued 75,490,196 ordinary shares at an issue price of £1.02, resulting in
the Company's overall issued share capital being 1,588,665,840 ordinary
shares. Costs associated with the equity raise amounted to €2.4m. The net
proceeds of the equity raise were €85.9m.
In addition, during the year the Company issued 1,318,254 (2025: 1,482,979)
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 2,235,923 shares were acquired and 683,268 were allocated by
the Employee Benefit Trust mainly in relation to the issue of SIP, DBP and
EMSP shares as per note 8. A total of 9,296,302 own shares are held by the
Employee Benefit Trust (2025: 7,743,647 own shares). The total number of
shares with voting rights was 1,588,665,840 (2025: 1,511,857,390). 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, DBP and EMSP shares were issued at nil cost, and the fair value
of €2.3m for these shares recorded in the share capital account has been
transferred back to the other reserve.
All shares issued in the year were issued under general authority. No shares
were bought back in the year (2025: none) and there are no Treasury Shares
held directly by the Company at the year end (2025: none).
27. 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.
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:
2026 2025
€m €m
Balance at the beginning of the year 7.4 (6.0)
Foreign currency translation (24.0) 13.4
Balance at year end (16.6) 7.4
The movement in the year of €24.0m loss is a result of an decreasing GBP/EUR
rate which is higher at current year end compared with 31 March 2025 (2025:
€13.4m gain).
28. Dividends
Payment date Dividend per Year ended Year ended
share 31 March 2026 31 March 2025
cents €m €m
For the year ended 31 March 2024:
Final 25 July 2024 3.05 41.3
For the year ended 31 March 2025:
Interim 23 January 2025 3.06 43.2
Final 24 July 2025 3.09 46.0
For the year ended 31 March 2026:
Interim 22 January 2026 3.18 50.5 ((1))
Dividends disclosed in the consolidated statement of changes in equity 96.5 84.5
Timing difference relating to the withholding tax liabilities (6.6) -
Dividends disclosed in the consolidated statement of cash flows 89.9 84.5
(1) Includes €2.6m liability of withholding tax for the interim dividend
for the year ended 31 March 2025.
Either non-PID dividends or a mixture of both PID and non-PID dividends were
paid over the reporting periods. PID dividends are paid, as required by REIT
legislation, after deduction of withholding tax at the basic rate (currently
20%), where appropriate. Certain classes of shareholders may be able to elect
to receive dividends gross. Please refer to our website
www.sirius-real-estate.com/investors/dividends for details.
The Company offered a Dividend Reinvestment Plan (DRIP) to shareholders as an
alternative to a cash dividend in respect of all dividends paid during the
reporting periods. 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 Company's Employee Benefit Trust waived its rights to all dividends paid
during the reporting period.
The Board has authorised a dividend in respect of the second half of the
financial year ended 31 March 2026 of 3.22c per share, an increase of 4.2% on
the equivalent dividend last year. The total dividend for the year is 6.40c,
an increase of 4.1% on the 6.15c total dividend for the year ended 31 March
2025.
It is expected that, for the dividend authorised relating to the six month
period ended 31 March 2026, the ex-dividend date will be 9 July 2026 for
shareholders on the UK register, 8 July 2026 for shareholders on the SA
register, and the dividend will be paid on 30 July 2026. A detailed dividend
announcement will be made on 1 June 2026, including details of a DRIP
alternative.
29. Notes to cash flow
Changes in liabilities arising from financing activities
Reconciliation of movements of liabilities arising from financing activities:
31 March 2025 Cash flows Changes in Other (1) 31 March 2026
€m €m fair values €m €m
€m
Interest-bearing loans and borrowings 1,319.0 91.6 - 8.6 1,419.2
Lease liabilities 36.0 (3.4) - (0.5) 32.1
Total 1,355.0 88.2 - 8.1 1,451.3
31 March 2024 Cash flows Changes in Other (1) 31 March 2025
€m €m fair values €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
(1) Amortisation of capitalised loan issue costs, foreign exchange
differences, lease modifications and accretion of interest on lease
liabilities.
30. Related parties
Key management personnel
The following amounts have been paid to people considered to be key management
personnel (the Company Board of Directors and the Executive Committee members)
of the Group:
Consolidated income statement Year ended Year ended
31 March 2026 31 March 2025
€m €m
Directors' fees 0.8 0.7
Salary and employee benefits 6.0 5.8
Share-based payments 6.3 3.6
Total 13.1 10.1
Included within salary and employee benefits are pension contributions
amounting to €0.2m (2025: €0.2m).
There are no payables at the reporting date from Directors' fees and salary
and employee benefits (2025: €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 99 and 100.
Associates
The following balances and transactions with associates exist at the reporting
date:
Consolidated statement of financial position 2026 2025
€m €m
Loans to associates 45.1 45.1
Trade and other receivables 2.7 6.3
Total 47.8 51.4
Trade and other receivables relate to amounts owed from services supplied,
performance fee and accrued interest on loans to associates, both of which are
due to be settled in the normal course of business. As a result of unchanged
credit quality, no expected credit loss provision has been recognised.
