SENS: Sirius Real Estate – Final Results for the year ended 31 March 2016

“This has been another good year for the Company with recurring PBT* increasing by 82% and a further significant uplift in the capital value of its property portfolio. Sirius reached 80% occupancy and exceeded an average rental rate per sqm of more than EUR5.00, in each case both for the first time in the Company’s history. Sirius is well placed for the next year as it is set to benefit from significant increases in like-for-like rent roll as well as increased scale following over EUR100m of acquisitions, including EUR22.2 million since year-end, whose impact is yet to be fully reflected in the financial performance. In addition Sirius has significantly lowered the cost of debt to 2.2% post year end from 4.3% and a buoyant German rental market, together with our capex investment programme, is fuelling rent roll and valuation growth.” says Robert Sinclair, Chairman of Sirius.

Trading Highlights

– As at 31 March 2016, like-for-like gross annualised rent roll increased by EUR3.0 million to EUR53.0 million (31 March 2015: EUR50.0 million). Including acquisitions completed in the period the annualised rent roll was EUR60.5 million and with the acquisitions completed in May 2016 it is EUR63.0 million.
– 82% increase in recurring profit before tax from EUR12.6 million to EUR22.9 million.
– Funds from Operations (“FFO”)** was EUR25.0 million (2015: EUR14.3 million), an increase of 75%. FFO per share increased to 3.4c (2015: 1.4c).
– Average rental rate across the portfolio, on a like-for-like basis, increased to EUR4.99 per sqm up 5.1% (31 March 2015: EUR4.75 per sqm). Average rental rate including all completed acquisitions in the period was EUR5.06 per sqm.
– Like-for-like and total occupancy increased to 80% (31 March 2015: 79%) and significant potential remains within the vacancy, especially through the Company’s capex investment programme.
– Achieved new lettings in the period of 150,864 sqm at an average rate of EUR5.33 per sqm (31 March 2015: 119,992 sqm at EUR5.02), 12% above the average rate being achieved on the portfolio at the start of the period.
– The Board is declaring a final dividend of 1.30c per share making a total dividend for the year of 2.22c per share (year to 31 March 2015: 1.61c per share), in line with the Company’s dividend policy to pay shareholders 65% of FFO.
– As at 31 March 2016, the like-for-like portfolio was valued at EUR610.2 million, a 10.9% increase from EUR550.0 million as at 31 March 2015. The valuation of the total portfolio including the acquisitions that completed in the period was EUR695.2m and the current value including post period acquisitions is estimated by the Company to be EUR717.4m.
– Adjusted Net Asset Value (“NAV”)** per share increased by 12.3% to 53.35c (31 March 2015: 47.51c). Total return, NAV growth plus dividends paid in the period, was 16.0%.
– Loan to value (“LTV”) ratio reduced at year end to 42.8% (31 March 2015: 46.8%). Following the refinancing and acquisitions which
completed after the year end the LTV was 45.8%.

Read more here: SENS_Sirius Real Estate_Final Results for the year ended 31 March 2016_20160523_S371862