Trading Statement

RNS Number : 0879J

Sirius Real Estate Limited

01 April 2015

 



1 April 2015 

Sirius Real Estate Limited

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

Trading Statement

Sirius Real Estate, the leading operator of branded business parks providing conventional space and flexible workspace in Germany, is pleased to announce the following trading statement for the financial year to 31 March 2015.

This has been another successful year for the business during which the Company has commenced a sustainable dividend programme, our market capitalisation has increased significantly to €265 million as at 31 March 2015 and we were pleased to report that Sirius was added to the AIM FTSE 100 index in February 2015. The Company expects the results for the 12 months to 31 March 2015 to be in line with market expectations. The main highlights of the year include:

·     As at 31 March 2015, annualised rental income of the pre-acquisitions portfolio* had increased by
 5.6% to €43.6 million (31 March 2014 €41.3 million) with the average rental rate across the pre-
acquisitions portfolio* increasing to €4.58 per sqm (31 March 2014: €4.46) and occupancy increasing
 to 78% (31 March 2014: 76%).  Annualised rental income of the total portfolio including acquisitions is
 €50 million, with an average rental rate of €4.74 per sqm.

* Pre-acquisitions portfolio excludes the acquisitions in Potsdam, Mahlsdorf, Bonn and Aachen announced previously and the Cottbus asset which was sold on 13 November 2014.

·     The Company has continued to progress its capex programme to transform approximately 100,000 sqm of predominantly previously unlettable space.  It is expected that at 31 March 2015 around €2.7 million of the forecast €8.9 million will have been invested, in transforming approximately 33,730 sqm of space which is already generating around €1.4 million of rental income on an occupancy of 64%. 

·     Demand for space has remained strong with new lettings of around 120,000 sqm during the year compared to 113,784 sqm in the prior year.   This more than offsets move-outs of around 93,000 sqm (2014: 113,874 sqm).

·     On 5 December 2014, the Company achieved a successful dual listing on the AltX of the Johannesburg Stock Exchange and was the first ever Company to do so under the newly introduced fast track listing process.

·     At the time of listing in South Africa, the Company raised €40 million to support the expansion of the property portfolio and has since announced the acquisition of 4 business parks for a total consideration of €70.7 million, with a net initial yield of 8.1%. A new €36 million debt facility from BerlinHyp has been fully drawn down against 3 of the 4 business parks with an interest rate of 2.85% fixed for 5 years.

·     The portfolio now extends across 33 business parks within which there are over 330 individual buildings comprising over 1 million sqm of lettable space.

·     The Company has re-introduced dividend payments with the stated objective of paying out 65% of Funds from Operations.  In the year the Company paid a 0.3c per share dividend in August 2014 and 0.77c per share in December 2014.

The Board looks forward to providing a more detailed report on the Company's performance and future plans when it announces its full year results for the 12 months to 31 March 2015 at the end of May.

Andrew Coombs, CEO of Sirius Real Estate, commented, "This has been a very successful period for the business and our task now is to continue this positive momentum. This means continuing to grow the rent roll at improved average rental rates and higher occupancy through both good asset management and the extensive capex programme which is focused on approximately 50% of the current vacant space. Demand for both our conventional space and our flexible workspace solutions remains strong and we are pleased with progress already being made on the new properties acquired this year. Whilst we remain on target to reduce the Group's loan-to-value ratio to at least 40% in the near term, our ability to access debt at very low cost will also have a significant impact on our returns to shareholders and accordingly we are focused on improving the terms of the Group's debt financing packages."

An interview with BRR media and Andrew Coombs will be available to download from the Company's website from 9am today at http://www.sirius-real-estate.com/investor-relations/audiocasts/

Enquiries:

Sirius Real Estate                         

Andrew Coombs, CEO                                                                          [phone]

Alistair Marks, CFO

Peel Hunt

Capel Irwin                                                                                             [phone]

Hugh Preston

PSG Capital

David Tosi                                                                                             [phone]

Willie Honeyball

Finncap

Stuart Andrews                                                                                      [phone]

Paul Harrington

Novella                                     

Tim Robertson                                                                                       [phone]                  Ben Heath    

 

END

 

 

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