Sirius Real Estate Ltd Year End Results - 31 March 2020
Year End Results – 31 March 2020 2 Industrial Business Parks What We Do: Sirius Assets We provide flexible and conventional workspace to companies across Germany
Year End Results – 31 March 2020 3 Highlights €110.8m » Total profit before tax of € 110.8 million (2019: € 144.7m) Total PBT » Like for like annualised rent roll increase of 6.1% to € 81.2 million (2019: € 76.5 million » Funds from operations increased by 15.1% to € 55.7 million (2019: € 48.4 million) 15.1% 9.9% & » Dividend for the year increased 6.3% to 3.57c per share (2019: 3.36c) * LFL portfolio FFO growth value increase » Like-for-like portfolio book value increase of 9.9% or € 96.3 million (2019: 13.3%) to € 1,069.2 million €190.0m » Total portfolio book value € 1,186.2 million Net proceeds generated through Titanium, financing and asset recycling » € 178.1 million of mature assets sold at EPRA NIY of 5.7%*** (€ 168.0 million to Titanium Venture with AXA IM – Real Assets** and € 10.1 million completed on 1 April 20) » € 120.0 million of acquisitions completed in period at EPRA NIY of 5.7% & 26% vacancy €120.0m & €178.0m ** » New banking facilities including first unsecured debt facility of € 50.0 million completed; Assets sold or average cost of debt reduced to 1.49% Assets acquired notarised for sale * Based on 67% pay out for the first half and 65% for the second half (FY 2019: 3.36c based on 70% of FFO pay out) ** Sirius still holds 35% of the €168m portfolio sold to Titanium as investments in associates *** Including estimated 8% acquisition costs on top of purchase price paid
Year End Results – 31 March 2020 4 Financials – Income Statement Mar 20 Mar 19 Movement €m €m €m Rental income* 88.8 83.6 5.2 Titanium income 2.4 - 2.4 Service charge irrecoverable costs (4.8) (5.3) 0.5 Non-recoverable maintenance (2.6) (2.3) (0.3) Net Operating Income 83.8 76.0 7.8 Corporate costs and overheads (18.8) (19.4) 0.6 Adjusted EBITDA 65.1 56.6 8.5 IFRS 16 adjustment (1.2) - (1.2) Bank interest (7.2) (7.7) 0.5 Current tax (excluding tax on disposals) (1.0) (0.5) (0.5) FFO 55.7 48.4 7.3 Depreciation & amortisation of financing fees (3.0) (2.8) (0.2) IFRS 16 adjustment 1.2 - 1.2 Add back current taxes (excluding tax on disposals) 1.0 0.5 0.5 Adjusted profit before tax 54.9 46.1 8.8 Adjusting items (11.0) ** (0.4) * (10.6) Surplus/Deficit on revaluation of investment properties 59.7 99.9 (40.2) Gain/(Loss) on disposal of investment properties 6.4 0.6 5.8 Change in fair value of derivative financial instruments (0.4) (1.5) 1.1 Share of profit in associate not included in FFO 1.2 1.2 Profit Before Tax 110.8 144.7 (33.9) * Includes rental and other income from operating and management agreements ** Adjusting items include restructuring costs, expected selling costs relating to assets held for sale and costs relating to share incentives
Year End Results – 31 March 2020 5 Earnings Per Share cps 12 10 8 (1.92) 6 (0.80) 9.55 (0.12) 0.19 (0.17) 8.25 4 5.41 5.43 5.24 2 3.57 0 Profit after tax NOI Overheads Interest & Adjustment Funds from Depreciation, Adjusted Earnings Adjusting items EPRA Earnings Dividend Per Current Tax relating to IFRS 16 Operations amortisation of after Tax Share (66% of finance fees and FFO) IFRS 16 reversal Note: All items in the chart above are calculated on the weighted average number of shares in issue during the period
Year End Results – 31 March 2020 6 Financials – Statement of Financial Position As at Mar 2020 As at Mar 2019 Movement €m €m €m Assets Investment properties (owned assets) 1,186.2 1,132.5 53.7 Investment properties (leased assets) 17.8 - 17.8 Investment in associate 49.5 - 49.5 Plant and equipment 4.4 3.4 1.0 Goodwill 3.7 3.7 - Trade and other receivables 19.4 14.0 5.4 Cash and cash equivalents 121.3 40.3 81.0 Total Assets 1,402.3 1,193.9 208.4 Liabilities Trade and other payables (56.8) (44.4) (12.4) Interest bearing bank loans (480.2) (380.1) (100.1) Lease liabilties (19.2) - (19.2) Current & Deferred tax liabilities (42.9) (42.2) (0.7) Derivative financial instruments (1.4) (1.2) (0.2) Total Liabilities (600.5) (467.9) (132.6) Net Assets 801.8 726.0 75.8 NAV per share 77.35c 71.01c +8.9% ADJUSTED NAV per share 81.54c 75.17c +8.5% EPRA NAV per share 80.62c 74.82c +7.8%
