Sirius Real Estate Limited have seen their shares jump on Monday after the firm boosted its pay outs on the back of strong results.
Sirius Real Estate are an owner and operators of business parks, offices and industrial complexes. They host their main operations in Germany which provide flexible and conventional workspace to companies.
Shares of Sirius jumped 2.7% on Monday to 78p. 25/11/19 12:11BST.
The firm reported that its interim income and assets rose as the firm continued to “flourish” despite uncertain markets.
For the six months ended September, net asset value per share rose 7.3% to 76.18 euro cents from 71.01 cents six months earlier.
Operating income rose 9.4% to €39.5 million from €36.1 million the year before.
Pretax profit widened 1.9% to €79.7 million from €78.2 million the year prior, helped by investment properties revaluation gains rising 3.6% to €58.2 million from €56.2 million the year before.
“Despite political uncertainty and economic headwinds, Sirius’ value-add business model continues to flourish due to the diversity that comes from intensive asset management and our wide range of products,” Chief Executive Officer Andrew Coombs said.
“Occupier demand for both conventional and flexible space remains strong while investor appetite for exposure to the German light industrial market continues to drive yields down,” Coombs added. “Part of this is fuelled by the low rates of financing available, of which we are strongly positioned to take advantage.”
“With significant vacancy in our value-add portfolio and a defensive portfolio gross yield of 7.4%, there remains considerable potential to increase rent roll and capital values,” Coombs continued.
Sirius proposed a 1.77 cents per share interim dividend, up 8.6% from 1.63 cents the year before.
In the market, competitors have seen mixed results.
NewRiver Reit (LON: NRR) have purchased a retail park from rival Intu (LON: INTU) earlier this morning.
Additionally, Growthpoint (JSE: GRT) are close to formalizing a deal for UK based Capital and Regional (LON: CAL) in a reported £150 million deal.
