Sirius Real Estate, which owns and operates business and industrial parks in Germany and the UK, has posted “solid” results for the first half of its financial year.
In the six months to 30 September 2022, Sirius increased total revenue by 47.7% to €130.6m (30 September 2021: €88.4m) and enjoyed a valuation increase of €20.3m and £6.3m (€7.5m) representing a 1.8% and 2.1% like-for-like valuation growth in Germany and the UK respectively.
The company said it “remains resilient and well positioned to navigate the current macro-economic climate” due to its intensive asset management initiatives and the fixed priced contracts it has secured for a significant portion of its utility demands in both Germany and the UK, which should shelter its tenant base from some of the higher operating costs that most industrial companies are facing. As a result it expects to trade in line with consensus and management expectations for the full year.
Andrew Coombs, chief executive officer of Sirius Real Estate, said: “It has been another solid six months for the business, with our portfolio continuing to demonstrate its resilience in both Germany and the UK. Dividend and FFO growth is being supported by strong trading, with continued demand for space at our properties leading to rent roll increases and a robust leasing pipeline taking this positive momentum into the second half. There are also many opportunities within our portfolio to unlock value and grow rental income through our successful asset management platform.”
He added: “The company has taken a number of proactive measures to identify and mitigate against future potential risks in light of current market conditions. These include securing the company’s €170m Berlin Hyp AG facility one year in advance of its due date, as well as agreeing fixed price contracts for a significant proportion of our utilities and slowing our acquisition pipeline. These early and strategic efforts enable the business to remain extremely-well positioned going forwards and we remain focused on growing our FFO organically, in order to continue to deliver attractive risk-adjusted returns to shareholders.”
