Sirius continues to grow through Covid-19 headwinds in Germany
CAPE TOWN - SIRIUS Real Estate, the owner and operator of branded business and industrial parks in Germany that is also listed on the JSE, said it would report its seventh consecutive year of like-for-like rent roll growth of above 5 percent in the year to March 31.
The group said in a trading update yesterday that likefor-like rent roll growth over the period was up 5.2 percent to €94.3 million (about R1.64 billion). Sirius’s share price increased 1.98 percent to R19.05 by yesterday afternoon. Chief executive Andrew Coombs said: “Over the past 12 months we have continued to grow Sirius 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 total annualised rent roll was up
7.6 percent to €97.2m. Occupancy increased to 87 percent from
85.3 percent, with like-for-like occupancy increasing to 86.9 percent from 85.2 percent, a statement said. The cash collection rate was 98.2 percent for the 12 months. Five assets were acquired for €45.9m during the year. The Titanium venture with AXA IM Alts continued to be developed after a €79.9m acquisition in Augsburg was completed shortly after year-end. The cash balance stood at about €65.5m, of which €49.1m was unrestricted. The rent roll growth was in spite of the impact of the Covid-19 pandemic and some large expected move-outs in recently acquired sites. Underpinning the strong performance was a marked year-on-year increase in the number of enquiries while maintaining high sales conversion levels. About 17 536 inquiries were generated in the year to March 31, an increase of 18.5 percent on the 14 795 inquiries last year. New lettings amounted to 161 065m² versus 162 607m² last year, while the sales conversion ratio was stable at 13 percent. The largest contributor to the increase in the annualised rent roll came from a 3.5 percent increase in like-for-like average rental rate per square metre, with the total rental rate increasing by 3.2 percent. The directors said the team worked with the tenants through the Covid-19 crisis, initially to help tenants 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. Sirius shares closed 0.37 percent lower at R18.61 on the JSE yesterday.