Sirius sees full year earnings in line with expectations

(ShareCast News) - German business park investor Sirius said it expected full year earnings to be in line with expectations, adding it was "well positioned to make a strong start to the new financial year".In a trading statement, Sirius said annualised rental income exceeded €60m (£48m) for the first time at 31 March 2016.It added that it was also in advanced stages of negotiating more favourable terms on its largest debt facility of €137m including securing further funding at a significantly lower interest rate and extended term. The new facility would provide an additional €26m debt capacity which the company would use for acquisitions."We anticipate good ongoing growth in rental income next year and beyond as we continue with our capital investment programme and with making selective acquisitions," Sirius said.Capital investment continued to be the strongest driver of organic rental growth and by the end of March around 65% of the company's original programme to transform approximately 100,000 square metres of previously unlettable or under-rented space had been completed."This, along with the capital investment programmes initiated on recent acquisition sites and on space returned through terminations in the first half of this financial year, is expected to have a positive impact on the like-for-like rents in the period," Sirius said.Chief executive Andrew Coombs said prevailing market conditions remain supportive for the business."The German economy is robust and we continue to capitalise on the low interest rate environment to reduce our cost of debt significantly, diversify our lenders and extend the weighted average expiry of our funding," he said."In addition, by investing in our assets to increase rental income and with ongoing reductions in non-recoverable service charge costs, the Company continues to enhance cash flows, improve asset values and increase its funds from operations."