Trading Statement

RNS Number : 3793E

Sirius Real Estate Limited

09 April 2014

 



Sirius Real Estate Limited

("Sirius" or "the Company" or "the Group")

Trading Statement

Sirius Real Estate, the leading operator of branded business parks providing flexible workspace to the German SME market, is pleased to announce the following trading update for its current financial year to 31 March 2014. 

This has been a successful and transformational year for the business reflected in:

·     A significant uplift in the profitability of the Group as a result of past investment and restructuring;

·     A successful equity placing, raising €40 million in December 2013;

·     The completion of the refinancing of all Group borrowings with four new debt facilities;

·     The successful sale of land and non-core properties generating €21.2 million since 1 April 2013;

·     The identification of a series of highly accretive opportunities within the core portfolio being pursued through a new capex programme;

·     The identification of potential earning enhancing acquisitions within Sirius' specific market sector; and

·     The Company's commitment to re-commence paying dividends, a policy for which shall be set out with the announcement of the full year results, to be released in the week commencing 16^th June 2014.

With the completion of the equity capital raising and refinancing of all debt, the Company has taken important steps to strengthen its capital structure, which enables it to explore growth opportunities.  The results for the year to 31 March 2014 are expected to be in line with market expectations.

As at 31 March 2014, annualised rental income was €41.2 million (30 September 2013: €40.8 million), with occupancy level at 75% and the average rental rate per sqm across the portfolio was €4.47 (30 September 2013: €4.44).

Across the Company's portfolio of 30 sites, within which there are approximately 700 properties, demand for space has remained good.

The Group has completed four new debt facilities totalling €227 million in the last 15 months, with debt expiries ranging between January 2017 and August 2023. As a result, the weighted average expiry of the Group's bank facilities and outstanding secured bonds has increased to 5.5 years.

Andrew Coombs, CEO of Sirius Facilities commented, "The Company has delivered on all its targets over the last 12 months and looks forward to reporting on this performance in detail in June 2014 when we will announce our full year results. However, our focus is now on the new financial year and our ability to generate greater returns for shareholders through a mix of organic and acquisition led growth.  More specifically we believe there are immediate opportunities within the core portfolio to generate attractive returns by turning current voids into lettable areas. There are also opportunities for Sirius to use its expertise in this niche market to make acquisitions which will be accretive to the Company's earnings."

Enquiries:

Sirius Real Estate                         

Andrew Coombs, CEO                                                                          [phone]

Alistair Marks, CFO

Peel Hunt

Capel Irwin                                                                                             [phone]

Hugh Preston

Novella                                     

Tim Robertson                                                                                       [phone]

Ben Heath        

 

END

 

 

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