Sirius Real Estate Limited (LSE:SRE, JSE:SRE, OTC:SRRLF)’s full-year results have received a warm reception from City analysts.
Following the results, broker Panmure Gordon said it was “positive on future management actions driving upgrades to our medium-term sustainable earnings forecast” of €120 million.
Sirius’ 10th consecutive dividend uplift drew the attention of Panmure analysts, who noted this is something “many ‘prime’ portfolios can’t (and won’t be able to) claim”.
Panmure said Sirius’ 7% rent roll growth, which was supported by a 2% increase in German occupancy, was “driven by supportive utility pricing during years of stress (which) has increased loyalty and stickiness”.
The company’s balance sheet, comprising €214.5 million in the bank, is “solid”, added analysts.
Shares are a buy with a 120p target price.
NTA exceeds forecasts
Peel Hunt focused on Sirius’ 17% compound earnings-per-share growth over the past nine years, which is “the highest in our coverage universe”.
Sirius’ net tangible assets per share, which increased 1.6% to €1.1, exceeded Peel Hunt’s forecasts and the broader market consensus.
The broker also has a 'buy' rating on the stock, with a slightly lower price target of 115p.
Sirius shares were swapping for 99.65p at the time of writing.