Consolidated income statement Year ended Year ended
31 March 2026 31 March 2025
€m €m
Services supplied 15.1 17.9
Performance fee 0.8 1.4
Interest income 2.3 2.2
Total 18.2 21.5
Services provided to associates primarily relate to the provision of property
and asset management services. Providing these services, the Group generated
service charge and other income from managed properties of €15.9m (2025:
€19.3m) as shown in note 5.
For details regarding the investment in associates, including dividends
received, see note 19.
31. Commitments and contingencies
Capital and other commitments
At the reporting date, the Group had contracted capital expenditure for
development and enhancements on existing properties of €19.5m (2025:
€18.7m). In addition, the Group has notarised acquisitions of investment
properties totalling €97.4m (2025: €116.4m), of which €5.3m (2025:
€38.5m) has already been paid (see note 20), with the remaining commitment
amounting to €92.1m (2025: €77.9m).
The above noted were committed but not yet provided for in the financial
statements.
Contingencies
The Group, from time to time, receives claims in respect of disputes with
tenants or suppliers. Provisions for such claims are recorded only when
management considers that it is probable that the Group will settle them via
an outflow of economic resources. If such disputes are considered possible
these are disclosed as contingent liabilities to the extent the dispute is
deemed material.
32. 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:
2026 2025
€m €m
Less than 1 year 202.6 169.0
1-2 years 130.3 106.2
2-3 years 89.2 70.0
3-4 years 66.3 45.5
4-5 years 40.7 32.1
More than 5 years 116.1 51.7
Total 645.2 474.5
33. List of subsidiary undertakings and investments in associates
The Group consists of 124 subsidiary companies (2025: 118 subsidiary
companies). All subsidiaries are consolidated. 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 2026 31 March 2025
% %
Bedford Heights Ltd(1) UK 100.00 n/a
BizSpace Developments Ltd 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 100 Ltd Jersey 100.00 100.00
BizSpace Property I Ltd UK 100.00 100.00
Hamsard 3767 Ltd UK 100.00 100.00
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 Coconut 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(2, 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 Mango 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
My Lager GmbH(4) Germany 100.00 n/a
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 Daphne GmbH & Co. KG(4) Germany 100.00 n/a
Sirius Facilities GmbH Germany 100.00 100.00
Sirius Finance (Cyprus) Ltd.(3, 5) 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 Kale GmbH & Co. KG Germany 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 Lotus GmbH & Co. KG Germany 100.00 100.00
Sirius Magnolia GmbH & Co. KG(4) Germany 100.00 n/a
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(2, 3) UK 100.00 100.00
Sirius Willow B.V. Netherlands 100.00 100.00
Marba Bonn B.V. Netherlands 100.00 100.00
Marba Bremen B.V. Netherlands 99.73 99.73
Marba Brinkmann 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) Bedford Heights Ltd was acquired during the year ended 31 March 2026
as part of the Bedford acquisition.
(2) During the year ended 31 March 2026 Helix Investments Ltd issued
167,982,070 preference shares of nominal value £1.00 (€1.16) each (2025:
Helix Investments Ltd issued 273,637,500 preference shares of nominal value
£1.00 (€1.17) 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.
(3) Subsidiary company directly held by the Parent entity, Sirius Real
Estate Limited.
(4) New incorporated subsidiary company.
(5) During the year ended 31 March 2026 Sirius Finance (Cyprus) Ltd issued
199,100,000 ordinary shares of nominal value €1.00 each (2025: 33,000,000
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 2026 31 March 2025
% %
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
34. Post balance sheet events
On 27 March 2026, the Group notarised the acquisition of 100% of the shares of
two entities in Kiel. The transaction comprised warehouse, production,
laboratory and office spaces, including related equipment and a shareholder
loan. The total acquisition price amounted to €93.4m. The transaction
completed on 1 April 2026.
On 1 May 2026, the Group notarised the conditional acquisition of an asset in
Luton, UK, for £5.6m (€6.4m). Subject to planning permission being granted
and once fully developed, the property will comprise of 5,500 sqm of storage
space. On receipt of planning permission for the change of use the transaction
is expected to complete in the second quarter of financial year 2026/2027.
On 27 May 2026, the Group notarised the acquisition of an asset in Fulda,
Germany, for €49.8m. The mixed-use multi-tenant business park comprises
57,771 sqm of industrial, warehouse and office space and is 100% occupied. The
transactions is expected to complete in the second quarter of financial year
2026/2027.
