(Alliance News) - Sirius Real Estate Ltd said on Monday it expects to report a "strong" annual operational performance and also indicated that it continues to see "attractive" acquisition opportunities.
In a trading update, the London and Johannesburg-listed property investor said it had achieved an 8.2% increase in overall rent roll for the financial year that ended March 31, reflecting improved rates and occupancies.
The group expects to deliver full-year results that are in line with market expectations.
The company said it expects a "significant" pipeline of acquisitions in both Germany and the UK over the next 12 months, after closing some deals in financial 2024.
Sirius in November 2023 raised EUR165 million through equity to help fund acquisitions, buying about EUR150 million of assets in the second half of its financial year.
To recycle capital, the group said it had sold properties amounting to EUR51 million during the second half.
"Efficient capital recycling will be a mainstay of Sirius' strategy as we continue to see attractive acquisition opportunities that meet our acquisitions criteria in both the UK and Germany, alongside opportunities to sell mature or non-core assets, with the aim to do so at or above book value," Sirius said.
Sirius said it was "mindful" of the expected higher interest expense arising from future re-financings, but it noted that it is confident leverage will continue to have a "positive overall effect on shareholder returns", as it hailed the "relatively high yielding nature of its assets".
Chief Executive Officer Andrew Coombs said the company had delivered another 12 months of "strong" operational performance, increasing rates and occupancies, and had swiftly executed on its significant pipeline of acquisitions.
"Raising capital at that time has proved to be opportune, allowing us to acquire high quality real estate on very attractive financial terms," Coombs said. "Our acquisition pipeline remains strong and we believe there will continue to be opportunities to deploy our capital on an accretive basis in the coming year."
Sirius expects its annual financial results to be released on June 3.
By Artwell Dlamini, Alliance News reporter
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Sirius Real Estate (SRE)