Summary[1]
Sirius Real Estate Limited, a real estate company, engages in the investment, development, and operation of commercial properties in Germany. It owns and manages offices; warehouses, storerooms, and self-storage spaces; and production and workshop spaces. The company serves individuals and small to medium-sized enterprises under the Sirius brand name. It owns and manages business parks with approximately 4.3 million square feet of lettable space in the United Kingdom; and 1.8 million square meters of lettable space in Germany. The company was formerly known as Dawnay, Day Sirius Limited and changed its name to Sirius Real Estate Limited in October 2008. Sirius Real Estate Limited was incorporated in 2007 and is based in Saint Peter Port, Guernsey.
Operations
Offering(s)
Sirius specialises in the ownership, development and operations of business parks throughout Germany and the UK. What makes Sirius different is its operating platform and asset management programme. Combining the Sirius property portfolio with its unique operating platform gives it a range of advantages in the market which enable the delivery of strong and consistent returns for shareholders.[2]
Mission
The mission of the company 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.
Financials
| 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Fiscal Year Ends | 31/03/2013 | 31/03/2014 | 31/03/2015 | 31/03/2016 | 31/03/2017 | 31/03/2018 | 31/03/2019 | 31/03/2020 | 31/03/2021 | 31/03/2022 |
| Turnover | 46.12 | 45.07 | 45.39 | 55.79 | 68.79 | 123.65 | 140.06 | 150.01 | 165.36 | 210.18 |
| Expenses | 22.32 | 21.54 | 23.64 | 23.06 | 29.74 | 83.25 | 85.02 | 85.95 | 98.67 | 121.30 |
| EBITDA | -13.44 | 44.18 | 46.25 | 68.93 | 85.63 | 98.63 | 155.10 | 125.22 | 175.61 | 187.50 |
| EBIT | -14.47 | 43.19 | 45.36 | 68.30 | 84.76 | 97.54 | 153.73 | 123.12 | 173.53 | 184.33 |
| Operating Profit (reported) | 23.80 | 23.52 | 21.76 | 32.73 | 39.05 | 40.40 | 55.04 | 64.06 | 66.69 | 88.88 |
| Operating Profit (adjusted) | - | - | - | - | - | - | - | - | - | - |
| Investment Income | -36.98 | 21.05 | 26.70 | 44.17 | 49.86 | 60.95 | 100.50 | 58.00 | 104.62 | 147.20 |
| Exceptional Items | -1.19 | -1.36 | -3.05 | -8.54 | -4.04 | -3.68 | -1.70 | 0.03 | -0.50 | -13.84 |
| Net Interest | -15.10 | -12.18 | -12.75 | -11.29 | -8.44 | -8.03 | -9.12 | -11.33 | -7.16 | -12.41 |
| Pre-tax Profit | -29.47 | 31.03 | 32.65 | 57.08 | 76.44 | 89.65 | 144.71 | 110.77 | 163.66 | 168.93 |
| Tax | 0.78 | 2.10 | 5.65 | 2.39 | 9.50 | 8.29 | 15.99 | 12.62 | 16.10 | 20.94 |
| Net Profit | -30.25 | 28.93 | 27.00 | 54.69 | 66.94 | 81.36 | 128.72 | 98.15 | 147.56 | 147.99 |
| Minority Interests | -0.03 | 0.01 | 0.02 | 0.02 | 0.03 | 0.09 | 0.07 | 0.01 | 0.11 | 0.12 |
