Sirius Real Estate saw the value of its portfolio increase by 1.1% thanks to “strong income growth and investment offsetting yield expansion” for the financial year ended 31 March 2023.
In the reporting period, the company enjoyed a 24.5% increase in adjusted profit before tax to €96.0m (2022: €77.1m) with profit before tax decreasing 48.5% to €87.0m (2022: €168.9m) primarily as a result of a €7.7m valuation deficit in 2023 compared with a €140.9m surplus in the previous year.
The company said the new financial year had “started well” driven by strong occupier demand and it continues to trade in line with market expectations.
Andrew Coombs, chief executive officer of Sirius Real Estate, said: “Sirius has delivered another positive set of annual results, with sizeable rental growth underpinned by continued occupier demand for our high-quality and affordable products in both Germany and the UK.
“This is now the ninth consecutive year of like-for-like rental growth in excess of 5% in the year. This strong operational performance enabled us to deliver a significant increase to the annual dividend, which rose 29%, and to surpass our €100m FFO ambition, with a 37% increase over the prior year to €102.1m. The company also recycled €90m of assets over the past 12 months, including six disposals achieved at a 25% combined aggregate premium to book value. We will continue to pursue an opportunistic asset recycling programme where we see opportunities to crystallise returns and drive value.
“Looking ahead, our outlook remains positive: our balance sheet is strong, with cash reserves of €124m and around 95% of the group’s debt secured at fixed interest rates for at least the next three years, and we continue to trade in line with market expectations. While we remain alert to the potential impact of ongoing global macro-economic uncertainty, Sirius remains well placed to continue to deliver attractive returns for shareholders.”
