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SIRIUS REAL ESTATE LIMITED
(Incorporated in Guernsey)
Company Number: 46442
JSE Share Code: SRE
LSE (GBP) Share Code: SRE
LEI: 213800NURUF5W8QSK566
ISIN Code: GG00B1W3VF54
12 April 2021
Sirius Real Estate Limited
("Sirius Real Estate", "Sirius" or the "Company")
TRADING UPDATE SHOWS PLATFORM CONTINUES TO DRIVE STRONG RENTAL GROWTH AND CASH
COLLECTION DESPITE COVID PANDEMIC
Sirius Real Estate, the leading owner and operator of branded business and industrial parks providing
conventional space and flexible workspace in Germany, provides an update on trading for the year to
31 March 2021.
Highlights
' 7.6% growth in total annualised rent roll to '97.2 million (2020: '90.3 million)
' Seventh consecutive year of like for like rent roll growth of above 5% with a 5.2% increase to
'94.3 million (2020: '89.6million)
' 3.5% increase in like for like rental rate per sqm to '6.17 (2020: '5.96) with total rate increasing
to '6.17 (2020: '5.98)
' Total occupancy increased to 87.0% (2020: 85.3%) with like for like occupancy increasing to 86.9%
(2020: 85.2%)
' Cash collection rate of 98.2% for the twelve-month period to 31 March 2021
' Return to acquisitive growth with five assets totalling '45.9 million completed within or notarised
during the year
' Continued development of the Company's Titanium venture with AXA IM Alts through the
notarisation of an acquisition in Augsburg for '79.9 million which completed shortly after the year
end
' Total cash balance of approximately '65.5 million, of which '49.1 million is unrestricted
Operating platform driving strong leasing momentum and rental growth
Despite the impact of the pandemic and some large, expected move outs in recently acquired sites
the Company achieved an increase in annualised like for like rent roll of 5.2%, the seventh consecutive
year of increases in excess of 5%.
Underpinning this strong performance was the Company's ability, through its internal operating
platform, to generate a marked year on year increase in the number of enquiries while maintaining
high sales conversion levels. In the year to 31 March 2021 a total of 17,536 enquiries were generated
representing an increase of 18.5% on the 14,795 enquiries generated last year. New lettings amounted
to 161,065 sqm (2020: 162,607 sqm) whilst the Company's sales conversion ratio remained relatively
stable at 13% (2020: 14%).
Following a modest reduction in occupancy in the first half of the financial year the Company
successfully grew like for like occupancy by 1.7% to 86.9% by the year end, while total Company
occupancy amounted to 87.0%.
The largest contributor to the increase in annualised rent roll came from a 3.5% increase in like for like
average rental rate per sqm, with the total rental rate increasing by 3.2% to '6.17.
Cash collection remains strong
Through its dedicated cash collection and on site teams the Company made a concerted effort to work
with its tenants throughout the crisis, initially to help them adjust to Germany's national lockdown,
including advising them on how to access government support initiatives, and subsequently helping
them bring their staff back to work as well as then adapting their space in order to operate safely and
efficiently.
As a result of these efforts, and due to the diverse and resilient nature of the businesses operating
from our assets, the Company will report a cash collection success rate of 98.2% for the year ended
31 March 2021. With a total of '143.8 million invoiced relating to the twelve-month period a total of
'141.1 million was collected resulting in '2.7 million of outstanding debt the majority of which the
Company expects to collect over time.
Total write offs in the period amounted to '151,000 whilst the Company agreed a total of 13 deferred
payment plans, relating to '383,000 of outstanding debt, all of which have to date been complied with
in full.
Acquisitions and disposals
With the investment market in Germany constrained by the pandemic, acquisition activity in the first
half of the financial year was subdued. However, as confidence in the market returned, the Company
was able to capitalise on opportunities as they arose, with four assets totalling '35.2 million
completing and one for '10.7 million notarised, with completion expected shortly after the year end.
