Sirius Real Estate has reaffirmed its dividend policy after reporting high levels of rent collection in April as lockdown measures in Germany ease.
The company, which owns a portfolio of business parks in Germany, said it received 98.8% of normal levels of rent and service charge for April and no significant reduction in the first two weeks of May.
The group said it intends to maintain its dividend policy of paying at least 65% of funds from operations (FFO) citing its strong second half of its financial year (to 31 March 2020), the strength of its balance sheet and the good cash collection rates in April and May.
It expects to authorise a dividend in respect of the second half of the year ended 31 March 2020, payable in August, with the announcement of the full year results on 1 June 2020.
The group said office space enquiries in March and April averaged 1,200 per month, which represents a slight increase on the same period last year, adding a similar level of enquiries had been maintained in the first two weeks of May.
This led to 115 new lettings in April covering 8,025 sqm. New lettings in March and April have generated annualised rental value of €1.6m, as and when the tenancies begin over the next few months. Sirius said it expects May to provide a similar level of lettings to April. It also said there had been no noticeable increase in lease terminations in the period.
Demand for storage space from both new and existing commercial tenants, as well as new self-storage customers, had increased in the period.
SRE : Sirius Real Estate reaffirms dividend as lockdown measures in Germany ease