Sirius Real Estate (SRE) delivered another strong performance in the year to March 2018, with like-for-like rental income rising by a record 6.2 per cent.
Demand for conventional space and flexible workspace remained strong in Germany, and Sirius made good use of recycling assets to acquire new property with the potential to increase rental income.
Disposals totalled €103m (£90.3m) on properties with an average occupancy rate of 90 per cent, while €128m was spent on acquisitions with an average occupancy of 55 per cent. And despite the high occupancy disposals, total annualised rental income rose by 12 per cent to €79.5m.
Assets held for sale comprise one last remaining non-core property, although some further sales can be expected, principally on selected assets that have been fully developed and that can be sold at a profit.
Sirius has also benefited from a proprietary operating platform that handles the key functions of property management – such as lettings, disposals and acquisitions – that would normally be outsourced.
Analysts at Peel Hunt expect adjusted net asset value (NAV) of 69.9¢ at the March 2019 year-end, up from EPRA diluted NAV of 64.2¢ at the 2018 year-end.
| SIRIUS REAL ESTATE (SRE) | ||||
| ORD PRICE: | 67.4p | MARKET VALUE: | £668m | |
| TOUCH: | 67.2-67.6p | 12-MONTH HIGH: | 69p | LOW: 52p |
| DIVIDEND YIELD: | 4.1% | TRADING PROPERTIES: | €17.3m | |
| PREMIUM TO NAV: | 22% | NET DEBT: | 46% | |
| INVESTMENT PROPERTIES: | €914m | |||
| Year to 31 Mar | Net asset value (¢) | Pre-tax profit (€m) | Earnings per share (¢) | Dividend per share (¢) |
| 2014 | 43.6 | 31.0 | 7.3 | 0.3 |
| 2015 | 45.7 | 32.7 | 4.8 | 1.61 |
| 2016 | 51.5 | 57.1 | 7.5 | 2.22 |
| 2017 | 56.4 | 76.4 | 8.1 | 2.92 |
| 2018 | 63.1 | 89.6 | 8.9 | 3.16 |
| % change | +12 | +17 | +9 | +8 |
| Ex-div: | 12 Jul | |||
| Payment: | 17 Aug | |||
| £1=€1.141 | ||||
