LONDON (ShareCast) - (Sharecast News) - Sirius Real Estate said on Wednesday that it continues to trade in line with expectations.
In a statement at the company's annual general meeting, chairman Daniel Kitchen said: "Following another positive set of annual results for the year ended 31 March 2022, leading to a 20% total accounting return including a 16.1% increase in dividend for shareholders, the new financial year has begun as planned despite the ongoing economic uncertainty and inflationary environment prevalent in both our markets and across Europe, and we continue to trade in line with expectations.

"Whilst the company will not be alone in feeling the impact of inflation on its cost base this year, a combination of forward purchase agreements, volume-based discounts, and the use of selected suppliers continue to act as effective mitigants and provide us with a competitive advantage."

Kitchen said that having slightly increased leverage to 41.6% at 31 March 2022 following the acquisition of BizSpace, Sirius remains committed to targeting a net loan-to-value of below 40%, and will see leverage reduce "through a combination of income-led capital growth, transformative capital investment and selective asset recycling".

In addition, he said the company expects to complete the previously-announced sale of the Camberwell property in London in July, and that it is currently working on some further asset recycling opportunities in the UK and Germany.

"The company remains focused on the execution of its strategy based on intensive asset management and increasing net operating income which is expected to underpin its recently presented earnings ambitions," he said.

"With a wide range of workspaces, flexible contracts and low average rents, the company is defensively positioned with an attractive proposition for its tenants and is well placed to meet the continued changes in occupier space requirements and to capture reversionary potential."

Sirius owns and operates branded business and industrial parks providing conventional space and flexible workspace in Germany and the UK.

At 1230 BST, the shares were up 3.1% at 90.00p.

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