Sirius Real Estate, the owner of light industrial parks in Germany and the UK, with a secondary listing on the JSE, reported a 28.8% uplift in dividend to 5.68 euro cents in the year to March 31, and a strong cash balance to allow for future acquisitions and investments.
Funds from operations (FFO) increased a robust 36.9% to €102.1 million (R2.1 billion), surpassing the five year €100m FFO target within four years. FFO per share increased 28.9% to 8.74 euro cents from 6.78 euro cents.
The second half dividend was up 25.7% to 2.98 euro cents per share.
Asset recycling realised €90m, with disposals achieving a 25% combined premium to book value.
The total cash balance stood at €124.3m with €99.2m in the bank. Loans to value was stable at 41.6%.
CEO Andrew Coombs said in a statement Sirius had delivered another positive set of annual results, with sizeable rental growth underpinned by continued occupier demand for high-quality and affordable products in Germany and the UK.
“This is now the ninth consecutive year of like-for-like rental growth in excess of 5% in the year. This strong operational performance enabled us to deliver a significant increase to the annual dividend,” he said.
Opportunistic asset recycling would continue where there were opportunities to crystallise returns and drive value.
He said the outlook remained positive. The balance sheet was strong, with around 95% of debt secured at fixed interest rates for at least three years.
The new financial year had started well, driven by strong occupier demand in both markets, and the group was trading in line with market expectations.
In Germany, easing energy prices were offsetting wider economic matters. Further opportunities were being assessed in Germany and the UK. Organic growth opportunities remained strong, particularly with further investment into the portfolio, as well as taking advantage of the high inflation environment, he said.
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