Sirius targets acquisitions as rents increase
Flex office operator and industrial park owner Sirius Real Estate has reported a 14.9% year-on-year increase in rent roll in the six months ended 30 September.
Updating the market ahead of its interim results on 18 November, the group said the double digit increase had been driven by its ongoing asset acquisition programme. On a like-for-like basis, rent roll increased by 5.5%.
In Germany, which marginally outperformed the UK, rent roll growth benefited from stronger rates, said Sirius.
Flex office operator and industrial park owner Sirius Real Estate has reported a 14.9% year-on-year increase in rent roll in the six months ended 30 September.
Updating the market ahead of its interim results on 18 November, the group said the double digit increase had been driven by its ongoing asset acquisition programme. On a like-for-like basis, rent roll increased by 5.5%.
In Germany, which marginally outperformed the UK, rent roll growth benefited from stronger rates, said Sirius.
In the UK, Sirius said like-for-like rates continued to grow strongly, ahead of overall rent roll growth, but similar to what it had seen in Germany, some seasonal move outs had impacted occupancy.
“We expect to see valuations stabilise, in contrast to recent periods, and believe the improving transactional market will build further confidence,” said the group. “Overall, we expect to announce a positive valuation movement at group level at the period end.”
Sirius added that following its successful raise of €180m (£152.5m) in July, it was now in exclusivity on several “promising asset acquisitions” in both Germany and the UK, which it expected to close within the coming months.
Chief executive Andrew Coombs said: “During the first half of our financial year we have continued to perform well, with our asset management team once again driving like-for-like rent roll growth well ahead of inflation.
“This organic growth alongside the rental contribution from the well-timed series of acquisitions we have made in recent months combined to drive an almost 15% increase in overall rent roll, underlining the continued demand for space within our portfolio. Bolstered by our successful bond issuance in May and equity raise in July, our balance sheet remains strong, and we are well placed to continue to act on opportunities to make accretive acquisitions arising from the current market conditions.”
