Sirius Real Estate Limited (LSE:SRE, JSE:SRE, OTC:SRRLF) reported 6.4% growth in rent roll for its German portfolio and 7.5% for its new UK business in what chief executive Andrew Coombs said was a “transformative year”.
Total annualised rent roll from its branded business and industrial parks in the two countries increased to €167.1mln (£139.9mln) from €96.5mln for the 12 months to end-March 2022.
Coombs said the transformative nature of year was down to “two key firsts, which saw the company access the corporate bond market, successfully raising €700mln through two oversubscribed issuances, and the strategic acquisition of BizSpace, providing us with geographic diversification and an established operating platform in the UK which is already showing positive momentum in terms of growing rents.”
BizSpace, which was purchased in November for around £245mln cash, aided by a £137mln equity raise, had a rent roll of £45.1mln at the end of the period, with occupancy increasing to 90.5% from 88.7% and like-for-like average rate per sq ft up 6.5% to £11.69.
In Germany, Sirius recorded its eighth consecutive year of like-for-like rent roll growth above 5%, with the portfolio expanded via a record number of assets during the year to add more than 118,000 sq m of vacant space.
Free cash of roughly €126mln was on the balance sheet at year-end, with total cash exceeding £150mln and total debt of €994.5mln following the bond issue.
“Over the past year, our business model has proven its ability not just to be resilient but to grow against an exceptionally challenging market backdrop and, as we emerge fully from the pandemic, we would expect both platforms to continue to perform strongly going forward,” said Coombs.
“However, it would be remiss not to mention market uncertainty created by current geopolitical events which we continue to monitor closely. In the meantime, our thoughts go to everyone impacted by the situation in the Ukraine and we welcome all steps that lead to a cessation of hostilities and an end to the conflict."