Business analysis (unaudited information)
at 31 March 2026
Geographical property analysis - owned investment properties
Germany
Region 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 16 342 89.4% 8.44 31.0 19% 394.7 7.8% 7.4% 2.7 2.9
Berlin 4 108 94.3% 9.85 12.0 7% 201.2 6.0% 5.9% 2.5 2.5
Stuttgart 10 368 92.0% 5.65 23.0 14% 311.2 7.4% 6.9% 2.7 2.7
Cologne 8 147 91.8% 9.31 15.1 9% 209.6 7.2% 7.0% 2.5 2.7
Munich 5 162 86.3% 9.84 16.5 10% 276.0 6.0% 5.5% 3.4 3.6
Düsseldorf 16 452 76.3% 7.99 33.0 20% 371.8 8.9% 7.7% 2.9 3.1
Hamburg 5 122 74.9% 6.72 7.4 5% 103.5 7.1% 6.5% 1.6 1.5
Other 14 358 84.5% 7.49 27.2 16% 342.6 7.9% 7.3% 3.4 3.7
Total Germany 78 2,059 85.5% 7.82 165.2 100% 2,210.6 7.5% 6.8% 2.8 3.0
UK
Region 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 13 248 87.7% 9.02 23.5 25% 234.6 8.0% 3.2 3.3
North 10 55 93.3% 14.16 8.8 10% 56.3 11.2% 1.3 1.6
North East and North 12 91 91.5% 8.62 8.6 10% 65.8 8.6% 1.6 1.9
North West 15 116 93.0% 11.80 15.3 16% 106.4 9.9% 1.6 1.8
South East 14 37 87.5% 36.65 14.4 15% 120.9 8.2% 1.4 1.5
South West 12 217 67.7% 12.97 22.8 24% 174.8 8.3% 2.7 0.8
Total UK 76 764 83.7% 12.16 93.4 100% 758.8 8.7% 2.2 1.4
(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 investment
properties held for sale when applicable.
Usage analysis
Germany
Usage Total % of total Occupied % of Rent roll % of Vacant Rate psqm
sqm sqm sqm occupied €m rent roll sqm €
sqm
Office 634,351 30.8% 519,439 29.5% 57.8 35.0% 114,912 9.27
Storage 652,460 31.7% 555,572 31.6% 39.3 23.8% 96,888 5.89
Production 492,862 23.9% 464,308 26.4% 31.8 19.3% 28,555 5.72
Smartspace 131,549 6.4% 90,457 5.1% 11.3 6.8% 41,092 10.39
Other(1) 147,833 7.2% 130,266 7.4% 25.0 15.1% 17,566 16.01
Total Germany 2,059,055 100.0% 1,760,042 100.0% 165.2 100.0% 299,013 7.82
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 147,899 19.3% 119,106 18.6% 42.2 45.2% 28,793 29.54
Workshop 570,655 74.7% 484,850 75.8% 44.5 47.7% 85,805 7.65
Storage 4,028 0.5% 1,724 0.3% 1.7 1.9% 2,304 84.31
Other(2) 41,773 5.5% 34,083 5.3% 5.0 5.2% 7,690 12.23
Total UK 764,355 100.0% 639,763 100.0% 93.4 100.0% 124,592 12.16
(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 charges 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
Period Office Production Storage Smartspace Other (1) Adjustments Total
€m €m €m €m €m in relation to €m
lease incentives
€m
Less than 1 year 50.4 29.0 32.1 6.5 20.0 (2.4) 135.6
Between 1 and 5 years 81.7 69.0 55.9 1.7 32.0 (0.2) 240.1
More than 5 years 15.0 24.6 13.1 0.1 10.3 0.0 63.1
Total 147.1 122.6 101.1 8.3 62.3 (2.6) 438.8
Germany by sqm
Period Office Production Storage Smartspace Other (1) Total
sqm sqm sqm sqm sqm sqm
Less than 1 year 144,271 104,056 203,350 80,516 44,869 577,062
Between 1 and 5 years 317,374 270,159 284,322 9,906 69,018 950,779
More than 5 years 57,794 90,093 67,900 35 16,379 232,201
Total 519,439 464,308 555,572 90,457 130,266 1,760,042
(1) Other includes: catering, other usage, residential and technical
space, land and car parking.
UK by income
Period Office Workshop Storage Other (2) Adjustments Total
€m €m €m €m in relation to €m
lease incentives
€m
Less than 1 year 12.6 7.8 0.1 0.6 - 21.1
Between 1 and 5 years 33.7 46.0 0.0 2.7 - 82.4
More than 5 years 15.8 75.9 0.0 12.8 - 104.5
Total 62.1 129.7 0.1 16.1 - 208.0
UK by sqm
Period Office Workshop Storage Other (2) Total
sqm sqm sqm sqm sqm
Less than 1 year 62,844 138,674 1,724 10,950 214,192
Between 1 and 5 years 56,120 252,002 - 10,329 318,451
More than 5 years 8,780 94,174 - 4,165 107,119
Total 127,744 484,850 1,724 25,444 639,762
(2) Other includes: aerials, car parking, retail units, yards, catering
and residential.
