Proactive Investors - Sirius Real Estate Limited (LON:SRET) reported a robust performance for the six months ending 30 September 2023, penning a 7.3% increase in total revenue to €140.1 million (£122.6 million), up from €130.6 million in the same period last year.
This growth was attributed to a 7.7% rise in like-for-like rent roll across the group, with a notable 7% increase in Germany and a 9.0% increase in the UK.
The company is on track to achieve its 10th consecutive year of more than 5% like-for-like rent roll increases at the group level.
Adjusted profit before tax increased by 2% to €49.9 million with adjusted earnings per share seing a 13.5% increase to 4.21 euro cents, reflecting positive operational developments year on year.
A €6.1 million decrease in the value of Sirius’ UK book was offset by a €13.0 million increase in the German book.
The group's EPRA net yield improved to 6.7% and like-for-like group occupancy remained stable at 84.5%, with tenant retention in Germany increasing significantly.
Sirius’ balance sheet remains strong, with the weighted average cost of debt stable at 1.4% and a net loan-to-value (LTV) of 40.8%.
Chief executive Andrew Coombs was pleased with Sirius’ strong operational performance, investment-grade-rated balance sheet and robust trading, all of which helped to deliver consistent growth in funds from operations and a 1.1% year-on-year increase in dividend per share to 3 cents.
Sirius recycled around €100 million of assets through four post-balance sheet transactions, comprising €47.4 million of disposals in Germany and €52.9 million of acquisitions in the UK, “highlighting our ability to crystallise returns from our mature assets”, said Coombs.
He continued: "We continue to be mindful of the uncertain market backdrop, however, our asset management and marketing initiatives continue to give us confidence in the group's growth prospects.
“Looking ahead, our outlook is positive and we remain confident in our ability to continue to deliver attractive risk-adjusted returns to shareholders."
Sirius proposes £145m capital raise
In conjunction with today’s interims, Sirius has announced a £145 million capital raise to fund a series of near-term acquisitions.
The capital raise will involve a mix of institutional and retail offerings, including an accelerated book-building process, a South Africa placing, and a retail offer through PrimaryBid.
Sirius aims to invest in under-utilised, multi-let, mixed-use properties located in areas with high commercial activity and good transport links.
The identified acquisition pipeline includes eight properties, four in Germany and four in the UK, requiring a combined investment of approximately €85 million and £45 million, respectively.
“The fundraise we are proposing this morning follows another positive set of financial and operational results from Sirius, which once more demonstrates our ability to drive value throughout the economic cycle,” said Coombs.