Sirius Real Estate Ltd (LSE:SRE, JSE:SRE), which specialises in the ownership, development and operations of business parks throughout Germany, said trading conditions are normalising, helped by the Coronavirus (COVID-19) vaccine rollout.
Companies are reorganising their supply chains and adapting to more flexible ways of working, which the landlord said will drive demand to its out-of-town business parks which offer a range of storage, warehouse, manufacturing spaces and offices.
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"While the attractive yields available from our asset class have continued to drive competition in the investment markets, we are also pleased with the strong progress we have made in deploying capital into new opportunities throughout the first half,” chief executive Andrew Coombs said.
“However, we have kept our focus fixed firmly on acquiring assets which are either under managed and/or underutilised where we are confident our specialist asset management teams can extract value and drive net operating income.
In the six months to 30 September, like-for-like annualised rent roll rose 2.5% to €98.9mln, driven by a 2.6% increase in like-for-like rate per square metre to €6.33. Total cash balance was €187.5mln at the end of the period.
Like-for-like occupancy remained broadly flat at 86%, while total occupancy was 2% lower due to the acquisition of vacant space within the Essen and Ohringen assets.
The cash collection rate was 97.4%, with €2mln outstanding rent and service charges from total billing of €76.7mln, the majority of which are expected within 12 months.
The firm said trading is in line with expectations for the full year.
Sirius also issued bonds totalling €400mln, with a coupon of 1.125% and a maturity date of June 2026.
The group said this will allow it to further fund acquisitions as well as reducing the cost of debt, which now stands at €698mln.