(Sharecast News) - Sirius Real Estate boosted its interim payout on Monday after reporting profit and revenue growth, even as the business faced challenges related to political uncertainty and economic headwinds.
The German-focused business park operator booked a profit before tax of €79.7m for the six month period ended 30 September, 2% higher than in the same period last year, as gains from property revaluations rose by 4% to €58.2m.
The FTSE 250 company hiked its half-year dividend by 9% to 1.77 cents per share.
Revenue increased 7% to €72.2m as like-for-like annualised rent roll edged up 1% to €77.2m and service charge income improved 6% to €24.9m.
However, the contribution from the company's €21.9m-worth of new acquisitions was slightly lower than anticipated due to high vacancy levels, though Sirius said it had significant funds available to snap up further properties in the second half of the year.
Another two acquisitions totalling €64.6m are scheduled to complete in the second half and €57.8m of acquisitions are in exclusivity.
Chief executive Andrew Coombs said: "Despite political uncertainty and economic headwinds, Sirius' value-add business model continues to flourish due to the diversity that comes from intensive asset management and our wide range of products.
"Occupier demand for both conventional and flexible space remains strong while investor appetite for exposure to the German light industrial market continues to drive yields down."
At 0922 GMT, the shares were up 0.7% at 76.80p.
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