| Profit For Financial Year | -30.23 | 28.93 | 26.99 | 54.67 | 66.91 | 81.27 | 128.66 | 98.14 | 147.45 | 147.87 |
| Ordinary Dividends | - | - | - | - | - | - | - | - | - | - |
| Non Equity Dividends | - | - | - | - | - | - | - | - | - | - |
| Retained Profit | -30.23 | 28.93 | 26.99 | 54.67 | 66.91 | 81.27 | 128.66 | 98.14 | 147.45 | 147.87 |
| Per Share Data | ||||||||||
| DPS | 0.00 | 0.00 | 0.01 | 0.02 | 0.03 | 0.03 | 0.03 | 0.03 | 0.04 | 0.04 |
| Normalized EPS | -0.09 | 0.07 | 0.05 | 0.08 | 0.08 | 0.09 | 0.13 | 0.09 | 0.14 | 0.14 |
| Reported EPS | -0.10 | 0.07 | 0.05 | 0.07 | 0.08 | 0.09 | 0.13 | 0.09 | 0.14 | 0.13 |
| Investment Ratios | ||||||||||
| Operating Margin | 0.52 | 0.52 | 0.48 | 0.59 | 0.57 | 0.33 | 0.39 | 0.43 | 0.40 | 0.42 |
| DPS Growth % | - | - | - | 0.65 | 0.53 | 0.15 | 0.03 | 0.08 | 0.06 | 0.11 |
| Dividend Cover x | 0.00 | 0.00 | 21.32 | 3.86 | 3.26 | 56.50 | 3.22 | 3.82 | 2.26 | 3.93 |
| Norm EPS Growth % | - | - | -0.30 | 0.59 | 0.02 | 0.08 | 0.43 | -0.27 | 0.48 | -0.01 |
| Reported EPS Growth % | - | - | -0.33 | 0.51 | 0.11 | 0.10 | 0.47 | -0.26 | 0.48 | -0.05 |
| Other | ||||||||||
| Market Cap at B/S Date | 61.13 | 169.09 | 262.65 | 332.75 | 456.45 | 610.66 | 648.04 | 682.89 | 931.63 | 1,463.27 |
| 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Fiscal Year Ends | 31/03/2013 | 31/03/2014 | 31/03/2015 | 31/03/2016 | 31/03/2017 | 31/03/2018 | 31/03/2019 | 31/03/2020 | 31/03/2021 | 31/03/2022 |
| Assets | ||||||||||
| Non Current Assets | ||||||||||
| Intangible | 3.74 | 3.74 | 3.74 | 3.74 | 3.74 | 3.74 | 3.74 | 5.72 | 6.57 | 4.28 |
| Tangible | 2.54 | 1.83 | 1.68 | 1.94 | 2.56 | 3.13 | 3.44 | 4.81 | 4.60 | 20.49 |
| Investments | - | - | - | - | - | - | 0.00 | 12.31 | 17.20 | 24.14 |
| Other | - | - | - | - | - | - | 974.68 | 1,232.93 | 1,407.15 | 2,148.33 |
| Total | 416.77 | 446.66 | 551.04 | 693.32 | 733.84 | 923.27 | 981.86 | 1,255.77 | 1,435.52 | 2,197.25 |
| Current Assets | ||||||||||
| Stock | - | - | - | - | - | - | - | - | - | - |
| Debtors | 9.44 | 11.38 | 9.12 | 6.68 | 7.31 | 7.67 | 9.43 | 13.90 | 17.66 | 19.93 |
| Cash and Securities | 7.72 | 7.01 | 10.06 | 9.02 | 48.70 | 64.41 | 15.95 | 96.58 | 49.31 | 127.29 |
| Total | 26.65 | 27.37 | 29.66 | 31.83 | 62.99 | 122.92 | 47.42 | 136.40 | 84.48 | 175.87 |
| Held for Disposal | 27.66 | 2.63 | - | 0.00 | 96.00 | 17.33 | 164.64 | 10.10 | 0.00 | 13.75 |
| Total Assets | 471.08 | 476.67 | 580.70 | 725.15 | 892.82 | 1,063.51 | 1,193.91 | 1,402.27 | 1,520.00 | 2,386.86 |
| Liabilities and Equity | ||||||||||
| Liabilities | ||||||||||
| Current | 286.17 | 23.92 | 30.15 | 36.07 | 41.50 | 51.87 | 112.13 | 95.56 | 67.98 | 120.48 |
| Non-Current | 33.88 | 226.44 | 262.28 | 301.97 | 356.05 | 386.01 | 355.74 | 504.90 | 525.20 | 1,075.33 |
| Total | 320.05 | 250.36 | 292.44 | 338.04 | 397.55 | 437.88 | 467.87 | 600.46 | 593.17 | 1,195.81 |
