Sustainable
growth
Sirius Real Estate Limited
Annual Report and Accounts 2024
Continued sustainable
FFO growth
Sirius Real Estate Limited is a leading owner and operator of branded business parks providing flexible workspace in Germany and the UK.
Contents
Strategic report | Governance | Financial statements | |||
1 | Our purpose | 74 | Chair's introduction to governance | 130 | |
2 | Financial highlights | 76 | Board of Directors | 139 | |
3 | Operational highlights | 78 | Senior Management Team | 139 | |
4 | 79 | ||||
10 | 88 | 140 | |||
13 | 94 | ||||
141 | |||||
14 | 97 | ||||
16 | 142 | ||||
99 | |||||
18 | Our markets | ||||
22 | Asset management strategy | 124 | 143 | ||
24 | Our portfolio | 189 | |||
26 | Key performance indicators | ||||
196 | |||||
28 | |||||
202 | |||||
- Group highlights | |||||
29 | Asset management review - Germany | 204 |
- Asset management review - UK
- GHG emissions report
- TCFD
- Disclosures
For more information, please visit
www.sirius-real-estate.com
OUR PURPOSE
Empowering business, unlocking potential
Our purpose is to create and manage optimal workspaces that empower small and medium-sized businesses to grow, evolve and thrive. We seek to unlock the potential of our people, our properties and the communities in which we operate so that, together, we can create sustainable impact and long-term financial and social value.
Strategic report
Governance
Financial statements
1 | |||||
Sirius Real Estate Limited Annual Report and Accounts 2024 |
FINANCIAL HIGHLIGHTS
Continued growth
in challenging conditions
Operating platform drives higher performance.
€288.8m | €110.2m | €115.2m | ||||||||||||||||
6.9% | 7.9% | 32.4% | ||||||||||||||||
Total revenue | Funds from operations(1) | Profit | before tax | |||||||||||||||
2024 | 288.8 | 2024 | 110.2 | 2024 | 115.2 | |||||||||||||
2023 | 270.1 | 2023 | 102.1 | 2023 | 87.0 | |||||||||||||
€2,186.7m | 6.05c | 111.12c | ||||||||||||||||
3.8% | 6.5% | 1.8% | ||||||||||||||||
Portfolio book value(2) - | Dividend per share | Adjusted NAV per share | ||||||||||||||||
owned investment properties | ||||||||||||||||||
2024 | 2,186.7 | 2024 | 6.05 | 2024 | 111.12 | |||||||||||||
2023 | 2,107.3 | 2023 | 5.68 | 2023 | 109.21 | |||||||||||||
109.82c 34.6%
1.6% | 6.9% | |||
EPRA(1) NTA per share | EPRA(1) loan to value |
Throughout this Annual Report and Accounts, certain industry terms and alternative performance measures are used; see the Glossary, Business analysis and Annex 1 - non-IFRS measures within this Annual Report and Accounts for full explanations and reconciliations of alternative performance measures to IFRS numbers.
2024 | 109.82 | 2024 | 34.6 | ||
2023 | 108.11 | 2023 | 41.5 | ||
2 Sirius Real Estate Limited Annual Report and Accounts 2024
OPERATIONAL HIGHLIGHTS
Building on organic growth
Organic rental growth across both German and UK platforms and strong balance sheet.
