Sirius Real Estate shares were up 1.8% to 123.8p in early morning trading on Monday, following reports of €700 million raised through oversubscribed corporate bond issuances and a selection of successful acquisitions in the company’s pre-close trading update for 2021.
The German group announced a like-for-like rent roll increase of 6.4%, alongside a like-for-like occupancy rise to 87.4% throughout its German portfolio, compared to a total occupancy decline in Germany to 84.2%.
The firm announced corporate bond issuances amounting to €700 million, alongside a cash collection rate of over 98%.
Sirius also reported a free cash balance of €126 million and a total annualised rent roll rise to €167.1 million.
The company finished its financial year with €201.9 million invested or committed to ten acquisitions.
Sirius Real Estate Acquisitions
According to Sirius, these assets are projected to contribute around €8.8 million of net operating income at 62% occupancy, representing an EPRA net initial yield of 4.4%.
Sirius Real Estate’s additional acquisitions included a €900,000 building adjacent to its Potsdam asset and a parcel of land at its asset in Neuruppin for €500,000, providing the company with two asset management footholds for its existing sites going forward.
The company also acquired its Magdeburg asset for €13.75 million and grew its titanium venture with AMA IM Alts with the completion of its Ausburg asset for €79.9 million, which is anticipated to add approximately €1.5 million per year in fees and profits from the venture.
Sirius Real Estate entered the UK market through its acquisition of BizSpace in November 2021 for £245 million, based on an enterprise value of £380 million and representing a 7.1% net operating yield.
The firm reported strong trading since its takeover of the business, with like-for-like annualised rent roll rising by 7.5% from £41.9 million to approximately £45.1 million over the initial 4.5 months of operations.
Sirius further noted an occupancy increase to 90.5% from 88.7%, with the average like-for-like rate per square foot rising 6.5% to £11.69 compared to £10.98 encouraging the group’s advancement into opportunities in UK industrial real estate.
“2021 was a transformative year for Sirius marked by two key firsts which saw the Company access the corporate bond market, successfully raising €700 million through two oversubscribed issuances, and the strategic acquisition of BizSpace, providing us with geographic diversification and an established operating platform in the U.K which is already showing positive momentum in terms of growing rents,” said Sirius Real Estate CEO Andrew Coombs.
“However, it would be remiss not to mention market uncertainty created by current geopolitical events which we continue to monitor closely. In the meantime, our thoughts go to everyone impacted by the situation in the Ukraine and we welcome all steps that lead to a cessation of hostilities and an end to the conflict.”