| Equity | ||||||||||
| Share Capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Reserves | 151.01 | 226.28 | 288.22 | 387.05 | 495.19 | 625.46 | 725.81 | 803.09 | 929.44 | 1,196.93 |
| Shareholders Funds | 151.01 | 226.28 | 288.22 | 387.05 | 495.19 | 625.46 | 725.81 | 801.57 | 926.53 | 1,190.65 |
| Minorities | 0.02 | 0.02 | 0.04 | 0.02 | 0.03 | 0.17 | 0.24 | 0.25 | 0.29 | 0.41 |
| Total | 151.03 | 226.30 | 288.26 | 387.11 | 495.27 | 625.63 | 726.05 | 801.82 | 926.83 | 1,191.06 |
| Total Liabilities and Equity | 471.08 | 476.67 | 580.70 | 725.15 | 892.82 | 1,063.51 | 1,193.91 | 1,402.27 | 1,520.00 | 2,386.86 |
| Net Borrowings | 281.67 | 217.87 | 244.72 | 284.97 | 293.10 | 302.66 | 315.51 | 402.80 | 433.74 | 892.87 |
| Investment Ratios | ||||||||||
| Net Tangible Asset Value Per Share | 46.75 | 26.48 | 27.41 | 37.67 | 43.62 | 49.46 | 56.84 | 67.15 | 68.26 | 71.02 |
| ROCE | -7.83 | 9.54 | 8.24 | 9.91 | 9.96 | 9.64 | 14.21 | 9.42 | 11.95 | 8.13 |
| ROE | -18.20 | 15.33 | 10.49 | 16.19 | 15.17 | 14.51 | 19.04 | 12.85 | 17.07 | 13.97 |
| Gross Gearing | 191.63 | 99.38 | 88.40 | 75.96 | 69.02 | 58.69 | 45.67 | 62.30 | 52.13 | 85.68 |
| Cash | 5.11 | 3.10 | 3.49 | 2.33 | 9.83 | 10.30 | 2.20 | 12.05 | 5.32 | 10.69 |
| Interest Cover x | -0.97 | 3.55 | 3.57 | 6.09 | 10.18 | 12.36 | 17.05 | 9.96 | 17.58 | 11.97 |
| Quick Ratio r | 0.06 | 0.77 | 0.64 | 0.44 | 1.35 | 1.39 | 0.23 | 1.16 | 0.99 | 1.22 |
| Current Ratio r | 0.19 | 1.25 | 0.98 | 0.88 | 3.83 | 2.70 | 1.89 | 1.53 | 1.24 | 1.57 |
| Borrowings | ||||||||||
| Total Borrowings | 289.39 | 224.88 | 254.78 | 293.99 | 341.79 | 367.08 | 331.46 | 499.38 | 483.04 | 1,020.15 |
| Due < 1 Yr | 258.15 | 2.81 | 3.30 | 5.64 | 7.07 | 7.84 | 7.41 | 37.59 | 14.97 | 20.72 |
| Due 1-2 Yrs | - | - | - | - | - | - | - | 10.72 | 75.98 | - |
| Due 2-5 Yrs | - | - | - | - | - | - | - | 8.44 | 3.38 | 8.16 |
| Due > 5 Yrs | 31.24 | 222.07 | 251.48 | 288.35 | 334.72 | 359.23 | 324.05 | 442.63 | 388.72 | 991.28 |
| 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Fiscal Year Ends | 31/03/2013 | 31/03/2014 | 31/03/2015 | 31/03/2016 | 31/03/2017 | 31/03/2018 | 31/03/2019 | 31/03/2020 | 31/03/2021 | 31/03/2022 |
| Operating Cash Flow | 22.96 | 18.72 | 29.97 | 37.68 | 49.95 | 43.83 | 54.91 | 72.80 | 71.63 | 85.42 |
| Taxation | -0.59 | -0.19 | -0.55 | 0.17 | -0.02 | -0.76 | -1.81 | -1.46 | -0.63 | -3.67 |
| Investing Activities | 16.81 | 10.22 | -75.70 | -100.03 | -93.65 | -74.07 | -67.81 | -122.24 | -73.53 | -429.51 |
| Net Outflow/Inflow | 39.18 | 28.75 | -46.29 | -62.18 | -43.72 | -31.00 | -14.71 | -50.90 | -2.54 | -347.76 |
| Financing | -31.61 | -31.72 | 52.68 | 61.92 | 72.54 | 61.91 | -24.62 | 131.88 | -53.05 | 431.75 |
| Net Change in Cash | 7.57 | -2.97 | 6.39 | -0.26 | 28.82 | 30.91 | -39.32 | 80.98 | -55.59 | 83.99 |