The Group's UK business provides flexible leases that represent approximately
53.9% of rent roll and conventional leases that represent 46.1% 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 29.3% of contracts in place at 31 March 2026 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 3.01%
Storage 3.20%
Production 3.44%
Smartspace 9.30%
Other(1) 3.52%
Total 3.45%
(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
2026, approximately 39.8% 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 7.3%
Workshop 11.7%
Total 10.3%
Property profile
Germany
Property and location Total Office Storage Production Other (1) Rate psqm
sqm sqm sqm sqm sqm €
Aachen I 24,524 12,983 2,239 5,512 3,790 10.01
Aachen II 9,788 1,402 6,669 1,511 206 7.07
Alzenau 66,645 27,640 7,579 24,376 7,050 8.65
Bochum 56,009 11,791 35,643 3,966 4,609 5.64
Bochum II 4,259 3,502 479 12 266 9.61
Bonn 9,055 3,087 2,411 477 3,080 9.85
Bonn - Dransdorf 19,205 5,554 6,891 1,478 5,282 8.63
Buxtehude 28,780 1,120 9,775 13,421 4,464 5.20
Cölln Parc 13,520 5,823 3,420 2,940 1,337 11.87
Cologne 30,090 2,667 13,756 3,125 10,542 6.66
Dreieich 12,969 6,033 2,893 - 4,043 8.90
Dreieich II 5,605 194 2,592 - 2,819 7.30
Dresden 58,473 25,332 17,804 11,274 4,063 9.55
Dresden II 1,236 652 421 - 163 11.72
Dresden III 22,247 3,115 8,501 8,781 1,850 8.55
Düsseldorf - Sud 21,441 2,814 12,318 1,970 4,339 7.68
Düsseldorf II 9,896 4,430 4,949 - 517 7.63
Düsseldorf III 34,246 20,581 10,617 171 2,877 12.47
Erfurt 23,663 6,780 11,970 - 4,913 4.25
Essen 15,481 5,907 4,690 2,310 2,574 7.18
Essen II 11,624 7,439 1,845 627 1,713 10.93
Feldkirchen 26,420 11,983 3,842 7,752 2,843 11.76
Fellbach 26,436 1,748 16,115 340 8,233 6.37
Fellbach II 9,769 4,601 217 - 4,951 10.36
Frankfurt 4,330 2,253 476 68 1,533 13.03
Frankfurt III 10,228 4,848 1,376 - 4,004 14.69
Frankfurt Röntgenstraße 5,525 3,846 555 36 1,088 12.69
Freiburg Teningen 20,798 7,102 6,233 5,578 1,885 6.08
Frickenhausen 28,009 5,966 8,158 10,611 3,274 6.01
Friedrichsdorf 17,536 6,427 5,489 3,074 2,546 8.17
Gartenfeld 29,490 6,042 10,508 6,896 6,044 10.68
Geilenkirchen 17,124 269 4,036 12,603 216 5.84
Göppingen 36,388 2,419 8,116 23,736 2,117 4.29
Grasbrunn 14,359 7,267 4,734 - 2,358 12.65
Hallbergmoss 18,721 12,205 2,876 - 3,640 11.76
Hamburg 29,616 5,064 18,426 4,805 1,321 7.13
Hamburg Lademannbogen 10,533 7,677 1,010 - 1,846 10.49
Hanover 22,762 8,112 3,958 6,344 4,348 8.32
Heidenheim 46,843 8,415 15,420 13,828 9,180 4.91
Heiligenhaus 44,810 19,596 7,534 12,364 5,316 7.08
Klipphausen 17,779 993 108 16,031 647 7.85
Köln Porz 21,215 14,862 2,285 279 3,789 12.86
Köln Rodenkirchen 19,920 9,918 6,689 2,178 1,135 8.47
Krefeld 11,331 7,016 2,520 594 1,201 7.74
Krefeld II 6,147 2,893 325 2,171 758 8.69
Krefeld III 9,705 4,557 3,312 999 837 9.40
Lübeck 14,198 4,031 5,879 4,270 18 7.19
Ludwigsburg 28,461 6,614 9,499 3,588 8,760 7.88
Mahlsdorf 29,483 11,678 10,705 1,963 5,137 9.36
Mahlsdorf II 12,773 5,780 1,263 1,906 3,824 9.37
Maintal Mitte 11,026 462 4,523 5,685 356 5.97
Mannheim 69,923 13,450 20,851 27,687 7,935 5.66
Mannheim II 14,707 5,884 4,127 586 4,110 7.18
Mannheim III 3,048 2,276 741 - 31 8.20
Markgröningen 58,356 4,532 30,853 20,337 2,634 3.79
Mönchengladbach 78,319 22,122 24,816 28,284 3,097 4.38
München - Neuaubing II 9,851 95 7,598 1,125 1,033 8.83
Munich - Neuaubing 93,099 12,782 31,918 32,242 16,157 8.68
Nabern II 5,578 1,620 491 2,376 1,091 9.43
Neckartenzlingen 51,593 15,307 19,470 14,087 2,729 4.84
Neu-Isenburg 8,187 5,370 1,165 - 1,652 12.06
Neuruppin 22,959 1,404 7,629 13,133 793 5.97
Neuss 17,629 13,368 1,277 182 2,802 13.25
Neuss II 33,652 7,960 17,198 6,058 2,436 6.34
Norderstedt 12,627 3,052 7,507 172 1,896 5.47
Nürnberg 14,153 2,323 3,241 7,532 1,057 7.66
