From The Dealing Desk 03-01-18

3 January 2018 | Stephan Maritz

Sirius Real Estate (SRE) - Fourth Instalment of Property Stocks


The fourth property stock in our "Introducing Property Stocks" series is Sirius Real Estate.

Sirius Real Estate Limited (SRE) is a real estate holding company which has its primary listing in London (on the LSE) and secondary holding on the JSE. The Company is engaged in the investment in and operation and development of commercial property to provide workspace in Germany. The Company has a portfolio of approximately 40 business parks across Germany.

The Company’s core strategy is the acquisition of industrial and office 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.

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 opportunities - this has proven very successful so far.

Sirius recently published impressive 6-month results for the period ended 30 September 2017:

  • Operating profit increased 40.6%
  • Net profit increased increased 54.8%
  • Headline Earning per share (HEPS) increase by 3.3% to €1.58 cps (2016: €1.53 cps)

Some of the contributing factors to the great set of results have been:

  • Strong occupier demand
  • German economy grew at its fastest annual pace (3.2%) since 2011
  • Business are expanding production capacity on the back of increased industrial production in Germany

Sirius’s secondary listing on the JSE was transferred to a primary listing on the 16th of November 2017. This will allow Sirius to be included in the South African Property Yield (SAPY) Index in future which will be huge boost (to any company).


credit: Graph Provided by Sharenet Advanced Online Charts

Trade SRE From 0.3%


Stephan Maritz
Head of Trading and Portfolio Analyst

Stephan heads up Sharenet’s trading desk and is a full-time trader and portfolio analyst, also responsible for equity research across industries. Stephan developed his passion for the markets while working in the Stockbroking division of Standard Bank and is especially passionate about CFD trading. Stephan studied at the University of Stellenbosch and completed a BComm Honours (Business Management) with a focus in Portfolio Management and Bonds. He has also passed the JSE Equity Trader’s Exam, RE5 (Representative) and RE1 (Key individual) Exams as well as the Registered Persons Exams (RPEs) in order to give advice on equities.

The information contained in this article is for informational purposes only and must not be regarded as a prospectus for any security, financial product or transaction. It is neither to be construed as financial advice nor to be regarded as a definitive analysis of any financial issue. Investors should consider this research/article as only a single factor in making their investment decision. We recommend you consult a financial planner/advisor to take into account your particular investment objectives, financial situation and individual needs. The views and opinions (where expressed) in this article are those of the author and do not necessarily reflect the official policy or position of Sharenet.