Sirius Real Estate has announced its interim results for the six months to 30 September 2018.
Strong profit growth and increased dividend.
- Profit before tax in the period grew 43.0% year-on-year to €78.2 million (H1 2017: €54.7 million).
- Funds from Operations1 grew by 25.9% to €23.3 million (H1 2017: €18.5 million).
- Interim dividend increased 4.5%2 to 1.63c per share (H1 2017: 1.56c).
Significant valuation growth.
- €56.2 million valuation gain in the period net of capex invested and adjustments for lease incentives.
- Total valuation increase of €69.3 million.
- Total portfolio book value of €1,048.8 million (31 March 2018: €931.2 million).
- Increase in NAV per share of 6.7% to 67.29c (31 March 2018: 63.09c) with adjusted NAV3 per share increasing by 7.3% to 70.52c (31 March 2018: 65.71c).
Continuing to deliver good rental growth.
- Increase in rental and other income from investment properties of 16.6% to €40.8 million (H1 2017: €35.0 million) in the period despite the impact of three large expected move outs.
- Increase in like for like annualised rent roll4 of 2.6% in the period despite the impact of three large expected move outs.
- Original and new acquisition capex investment programmes making a strong contribution to results.
- Total annualised rent roll5 increased 17.6% to €82.0 million (30 September 2017: €69.7 million).
Acquisitions and asset recycling progressing well.
- Good progress on investing funds from March 18 equity raise with two assets acquired in the period for a total of €29.8 million5, followed shortly after the period end by the acquisition of an asset for €9.6 million and notarisation of an asset for €25.7 million.
- Completed the disposal of all non-core assets for total proceeds of €19.3 million in or just after the period end freeing up further capital to be recycled.
- Significant resources to acquire further assets in the second half of the financial year to drive shareholder value.
1See note 22 of the Interim Report.
2Interim dividend representing 70% of FFO (30 September 2017: 75% of FFO).
3See note 11 of the Interim Report.
4See glossary section of the Interim Report.
5Excludes the completion of the Saarbrucken and Dusseldorf assets totalling €36.1 million that completed on 1 April 2018.
Andrew Coombs, Chief Executive Officer of Sirius Real Estate comments:
“In the first half, we achieved a significant milestone, exceeding the €1 billion mark for assets owned. We saw a 43% year-on-year increase in profit before tax underpinned by a €69.3 million valuation uplift, new lettings of more than 83,000 sqm and €6.6 million of annualised rent roll signed in the period and are able to report a 2.6% like-for-like rental growth despite the impact from three expected large move-outs. This performance reflects the success of our asset management strategy alongside the currently strong German market“.
“Our business model and the diverse nature of the Sirius portfolio has always been a key strength. Occupier demand for industrial assets and secondary offices in Germany has never been greater”.
“We believe this market will continue for some time and Sirius is very well positioned to take advantage of it. With the portfolio being valued at a defensive 7.8% gross yield and having significant amounts of value-add opportunity within the 19% vacancy, we can see considerable upside to come from income and capital growth over the next few years.”