Sirius Real Estate has reported an 18.4% increase in its total rent roll over the past year following a series of acquisitions totalling €464m (£404m).
Andrew Coombs, CEO Sirius Real Estate
In an update for its financial year to the end of March, the operator of business, industrial parks and flexible workspace in Germany and the UK said demand for its assets had also contributed to solid organic growth.
On a like-for-like basis, rent roll growth accelerated in the second half of the year, delivering a 6.4% total annual increase – the 12th consecutive year of 5%-plus like-for-like rent roll growth.
Total rent roll growth was fuelled by 13 asset acquisitions. Three of those assets, in Bedford, Feldkirchen and Kiel, totalling an investment of around €155m (£135m), have a significant defence component to their tenant base.
The acquisitions were in line with Sirius’s strategy of building a portfolio of defence-related properties in Germany and the UK, which have both announced increases in defence spending, with Germany seeking to increase defence spending to 5% of GDP through a fiscal stimulus of around €400bn.
Andrew Coombs, chief executive officer of Sirius Real Estate, said: “Over the past year, our focus on growth and asset management, as well as the quality and occupier appeal of our properties, has enabled us once again to deliver a strong performance on behalf of our shareholders, despite the volatile market backdrop.
“Our balance sheet remains strong and having shown that the debt and equity markets will continue to support our strategy when we seek new capital, we invested €464m [£403m] into primarily resilient, income-generating assets that also offer the opportunity to create value through our platform.
“Around a third of this by value was invested into business parks that bolster our portfolio of industrial assets let to defence-related businesses, which we expect to continue to benefit from increased government led defence spending across Europe and further afield.”
Sirius will announce results for the financial year on Monday 1 June.
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