| Foreign Exchange Adjustments | - | - | - | - | - | - | - | - | 0.00 | 1.30 |
| Opening Balance | 9.15 | 16.72 | 13.75 | 20.14 | 19.87 | 48.70 | 79.61 | 40.28 | 121.26 | 65.67 |
| Closing Balance | 16.72 | 13.75 | 20.14 | 19.87 | 48.70 | 79.61 | 40.28 | 121.26 | 65.67 | 150.97 |
| Investment Ratios | ||||||||||
| Cash Flow Per Share | 0.07 | 0.04 | 0.05 | 0.05 | 0.06 | 0.05 | 0.05 | 0.07 | 0.07 | 0.07 |
| CAPEX PS | 0.00 | 0.00 | 0.00 | -0.02 | -0.02 | -0.02 | -0.03 | -0.03 | -0.03 | -0.03 |
Risks
The key risks that could affect the Group's medium-term performance can be found in the table below.[3]
| Risk area | Principal risk(s) |
|---|---|
| 1. Financing | • Availability and pricing of debt |
| • Compliance with loan facility covenants | |
| • Availability and pricing of equity capital | |
| • Reputational risk | |
| 2. Valuation | • Property inherently difficult to value |
| • Susceptibility of property market to change in value | |
| 3. Markets | • Participation within two geographically diverse markets |
| • Reliance on specific industries and the SME market | |
| • Reduction in occupancy | |
| 4. Acquisitive growth | • Decrease in number of acquisition opportunities coming to market |
| • Failure to acquire suitable properties with desired returns | |
| 5. Organic growth | • Failure to deliver capex investment programmes |
| • Failure to refuel capex investment programmes | |
| • Failure to achieve targeted returns from investments | |
| 6. Customer | • Decline in demand for space |
| • Significant tenant move-outs or insolvencies | |
| • Exposure to tenants' inability to meet rental and other lease commitments | |
| • Tenant affordability | |
| 7. Regulatory and tax | • Non-compliance with tax or regulatory obligations |
| 8. People | • Inability to recruit and retain people with the appropriate skillset to deliver the Group strategy |
| 9. Systems and data | • System failures and loss of data |
| • Security breaches | |
| • Data protection | |
| 10. Macro-economic | • Impact of the Covid-19 pandemic |
| • Inflationary pressure leading to increased costs | |
| • Interest rate movements impacting the commercial real estate market | |
| • Delays in cash collection and tenant insolvencies | |
| • Energy supply shortages caused by a variety of economic and geopolitical factors | |
| 11. ESG | • Unforeseen costs relating to physical and transition risks associated with climate change |
| • Reputational risk | |
| • Failure to meet shareholder and societal requirements or expectations | |
| • Restricted access to financing market due to higher requirements ("green financing") | |
| 12. Foreign currency | • Financial impact of uncontrollable foreign currency fluctuation on earnings and net asset value |
References and notes