JOHANNESBURG - Real estate company Sirius said on Wednesday it saw continued strong occupier demand in the six months to September 30, with total annualised rent roll of E78.5 million (euros).
JSE-listed Sirius, the leading operator of branded business parks providing conventional space and flexible workspace in Germany, said it had been another promising six months of trading for the business in spite of large expected move-outs at the start of the period.
The company was trading in line with management expectations for the full year, with continued strong occupier demand supporting positive letting activity with more than 50,000 square metres (sqm) of move-ins in the period, offsetting the effect of vacating tenants.
It said organic rent roll growth was driven by an average like-for-like rental rate increase in the region of 1.6 percent, while like-for-like occupancy remained flat at 85 percent.
"It has been another encouraging six months for Sirius, during which we have completed the Titanium joint venture transaction with AXA, secured a new debt package at a historic low fixed interest rate for the company of 0.9 percent and made considerable progress on identifying and securing earnings enhancing acquisitions," CEO Andrew Coombs said.
"While our like-for-like annualised rent roll is broadly flat for this period, we are pleased at the speed we have been able to secure enough new income to replace that lost from the known move-outs that we highlighted in our annual report. The foundations have been set for a strong second half to this financial year."