Sirius Real Estate Ltd is trading in line with expectations, with continued rental growth and a strong balance sheet across the board.
In the six months to 30 September 2022, the leading owner and operator of branded business and industrial parks in Germany and the UK, said the performance is pleasing given the economic environment.
Germany’s annualised rent roll jumped 2.4% to €115.2mln, while the UK’s advanced 4.1% to £46.5mln.
They had a 12-month rolling cash collection rate of 98% and 99.3% respectively.
The strong performance comes despite many large tenants vacating in the first half, similar to patterns over recent years.
"Despite the concerns in Europe over the impact of the war in Ukraine, the resulting issues with energy supply and the current inflationary and uncertain environment, Sirius has continued to see high demand for all of its product offerings in the period,” Andrew Coombs, chief executive, commented.
The only purchase in the period was the completion in May of a property in Potsdam, Germany, which is adjacent to an existing site owned by Sirius, for €900,000.
It also agreed to €43.7mln in acquisitions in Düsseldorf and Dreieich, which were completed in October 2022.
The acquisitions were predominantly funded by the disposal of two assets in the period in Magdeburg, Germany and Camberwell in the UK, with an aggregate sales price of €33.6mln.
Sirius still has €1.6bn of unencumbered assets in March 2022, representing a relatively high gross yield of nearly 7% in Germany and almost 12% in the UK.