€194.7m | €188.7m | €8.82 | ||||||||||||||||||
8.2% | 7.2% | 7.8% | ||||||||||||||||||
Total annualised rent roll(3) | Like-for-like annualised rent roll(3) | Average rate (€) per sqm(3) | ||||||||||||||||||
2024 | 194.7 | 2024 | 188.7 | 2024 | 8.82 | |||||||||||||||
2023 | 179.9 | 2023 | 176.0 | 2023 | 8.18 | |||||||||||||||
€8.68 | 85.5% | €214.5m | ||||||||||||||||||
5.2% | 1.6 | 116.2% | ||||||||||||||||||
Average rate (€) per sqm | Like-for-like occupancy | Cash in bank | ||||||||||||||||||
like for like(3) | ||||||||||||||||||||
2024 | 8.68 | 2024 | 85.5 | 2024 | 214.5 | |||||||||||||||
2023 | 8.25 | 2023 | 83.9 | 2023 | 99.2 | |||||||||||||||
Strategic report
Governance
Financial statements
98.2%
0.4%
Cash collection
2024
2023
Throughout this Annual Report and Accounts, certain industry terms and alternative performance measures are used; see the Glossary, Business analysis and Annex 1 - non-IFRS measures within this Annual Report and Accounts for full explanations and reconciliations of alternative performance measures to IFRS numbers.
- Refer to glossary of terms in the Annual Report and Accounts 2024.
- Including assets held for sale.
- The Company has chosen to disclose certain Group rental income figures utilising
98.2 a constant foreign currency exchange rate of GBP:EUR 1.1695, being the closing exchange rate as at 31 March 2024.
98.6
Sirius Real Estate Limited Annual Report and Accounts 2024 | 3 |
AT A GLANCE
Empowering business, unlocking potential
We are an owner and operator of branded business parks, industrial complexes and out of town offices in Germany and the UK.
Sirius applies a high-return,value-add business model to investments in industrial, warehouse and out of town office properties in Germany and the UK. The Company derives value through the execution of a stringent acquisitions process followed by selective capital investment and the roll-out of an intensive asset management plan which focuses on transforming vacant and sub-optimal space into high-quality conventional and flexible workspace. When assets have been fully transformed, they are either held for their stable income or sold, with the proceeds recycled into opportunistic assets with value-add potential.
The Group has a well-diversified income and tenant profile from large multinational corporations working within a broad range of industries to smaller SMEs and individual tenants. Most sites have a combination of anchor tenants which provide secure long-term income, SME tenants on a combination of conventional and flexible lease terms and Smartspace-serviced tenants which comprise a wide variety of companies and individuals using self-storage, serviced office and workbox products. While the stability of anchor tenants is important for income security, our high-yielding Smartspace products, which are generally created by transforming previously sub-optimal space, acquired for very low cost, provide a substantial boost to income returns.
2.2
million sqm
9,654
tenants
142
total number of properties owned
For more information, please visit
www.sirius-real-estate.com
4 Sirius Real Estate Limited Annual Report and Accounts 2024
Our workspace
Production, warehouses and workshops
Large production areas form the base of many of Sirius' business parks. These spaces are complemented by smaller workshop areas, which give tenants flexibility throughout the development of their businesses and as their requirements evolve. Beyond this, Sirius' modern business parks often have large warehouse spaces which can be used for a wide range of purposes such as large-scale production.
Storage
For businesses and private households, our sites across Germany and the UK offer a wide range of storage space options including warehouses, storerooms and self-storage products.
Offices
Across Sirius' portfolio, our office space comprises office areas and buildings on industrial business parks, office buildings attached to warehouses and standalone office buildings in more traditional office areas. Within these, we offer a wide range of conventional and flexible office solutions on either long or short-term leases, offering flexibility for our range of tenants. Some business centres offer service packages such as furniture, IT and conferencing as well as co-working areas and virtual offices.
Strategic report
Governance
Financial statements
Sirius Real Estate Limited Annual Report and Accounts 2024 | 5 |
AT A GLANCE CONTINUED
Focus on Germany
As at 31 March 2024, the Group owned 68 business parks in Germany, comprising 1.8m sqm of lettable space generating €129.7m of annualised rent roll.
All our sites here operate under the Sirius brand. In addition, the Group managed one property and held a 35% interest in seven additional properties, through its Titanium venture with AXA IM Alts. The value of owned property in Germany as at 31 March 2024 was €1.7 billion.
