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Real Estate

Sirius Real Estate declares dividend while most tenants pay rent

The final dividend was raised by 4% on last year to 1.80c per share, bringing the total distribution up 6% to 3.57c

Sirius Real Estate Limited (LON:SRE) has declared a final dividend while most tenants have been paying rent during the crisis.

The final dividend was raised by 4% on last year to 1.80c per share, bringing the total distribution up 6% to 3.57c.

The Germany-focused property owner said April and May rent collections were within 98.8% of normal working practice, while tenants accounting for 74% of annual income renewed their contacts in those two months.

In May the office landlord finalised 130 new lettings, against 119 in April.

In the year to March, funds from operations increased 15% to €55mln, with net asset value per share up 9% to 77.35c.

Nudge up to target price

House broker Peel Hunt raised the target price to 90p from 85p after increasing its forecasts for this year's funds from operations by 4% to €53mln.

"As Germany begins to return to work, Sirius’ rent collection and new business generation look robust," analysts commented.

"It may not be plain sailing as business is weaned off state support, but Sirius’ proven model means it remains very well placed."

Shares dipped 2% to 78.03p on Monday morning.

--Adds analyst's comment, shares--

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