SIRIUS REAL ESTATE LIMITED
(Incorporated in Guernsey)
Company Number: 46442
JSE Share Code: SRE
LSE (GBP) Share Code: SRE
LEI: 213800NURUF5W8QSK566
ISIN Code: GG00B1W3VF54
6 July 2022
Sirius Real Estate Limited
("Sirius Real Estate", "Sirius" or the "Company")
AGM Statement
Sirius Real Estate, the leading owner and operator of branded business and industrial parks providing conventional space and flexible workspace in Germany and the UK, will hold its Annual General Meeting today ("AGM") at 10am (UK time) / 11am (SAST) at 33 St James's Square, London SW1Y 4JS. At the AGM, the Company's chairman, Daniel Kitchen, will make the following statement as an update on current trading:
"Following another positive set of annual results for the year ended 31 March 2022, leading to a 20% total accounting return including a 16.1% increase in dividend for shareholders, the new financial year has begun as planned despite the ongoing economic uncertainty and inflationary environment prevalent in both our markets and across Europe, and we continue to trade in line with expectations.
"Whilst the Company will not be alone in feeling the impact of inflation on its cost base this year, a combination of forward purchase agreements, volume-based discounts, and the use of selected suppliers continue to act as effective mitigants and provide us with a competitive advantage.
"The Company's financial profile was considerably enhanced as a result of last year's corporate bond issuances, as part of its strategy to transition towards unsecured debt, which allowed it to lock in low rates on extended maturities ahead of anticipated rises in interest rates this year. These resulted in a reduction in the Company's average cost of debt to 1.4%, a lengthening of its weighted average term of debt to 4.3 years and an increase in the value of unencumbered properties to €1.6 billion, as of 31 March 2022. Having slightly increased leverage to 41.6% at 31 March 2022 following the acquisition of BizSpace, the Company remains committed to targeting a net loan-to-value ("LTV") of below 40%, and will see leverage reduce through a combination of income-led capital growth, transformative capital investment and selective asset recycling.
"In respect of asset recycling, we expect to complete the previously announced sale of the Camberwell property in London in July 2022, which we had agreed at a 94% premium to the valuation at the time of its acquisition last year as part of the BizSpace portfolio, and we are currently working on some further asset recycling opportunities in both the UK and Germany.
"The Company remains focused on the execution of its strategy based on intensive asset management and increasing net operating income which is expected to underpin its recently presented earnings ambitions. With a wide range of workspaces, flexible contracts and low average rents, the Company is defensively positioned with an attractive proposition for its tenants and is well placed to meet the continued changes in occupier space requirements and to capture reversionary potential. Similarly, with a large percentage of the Company's tenancy agreements including inflation indexations, the Company is confident in its ability to generate further increases in average rental rates in the coming financial year."
For further information:
Sirius Real Estate
Andrew Coombs, CEO / Diarmuid Kelly, CFO / Alistair Marks, CIO
+49 (0) 30 285010110
FTI Consulting (Financial PR)
Richard Sunderland / James McEwan / Talia Jessener
+44 (0) 20 3727 1000
SiriusRealEstate@fticonsulting.com
NOTES TO EDITORS
About Sirius Real Estate
Sirius is a property company listed on the main and premium market of the London Stock Exchange and the main board of the JSE Limited. It is a leading owner and operator of branded business and industrial parks providing conventional space and flexible workspace in Germany and the UK. As of 31 March 2022, and following the acquisition of BizSpace, a leading UK provider of regional flexible workspace, the Group's portfolio comprised 140 assets let to 9,452 tenants with a total book value of over €2 billion, generating a total annualised rent roll of €167.1 million. Sirius also holds a 35% stake in Titanium, its €350+ million German-focused joint venture with clients of AXA IM Alts.
The Company's strategy centres on acquiring business parks at attractive yields and integrating them into its network of sites - both under the Sirius name and alongside a range of branded products. The business then seeks to reconfigure and upgrade existing and vacant space to appeal to the local market via intensive asset management and investment and may then choose to selectively refinance or dispose of assets once they meet maturity, to release capital for new investment. This active approach allows the Company to generate attractive returns for shareholders through growing rental income, improving cost recoveries and capital values, and enhancing returns through securing efficient financing terms. The Company has a strong track record for growing its income and has delivered like-for-like rent roll growth in excess of 5% for the last eight consecutive years.
For more information, please visit: www.sirius-real-estate.com
Follow us on LinkedIn at https://www.linkedin.com/company/siriusrealestate/
Follow us on Twitter at @SiriusRE
JSE Sponsor
PSG Capital
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