(Alliance News) – Sirius Real Estate Ltd reported lower interim profit on Monday as operating costs weighed, offsetting continued demand for space.
The London and Johannesburg-listed property investor said pre-tax profit fell 3.2% to 75.7 million euros for the six months to September 30, from 78.2 million euros the previous year.
Administrative expenses increased from €12.3 million to €24.8 million, while direct costs increased from €38.8 million to €57.4 million.
Revenue jumped 48% to €130.6 million from €88.4 million, with funds from operations increasing 47% to €48.5 million from €33.0 millions of euros.
Like-for-like annualized rent increased by 2.4% in Germany to €115.2 million as of September 30 from €112.5 million as of March 31, and increased by 4.1% in the UK to £46.5m from £44.7m.
Sirius raised its interim dividend to 2.70 euro cents, up 32% from 2.04 cents.
Adjusted earnings per share, which excludes valuation moves as well as exceptional items, rose 27% to 3.71 cents from 2.93 cents, reflecting positive year-on-year operational development. EPS fell 6.8% to 6.00 cents from 6.44 cents.
Net asset value per share rose slightly to 103.90 cents as of September 30, from 102.04 cents as of March 31. Sirius recorded a gain on the revaluation of investments of 26.8 million euros, against 48.4 million euros previously.
“Dividend and FFO growth is supported by strong trading, with continued demand for space in our properties driving rent increases and a strong leasing pipeline driving this positive momentum into the second half,” the director said. General Andrew Coombs.
Going forward, the company plans to continue growing organically while remaining cautious about growth through acquisitions until the trajectory of the UK and German markets becomes a little clearer.
In the UK, he said BizSpace’s position was very strong and expected continued strong trading in Germany despite having much of its tenant base using gas.
In London, shares of Sirius rose 0.1% to 82.00 pence. In Johannesburg, the stock remained stable at ZAR 16.90.
By Artwell Dlamini; [email protected]
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