1.8 | 5,915 | 68 |
million sqm | tenants | total number of properties owned |
Our sites in Germany
Traditional business parks
Our traditional business parks typically feature multiple mixed-use buildings and over 30,000 sqm of workspace. The majority of these sites were originally constructed by owner occupiers generally for manufacturing and industrial usage but have since undergone significant investment by Sirius to be reconfigured for multi-tenant use and to meet the needs of modern businesses. Today, these sites offer a range of different workspace options, ranging from conventional large-scale office, storage and industrial spaces,
to smaller-sized and flexible self-storage, office and conference room options. As such, traditional business parks are frequently home to large blue-chip tenants, alongside a significant number of SME and individual tenants.
- Multi-tenanted
- Large multinational companies
- Long-termleases
- Production, storage and office space
- 54% of annualised rent roll
Modern business parks
Our modern business parks often comprise expansive sites of over 20,000 sqm, featuring a blend of warehouses and office buildings.
These parks are known for their superior quality and are easier to manage than traditional business parks due to a higher proportion of office space. Tenants are typically SMEs and individual tenants.
- Multi-tenanted
- SMEs and individual tenants
- Long and short-term leases
- Warehouse, storage and office space
- 28% of annualised rent roll
Office buildings
Our office buildings are typically well located on the periphery of major economic centres and offer both conventional and flexible office space to SMEs and larger corporates seeking a cost-effective alternative to city centre locations. Our office buildings provide high-quality space that can be quickly adapted to meet the changing needs and working practices of our tenants.
- Single and multi-tenanted
- SMEs
- Long and short-term leases
- Office space
- 18% of annualised rent roll
6 Sirius Real Estate Limited Annual Report and Accounts 2024
Our locations
Frankfurt
Berlin
Stuttgart
Cologne
Munich
Düsseldorf
Hamburg
Other
13% | Rent roll by city |
21%
4%
8%
19%
16%
8%
11%
Total tenant split by rent roll
38%
55%
7%
Top 50 anchor tenants
Smartspace SME tenants
Other SME tenants
Strategic report
Governance
Financial statements
Some of our tenants
Sirius Real Estate Limited Annual Report and Accounts 2024 | 7 |
AT A GLANCE CONTINUED
Focus on the UK
As at 31 March 2024, the Group operates 74 sites throughout the UK, comprising 4.3m sq ft (0.4m sqm) of lettable space, generating £55.6m (€65.0m) of annualised rent roll.
All our UK sites operate under the BizSpace brand and were acquired in November 2021. BizSpace offers light industrial, workshop, studio, storage and office units to a wide range of businesses offering a blend of flexible agreements and longer-term leases.
The value of owned property in the UK at 31 March 2024 was €0.5 billion.
0.4 | 3,739 | 74 |
million sqm | tenants | total number of properties owned |
Our sites in the UK
Industrial
BizSpace provides a range of workshops and small industrial units for businesses needing space for light industrial work like manufacturing, repairing and packing, or warehouse space to store stock. Our industrial spaces range from private, self-contained workshops to managed workshop units where tenants have access to shared amenities. All units are unfurnished and sold on
a sq ft basis.
Office buildings
BizSpace caters to the office needs of small and growing SMEs, ranging from small units of 80-120 sq ft which are ideal for two to three people, to larger units of over 800-9,000 sq ft for companies with 20-200 people. The majority of our office units are sold unfurnished and on a square foot basis, but a number of our sites also contain fully furnished serviced offices where tenants are charged an all-inclusive monthly bill which includes Wi-Fi, utilities, cleaning and reception staff. We also have a number of co-working spaces where entrepreneurs, start-ups and self-employed individuals work alongside one another in a single shared space.
Mixed use
BizSpace's mixed sites have a combination of workshop space and office space on site. These sites are typically converted mills or factories which have been modernised and repositioned to provide flexible workspace accommodation. All units are rented unfurnished on a sq ft basis with the tenant having the flexibility to choose between a lease or
a licence.
8 Sirius Real Estate Limited Annual Report and Accounts 2024
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Sirius Real Estate Limited published this content on 06 June 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 June 2024 14:11:06 UTC.