Sirius Real Estate records 19.5% accounting return
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SIRIUS Real Estate, which owns branded business and industrial parks in Germany, performed well in the year to March 31, declaring a higher dividend for its 14th consecutive reporting period, chief executive Andrew Coombs said yesterday.
An 1.98 euro cents (32.3c) dividend was paid for the six-month period ended March 31, bringing the total payout for the year to 3.80 euro cents. Like-for-like rent increased by 5.2 percent in this period while the growth last year was 6.1 percent.
Coombs said the group had generated an accounting return of 19.5 percent, bringing to seven the number of years of double digit growth, with the average accounting return at just over 16 percent.
He said they were seeing high levels of investment in the German market with the country viewed as resilient in the uncertain Covid-19 global economic environment. Mixed use industrial property such owned by Sirius had also emerged as a resilient asset class.
About 40 percent of the German population had received at least one Covid-19 jab and the pace of vaccinations across Europe was speeding up, Coombs said. Pre-tax profit rose strongly to €163.7 million from €110.8m.
Funds from operations grew by 9.3 percent to €60.9m. Like-for-like book value increased 11.5 percent versus 9.9 percent last year. Net asset value was up 14.2 percent to 88.31 euro cents. Some €45.9m acquisitions were completed in the year, while €79.9m of acquisitions were notarised in the Titanium venture with AXA IM Alts.
Sirius’ net loan to value stood at 31.4 percent, slightly lower than 32.8 percent at the end of the 2020 Coombs said: “Our diverse portfolio continues to be attractive to our broad occupier base which comprises large domestic and international businesses, as well as the SMEs …”
Sirius shares closed 0.57 percent lower at R19.13 on the JSE yesterday.