Oberhausen 83,846 41,495 27,764 1,130 13,457 12.41
Offenbach Carl Legien-Strasse 45,419 9,703 9,316 17,678 8,722 7.00
Offenbach I 15,290 3,647 2,650 2,355 6,638 8.22
Öhringen 18,900 1,860 7,731 8,596 713 5.09
Pfungstadt 32,796 6,698 12,229 9,867 4,002 7.19
Potsdam 35,991 12,363 12,720 4,876 6,032 9.67
Potsdam II 244 165 71 - 8 14.46
Rastatt 20,265 5,068 8,043 2,366 4,788 7.55
Reinsberg 36,008 4,014 2,594 27,977 1,423 4.73
Rostock 18,712 8,114 1,955 6,680 1,963 7.43
Saarbrücken 47,126 28,802 9,784 2,264 6,276 9.91
Schenefeld 40,531 10,367 26,483 1,961 1,720 6.42
Solingen 13,333 2,475 4,409 4,924 1,525 3.28
Stuttgart - Kirchheim 57,863 20,168 12,897 18,737 6,061 6.99
Wiesbaden 18,559 14,377 1,283 - 2,899 18.78
Total 2,059,055 634,351 652,460 492,862 279,382 7.82
UK
Property and location Total Office Workshop Storage Other (2) Rate psqm
sqm sqm sqm sqm sqm € (3)
Albion Mills Business Centre 14,894 5,101 5,320 889 3,584 8.97
Altrincham 4,476 1,375 2,768 - 333 15.06
Ashford 1,824 1,823 - - 1 46.22
Banbury 43,934 - 43,934 - - 5.32
Barnsley 6,835 724 5,915 - 196 8.30
Barnsley Carlton 3,383 1,172 2,016 - 195 18.59
Basingstoke 10,314 10,183 - - 131 25.29
Bedford 20,353 8,895 10,024 - 1,434 14.34
Bradford - Dudley Hill 11,212 901 10,013 - 298 9.56
Bristol Equinox 1,304 1,303 - - 1 51.69
Bury 3,874 3,874 - - - 17.49
Camberwell - Lomond 2,039 1,037 546 - 456 35.57
Carnforth 16,212 303 15,756 - 153 7.32
Cheadle 1,627 1,608 - - 19 44.67
Christchurch 2,663 1,275 605 - 783 32.18
Consett 4,641 - 4,641 - - 3.69
Coventry 1,621 1,621 - - - 17.84
Design Works 4,852 3,512 555 - 785 13.65
Didcot 1,021 491 510 - 20 35.69
Dinnington 3,788 1,000 2,648 - 140 11.97
Doncaster 2,732 2,730 - - 2 26.88
Dorking 2,149 1,406 715 - 28 42.40
Earl Mill, Oldham 15,890 3,967 11,368 - 555 6.25
Egham 1,002 927 - - 75 31.90
Fareham 1,758 1,758 - - - 47.33
Gateshead 13,269 - 12,036 - 1,233 5.58
Gloucester 20,445 615 17,055 113 2,662 6.28
Gloucester - Barnwood 3,304 3,022 24 257 1 34.30
Hartlebury 135,094 3,735 131,204 - 155 4.70
Hebburn 5,463 - 5,462 - 1 9.12
Hemel Hempstead 4,265 4,262 - - 3 30.70
Hooton 1,355 1,225 - - 130 31.20
Hove 2,939 875 643 - 1,421 33.71
Islington Studio 3,060 - 201 - 2,859 29.83
Leeds - Brooklands 2,025 1,436 - 573 16 19.19
Leeds - Wortley 3,726 - 3,725 - 1 8.81
Littlehampton 1,993 1,992 - - 1 29.15
Liverpool 3,486 1,322 2,164 - - 20.06
London Colney 1,998 206 116 - 1,676 28.23
M25 Business Centre 3,284 2,190 1,048 - 46 31.82
Maidstone 1,645 1,644 - - 1 40.22
Manchester - Trafford Park 8,815 - 8,675 - 140 9.27
Manchester - Newton Heath 5,659 1,340 3,353 - 966 21.31
Manchester - Old Trafford 4,610 1,716 2,806 - 88 26.09
Milton Keynes 3,591 3,529 14 - 48 26.56
New Addington - Croydon 6,649 379 6,158 - 112 16.34
Newcastle - Amber Court 4,289 4,289 - - - 22.99
Northampton - K2 4,689 57 4,631 - 1 9.48
Northampton - KG 12,597 1,110 11,389 - 98 8.76
Nottingham - Arnold 5,281 1,342 3,738 - 201 10.43
Nottingham - Park Row 4,142 4,124 - - 18 35.95
Nottingham - Roden 4,545 - 4,533 - 12 8.84
Oldham - Hollinwood 5,484 5,453 - - 31 26.38
Perivale 2,147 436 1,604 - 107 29.83
Peterlee 18,307 - 18,306 - 1 4.52
Poole 6,326 5,586 - 591 149 21.65
Preston 3,295 1,741 1,297 256 1 17.84
Rochdale (Fieldhouse) 21,605 527 20,894 - 184 4.47
Rochdale (Moss Mill) 16,163 - 14,442 - 1,721 4.32
Rotherham 4,487 1,374 3,112 - 1 15.03
Sandy Business Park 9,261 108 9,152 - 1 9.86
Sheffield (Cricket) 1,927 - 1,927 - - 12.21
Shipley 2,238 2,238 - - - 14.88
Solihull 1,689 1,688 - - 1 49.08
Southampton 37,711 1,985 23,031 - 12,695 6.04
Spectrum House 4,302 4,116 169 - 17 40.01
Stanley 3,775 - 3,775 - - 6.94
Swindon 6,856 324 6,496 - 36 17.87
The Ivories 2,300 - 2,299 - 1 42.79
Theale 2,600 2,542 - - 58 64.99
