02:00 Wed 07 Oct 2020
Sirius Real Estate - Trading Update
SIRIUS REAL ESTATE LIMITED
(Incorporated in
Company Number: 46442
JSE Share Code: SRE
LSE (EUR) Share Code: ESRE
LSE (GBP) Share Code: SRE
ISIN Code: ISIN GG00B1W3VF54
Sirius Real Estate Limited
("Sirius Real Estate", "Sirius" or the "Company")
Trading Update - Continued strong cash collection and demand demonstrating resilience
Six months to
Sirius Real Estate, the leading operator of branded business parks providing conventional space and flexible workspace in Germany, provides the following trading update for the six months to
Highlights
· 97.2% cash collection rate for April-
· Total enquiries up 17.4% on the same period last year
· Sales conversion rate of 13.4% for the six-month period to
· Total annualised rent roll
· Like-for-like occupancy 83.9% (
· Conferencing revenues up over 50% year on year since reopening
· Notarised the acquisition of a business park located in Norderstedt for
· Total cash balances of approximately
· Trading in line with management expectations for the full year (see analyst consensus
Significant growth year on year in enquiry levels
The Company is pleased to report an increase in enquiry levels of 17.4% compared to the same period in the last year (8,284 total enquires for the period compared to 7,054 enquiries in the same period last year). Analysis of enquiry data confirms a particular rise in the number of enquiries for storage, which makes up 36% of the Company's total lettable space. This is coming from new commercial tenants as well as from new self-storage customers.
Lettings remain robust as sales conversion ratios return to near targeted levels
Following the immediate impact of the COVID-19 pandemic, the Company's enquiry to sales conversion ratio fell to just under 10% in April, compared to our internal target of 15%. However, since June there has been progressive development in the enquiry to sales conversion ratio which has resulted in an average conversion ratio of 13.4% in the period.
As a result, while the months of April to
Total annualised rent roll of
Whilst the Company experienced a small reduction in like for like occupancy of approximately 1.3% between
Cash collection remains strong
The Company's response to the COVID-19 pandemic has been split into three phases. The first phase involved managing the business during Germany's national lockdown while the second phase was focused on working with tenants as they brought their staff back to work.
Since July, the Company has been in the third phase of its response focused on assisting tenants in adapting to changes in their space requirements whilst helping them return to operational normality.
At the end of the six-month period just
We have already reduced the previously reported
The encouraging cash collection performance to date is reflective of the Company's ability to engage actively with and manage its tenants as well as the extent and efficiency with which the German government has acted to support businesses during the COVID-19 pandemic.
Conferencing revenues up over 50% year on year since reopening in July
As previously announced, the Company made the precautionary move to suspend conferencing following government issued guidelines in early April. The business re-opened in July and has performed well with revenue for the three months between July to September up 53.9% to
Balance Sheet positions company for growth
As previously announced, the Company successfully drew down the final
As at
Acquisitions and disposals
In
In addition, the Company completed the disposal of the Weilimdorf asset in
As markets have stabilised and transactional activity increased in Germany the Company has continued to develop its pipeline of acquisition opportunities for both its own balance sheet and within the Titanium venture with AXA IM - Real Assets.
Half Year Results
The Board looks forward to providing a more detailed report on the Company's trading performance and outlook when it announces half‐year results on
The financial information on which this trading update is based has not been reviewed or reported on by the Company´s external auditors or a reporting accountant.
Commenting on trading over the period, Andrew Coombs, Chief Executive Officer of Sirius Real Estate, said: "To deliver these strong preliminary first half figures in the face of the pandemic that we continue to contend with, is clear demonstration of the resilience of our business model and the tenacity of the Sirius team.
"Our portfolio provides a diverse mix of accommodation which attracts a wide range of both global blue chip and SME businesses as well as individuals, and ranges across many different workspace segments, including commercial and self-storage, out-of-town conventional and flexible offices, as well as light industrial, urban logistics and manufacturing assets.
"Furthermore, the portfolio is well diversified by both geography and tenant activity. We have a strong balance sheet providing significant firepower which we will be deploying on our pipeline of acquisitions and investing in the existing portfolio to attract new tenants and grow rents."
Conference Call
There will be a conference call for analysts/investors hosted by Andrew Coombs, Chief Executive Officer of Sirius Real Estate and Diarmuid Kelly, Finance Director of Sirius Facilities GmbH, at 08:30 (
Dial-in UK: Toll-Free: 0800 358 9473/Toll: +44 333 300 0804
Dial-in Germany: Toll-Free: 0800 627 0729/ Toll: +49 691 380 3430
Dial-in South Africa: Toll-Free: 0800 111 446/Toll: +27 216 724 118
Participant access PIN (for all participants): 11521455#
For further information:
Sirius Real Estate
Andrew Coombs, CEO/ Diarmuid Kelly FD (Sirius Facilities GmbH)
Tel: +49 (0)30 285010110
Tavistock (Financial PR)
Jeremy Carey/James Verstringhe
Tel: +44 (0)20 7920 3150
Email: siriusrealestate@tavistock.co.uk
NOTES TO EDITORS
About Sirius Real Estate
Sirius is a property company listed on the main market and premium segment of the London Stock Exchange and the main board of the Johannesburg Stock Exchange. It is a leading operator of branded business parks providing conventional space and flexible workspace in Germany. The Company's core strategy is the acquisition of business parks at attractive yields, the integration of these business parks into its network of sites under the Company's own name as well as offering a range of branded products within those sites, and the reconfiguration and upgrade of existing and vacant space to appeal to the local market, through intensive asset management and investment. The Company's strategy aims to deliver attractive returns for shareholders by increasing rental income and improving cost recoveries and capital values, as well as by enhancing those returns through financing its assets on favourable terms. Once sites are mature and net income and values have been optimised, the Company may take the opportunity to refinance the sites to release capital for investment in new sites or consider the disposal of sites in order to recycle equity into assets which present greater opportunity for the asset management skills of the Company's team.
In
For more information, please visit: www.sirius-real-estate.com
Follow us on LinkedIn at https://www.linkedin.com/company/siriusrealestate/
Follow us on Twitter at @SiriusRE
LEI: 213800NURUF5W8QSK566
JSE Sponsor: PSG Capital
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