Sirius Real Estate Ltd said on Monday it expected its annual financial performance to be in line with market expectations as it faced a ‘more challenging economic backdrop’.

The London and Johannesburg-listed property investor said in its trading statement it had achieved an 8.1% increase in overall rent roll and a 7.7% improvement on a like-for-like basis, in the inflationary environment.

For the ninth consecutive year, the group has achieved like-for-like rent roll growth in excess of 5%, it said. Its financial year ended on March 31.

Cash collection remained robust at above 98.5% on a rolling 12-month basis.

In Germany, rental rates grew largely in line with the group’s rent roll, reflecting the stable occupancy rates in the country.

Rent roll growth in the UK was in line with the group level and rental rates had increased well in excess of inflation.

Sirius Real Estate said its balance sheet remained strong, with cash reserves of €123 million. Around 90% of the group’s debt mature in over three years.

During the past twelve months, the group’s acquisitions and disposals were largely matched at about €45 million of each.

‘Against a challenging market backdrop during the year, Sirius has delivered another period of strong operational performance,’ Sirius Real Estate Chief Executive Andrew Coombs, adding that the group expects to deliver results in line with market expectations.

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