Sirius Real Estate improves H1 pretax profit

Sirius Real Estate has improved its H1 pretax profit to €37.5m, from €28.3m.

Net rental income was €23.7m, from €17.5m. Interim dividend was 1.39 cents a share, from 0.92 cents.

CEO Andrew Coombs said:

"The strength of our trading performance reflects well on our ability to extract value from our existing portfolio and our ability to acquire business parks which are both earnings accretive from acquisition as well as offering additional income and capital growth potential.

"There remains significant scope for further organic growth within our current portfolio and we continue to see real opportunity within our acquisition pipeline.

"Over 99 per cent of German enterprises are SMEs and 34 per cent of these are enterprises with fewer than 10 employees.

"This is the market which is seeking flexible leases to meet ever evolving space requirements and Sirius is well placed to take advantage of these market dynamics with our flexible multi-tenanted workspaces.

"We are encouraged by the results we are achieving to continue transforming our portfolio of assets under our investment programmes. Now that we have reduced our average cost of debt to below 2.0 per cent and the average debt expiry to more than six years we are well placed to continue to execute our strategy in a sustainable manner over the medium to long term.

"As part of supporting our ambitions for the business we are making good progress towards moving up to the main markets of both the London and Johannesburg Stock Exchanges."