Sirius Real Estate Limited Trading Statement (1145C)
April 11 2017 - 1:00AM
UK Regulatory
TIDMSRE
RNS Number : 1145C
Sirius Real Estate Limited
11 April 2017
11 April 2017
Sirius Real Estate Limited
("Sirius Real Estate", "Sirius" or the "Company")
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 twelve months to 31 March 2017.
This has been another successful year for the business
culminating in the move up to the Main Market of the London Stock
Exchange and to the Main Board of the Johannesburg Stock Exchange,
both on 6 March 2017. Sirius grew substantially during this period
with acquisitions of EUR103 million agreed or completed and
annualised rental income increasing to reach over EUR70 million as
at 31 March 2017 (2016: EUR60.5 million). Sirius also successfully
began its recycling programme on a significant scale with EUR103
million of disposals agreed or completed at values materially above
book value. As a consequence, the Company has further enhanced its
strong long-term position in the German business park and real
estate market and is pleased to confirm that it expects results for
the twelve month period to be in line with expectations.
The main highlights for the period include:
-- Another successful lettings period with in excess of 150,000
sqm of new deals signed and with occupancy increasing to 81% at the
year end (2016: 80%). Germany has proven to be a resilient
investment and occupier market during a year of political change in
Europe and it continues to be an attractive economy in which to
operate. Sirius' proposition of offering a mix of conventional
space and flexible workspace across a network of 44 branded
business parks throughout Germany is enjoying the benefits of
operating in this market.
-- Rental income has significantly increased over the period
with the second half of the year being particularly strong. Much of
this has come from the successful capital investment programme
aimed at transforming 207,000 sqm of sub-optimal areas into prime
lettable space or into one of the Company's Smartspace products.
More than 160,000 sqm of this space has been fully renovated and is
currently either let or being marketed.
-- EUR103 million of acquisitions have either completed in the
year or are notarised and in line for completion early in the
current financial year. Earlier this month, the Company completed
the previously announced acquisition of a multi-let office building
in Frankfurt for EUR4.5 million and it is expected that the
purchase of the asset in Cologne for a total consideration of
EUR22.9 million will be completed in May 2017.
-- EUR103 million of disposals have either completed in the year
or are notarised to complete early in the new financial year. The
EUR85 million sale and leaseback of Rupert Mayer Str. business park
in Munich is expected to complete at the end of April 2017 and the
EUR11 million disposal of the business park in Dusseldorf at the
end of June 2017. The proceeds from these disposals along with the
recent EUR15 million equity placing will be used to acquire the
Cologne asset mentioned above as well as provide funds for the
acquisition of a further EUR105 million of additional assets. The
Company is reviewing a number of opportunities to acquire multi-let
office and warehouse business parks, four of which are under
exclusive negotiations, and will report further progress on this in
due course.
On 25(th) April 2017, Sirius will hold a Capital Markets Day in
London for analysts and institutional investors at which the
Company will provide a more detailed insight into Germany's
commercial real estate market, the German SME sector and the
Company's operating platform.
The Board also looks forward to providing a more detailed report
on the Company's trading performance and outlook when it announces
its full year results for the twelve months to 31 March 2017,
currently scheduled for late in June 2017.
Andrew Coombs Chief Executive Officer of Sirius Real Estate,
said, "This has been an excellent period for the Company with
further substantial growth being achieved in the year. With the
move to the main markets in London and Johannesburg best
exemplifying the success we have experienced over the last few
years and our ambitions for the future.
Our focus now is on further strengthening Sirius' position in
the German business park and real estate sector, as we enter our
eleventh year in operation in this market. We aim consistently to
add shareholder value through our asset management techniques to
deliver above average returns from our investment programmes. We
therefore have a solid strategy in place for enhancing value from
our existing assets and we believe this has been further
strengthened with the option to recycle capital from mature and
non-core assets as shown by the recent sales. We believe that we
are well placed to continue this performance into the future whilst
also carefully monitoring and managing risk."
Enquiries:
Sirius Real Estate +49 (0)30 285010110
Andrew Coombs, CEO
Alistair Marks, CFO
Novella +44 (0)20 3151 7008
Tim Robertson
Toby Andrews
About Sirius Real Estate
Sirius is a property company listed on the main market and
premium segment of the London Stock Exchange and the main board of
the Johannesburg Stock Exchange. It is a leading operator of
branded business parks providing conventional space and flexible
workspace in Germany. The Company's core strategy is the
acquisition of business parks at attractive yields, the integration
of these business parks into its network of sites under the
Company's own name as well as offering a range of branded products
within those sites, and the reconfiguration and upgrade of existing
and vacant space to appeal to the local market, through intensive
asset management and investment. The Company's strategy aims to
deliver attractive risk adjusted returns for shareholders by
increasing rental income and improving cost recoveries and capital
values, as well as by enhancing those returns through financing its
assets on favourable terms. Once sites are mature and net income
and values have been optimised, Sirius may consider their disposal
in order to recycle equity into assets which present greater
opportunity for the Group's asset management skills.
For more information, please visit:
www.sirius-real-estate.com
This information is provided by RNS
The company news service from the London Stock Exchange
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