Sirius Real Estate: Steadfast growth amidst economic headwinds
Year end Mar 31 · 2020 · 2021 · 2022 · 2023
Portfolio value, €-bn · 1.19 · 1.36 · 2.08 · 2.10
FFO, €-mln · 55.7 · 60.9 · 74.6 · 102.1
FFO/Shr, €-cents · 5.41 · 5.84 · 6.78 · 8.74
Div/Shr, €-cents · 3.57 · 3.80 · 4.41 · 5.68
Adj. NAV/shr €-cents · 80.6 · 93.8 · 108.5 · 109.2
The above revelations accentuate Sirius’s capability to navigate the economic tumult, backed by a strong asset management platform, stable occupancy, and strategic financial manoeuvres. The company continues to draw value and growth through its strategic dispositions and acquisitions, boding well for its value proposition and financial health.
With the company’s expected return on investment over the next five years being 100%, equivalent to an annual return of 15%, our analysis suggests a sustained attraction towards investment in Sirius. Assuming a favourable investment scenario where a suitable return level over five years is pegged at 10% per annum, Sirius emerges as a 'suitable' investment.
The key pillars underpinning our model – a substantial market, expert management, consistent delivery of robust shareholder returns, and a unique value proposition – remain steadfast. Furthermore, the shares continue to be backed by a robust dividend yield of 6.5%, underlining a compelling case for both existing and potential investors in Sirius Real Estate.
Implication for investment suitability