Vantage Point Business Village 122,280 20,013 97,882 1,078 3,307 3.84
Wakefield 20,814 619 18,443 - 1,752 5.60
Warrington - Craven Court 3,829 - 3,829 - - 12.07
Wembley 1,779 - 1,779 - - 31.30
Wimbledon 3,293 1,172 1,569 271 281 29.49
Wolverhampton - Willenhall 5,271 581 4,340 - 350 10.43
Total 764,355 147,899 570,655 4,028 41,773 12.16
(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, funds from operations and net loan to value
(collectively, "the Non-IFRS Financial Information").
The Directors have disclosed:
• 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 A below showing all line item adjustments.
• 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 B 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 JSE 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 C 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 D 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 E 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 E 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 E 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 calculation for EPRA LTV is detailed
in table F below showing all line item.
• Net loan to value in order to help assess risk. The calculation of
net loan to value is detailed in table G below showing all line items.
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. has issued an independent auditor's assurance report on
certain Non-IFRS Financial Information for the year ended 31 March 2026 which
is included on pages 172 to 173 of the Annual Report and Accounts 2026. 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 2026 (the consolidated financial statements).
Table A - Funds from operations
Year ended Year ended
31 March 2026 31 March 2025
€m €m
Profit for the year after tax(1) 229.8 178.2
Adjustments for:
Gain on revaluation of investment properties(2) (110.6) (79.4)
Adjustment in respect of long-term leasehold liabilities(3) (0.5) (1.3)
Loss/(gain) on disposals of properties(4) 0.5 (1.6)
Gain on revaluation of investment property from associates and related tax(5) (1.2) (0.1)
Other expenses not included in FFO(6) 0.5 0.6
Share-based payments(7) 10.2 6.5
Foreign exchange effects(8) 13.8 (4.1)
Depreciation and amortisation (excluding depreciation relating to IFRS 16)(9) 2.9 3.7
Amortisation of capitalised loan issue costs(10) 8.4 3.3
Adjustment in respect of IFRS 16(11) (0.1) 0.8
Adjustment of total deferred tax(12) (20.2) 16.6
Funds from operations(13) 133.5 123.2
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
administrative expenses in note 6 within the consolidated financial
statements.
(7) Presents share-based payments as included in administrative expenses
in note 6 within the consolidated financial statements.
(8) Presents the net foreign exchange gains or losses as included in other
administration costs in note 6 and net foreign exchange difference in note 9
within the consolidated financial statements.
(9) Presents depreciation of plant and equipment plus amortisation of
intangible assets as included in administrative expenses in note 6 within the
consolidated financial statements.
(10) Presents amortisation of capitalised loan issue costs which has been
extracted from note 9 within the consolidated financial statements.
(11) Presents the differential between the expense recorded in the
consolidated income statement for the year relating to long-term leasehold
liabilities in accordance with IFRS 16 amounting to €3.3m (2025: €4.2m)
and the actual cash expense recorded in the consolidated statement of cash
flows for the year amounting to €3.4m (2025: €3.4m).
(12) Presents the total deferred tax expense which has been extracted from
note 10 within the consolidated financial statements.
