Sirius Real Estate Limited (LSE:SRE, JSE:SRE, OTC:SRRLF) has €200 million of buying capacity to boost its business property portfolios in Germany and the UK, according to Jefferies.
The US bank, which has a 115p share price target, says that firepower comes from the leverage of its established platform in Germany to generate higher rents on “move-ins”.
SRE's acquisition strategy, meanwhile, is paying off with accretive uplifts resulting in positive rental growth with Germany (5.8%) slightly outperforming the UK (4.9%).
First-half revenues rose by 11.7% to €156.5 million with a 14.9% increase in annualised rent roll and a 5.5% increase in group like-for-rent rent roll.
Trading on a small 4% discount to assets and with a 6% dividend yield, 'buy' is Jefferies's investment rating.