Sere final results September 2017
Net rental and related income shot up to EUR11.8 million (EUR3.9 million) whilst operating profit before finance costs were EUR12.6 million (loss of EUR3.2 million). Profit attributable to owners came in to EUR10.3 million (loss of EUR2.5 million). Furthermore, headline earnings per share multiplied to EUR5.2 cents per share (0.7 cents per share).
The Company has declared a fourth interim dividend in respect of the year ended 30 September 2017 of 1.5 euro cents per share based on the number of shares in issue as at the publishing date of this report. This represents an annualised rate of 4.4% based on EUR1.37, being the euro equivalent of the issue price at admission. The Company is targeting an annualised euro dividend of 5.5% based on the euro equivalent issue price as at admission and remains on target to deliver this once fully invested. Based on the Euro:GBP exchange rate as at 30 September 2017, this would represent an annualised rate of 6.6% against an initial GBP1 invested at admission. This will be fully covered by contractual income receivable from the portfolio.
Total dividends payable in respect of the financial year amount to 5.2 euro cents per share.
The Company is close to being fully invested having executed the strategy outlined at IPO to establish a quality portfolio of commercial real estate in the growth markets of Western Continental Europe. We have a remaining investment capacity of approximately EUR30 million which is already allocated to an identified pipeline of opportunities in our target markets.
Economic growth in our target markets is advancing and this is having a positive impact on occupier demand and rental levels. A number of flagged risks to European economies, such as general elections and European break-up, have had outcomes that are likely to result in a period of stability. Whilst there remains uncertainty around events such as Brexit, the strategic focus on winning cities and regions means the Company is well placed in changing market circumstances and may potentially benefit if the outcome to negotiations leads to more businesses locating and expanding in continental Europe.
The portfolio provides an attractive level of income together with the potential for growth. The balance sheet is stable with low gearing that is accretive to returns. The market backdrop is positive and supports potential returns from identified value-add asset management opportunities and new investments. The Investment Manager has identified a range of potential investment opportunities, both in existing and new markets, that would be accretive to the Company's earnings. We believe this provides a platform to grow the Company to benefit shareholders.
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