(13) Presents the funds from operations. Additionally, FFO per share is 8.82c
(2025: 8.44c) which is the funds from operations divided by the weighted
average number of ordinary shares for the purpose of basic, EPRA and headline
earnings per share from note 11 within the consolidated financial statements
for each respective reporting period.
Table B - EPRA earnings
Year ended Year ended
31 March 2026 31 March 2025
€m €m
Basic and diluted earnings attributable to owners of the Company(1) 229.6 178.1
Deduct gain on revaluation of investment properties(2) (110.6) (79.4)
Add loss/(deduct gain) on disposal of properties (net of related tax)(3) 0.5 (1.6)
Deferred tax in respect of EPRA earnings adjustments(4) (19.1) 20.6
Adjustments related to non-operating and exceptional items(5) 13.2 -
NCI relating to revaluation (net of related tax)(6) 0.1 0.1
NCI relating to gain on disposal of properties (net of related tax)(7) 0.0 0.0
Add loss/(deduct gain) on revaluation of investment property from 0.2 (0.8)
associates(8)
Tax in relation to the revaluation gains/losses on investment property from (1.4) 0.7
associates(9)
EPRA earnings(10) 112.5 117.7
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 deferred tax in respect of EPRA earning adjustments which has
been extracted from note 11 within the consolidated financial statements.
(5) Presents adjustments related to non-operating and exceptional items
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.
Table C - 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 2026 31 March 2025
Gross Net Gross Net
€m €m €m €m
Basic earnings and diluted earnings attributable to owners of the Company(1) 229.6 178.1
Deduct gain on revaluation of investment properties(2) (110.6) (129.7) (79.4) (58.8)
Add loss/(deduct gain) on disposal of properties(3) 0.5 0.5 (1.6) (1.6)
NCI relating to revaluation(4) 0.1 0.1 0.1 0.1
NCI relating to gain on disposal of properties(5) 0.0 0.0 0.0 0.0
Add loss/(deduct gain) on revaluation of investment property from 0.2 (1.2) (0.8) (0.1)
associates(6)
Headline earnings((7)) 99.3 117.7
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). This amount
includes €40.2m attributable to the reduced German tax rate.
(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),
both of which has been extracted from note 11 within the consolidated
financial statements.
(7) Presents the headline earnings.
Table D - Adjusted net asset value
2026 2025
€m €m
Net asset value
Net asset value for the purpose of assets per share (total equity attributable 1,890.6 1,688.9
to the owners of the Company)(1)
Net deferred tax liabilities(2) 80.2 99.3
Adjusted net asset value attributable to owners of the Company(3) 1,970.8 1,788.2
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 note 10 within the consolidated financial statements.
(3) Presents the adjusted net asset value attributable to the owners of
the Company.
Table E - EPRA net asset measures
2026 EPRA NRV EPRA NTA EPRA NDV
€m €m €m
Net asset value at year end (basic)(1) 1,890.6 1,890.6 1,890.6
Diluted net asset value at fair value 1,890.6 1,890.6 1,890.6
Group
Deferred tax in respect of fair value movements on investment properties(2) 84.3 83.7* n/a
Intangible assets(3) n/a (1.6) n/a
Fair value of fixed interest rate debt(4) n/a n/a 85.0
Real estate transfer tax(5) 228.9 n/a n/a
Investment in associates
Deferred tax in respect of fair value movements on investment properties(2) 6.5 6.5* n/a
Fair value of fixed interest rate debt(4) n/a n/a 18.3
Real estate transfer tax(5) 9.7 n/a n/a
Total EPRA NRV, NTA and NDV(6) 2,220.0 1,979.2 1,993.9
2025 EPRA NRV EPRA NTA EPRA NDV
€m €m €m
Net asset value at year end (basic)(1) 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
Deferred tax in respect of fair value movements on investment properties(2) 103.3 103.3* n/a
Intangible assets(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 fair value movements on investment properties(2) 8.0 8.0* n/a
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
* The Group intends to hold onto the investment properties and has
excluded such deferred taxes for the whole portfolio at year end except for,
when applicable, deferred tax in relation to investment properties 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 investment properties held for sale of
€0.6m (2025: €nil). For investment in associates the deferred tax
income/(expense) arising on revaluation losses/gains amounted to €1.4m
(2025: (€0.7m)).
(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.
Table F - EPRA LTV
Proportionate
consolidation
2026 Group Investment in Total
€m associates €m
€m
Interest-bearing loans and borrowings(1) 204.3 52.6 256.9
Corporate bonds(2) 1,214.9 - 1,214.9
Net payables(3) 82.7 3.2 85.9
Cash and cash equivalents(4) (410.2) (8.4) (418.6)
Net debt (a)((5)) 1,091.7 47.4 1,139.1
Investment properties(6) 2,960.5 128.0 3,088.5
Assets held for sale(7) 30.0 - 30.0
Plant and equipment(8) 19.3 - 19.3
Intangible assets(9) 1.6 - 1.6
Loan to associates(10) 45.1 - 45.1
Total property value (b)((11)) 3,056.5 128.0 3,184.5
EPRA LTV (a/b)((12)) 35.7% 37.0% 35.8%
Proportionate
consolidation
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(8) 17.8 - 17.8
Intangible assets(9) 1.7 - 1.7
Loan to associates(10) 45.1 - 45.1
Total property value (b)((11)) 2,552.7 127.6 2,680.3
EPRA LTV (a/b)((12)) 30.0% 39.9% 30.4%
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 23 within the consolidated financial statements.
