Sirius Real Estate (LSE: SRE) anticipates robust annual results, driven by an 8.2% rent roll increase and a healthy acquisition pipeline. The firm remains confident about attractive buying opportunities in the UK and Germany.
The property investor expects its full-year performance to be in line with market expectations, having secured €150 million in assets during the latter half of its financial year. This follows a €165 million equity raise in November 2023 to fund acquisitions.
To optimise capital allocation, Sirius offloaded €51 million worth of properties in the second half. The company highlighted its commitment to “efficient capital recycling” to pursue acquisitions that meet its criteria while selling mature or non-core assets.
While acknowledging the possibility of higher interest expenses from future refinances, Sirius expressed confidence that its leverage strategy will continue to benefit shareholder returns, emphasising the “relatively high yielding nature” of its assets.
CEO Andrew Coombs hailed another year of “strong” operational performance and lauded the company’s swift execution on its acquisition pipeline. He believes Sirius is well-positioned to deploy capital profitably in the coming year thanks to its strong acquisition pipeline.
The company expects to release its annual results on June 3. Sirius Real Estate shares remained unchanged on Monday, but the stock has gained 18% over the past year.
Subscribe to Investomania for more Sirius Real Estate news and updates.