Sirius Real Estate (SRE.L), an operator of branded business and industrial parks in Germany and U.K., reported Monday that its first-half trading was in line with expectations, with strong, flexible balance sheet.
For the full year, trading and FFO are in line with consensus and management expectations.
In its update on trading for the six months to September 30, the company said total annualised rent roll were 167.9 million euros, compared to 167.1 million euros as of March 2022.
In Germany, the company reported rent growth driven by continued strong demand. Like for like annualised rent roll grew 2.4 percent to 115.2 million euros driven by a 3.3 percent increase in like for like rate per sqm to 6.53 euros.
In U.K., the company recorded 4.1 percent increase in like for like annualised rent roll to 46.5 million pounds, driven by an 8.4 percent increase in like for like rate per sqft to 12.64 pounds.
The overall positive performance reflects the substantial rent roll increases in the six month period, despite an uncertain economic environment and a number of large tenants vacating, as expected, in the first half, following a similar pattern seen over preceding years.
Sirius Real Estate is expecting to replace these tenants quickly which will help drive further rent roll increases in the near term.
Despite the current economic headwinds, the company continues to see strong demand for the range of conventional and flexible spaces it offers both in the U.K. and in Germany.
In Germany, Sirius generated an average of 1,259 enquiries per month in the period, of which 78.1 percent were converted into viewings.
In the U.K., an average of 1,343 enquiries were generated per month, of which 17.3 percent were converted into viewings.
Andrew Coombs, Chief Executive Officer of Sirius Real Estate, said, "Despite the concerns in Europe over the impact of the war in Ukraine, the resulting issues with energy supply, and the current inflationary and uncertain environment, Sirius has continued to see high demand for all of its product offerings in the period. The Company is in a strong position to be able to deal with any shortfalls in gas or electricity supply or further hikes in prices, having fixed rates for its and its occupiers' gas supply until the end of next year."
Sirius will announce results for the six months on November 21.
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