SIRIUS REAL ESTATE LIMITED - Results For The Year Ended 31 March 2022 And Dividend Declaration

Results For The Year Ended 31 March 2022 And Dividend Declaration

SIRIUS REAL ESTATE LIMITED
(Incorporated in Guernsey)
Company Number: 46442
JSE Share Code: SRE
LSE (GBP) Share Code: SRE
LEI: 213800NURUF5W8QSK566
ISIN Code: GG00B1W3VF54

("Sirius Real Estate", “Sirius” or the "Company")


RESULTS FOR THE YEAR ENDED 31 MARCH 2022 AND DIVIDEND DECLARATION


1.   SALIENT FEATURES

     •   Entry into the UK market through the acquisition of BizSpace for a cash consideration
         of c.£245.0 million based on an enterprise value of £380.0 million representing a net
         initial yield of 7.1%
     •   Profit before tax of €168.9 million (2021: €163.7 million)
     •   Total accounting return of 20.0% (2021: 19.5%)
     •   Strong like-for-like annualised rent roll increase of 6.4% (2021: 5.2%) in Germany
     •   Like-for-like annualised rent roll in the UK increased by 7.6% in the Company’s 4.5
         month period of ownership of BizSpace
     •   Funds from operations (“FFO”) grew by 22.5% to €74.6 million (2021: €60.9 million)
     •   Like-for-like book value increase of 9.4% (2021: 11.5%) in Germany
     •   Like-for-like book value increase of 10.6% relating to the 4.5 month period of ownership
         of BizSpace in the UK
     •   Net asset value per share increased by 15.5% to 102.04c (2021: 88.31c) and EPRA
         NTA per share increased by 16.2% to 107.28c (2021: 92.29c)
     •   €201.9 million on balance sheet acquisitions completed or notarised in the year in
         Germany
     •   Net Loan-to-Value of 41.6% (2021: 31.4%)
     •   Average cost of debt of 1.4% (2021: 1.5%)
     •   Operating profit increased by 10.3% to €188.2 million (2021: €170.7 million)
     •   Basic earnings per share reduced slightly by 4.8% to 13.48c (2021: 14.16c)
     •   Headline earnings per share decreased by 5.8% to 5.32c (2021: 5.65c)
     •   Dividend in respect of the six-month period ended 31 March 2022 of 2.37c per share
         declared, resulting in a total dividend for the year of 4.41c (based on 65% of FFO
         payout), representing an increase of 16.1% on the 3.80c dividend for the year ended
         31 March 2021 



Commenting on the results Andrew Coombs, Chief Executive Officer of Sirius Real
Estate, said: “Against an ongoing period of challenging market conditions, Sirius has
delivered another very positive set of annual results leading to a 20% total accounting return
including a 16.1% increase in dividend for shareholders. This strong operating performance
was underpinned by continued demand and asset management led rental growth across both
our German and UK platforms. The Company grew acquisitively through the commitment of
over €200 million into acquisitions in Germany, as well as the acquisition of BizSpace in
November 2021 for £380 million. Further, in issuing two corporate bonds amounting to €700.0
million the Company not only benefited from increased financial capacity but also reduced its
weighted average cost of debt to 1.4%, increased its weighted average term of debt to 4.3
years and increased the value of its unencumbered properties to €1.6 billion.

“We remain focused on driving property returns through the capability of our internal operating
platforms and, despite the inflationary environment and the uncertainty created by the situation
in Ukraine, are confident that we can continue to deliver attractive risk-adjusted returns
through active asset management. Looking ahead, we expect the ten assets acquired or
notarised in Germany during the period to have a greater impact on earnings in FY23
compared to FY22, whilst the encouraging operating performance of BizSpace provides
further income growth opportunities.”


2.   DIVIDEND

     The Board has authorised a dividend in respect of the second six months of the financial
     year ended 31 March 2022 of 2.37c per share, representing a pay-out of 65% of FFO, an
     increase of 19.7% on the 1.98c per share dividend relating to the same period last year,
     which was also based on 65% of FFO. The total dividend for the year is 4.41c, an increase
     of 16.1% on the 3.80c total dividend for the year ended 31 March 2021.

     It is expected that, for the dividend authorised in respect of the six-month period ended
     31 March 2022, the ex-dividend date will be 6 July 2022 for shareholders on the South
     African register and 7 July 2022 for shareholders on the UK register. It is further expected
     that for shareholders on both registers the record date will be 8 July 2022 and the dividend
     will be paid on 18 August 2022. A detailed dividend announcement will be made on
     20 June 2022, including details of a scrip dividend alternative.


3.   SHORT-FORM ANNOUNCEMENT

     This short-form announcement is the responsibility of the directors of the Company. It
     contains only a summary of the information in the full announcement (‘Full
     Announcement”) and does not contain full or complete details. The Full Announcement
     can be found at:
     https://senspdf.jse.co.za/documents/2022/JSE/ISSE/SREE/Final22.pdf

     A copy of the Full Announcement is also available for viewing on the Company’s website
     at https://www.sirius-real-estate.com/news/regulatory-news/ or may be requested and
     obtained in person, at the Company’s registered office or the office of the sponsor, at no
     charge, during office hours.

     Any investment decisions by investors and/or shareholders should be based on
     consideration of the Full Announcement, as a whole.

     These annual results have been audited by the Company’s auditors, Ernst & Young LLP,
     who expressed an unmodified audit opinion thereon. The audit opinion also includes
     communication of key audit matters. This opinion is available, along with the annual
     financial statements on the Company’s website at www.sirius-real-estate.com.


13 June 2022

Sponsor
PSG Capital  

Date: 13-06-2022 08:00:00
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