Year End Results – 31 March 2020 7 Titanium Combined Balance Sheet €228.5m Sirius Titanium Combined Total Investment €m €m €m Property Value 1,186.2 228.5 1,414.7 Investment property 45.3 0.9 46.2 Other assets 121.3 8.4 129.7 Cash Total assets 1,352.8 237.9 1,590.6 (480.2) (83.2) (563.4) Bank loans (77.3) (5.4) (82.7) Other liabilities Tax (43.0) (12.4) (55.3) 33.2% (600.5) (101.0) (701.4) Total liabilities Net LTV 752.3 136.9 889.2 Net assets 57 6 No of assets 85.3% 88.6% Occupancy 90.3 14.2 Rent Roll €m Gross Yield 7.6% 6.2% 5.98 6.01 Average rate €/ psqm €14.2m 5,031 491 No of tenants Annual Rent Roll
Year End Results – 31 March 2020 8 NAV Growth Mar 20 100 Adjusted NAV per share (c) 90 5.75 (3.38) (0.92) 5.20 80 (1.20) 70 81.54 80.62 75.17 60 50 Adjusted NAV per share Share awards, deferred Recurring profit after Surplus on revaluation Dividend & scrip Adjusted NAV per share EPRA EPRA Net Assets per * 31-Mar-20 tax and non-recurring tax of investment property 31-Mar-20 Adjustments share items 31-Mar-20 * EPRA adjustments include the effect of the grant of share awards, all other items based on number of share in issue at the end of the period
Year End Results – 31 March 2020 9 Disposals €178.1m Annualised Annualised Total Price per Disposal Disposal EPRA Net Site Date Sold Disposal NOI Proceeds €m sqm € Rental Occupancy Initial Yield * Total proceeds from €m Income €m six mature disposals Sale into Titanium: Bayreuth Aug-19 22.6 987 1.4 1.4 99% 5.6% Berlin Borsig Aug-19 49.5 626 3.3 3.2 89% 6.0% <10% Berlin T empelhof Aug-19 32.2 1,289 1.5 1.5 93% 4.2% Mainz Aug-19 36.1 1,294 2.6 2.5 89% 6.4% Vacancy (19k sqm) Nuremberg Aug-19 27.6 760 1.7 1.6 85% 5.5% Total 168.0 879 10.4 10.2 90% 5.6% Disposals: Stuttgart-Weilimdorf Apr-20 10.1 1,493 0.7 0.7 100% 6.3% Total 10.1 1,493 0.7 0.7 100% 6.3% 5.7% TOTAL 178.1 900 11.1 10.9 90% 5.7% EPRA Net Initial Yield * Acquisition costs estimated at 8% of purchase price
Year End Results – 31 March 2020 10 Acquisitions €120.0m Annualised Total Annualised Date Acquisition Acquisition EPRA Net Site Investment Cost per sqm Acquisition Acquired Rental Occupancy Initial Yield Total cost of seven €m NOI €m Income €m acquisitions * Completed - Sirius Portfolio: T eningen Jun-19 6.5 324 0.8 0.5 88% 8.3% Buxtehude May-19 8.7 305 0.0 -0.5 0% (5.5)% Bochum II Sep-19 6.7 1,580 0.4 0.4 100% 5.6% 26% Alzenau Sep-19 44.5 742 4.1 3.5 94% 7.8% Vacancy (50k sqm) * Hallbergmoos Dec-19 20.2 1,032 0.9 0.7 53% 3.3% Neuss II Jan-20 19.1 563 1.3 1.0 81% 5.4% Neuruppin Jan-20 14.3 641 1.3 1.2 100% 8.6% Total 120.0 636 8.9 6.8 73% 5.7% 56% Completed - JV Porfolio: Hilden Mar-20 58.9 1,504 3.2 2.7 72% 4.7% Potential increase in NOI * Total 58.9 1,504 3.2 2.7 72% 4.7% * Sirius acquisitions excluding Titanium
Year End Results – 31 March 2020 11 Titanium Seed Portfolio & Completed Acquisitions Berlin - Borsig Hilden * Berlin, Borsig Hilden * Berlin - Tempelhof Mainz Berlin, Tempelhof Mainz Bayreuth Nuremburg Nuremburg Bayreuth * Acquired 1 Mar 20
Year End Results – 31 March 2020 12 SRE Completed Acquisitions I Neuruppin Bochum II Bochum II Neuruppin Neuss II Neuss II Hallbergmoos Hallbergmoos
Year End Results – 31 March 2020 13 SRE Completed Acquisitions II Buxtehude Buxtehude Alzenau Alzenau Teningen Teningen
Year End Results – 31 March 2020 14 Organic Growth – Rental Income Analysis Site Mar 20 Mar 19 Change Rent Roll €90.3m €87.8m 2.8% Rent Roll (Disposals) (€11.3m)* €(3.0)m - - Rent Roll (Acquisitions) €8.9m €5.8m - - Rent Roll (LFL) €81.2m €76.5m 6.1% Occupancy (LFL) 87.1% 85.2% 1.9% Occupancy 85.3% 86.1% (0.8)% Rate psm (LFL) €6.07 €5.83 4.1% Rate psm €5.98 €5.78 3.5% New Lettings 162,607sqm 170,866sqm (4.8)% New Letting Rate psm €6.55 €6.79 (3.5)% Move-Outs Rate psm €5.85 €6.88 (15.0)% Move-Outs 154,258sqm 143,048sqm 7.8% * Sale of Assets to Titanium
Year End Results – 31 March 2020 15 Organic Growth – Rental Movement Analysis €m 105 100 8.9 (11.3) 95 1.7 90 9.4 85 (10.8) 80 4.4 75 90.3 87.8 70 65 60 31-Mar-19 Move Outs Capex Move-Ins Other Move-Ins Uplifts on Existing Acquisitions Sale of Assets to 31-Mar-20 Tenants Titanium
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