Sirius Real Estate (SRE) continued recycling mature assets last year, disposing of three non-core assets for €26m (£23m) and ploughing €101m into six acquisitions in major German cities. That helped boost funds from operations by more than a quarter last year, 70 per cent of which was paid out in dividends.
The commercial landlord also established a joint venture with Axa Investment Managers, which will allow the group to acquire assets above its historical ceiling of €30m. The partnership will give the commercial landlord another source of capital, said chief executive Andrew Coombs. “Successful bidding for these kinds of assets tends to be from private funds that have cash immediately available,” said Mr Coombs.
Rent increases and higher occupancy rates – to 85.8 per cent, from 83.7 per cent – pushed like-for-like rental growth to a record 7.1 per cent. That contributed to a 13.3 per cent rise in the portfolio book value.
Analysts at Peel Hunt expect an adjusted net asset value of 79.6¢ a share at the March 2020 year-end, up from 74.8¢ at the same time in the previous year.
| SIRIUS REAL ESTATE (SRE) | ||||
| ORD PRICE: | 64.2p | MARKET VALUE: | £656m | |
| TOUCH: | 64.2-64.6p | 12-MONTH HIGH: | 68p | LOW: 55p |
| DIVIDEND YIELD: | 4.6% | TRADING PROPERTIES: | €165m | |
| PREMIUM TO NAV: | 10% | NET DEBT: | 41% | |
| INVESTMENT PROPERTIES: | €973m | |||
| Year to 31 Mar | Net asset value (¢) | Pre-tax profit (€m) | Earnings per share (¢) | Dividend per share (¢) |
| 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 |
| 2019 | 71.0 | 145 | 12.8 | 3.36 |
| % change | +13 | +62 | +44 | +6 |
| Ex-div: | 11 Jul | |||
| Payment: | 22 Aug | |||
| £1=€1.13 | ||||
