June 13 2026 11:35
GERMANY
Sirius Real Estate, owner and operator of branded business and industrial parks providing conventional space and flexible workspace in Germany and the UK, recently announced its financial results for the year to 31 March 2026.
The group saw a 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.
It achieved 6.4% like-for-like annualised rent roll growth to €224.2m1,2 (31 March 2025: €210.8m) driven by continued strong organic growth and occupier demand in Germany and the UK.
There was a 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.
A 29.0% rise in profit after tax to €229.8m was achieved (31 March 2025: €178.2m) reflecting the release of deferred tax liabilities in the German portfolio following a phased government reduction in the corporate tax rate.
Sirius’ 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.
The group said that over the past 12 years, dividend growth was achuieved with 25 consecutive dividend distributions supported by sustainable FFO growth.
There was a 20.5% increase in value of owned investment property portfolio up to €2,969.4 m3 (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.
Acquisitions – €463.3m4 of assets completed or notarised fuelling future rental growth and comprising:
· Nine acquisitions in Germany for €271.1m4 (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.
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.
A 36.1% net LTV (2025: 31.4%) was achieved, alongside a Net Debt to EBITDA of 6.6x (2025: 5.2x).
Sirius achieved a 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.
The group is trading in line with management’s 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, it sais.
“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,” the group 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 25th progressive dividend payout,” Andrew Coombs, chief executive officer of Sirius Real Estate, said.
“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,” he said.
alistair@propertyflash.co.za
