(Alliance News) – Sirius Real Estate said on Monday that trading in the first half of its financial year continued to be “strong” as expected.
Listed property investors in London and Johannesburg said like-for-like rent rolls rose 7.7% in the six months to September 30 compared to the same period last year.
The decision is said to be against the backdrop of difficult economic conditions in both Germany and the UK.
In Germany, occupancy rates remained stable and rents rose ahead of inflation as the group leveraged its proprietary asset management platform to maximize the value of space.
Sirius said the above-book Cassel sale and strong trading across the German portfolio supported its expectation that valuations would once again outpace negative six-month yield expansion.
In the UK, Sirius said it remains focused on driving value from BizSpace. He added that rent roll growth has outpaced the German business, reflecting continued demand for affordable, well-located space and rising inflation in the UK.
“UK occupancy rates are higher than they were six months ago, and we are particularly pleased to report that September was a record month for new business sales, pushing UK rent rolls above £50m for the first time. ” said Sirius.
The group said its balance sheet remained strong, with cash reserves of £112m, of which £88m were unrestricted.
The company also said it remains active in acquisitions and divestitures, making two acquisitions in the UK and one sale in Germany in the first half of the year.
Sirius shares rose 0.5% to 85.10 pence per share in London on Monday morning.
Artwell Dlamini, Alliance News Reporter
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