(Alliance News) - Sirius Real Estate Ltd said on Monday it continued experience "strong" trading in the first half of its financial year in line with its expectations.
The London and Johannesburg-listed property investor said like-for-like rent roll rose by 7.7% for the six months that ended September 30, compared to the same period last year.
It said this was despite a backdrop of challenging economic conditions in both Germany and the UK.
In Germany, occupancy remains stable and rental rate growth came in ahead of inflation as the group utilised its proprietary asset management platform to maximise the value of our space.
Sirius said the sale of Kassel at above book value, together with strong trading across the German portfolio, underpin its expectation that valuations will again outrun any negative yield expansion for the six month period.
In the UK, Sirius said it continued to focus on driving value from BizSpace. Rent roll growth is ahead of German operations, reflecting the ongoing demand for its affordable, well-located space and the higher inflationary backdrop in the UK, it added.
"Occupancy in the UK was higher than six months prior and it is particularly pleasing to report UK rent roll has exceeded GBP50 million for the first time, buoyed by a record new business sales month in September," Sirius said.
The group said its balance sheet remains robust, with cash reserves of GBP112 million of which GBP88 million is unrestricted.
The company also said it remains active on acquisitions and disposals, with two UK acquisitions in the first half and a disposal in Germany.
Shares in Sirius were up 0.5% at 85.10 pence each in London on Monday morning.
By Artwell Dlamini, Alliance News reporter
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Sirius Real Estate (SRE)