Sirius Real Estate, a leading owner and operator of branded business and industrial parks providing conventional space and flexible workspace in Germany and the UK, expects its interim dividend to increase by 32%-33%.
For the period ended September 30, the dividend will be between 2.693 euro cents and 2.713 euro cents per share, from 2.04 euro cents per share during the same period in 2021.
“The expected increase is mainly due to an increase in funds from operations for the six-month period,” the company said in a trading statement.
Sirius is a property company listed on the main and premium market of the London Stock Exchange (LSE) and the main board of the JSE. From March 31, its portfolio comprised 140 assets let to 9,452 tenants with a total book value of more than €2bn and a total annualised rent roll of €167.1m.
Writing on the company’s blog recently, CEO Andrew Coombs said Sirius has a strong balance sheet, and the business continues to experience rental growth across its portfolios.
Coombs said they would continue to pursue growth opportunities through acquisitions that either offered attractive yields and value-add or both.
“Our growth strategy entails seeking opportunities where we are able to apply our asset-management model and leverage our platform to enhance value,” said Coombs.
He said that meant acquiring assets that will enable space reconfiguration to improve lettable area and efficiency, expanding or renovating existing buildings and working more closely with tenants to enhance value, among others factors.
The company buys traditional industrial business parks, modern mixed-use alternatives as well as out-of-town office buildings in secondary locations near major economic centres.
Similar to what unlisted fund Inospace (SA’s last-mile or small logistics specialist) does, Sirius enhances newly acquired properties through additions such as energy efficiency, turning the properties into higher-quality assets fit for tenant needs.
The company focuses on areas in which there is growing tenant demand, and on regionally convenient locations with easy access to major transport nodes that are also close to neighbourhoods with much commercial and industrial activity.
Last month, it acquired three small assets including a mixed-use property, a warehousing facility and a vacant office building in Germany valued at more than €43m.
“Through intensive asset management, tenant mix, occupancy levels and rentals are continuously monitored to see what works and what needs improving,” said Coombs.
On news of the expected increase in the interim dividend, Sirius saw its share price rise 0.63% to R16.10 in early trade.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.