Sirius collects 97% of rentals in last six months

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CAPE TOWN – Sirius Real Estate, which operates branded business parks and flexible workspace in Germany, said it collected 97.2 percent of rentals for April to September 2020 and trading was in line with expectations.

Inquiries for space were up a “significantly” by 17.4percent on the same period last year.

The group, which has a secondary listing on the JSE, said in a trading update yesterday that the sales conversion rate came to 13.4percent for the six months to September 30.

The annualised rent roll fell slightly to 89.2 million (about R1.74 billion) compared with 90.3m in the period to March 31, with the decline primarily due to the disposal of the Weilimdorf asset. The rent roll was up from the 78.5m at the same time last year.

Like-for-like occupancy fell slightly due to 83.9percent, compared with 85.2percent as at March 31, due mainly to known move-outs.

Conferencing revenues were up strongly by more than 50percent year-on-year since reopening after the easing of Covid-19 restrictions.

The acquisition of a business park located in Norderstedt was notarised for 9.1m.

Total cash balances came to about 128m and net loan to value was currently about 33 percent.

Lettings remained robust as sales conversion ratios return to near targeted levels.

The company’s inquiry to sales conversion ratio fell to just under 10 percent in April due to the pandemic, compared to an internal target of 15 percent, but there had been a progressive improvement since June, Sirius directors said. Inquiries were from new commercial tenants as well as from new self-storage customers.

From April to September 2020 there had been a modest increase in the number of new lettings, while the volume of square metres let reduced about 11percent compared to the same time last year.

From April to June the reduction in square metres let was around 19percent, but this improved to a reduction of 5percent from July to September, largely due to an improvement in overall sales conversion.

Sirius’ share price rose 1.8 percent to R17.12 on the JSE around midday yesterday, up from R13.40 a year ago. The share closed at R17.22. Net asset value per share as at March 31 was 77.35 euro cents from 71.01 euro cents in 2019.

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