The assets were acquired at a blended EPRA net initial yield of 6.9% and are characterised by the
opportunity they present to grow income through the capture of reversionary potential and selective
investment into unused or underutilised space.
The Company's Titanium venture with AXA IM Alts also grew acquisitively through the notarisation
and subsequent closing shortly after the year end, of a business park in Augsburg for '79.9 million. As
a result, Titanium now comprises seven assets with '138.8 million of assets acquired since the joint
venture was seeded with the original portfolio of five assets at an implied property value of
'168.0 million.
Within the period the Company also completed the '10.1 million sale of an asset in Weilimdorf which
was notarised for disposal in the prior financial year.
Full Year Results
Sirius will announce full year results for the year to 31 March 2021 on 7 June 2021, at which time there
will be a conference call for analysts and investors.
The financial information on which this trading update is based has not been reviewed or reported on
by the Company's external auditors or a reporting accountant.
Commenting on trading over the period, Andrew Coombs, Chief Executive Officer of Sirius Real
Estate, said: 'Over the past 12 months we have continued to grow Sirius, both from an operational
perspective and through the acquisition of further assets where we see a clear opportunity to add value
and increase income in the future. The fact that we achieved our seventh year of like for like rent roll
growth of above five per cent alongside increases in many of our key performance indicators is all the
more pleasing given the unprecedented headwinds created by the COVID-19 pandemic; it is a real
reflection of the strength of our operating platform and the ability of our team to adapt, the quality of
our assets, as well as the diversity and resilience of our tenant base. With the worst of the pandemic
seemingly behind us and vaccinations being rolled out across the globe, we look forward with cautious
optimism.'
Conference Call
There will be a conference call for analysts/investors hosted by Andrew Coombs, Chief Executive
Officer of Sirius Real Estate, Alistair Marks, Chief Financial Officer of Sirius Real Estate and Diarmuid
Kelly, Finance Director of Sirius Facilities GmbH, at 08:30 (09:30 CET/SA time) today, Monday 12 April
2021.
Dial-in UK: +44 (0)330 336 9126
Dial-in Germany: Toll-Free: 0800 589 4609
Dial-in South Africa: Toll-Free: 0800 998 654
Participant access PIN (for all participants): 7677527
For further information:
Sirius Real Estate
Andrew Coombs, CEO / Alistair Marks, CFO
+49 (0) 30 285 010 110
FTI Consulting (Financial PR)
Richard Sunderland / Claire Turvey / 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 market and premium segment of the London Stock
Exchange and the main board of the JSE Limited. It is a leading operator of branded business parks
providing conventional space and flexible workspace in Germany. The Company's purpose is to create
and manage optimal workspaces that empower small and medium-sized businesses to grow, evolve
and thrive. Sirius seeks to unlock the potential of its people, its properties, and the communities in
which it operates, so that together we can create sustainable impact, and long-term financial and
social value.
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 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,
the Company may take the opportunity to refinance the sites to release capital for investment in new
sites or consider the disposal of sites in order to recycle equity into assets which present greater
opportunity for the asset management skills of the Company's team.
Sirius also has a venture with clients represented by AXA IM Alts. Titanium was formed through the
acquisition by AXA IM Alts, on behalf of its clients, from Sirius, of a 65% stake in five business parks
across Germany. Sirius retained the remaining 35%. The venture seeks to grow primarily through the
acquisition of larger stabilised business park assets and portfolios of assets with strong tenant profiles
and occupancy. As well as its equity interest, Sirius acts as operator of the assets in the venture, on a
fee basis. Sirius will continue to grow its wholly owned portfolio through acquisitions of more
opportunistic assets, where it can capitalise on its asset management expertise to maximise utilisation
of the space, grow occupancy and improve quality of the tenants. The strategies have been clearly
defined so that the venture does not conflict with Sirius's existing business.
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
Date: 12-04-2021 08:00:00
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