June 4 2024 14:31
Sirius Real Estate, which invests in German and UK branded business and industrial parks released its financial results for the year to-end March 2024, recording a 7.9% increase in funds from operations (FFO) to €110.2m compared with €102.1m in its 2023 financial year. The group’s aim is to achieve at least €150m in FFO a year within the next three to four years.
Sirius has been listed on the JSE for nearly 10 years and has achieved 20 progressive dividend payouts in the time; one every six months. Sirius achieved a 14.6% increase in its adjusted profit before tax which climbed to €110m compared with the 2023 financial year’s €96m.
Sirius is led by Andrew Coombs, a former Cold War soldier and a businessman who specialises in change management. He previously worked at Regus and is considered to have turned Sirius from a near bankrupt UK property company into a stunning success.
The group reported 7.2% like-for-like rent roll growth of €188.7m up from €176m in 2023, driven by continued organic growth and occupier demand.
Sirius declared a second half dividend of 3.05 cents per share compared with 2.98 cents per share for 2023. The total dividend for the 2024 financial year was 6.05 cents, up 6.5% on the 2023 financial year’s 5.68 cents.
Andrew Coombs, Sirius CEO
Sirius’s investment portfolios were valued at €2.211bn compared with €2.123bn in 2023, with a €12.4m net portfolio valuation increase despite a valuation yield expansion.
Sirius made €157.8m in acquisitions and €59.7m in disposals, supported by a €165.3m equity raise. Net of costs, Sirius notarised six UK assets amounting to £90m and contributing net operating income of £8.7m at an average gross yield of 9.5% and an 8.1% occupancy.
Köln Business Park – Germany
In Germany, Sirius notarised €53.6m of acquisitions across three transactions at an average gross yield of 10.2% and 9.1% occupancy. As much as €56.2m of disposals in Germany with annualised net operating income of €3.4m were completed across three transactions, and one £3m disposal in the UK with an annualised net operating income of £0.2m, all at a premium to book value.
Klipphausen Business Park – Germany
Sirius had 2.9% of debt expiring within two years and cash at bank of €215.5m. The group’s loan-to-value was at 33.9%, down strongly from 41.6% at the end of March 2023.
Coombs said Sirius’ main risks were how the economic environments in Germany and the UK would perform in the rest of 2024 and in 2025. The UK will hold an election in July with Labour Party Leader Keir Starmer poised to win and take power.
Coombs said Sirius was well-positioned with an active asset recycling programme, a strong cash position.
“There remain many levers we can pull to unlock value and grow occupancy and rental income within our current portfolio through our successful asset management programme, and we remain well positioned to fuel our accretive pipeline, supporting our next phase of growth and to deliver attractive returns for shareholders,” said Coombs.
Sirius’ Vantage Point – United Kingdom
alistair@propertyflash.co.za
