THE London Stock Exchange- and JSE-listed company reported that rent roll increased by 6.4 percent, representing the eighth consecutive year of like-for-like rent roll growth of more than 5 percent.
SIRIUS Retail Estate Limited yesterday announced that 2021 was a transformative year as it flagged a growth in its rent roll for its German portfolio and made the strategic acquisition of BizSpace.
The London Stock Exchange- and JSE-listed company reported that rent roll increased by 6.4 percent, representing the eighth consecutive year of like-for-like rent roll growth of more than 5 percent.
Total annualised rent roll from its branded business and industrial parks in the UK and Germany increased to €167.1m (R2.66 billion) from €96.5m (R1.5bn) for the 12 months to end-March 2022, the company said.
"The increase in organic growth reflected the effect of [about] 13 000 sqm of net move-ins, with an increase in the average rate per sqm of 5.3 percent. This highlights how flexible space can attract premium pricing, together with the continuing ability of the company's internal operating platform to capture reversionary potential," it said.
The company also reported that it had free cash of roughly €126m on the balance sheet at year-end, with total cash exceeding £150m and total debt of €994.5m following the bond issue.
Chief executive officer Andrew Coombs said: "In Germany, our operating platform has continued to drive strong leasing growth. In addition, we have acquired a record number of assets during the year, which provides the company with over 118 000 sqm of vacant space with which to use the capability of our internal operating platform to let up and selectively invest to fuel future growth."
The company purchased BizSpace in November for around £245m cash, aided by a £137m equity raise, had a rent roll of £45.1m at the end of the period, with occupancy increasing to 90.5 percent from 88.7 percent and like-for-like average rate per sq ft up 6.5 percent to £11.69.
"As a leading provider of regional flexible workspace across the UK, BizSpace has provided Sirius with an opportunity to diversify geographically at scale through the single acquisition of an established platform. The transaction provides a number of organic growth opportunities, overlayed with meaningful operational and financial synergies," the company said.
Coombs said that over the past year, the business model proved its ability not just to be resilient, but to grow against an exceptionally challenging market backdrop.
“As we emerge fully from the pandemic, we would expect both platforms to continue to perform strongly going forward. 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 Ukraine and we welcome all steps that lead to a cessation of hostilities and an end to the conflict," he said.
dieketseng.maleke@inl.co.za
BUSINESS REPORT ONLINE
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