16th Jun 2014 08:11
LONDON (Alliance News) - Sirius Real Estate Ltd Monday resumed payment of a dividend as it swung to profit in the full year, after its results in the previous year were hit by valuation losses.
The company, which operates business parks across Germany, posted pretax profit of EUR31.0 million for the year ended March 31, compared with a EUR29.5 million loss a year earlier. Sirius Real Estate benefited from valuation gains on property of EUR22.7 million compared with a deficit of EUR35.8 million a year ago.
Gross rental income dipped to EUR45.1 million from EUR46.1 million a year earlier, as the company carried out a disposal programme of non-core properties.
Sirius sold EUR21.2 million of land and non-core properties during the period, while it said it has two land and one non-core property sales notarised for EUR2.6 million. The company said it has two further non-core properties for sale and identified further properties of approximately 100,000 square metres of surplus non-income-producing land which can either be sold or developed depending on the level of returns.
Sirius said it will use the proceeds from its asset sale to fund its acquisition programme. The company said it has already identified a good pipeline of potential acquisitions and is in advanced stages of negotiation over two business parks for EUR19 million.
At the period-end the portfolio was valued at EUR448.7 million, up from EUR421.7 million a year earlier. The core portfolio comprises 27 of the 30 assets, valued at EUR436.2 million, with an average gross yield of 9.2%, down from 9.9% a year ago.
Sirius said the average capital value per square meter is EUR445.6, up from EUR417.4 even though these assets operate with an occupancy of only 80%, compared with 81% a year ago.
On the back of its performance, the company said it will recommence payment of a regular dividend, starting with a final dividend of 0.30 cents per share for the year.
Sirius said its dividend policy will be to pay 65% of future recurring profits after tax as dividends with semi-annual payments.
Sirius Real Estate shares were quoted up 1.5% at 0.335 pence Monday morning.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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