Sirius Real Estate Limited AGM Statement (4328R)
July 06 2022 - 2:00AM
UK Regulatory
TIDMSRE
RNS Number : 4328R
Sirius Real Estate Limited
06 July 2022
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 EUR1.6 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 EUR2 billion,
generating a total annualised rent roll of EUR167.1 million. Sirius
also holds a 35% stake in Titanium, its EUR350+ 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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