Last checked at 18 May 2021 07:00
SIRIUS REAL ESTATE LIMITED
(Incorporated in Guernsey)
Company Number: 46442
JSE Share Code: SRE
LSE (GBP) Share Code: SRE
LSE (EUR) Share Code: ESRE
LEI: 213800NURUF5W8QSK566
ISIN Code: GG00B1W3VF54
18 May 2021
Sirius Real Estate Limited
("Sirius Real Estate", "Sirius" or the "Company")
SIRIUS REAL ESTATE RATED AT INVESTMENT GRADE BBB BY FITCH
Sirius is pleased to advise that Fitch Ratings has published its first credit rating for Sirius Real Estate resulting in a BBB rating with a stable outlook (Long-Term Issuer Default Rating).
In its rating, Fitch recognised the benefits of the Sirius operating platform and the resilience of its portfolio, as evidenced by the year ended 31 March 2021 delivering the seventh consecutive year of like for like rental growth of over 5% and rent collection rates of 98%, in spite of the challenges of the Covid-19 pandemic. Fitch highlighted Sirius' financial leverage (net debt / EBITDA) and net interest cover, which are expected to stay relatively constant and compare well to other commercial real estate companies.
Among many credit strengths, Fitch highlights the in-house digital sales and marketing capability which minimises the reliance on third party brokers. Furthermore, Sirius has a highly diversified tenant base underpinned by the stable income from the Top 50 tenants which makes up 42% of total rent income.
HSBC acted as rating advisor to Sirius Real Estate. Sirius announces its full year results on 7 June 2021.
Sirius CFO, Alistair Marks, commented: "The investment-grade rating is a key milestone for Sirius Real Estate and will allow us to optimise and diversify our funding structure. It was pleasing to see the strength and resilience of our asset management model being recognised in the rating."
For further information:
Sirius Real Estate
Andrew Coombs, CEO / Alistair Marks, CFO
+49 (0) 30 285010110
FTI Consulting (Financial PR)
Richard Sunderland / Claire Turvey / James McEwan / Talia Jessener
+44 (0) 20 3727 1000
SiriusRealEstate@fticonsulting.com
NOTES TO EDITORS
About Sirius Real Estate
Sirius is a property company listed on the main market and premium segment of the London Stock Exchange and the main board of the JSE Limited. It is a leading operator of branded business parks providing conventional space and flexible workspace in Germany. The Company's purpose is to create and manage optimal workspaces that empower small and medium-sized businesses to grow, evolve and thrive. Sirius seeks to unlock the potential of its people, its properties, and the communities in which it operates, so that together we can create sustainable impact, and long-term financial and social value.
The Company's core strategy is the acquisition of business parks at attractive yields, the integration of these business parks into its network of sites under the Company's own name as well as offering a range of branded products within those sites, and the reconfiguration and upgrade of existing and vacant space to appeal to the local market, through intensive asset management and investment. The Company's strategy aims to deliver attractive returns for shareholders by increasing rental income and improving cost recoveries and capital values, as well as by enhancing those returns through financing its assets on favourable terms. Once sites are mature and net income and values have been optimised, the Company may take the opportunity to refinance the sites to release capital for investment in new sites or consider the disposal of sites in order to recycle equity into assets which present greater opportunity for the asset management skills of the Company's team.
Sirius also has a venture with clients represented by AXA Investment Managers - Real Assets. Titanium was formed through the acquisition by AXA Investment Managers - Real Assets, on behalf of its clients, from Sirius, of a 65% stake in five business parks across Germany. Sirius retained the remaining 35%. The venture seeks to grow primarily through the acquisition of larger stabilised business park assets and portfolios of assets with strong tenant profiles and occupancy. As well as its equity interest, Sirius acts as operator of the assets in the venture, on a fee basis. Sirius will continue to grow its wholly owned portfolio through acquisitions of more opportunistic assets, where it can capitalise on its asset management expertise to maximise utilisation of the space, grow occupancy and improve quality of the tenants. The strategies have been clearly defined so that the venture does not conflict with Sirius's existing business.
For more information, please visit: www.sirius-real-estate.com
Follow us on LinkedIn at https://www.linkedin.com/company/siriusrealestate/
Follow us on Twitter at @SiriusRE
JSE Sponsor
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