22nd Sep 2014 08:42
LONDON (Alliance News) - Sirius Real Estate Ltd Monday said it would raise its dividend payouts after its capital expenditure programme delivered early results, and it said trading in the current financial year is expected to be in line with market expectations.
The company, which provides branded business parks in Germany catering for small businesses, said its annualised recurring rent roll is expected to increase to about EUR42.0 million by the end of the first half of the current financial at end-September, up from EUR41.3 million at the end of its last financial year, largely thanks to the initial capex spending. Sirius has also completed and notarised land sales of EUR4.5 million in the first half of the year.
"In light of the incremental income from the investment programme as well as cash generated from the disposal of non-income and low-income producing assets, the board has decided it has the ability to increase the dividend to shareholders by amending the dividend payout to 65% of funds from operations rather than the previously announced policy which referred to recurring earnings after tax," it said in a statement.
Sirius said it will give more details of the dividend payments in December when it announces its interim results, but the new policy is expected to "materially" improve the dividend payouts.
In June, Sirius announced a new EUR9 million capital investment programme aimed at transforming about 100,000 square metres of predominantly unlettable space into a combination of conventional space and its premium, high-quality Smartspace product. It hopes the conversion will create an estimated rental value of around EUR5.8 million.
"The strong organic growth being realised, together with the potential returns to be added from external growth opportunities, underpins our confidence in the potential of the business to continue to generate high total returns, consisting of income returns and net asset value growth, to shareholders," Sirius Chief Executive Andrew Coombs said.
Sirius Real Estate shares were up 0.7% at 0.316 pence Monday morning.
By Steve McGrath; [email protected]; @stevemcgrath1
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