Editing Talk:Sirius Real Estate Limited (section)

Questions

# Is the total addressable market 1) global, Europe, Germany and United Kingdom, or something else and/or commercial property or something else?
# No financial forecasts, because that's what has been requested by selecting the Proactive package that you selected.




Interims

* Sirius Real Estate Limited is an owner and operator of business parks in Germany and the United Kingdom.
* The company is progressing to embed ESG into the business and strategy.



Sirius Real Estate represents a unique opportunity for investors to gain exposure, through a UK REIT, to the attractive light industrial business park and out-of-town office sectors in Germany and more recently, in the UK, managed by a growing market leading owner and operator with a strong and long track record of value creation.

Having entered the UK market in November 2021 via the acquisition of BizSpace, a leading provider of regional flexible workspace, Sirius now intends to apply its proven asset management skills to this new market, having already increased BizSpace’s like-for-like annualised rent roll by 7.5% within the first 4.5 months of ownership.

Delivering a stable and attractive return profile
*Sirius has delivered a double-digit total shareholder accounting return in excess of 13% over the last three years
*The Group’s policy of distributing 65% of FFO as dividends ensures it maintains a well-covered dividend and provides the head-room to flex pay-out ratios as required
*Full covered dividend, with consistent dividend growth over past 8 years, including throughout the Covid-19 pandemic
*Defensive gross yield of 7% with valuation gains mainly resulting from income growth generated by asset management
*Further value and income enhancement to come from a combination of asset recycling, filling vacant space in recently acquired assets, implementation and completion of accretive capex investment programmes and reductions in service charge leakage
Sirius has a well-structured, well-located portfolio…
*Sirius owns and manages a portfolio of over €2.5 billion of property assets comprising industrial, manufacturing, office and storage assets in edge of town locations
*Mixed-use assets are situated in strategic locations: in and around the “big seven” German markets<ref>“Big seven” German markets identified as Frankfurt, Berlin, Munich, Hamburg, Dusseldorf, Cologne and Stuttgart.</ref> and in core regional hotspot clusters across the UK
*Sirius has a well-diversified tenant base. In Germany, its top 50 tenants generate 45% of annual income. In the UK, 26% of annual income is generated by the top 100 tenants
*Future value enhancement to come from developing and letting more than 118,000 sqm of vacant space in Germany and more than 45,000 sqm of vacant space in the UK
*Sirius maintains overall group LTV at 45% or less, financing new acquisitions with up to 50% LTV using long-term, low interest debt and subsequently blending them with unencumbered assets in the portfolio
…in two highly attractive markets with strong, long-term fundamentals
*The German economy is the largest in Europe: characterised by long term GDP growth, low unemployment and high levels of investment and consumer spending, it is forecast to grow by c. 1.9% in 2022 and 2.4% in 2023. 99% of German companies are SMEs - the core customer of Sirius
*The UK’s regional flexible workspace and industrial market is characterised by chronic supply constraints, offering potential for significant rental growth and consolidation due to high levels of market fragmentation.
*Industrial assets can be acquired at attractive yields and at capital values well below replacement cost
*Sirius seeks to buy assets with the potential to create value, predominantly through the asset management process by filling vacant space and converting space to higher value uses
Operating with a proven business model and solid track record
*Sirius has proven capability in transforming assets through its capex investment programmes, which deliver returns in excess of 40% and enhance income and capital values. The Company also has a strong track record for growing its income and has delivered like-for-like rent roll growth in excess of 5% for the last eight consecutive years (within its German platform)
*Unlike its competitors, Sirius has a fully integrated operating platform incorporating in-house marketing and sales functions that targets prospective tenants directly using online and offline techniques that lower risk and increase returns
*Dedicated service charge team delivers best-in-class cost recovery by utilising advanced measurement and cost allocation techniques
*The Company is led by a team of highly experienced individuals who have been tested over the full real estate investment cycle
Platform synergies help drive value creation
*Industrial and out of town office markets in the UK and Germany share similar characteristics
*BizSpace structure and internal operating platform complements Sirius’ existing German business, allowing for meaningful operational and financial synergies to drive value creation for Sirius shareholders
*Sirius will apply its proven asset management skills to this new market and has already increased BizSpace’s like-for-like annualised rent roll by 7.5% within the first 4.5 months of ownership.



Incorporated in 2002

Sirius Real Estate Limited is a company incorporated in Guernsey and resident in the United Kingdom for tax purposes<!--What is meant here by "resident"?-->, whose shares are publicly traded on the Main Market of the London Stock Exchange and the Main Board of the Johannesburg Stock Exchange.

The principal activity of the group is the investment in, and development of, commercial and industrial property to provide conventional and flexible workspace in Germany and the United Kingdom.