4th Apr 2016 07:07
LONDON (Alliance News) - German business parks investor Sirius Real Estate Ltd said Monday it expects its full-year results to be in line with market expectations, as annualised rental income hit an all-time high at year-end.
Sirius said its performance had been strong in the financial year ended March 31, with annualised rental income exceeding EUR60.0 million for the first time at year-end.
Sirius said that during the year it completed three acquisitions, which together added EUR4.2 million to the rent roll and EUR3.9 million to net operating income on an annualised basis.
The company added it is in the advanced stages of negotiating "more favourable" terms on its debt facility, including securing a new EUR137.0 million facility at a "significantly lower" interest rate. The Berlin Hyp AG and Deutsche Pfandbriefbank AG facility currently has EUR111.0 million outstanding and three years remaining of its term.
Sirius said its capital investment programme continues to be a strong driver of organic rental growth and, at March 31, around 65% of the original programme to transform 100,000 square metres of unlettable or under-rented space had been completed.
Sirius noted two business park acquisitions will complete in May, and said it anticipates good ongoing growth in rental income next year. It said it is "well placed" for the new financial year.
"Prevailing market conditions remain supportive for the business. The German economy is robust and we continue to capitalise on the low interest rate environment to reduce our cost of debt significantly, diversify our lenders and extend the weighted average expiry of our funding," said Chief Executive Andrew Coombs.
By Hannah Boland; [email protected]; @Hannaheboland
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