Sirius Real Estate says the six month period to 30 September 2016 has been a good one. The adjusted net asset value per share increased by 4.3 per cent to 55.62c. Total income increased by 25.9 per cent to EUR32.6 million and this led to adjusted earnings per share of 2.01c per share, up from 1.25c. A 1.39c interim dividend has been declared, an increase of 51.1%.
Sirius saw an increase in recurring profit to EUR16.1 million, up 87.2 per cent on the same period last year. Indicative of the organic performance was an increase in the like for like occupancy to 81.0 per cent (31 March 2016: 80.0 per cent), a record for the Group, as well as the increase in the like for like rate per square metre to EUR5.07 (31 March 2016 EUR5.02).
The like for like portfolio, excluding acquisitions made since the start of the period, increased in value to EUR724.7 million as at 30 September 2016 (31 March 2016: EUR695.2 million) and the acquisitions which completed in the period were valued at EUR54.9 million representing a small uplift from the total acquisition costs of EUR50.8 million. The revaluation uplift is both income driven as well as reflective of approximately 17 bps of yield compression on the core portfolio. The effect of the continuing capex investment programme in refurbishing sub-optimal space was a key factor in the valuation gain for which EUR7.2 million was invested in total capex in the period. Following the completion of the Wiesbaden asset purchase which happened shortly after the reporting period end, the value of the total portfolio increased to EUR797.2 million.
Acquisition activity was underpinned by a successful EUR30.0 million equity raise in June 2016 along with the refinancing of two banking facilities on significantly better terms. Three acquisitions were completed in the period with a further acquisition completing shortly after. All four were immediately earnings enhancing and provide real opportunity for future income and capital growth. The new banking deals that were completed to finance these purchases have again been at attractive long-term fixed interest rates reducing our weighted average cost of debt to below 2.0 per cent and extending our average debt expiry to 6.2 years. This has prolonged the Group’s exposure to the current low interest rate environment and the higher returns to shareholders that come from this. Whilst taking advantage of this refinancing opportunity has increased the LTV temporarily, we are on track and committed to lowering LTV to 40 per cent by 31 March 2018.
SRE : Sirius Real Estate has a good six months