The eurozone may be in the economic doldrums, but business is relatively buoyant in Germany, which is where commercial real estate landlord Sirius Real Estate (SRE) operates. Adjusted net asset value rose by 10.5 per cent to 47.5¢ (34p).
A €40m fundraising in December has been put to good use in the €70.9m purchase of four business parks, at a net initial yield of 8.1 per cent. A new €36m debt facility drawn down against three of the businesses was secured at 2.85 per cent, maturing in five years.
Including the acquisitions, the average rental rate moved up from €4.46 per square metre to €4.75 per sq m, and occupancy rates rose from 76 per cent to 79 per cent. The group also made further progress with an investment programme started in January last year to bring to life around 100,000 sq m of previously unlettable or under-rented space. Nearly 38,000 sq m has now been transformed, of which 74 per cent is fully let, bringing in an annual rental income of €1.96m.
Prior to these numbers, analysts at Peel Hunt were forecasting adjusted NAV by March 2016 of 51¢ per share.
| SIRIUS REAL ESTATE (SRE) | ||||
|---|---|---|---|---|
| ORD PRICE: | 49¢ | MARKET VALUE: | €309m | |
| TOUCH: | 48.5-49.5¢ | 12-MONTH HIGH: | 49.5¢ | LOW: 29¢ |
| DIVIDEND YIELD: | 3.3% | TRADING PROPERTIES: | nil | |
| PREMIUM TO NAV: | 7% | |||
| INVESTMENT PROP: | €546m | NET DEBT: | 81% | |
| Year to 31 Mar | Net asset value (¢) | Pre-tax profit (€m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2011 | 69.1 | 3.4 | 0.8 | nil |
| 2012 | 57.1 | -31.1 | -10.3 | nil |
| 2013 | 47.6 | -29.5 | -9.5 | nil |
| 2014 | 43.6 | 31.0 | 7.3 | 0.3 |
| 2015 | 45.7 | 32.7 | 4.8 | 1.61 |
| % change | +5 | +5 | -34 | +437 |
Ex-div: 11 Jun Payment: 10 Jul | ||||
