Sirius Real Estate sees rental income at new high, refinances
The AIM-listed Sirius Real Estate, which owns and operates self-storage facilities, business parks, industrial complexes and offices across Germany, said this week that it expects its full-year results to be in line with market expectations, as annualised rental income hit an all-time high at year-end.
Sirius said its performance had been strong in the financial year ended March 31, with annualised rental income exceeding €60.0 million for the first time at year-end. During the year it completed three acquisitions, which together added €4.2 million to the rent roll and €3.9 million to net operating income on an annualised basis.
The company added it is in the advanced stages of negotiating "more favourable" terms on its debt facility, including securing a new €137.0 million facility at a "significantly lower" interest rate. The Berlin Hyp AG and Deutsche Pfandbriefbank AG facility currently has €111.0 million outstanding and three years remaining of its term.
Sirius said its capital investment programme continues to be a strong driver of organic rental growth and, at March 31, around 65% of the original programme to transform 100,000 square metres of unlettable or under-rented space had been completed.
Sirius noted two business park acquisitions will complete in May, and said it anticipates good ongoing growth in rental income next year. It said it is "well placed" for the new financial year.
"Prevailing market conditions remain supportive for the business. The German economy is robust and we continue to capitalise on the low interest rate environment to reduce our cost of debt significantly, diversify our lenders and extend the weighted average expiry of our funding," said the company's CEO Andrew Coombs.
Sirius Real Estate operates a diversified property portfolio across Germany with more than 1 million sqm of leasable space. The company specializes in business parks but also offers portable-storage containers, flex office and warehouse-storage space as also offers portable-storage containers, flex office and warehouse-storage space as well as more traditional office and self-storage services through Sirius Facilities GmbH. Sirius Facilities operates 38 commercial locations, with its primary self-storage offering branded as Smartspace.