(2) Presents the corporate bonds which have been extracted from note 23
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 18 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 assets held for sale which have been extracted from the
consolidated statement of financial position within the consolidated financial
statements.
(8) Presents the plant and equipment which have been extracted from the
consolidated statement of financial position within the consolidated financial
statements.
(9) Presents the intangible assets which have been extracted from the
consolidated statement of financial position within the consolidated financial
statements.
(10) Presents the loan to associates which has been extracted from note 18
within the consolidated financial statements.
(11) Presents the total property value, which is the sum of investment
properties, assets held for sale (when applicable), plant and equipment,
intangible assets and loan to associates.
(12) Presents the EPRA LTV which is net debt divided by total property value
in percentage.
Table G - Net LTV
2026 2025
€m €m
Carrying amount of interest-bearing loans and borrowings(1) 1,419.2 1,319.0
Unamortised capitalised loan issue costs(2) 25.6 26.5
Less cash and cash equivalents (not including cash restricted under (372.7) (571.3)
contractual terms)(3)
Total 1,072.1 774.2
Book value of owned investment properties(4) 2,969.4 2,465.2
Net LTV((5)) 36.1% 31.4%
(1) Presents the interest-bearing loans and borrowings which have been
extracted from the consolidated statement of financial position within the
consolidated financial statements.
(2) Presents the current and non-current capitalised loan issue costs
which have been extracted from note 23 within the consolidated financial
statements.
(3) Presents the cash at bank and short-term investments which have been
extracted from note 21 within the consolidated financial statements.
(4) Presents the owned investment properties at market value per valuer's
report adjusted in respect of lease incentives separately recognised which
have been extracted from note 13 within the consolidated financial statements
plus investment properties held for sale which have been extracted from note
14 within the consolidated financial statements when applicable.
(5) Presents the net LTV which 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 investment
properties held for sale when applicable).
Glossary of terms
Adjusted net asset value (adjusted NAV) 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
(EPRA LTV) 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 25 showing all line items)
EPRA net reinstatement value (EPRA NRV) is the net asset value adjusted to reflect the value required to rebuild the
Group and assuming that the Group never sells assets (EPRA NRV is detailed in
note 12 showing all line item adjustments)
EPRA net tangible assets (EPRA NTA) is the net asset value adjusted to reflect that the Group buys and sells
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
(EPRA NDV) 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
(EPRA NIY) non-recoverable property operating expenses, divided by the market value of
the owned property (adjusted by lease incentives), increased with (estimated)
purchasers' costs
Estimated rental value (ERV) is the estimated rental value (at market rates) which is the annualised rental
income at 100% occupancy
Executive Committee As set out on page 64 of the Group's Annual Report and Accounts 2026
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
amortisation, loan issue costs, foreign exchange differences and other
non-recurring items. Refer to note 4 of the financial statements for further
information
Gross yield is the rent roll divided by the market value (adjusted by lease incentives) of
a property
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 (net LTV) 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 investment properties held for sale when applicable)
Net operating income is the rental, service charge and other income generated from investment and
managed properties less directly attributable costs
Net yield is the rent roll less non-recoverable property operating expenses divided by
the market value (adjusted by lease incentives) of a property
Occupancy is the percentage of total lettable space occupied 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
Property Income Distribution (PID) is a distribution by a REIT to its shareholders paid out of qualifying
profits. A REIT is required to distribute at least 90% of its qualifying
profits as a PID to its shareholders
Rate · for the German portfolio is rental income per sqm expressed on
a monthly basis at a specific reporting date;
· for the UK portfolio is rental income (including estimated
service charge element) per sqm expressed on a monthly basis at a specific
reporting date in EUR; and
· for the UK portfolio is rental income (including estimated
service charge element) per sq ft expressed on an annual basis 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 2026. 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 of Group
subsidiary entities
SIP Share Incentive Plan
Sirius comprises the Company and its subsidiaries
Total debt is the aggregate amount of the interest-bearing loans and borrowings excluding
unamortised capitalised loan issue costs
Total shareholder accounting return is the return obtained by a shareholder calculated by combining movements in
adjusted NAV per share and dividends paid divided by the opening adjusted NAV
per share
Total return is the return for a set period of time combining valuation movement and income
generated
Ungeared IRR is an estimate of the internal rate of return not taking into consideration
debt
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
Bleidenstraße 6
60311 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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