Sirius Real Estate Limited (LSE:SRE, JSE:SRE, OTC:SRRLF) said it is looking for opportunities in both Germany and the UK, adding that the current financial year has started well.
The business park specialist said occupancy rates were stable in Germany, its core market, last year with the easing of energy prices offsetting wider macro-economic concerns.
Recycling of the portfolio will continue both there and in the UK, it said, with the group looking to "take advantage of the high inflationary environment".
In the year to end March 2023, annualised rent roll increased by 7.7% to €175.9mln while funds from operations rose 37% to €102.1mln, hitting its stated target of more than €100mln for the first time.
Average occupancy was 84.5%, down 1.3% on a like-for-like basis.
Adjusted profits over the 12 months increased by 24% to €96mln, though on a statutory basis they dropped to €87mln (€169mln), reflecting a €7.7mln valuation deficit compared to a €169mln surplus in the previous year.
Andrew Coombs, chief executive, said Sirius had seen “sizeable rental growth underpinned by continued occupier demand for our high-quality and affordable products in both Germany and the UK.
"Looking ahead, our outlook remains positive: our balance sheet is strong, with cash reserves of €124mln and around 95% of the group's debt secured at fixed interest rates for at least the next three years, and we continue to trade in line with market expectations.”
Net asset value was up slightly at 102.5c, while Sirius closed the year with a debt loan to value (LTV) of 41.6% and unrestricted cash of €99mln, which is earmarked for future deals, it said.
The dividend for the year rises by 28% to 5.68c, the ninth consecutive year that the annual payout had been increased by above 5%.