Sirius Real Estate Limited (LSE:SRE, JSE:SRE, OTC:SRRLF) said the rent roll from its business property portfolio in Germany and the UK rose by 5.5% in the six months ended 30 September.
On a year-on-year basis, rent roll was up by 14.9% helped by the ongoing asset acquisition programme, said the trading update.
Germany marginally outperformed the UK, with rent roll growth helped by stronger rates despite expected regular move-outs at the beginning of the period, which slowed growth in occupancy.
Occupancy should strengthen in the second half in line with seasonal trends, the update added, with the group's properties in Germany expected to increase in value.
In the UK, like-for-like rates continue to grow strongly, ahead of overall rent roll growth, but some seasonal move-outs have impacted occupancy.
UK valuations should stabilise it added, in contrast to recent periods, as the transactional market improves.
“Overall, we expect to announce a positive valuation movement at the group level at the period end,” said the statement.
Sirius added it is also in exclusive talks on several asset acquisitions in both Germany and the UK.
Free cash reserves were approximately €297 million as of 30 September with no significant debt maturities until June 2026 while the weighted average cost of debt is 2.1% said the statement.
Andrew Coombs, chief executive, said: "During the first half of our financial year we have continued to perform well, with our asset management team once again driving like-for-like rent roll growth well ahead of inflation.
“This organic growth alongside the rental contribution from the well-timed series of acquisitions we have made in recent months combined to drive an almost 15% increase in overall rent roll, underlining the continued demand for space within our portfolio.”